The institution has a chief executive officer whose primary responsibility is to the institution and who is not the presiding officer of the board. (See the Commission policy “Core Requirement 2.3: Documenting an Alternate Approach.”)
SACSCOC Off-Site Committee’s Response
Non-Compliance
A change has recently taken place with the Chancellor of the institution now also serving as President of the LSU system. This is not a unique model of governance and similar arrangements are also in place at other institutions. The institution has communicated with SACSCOC and has documented that it has received concurrence with such an alternative approach (SACSCOC letter of 2/20/2013).
Information has been provided in the report regarding the legal authority of the Board of Supervisors to appoint both the Chancellor of the institution, as well as the President of the System (LSU Board of Supervisors Bylaws and Regulations). Relevant sections of the Board of Supervisors Bylaws and Regulations (Article VII; sections 2 and 4) and the University Policy Statements (Policy Statement 50) were also provided outlining the authority and responsibilities for both positions. An analysis of these sections clearly indicates that the individual in place is indeed the chief executive officer of the institution with appropriate authority and responsibility.
There is no specific information included in the report regarding the time commitments of the individual holding both position to the duties of each position. Only a general statement is included indicating that the current holder of both positions is “clearly delineating his roles” but no supporting evidence or additional information is provided. Furthermore, it is stated in the report that “by adhering to the LSU Board’s Bylaws and Regulations and other established policies and procedures, conflicts of interest are avoided,” but no specific references are provided and it is not clear how this is achieved for the two position in question.
LSU A&M’s Response
The SACSCOC Off-Site Committee notes the following:
A change has recently taken place with the Chancellor of the institution now also serving as President of the LSU system.
They also state that LSU
has communicated with SACSCOC and has documented that it has received concurrence with such an alternative approach (SACSCOC letter of 2/20/2013) [1].
The Off-Site Committee also notes the following:
Information has been provided in the report regarding the legal authority of the Board of Supervisors to appoint both the Chancellor of the institution, as well as the President of the System (LSU Board of Supervisors Bylaws and Regulations). Relevant sections of the Board of Supervisors Bylaws and Regulations (Article VII; sections 2 and 4) and the University Policy Statements (Policy Statement 50) were also provided outlining the authority and responsibilities for both positions. An analysis of these sections clearly indicates that the individual in place is indeed the chief executive officer of the institution with appropriate authority and responsibility.
The review committee noted that the leadership model of a singular institutional and system executive is not usual and requested information on how time is spent pursuing the goals of both positions.
Distribution of Time Spent as Chancellor and as President
Calendar entries for F. King Alexander from June 24, 2013 to December 31, 2013, provide evidence for the distinct time commitments of Dr. Alexander as Chancellor of LSU and as President of the LSU System [2]. The entries in purple indicate fulfillment of duties as chancellor, and the entries in gold indicate events related to his role as president.
To demonstrate adequate division of time, excerpts from the calendar entries provided below are based on the job responsibility. As chancellor, Dr. Alexander visited several of the LSU colleges and units and participated in a number of academic leadership activities within the first three months as indicated below.
These excerpts from Dr. Alexander’s calendar for a relatively brief period demonstrate that provides significant time and attention to the academic aspect of his role as Chancellor of LSU. Not included on the calendar for this period are numerous informal conversations and activities that did not require nor warrant calendar entries, such as approval of promotion and tenure recommendations, approval of requests for a sabbatical, and work on an amendment of the student code of conduct. Additionally, Dr. Alexander was engaged in conversations and interviews of candidates for deanships.
Calendar entries pertaining to a variety of activities demonstrate Dr. Alexander’s commitment to the goal of building rapport with LSU students.
Dr. Alexander gave numerous interviews to student media such as Tiger TV and The Reveille, but these duties are generally not documented in the calendar entries. Not included in the calendar entries are late night activities. For example, Dr. Alexander also served in the pre-finals midnight breakfast offering students free dinner.
According to PS 115 [3], the chancellor is the chief fundraising officer of the university, and Dr. Alexander has expended considerable time in tending to this responsibility. Among the calendar entries are several that relate to fundraising.
