September 9-10, 1993
09-09-1993
Pages 1-86
BOARD OF REGENTS
UNIVERSITY AND COMMUNITY COLLEGE SYSTEM OF NEVADA
September 9-10, 1993
The Board of Regents met on September 9-10, 1993 in the Multi-
Purpose Room, Truckee Meadows Community College in Reno.
Members present: Dr. James Eardley, Chairman
Mrs. Shelley Berkley
Dr. Jill Derby
Dr. James Eardley
Mr. Joseph M. Foley
Mrs. Dorothy S. Gallagher
Mr. Madison Graves, II
Dr. Lonnie Hammargren
Mr. Daniel J. Klaich
Mrs. Nancy Price
Mrs. Carolyn M. Sparks
Members absent: Mrs. June F. Whitley
Others present: Interim Chancellor John A. Richardson
President Anthony Calabro, WNCC
President Joseph Crowley, UNR
President John Gwaltney, TMCC
President Robert Maxson, UNLV
President Paul Meacham, CCSN
President Ronald Remington, NNCC
Mr. Dale Schulke, DRI
Mr. Donald Klasic, General Counsel
Mr. Ron Sparks, Vice Chancellor
Mrs. Karen Steinberg, Acting Vice Chancellor
Ms. Mary Lou Moser, Secretary
Also present were Faculty Senate Chairmen Alan Balboni (CCSN),
Phil Boardman (UNR), Chris Gaub (Unit), Scott Hawkins (NNCC),
Dan Mc Clure (TMCC), Alan Mc Kay (DRI), Mark Melrose (WNCC),
John Swetnam (UNLV), and Student Association Officers.
Chairman Eardley called the meeting to order at 1:15 P.M. Thurs-
day, September 9, 1993, with all Regents present, except Regents
Hammargren and Whitley.
1. Approved Consent Agenda
Approved the Consent Agenda (identified as Ref. A, filed
with the permanent minutes), containing the following:
(1) Approved the minutes of the regular meeting held
June 24-25, 1993 and minutes of the special meeting
held July 15, 1993.
(2) Approved the gifts, grants and contracts, listed in
Ref. C-1, filed with the permanent minutes.
There was additional discussion regarding the gift
list at the end of this item.
(3) Approved an extension of leave of absence without
pay for UNR employee, Steven R. Graybar, through
June 30, 1994.
(4) Approved a second year of leave of absence without
pay for UNLV employee, Raymond Lucchesi, pending
resolution of litigation involving the State Ethics
Commission ruling regarding the architecture build-
ing at UNLV.
(5) Approved the following appointments to the School of
Medicine's Rural Advisory Board:
Ms. Elizabeth C. Nozero, Chairman of the Area
Health Education Center Board of Directors for
Southern Nevada, which represents a four county
area consisting of Clark, Esmeralda, Lincoln
and Nye counties.
Dr. Janet Quillian, Director of the Family Nurse
Practitioner Program at the College of Health
Sciences, UNLV.
(6) Approved the appointment of Mr. George William Allf
to the CCSN Advisory Board.
(7) Approved the appointment of Ms. Florence Frost to the
UNLV Extended Education Advisory Board.
(8) President Gwaltney reported on the appointment of
Anne Louise Pacheco to the position of Acting Execu-
tive Director of Development at TMCC.
(9) Approved the appointment of Dr. Demetrios Kazakos,
a Professor of Electrical Engineering at UNLV, with
tenure, to be effective retroactively to August 24,
1993.
(10) Approved authorization to utilize General Fee Im-
provement Funds at WNCC in the amount of $110,000
for part-time staff in the following areas: night
security, Learning Resource Center, Financial Assist-
ance, Counseling Services, and teaching assistants.
(11) Approved authorization to utilize Capital Improvement
Fees at WNCC in the amount of $150,000 for the fol-
lowing purposes:
Completion of the Family Services $143,500
Center for the following expenses:
change orders, alternate #1 classroom,
architect fees, landscaping, additional
handicapped parking, and relocation of
a water line.
Upgrade the telephone system in the $ 6,500
Business Office, Administrative
Services and other administrative
offices at WNCC.
(12) Approved authorization to utilize Capital Improvement
Fees at TMCC in the amount of $28,000 to remodel the
Washoe County Library - Old Town Mall space.
Originally, TMCC requested $75,000 for the remodel
project. After some project redesign and the formal
construction bid opening, the project, plus a 5%
contingency, will cost $103,000, an increase of
$28,000.
(13) Approved authorization to utilize Capital Improvement
Fees at UNR in the amount of $250,000 to extend fiber
optic capabilities on the UNR Campus.
One link would extend connectivity to Lincoln Hall,
Thompson Student Services, the Graduate School and
the west side of Virginia Street to the Dormitories,
University Inn, Midby-Byron, Artemisia and the Women's
Center. Link number two would run from the School of
Medicine, past the Sports Medicine and the Lombardi
Recreation buildings to Fleischmann Agriculture.
This link would also serve as a critical backup and
alternative route to the lower Campus should the
other link be disrupted. A third link would be estab-
lished from the Laxalt Mineral Engineering building
to the Mines buildings.
Lastly, connectivity would be provided to all remain-
ing no-cabled classrooms to the Campus broadband net-
work and equipment for testing and maintenance of the
Campus infrastructure would be acquired.
(14) Approved a Handbook change, Title 4, Chapter 17, Sec-
tion 10, Student Fees.
The vision plan which was offered to UNR students
through the student health and accident insurance
plan will not be available this academic year.
(15) Approved Handbook changes, Title 4, Chapter 17, Sec-
tion 17, Apartment Rentals, as contained in Ref. C-2,
and Title 4, Chapter 17, Section 18, University Inn,
as contained in Ref. C-3. Reference material is
filed in the Regents' Office.
(16) The Higher Education Act Amendments of 1992 (20 U. S.
C. 1091b) require that students received Title IV
student financial assistance and who are enrolled for
the first time at an institution be given a pro rata
refund if they withdraw during the first 60% of that
first semester. As all six UCCSN instructional insti-
tutions award Title IV aid funds, Handbook additions
are requested as follows:
Note: All reference material is filed in the Regents'
Office.
University of Nevada, Reno
Title 4, Chapter 17, Section 8.3, Refund Policy, as
contained in Ref. C-4a, and Title 4, Chapter 17,
Section 14, Refund of Residence Hall and Food Services
Charges, UNR, as contained in Ref. C-4b.
University of Nevada, Las Vegas
Title 4, Chapter 17, Section 8.2, Refund Policy, as
contained in Ref. C-5a, and Title 4, Chapter 17,
Section 14, Refund of Residence Hall and Food Services
Charges, UNLV, as contained in Ref. C-5b.
Northern Nevada Community College
Title 4, Chapter 17, Section 8.1, Refund Policy, as
contained in Ref. C-6.
Community College of Southern Nevada
Title 4, Chapter 17, Section 8.4, Refund Policy, as
contained in Ref. C-7.
Truckee Meadows Community College
Title 4, Chapter 17, Section 8.5, Refund Policy, as
contained in Ref. C-8.
Western Nevada Community College
Title 4, Chapter 17, Section 8.6, Refund Policy, as
contained in Ref. C-9.
(17) Approved the following UNR self-supporting budgets:
School of Medicine/Family Medicine
UNLV Student Health Services Contract
1991 1992
Budget
Actual Estimate
Resources:
Opening Account Balance $ 0 $ 30,000
Revenue: UNLV Contract 90,870 181,740
Total Source of Funds $ 90,870 $211,740
Expenditures:
Professional Salaries $ 0 $ 93,200
Fringe Benefits 0 16,377
Operating 60,870 102,163
Total Expenditures: $ 60,870 $211,740
Transfers Out: $ 0 $ 0
Ending Balance: $ 30,000 $ 0
Total Use of Funds $ 90,870 $211,740
School of Medicine/Administration
Medical School Annual Campaign Fund
1992-93 1993-94
Projected Budget
Actual Estimate
Resources:
Opening Account Balance $ 33,170 $ 65,599
Revenue: Gifts 34,983 30,000
Total Source of Funds $ 68,153 $ 95,599
Expenditures:
Professional Salaries $ 2,500 $ 0
Classified Salaries 0 71,423
Fringe Benefits 0 20,468
Travel 54 0
Operating 0 3,708
Total Expenditures: $ 2,554 $ 95,599
Transfers Out: $ 0 $ 0
Ending Balance: $ 65,599 $ 0
Total Use of Funds $ 68,153 $ 95,599
Graduate School
Bio-Fine Agreement
1992-93 1993-94
Projected Budget
Actual Estimate
Resources:
Opening Account Balance $ 0 $ 0
Revenue: Gifts 0 33,130
Total Source of Funds $ 0 $ 33,130
Expenditures:
Professional Salaries $ 0 $ 27,000
Fringe Benefits 0 5,130
Operating 0 1,000
Total Expenditures: $ 0 $ 33,130
Transfers Out: $ 0 $ 0
Ending Balance: $ 0 $ 0
Total Use of Funds $ 0 $ 33,130
Continuing Education/Center for Dispute Resolution
1992-93 1993-94
Projected Budget
Actual Estimate
Resources:
Opening Account Balance $278,697 $191,384
Revenue: Gifts 150,000 0
Total Source of Funds $428,697 $191,384
Expenditures:
Professional Salaries $111,227 $ 94,148
Fringe Benefits-Professional 19,548 17,713
Classified Salaries 34,828 52,900
Fringe Benefits-Classified 5,305 12,542
Wages 2,561 2,000
Fringe Benefits 30 24
Travel 7,732 0
Operating 47,984 0
Equipment 8,098 0
Total Expenditures: $237,313 $179,327
Transfers Out: $ 0 $ 0
Ending Balance: $191,384 $ 12,057
Total Use of Funds $428,697 $191,384
Journalism
Minority Recruitment/Retention Program
1992-93 1993-94
Projected Budget
Actual Estimate
Resources:
Opening Account Balance $ 0 $ 0
Revenue: Gifts 0 30,000
Total Source of Funds $ 0 $ 30,000
Expenditures:
Professional Salaries $ 0 $ 25,010
Fringe Benefits-Professional 0 4,752
Total Expenditures: $ 0 $ 29,762
Transfers Out: $ 0 $ 0
Ending Balance: $ 0 $ 238
Total Use of Funds $ 0 $ 30,000
(18) Approved the following interlocal agreements:
A. UCCSN Board of Regents/UNR and the State Depart-
ment of Human Resources/Sierra Development Center
(Interlocal Contract)
Effective Date: Date approved by Board through
June 30, 1994
Amount : $18,720 maximum to UNR
Purpose : UNR's Department of Psychology
to provide one or more doctoral
students to perform full range
of psychological services for
Sierra Developmental Center.
B. UCCSN Board of Regents/UNR and the Nevada Depart-
ment of Taxation (Interlocal Contract)
Effective Date: July 1, 1993 to June 30, 1995
Amount : $116,552 to UNR
Purpose : UNR to provide demographer to
make annual estimates of popula-
tion of State of Nevada.
C. UCCSN Board of Regents/UNR and the State Division
of Health (Interlocal Contract)
Effective Date: Date approved by Board through
September 30, 1993
Amount : $7500 to UNR
Purpose : UNR's Geriatric and Gerontology
Center will provide two training
sessions in September 1993 to
the providers of services in
skilled and intermediate care
facilities.
D. UCCSN Board of Regents/UNR and the State Depart-
men of Commerce/Housing Division (Interlocal
Contract)
Effective Date: Date approved by Board through
June 30, 1994
Amount : $6175 to UNR
Purpose : UNR to conduct semi-annual Washoe
County Housing Conditions Report
to include estimation of prob-
able future housing conditions.
E. UCCSN Board of Regents/UNR and the Washoe County
School District (Interlocal Contract)
Effective Date: July 1, 1993 through June 30,
1994
Amount : $1.15 per mile for each actual
mile logged by said buses.
Purpose : UNR to lease school buses from
Washoe County School District in
connection with educational pro-
grams.
F. UCCSN Board of Regents/UNR and Nevada Office of
the Attorney General (Interlocal Contract)
Effective Date: Date approved by Board through
December 30, 1993
Amount : $6000 to UNR
Purpose : UNR to conduct projects relating
to testimony and trial prepara-
tion in case of Stivers, et al v.
Pierce, et al, to be described
in UNR's task order proposals and
the AG's letters accepting such
task order proposals.
G. UCCSN Board of Regents/UNR and State Department
of Commerce/Housing Division (Interlocal Contract)
Effective Date: Date approved by Board through
January 30, 1994
Amount : $31,236 to UNR
Purpose : UNR to conduct update of Compre-
hensive Housing Affordability
Strategy (CHAS) report and pro-
duction of annual update of the
CHAS.
H. Withdrawn by General Counsel Klasic at the re-
quest of the UNR Campus.
I. UCCSN Board of Regents/School of Medicine and
Nevada Department of Human Resources/Division of
Health (Interlocal Contract)
Effective Date: Amendment extending time from
June 30 through December 31,
1993
Amount : $75,436 to Medical School
Purpose : Medical School to conduct cross-
sectional assessment of mercury
levels in blood and/or urine in
accordance with protocols for
sampling such levels established
by Centers for Disease Control
and Prevention, Agency for Toxic
Substances and Disease Registry.
J. UCCSN Board of Regents/Cooperative Extension and
the State Department of Human Resources (Inter-
local Contract)
Effective Date: July 1, 1993 through June 30,
1994
Amount : $29,645 to Cooperative Extension
Purpose : Hands-on educational program for
48 11-13 year old, economically
disadvantaged adolescents to in-
crease opportunity for school
success and future economic self-
support.
K. UCCSN Board of Regents/Cooperative Extension and
the State Department of Human Resources/Division
of Child and Family Services (Interlocal Contract)
Effective Date: July 1, 1993 through June 30,
1994
Amount : $35,719 to UNR
Purpose : To provide secondary prevention
for abuse and neglect to children
of approximately 25 adolescent
mothers currently or formerly in
State custody.
L. UCCSN Board of Regents/School of Medicine and the
State Health Division (Interlocal Contract)
Effective Date: July 1, 1993 through June 30,
1994
Amount : $6000 to UNR
Purpose : Trudy Larsen, M. D., to provide
medical consultation services to
Health Division as "backup" phy-
sician to Nurse practitioners at
Carson City Health Department.
M. UCCSN Board of Regents/School of Medicine and the
State Department of Human Resources/Health
Division (Interlocal Contract)
Effective Date: July 1, 1993 through June 30,
1994
Amount : $7078 maximum to Medical School
Purpose : Medical School to provide facili-
ties and staff toward screening
and examination and recommend
services for the Craniofacial
Clinic.
N. UCCSN Board of Regents/CCSN, NNCC and TMCC and the
Nevada State Board of Nursing (Interlocal Con-
tract)
Effective Date: July 1, 1993 through June 30,
1998
Amount : $25,000 maximum to UCCSN
Purpose : CCSN, NNCC and TMCC to provide
examination of applicants for
certification as Nursing assist-
ants.
O. UCCSN Board of Regents/WNCC and Carson-Tahoe
Hospital (Interlocal Contract)
Effective Date: July 1, 1993 through June 30,
1995
Amount : $60,000 to WNCC
Purpose : WNCC to hire an additional Nurse
instructor in implementation of
its Nursing Program.
P. UCCSN Board of Regents/UNR and the Department of
Human Resources/Mental Hygiene and Mental Retarda-
tion Division (Interlocal Contract)
Effective Date: July 1, 1993 through June 30,
1994
Amount : $23,520 maximum to UNR
Purpose : Provide a course of instruction
for mental health technicians,
mental retardation technicians,
and forensic specialists.
Q. UCCSN Board of Regents/TMCC and State Job Training
Office (Interlocal Contract)
Effective Date: July 1, 1993 through June 30,
1994
Amount : $35,000 to TMCC
Purpose : TMCC to provide education and
counseling for displaced home-
makers.
R. UCCSN Board of Regents and TCI Cablevision of
Nevada, Inc. (Easement and Agreement)
Effective Date: Date approved by Board, for
five years from that date.
Amount : Billing will be between TCI
Cable and individuals who live
in Canada Hall.
Purpose : Cable television access for
Canada Hall.
Mrs. Price moved adoption of the Consent Agenda with the
exception of removing those items donated by the UNLV
Foundation for President and Vice Presidents auto allowance
at UNLV, as found on pages 116 and 120 of the gift list.
Dr. Derby seconded.
Mr. Price explained that she did not have a problem with
the amounts given by the UNLV Foundation, but requested
that such gifts be reported to the full Board on the regu-
lar Board of Regents' agenda. She felt that the gifts were
given to individuals not to the positions. She did not
appreciate the way the gifts were presented, in that the
gifts were "buried" in the 137 page gift list. She request-
ed that a procedure be implemented so that such gifts that
are given to individuals are brought before the full Board
of Regents.
Dr. Hammargren entered the meeting.
Mrs. Price requested that these items be removed from the
gift list and presented to the Board at the next meeting
for consideration.
Interim Chancellor Richardson explained the current practice
followed is that when a foundation donates to the institu-
tion, the gift is reported to the Board of Regents for ac-
ceptance, and then distributed accordingly. The System
issues contracts to those individuals who fill the positions
of President and Vice Presidents, and the auto allowances
are included in the contracts in accordance with Board of
Regent policy.
Mrs. Price Stated that the public perception is that the
gift is going directly to the individual, not the position.
Mr. Graves and Mr. Klaich disagreed with Mrs. Price's anal-
ysis of the public perception and agreed that the gift lists
are prepared for Board of Regents' acceptance, and in turn
the Board of Regents authorizes the distribution of the
gifts accordingly. Mrs. Gallagher pointed out that the UNLV
Foundation has donated these gifts with restrictions that
funds be spent for the purpose of auto allowances for the
President and Vice Presidents.
