‘This has taken a toll on everybody’

Legislators on the state’s Joint Performance Review Committee spent five hours Tuesday hearing statements and asking questions of current and former top staff members at the University of Arkansas at Fayetteville, including Chancellor G. David Gearhart.

It was the third legislative hearing since September about deficit spending and related issues regarding the UA-Fayetteville Division of Advancement, which oversees fundraising.

State Sen. Keith Ingram, D-West Memphis, asked Gearhart whether Gearhart thought he had enough public confidence remaining to lead the university successfully. Following are excerpts from their exchange.

INGRAM: This has taken a toll on everybody, the Legislature, everybody at this table, and particularly the Advancement Division, you. … [Concerning] these series of events that have taken place, to me any one single event would not be of a major nature. But when taken in context - and I’m just going to try just very quickly to summarize what we’re dealing with.

When the shortfall was discovered, we found out that there were accounting practices that led to concealing the deficit.

We found a coincidence that as soon as [fundraising division budget officer Joy] Sharp left, documents began to be shredded.

We received reports from employees of the division not to create any new … documents [requestable under the state Freedom of Information Act].

There began a blaming of employees at the Advancement Division that were either hired by yourself or promoted by yourself.

Reassignments have taken place. There has been pressure to retire, dismiss or negotiate settlements of employees, with nondisclosure clauses.

There was a misapplication of a major donor’s restricted fund to an unrestricted account. … Subsequently that major donor on the board of trustees resigned from the university board.

Chancellor, you picked a fight with the statewide newspaper. I mean, you sent the letter in that promoted a fight with the [Democrat]-Gazette.

So one constant in this … has been you, chancellor. I guess my last and only question is this: With all of this combined, do you think that you have the confidence to continue to lead with all the things that have gone on?

GEARHART: Yes sir, I do … Will you permit me the opportunity to respond to your accusations?

INGRAM: I didn’t make any accusations. I just stated everything succinctly. … I was just trying to put it into context of what we’re dealing with. Right, wrong or indifferent, there have been so many things that have come out of this. This has led to a major hearing that none of us in this room wanted to take part in, I will assure you.

GEARHART: I certainly agree that it’s been an embarrassment. I certainly agree that it’s been too bad for all the people involved. But I really must take exception with the comments that you made. … I’d be delighted to go through each one of them. I think you have made some statements that are just simply inaccurate. And I think we can show you that…

INGRAM: Whether it is or isn’t, chancellor, it is all these things in one pile. As I said in my first statement, any one of these things wouldn’t even be noticed. It’s the cumulative effect of all these. … This has been devastating public relations for the University of Arkansas.

GEARHART: I would also say to you that all I can do is tell you the record of the university. Yes, I’m embarrassed by all this. Yes, I don’t think it’s a good thing for anybody. And I take responsibility, certainly, at the end of the day. I was the chancellor.

But I can also tell you that we have the highest enrollment in the history of the university. I can also tell you that we are raising millions of dollars every year. I can also tell you that I have received an avalanche of support from people around the state. I can also tell you that we’ve renovated or built new a number of buildings on campus. I can also tell you that our revenue at the university is the highest it’s ever been and we don’t have a fiscal problem.

Yes sir, I’m embarrassed. Yes sir, these things happened and I’m sorry they happened. But I have to look to my board and to my president to determine if I’m still doing a good job.

And I believe, sir, that I am.