Minutes 02/16/2007

A special board meeting of the Maricopa County Community College District Governing Board was scheduled to be held at 2:00 p.m. at the District Support Services Center, 2411 West 14th Street, Tempe, Arizona, pursuant to A.R.S. §38-431.02, notice having been duly given.

PRESENT

GOVERNING BOARD
Linda Rosenthal, President
Don Campbell, Secretary
Colleen Clark, Member
Scott Crowley, Member
Jerry Walker, Member (late)

ADMINISTRATION
Rufus Glasper
Maria Harper-Marinick
Debra Thompson
Earl Monsour for Darrel Huish
Steve Helfgot
Albert Crusoe
Anna Solley
Pete Kushibab
Mary Kay Kickels
Patricia Cardenas-Adame
Linda Lujan for Ken Atwater
Carl Couch for Art DeCabooter
Ernie Lara
Gene Giovannini
Linda Thor
Jean Ann Abel for Velvie Green
Maria Hesse

CALL TO ORDER
The regular meeting was called to order at 2:01 p.m. by Psresident Linda Rosenthal.

PLEDGE OF ALLEGIANCE
The assembly pledged their allegiance to the United States of America led by Governing Board Member Colleen Clark.

APPROVAL OF THE AGENDA
President Rosenthal requested a motion to approve the agenda.

MOTION NO. 9400
Scott Crowley moved that the Governing Board agenda be approved. Motion approved 4-0. (Mr. Walker - not present during vote (delayed on freeway).

FIRST READING

MCCCD GOVERNANCE POLICIES & ADMINISTRATIVE REGULATIONS – Adopt new and amend current policies that were recommended as part of the Community Member Blue Ribbon Panel’s review of administrative operations of the Maricopa Community Colleges. Further, it is recommended that the Governing Board directly adopt new and amend existing administrative regulations that were also examined by the Panel. The Panel’s proposed changes address the following areas of Maricopa Governance:

Maricopa Guiding Principles & Public Stewardship [Reaffirmation of existing language and proposed NEW policy]
Procurement of Goods & Services [Proposed amendments to existing administrative regulation, section 1.9.1]
Hiring of Relatives [Proposed amendments to existing policy]
Special Services Employments [Proposed amendments to existing policy]
Special Services Employments Form [Proposed NEW supplementary item]
Employment Standards (No Tolerance) [Proposed NEW policy]
Enrollment Irregularities [Proposed NEW administrative regulation]
Whistleblower Protection [Proposed amendments to existing policy]
Internal Control [Proposed NEW policy]
Internal Audit [Proposed amendments to existing regulation]
IAMAS Charter [Proposed amendments to existing regulation]
Audit Intake Form [Proposed NEW supplementary item]
Cash Handling [Proposed NEW administrative regulation]
Travel [Proposed amendments to existing regulation]
International Travel [Proposed NEW Policy]
Use of College Facilities [Proposed amendments to existing regulation]
Rental Rate Guidelines [Proposed amendments to existing regulation]
Maricopa Integrated Risk Assessment [Proposed NEW regulation]

President Rosenthal thanked everyone for attending this Special Board Meeting and asked Chancellor Glasper to comment on the proposed adoption and amendment of MCCCD Governance Policies and Administrative Regulations.

Dr. Glasper commented that it was his pleasure to introduce the Chair of the Community Member Blue Ribbon Panel, Linda Blessing, which was brought together in November, 2006, to review internal control and procedures. This action was taken after internal audits revealed policy infractions and information that a small number of district employees had not complied with district policies. The recommendations made by the Blue Ribbon Panel and the Chancellor would be submitted for Board approval in an effort to increase the ethics accountability of District employees, strengthen existing controls, and improve internal oversight as the organization moves to the future and demonstrates the best stewardship of public support.

Dr. Linda Blessing approached the podium and commented that it had been her pleasure to serve on this Community Member Blue Ribbon Panel of community volunteers which included:

Timothy R. Baughman , Vice President, Northern Trust Bank;
Mark Landy, CPA, Partner, Miller, Allen & Company;
Dennis Mitchem, retired CPA, Part-time Director, Corporate Relations at Northern Arizona University and retired partner, Arthur Andersen;
Nancy Roach, CPA, Executive Director, Ronald McDonald House; Jaimie Soulvie, CPA, Deputy Administrator for Financial Services, Department of Economic Security;
Rick Wardrip, CPA, Corporate Auditor, Salt River Project

Dr. Blessing commented that the makeup of the panel includes members with expertise in finance and internal controls. She personally agreed to chair the group because she noted that Dr. Glasper was sincere in his desire to work on this project. She expressed appreciation for the support she received from staff members, with special thanks going to Vice Chancellor Debra Thompson and the Internal Audit Team. The Panel specifically reviewed internal controls over select business operations and findings from the District’s own internal audits or recent reviews. The Panel met four times to discuss numerous operational areas and internal controls. The Panel did not conduct an investigation or audit, nor is it expressing an opinion on internal controls or ensuring that all deficiencies in internal controls are disclosed. The areas of focus were:

1. Ethics Policy and Related Training
2. Conflicts of Interest
a. Financial
b. Hiring of Relative/Nepotism
c. Special Services Employments
3. Employment Standards Policy (Policy of No Tolerance)
4. Enrollment Irregularities
5. Whistleblower Policy/Ombudsperson Office
6. Internal Audit
7. Cash Handling
8. Travel
9. Use of Facilities
10. Pay While on FMLA

Upon conclusion of its review, the Panel made the following recommendations:

Mandatory Public Stewardship and Ethics Training. Training of employees in public stewardship and ethics and in the legal requirements of public sector employees will be mandated. Additionally employees will be required to acknowledge their review and understanding of the District’s Conflict of Interest Policy annually. Additional scrutiny will be placed on special services contracts.