Mrs. Price amended the motion by removing the entries from
the gift list that provide for auto allowances for the UNLV
President and Vice Presidents, and that these entries be
handled in a more direct manner. Dr. Derby withdrew the
second. Dr. Hammargren agreed to second the motion provided
that the amendment be changed to accept the gift list and
in the future separate the above questioned items. Motion
died for lack of a second.
Mr. Klaich moved adoption of the Consent Agenda and approval
of the prepared agenda with the authority to change the
order of items as specified throughout the meeting. Mrs.
Sparks seconded. Motion carried unanimously.
2. Introductions
President Gwaltney introduced Mrs. Marsha Lindeken, Assist-
ant to the President.
President Maxson introduced Mr. Matthew Simon, Dean of
Libraries.
3. Chairman's Report
Chairman Eardley reported that the Board of Regents is very
sympathetic toward the institutions due to the reduced budg-
et the Legislators recently approved for UCCSN.
The cost of higher education and books are increasing across
the nation. Chairman Eardley requested teaching faculty to
take a close look at the publications which they are requir-
ing their students to purchase. Mrs. Berkley questioned to
whom she should refer inquiries regarding the cost of books
and Chairman Eardley suggested that she direct the inquirer
to the institutions. President Crowley agreed that the cost
of books is a serious problem nationwide. The book publish-
ers are making a good profit; however, the repurchase value
on the books is declining. Mr. Foley requested that this
issue be placed on the agenda in the future for further
discussion.
The Board of Regents are here for a reason -- the student.
Chairman Eardley stated that he was surprised to learn that
UNR students are dissatisfied with the recently revised
grading policy. The students have indicated that they did
not have a chance to voice their opinions on this issue.
Chairman Eardley pointed out that institutions continue to
advertise and recruit for additional students, and at the
same time the institutions are considering capping educa-
tional programs.
Chairman Eardley discussed the committee structure and stat-
ed that the proposed changes were made in an effort to con-
solidate committees and to allow sufficient time for com-
mittees to meet. An item has been placed on the agenda for
further discussion, and he is hopeful that the members of
the Board of Regents will support his proposed committee
structure.
4. Chancellor's Report
Interim Chancellor Richardson announced that Betty Stout
has donated a gift to DRI for an endowed fellowship in
Hydrology/Hydrogeology, which has been reported under the
Consent Agenda's gift list for DRI. Vice President Dale
Schulke stated that on behalf of President Taranik, DRI
would like to formally thank Mrs. Stout for her generosity.
Mrs. Stout sent her greetings to the members of the Board
of Regents.
In August, UNLV was informed that their Civil, Electrical
and Mechanical Engineering programs were approved for ac-
creditation by the Accreditation Board of Engineering and
Technology (ABET).
Interim Chancellor Richardson announced that University of
Nevada Press has recently been recognized for its publica-
tions. These are very significant national and interna-
tional recognitions. He commended Director Tom Radko and
the University of Nevada Press staff.
1) AAUP Winners - More than 650 entries were received
for the AAUP annual "Book Jacket and Journal Show".
Of the 650+ entries AAUP selected 67 books, 29
jackets and 4 journals for this year's show. Nevada
had 3 winners -- the most in the Press' history.
"Child of the Holy Ghost" and "Wilderness
Tapestry" selected in the typographic book
category.
"Arid Waters" selected in the illustrated book
category.
2) The book "FDR's Moviemaker" has given the Press some
great national exposure which include media spots in
the following:
"The New York Times"
"The Los Angeles Times'
"The Washington Post"
"The International Herald-Tribune"
(and even a newspaper in Venice)
Interim Chancellor Richardson discussed the Eisenhower
Mathematics and Science Education Programs Grant. Awarded
in August, the grant totaling $304,246 for the year ending
September 30, 1994, funds several projects in the science
and mathematic education programs throughout the System.
Interim Chancellor Richardson reported that health care is
a very important issue to all State employees and, of
course, one of national concern. He announced that he has
recently appointed a Chancellor's ad hoc Health Benefits
Committee whose membership represents the "experts" on the
Campuses in this area. The appointments have been unani-
mously agreed to by the Presidents and Faculty Senate
Chairmen. The members are as follows:
Mary Paterson, Chair, UNLV Health Care Administration
Pam Cross, BCN Financial/Benefits Counselor
Donald Hardigree, UNLV Director of Insurance and Risk
Management
Penny Jenkins, UNR Management Assistant, College of
Business
Janet Mac Donald, UCCSN Deputy Treasurer
Judson Mitchell, UNLV Director of Human Resources
David Noonan, UNR Professor of Educational Leadership
Jeanne Wendel, UNR Professor of Economics
Sue Baker, Staff/Secretary, UCCSN Assistant to the
Chancellor
The Committee will be UCCSN's "swat team" on health benefit
issues, and will represent UCCSN at State Committee on
Benefits meetings. The Committee will advise the Chancellor
and the Council of Presidents on its recommendations. In-
terim Chancellor Richardson explained that because health
care is a crisis issue for System employees, he felt con-
fident of the selection of the members of the Committee,
although it does not have equal representation among the
institutions.
Interim Chancellor Richardson reported that the ad hoc
Compensation Study Committee will be holding future meet-
ings, as follows:
Tuesday, September 14 - Video Conference
Wednesday, September 22 - Chancellor's Office, Reno
Interim Chancellor Richardson announced that the WICHE
Conference in Las Vegas is scheduled for September 16-18,
1993 at the Riviera Hotel. WICHE is holding an invita-
tional workshop "Confronting the Tuition Spiral: From
Policy Drift to Action". The conference is co-sponsored
by the College Board and the Western Legislative Confer-
ence. Among those invited from Nevada are State educa-
tional leaders and Legislators.
5. Approved Appointment, State Postsecondary Review Entity,
(SPRE), UCCSN
Mr. Glen Krutz, UCCSN Research Analyst, reported that
Governor Bob Miller has designated the Board of Regents of
the University and Community College System of Nevada as
the appropriate agency to serve as Nevada's postsecondary
review entity, as provided in the Higher Education Act
(HEA) of 1992. The responsibility of this entity is to
assure the integrity of federal student financial aid
funds disbursed pursuant to Title IV of the HEA, and in-
cludes both public and private postsecondary institutions
within the State. Funding is also provided for planning
purposes.
Approved UCCSN to serve as Nevada's postsecondary review
entity.
Interim Chancellor Richardson will proceed working with the
SPRE program. Nevada will join a consortium of 9 other
states set up through NCHEMS. Interim Chancellor Richard-
son stated that if Congress does not appropriate funds to
the states for SPRE, the program will not go forward. UCCSN
will work cooperatively with Nevada's postsecondary public
Colleges.
Mrs. Berkley moved approval of the appointment of UCCSN to
serve as Nevada's postsecondary review entity (SPRE). Mrs.
Sparks seconded. Motion carried.
6. Information Only: State Public Works Board Presentation
Regarding Library Planning, UCCSN
Mr. Tom Stephens, Director of the State Public Works Board
(SPWB), presented information regarding a study of library
planning throughout UCCSN. The 1993 Legislature appropriat-
ed funds for this study to the State Public Works Board.
It was the intent of the Legislature and the Governor that
the majority of this appropriation be dedicated to library
needs at UNLV. In an effort to involve the Board in this
important project, Mr. Stephens presented information re-
garding the study (Project 93-S4c), filed in the Regents'
Office.
Mr. Stephens stated in the August 20, 1993 letter to the
Board of Regents that SPWB is "seeking the concurrence of
the Board of Regents in the general approach for the study.
Such concurrence does not obligate the Board to include any
library projects in its 1995 Capital Improvement Requests,
but if such library projects are included, this study will
provide a basis for justification of those projects."
Mr. Stephens indicated that UCCSN's Council of Academic
Library Deans and Directors has discussed this issue and
concurs in the scope of the work. The SWPB developed a
Request for Proposal and is seeking a library planning
consultant to perform a detailed library facilities plan
for the UCCSN.
Several Regents stated their support for this project and
applauded the SPWB's efforts. Upon questioning, Mr.
Stephens responded that recommendations and a final report
will be submitted to the Board of Regents and the State
Public Works Board for consideration. Mr. Klaich suggested
that the consultants meet with undergraduate and graduate
students, since they are the key users of the libraries.
Mr. Stephens introduced UNLV's Dean of Libraries, Matt
Simon, who is nationally recognized in the library field
and has much expertise. Mr. Simon expressed his apprecia-
tion for Mr. Stephen's efforts on this project, and the
Board of Regents for their support.
Chairman Eardley stated on behalf of the Board of Regents
the presentation was greatly appreciated and the Board also
appreciates the efforts put forth by the State Public Works
Board. He questioned whether the SPWB planned on changing
the Regents' priorities for capital construction in the
future and Mr. Stephens indicated that as Manager, he would
not change the priority list without the consent of the
Board of Regents.
The open meeting recessed at 2:23 P.M. and reconvened at 3:24
P.M. Thursday, September 9, 1993, with all Regents present except
Regents Berkley, Foley, Gallagher, Price, Sparks and Whitley.
7. Information Only: Proposed Continuing Education Building,
UNLV
Senior Vice President/Provost John Unrue reported on a pro-
posed building for Continuing Education at UNLV with fund-
ing to come from private sources. Approximately 14,000
students participate in non-credit continuing education
classes at UNLV.
Should funds be raised, and approval by the Board of Regents
be forthcoming, this project would require Public Works
Board and Interim Finance approval.
Vice President of Academic Affairs John Unrue stated that
this project is in no way an attempt to distort the already
established Capital Improvement Project list.
Regents Berkley, Foley, Price and Sparks entered the meeting.
Dean of Extended Education Paul Aizley informed the Board
that a non-profit senior citizens group, EXCELL - Extended
Education Center for Life-Long Learning - is very interested
in this project and will help raise funds for the 50,000
sq. ft. building which is estimated to cost $10 million.
Upon questioning, it was learned that this project is con-
tained in the UNLV Physical Master Plan.
8. Information Only: Outstanding Student Recognition
At the request of the Board of Regents, each Student Govern-
ment Officer reported on the outstanding student achievement
from the institution. Ref. C is filed in the Regents' Of-
fice.
University of Nevada, Reno
Melodi Rodrigue
Truckee Meadows Community College
Kathleen A. Chapman
Erica Hufford
David Mosley
Sari Saevitz
9. Information Only: Public Comment
Chairman Eardley informed the Board that an item will be
placed on future regular Board of Regent agendas that will
allow public comment prior to action items which the Board
would be considering.
No public comment was made.
10. UCCSN Contracts
Regent Madison Graves requested that the Board of Regents
review the process through which it approves institution
requests to negotiate a purchase price for property. He
stated that in the past the Board of Regents has authorized
the institutions to negotiate up to a certain amount. This
allows the seller to negotiate that amount, and limits the
institution to negotiate for a lower amount.
Interim Chancellor Richardson stated that he has talked
with Mr. Graves and General Counsel Klasic on this subject.
He has suggested two alternatives in negotiating a purchase
price for property:
1) authorize institution to negotiate with seller
without a price, then have institution report to
the Board of Regents; or
2) authorized the Chancellor to approve negotiated
purchase price for property.
General Counsel Klasic stated that there are no statutes
that address this issue; therefore, the Board of Regents
can set its own policy.
Dr. Hammargren moved approval to direct the Chancellor to
develop a policy on contract purchases. Mrs. Sparks second-
ed.
Mr. Klaich suggested that the policy reflect the delegation
of the institution President's authority to negotiate the
land acquisition including the purchase price, subject to
Board of Regents' approval.
Motion carried.
11. Information Only: Outstanding Faculty Recognition
At the request of the Board of Regents, each Faculty Senate
Chairman reported on the outstanding faculty achievement
for the institution. Ref. B is filed in the Regents' Of-
fice.
University of Nevada, Reno
James A. Bernardi
Community College of Southern Nevada
Carolyn J. Collins
Truckee Meadows Community College
Leon Lucchesi
University of Nevada, Las Vegas
Barbara K. Hanford
William J. Robinson
12. Approved UCCSN FY 1994 Operating Budget
At the June 24-25, 1993 meeting the Board of Regents approv-
ed the continuation of UCCSN expenditures at the FY 1993
rate until the Legislature had adjourned. Vice Chancellor
Sparks presented the FY 1994 UCCSN Operating Budget for
final approval. The 1994 UCCSN Operating Budget is filed
in the Regents' Office.
Vice Chancellor Sparks distributed additional information
and explained the graphs which addressed annualized FTE
enrollments, general fund operating appropriations, regis-
tration, fees/cost per credit, Universities non-resident
tuition, State General Fund/tuition & fees percent of total
operating budget, and general fund appropriations percent
distribution between UCCSN and K-12. This information is
filed in the Regents' Office.
Vice Chancellor Sparks stated that UCCSN's State-Supported
Operating Budget totals $254.3 million. This compares to
$260.1 million (before the Governor's budget reductions of
$21.9 million) for the 1992-93 fiscal year and represents
a 2.2% decrease in the authorized funding level.
State appropriations for fiscal year 1993-94 amount to
$194.2 million representing 76.4% of the State-Supported
Operating Budget. This compares to $207.6 million for
fiscal year 1992-93 (before budget reductions) and repre-
sents a 6.4% decrease.
Other revenue sources budgeted in the State-Supported Oper-
ating Budget for fiscal year 1993-94 total $60.1 million,
representing 23.6% of the State-Supported Operating Budget.
This compares to $52.5 million for fiscal year 1992-93 and
represents a 14.3% increase.
Vice Chancellor Sparks stated that student fees for fiscal
year 1993-94 represent approximately 18% of the total rev-
enue. This compares to 16.2% for fiscal year 1992-93 and
represents an 8% increase in student fees budgeted in the
Operating Budget. Included in the 1993-94 Operating Budget
is an increase in the Universities' non-resident tuition
from the fiscal year 1992-93 level of $4050 per year to
$4300 per year effective Fall semester 1993. Registration
fees for UNR students increased $1 per credit to $55.50 per
credit which is the same as charged at UNLV for FY 1992-93.
Graduate registration fees at UNR increased by $3.50 per
credit to $77.50 per credit which is the same as charged at
UNLV for FY 1992-93.
Registration fees for the Community Colleges increased by
$1.40 per credit to $29.40 per credit. 1/2 of the registra-
tion and tuition fee increases (calculated from the pre-
surcharge levels for fiscal 1992-93) are budgeted for stu-
dent financial assistance for improving access to higher
education per Board of Regents' policy.
Vice Chancellor Sparks stated that registration and tuition
fees for the School of Medicine increased by approximately
9% over fiscal year 1992-93.
Vice Chancellor Sparks continued by highlighting the sched-
ules which summarize the fiscal year 1993-94 Operating
Budget along with detailed budgets for each appropriation
area.
A summary of 1993 approved legislative actions that affect
UCCSN's 1993-94 Operating Budget include the following:
Professional merit pool of 2% for eligible positions
and regular step-progression increases for eligible
classified positions. There are no cost-of-living
increases for the 1993-95 biennium.
Partial salary and operating expenses for new facil-
ities which will be operational during the 1993-94
fiscal year.
Mandatory vacancy savings for professional and classi-
fied positions at 1% and 3% respectively in the in-
structional budgets and at 2% and 3% respectively in
the non-instructional budgets.
Ongoing support costs of the Management Information
System, funded by the 1991 Legislature. (Computing
Services Budget)
Continuation of the Genetics Network Program initially
funded by the 1991 Legislature. (School of Medicine
Budget)
Estate tax funding for the EPSCoR program, the Student
Incentive Grant (SIG) program, and one-shot equipment
acquisitions in the UCCSN Special Projects budget. Es-
tate tax funding also for library book acquisitions in
the instructional budgets. (Universities and Colleges)
Re-establishment of the unemployment compensation as-
sessment against payroll at the rate of .22%.
There are no inflationary adjustments over prior year
costs. Operating costs in general for FY 1993-94 ap-
propriated at the lower of FY 1991-92 actual expendi-
tures or FY 1992-93 legislative approved amounts.
All formula funding methods suspended and not funded
for fiscal years 1994 and 1995; includes the instruc-
tion function formula and support services formulas.
Vice Chancellor Sparks highlighted the 1993-95 legislative
approved special appropriations and authorizations. UCCSN
received approval to expend Estate Tax Funds in the amount
of $2,500,000 for FY 94 and $2,500,000 for FY 95. The
1993-95 Capital Improvements that received legislative
approval include a total minor repairs to UCCSN in the
amount of $1,533,009, making a grand total of $10,000,000
in minor repairs and improvements. The total new construc-
tion amount is $38,263,672.
Vice Chancellor Sparks indicated that the 1993-94 Self-
Supporting Budgets, which were approved at the June Board
of Regents' meeting, are included in the 1993-94 UCCSN
Operating Budget.
Chairman Eardley questioned how the institutions handle
additional students over those legislatively budgeted, and
President Meacham stated that other area budgets are shift-
ed around to allow some allocation and faculty workloads
are increased, which will increase the ratios in the long
run. President Calabro stated that additional Chairs are
added to the clasroom to accommodate the students, but at
some point the Campus then runs out of space. President
Meacham stated that many students are being turned away.
Southern Nevada continues to increase its population which
increases the number of students seeking higher education.
Mrs. Price stated that there is more to funding higher
education than the operating budget. She referred to the
62 pages of athletic donations contained in the Consent
Agenda's gift list.
Mrs. Price questioned whether the Community Colleges were
finding it difficult to collect the 40 cents from the $29.40
per credit fee. Vice Chancellor Sparks indicated that the
Board of Regents' policy states than an increase in tuition
and fees can be no more than a 5% increase and that is how
the $1.40 increase was determined for the Community Col-
leges.
Additional discussion is found after item 13.