Football games are tremendous donor relations events for LSU as the University Suite typically hosts about 60 donors per game. These donors may be invited by the college deans or may have given significantly to other institutional entities or programs. Not demonstrated on the calendar but constituting significant effort is Dr. Alexander’s coordination of donor-relation activities currently associated with three non-profit affiliates.
Numerous other activities in which Dr. Alexander participated as chancellor include a meeting with the Athletic Department to discuss ticket prices (August 15 and subsequent follow-up conversations), to recruit student-athletes (September 21), and to address the coaches at the start of fall courses (August 26); hosting administrators from German universities; and attending a Thanksgiving event for international students. He also reviewed the LSU self-managed “LSUFirst” benefits plan (September 13) and consequently transferred management of the plan from the LSU System to the LSU Office of Human Resource Management (November 2013).
A number of “cross-over” activities pertain to both the chancellorship and the presidency, with most involving the areas of external and governmental affairs.
Dr. Alexander performs numerous activities exclusively associated with his responsibilities as President of the LSU System, including campus visits during the last six months, as denoted below.
Subsequent to these meetings, Dr. Alexander has met with every chancellor and visited the campuses again.
Dr. Alexander also has met in recent months with the members of the LSU Board of Supervisors as well as with some members of the Louisiana Board of Regents. Over the past 18 months, the LSU System privatized its hospital system (lease arrangement), and there have been numerous conversations with private partners and potential partners pertaining to that issue (e.g., August 13 meeting with the CEO of Our Lady of the Lake College, Baton Rouge)
The primary question asked by the Off-Site Committee is whether the dually appointed chancellor and president can adequately arrange the time required for attending to the duties of both posts. The above discussion and relative calendar entries provide an affirmative answer to this question. .
Avoidance of Conflict of Interest of Chancellor/President in Relation to Financial Resources
The SACSCOC Off-Site Review team also indicated that information was lacking in how existing policies and procedures avoid conflict of interest between the two roles. The most pertinent category is financial resources, in terms of both operating budget and capital investments. The information provided below for the purpose of demonstrating the avoidance of conflict of interest involves examples of actions related to both prior to and after Dr. Alexander’s arrival.
The funding of each institution is through the legislative appropriation process, with the total appropriation going to the LSU Board of Supervisors for allocation to institutions within the LSU System. Subsequent to the completion of the legislative session, the chancellor of each institution presents the al proposed budget that outlines the intended use of state appropriations, tuition and fees, federal funds, interagency transfers (e.g., intergovernmental contracts), and statutorily dedicated funds for particular services [4].
The Finance, Infrastructure & Core Development Committee of the Board of Supervisors reviews a preliminary budget for recommendation to the LSU Board of Supervisors. The preliminary budget is based on requested appropriations for higher education. The Board of Supervisors votes to approve the preliminary budget. The board process of preliminary budget approval was last conducted on October 25, 2013 [4].
The Board of Regents, the coordinating body of Louisiana’s public postsecondary education system, includes four management boards. The Board of Regents is very limited in its constitutional authority, but Article VIII, Section 5(D)(5) states this important power:
To require that every postsecondary education board submit to it, at a time it specifies, an annual budget proposal for operational needs and for capital needs of each institution under the control of each board. The Board of Regents shall submit its budget recommendations for all institutions of postsecondary education in the state. It shall recommend priorities for capital construction and improvements.
On October 23, 2013, the Board of Regents approved a preliminary FY2014-15 formula funding recommendation consisting of $76 million for two- and four-year institutions that are included in the funding formula computation, including LSU [5]. The request is submitted to the Division of Administration, the primary administrative unit of the executive branch, for consideration in the governor’s Preliminary Executive Budget proposal [5].
By law, the governor must submit a Preliminary Executive Budget [6] to the legislature 45 days prior the Regular Session [7] (as the governor did on January 24, 2014) [25]. From that proposal, the Board of Regents provides an initial determination of the funding formula, producing an allocation to each institution. (Because the FY2014-15 Preliminary Executive Budget was produced so near to the date for submitting this response, a previous year will be used as an example) [8]. From that point, the budget process is regimented and tightly controlled, with the LSU Board of Supervisors possessing the constitutional and statutory authority to direct budgets for the institutions of the LSU System, including LSU [9] [10] [11].
