funds or CARES Act money, and that they could have come from other funding sources Dr. Lyons had mentioned.
Dr. Lyons stated that Mr. DeCourcy was correct. He further clarified that soon after the Foundation used the CARES money for gifts, the Foundation and University realized the error. The CARES money was returned and other funding was used to provide graduation gifts.
Regent Fletcher asked Dr. Lyons if the Foundation had ever received requests that they believed were questionable and if so, how those requests were handled.
Dr. Tidwell asked if the discussion of the University's Endowment was going to be a separate discussion, or if the University's Endowment was only being discussed within the context of how it relates to the KSU Foundation.
Chair Hatchett noted that the MOU contains a provision stating that the Foundation has the right to assess administrative fees to support its operation, but that such fees are not to exceed 35% annually. He then asked Dr. Lyons to discuss the Foundation's administrative fees and how this MOU provision is applied.
Chair Hatchett asked whether administrative fees applied to everything handled by the Foundation, including for the handling of CARES Act funds. Chair Hatchett further inquired whether the Foundation had sought legal counsel before taking a fee to handle CARES Act funds.
Dr. Tidwell asked Mr. DeCourcy to provide an overview of the KSU Endowment, unrelated to the Foundation.
Dr. Tidwell asked if policies and procedures will be instituted as part of CPE's Management Improvement Plan to address how Endowment funds are to be accessed for offering scholarships.
Dr. Tidwell asked if he was correct in understanding that in the past there had not been any policies as to how to access Endowment funds for scholarship purposes. Mr. DeCourcy replied that the Endowment had an investment policy and spending policy, but those were the only documents he was aware of.
Regent Moyer asked what the ARGI fee was on an annual basis. Mr. DeCourcy stated that he would get this information for the Board.
This agenda item was presented by Interim President Johnson, Ms. Russelle Keese, Executive Director of Financial Aid, Ms. Danyel Tolbert, Bursar, and Interim General Counsel Shuo Han.
President Johnson began by stating that none of the individuals present today had been involved in the events described in the previous discussion of CARES Act funds.
Regent Dukes asked Ms. Keese to clarify that CARES Act funds were distributed to students who were Pell-eligible as opposed to some other requirement.
Chair Hatchett inquired as to the amounts of money that were distributed among students.
Chair Hatchett asked Ms. Keese if she knew whether counsel had been received from the U.S. Department of Education regarding the ways in which the University was calculating which students were entitled to receive money and the amounts they were entitled to receive.