13. Information Only: TMCC Faculty Presentation
Vice President of Academic Affairs John Scally introduced
the TMCC faculty who presented information on several pro-
grams offered at TMCC. They were as follows:
Charlotte Cox, Assistive Technology
Cathy Catania, Assistive Technology
Larry Tuteur, Assistive Technology
Jonathan Young, Automotive Technican Educational
Cooperative (ATEC)
Matt Williams, ATEC student
John Hunt, ATEC student
Dan Mc Clure, Substance Abuse Program
Mike Lindeman, Substance Abuse former student
Deborah Baker, Radiologic Technology
Will Hickman, Tech Prep
Dick Brand, Basic Law Enforcement Academy
Alan Mentzer, Basic Law Enforcement Academy
The presentations were well received by those in attendance.
The open meeting recessed at 5:10 P.M. and reconvened at 8:30
A.M. Friday, September 10, 1993 with all Regents present except
Regents Berkley, Foley, Hammergren, Klaich, Sparks and Whitley.
12. Approved UCCSN FY 1994 Operating Budget (continued)
Mrs. Price expressed the need to address budget questions
in a public forum and asked the following questions which
were answered by Vice Chancellor Sparks:
Does the UCCSN FY 1994 Operating Budget reflect only
State funds?
No.
Are there other funds?
Self-Supporting Budgets.
Where are the foundation funds?
Foundation funds are not budgeted funds.
In regard to the Consent Agenda, how are those gifts
from the foundation reported?
If the foundation makes a gift to the institution,
it is deposited with the System Treasury and then
expended.
When are the foundation funds reported?
Annual financial statements include expenditure
of funds and all sources of income.
What is the percentage of amounts expended?
The State Supported Budget is approximately 75% of
the total budgeted funds expended.
Regarding the gift list, how do the funds come in?
All funds are accountable in the institution
records and are received by either check or wire
transfer.
Of the amounts received last year, did the System have
a good year?
Yes, as reflected in the Deloitte & Touche report
under increase in fund balances. However, the
situation is likely to reverse because of the State
budget cuts. UCCSN will receive approximately
$194.2 million this year in State general funds.
Is this a decrease?
No, it's an increase of $8.5 million over the actual
amount of general funds received in FY 1993. There
will be no increase for the second year of this
biennium.
Mr. Klaich entered the meeting.
With the Presidents having unlimited transfer authority
what is the role of the Regents in the allocation of
funds?
The Board of Regents and the System are governed
by the State Budget Act. When funds are appro-
priated to UCCSN they are appropriated to the in-
stitutions, in most cases. Some large appropria-
tions, such as salary adjustments, might be appro-
priated directly to the Board of Regents. The in-
stitutions develop a work program for those funds
-- the Operating Budget -- which is approved by
the Board of Regents. The Operating Budget indi-
cates how the institutions will spend their appro-
priations provided by the Legislature. The System
cannot exceed that legislative approved amount
without going back through the State Budget Office
and/or the Interim Finance Committee to augment
those budgets. The Legislature does not dictate
that the institutions may only spend the appropri-
ation for one specific purpose and appropriations
may not be transferred between budgets.
In terms of an institution, if they have a crisis that
needs to be addressed through transferring of funds,
does the institution notify the Vice Chancellor of
Finance?
Yes.
If the institution needs more money, can we appropriate
it from another source?
There is no other source. However, if the insti-
tution collects more money as a result of increased
student enrollment at its institution, which pro-
duces increased revenue, then through the Budget Act
the institution may augment those budgets through
the State Budget Office and/or Interim Finance Com-
mittee.
So there is no relation between the other 25% and this
budget?
They are totally separate.
If there is a crisis within the institution, they can
transfer funds within their budget but not between budg-
ets. If there is an increase in student enrollment and
the institution is receiving more money, they have to go
through the budget process to receive authority to ex-
pend that money?
That is correct.
Is that based on FTE?
Increased FTE generates increased revenues, or an-
other example would be a different mix of students,
such as more non-resident students than resident
students from what was projected.
This year there was a change in regard to FTE. What
was the discussion on allocating a lump sum rather than
basing it on FTE?
This fiscal year's budget and next year's Operating
Budget is built without recognition of any of the
funding formulas. All funding formulas were sus-
pended by the Governor and Legislature for this
current biennium. The $194 million general fund
appropriation is an appropriation not built with
regard to student/faculty ratios, support service
formulas, or any other formulas. It is a targeted
appropriation that UCCSN was given by the State
Budget Office, subsequently approved by the Legis-
lature, without regard to the formulas.
Did that lump sum get divided between the institutions?
Did the same process of going through the State Budget
Office apply? What is the Board's role in the budget?
When UCCSN built the 1993-95 budget, as UCCSN was
going through the process with the Governor, the
Governor gave UCCSN a target appropriation of $194
million and allowed UCCSN (Presidents and the Board
of Regents) to allocate the funds by the area of
need with regard to our highest priorities, with
the final authority resting with the Board of Re-
gents.
What did the Board do with the allocation of funds?
The Chancellor's Office prepared a plan with the
Council of Presidents as to how the $194 million
would be allocated. The budget was submitted to
the State Budget Office and it was included in the
Executive Budget which was presented to the Legis-
lature. The Legislature approved the budget and
appropriated the funds back to UCCSN.
Did the process change any?
The process changed a great deal from the Executive
Branch side. For the first time the Governor and
the Legislature suspended all funding formulas and
went to a targeted appropriation concept. The con-
cept is that here is all the funding the Legislature
can appropriate to higher education. UCCSN must
inform the Legislature how the appropriation is
going to be expended, without regard to student/
faculty ratios or anything of that nature.
Regents Berkley, Foley and Sparks entered the meeting.
Chairman Eardley suggested that a workshop session be sched-
uled to further discuss the budget process.
Mrs. Price thought that an orientation meeting was going to
be scheduled by Vice Chancellor Sparks to orient the Regents
on the budget process. Vice Chancellor Sparks responded
that the Chancellor has indicated that it would be appropri-
ate to have a workshop for the Board on the budget process
in conjunction with the setting of the budget parameters
for the 1995-97 biennial budget. This normally occurs
around the January or February Board of Regents' meeting.
Mrs. Price stated that she was very interested in knowing
about the other 30% of expenditures. Vice Chancellor Sparks
indicated that it is clearly detailed and reported through
the process. Mrs. Price stated that she was not under-
standing the allocation.
Mr. Klaich moved approval of the 1993-94 UCCSN Operating
Budget. Mr. Foley seconded. Motion carried.
14. Discussion on the Handbook Addition, Guidelines for Use of
Student Fees in Direct Financial Aid
In October of 1992, the Board of Regents approved that
"Beginning Fall 1993, an amount equal to 50% of all tuition
and fees increases dedicated to the State budget will be
earmarked for student financial assistance for improving
access to higher education." It is estimated that funds
for this purpose will amount of $1.76 million in 1993-94
and $3.01 million in 1994-95. Ref. D contains proposed
guidelines forwarded by the UCCSN Student Affairs Council,
which are filed in the Regents' Office.
One revision in the proposed guidelines in Chapter 18, Sec-
tion 16, is as follows:
Part 1 -- General Guidelines, Number G. The Chancellor
recommends that these funds be awarded for need-based
programs only. It is clearly stated in Board policy
that these funds are to be used to improve access.
Nevada ranks last (51st) in the nation for the amount
of State need-based student aid awarded per enrolled
student. Allocating this money to need-based programs
will assure that it is being used to improve access for
Nevadans who otherwise might not pursue a postsecondary
education.
Interim Chancellor Richardson indicated that the financial
aid program is geared to the distribution to students on a
"need-base". Mr. Klaich stated that he was very sympathetic
to those students in need. However, they would like to see
Nevada's institutions become the institution of choice for
resident students. He suggested that the financial aid
funds also be made available to "best students". Mr. Klaich
requested a report be given in the future on the Honor's
Program.
Dr. Derby stated that she was uncomfortable serving on the
Board with Nevada being the 51st state to give to needy
students, and she wanted this issue reviewed and resolved
in a timely fashion.
Interim Chancellor requested that this item be withdrawn
for further review and brought back to the Board for con-
sideration.
15. Approved Personnel Title Change, NNCC
Approved a personnel title change from Dean to Vice Presi-
dent at NNCC which would bring the titles in accord with
other System Community College Officers:
Stan Aiazzi, Vice President for Student Services
Bill Bonaudi, Vice President for Academic Affairs
Carl Diekhans, Vice President for Administrative
Services
Mrs. Gallagher moved approval of the personnel title change
from Dean to Vice President at NNCC. Mr. Foley seconded.
Motion carried.
NNCC Faculty Senate Chairman Scott Hawkins indicated that
NNCC's faculty strongly recommended approval.
16. Approved Emeritus, UNR
Approved emeritus status for Dr. Pete Perriera, Director
of the Jot Travis Student Union, Emeritus, to be effective
September 30, 1993.
Mr. Klaich moved approval to grant emeritus status to Dr.
Pete Perriera, Director of the Jot Travis Student Union
at UNR, effective September 30, 1993. Mrs. Sparks second-
ed. Motion carried.
17. Approved Amendment, UCCSN Code, Name Change
The 1993 Nev. Stats. ch. 195 (SB 314) was signed by the
Governor on June 7, 1993. The statute becomes effective
July 1, 1993. This law was enacted primarily to change the
name of the University of Nevada System to the University
and Community College System of Nevada. Section 6 of the
statute also provides that the System is comprised of such
branches and facilities as the Board of Regents deems appro-
priate. The proposed UCCSN Code amendment, a technical
amendment implementing this provision, is as follows:
1.4.3 Branches and Member Institutions. The branches of
the University of Nevada and the member institutions
of the University and Community College System of
Nevada are: University of Nevada, Reno; University
of Nevada, Las Vegas; Desert Research Institute;
Community College of Southern Nevada; Northern
Nevada Community College; Western Nevada Community
College; and Truckee Meadows Community College.
The proposed amendment was circulated to the Chancellor,
the UCCSN Presidents and the UCCSN Faculty Senate Chairs
for Section 1.3.3(a). No comments were received.
Mrs. Berkley moved approval of the amendment to the UCCSN
Code regarding the name change for the System. Mrs. Galla-
gher seconded. Motion carried.
Mr. Foley left the meeting.
18. Information Only: Amendments, Board of Regents Bylaws,
Committees
Chairman Eardley requested that General Counsel Klasic pre-
pare amendments changing the standing committee provisions
of the Board of Regents Bylaws as contained in Ref. E, filed
in the Regents' Office.
Board of Regents Bylaws amendments require two readings at
successive meetings of the Board before action can be taken.
This is the first reading of these proposed amendments.
Action will be taken at the Board's October 20-21, 1993
meeting.
Chairman Eardley explained that the Academic, Research and
Student Affairs Committee was an effort to combine 3 areas.
Dr. Hammargren, as past Chairmen of the Research Committee,
had recommended that research matters should come under the
academic area. Chairman Eardley had long felt that student
issues had not been getting proper attention through the
committee structure.
Dr. Derby stated that she felt this move would compartmen-
talize student affairs when student concerns arise in almost
every area under consideration in all the committees. Mrs.
Berkley stated she felt research was a part of academics
and should not be so named in the committee title. She
added that she felt there should be a Student Affairs Com-
mittee of the Whole. Mrs. Price felt that committees pri-
oritize Regent concerns; that the restructuring of this com-
mittee was too broad; and that there should be a separate
committee for research. Mrs. Sparks stated that she felt
there should not be a research committee, but that periodic
reports could be given to the Board by the research Vice
Presidents and that student affairs should be a separate
committee.
Mr. Klaich stated he felt there were too many committees
for the Board currently, and that all Regents want to be
involved in major issues. He agreed that research activi-
ties should be reported to the Board on a quarterly, or
other basis, and that student affairs is a function of
the whole Board, as are budget matters.
Mr. Foley returned to the meeting.
Mrs. Gallagher suggested that the Board might consider doing
away with committees since the present structure doesn't
seem to be working and because all members need to be in-
formed. Dr. Derby felt there was a function for committees.
Chairman Eardey reminded the Board members that he had
written each member when he restructured the committees
asking for input and only had heard from 4 members. He
stated that recently committee members have not been
attending and in some instances there has not been a quorum
unless a non-committee member happened to attend. He asked
that the members give him their written opinions prior to
the next meeting.
Interim Chancellor Richardson stated there are two ways to
organize a Board: 1) meet as a committee of the whole and
then create ad hoc committees for specified terms to deal
with special issues, or 2) have an agreement to the com-
mittee structure in which the members participate. He
acknowledged that the Board must resolve this issue, and
keep in mind that the way the Board structures its work is
very important to how the staff work is structured. He
related that he has discussed with the Presidents that the
System has too many committees, and too many committees
which do not function well and which take up a great deal
of time and money. Interim Chancellor Richardson stated
that the System should operate collegially, but there should
be consideration given to restructuring how the Board func-
tions and how the System functions as well. He related that
his office is reviewing systemwide committees and their
missions and assignments.
Mrs. Sparks stated the Board should maintain the Investment
Committee and Audit Committee as standing committees; Aca-
demic Affairs, Student Affairs and Budget should be held
as committees of the whole; and all others should be ad hoc
committees with specific time lines and specific assign-
ments.
Mrs. Berkley disagreed, and felt the Status of Women Com-
mittee should remain a standing committee to ensure certain
activities take place on the Campuses. She stated that
creating the committee makes an important statement for
the Board. She suggested changing the name of the Legis-
lative Liaison Committee to possibly Government Affairs,
and stressed that existing on an ad hoc basis only during
the legislative session would not provide the focus needed
by the System.
Dr. Derby related she had attended a session at AGB which
felt that committees provided a very positive structure
which enabled Board members to become engaged in certain
areas where they might not be able to do so in a formal,
public Board meeting with so many issues to be considered
within a limited time frame. She stated she did not feel
the Board should just be limited to committees concerned
with financial areas.
Mrs. Sparks stated she felt the Board had acknowledged a
need on the Campuses and within the System for Status of
Women issues, and now that the Campuses have strong commit-
tees, the Board should now limit its involvement in this
area for an oversight position, with reports to the Board,
perhaps annually. Dr. Derby stated that at the last com-
mittee meeting, the Campus Chairmen were present and had
supported a strong Board committee.
Mrs. Gallagher stated that she feels the committee structure
is the best way to go because it gives a small group an op-
portunity to develop expertise in a particular area. She
stated that this Board does not do that, but the Board sits
through the committee meeting, has a report, and immediately
votes on the report, then sits through another committee and
repeats the process thereby defeating the committee purpose.
Mrs. Gallagher felt the Board should consider hearing more
information items, or hold workshops, on the positive pro-
grams going on within the System. She argued for allowing
the committees to work outside the Board meetings and bring
their reports to the Board.
Mr. Klaich agreed with the Chancellor's comments, and held
the position that the time of the full Board meeting should
be used to better advantage. He explained that the Status
of Women Committee, while focused on a narrow segment, has
been effective by meeting outside the Board meetings. He
stated that the Board needs to recognize that most of the
work has to be done on the Campuses.
Mrs. Sparks stated that she felt the financial matters
could be handled more easily in small committees, whereas
the obligation of the whole Board is to academics and the
institutions.
President Crowley stated he felt the discussion has been
very good because it has pointed up the strengths and weak-
nesses of the committee structure for this Board. He added
that he felt the plethora of committees has contributed to
the sense of divisiveness on the Board, and has produced at
times a very ample measure of uncertainty as to what the
Board or some of the members of the Board believe is the
proper role of its Administrators and the proper role of
the Board. It has seemed to Administrators that some of
the things the committees have been doing are the reasons
that Presidents are hired. It is part of the ancient debate
of the line that is drawn between policy and administration,
and in recent years that line has been crossed a lot more
than previously was the case. This plethora of committees
has led to quite an abundant increase of the workload on
the Campuses, and the Chancellor's Office. President
Crowley added that a structure should be built for the
Board, including committees deemed appropriate by the Board,
that will not exacerbate this very serious situation, but
will contribute to building a greater harmony within the
System.
Mrs. Price questioned how a Board member would know whether
there was a vacuum in Administration if there weren't com-
mittees to delve into specific areas. President Crowley
stated there is no ready answer; however, the Board should
have an overall sense of how the Presidents are doing; that
the Board either wants them to administer their institutions
or the Board wants to help them to administer those insti-
tutions. The Board can determine how well an Administration
is doing by the information it receives; however, the term
floating around the System now is that the Board is "micro-
managing" the System. It is a question of how much the
Board trusts its Administrators.
Dr. Derby stated she does understand that committees neces-
sarily do create more work for System staff and Campuses,
but so does the Board. She argued for the committee system,
the work that is required, and the involvement of all seg-
ments of the System.
President Maxson agreed with President Crowley's remarks,
and urged the Regents to consider the time factor when
scheduling meetings. If committees are to meet other than
during regular Board meeting days, he urged that appropriate
Vice Presidents or others be authorized to represent the
institution, thus freeing the time of the President. The
President would attend if the Chairman or Chancellor so
indicated.
Mr. Graves felt there should be committees, carefully cho-
sen, to assist in the deliberations of the Board, and fur-
ther felt that some of the committees have made great
strides and brought forth programs, changes, issues which
bring great pride to the System.
President Gwaltney suggested that a new Chancellor would be
instrumental in helping bring the System structure together.
He stated the question for the Board is not as much how it
is structured, rather a question of how the Board centers
the authority of the System with the Chancellor. Authority
can be carved off and given to committees, or authority can
rest with the Chancellor. Committees can be very valuable
to a Board as informational tools.
President Remington agreed with President Crowley and added
that a critical issue is how intrusive the committees be-
come on the Campuses, and whether or not the "grand looping"
occurs as a result of that situation. He suggesed that
each institution has formal channels: a Faculty Senate
Chairman who has the confidence and trust of the faculty;
a Student Government President who has the confidence and
trust of the students; and the President. The Board might
make a charge to the President and let that individual work
with appropriate individuals on the Campus, and then be
judged in terms of progress made in that regard.
Mrs. Berkley stated there have been discussions with Inter-
im Chancellor Richardson concerning the role of the Board
in Presidential evaluations. She indicated the Board in
the past few years has taken the responsibility to fill
what it has perceived as voids in certain areas in which
perhaps they should not have been involved. She suggested
that this may resolve itself when a new Chancellor comes
on board, and felt the Board should not make any determina-
tions until that person is in place.
