Don't think you can argue too much with this editorial from today's ADG:
There they go again
How many lessons does UCA need?
YOU WOULD think that after L’Affaire Hardin, the University of Central Arkansas at Conway would insist that all its financial dealings be open and accountable to the taxpaying public. It is a public university, after all. Yet of all state universities, UCA is the only one with a fund its board of trustees can spend at their own discretion. That’s the same fund that Mr. Hardin, now its ex-president, used to extract a secret $300,000 bonus that led to his conviction on charges of money-laundering and wire fraud. This discretionary fund totaled more than $447,000 at last report, and the chairman of the school’s board can allow expenditures of up to $25,000 a year without the board’s approval. That’s asking for trouble. To quote Richard Weiss, the director of the state’s Department of Finance and Administration, letting a single member of the board draw from such a fund on his own say-so “would not have the transparency” or accountability a public university should. “I can’t imagine it being good public policy,” he adds. “I imagine that’s why the other four-year public colleges have not done it.” Shane Broadway, who’s now interim director of the state’s Department of Higher Education after he lost his race for lieutenant governor last year, says boards of trustees have the authority to maintain such discretionary funds. But, he adds, “It’s important that they have policies in place for transparency and accountability to ensure that public dollars are expended, accounted for, and audited properly.” The best way to do that would be to require that the entire board of trustees approve such expenditures, rather than leaving the decision to just one trustee. That way, UCA could guard against any repeat of L’Affaire Hardin. One of those was quite enough, thank you. UCA needs to demonstrate that it’s learned its lesson. But its discretionary fund leaves entirely too much discretion to a single member of the university’s board. There’s a reason responsible organizations require that all checks be countersigned by some member of their governing boards, rather than leave such decisions to a single official. Art English, a poli-sci professor at the University of Arkansas at Little Rock, offers this cautionary word about such discretionary funds: “Those kinds of things perhaps do not necessarily lead to corruption, but they could lead to abuse. It’s much better to have full transparency and checks and balances.” That’s good advice—and UCA’s board should take it.
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