ASU System chief speaks to audit mess; though chancellor’s gone, school still strong, he says

JONESBORO -- Arkansas State University System President Chuck Welch tried to allay faculty fears Wednesday about fiscal mismanagement and retribution for any involvement in an internal audit that led to ASU-Jonesboro Chancellor Tim Hudson's resignation earlier this month.

Welch spoke to about 400 people at the annual faculty conference meeting on the ASU campus and urged them to contact him anytime they have questions about the university and its practices.

"While we have had some challenges over the last few weeks, our university has never been in a stronger position than it has been right now," Welch said.

Hudson resigned Aug. 2 after serving four years as the ASU-Jonesboro chancellor after an ASU audit that revealed a study abroad program directed by Hudson's wife, Deidra Hudson, was unorganized and students paid for trips using a PayPal account.

Deidra Hudson, who worked part time and earned $28.36 an hour, resigned from her position in July.

The audit showed that Tim Hudson advocated to make the study abroad position full time for a yearly salary of $50,000. When Hudson learned that the university policy prohibited him from hiring his wife because he was in charge of the department for which she was applying, he asked the university to withdraw the position.

Welch spoke for about an hour Wednesday, saying he wanted to clarify some "information that was not quite accurate."

He said the internal auditors received a tip in March about the study-abroad program and that he obtained the audit's findings July 22.

He apologized to some faculty who participated in the audit and asked to remain anonymous, but whose names were released anyway.

"We're sorry for that," Welch said. "By doing this, our ability to get open and transparent information has been hindered."

Welch said he intends to hire a "long-term" interim chancellor for the academic year rather than begin an immediate search. The university named Lynita Cooksey, provost and vice chancellor for academic affairs and research, as the interim chancellor.

Welch said he hopes to eventually hire someone externally who has had experience as a university chancellor or president.

"We need a healing process for the future," he said.

Welch also responded to criticism of his own administration, saying he "took a beating in newspapers."

"I will make decisions every day that won't sit well with some," he said. "I know some didn't like my predecessor, me and the next one we will have. I'm just going to keep doing my job."

Cooksey opened the meeting, which was held in the ASU Reng Student Union, and talked about ASU's future. She did not mention Hudson.

However, ASU Vice Chancellor for Finance and Administration Len Frey slipped when thanking Cooksey for her introduction of him before he outlined building projects on the Jonesboro campus. Frey called Cooksey "Dr. Hudson" before quickly correcting himself.

Erik Gilbert, an ASU-Jonesboro history professor who recently wrote an opinion piece for the Jonesboro Sun that was critical of the ASU System, attended Tuesday's meeting. Welch responded to the opinion piece on an ASU server accessible to all faculty members.

"It was a very effective speech," Gilbert said. "It was well-delivered and certainly professional."

Gilbert said he didn't want to speak for other faculty members if Welch was successful in allaying any fears about wrongdoings and boosting faculty morale.

"This should be about moving the university forward rather than making this some personal thing between me and Chuck," he said.

As Welch concluded his speech, he urged faculty members to call or email him with any questions.

"Lessons have been learned," he said. "I am committed to being aggressive and committed to growing our university."

State Desk on 08/18/2016

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