President Meacham urged the Board to be cognizant of the
time and expense of requiring Campus people to attend all
committee meetings inasmuch as the System is in such a
budget crunch.
President Calabro stated the structure of the Board may not
be as important as having everyone willing to make it work.
He pointed out the System does have a good flow stream to
follow for efficiency: academics, finances, students.
Chairman Eardley stated he would work closely with Interim
Chancellor Richardson in reviewing this discussion and re-
port back to the Board at the next meeting.
19. Information Only: Amendments, Board of Regents Bylaws,
Chancellor's Position
In accordance with discussions held at previous Board of
Regents' meetings, proposed amendments pertaining to the
Chancellor's job description are contained in Ref. F, filed
in the Regents' Office.
Board of Regents Bylaws amendments require two readings at
successive meetings of the Board before action can be taken.
This is the first reading of these proposed amendments.
Action will be taken at the Board's October 20-21, 1993
meeting.
Mr. Doug Burris, Director of Community College Affairs,
reviewed the proposed bylaw amendments.
Mrs. Price asked that a time-line be added to the evalua-
tion of the Presidents. It was pointed out that a time-
line is included in the procedures contained in the Hand-
book. In a question concerning preparation of the agenda,
Chairman Eardley explained that the Chancellor prepared the
agenda in consultation with the Chairman of the Board, and
the Chairman does approve the final agenda. Mrs. Price
stated that preparing the agenda is a crucial item. In (i)
Mrs. Price questioned the role of the Chancellor for audits
of the System. Interim Chancellor Richardson stated that
providing for internal audits is the management of the in-
ternal audit staff, and for independent auditors, the role
would be to recommend an independent auditing firm.
Mrs. Gallagher stated she has always felt the auditing func-
tion should be accountable to the Board and should serve
at the pleasure of the Board, not the Chancellor, although
they are located in the Chancellor's Office and the Chancel-
lor would manage their work. Chairman Eardley stated there
is a Vice Chancellor who is head of audit; but independent
auditors report to the Board's Audit Committee.
Mrs. Sparks stated that the System Office was only involved
with sending out the RFP which called for external auditors,
and the Audit Committee spent two full days interviewing the
various firms. The RFP was developed by the Audit Committee
and the staff. The Board made the selection of the external
auditor. This procedure had not been the case in previous
selections.
Mr. Graves concurred with Mrs. Gallagher, but stated he
interpreted the bylaw proposal a little differently. He
read the change as the Chancellor being responsible for the
audits of the member institutions in concert with the Board,
and that the Board would be responsible for the audit of
the Chancellor's Office. Mr. Graves also felt the auditors
should report to the Chancellor and the Board.
Mrs. Gallagher stated her main concern was with the appoint-
ment of the outside auditors. Mrs. Sparks stated that the
Chancellor has nothing to do with the selection of the ex-
ternal auditors, and they do report directly to the Board.
The internal auditors, comprised of a Regents' committee
and staff, audit the institutions. The external auditors
audit the internal auditors, which provides a check and
balance.
Mrs. Gallagher asked that the wording of item (i) be changed
to reflect current practices.
Mrs. Price stated that the reporting lines of the organi-
zation chart should be with a dotted line to the CEO and
a solid line to the Board. She suggested that (i) be re-
moved from the position duties.
Mr. Klaich felt a Chancellor could not be responsibile for
the administration of the entire UCCSN, and would in fact
be coordinating the administration of the System. He re-
lated that the word "coordination" within the System ap-
pears to mean "weak", when in actuality it does not.
Mr. Klaich also felt the Chancellor should play a much more
active role in Presidential evaluations (l), but felt it
was still a role of the Board. Dr. Derby agreed, and sug-
gested that item be written to include the Board's role.
She expressed her agreement with the evaluation process
where important constituencies are invited to have input.
Dr. Derby stated she felt other states had far more refer-
ences to the Board and that the authority of the Chancellor
is derived from the Board, and the responsibilities of the
Chancellor derive from the delegation by the Board. She
asked that a clearer statement be made. Suggestions were:
"the Chancellor works closely and effectively with the
Board"; "takes direction from the Board"; "responsibility
of the Chancellor is delegated by the Board"; "governing
authority of the Board".
(k) Other State documents were more specific in their
language in terms of staff: the Chancellor was expected
to select, evaluate and remove staff in the Board's Office
according to certain evaluation procedures; is responsible
for the direction of the staff following the recommendations
of the Board, etc. Dr. Derby wondered whether with not be-
ing more specific about expectations of the position there
would be a correlation of the dysfunction within the Sys-
tem.
Mr. Foley stated that the statement, "The Chancellor may
delegate any of the duties of the Office unless expressly
prohibited by Board policy." should be removed from the
job description inasmuch as the Chancellor must be held
responsible for the System.
Mr. Graves stated he felt the Chancellor was responsible
for the administration of the sytem with the President's
reporting to the Chancellor, and felt the job description
did describe the situation with the Chancellor being
responsible to the Board. With regard to evaluating the
Presidents, Mr. Graves felt that the Chancellor should
have the background to do the evaluations and report and
recommend to the Board.
Mrs. Gallagher stated she felt the agendas should be pre-
pared in collaboration with the Chairman, and, in the case
of committees, with the Chairman of the specific committee.
She added that the position should be structured so that
the Chancellor, the Presidents and the System could "survive
a Board of Regents". (e) She felt that official communi-
cations should be made in concert with the Chairman of the
Board. (f) Remove the word "policies" because that is the
prerogative of the Board. (k) The Secretary of the Board
should report to the Board and be the right hand of the
Chairman. (l) The Board of Regents should have input into
the evaluation of the Presidents, but the Chancellor should
do the general evaluation.
Mrs. Berkley felt the Secretary should report to the Chan-
cellor, with the Chancellor doing the evaluation. She felt
at the present time there was no reporting or evaluation
structure for that position.
Dr. Derby felt (l) should be "appointing and evaluating
authority". She felt the evaluation process is critical
to the System.
Mrs. Sparks and Mr. Foley agreed that the term "coordina-
tion" should be eliminated from the job description.
Interim Chancellor Richardson stated that he had not de-
cided whether to become a candidate for this position and,
in order to minimize his involvement, had deliberately
delegated the responsibility for working with the Board
to the staff. He reminded the Board that the staff had
only reflected what the Board had stated at a prior meet-
ing and only had modified existing bylaws. It needs to be
recognized that there is additional language in the Hand-
book beyond the bylaws which deals with the responsibility
of the Chancellor, the Presidents, the delegation of author-
ity, etc., and that not all is reflected in the bylaws,
nor should it be. He continued that the Board must be sat-
isfied with the job description before a search commences.
He added that the staff would prepare another draft for
consideration based on these remarks.
General Counsel Klasic cautioned that some of the remarks
made are diametrically opposed to each other, which will
be difficult for the staff, and wanted the Board to under-
stand that choices will have to be made by the staff for
the next draft.
Dr. Hammargren entered the meeting.
20. Discussion on Health Care for UCCSN Employees
The UCCSN Faculty Senate Chairs presented a proposal for
action on health care for System employees, Ref. I, filed
in the Regents' Office.
UNLV Faculty Senate Chairman John Swetnam distributed
additional information which is filed in the Regents' Of-
fice. He explained what is being proposed by the State
Committee on Benefits and the effect it will have on State
employees, especially the System employees. The Faculty
Senate Chairs and Classified Council Chairs requested the
Board to request that the State of Nevada Board of Examin-
ers and the Interim Finance Committee consider a $2 million
annual emergency appropriation to the State health care
funds, including both the self-funded plans and health
maintenance organizations.
Interim Chancellor Richardson indicated earlier in the meet-
ing that he has appointed experts within the System to serve
on an ad hoc Committee on Health Benefits.
Mr. Graves stated the Board was very sympathetic with this
problem, but emphasized that health care is a national
problem in the public sector and the private sector.
Vice Chancellor Sparks prepared a statement indicating that
NRS 287.044 restricts the amount of State appropriated funds
for the payment of employee group health insurance premiums
to the "amount specified by law". That amount is currently
set at $213.75 per employee for FY 1994 and $226.50 for FY
1995. In addition, NRS 298.044 states, "if an Officer or
employee chooses to cover his dependents, when this option
is made available by the committee on benefits, he must
pay the difference between the amount of the premium or
contribution for the coverage for himself and his depend-
ents and the amount paid by the State." Therefore, the
emergency allocation that has been suggested may not be
used to pay for group insurance premiums for dependent
coverage.
Mr. Graves stated he did not feel comfortable approaching
the Interim Finance Committee because of the information
provided by Vice Chancellor Sparks.
Mrs. Berkley disagreed and felt the Board should approach
the Interim Finance Committee for the allocation of $2
million per year for two years for the State's health plan.
She stated that this issue is a legislative issue, and felt
the Legislative Liaison Committee should be addressing this
specific issue.
Mrs. Gallagher stated that many health care issues will be
addressed nationwide and there may be a great shift from
health care as it is known now to a limited and greatly
changed health care system.
Mr. Klaich agreed with Mr. Graves' comments. The Board of
Regents does support its employees: however, by making such
a request it is producing illusion for the employees' be-
cause it cannot be attained.
Dr. Hammargren stated that he requested this item be placed
on the supplemental agenda and supports the request by
Faculty Senate Chairs and Classified Council Chairs. He
requested that he be informed when the ad hoc Committee on
Health Benefits would be meeting. Mr. Graves suggested
that the ad hoc Committee on Health Benefits forward its
recommendations to the Board for consideration.
Ms. Candace Kant, NFA President, informed the Board that
employees have been surveyed and NFA endorses the request
posed by the Faculty Senate and Classified Council Chairs.
Interim Chancellor Richardson suggested that the Board look
at this crisis issue in terms of other System priorities.
If the Board were given $4 million, would they allocate
this money for employee health insurance? He felt that
the request is illegal and in vain. The proper request
is to ask the Governor to call for a special session of
the Legislature to address this issue and have the Legis-
lature vote on the issue. He did not want the System to
appear foolish if they were to approach the Interim Finance
Committee in this manner.
Dr. Derby stated she agreed with all that was being stated;
however, she leaned more towards sending a message to the
employees. She does care about the employees, but indicat-
ed that this was not her highest priority. It is a very
difficult issue.
Mr. Graves moved approval, in lieu of the facts presented,
to direct the ad hoc Committee on Health Benefits to submit
recommendations to the Board and defer this issue until the
October Board of Regents' meeting for action. Mrs. Gal-
lagher seconded.
UNR Faculty Senate Chairman Phil Boardman stated that this
issue is more pressing than indicated. He suggested that
the Board of Regents unanimously approach the Governor with
a proposal on this issue. It was his understanding that
the ad hoc Committee on Health Benefits will be addressing
a long-range strategy for the System, and will not be able
to solve the immediate problem within the next three weeks.
Dr. Hammargren moved approval to ask the Governor to evalu-
ate this issue and suggest to the Governor that he request
the Interim Finance Committee to consider the Faculty Senate
and Classified Council Chairs' recommendations, and request
the Governor to respond back to the Board of Regents. Mo-
tion failed due to lack of a second.
President Gwaltney supported the concept to challenge the
various bodies and suggested that they be invited to join
UCCSN in finding a solution to this problem.
Mr. Graves withdrew the original motion. Mrs. Gallagher
withdrew the second.
After a discussion on what was to be included in the resolu-
tion, it was suggested that a strong letter be forwarded to
the Governor along with the resolution.
Mr. Klaich moved approval of the Board of Regents to author-
ize the Chairman of the Board and the Chancellor to draft
and forward a letter to the Governor and appropriate legis-
lative leadership a resolution expressing our deep concern
regarding the underfunding of health care in the State and
the serious negative impact on the health and security of
UCCSN employees. The Board of Regents urges them to do
everything in their power to find both long and short term
solutions to this crisis including the infusion of funds
from Interim Finance Committee to the State insurance fund
if possible. Mrs. Gallagher seconded. Motion carried.
President Gwaltney introduced Mrs. Marsha Lindeken, Assistant to
the President.
The open meeting recessed at 11:55 P.M. and reconved at 1:00
P.M. Thursday, September 10, 1993, with all Regents present
except Regents Foley, Hammargren and Whitley.
21. Information: Qualifications, Position of Chancellor
In accordance with discussions held at previous Board of
Regents' meetings, Ref. G, filed in the Regents' Office,
contained a proposed set of qualifications for the position
of Chancellor. A proposed position announcement was also
included.
Mr. Doug Burris, Director of Community College Affairs, re-
viewed the proposed 17 qualifications, and indicated that
there are 3 items under educational credentials. Staff
preference is for item 15, although the choice has been
left to the Board. He explained that this document is for
internal use, although occasionally a candidate will re-
quest a detailed job description of qualifications. It is
also a very important document for use during review of
applications and in the interview process.
Dr. Derby asked that something similar to "demonstrated
ability to work with the governing Board in an effective
way" be added. (3)
Discussion ensued on the educational credentials. Staff
recommendation of item 15 was explained as 1) allowing a
larger applicant pool; 2) the Presidents had earlier re-
lated that a Ph. D. was not necessary, that the competence,
experience and respect was much more important; and, 3)
few institutions today list "earned doctorate" in their
advertisements. It was explained that a "terminal degree"
means the highest degree available in the person's disci-
pline; i. e., Master of Fine Arts, J. D. in law, etc. It
was pointed out that under affirmative action, if the posi-
tion announcement is limiting in the area of a degree, and
during the search someone without the earned degree becomes
available, then that person could not be considered.
22. Approved Handbook Change, Regents' Professor
The current policy for Regents' Professor calls for the
costs to be borne by the Board of Regents. The following
Handbook change, Title 4, Chapter 3, Section 12, Presiden-
tial Transition, is requested:
6. To the extent practicable, and where not inconsistent
with the individual's assigned teaching duties at the
institution, the costs and salary and fringe benefits
of Regents' Professorships shall be borne by the UCCSN
institutions. The costs and salary and fringe benefits
for the Chancellor's Regents' Professor shall be borne
by the Board of Regents.
After reviewing the potential fiscal liability for this
policy, the Chancellor's Office and the Presidents recom-
mend that the costs for the Presidents' Regents Professor
should be borne by the Campuses and that the costs of the
Chancellor's Regents' Professor should be borne by the
Board of Regents. Vice Chancellor Sparks reported that
currently the potential fiscal liability for the Board of
Regents would be excess of $1 million for Chancellor and
the Presidents.
Mr. Klaich suggested that the entire policy be disbanded.
However, Chairman Eardley reminded the Board that this
policy was recommended by a committee, Chaired by President
Crowley, and the Board of Regents approved the policy.
President Crowley stated that the committee reviewed the
leave policy and the job separation policy for Presidents.
The committee originally viewed this policy as the insti-
tution's responsibility. The current policy contends with
the President's leave at separation and a salary step down
if the President should return to the classroom, which ten-
ure does not address.
Mrs. Price indicated that while in attendance at the Associ-
ation of Governing Board's meeting, she heard that this type
of policy gives job security to the President and Chancellor
and the policy should be discontinued.
President Crowley stated he was offended by Mrs. Price's
remarks. It usually is not a bad circumstance to have a
former President on the Campus, and that at times it is
much more difficult to have a Dean step down without tenure.
This is a very important policy for the Board of Regents to
maintain.
Mrs. Gallagher moved approval of the Handbook change re-
garding Regents' Professor. Mr. Graves seconded. Motion
carried.
23. Approved Lease, Sam Boyd Silver Bowl, UNLV
Approved a 5-year lease between Las Vegas Major League
Sports, Inc. (a member of the Canadian Football League)
and the Sam Boyd Silver Bowl at UNLV.
The season will begin in June 1994 and run through November.
The lease would be a 5-year agreement with a 5-year option.
The Canadian Football League is expanding into this country
with expectations of 9 teams in the United States by 1996.
One of these 9 teams is to be located in Las Vegas and has
the potential to net nearly $1 million per year.
The owner, Nick Mileti, has a very strong background in
major league sports having owned the Cleveland Indians
and the Clevelend Cavaliers. His financial involvement
is already guaranteed at $6 million dollars which will
help ensure viability of the franchise for at least the
next 3 years.
This lease arrangement will provide UNLV the potential which
this major tenant will offer to continue its goal of main-
taining self-sustaining facilities.
President Maxson introduced Mr. Pat Christenson, Director
of Thomas Mack Center and Sam Boyd Silver Bowl.
Mrs. Price stated that she had a problem voting on this
matter without seeing the lease agreement. General Counsel
Klasic furnished her the lease agreement.
Regents Gallagher and Price left the meeting.
The item is continued after item 24.
24. Approved the Construction of a Building, UNLV
Granted permission to build a satellite food service build-
ing, approximately 1200 sq. ft., with a construction cost of
$140,000 on the UNLV Campus. The funds will be provided by
the Moyer Student Union reserves, such as student fees,
bookstore revenue, and food service revenue.
This building will also require approval by the Interim
Finance Committee and the State Public Works Board.
This facility, requested by students and faculty, will pro-
vide a fast food area across Campus from the Student Union.
Mrs. Sparks moved approval of the construction of a satel-
lite food service building on the UNLV Campus. Mrs. Berkley
seconded. Motion carried.
ASTM President Don Isler introduced David Mosley, ASTM Vice Pres-
ident, and Kathleen Chapman, outstanding student.
Regents Gallagher and Price returned to the meeting.
23. Approved Lease, Sam Boyd Silver Bowl, UNLV (continued)
Mr. Klaich moved approval of the 5-year lease between Las
Vegas Major League Sports, Inc. and UNLV. Mrs. Sparks
seconded.
Mr. Klaich stated that as a Regent, he is not obligated to
read lease agreements and will resist the movement of mem-
bers of the Board having to review every lease agreement.
Mr. Graves and Mrs. Price directed the Chancellor to ensure
that Board members receive lease and contract agreements
prior to consideration at a Board meeting.
