LITTLE ROCK — Loan to buy assets of CARTI approved
HOT SPRINGS - The University of Arkansas board of trustees Thursday approved plans for the University of Arkansas at Medical Sciences to borrow $9.5 million to purchase the assets of the CARTI branch on its campus.
The board previously approved the deal between the medical school and the radiation provider, which includes purchase of the building and machines and conversion of current employees to the UAMS payroll.
UAMS leaders decided to buy CARTI out of its on-site agreement after determining that it posed a competitive threat to the Winthrop Rockefeller Cancer Institute, also on-site.
The loan, with a term of up to 10 years and an interest rate of 1.9 to 2.2 percent, will be repaid with revenue collected as UAMS begins providing its own radiation therapy on-site.
The sale will be finalized June 30.
Ex-UALR dean’s case spurs review
HOT SPRINGS - The University of Arkansas board of trustees Thursday reviewed an audit that found that former University of Arkansas at Little Rock College of Business Dean Anthony Chelte filed for and received more than $15,000 in expenses he was not entitled to and failed to report leave amounting to about $16,346 in salary.
“We’re going to have some different procedures in place to discourage such abuses in the future,” said trustee Ben Hyneman of Jonesboro.
UALR is seeking reimbursement of $11,480 in duplicated, unauthorized or nonuniversity-related travel expenses from Chelte, as well as $16,346 he was paid for 182 hours of unreported leave that he took, accordingto audit findings
According to the audit, $8,762 of the $11,480 was money reimbursed to Chelte both by UALR and by other entities. The remaining $2,718.80 was for travel expenses that were unauthorized or not related to university business, the audit found.
Chelte has since resigned and UALR turned the audit findings over to the prosecuting attorney.
Trustee Jim von Gremp of Rogers, speaking about several recent critical audits of UA campuses, said chancellors need to be aware of how high-level employees like deans are using campus resources so they can hold them accountable to UA policies.
“While these are looked on as educational institutions, to the taxpayers, they’re businesses,” he said. “If the provosts of the chancellors don’t know what’s happening in their institution, that’s a problem.” UAPB probe leads
to audit changes
HOT SPRINGS - The University of Arkansas board of trustees changed its audit policies Thursday after an internal investigation at the University of Arkansas at Pine Bluff that led to an Arkansas State Police investigation and the firing of four campus employees.
The new policies require UA System auditors to inform supervisors and, ultimately, the trustees’ audit committee when they identify certain financial management issues on a campus.
Those issues include: unauthorized override of financial controls, nonresponsiveness to audit inquiries, inaccurate financial representations and missing or inaccurate supporting documentation.
The new rules also require campuses and auditors to take disputes over the auditing process to the audit committee for resolution.
Trustees first discussed the new rules at a previous meeting when they discussed the UAPB audit, which uncovered $700,000 in payroll and purchasing transactions that violated university spending controls at the Harrold Complex, a dormitory on the UAPB campus.
Because employees bypassed university rules for approving and documenting spending, auditors were unable to verify whether $497,532 in payroll expenses and $239,348 in purchasing expenses were made properly, the report said.
New boss at school for math, arts OK’d HOT SPRINGS - The University of Arkansas board of trustees approved on Thursday hiring Kentucky academic leader Corey Alderdice as the new director of the Arkansas School for Mathematics, Sciences and the Arts.
Alderdice is currently assistant director for admissions and public relations at the Gatton Academy of Mathematics and Science in Bowling Green, Ky.
He will replace Director Janet Hugo, who is scheduled to retire June 30.
Alderdice has a master’s in English and bachelor’s degrees in English and religious studies from Western Kentucky University. He is completing a doctorate in postsecondary education leadership from Western Kentucky.
Alderdice’s salary will be $110,000. He will receive a $10,000 raise upon the completion of his doctorate and a successful performance review.
Trustees also voted to grant Hugo emeritus status, an honorary title assigned to retiring employees.
$72 million bond
issue gets nod
HOT SPRINGS - The University of Arkansas board of trustees approved on Thursday a bond issue of up to $72 million that will finance several capital projects on the University of Arkansas at Fayetteville campus.
That’s an increase from $46.2 million cited by university officials in March when they requested approval of a resolution of intent to sell bonds to pay for campus construction and property acquisition.
The bonds will pay for the conversion of Hotz Hall back to a dormitory; construction of Founders Hall, a dormitory adjacent to Brough Commons dining hall, which is also being expanded; and construction of an office building forUniversity Housing.
It will also fund the purchase and renovation of an office complex in north Fayetteville that would provide space for employees who either have been displaced by campus construction or whose jobs don’t have to be on campus.
Arkansas, Pages 13 on 05/25/2012