Strengthened Conflict of Interest Guidelines. The Panel encouraged mandatory, annual acknowledgement of district conflict of interest policy; mandatory public sector employment training; mandatory annual acknowledgement of district hiring of relatives policy; clarified hiring of relatives policy; and annual district-wide report to Board of potential conflicts of interest and hiring of relatives conflicts. In addition, the Panel recommended ongoing compliance evaluations, revision and increased controls for special services employments, verification of all requirements of any special services employments, and review of all existing special services employments.

Adoption of Employment Standards. The Governing Board is being requested to adopt an Employment Standards Policy that sets forth the types of employee actions that will result in disciplinary action, including termination. The District’s hiring policies will be clarified and all employees, on an annual basis will be required to read and understand those policies.

Enrollment Verification and Validation. The Panel recommended that certain employee enrollment practices be prohibited and requirement that faculty or employee enrollments be required. Each semester employee and dependent tuition waivers should be reviewed and that regular reporting by colleges be done regarding compliance.

Enhanced Whistleblower / Ombudsperson Office. An internal ombudsperson’s office, where employees can find a neutral, interested third party to help resolve issues and concerns, will be established. The existing whistleblower policy will be strengthened and a hotline established where employees can voice their concerns anonymously.

Expanded Internal Audit Function. The mission and scope of the Internal Audit Department will be strengthened. Internal control policies will be defined to ensure that management understands it is responsible for internal controls. A community member will chair the Audit and Finance Committee.

Improve Cashing Handling Procedures. Cash handling internal controls should be codified and training and supervision of college fiscal staff to conduct cash count audits at other colleges should be done.

Clearly Defined Travel Policies. A stricter policy that defines acceptable travel will focus on international travel that advances the District’s mission. Each college will be required to provide annual reports to the Chancellor outlining all travel requests by employees and the benefits gained by the District from each trip.

Facility Use Guidelines. Quarterly reports on college facilities use should be required and sent to the Board. Event co-sponsorship definition should be clarified and rental fee waiver should be based on activity rather than user. It was recommended that administrative regulations on facilities use should be revised.

President Rosenthal proceeded to lead the Board through a review of each of the pages of the proposed policies and regulations in order to get their thoughts and comments. These were noted by Vice Chancellor Thompson and were to be incorporated into action items for the February 27, 2007 Regular Board Meeting Agenda.

Concluding Comments:

Mr. Walker: No comment

Mr. Crowley thanked the panel for their time and effort spent in looking at the policies. He commented that it should be a top priority for all employees to be good stewards of public monies. A few have violated the trust but many have followed policies. It is time to return to the focus back on students.

Dr. Campbell commented that this District has been existence forty-two years and grown to be ten college and two skill centers and we have done an excellent job.

Ms. Clark expressed support for Dr. Glasper’s recent actions and believe that he acted with leadership and integrity. She indicated that she looked forward to working with Dr. Glasper as they worked together to adopt the recommendations of the Panel. She expressed appreciation to members of the Blue Ribbon Panel for their diligence and time and lastly to everyone who comprised the Maricopa Community College District for making it their daily objective to maintain a District drive by and known for excellence and high ethical standards.

President Rosenthal stated that Maricopa has been a great District and Maricopa Governance has helped make it a great one. The recommendations deserve the support by members of the Board and the Board is proud to have Dr. Glasper as the head of this District. She expressed appreciation to the Panel for the work they have completed.

Dr. Glasper also expressed his appreciation to the Blue Ribbon Panel for their hard work and to Vice Chancellor Debra Thompson and staff for their work as well. In summary Dr. Glasper stated that everyone had before them important recommendations which included mandatory public stewardship training and ethics training for employees, as well as acknowledgement of District’s conflict of interest policies. There should be mandatory Public Sector training and mandatory law enforcement notification for certain activities. There needs to be the establishment of an Internal Ombudsperson position and a requirement that the Audit and Finance Committee be chaired by a community member. Further recommendations would be to lead by example, to strengthen Internal Audit and Management, and initiate a comprehensive organizational review. As part of leading by example, the Chancellor and all of CEC would the first to participate in public stewardship and ethics training. Board Members would also be invited to attend and Board focus on financial reporting would be encouraged. Dr. Glasper expressed that we have to move beyond why we are here today and recognize that we have communities to serve. It is his responsibility to lead this District into a better and brighter future and to show the public that it is worthy of their support financially and morally.

ADJOURNMENT
The meeting adjourned at 3:35p.m.

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Dr. Donald R. Campbell
Governing Board Secretary