Upon questioning, Mr. Christenson clarified that a $50,000
up-front deposit would be made by Las Vegas Major League
Sports, Inc. and that regular payment would be made after
each game to the University.
Mrs. Sparks agreed with Mr. Klaich and added that staff is
hired to review thse documents prior to the Board's ap-
proval. She stated that copies could be made available
upon request by a Regent, but it is not the Board's obli-
gation to micro-manage and tell staff how to perform their
duties.
Interim Chancellor Richardson cautioned the Board members
by stating that he signs 5-15 contracts per day each day
of the week on behalf of the Board of Regents. This par-
ticular item was placed on the agenda because he felt the
Board of Regents should be made aware of the proposal. He
stated that if the Board is uncomfortable with its staff's
recommendation, then they should hire other staff.
Mrs. Price agreed with Mrs. Sparks; however, if a lease
agreement or contract comes before the Board of Regents,
she felt that the members should review the documentation
prior to approval. Dr. Derby felt that it was not wrong
for members of the Board to receive more information.
Interim Chancellor Richardson stated his frustration in
that the Board of Regents and the Chancellor and staff
needs to know the ground rules in which to work.
There was further discussion on whether Regents should
review all contracts and it was determined that if an
item appears on the agenda concerning contracts or leases
Board members should call staff if they wish to review
documentation.
Motion carried. Mrs. Price abstained.
25. Approved Lease, CCSN
Approved CCSN to enter into a 5-year lease, with an option
for renewal, with the Bureau of Land Management, for 80
acres located in Laughlin, for the purpose of developing
a Community College.
Mount Diablo Meridian
T. 32 S. R. 66E, Sec. 15; N1/2 NW1/4
The rental fee per annum is $20. This lease falls under
the Recreation and Public Purposes Act of June 14, 1926 as
amended. $25,920 off-site mitigation fee is to be paid to
BLC by CCSN before surface disturbance of site to be de-
posited into the Desert Tortoise Habitat Conservation Fund
administered by Clark County.
Mr. Graves moved approval of the 5-year lease between the
Bureau of Land Management and CCSN for the purpose of de-
veloping a Community College in Laughlin. Mrs. Gallagher
seconded.
President Meacham stated that this project is included in
the Physical Master Plan for CCSN. CCSN is currently leas-
ing space in Laughlin from the local school district and
this property site is the last possible land that CCSN can
obtain from BLM.
Mrs. Price requested an agenda item to address the extended
Campus policy. Chairman Eardley stated that it was previ-
ously requested that the "Tadlock Report" be sent to each
member of the Board for its review. Interim Chancellor
Richardson indicated that this issue is still under review
by the Council of Presidents.
Motion carried.
26. Approved Handbook Change, Retirement Benefits for Resident
Physicians, UNR
Approved Handbook changes, Title 4, Chapter 7, Section 4,
Benefits - Resident Physicians, as contained in Ref. H,
filed in the Regents' Office.
The School of Medicine would like to enhance the benefits
package for its resident physicians by allowing them to
participate in a retirement plan through either TIAA/CREF
or VALIC.
Interim Chancellor Richardson recommended approval, except
for Section 4.3, which provides for payment of dependents
health insurance. This item would require further study
in light of current UCCSN health care benefit problems and
discussions.
President Crowley indicated that it would be difficult to
hire resident physicians without this benefit.
Mrs. Gallagher moved approval of the Handbook change re-
garding retirement benefits for resident physicians at
UNR with the exception of Section 4.3 which is to be re-
viewed and brought back to the Board in October. Dr. Derby
seconded. Motion carried.
27. Report and Recommendations of the Academic, Research and
Student Affairs Committee
A report and recommendations of the Academic Research
and Student Affairs Committee meeting, held September 9,
1993, were made by Regent Dorothy Gallagher, Chairman.
(1) Approved Handbook changes, Title 4, Chapter 14, Sec-
tion 9, Guidelines for Educational Telecommunications,
as contained in Ref. ARS-1a, with the exception of
item 7 (a), (b), and (c). The reference material is
filed in the Regents' Office.
Interim Chancellor Richardson informed the Committee
that item 7 of the proposed Handbook changes has be-
come a controversial issue and requested that the
Chancellor's staff conduct further review during the
academic year and report back to the Committee on the
impact of Campus program level for educational tele-
communications. A lengthy discussed ensued.
With regard to item 8 of the proposed Handbook changes,
Chairman Gallagher emphatically stated that she did
not support the division line throughout the State of
Nevada between the north and south for the 2 Univer-
sities. She felt that with cooperative agreements be-
tween UNR and UNLV, the two Universities would be able
to serve the entire State. She requested that the
item be reviewed and deleted from the proposed lan-
guage.
Interim Chancellor Richardson explained that the pro-
posed Handbook change allows for cooperative agreements
between all the institutions in the introductory para-
graph, which reads "...prior consultation and agreement
must be obtained for a Campus to offer a course out-
side of its service area". He further explained that
the geographical service area demarcation permits the
institutions to offer courses without consulting with
the other institutions. Interim Chancellor Richardson
informed the Committee that the Handbook policy has
been updated by a Systemwide Committee to reflect the
use of the UCCSN Interactive Video Network for in-
structional purposes and the Academic Affairs Council
has agreed with this policy.
Interim Chancellor Richardson indicated that there is
not a Board of Regents' policy that addresses continu-
ing education throughout the State, and felt that this
proposed policy could be utilized in developing a
policy. Chairman Gallagher requested that continuing
education policy be addressed at a later date.
Mrs. Sparks questioned at what level the consultation
and agreement would be reached and President Maxson
explained the Dean of Continuing Education would con-
sult with the Vice President of Academic Affairs and
if an agreement could not be reached at that level,
then it would be brought before the President. He
stressed that every effort would be made to reach an
agreement at the Dean and Vice President level.
President Crowley agreed with President Maxson and
stated that cooperative agreements have been made
between institutions in the past and have never
reached the President's level for resolution. Pres-
ident Maxson added that a UNR course has never been
turned down by UNLV and vice versa.
Upon questioning, Interim Chancellor Richardson ex-
plained that the System Administration Office should
not be involved in the consultation and agreement
between institutions. The institutions conduct sur-
veys of clientele in different disciplines and base
their services on the income brought forth by the
clientele. Interim Chancellor Richardson stated that
the proposed recommendations related to the operation
and support of the Network recommend that the insti-
tutions submit reports to the System Administration
Office which will provide a summary report to the Board
of Regents. He stated that the institutions will iden-
tify the shortfalls and would be reflected in the budg-
et process that is developed at the institution level.
The Community College Presidents were questioned
whether they were in agreement with item 8, and they
all responded that they supported the demarcation of
the service areas and the language that provides con-
sultation and agreement.
In addition, the Committee recommended approval and
that the item be forwarded to the Board of Regents
for consideration to accept the recommendations re-
lated to the operation and support of the Network,
as contained in Ref. ARS-1b, with Option B to include
the language "By the December 1993 Board of Regents'
meeting, the institution offering courses shall report
on the charge structure and request approval of fees
to be charged for Spring 1994 and the Academic Year
1994-95". The reference material is filed in the
Regents' Office.
The recommendations have been developed to address
scheduling of facilities and funding alternatives.
Interim Chancellor Richardson explained the proposed
recommendations and pointed out that this proposal
is not a policy for the Board of Regents' Handbook,
but issues that have been developed to address sched-
uling of facilities, faculty development, UCCSN sum-
mary report, accreditation, and funding alternatives.
In discussing the schedule, Mrs. Price questioned the
use by State government/commercial. Interim Chancellor
Richardson explained that commercial use is scheduled
for those businesses that have specific certification
requirements and time would be sold to those businesses
for teaching the courses. A short-term contract may
be issued for such practices.
Dr. Derby questioned why the Community Colleges were
not addressed under "Faculty Development", and Interim
Chancellor Richardson explained that UNR is developing
expertise in instructing users of equipment throughout
the System. It is expected that the Community Colleges
will develop expertise in this area and will offer
faculty development in the future.
Interim Chancellor Richardson explained that the oper-
ation of the Interactive Video Network may become part
of the State-supported UCCSN base budget; however, in
the interim he requested the Committee to choose one
of the options presented in the reference material.
He strongly recommended Option B which states that
students enrolling in a distance education course pay
the same credit hour fees as established for on-campus
courses, plus a variable delivery charge, depending
upon the cost of the program. The variable delivery
charge is based on the supply and demand for the course
and the institutions will have to balance the charges.
NNCC Dean of Instruction Bill Bonaudi stated that NNCC
has made a very rough estimate that it will cost $200
per course, and that WNCC has indicated that it would
probably cost their institution approxiately $200-300
per course due to rental space. UNR Vice President
Bob Hoover stated that the delivery cost should in-
clude $11-12 per hour for a technician to work the
equipment. President Maxson stated that he was op-
posed to Option A which would tax all students for a
few users. He felt that the fee would be less expen-
sive in time from savings on instructors traveling to
the rural areas. The cost should decrease as the use
increases.
Mrs. Price did not feel that students should be charged
because the student does not have personal contact with
the instructor. It is not the problem of the student
that the equipment costs money to operate and maintain.
She requested actual amounts be presented prior to the
vote by the Board.
Chairman Gallagher stated that it was her impression
that this would be an actual savings to students and
that they are amenable to a fee.
President Crowley stated that it would be difficult to
impose these additional costs on the institutions. He
indicated that there are not many telecommunications
courses because the Departments cannot incur the costs.
Dr. Derby agreed that it is difficult to vote on this
issue without any indication of what the delivery costs
are going to be for the students. Chairman Gallagher
agreed, but encouraged the Committee to allow the in-
stitutions to forge ahead until actual figures are
presented.
WNCC Vice President Lorrie Peterson stated that Nevada
does not have a track record because this is a very
new technology. She explained how WNCC arrived at the
$200-300 per course figure. She did not feel that the
rural students should be the only ones subject to an
increase in fee, but that the costs be absorbed by the
entire student body.
Mrs. Berkley stated that her constituents would be
those subject to absorb the costs for rural students
and she was not prepared to make that decision at
this time.
Interim Chancellor Richardson suggested to the Com-
mittee that it accept his recommendation to include
Option B and that student fees be addressed in more
detail by the Council of Presidents and the Academic
Affairs Council.
Upon questioning, Interim Chancellor Richardson ex-
plained that if a telecommunications course is a new
program for the institution, then it will come before
the Committee for consideration; otherwise, if it is
a current course it will not come before the Committee.
Dr. Eardley questioned whether the Capital Improvement
Fee is assessed for off-campus courses, and UNLV Dean
of Continuing Education Paul Aizley responded that per
credit fees are the same as on-campus courses; however,
the distribution of the fee for off-campus courses
remains with continuing education as a self-funded
program. Chairman Gallagher suggested that the Capital
Improvement Fee collected from students could be ap-
plied to expanding the telecommunications equipment.
Vice Chancellor Ron Sparks informed the Committee that
Presidents have the authority to approve up to $50 for
special course fees, above $50 must come before the
Board of Regents for approval.
Mr. Graves suggested that language be included to limit
the amount charged the student for the delivery fee.
This is a very important program that needs to be
implemented immediately.
Mr. Klaich stated that the receiving and delivery in-
stitutions must agree on the fees prior to the delivery
of the course.
President Calabro suggested that the fee be treated as
a special course fee and if the fee is determined to
be over $50 then it will come before the Board of
Regents for consideration.
Discussion continued on the reporting of fees since
this Fall is the very first semester for offering
telecommunication courses throughout the System.
Mrs. Gallagher moved to adopt the Handbook changes
regarding Guidelines for Education Telecommunications,
with the exception of item 7, and the recommendations
related to the operation and support of the Network
with Option B to include the language "By the December
1993 Board of Regents' meeting, the institution offer-
ing courses shall report on the charge structure and
request approval of fees to be charged for Spring 1994
and the Academic Year 1994-95." Mrs. Sparks seconded.
Motion carried. Mrs. Price voted no.
(2) Approved a name change for the Geriatric and Gerontol-
ogy Center to the Graham and Jean Sanford Center for
Aging at UNR, to commemorate a gift by Jean Sanford.
Ref. ARS-2 is filed in the Regents' Office.
The Interdisciplinary Center, which currently is sup-
ported through State funds, grants and gifts, will
expand activities as a result of the Sanford Gerontol-
ogy Endowment. This will include additional personnel,
research "seed" money, scholarships, and a speakers'
series. No additional State funds are requested.
Mrs. Price commended the program; however, she was con-
cerned with the process in which the gift was given
to the University. President Crowley explained that
the bequest from the Sanford family was bestowed to
the UNR Foundation, which in turn gifted the funds to
the University for this restricted purpose. Upon fur-
ther questioning, President Crowley explained that
there is no assessment in handling the funds, such as
there would be when handling indirect costs from fed-
eral agencies.
Mrs. Gallagher moved approval of the name change to
the Graham and Jean Sanford Center for Aging at UNR.
Mr. Klaich seconded. Motion carried.
(3) Approved a change in the title for the position of Vice
Chancellor for Academic Affairs to Vice Chancellor for
Academic and Student Affairs.
At present there is no focal point within the Chan-
cellor's Office for reviewing matters directly affect-
ing student life, for conducting research on issues
which directly bear on students, and for coordinating
the Office's activities with Campus Vice Presidents
for Student Affairs, the Student Affairs Council, and
student government representatives. Somewhat by de-
fault, responsibility for dealing with student-related
issues at the System level has gravitated toward aca-
demic affairs staff in the Chancellor's office. How-
ever, there has not been a clear designation by either
the Board of Regents or the Chancellor that academic
affairs staff are expected to assume such a responsi-
bility.
Board staff and the Vice Presidents for Student Affairs
are of the view that the Board of Regents will need to
devote greater attention to student-related issues in
the future given the changing nature of American high-
er education and the clientele it serves. For example,
such issues as student financial aid, compliance with
the American Disabilities Act, programs for minority
students, the changing nature of the composition of
the student body, and enrollment management are all
likely to play a more significant role in the insti-
tutions' fulfillment of their educational mission.
The proposed title change has been thoroughly discussed
with the members of the Student Affairs Council and it
is endorsed by the members of that body.
There is no additional cost associated with the pro-
posed change.
Mrs. Sparks questioned whether "Research" should be
included in the title for the Vice Chancellor. Chair-
man Gallagher stated that the 3 Councils (Academic
Affairs Council, Student Affairs Council, and Research
Affairs Council) will now report to this Committee.
Interim Chancellor Richardson added that the 3 Councils
do inter-relate and report through the Vice Chancellor
and to one Board of Regents' Committee. Research is
an academic matter and is encompassed within the title
change.
Mrs. Gallagher moved approval of the title change to
Vice Chancellor for Academic and Student Affairs.
Mr. Klaich seconded. Motion carried.
(4) New Business - Chairman Gallagher stated that she has
met with the Academic Affairs Council, the Research
Affairs Council, and the Student Affairs Council and
has requested that each Council discuss its parameters
with the Committee at a future meeting. Each Council
will address issues of concern at each Committee
meeting.
Mrs. Gallagher left the meeting.
28. Report and Recommendations of the Audit Committee
A report and recommendations of the Audit Committee meetings
held August 16 and September 2, 1993 were made by Regent
Nancy Price, Chairman.
August 16, 1993
(1) Chairman Price requested an orientation session for
the Audit Committee members. The theme of the ori-
entation was "Where money and responsibility come
from". Chairman Price indicated that this meeting
will be video taped and later edited and made avail-
able for any new member to the Audit Committee to
review. Chairman Price read the following excerpt
from the Board of Regents' Bylaws, Title 1, Article
IV, Section 3:
The Audit Committee shall:
a) review and evaluate internal audit reports;
b) recommend to the Board independent certified
public accountants to audit the financial
books and records of the University and
Community College System of Nevada and re-
view and evaluate the reports of such in-
dependent certified public accountants;
c) formulate and make recommendations to the
Board for policies necessary for the enforce-
ment of sound accounting and auditing prac-
tices; and,
d) make such recommendations to the Board as it
deems necessary for the correction of defi-
ciencies in management practices discovered
by audit reports.
Chairman Price stated that the success of the Audit
Committee depends strongly on the internal auditing
staff, which is understaffed at this time.
Chairman Price invited the following persons to make
presentations:
Barbara Hardman, Howard Consulting Group, who offered
information regarding Information Systems Auditing;
internal and external auditors' responsibilities; dif-
ferences between an operational audit, a technology
audit, and a financial audit; code of ethics for in-
ternal auditors; and Institute of Internal Auditors.
Mike Lloyd, Deloitte & Touche, who introduced Dennis
Gauger. Mr. Gauger is the engagement partner with
the University and has served the University during
the last 4 years. Mr. Gauger stated that the external
auditors meet with the Audit Committee several times
throughout the year. The internal auditors coordi-
nate the external auditors which keeps the hours and
costs down for UCCSN. He stated that auditors con-
tribute to the management of the System. External
auditors see that fairness of statements is maintained
and that the System satisfies the Compliance Act of
1984 (financial assistant program).
Mr. Lloyd stated that his role at Deloitte & Touche is
to oversee the entire audit and reporting process.
The Audit Committee relies on the internal and exter-
nal auditors regarding changes of control, compliance
and adequacy. Committee members do not need to know
the details, but must understand the conclusions and
recommendations made by the auditors. The Audit Com-
mittee should understand the issues and what affects
the financial statements. The Audit Committee has an
oversight function and must be able to ask the right
questions to discharge the duties. The Audit Commit-
tee must understand decision making process between
personnel management and the Board of Regents. The
Committee should not be a part of management's deci-
sion making process, because it intrudes into manag-
ing of the institutions. The Committee should devote
time to educating the members of the Committee. By
working closely with the internal and external audi-
tors, the Audit Committee will be able to enhance
accountability throughout the System.
Mrs. Whitley stated that the external auditors have
been reluctant in reporting on control mechanisms.
Mr. Gauger stated that the management letters sub-
mitted to the Committee contain recommendations to
this effect. However, the role of the external
auditors is to evaluate the controls of financial
statements and compliance with the federal finan-
cial assistance program.
Gary Crews, Legislative Counsel Bureau, discussed
management's responsibility and indicated that man-
agement's key role is "accountability". Due to the
lack of funding throughout the State of Nevada, ac-
countability is becoming more and more important.
Upon questioning, Mr. Crews rendered an opinion by
stating that the ultimate authority is the policy
setting board, which in this case is the Board of
Regents. He stated that the Audit Committee serves
as a buffer between the auditing staff and the Board
of Regents.
Mike Lloyd also serves on the UNLV Foundation and
reported on the Foundation's function.
Don Hataway, State Budget Office, reported that the
State Budget Division has performed a pre-audit on
the two Business Centers from 1986 to 1992 and has
submitted a report to the Chancellor's Office. The
Budget Division has requested that its recommenda-
tion be addressed. He stated that he was extremely
confident with the Chancellor's Office staff and
remains in contact with them several times a year.
Vice Chancellor Sparks indicated that once the recom-
mendations from the pre-audit have been addressed, it
will be reported to the Audit Committee.
Upon questioning, Vice Chancellor Sparks indicated
that there are 5 State-paid UCCSN auditors. Vice
Chancellor Sparks stated that the Chancellor's Office
feels that it is extremely important to maintain
credibility with the State Budget Office and that the
controls are in place and the budget is maintained.
Darrel Daines, State Controller's Office, discussed
the State's bonding capacity and the various kinds of
bonds.
Mary Sanada, State Controller's Office, discussed the
sources of revenue from the Legislature, student fees,
and bonds issued.
Jenny Frayer, UNR Foundation, stated that the founda-
tions are audited by external auditors and a report is
submitted to the members of the corporation on an an-
nual basis.
Ms. Frayer introduced Ms. Laurie Mc Nulty, UNR Founda-
tion Controller, who reported on the auditing process
in which the foundations comply on an annual basis.
Frank Daykin, Legislative Counsel (retired), reviewed
the Nevada Constitution, Section 4, Article II, with
regard to the Board of Regents. He stated that the
Board's power and duty are authorized by the Consti-
tution; however, the Legislature has power to pre-
scribe additional duties and allocate funds. He dis-
cussed the Morrill Act and its constitutionality.
Ron Sparks, University & Community College System of
Nevada, briefly highlighted the budget process. He
has been directed to give a budget orientation to the
full Board at a later date.
John Love, University & Community College System of
Nevada, introduced Mr. Mark Nash, Internal Auditor,
and informed the Committee of the additional UCCSN
Internal Audit staff.
Chairman Price thanked everyone in attendance and
stated that the Audit Committee meetings are open to
the public and invited anyone to attend. She thanked
WNCC President Anthony Calabro for the use of the
video conference equipment at the WNCC Campus and
thanked Dave Dales, Tim Hunt and Don Zitter for their
help in coordinating the meeting through video con-
ference equipment.
September 2, 1993
Chairman Price informed the Committee that Regent Daniel
Klaich has requested to be removed from the Audit Committee
and that the Chairman of the Board, James Eardley, will con-
firm this request and reappoint a member to the Committee.
(1) Information Only: Pre-Audit Planning Conference -
Acting Director of Internal Audit John Love introduced
representatives from Deloitte & Touche, Bill Hartman,
Dennis Gauger, and Laura Humberger, who discussed the
pre-audit planning conference for the June 30, 1993
financial statements.
Mr. Gauger indicated that representatives have met
with the controllers of the various institutions to
discuss the audit fieldwork schedule and the time-
table of issuance of the required reports from the
external auditors. They are all in agreement with
the Financial Statement Audit Timetable, which is
filed in the Regents' Office. Ms. Humberger explain-
ed the timetable and that the Consolidated Financial
Statements and Independent Auditors Report will be
completed by November 1, 1993, and the Individual
Institutions Financial Statements and Independent
Auditors Report will be completed by December 1, 1993.
Chairman Price requested Mr. Gauger to review the
scope of the external audit. He explained that the
first responsibility is to conduct an audit of the
financial statements in accordance with the Generally
Accepted Audit Procedures. Management letters will
be compiled for the consolidated audit and the indi-
vidual audits, and will include recommendations on
their findings.
The second responsibility is to conduct a Compliance
Audit for the federal financial assistant programs.
The external auditors will render an opinion in ac-
cordance and make recommendations for improper con-
trols.
In addition, Mr. Gauger reported that the external
auditors will conduct two additional audits, 1) au-
dits on bonds from the revenue from student fees; and
2) NCAA audit report. Upon questioning, he indicat-
ed that the audits encompass all funds which the UCCSN
receives, including federal and State funds, and re-
minded the Committee that foundation audits are sepa-
rate. Acting Internal Audit Director Love indicated
that the scope and fees for the NCAA audit are still
being negotiated with Deloitte & Touche.
Mr. Gauger stated that Congress has re-instituted the
Higher Education Act of 1965 with new auditing re-
quirements for aid to athletes. It requires more
information on athletic programs. The HEA does not
specifically state when the audit process should
begin nor the full scope of the audit and Mr. Gauger
is requesting clarification.
Chairman Price emphasized the importance of the Board
of Regents' agreement to follow NCAA rules and regu-
lations.
Chairman Price indicated that the Audit Committee
must make it clear on what it expects from the audits
and that the rules and regulations of NCAA should be
adhered to at all times.
Mr. Gauger stated that he interpreted the HEA to
include booster and foundation activities which are
consistent with the NCAA recommendations. The audit
report will be submitted to the Department of Educa-
tion and then made available to the public.
Acting Internal Audit Director Love requested the
Committee to consider a 1-year extension of Deloitte
& Touche contract as per agreement at the August 26,
1992 Board of Regents Audit Committee meeting. Chair-
man Price stated that since the item was noticed as
an "Information" item, action could not be taken at
this time. However, she will request approval by
the full Board at its September 9-10, 1993 meeting.
Clarification on Prior Discussions -
A. Acting Internal Audit Director John Love stated
that during a prior Audit Committee meeting a
question was raised regarding the Chairman of
Departments receiving additional compensation.
Senior Vice President John Unrue, UNLV, explained
that UNLV has "Distinguished Chair" positions,
which allow exceptional senior faculty to occupy
and receive a salary enhancement. The salary
enhancements are gifted to the various Colleges
by donors who specifically designated their gift
to the "Distinguished Chair" position, then a
person is assigned to fill the position.
It was explained that "Department Chairpersons"
are placed on "B" contracts and at some institu-
tions the Chairperson's teaching workload is re-
duced and/or an increase in compensation is is-
sued for the extra responsibility. In the past,
UNLV issued two separate contracts, one for the
employment of the person and another contract for
the salary enhancement. Currently, only one con-
tract is issued with two separate account numbers.
Dr. Eardley suggested that Vice Chancellor Sparks
and the various Campuses discuss the issuance of
contracts with Chairman Price. Chairman Price
stated that the ad hoc Compensation Study Commit-
tee will address this issue.
B. Acting Internal Audit Director John Love stated
that during a prior Audit Committee meeting a
question was raised regarding the insurance for
volunteer workers, part-time workers, and intern
students. Executive Assistant to the Vice Presi-
dent for Finance Mike Sauer, UNLV, explained that
students are not covered by workman's compensa-
tion; however, volunteers are covered by SIIS.
The UNLV Hotel Administration College requests
that employers of student interns provide insur-
ance. Nursing students must have their own lia-
bility insurance. Chairman Price requested ad-
ditional information be included in the contracts
and to have the employers assure the University
that the student interns are covered by insurance.
(2) Acting Director of Internal Audit John Love presented
the audit of the WNCC Community Services, July 1, 1992
through March 31, 1993. The report is filed in the
Regents' Office.
Chairman Price introduced Dr. Dale Rogers, Director of the
Center for Logistics Management at UNR. She invited Dr.
Rogers to partake in the discussions regarding inventory and
how it can be improved throughout the System.
(3) Acting Director of Internal Audit John Love presented
the audit of the UNLV Academic Advancement, September
30, 1991 through August 31, 1992. The report is filed
in the Regents' Office.
Mrs. Sparks moved approval of the audit report and
recommendations of the UNLV Academic Advancement. Dr.
Eardley seconded.
Chairman Price questioned whether each individual en-
tity has its own procedures manual, and it was stated
that each institution has its own procedures manual or
are in the process of developing one, and that the
individual entities may, at their own choosing, devel-
op a specific procedures manual.
(4) Acting Director of Internal Audit John Love presented
the audit of the UNLV Department of Public Safety,
January 1 through December 31, 1992. The report is
filed in the Regents' Office.
(5) Information Only: Follow-Up Audit Report and Recom-
mendations, Scholarships, NNCC - Acting Director of
Internal Audit John Love presented the follow-up
audit of NNCC Scholarship, July 1, 1991 through June
30, 1992. The report is filed in the Regents' Office.
Mr. Love indicated that the Board of Regents' policy
states "The Foundations are precluded from making
direct expenditures on behalf of any UCCSN institu-
tion or its employees", and felt that NNCC Scholarship
office was in violation of the policy. The Scholar-
ship office stated that they believed the current
procedure is proper, and asked for a legal opinion
from UCCSN General Counsel. General Counsel Klasic
issued a written opinion that a scholarship paid by
the NNCC Foundation was not a direct payment for the
benefit of the NNCC, and did not violate the Board
of Regents' policy.
Chairman Price stated that she would be speaking with
General Counsel Klasic on this matter for further
clarification prior to the athletic audits.
(6) Information Only: Follow-Up Audit Report and Recom-
mendations, Community Education, NNCC - Acting Direc-
tor of Internal Audit John Love presented the follow-
up audit of the NNCC Community Education, July 1, 1991
through June 30, 1992. The report is filed in the
Regents' Office.
(7) Information Only: Follow-Up Audit Report and Recom-
mendations, Campus Recreation, UNLV - Acting Director
of Internal Audit John Love presented the follow-up
audit of UNLV Campus Recreation, July 1, 1991 through
June 30, 1992. The report is filed in the Regents'
Office.
Mr. Jeffrey Wells, Assistant Director of Student
Activities at UNLV, stated that the Campus Recreation
program has extensive inventory. When he assumed the
position the inventory was scattered throughout the
Campus. He has since then attempted to reconcile each
piece of equipment. Upon questioning, he replied that
the procedures manual should be completed by the end
of the academic year.
(8) Information Only: Follow-Up Audit Report and Recom-
mendations, Associated Students of the University of
Nevada, Reno, School of Medicine, UNR - Acting Di-
rector of Internal Audit John Love presented the
follow-up audit of UNR Associated Students of the
University of Nevada, School of Medicine, July 1, 1991
through June 30, 1992. The report is filed in the
Regents' Office.
(9) Information Only: Follow-Up Audit Report and Recom-
mendations, School Refusal Clinic, UNLV - Acting
Director of Internal Audit John Love presented the
follow-up audit of UNLV School Refusal Clinic, July
1, 1991 through December 31, 1992. The report is
filed in the Regents' Office.
Clarification on Prior Discussions -
C. Chairman Price requested clarification of the
difference between Thomas and Mack Center and
Lawlor Events Center temporary employees.
Mr. Mike Sauer, Executive Assistant to Vice Presi-
dent of Finance and Administration at UNLV, stated
that temporary employees are placed on an employ-
ment contract for the duration of the event.
Mr. Tom Judy, Assistant Vice President and Con-
troller at UNR, stated that temporary employees
are classified as casual labor and serve a limited
number of hours without a specific time frame.
(10) Information Only: Round-Table Discussion on Controls
of Equipment Inventory System-Wide - Acting Director
of Internal Audit John Love led the discussion on
controls of equipment inventory both for Business
Center North and South.
Mr. Love informed the Committee that in accordance
with NRS 396.436, the Board of Regents shall cause
perpetual inventory records and controls to be main-
tained. On July 22 he met with purchasing personnal
and controllers to discuss equipment inventory. He
highlighted the inventory controls for Business Center
North (BCN) and Business Center South (BCS), as fol-
lows:
Business Center North
1) Reviewed annually by the Office of Naval Research.
The audit revealed that their system meets all
federal accountability requirements. Report says
that BCN needs additional staff.
2) Staff in the Controller's office will review
property accountability and custodianship on an
announced basis for randomly selected Departments.
Equipment inventory is on computer records. CUFS
July 1992 on and PC based software package prior
to that time. The equipment inventory is updated
whenver a new purchase is made and whenever BCN
disposes of a piece of equipment. Reports are
generated when updating is done.
3) BCN relies primarily on annual Departments' self-
audits. In these audits, Department is required
to confirm or certify via an authorized depart-
mental signature that they have each inventoried
piece of equipment in their possession.
4) BCN conducts on-site, wall-to-wall audits when
required. When staffing and other duties permit,
randon site visit audits are conducted using
sampling techniques to verify accuracy.
Business Center South
1) Records are maintained by the Inventory (Fixed
Assets) Section. Responsibility for departmental
custodial records lies with the Department Chair-
man. Each Department must report to the Inventory
Section on a continuing basis, all requipment ac-
quired, moved, modified, loaned, traded, disposed
of, or the destruction thereof; all equipment
stolen will be reported to Campus police.
2) An annual departmental listing of inventories
equipment will be furnished to all cognizant
Departments at the end of the fiscal year. This
report will include only those items of equipment
and furniture on hand according to the records of
the Inventory Section. Each Department or unit
will notify the Inventory Section of any differ-
ences between the computer listing and their
departmental records. Over 1% shortage will be
scheduled for on-site visits.
3) At the completion of the Campus-wide inventory, a
final shortage list for each College or Department
will be compiled and copies sent to President, the
College and Department concerned.
Mr. Love made the following recommendations:
1) Notification of inventory differences will be
accomplished by the departmental Chairman certi-
fying the accuracy of the corrected departmental
inventory and forwarding the certified copy to
the Fixed Asset Section.
2) Community Colleges need Central Receiving.
3) A Board of Regents' policy be developed to address
inventory controls.
Dr. Dale Rogers, Director of Logistics Management at
UNR, commended BCS for their recent inventory report
reflecting that $150,000 on the shortage list out of
a $60 million inventory over the past 3 years. He
cautioned the Committee in that a "cure" may be worse
than the disease. The Committee should be careful on
what they may change.
Chairman Price stated that she wished to simplify the
paperwork and to insure that the current system is in
proper order. The public perception needs to be clear
and concise. She felt it was important to develop a
simple and efficient Board of Regents' policy to re-
flect accountability in regard to inventory control.
Dr. Eardley stated that the Community Colleges service
several different sites and it may be difficult for
the institutions to create a central receiving area.
He felt it would be costly and delays the inventory
from reaching the Departments. The BCN Central Re-
ceiving services UNR, the System Administration Office
and the UCCSN Computing Center.
Dr. Bill Bonaudi, NNCC Dean of Instruction, stated
that NNCC has sites in Ely and Winnemucca. The expen-
sive equipment is received at the Elko Campus and then
delivered to the appropriate site, and the smaller
inventory is directly received by the site.
Mr. Tom Judy, UNR Assistant Vice President and Con-
troller, informed the Committee that CUFS is in its
first year. Equipment is entered into the CUFS upon
ordering, not when it is received. A problem lies
in tagging the equipment upon receipt.
Mrs. Sparks suggested that the appropriate staff de-
velop recommendations for discussion by the Audit
Committee and if approved, brought before the full
Board for consideration. Chairman Price directed Mr.
Love to coordinate with the institutions and develop
recommendations. She invited Dr. Rogers to make any
recommendations he feels necessary.
Chairman Price thanked Mr. Rogers for attending the meeting
and lending discussion to the inventory control issue.
Mr. Price moved approval of the report and recommendation
of the Audit Committee. Mrs. Sparks seconded. Motion
carried.
Dr. Hammargren returned to the meeting.
29. Report and Recommendations of the Legislative Liaison
Committee
A report and recommendations of the Legislative Liaison Com-
mittee meetings, held April 23 and September 9, 1993, were
made by Regent Shelley Berkley, Chairman.
April 23, 1993
(1) Update Report on Legislative Activity - Vice Chancellor
Sparks reported that the Senate had passed the bill
containing the Governor's request to cut the K-12 budg-
et by $18 million this year, and would be heard in the
Assembly probably on Monday the next week. This ac-
tion, if passed, would help the System for this current
year and for its request on minor repairs, but probably
would hurt UCCSN in that it would no longer be first
in line for any new revenues the State might acquire.
A strong rumor has it that a promise has been made to
K-12 that the $18 million would be restored with any
new monies obtained.
The Governor's reorganization plan probably will be
coming from the Legislature, but in a different form,
with an approximate cost of $2 million per year. This,
too, would require new State revenue funds.
Vice Chancellor Sparks urged that the System should be
lobbying harder to be first in line for any new State
revenues that might materialize.
Vice Chancellor Sparks stated that the Governor's plan
for prison early release and the closing of several
honor camps does not appear to be in favor in the
Legislature, and if that comes to pass and the State
has to open the new Lovelock prison, the cost will be
high. This, too, would require new revenue.
In commenting on the possibility of new State revenues,
Vice Chancellor Sparks stated that the Legislative
Counsel Bureau projections have been right on target,
and there has been no significant discussion for new
funds.
The Governor has also recommended closing the Beatty
low-level nuclear dump site, but that, too, is meet-
ing some resistance. If it is kept open, it will
produce significant dollars.
It has been rumored that any funds obtained through
legislative regulating telemarketing will be targeted
for K-12.
President Crowley questioned whether the System should
put energy into the question of enrollment growth and
the protection of the funding formulas and try to
develop promises for being first in line for new funds.
President Maxson suggested that the System would re-
activate its contacts with the editorial boards, that
the initial response had been very positive in news
releases. Vice Chancellor Sparks reminded the Board
that it would require $36 million to restore the Base
Budget; $15 million to restore just the instruction
part of the Base Budget. He also reminded the Board
that the law would have to be changed if "triggers"
were going to be used.
Mr. Graves stated he felt it was most important to
have a commitment that the percentage of the State
budget for UCCSN would be restored to the 20%. Pres-
ident Meacham stated he was reluctant to have commit-
ments for a future Legislature, but President Maxson
stated he felt it would at least give the System a
bargaining position for the next session.
Chairman Berkley asked that the Chancellor's Office
prepare a letter to be sent to the editorial boards
to garner press support. She suggested a meeting be
set with the Governor so that the Chairman and Presi-
dents could again request a commitment for first pri-
ority on new funding. Further, she felt that there
should be a concerned "assault" on the Legislature
and asked that Presidents and Regents be present every
day.
President Crowley suggested that the Campus legislative
networks be activated. Chairman Berkley asked that the
Chancellor draft a concise, brief letter that could be
used by these groups. President Crowley agreed to meet
with the leadership of the Legislature this next week,
prior to any meeting being set. President Gwaltney
suggested that the System provide a study, to be done
before the next session, on how the System will be a
part of the solution to the State's economic develop-
ment thrust.
Vice Chancellor Sparks stated that a workshop meeting
between Senate Finance and Assembly Ways and Means will
be held next Tuesday on closing of the UCCSN Budgets.
The Governor had not recommended any funding for the
payment of unemployment compensation for the System,
which amounts to $375,000. He stated he felt the
Assembly would approve this amount, but was not certain
the Senate would do so.
(2) Overview of Legislative Bills Pertaining to UCCSN -
General Counsel Klasic reviewed a number of bills pend-
ing in the Legislature.
SB 370 - Administrative Procedures Act. The practical
problem with the bill is that the Board would have to
go through long bureaucratic procedures before it could
make a change to the Board of Regents' Handbook, which
contains UCCSN policies and procedures. He reminded
the Board that there are changes made at every Board
meeting, but this bill would bring the System to a
halt. The legal problem with the bill is the consti-
tutional autonomy for the Board. Under the bill all
regulations would have to be approved by the Legisla-
tive Commission. General Counsel Klasic and Regent
Eardley will testify at the hearing.
A number of open record bills will be heard on Monday.
General Counsel Klasic will testify at the hearing.
AB 257 deals with the amount of insurance to be paid
for retirement benefits, and is one UCCSN had request-
ed.
AB 343 would require all agencies be required to show
cause for termination of an employee after one year.
This would prohibit the 5- and 7- year probationary
provisions for tenure within the System. General
Counsel Klasic stated there is no objection for the
one year provision provided UCCSN could have the bill
amended to protect the tenure probationary provision.
General Counsel Klasic, President Crowley and others
will testify.
The privatization bill has not been scheduled for
hearings, but Thomas and Mack Center and Lawlor Events
Center personnel, as well as DRI personnel, will testi-
fy.
Senator Nevin's bill on the System Foundations concerns
whether the foundation should be subject to the Open
Meeting Law. Genral Counsel Klasic stated he felt it
would not be conducive to the foundations; however,
the foundations could comply with the open records
provisions. After discussion it was agreed that the
issue should be addressed that the foundations would
have open records.
Chairman Berkley suggested the following schedule for
Regents to be at the Legislature: Monday - Maddy
Graves; Tuesday - Shelley Berkley; Wednesday - Nancy
Price; Thursday - Jim Eardley.
President Meacham requested that SB 86 be amended to
include Community Colleges.
Concerning the Open Records Law, General Counsel Klasic
stated that all State and local agencies had testified
on their opposition to open personnel records to the
public.
Dr. James Richarson stated he had testified that addi-
tional funds would be necessary for the first year of
the biennium for the State contribution for health
care for employees. AB 19 is a bill on how health
care contributions are being worked on. Dr. Richard-
son stated his appreciation of the assignment of Mrs.
Janet Mac Donald, Deputy Treasurer, to assist in this
area. He and Ms. Mac Donald have met with Mrs. Judy
Matteucci and staff to discuss a bill draft, and he
felt they were very receptive to the suggestions made.
September 9, 1993
(1) Final Report - Chairman Berkley requested a final re-
port on key legislation passed during the 1993 Nevada
legislative session, Ref. LL-1 is filed in the Re-
gents' Office.
General Counsel Klasic reported on these measures af-
fecting UCCSN:
AB 402 - student athletes
SB 48 - bill drafts
SB 322 - foundations
SB 314 - name change of UCCSN
SB 447 - surveillance
AB 257 - retirement program
Nevada's Open Meeting Law
In discussing SB 322, Mr. Graves felt that the System
could not operate under the conditions stated, and
suggested the System consider challenging this legis-
lation.
General Counsel Klasic did point out that the legis-
lation does require members of the corporation (founda-
tions) to hold open meetings, and the Board of Regents
who serve as the members of the corporation have al-
ready been practicing this mandate. However, the leg-
islation does not mention that members of the Board
of Trustees should hold open meetings. General Counsel
Klasic also informed the Committee that the UNLV Foun-
dation did not have a problem releasing information to
the media, except for maintaining privacy for its
donors.
Chairman Berkley directed General Counsel Klasic to
review recent legislation with regard to implications
of constitutional authority. Mrs. Gallagher stated
that the Legislators may amend the bill if System
representatives discuss the issues with them. How-
ever, the System must be completely prepared to defend
its cause.
Upon questioning, General Counsel Klasic clarified that
a quorum of a public body is determined by that public
body.
Dr. Jill Derby discussed ACR 23 which urges the State
Board of Education, the Board of Regents, and the
Board of Trustees of each school district in Nevada
to take actions to end gender bias in the educational
system. She reported that UCCSN already has been ad-
dressing this issue and will continue to do so. (A
copy of the legislation is filed in the Regents' Of-
fice.)
Vice Chancellor Ron Sparks reported on budgetary leg-
islation affecting UCCSN:
SB 389 - health insurance
AB 20 - per diem
FY '94 Operating Budget
Vice Chancellor Sparks stated while health insurance
premiums and per diem rates increased, funds were not
appropriated to finance increased costs for 1994-95.
Mrs. Price requested General Counsel Klasic to address
the Nevada Revised Statute that deals with members of
the Board of Regents not being paid a salary.
In regard to membership on the State Committee on
Benefits, it was explained that the Governor appointed
former Chancellor Mark Dawson to represent the System,
although System representation is not required by law.
Chairman Berkley summarized the effectiveness of the
System's representation during the 1993 Nevada legis-
lative session. The initial presentation was excel-
lent and well received. She was very pleased with the
"Student Day" and was hopeful that other System organ-
izations would sponsor an informational day for the
Legislators. The computer-based program needs much
more improvement. However, a letter campaign to 1200
constituents was a great success. The editorial boards
were well covered throughout the State by the System.
She commended all those persons who represented the
System during the session, especially Bob Dickens, UNR,
Buster Neel, UNLV, and Jim Richardson, UNR.
(During the regular session of the Board of Regents'
meeting, Chairman Berkley recognized Pamela Galloway,
Glen Krutz, and Ron Sparks for their efforts during
the legislative session.)
For the future, Chairman Berkley stated that she would
like to see the System more organized. On August 19,
she met with several representatives and discussed how
the System could improve its approach to the legisla-
tive session. One suggestion was to improve relations
with the Governor and the Executive Branch. She will
request that the Board of Regents direct Interim Chan-
cellor Richardson to develop a government relations
plan, and to include public support in the campaign
for higher education. Another suggestion was to uti-
lize the System's own experts in developing a legis-
lative program. Chairman Berkley suggested that the
System consider developing its own Political Action
Committee (PAC).
Mrs. Berkley moved approval of the report and recommenda-
tions of the Legislative Liaison Committee. Mr. Klaich
seconded. Motion carried.
Mrs. Gallagher returned to the meeting.
30. Report and Recommendations of the Status of Women Committee
A report and recommendations of the Status of Women Commitee
meeting, held August 30, 1993, were made by Regent Jill
Derby, Chairman.
(1) Review of Pending Issues and Plans for the Future -
Chairman Derby distrbuted an Assembly Concurrent Reso-
lution No. 23, passed by the 1993 Legislature, which
deals with ending gender biases at all levels of edu-
cation and urges the State Board of Education, State
Department of Education, and the Board of Regents to
focus on this area. Dr. Derby announced that a number
of System people are members of a Statewide Round Table
dealing with this very issue and that she had related
to that group the work UCCSN is doing.
Chairman Derby stated she has had comments question-
ing the mission of the Committee and whether there
was an ongoing role for the Committee. She stated
she felt this Committee has made a difference on the
Campuses and that there has been progressive change
taking place.
The Campus committee Chairs expressed their desire for
the Regents' Committee to remain active and supportive
of the work of the Campus committees. The Chairs re-
lated that strong support from the Regents has been
vital to the success of the Campus efforts.
Dr. Laura Hammond, UNLV, was introduced as a new Com-
mittee member replacing Dr. Isabelle Emerson. Dr.
Hammond related that UNLV's committee is addressing
policy issues in the area of consensual relationships
on Campus. Dr. Crowley related UNR has such a policy
and that violations of the policy are ethical viola-
tions.
A long discussion ensued on the future role of the
Committee. Some of the Committee's accomplishments
include:
Establishing a common assessment vehicle which the
Campuses can use for future data.
Providing a high-level forum for the issues.
Providing a budget for the dissemination of in-
formation across the Campuses and providing net-
working opportunities.
Suggestions for the future role of the Committee and
for future activities included:
Sponsor an annual forum. Campus forums also
needed.
Continue Campus committee emphasis. There is a
need for more faculty awareness. Should identify
and celebrate Campus successes.
Prepare a video which would be required in all
classes and Freshman orientation.
All syllabi could contain a statement on sexual
harassment; where, how to report.
Require statement of faculty division goals for
consideration for merit pay and ratings.
Change name of Committee to include gender equity
rather than just women.
Work with public schools to achieve gender equity,
since higher education inherits these students.
Ensure that teacher education deals with diversity.
Send letter of support to State Round Table.
Encourage faculty to work gender equity issues into
classes. (It has been found students will not at-
tend forums.)
Provide peer counseling for students.
Prepare a statement on values for the adoption by
the Board of Regents.
Don't limit the focus to just women; don't exclude
anyone.
Develop a "Victim's Bill of Rights".
A draft of recommendations will be forwarded for re-
view by the Committee prior to its October meeting.
Campuses are to report student survey results to
Tamela Gorden by October 7, and will report to the
Committee at the October 20-21 meeting.
A draft of further UCCSN Code changes was presented
from TMCC. These changes were tailored for the TMCC
Campus; therefore, review by all Campuses is necessary
prior to discussion at the October meeting.
UNR has just completed a study of its Affirmative Ac-
tion Office and has reorganized for a more effective
outreach. They determined that affirmative action is
the job of everyone on the Campus, and have provided a
network of sexual harassment advisors made up of facul-
ty, staff and peer counselors for students. Also, they
have established an ombudsman office and a dispute res-
olution officers network. Copies of the summary of the
report were distributed.
It was determined that study and reorganization of the
affirmative action offices should be left to the dis-
cretion of the Campuses. This is a Campus administra-
tive issue, and affirmative action reports are made to
the Board annually.
Dr. Derby moved approval of the report and recommendations
of the Status of Women Committee. Mrs. Berkley seconded.
Motion carried.
31. Report and Recommendations of the Ad Hoc Committee on Ethnic
Minority Affairs
A report and recommendations of the ad hoc Committee on
Ethnic Minority Affairs meeting held August 18 and 25, 1993
were made by Regent James Eardley.
August 18, 1993
Chairman Whitley stated that the purpose of the meeting was
to review Campus committee reports which had been reported
to the Board of Regents at its June 1993 meeting.
Dr. Michael Coray, Chairman of the Campus committee Chairs,
gave an overview of the work of the Campus committees. He
related that the decision had been made to survey ethnic
minority students, academic faculty and professional staff
on each Campus, and to hold a series of hearings for both
groups on the Campuses. The hearings on the University
Campuses were not well attended. However, the surveys have
been more productive. The student survey results have been
compiled and given to the Campuses for review.
At UNR, Dr. Coray reported that there has been a Diversity
Committee in operation for over two years and it had com-
pleted a comprehensive study. It has been found there is
an increasing access across the Campus to the ethnic minor-
ity groups. Efforts have also been made in hiring prac-
tices. Their data are based on the 6-year tenure group.
Future reports will show the retention of faculty.
Acting Vice Chancellor Steinberg explained that the Commit-
tee had begun with broad goals, then realized they must
concentrate on one goal at a time to enable implementation
and action.
Mr. L. D. Lovett, TMCC, related that statistically there
has been a great deal of change in hiring. They did learn
through their hearings that most of the minorities are
hired through federal programs and a program is needed to
upgrade their skills in order to be eligible as other jobs
become available. The student surveys revealed students
would like more role models on the staff.
Ms. Julie King, WNCC, reported their committee would be
reviewing the student surveys.
NNCC found a very enthusiastic and ambitious student commit-
tee last year. They began a series of fund-raising efforts
which culmininated in a multi-cultural day on the Campus,
which was well attended by Campus and community people.
They have stated that financial aid is their greatest need.
A discussion of hiring incentives was held. It was suggest-
ed the Board of Regents might have a pool for minority hires
and might set a target to reach for each year. It was noted
that there are minorities available for hire, and there
needs to be incentives available because of the high demand
for these people.
Dr. Paslov reported on an updated tracking system for high
school dropouts, which has resulted in the dropout rate
decreasing. It has also pointed out that early interven-
tion is essential.
Ms. Kizer stated that she felt more individual attention is
needed during recruitment of the minorities, especially the
Native American students. She suggested that community
people might be called upon to help with this recruitment.
Also, she suggested that the Upward Bound program, so suc-
cessful in Washoe County, needs to be extended to other
bordering counties.
Mr. Feemster explained the Sierra Pacific Power Company's
Internship Program wherein they provide Summer employment
for minority young people in higher education in order to
assist the retention problem. His goal is to take that
program to 20 other major employers in the area. He also
stressed that the current method of outreach needs to be
changed and suggested the Campuses might consider contract-
ing with a "headhunter" to find instructors. If no em-
ployees are found that match requirements, no fee is paid
to the headhunter.
Other suggestions that were made:
Review job descriptions for appropriateness.
Provide a reward system for minority faculty.
More community involvement with curriculum and faculty.
Provide a "hands-on" program for students with busi-
nesses.
Provide in-depth mathematics instruction for elementary
teachers.
Program to change attitudes.
Involve community minority groups.
Recruit from high school minority faculties for Com-
munity College part-time instruction.
"Grow Your Own" programs were discussed at length. Dr.
Paslov related that Clark and Washoe counties have begun
such a program with funds from a federal grant. Acting
Vice Chancellor Steinberg stated that the Committee might
consider stipends for students beginning at Community Col-
lege level, the baccalaureate, and the master programs
with a stipulation the student return to the Community
College to teach, thus providing more minority role models
for students, as well as fulfilling diversity shortages.
Another possibility is reaching prison population through
telecommunication classes for upper division classes.
Presently, the Community Colleges have strong 2-year pro-
grams at the prisons. Also, it was pointed out that there
is a need for special support groups for parolees.
Acting Vice Chancellor Steinberg stated there will be a
similar meeting on August 25 in Las Vegas for the southern
members of the Task Force to review reports with the south-
ern Campuses. There will be a meeting of the full Task
Force scheduled sometime in September or October to begin
drafting recommendations.
August 25, 1993
Acting Vice Chancellor Karen Steinberg reviewed for the Task
Force members the activities to date of the Regents' and
Campus committees. The Campus preliminary reports were
presented to the Board of Regents in June. It is anticipat-
ed that a report with recommendations would be presented by
the Task Force to the Board at its October 20-21, 1993 meet-
ing, in order to coincide with the System's budget cycle.
Mr. Rodriguez stated that he was aware of the report pre-
sented to the Board in 1985 and felt very little had been
done to change the statistical results since that time.
He stressed that hiring practices must be changed, and that
they can be changed successfully, as has been done by the
Clark County School District. Ms. Davis questioned whether
there was a commitment on the part of the Regents for af-
firmative action. Ms. Steinberg assured her the commitment
was there and explained that because there are 7 different
institutions with different findings, that it was important
to proceed to pinpoint pockets of success which could be
replicated at other institutions.
The Campus reports, which previously had been sent to the
Task Force members, were highlighted by the Campus repre-
sentatives.
Dr. Steve Mizell, DRI, related his committee had looked at
documents from 1987 through the present to prepare a data
base, and had one-on-one visits with their ethnic minority
professional and staff members. Of 105 research employees,
6% are ethnic minority. There are 18 Administrators, with
6% ethnic minorities, and there are 17 other professionals
employed with 17% ethnic minorities. They found that the
ethnic minority professionals all were in the upper salary
ranges of research faculty, and the academic faculty were
evenly divided in the ranges.
Two principal comments came from the interviews: 1) there
was no intimation of problems in the work place, the ethnic
minorities found they were very well accepted and respected;
and, 2) there was concern with reducing the criteria for
quality of research faculty. They felt more stress should
be placed on recruiting faculty where ethnic minorities are
found. They all felt the quality of the research faculty
must be the first concern for the Institute. This group
recognized that the pool for recruitment is small in the
areas of science and engineering and expressed interest in
finding plans which would steer younsters into these fields.
Dr. Pat Butler, CCSN, identified a number of activities
their Campus has stressed, such as emphasizing a retention
program, beginning clubs and associations where ethnic
minority students can become involved. A Director of Stu-
dent Retention has been hired, an African American who has
been working with faculty, and who has just recently been
assigned to head the Student Transfer Center. CCSN held
faculty hearings and surveys last year, and will hold stu-
dent hearings this year. The preliminary study of the re-
sults of the student surveys have revealed that work needs
to be done to change the atmosphere in some of the classes
and with some of the counselors, and has stressed the need
for early intervention with students.
Mr. John Lujan, UNLV, reported that they were not success-
ful with the hearings held on the Campus; however, the
faculty and student surveys should be helpful. He related
that President Maxson has been supportive of the efforts
and had authorized a $10,000 budget for the committee.
The following items were offered as suggestions for consid-
eration of recommendations:
Change in hiring practices.
A scholarship pool for ethnic minority students.
Seeking assistance from the Foundations.
Establish a goal for diversity within the faculty.
Establish general policy goals.
Review of curriculum - i. e. - Requirement for Western
Tradition courses does not help ethnic minorities.
There is a need for enthusiastic ethnic minorities to
hold responsible positions, not these with negative
attitudes.
Develop a "grow your own" program within the System.
Review recruitment practices.
Acting Vice Chancellor Steinberg urged the Task Force mem-
bers to draft recommendations and send them to her to be
compiled and circulated to all members prior to the next
meeting, which will be held via video conference sometime
prior to the Regents' October meeting.
Dr. Eardley moved approval of the report and recommendations
of the ad hoc Committee on Ethnic Minority Affairs. Mr.
Klaich seconded. Motion carried.
32. Report and Recommendations of the Ad Hoc Foundation Liaison
Committees
A report and recommendations of the ad hoc Foundation Liai-
son Committee meetings, held April 23 and September 9, 1993,
were made by Regent Lonnie Hammargren, Chairman.
April 23, 1993
(1) Discussion of Committee Mandate - Chancellor Dawson
presented a list for discussion consisting of 9 items
which might be included in a Committee mandate:
Liaison between the Board of Regents and the
Foundations - attend foundation meetings and re-
port back to the Board;
Develop reporting format for uniformity in report-
ing to the Board of Regents;
Develop a statement of mutual responsibilities and
obligations;
Review proposed contract(s) between foundations and
institutions;
Statement of purpose - what does the Board of Re-
gents expect the foundations to do?;
Fund raising or spending priorities given to the
foundations by the Board of Regents;
Compensation coming from the foundations to insti-
tution employees;
Reports given to Regents pertaining to foundation
expenditures - making sure that the reports given
to the Board balance;
Report of Ethics Commission decision on UNR Founda-
tion.
Chancellor Dawson related he has sent a list of Foun-
dations to each Campus requesting the President to re-
view, complete the list and return it to him. That
information will be forwarded to the Committee.
Chairman Hammargren reported on a meeting he and Mrs.
Sparks attended at the AGB Conference concerning how
institutions and foundations work together. Mrs.
Sparks added that the presenters stressed that they
had found communications between the two was the main
problem, and they further stressed that fund raising
should be for an institution and not for specific de-
partments. Most foundations have chosen to be private,
but there is an intermingling of employees between the
institutions and the foundations.
A general discussion was held on the following:
Whether special legal expertise was needed to re-
view contracts which might be proposed by the
foundations.
The National Council for Resource Development has
a number of publications on Community College
foundations which would be available.
Because the foundations, especially at the Uni-
versities, are under scrutiny, the Board need to
establish basic policies.
Most of the UCCSN foundations do not have the
resources to pay employees.
Should a System Development office be considered
where all funds would be deposited and dispersed
to the various institutions, thus reducing admin-
istrative costs. It was pointed out that with the
current controversies, there are people who have
made large institution donations, but are now re-
luctant to do so, but would make those donations
under another system of management.
The discussion then turned toward the items presented
for consideration of a charge to the Committee:
1. Liaison between Board and Foundations - Chairman
Hammargren suggested there be a liaison section
set for each foundation meeting. Mrs. Gallagher
stated that many Regents have attended foundation
meetings since they were first begun. It was
suggested the Chairman of the Board could be the
liaison and attend all meetings and report back
to the Board. A concern expressed was that it
would only add another layer between the foundation
and the institutions. Mrs. Berkley stated she
had promised the Legislature that there would be
a more formal agreement between the Board and the
foundations. It was also suggested that the Chair-
man and Vice Chairman of the Board make assign-
ments of Regents to act as liaisons.
2. Uniform Reporting Format - Chancellor Dawson re-
ported that when CCSN had last reported, the format
used seemed to be appreciated by the Board. This
has been distributed to the institutions and foun-
dations. The standard operating date is July 1
through June 30.
The reports are presented to the Board at different
times, however. The Chancellor will report back
to the Committee on the reporting format.
3. Statement of Mutual Responsibilities and Obliga-
& tions and Review of Contracts - Mrs. Edna Brigham
4. stated that the role of the foundations and their
relationships with the Board need to be reviewed.
She explained that the majority of gifts intended
for the Universities or Community Colleges are now
given through the foundations. This means that the
Board's ability to add discretionary funds to its
Special Projects account has diminished graphical-
ly, as has the account itself.
Mr. Les Sully, attorney for the UNLV Foundation,
stated that UNLV has proposed a contract which
lists the services the Foundation will provide
and clarifies that all funds designated for special
areas go to the Board of Regents. General Counsel
Klasic reminded the Committee that when the foun-
dations were begun, only the UNR Foundation stated
obligations with the Board. He added that the
Board could adopt a policy statement which des-
cribes such obligations, or that the Board could
enter into separate contracts.
Mr. Graves remarked that the foundations raise
funds, then turns them over to the Board. The UNLV
contract proposes the Foundation will manage its
own funds; however, he stated that the System has
done very well in managing the funds. Mrs. Brigham
explained that prior to the foundations, donations
went to the Board and were invested. 20% of the
interest went to the Board for their Special Proj-
ects Fund and 80% was returned to the institution.
Now, the funds go to the foundations, and nothing
is coming to the Board which depletes their Special
Projects Fund. Ms. Mac Donald further explained
that the endowment funds are separated from the
operating funds. The only discretionary funds the
Board has are the 20% from operating fund invest-
ments. Now, the foundations invest the cash flow
for their operating and discretionary needs. The
foundations reimburse the respective institutions
on a cost reimbursement basis resulting in nega-
tive operating cash balances for the Board to
invest.
Mr. Sully stated that the proposed contract states
that the Foundation will invest the funds which
will be accumulated for one year, then 5% will go
to the Foundation for operating dollars. Chair-
man Hammargren stated that he learned Texas A & M
takes 5% of every gift for operating purposes.
Mrs. Price stated that this is precisely the reason
the Board has abdicated its responsibility when the
Foundation does this sort of thing and questioned
what would happen if the Foundation does not agree
with the Board's priorities?
President Maxson stated that the UNLV Foundation
has a President's Circle in which each member do-
nates $5000 per year and these funds then are for
the operation of the Foundation. He explained that
Mr. Sully was saying the new contract reads that 5%
of the interest will go to the Foundation for oper-
ating and added that the UNLV Deans have agreed to
this arrangement. He related that the University
submits its priorities to the Foundation. He then
stressed that the President needs flexibility in
raising funds so that the institution is able to
take advantage of opportunities as they arise.
He added that the Board always has the final say
in whether a gift is accepted. He reminded the
Committee that he informs the Board by either tele-
phone or letter when a large gift is about to be
received.
President Crowley stated that if the Board has a
priority, the foundation is obligated to meet it,
but the management of the funds poses serious
questions for both the Board and the foundations.
He suggested a meeting with the finance officers
of the foundations, Mrs. Brigham, Ms. Mac Donald
and Vice Chancellor Sparks to prepare a report on
the pros and cons of management of funds. He felt,
and the Committee agreed, that the report should
include statements of mutual responsibilities and
obligations, purpose - what the Board expects of
the foundations, fund raising or spending priori-
ties and reporting of expenditures. It was also
agreed that the Chancellor's Office would coordi-
nate the meeting.
Ethics Commission Report on UNR Foundation - President
Crowley stated the report has been sent to all Regents.
He added that UNR is pleased with the opinions of the
Commission.
Public Comment -
A. Regents: Mrs. Berkley stated the question of whether
the foundations are public or private must be addressed,
as well as which records are public. Mr. Sully stated
that UNLV Foundation has identified these in their
proposed contract. Mrs. Berkley replied that the Board
must determine what is best for all foundations, not
just the UNLV Foundation.
B. Public: Ms. Doris Grosman stated that Mrs. Berkley had
spoken for her, but that she was only concerned with
the UNLV Foundation. Mr. Sully explained that every
single record of the UNLV Foundation has been and is
open for inspection by any Regent. Ms. Grosman ques-
tioned that if that were so, then why had there been so
much concern. (Note: Mr. Sully and Ms. Grosman con-
tinued talking, but they were not speaking into micro-
phones, and the conversation was not picked up.)
September 9, 1993
(1) Mr. William T. Hutton's letter regarding recommended
future action of the Board of Regents in regard to
institutional foundations in light of the passage of
SB 322 (Ref. FL-la) is enclosed as Ref. FL-1b. Mr.
Hutton stated that "I believe that the Regents' in-
terests will best be served by promulgation of a set
of guidelines, intended to facilitate compliance with
the provisions of the new statute, and to deal as well
with other aspects of UCCSN's relationships with its
support organizations." The staff concurs with Mr.
Hutton's assessment.
Based on earlier discussions with the Board, the staff
believes the Board wishes to accomplish the following
objectives in the revision of existing and develop-
ment of new foundation guidelines:
Maintenance and enhancement of the institution
through private support;
Standardize reporting from the UCCSN foundations
to enhance fiscal control and public and Board of
Regents understanding of the foundations' contri-
butions to the member institutions.
Establish requisite system for the implementation
of the policies and procedures as approved by the
Board of Regents including assurances for carrying
out the donors' intent and statutory and other
legal requirements.
Staff is further of the view that the above objectives
can best be accomplished through the development of
Board approved guidelines that apply to all founda-
tions. Any elaboration beyond such guidelines deemed
necessary because of the special nature of the rela-
tionship between an institution and its related foun-
dation(s) should be dealt with through means of memo-
randum of agreement between the institution, its foun-
dation(s), and the Board of Regents.
Interim Chancellor Richardson, Assistant Treasurer
Mac Donald, and Director of Endowment Brigham recom-
mended that staff be directed to work with institution
and foundation representatives to develop a draft set
of guidelines governing the relationship between the
institutions, the foundations and the Board of Regents
for review and consideration by the Regents' ad hoc
Foundation Liaison Committee. It is further recommend-
ed that staff work with the separate institutions and
their related foundation(s) to develop memoranda of
agreement for review and consideration by the Regents'
ad hoc Foundation Liaison Committee if such memoranda
are considered necessary.
Interim Chancellor Richardson offered the following
alternatives:
Alternative #1: The Committee could decide to do
nothing, thereby leaving present guidelines and ar-
rangements in place. Staff does not believe such a
course of action is desirable given the nature and
extent of questions which have been raised regarding
the relationship between the Board, the institutions,
and the foundations by Regents and by others.
Alternative #2: The Committee could decide to work
directly with the institutions and the foundations to
draft new guidelines. Staff believe the Committee's
members' time utilized more effectively if staff were
directed to carry out the preliminary work and bring
forward recommendations for the Committee's consider-
ation.
Chairman Hammargren, Mrs. Sparks and Mrs. Brigham
recommended acceptance of alternative #2; however,
Interim Chancellor Richardson strongly urged the Com-
mittee to allow staff to work with institution and
foundation representatives to develop a draft set of
guidelines governing the relationship between the
institutions, the foundations, and the Board of Regents
for review and consideration by the Regents' ad hoc
Foundation Liaison Committee, and that staff work with
the separate institutions and their related founda-
tion(s) to develop memoranda of agreement for review
and consideration by the Regents' ad hoc Foundation
Liaison Committee if such memoranda are considered
necessary.
It was approved to direct staff to work with insti-
tution and foundation representatives to develop a
draft set of guidelines governing the relationship
between the institutions, the foundations and the
Board of Regents; and to direct staff to work with
the separate institutions and their related founda-
tion(s) to develop memoranda of agreement for review
and consideration by the Committee.
Mr. Graves and Mr. Klaich directed the staff to comply
with the American Institute of Certified Public Ac-
counts' (AICPA) recent compliance of standards as found
in the publications, "Statement of Financial Accounting
Standards #116 Accounting for Contributions Received
and Contributions Made."
Mr. Graves cautioned the staff that discussion has been
previously held by the Chancellor's Committee on Pri-
vate Partnerships regarding gifts of appreciated prop-
erty. Mr. Hutton addresses this issue in his letter
on page 3 under item (4). Mr. Graves pointed out that
the last sentence in that paragraph is a very delicate
issue. It reads, "(The requirements of a 'qualified
appraisal' and the threat of overvaluation penalties
under federal law still serve to check tax-inspired
avarice, and the foundation need play no part in the
appraisal process.)"
Mr. Les Scully, UNLV Foundation Attorney, informed the
Committee that the UNLV Foundation has a Gift Accept-
ance Committee, and he will inform them to work with
staff to develop appropriate guidelines. Mr. Sully
also stated that the UNLV Foundation has a Real Estate
Committee which addresses how the book value is placed
on gifted property.
Mrs. Mac Donald stated that sale of personal property
within two years of the gift must be reported to the
Internal Revenue Service (IRS). Chairman Hammargren
requested a two-page summary of all reporting practices
including AICPA, National Association of College and
University Business Officers (NACUBO) and IRS.
Upon questioning, Mr. Sully stated that gifts are
booked for what the gift is worth and the Foundation
reports to IRS the sales price when the gift is sold.
A disclaimer is submitted that states that consulta-
tion has taken place with financial advisors and
attorneys.
Mrs. Gallagher stated that the foundations have been
made to feel uncomfortable, and suggested that the
Committee move forward on developing guidelines and
to inform the foundations that they are an important
source for the institutions which they represent. The
guidelines should not be restrictive, but more of a
protection for foundations and the Board of Regents.
Mrs. Sparks agreed with Mrs. Gallagher and emphasized
the importance of the foundations. The Board of Re-
gents should not discourage and prevent hesitation
of giving to the institutions through the foundations.
A discussion was held on the use of the University
logos. Mr. Sully felt that if the foundations are
instructed to abide by the Board of Regents' guide-
lines, then the foundations should be able to use the
logos. Mrs. Mac Donald stated that the use of the
University's name has value. She assumes the Board
of Regents wants to know how and when the name is used.
Mrs. Berkley commented that the past year has been very
unsettling for the Board of Regents and foundations.
The two are now entering into a new phase, in that the
Regents care enough to ask the appropriate questions
and are making an effort to save and enhance the foun-
dations. She stated that criticism does not neces-
sarily mean that you are an enemy.
Chairman Hammargren stated that he was pleased with
the healing process that is now taking place and looks
forward to working toward productivity of the founda-
tions.
(2) New Business
A. Board of Regents - Mr. Graves questioned how the
Committee felt about SB 322. Mrs. Berkley stated
that General Counsel Klasic will address the leg-
islation during the Board's Legislative Liaison
Committee meeting.
B. Public - Mr. Lee Scully, UNLV Foundation Attorney,
requested clarification and discussion on SB 322
which becomes effective October 1, 1993.
Dr. Hammargren moved approval of the report and recommenda-
tions of the ad hoc Foundation Liaison Committee. Mr.
Graves seconded. Motion carried.
The open meeting recessed at 2:30 P.M. and reconvened at 3:17
P.M. Friday, September 10, 1993, with all Regents present except
Regents Foley and Whitley.
33. Establishment of a Board of Regents Committee on Athletics
Regent Lonnie Hammargren requested the establishment of
a Committee on Athletics. Ref. J is filed in the Regents'
Office.
Dr. Hammargren moved approval to establish a Regents' Com-
mittee on Athletics. Mrs. Price seconded.
Mr. Graves suggested that rather than establishing another
Regents' committee, a symposium or workshop be conducted
to address athletic issues. Since President Crowley serves
as President of the NCAA, it may be prudent to request him
to speak to the athletic issues.
President Crowley informed the Board that the standard
procedure for members of NCAA is to establish a Faculty
Advisory Committee that deals with athletics. UNR's Facul-
ly Advisory Committee advises the President on athletic is-
sues. He suggested having the institutions regularly make
a report to the Board of Regents on significant issues, such
as gender equity, financial limitations, academic require-
ments, etc.
Mrs. Price felt that a Regents' committee should be estab-
lished. It would give credence to this issue at the insti-
tutional level. Athletics is a nationwide issue and should
be addressed.
Dr. Derby stated that she did not feel comfortable conduct-
ing a one-time workshop on such an important issue. Mrs.
Berkley suggested placing an athletic item on the Board of
Regents' agenda every other meeting in order to develop a
dialogue and become better informed.
Interim Chancellor Richardson reminded the Board of its
discussion earlier in the day regarding the committee
structure and cautioned them in creating a new committee.
Some of the athletic issues could be addressed under al-
ready established committees; i. e., general equity by
Status of Women Committee, financial limitations by Budget
and Finance Committee, and academic requirements by Aca-
demic, Research and Student Affairs Committee.
Dr. Hammargren withdrew the motion.
Dr. Hammargren stated that the Board needs basic informa-
tion on athletics which could be acquired through quarterly
reports, and agreed with Interim Chancellor Richardson that
certain issues could be heard by the appropriate committee.
Mrs. Price withdrew the second to the motion.
President Crowley stated that the Faculty Advisory Commit-
tee at UNR is a very positive entity that addresses all is-
sues in athletics. He did not wish the Regents to reflect
an empowerment concern towards the Faculty Advisory Commit-
tee.
34. New Business
Mr. Klaich requested a job description for the Director
of Community College Affairs.
Mr. Klaich stated he had received a letter from the Interim
Chancellor regarding cost savings in the Chancellor's Of-
fice. Mr. Klaich requested that the Public Information
office not circulate the tabloid "Casino News" in the clip-
ping packets. Regents Graves, Eardley, Sparks and Gallagher
agreed. However, Interim Chancellor Richardson stated that
it is being circulated because it is reporting on the Re-
gents or higher education issues.
The meeting adjourned at 3:22 P.M.
Mary Lou Moser
Secretary of the Board
09-09-1993