Once the legislative session is completed, the Division of Administration, via an “appropriation letter,” informs each state agency and higher education management board of its official state appropriation for the ensuing fiscal year [12][20]. The appropriation letter specifies appropriated state general funds, total budget authority, and number of authorized positions. However, Article VIII, Section 12 of the Louisiana Constitution [10] specifies that appropriations are made to the higher education management boards, [13] and Revised Statute 17:3218 [11] permits these boards to manage their systems, meaning that the board controls the money and may allocate it within the system as it chooses. The LSU System thus may issue revised budgets for final approval [14]. For the FY2012-13 budget, Interim President Jenkins distributed a proposed allocation to the LSU System in accordance with the bylaws and board resolution of March 16, 2012 [15][26]. President Alexander did similar distribution for FY2013-14, allocating according to a board resolution [16]. The legislature also appropriated $10 million to each public higher education management board for FY2013-14. The allocation of those funds was made generally on a pro rata basis, except for an adjustment to three other LSU System institutions and a ”contribution” to another [17]. While LSU received a plurality of the funds, it received $166,321 less than its pro rata share so that other institutions could be assisted with pay adjustments, thus demonstrating that the president may balance the needs of the university with those of the system.
The process for budget approval was consistent both before and during Dr. Jenkins’ term in both roles, and has remained consistent during Dr. Alexander’s presidency. In August 2011 (prior to Dr. Jenkins’ term), the board adopted a budget for LSU for FY2011-12 [18]. The following year, using the same process, the board adopted the budget for LSU in September 2012 for FY2012-13 [19]. In approving the budget, the board’s Finance, Infrastructure and Core Development Committee, chaired by member Mr. Ronald Anderson, considered and recommended approval of the budget for FY 2012-13, with the inclusion of language that any significant alterations in the budgets of the institutions must be reported quarterly. The same process was continued in September 2013 with the approval of the FY2013-14 budget [16], with the same language included in the budget resolution. The resolution intends for the board to monitor significant changes in the budget:
BE IT FURTHER RESOLVED that each campus and hospital shall prepare a quarterly financial report that is in accordance with a format approved by the President. The format of the report will include the following:
1. The transfer of funds from an academic to a non-academic area.
2. The transfer or significant failure to expend funds from any special programs approved by the Board or identified in the budget preparation narrative.
3. The transfer of funds from major budget categories to another when such transfer exceeds twenty percent (20%) of the smaller category.
4. Any significant changes in the budget that should be brought to the attention of the President and Board.
5. An explanation of any significant reduction in anticipated revenues.
The board’s committees constitute a separate policy and decision-making level about the President of the LSU System which have authority over the System and institutions budgets. Their active involvement in the design, allocation, and approval of the fiscal operating budget mitigates the potential for partiality or conflict of interest on the part of the president.
The LSU System Appropriation Letter also includes the number of state-funded positions authorized by the legislature, referred to in Louisiana as the “table of organization” or T.O. As demonstrated in the “Faculty and Administrative Appointments” section of this report, the positions are appropriated just as funds are, with an allocation made to each institution of the system [12][20].
Another example of the Board’s oversight of fiscal matters relative to the individual institutions is provided in its recommendations for the 5-year capital outlay budget request [21]. The board’s Property and Facilities Committee, chaired previously by board member Raymond J. Lasseigne, reviewed the capital outlay requests from each institution and prepared the system’s priorities. The resolution that approved the budget request authorizes the president to make changes to the request “as circumstances dictate,” within certain limits, but such changes must be reported to the board [27].
BE IT FURTHER RESOLVED, that William L. Jenkins, LSU System President (Interim), be and he is hereby authorized to make adjustments as necessary in this request as circumstances dictate, including technical corrections, increasing or decreasing the amount requested for individual projects by not more than twenty percent (20%) of the amount approved in this resolution, combining or renaming projects and/or changing sources of funds and to add self-generated projects with individual project costs of less than $1 million without further approval by the Board, provided, however, that such project additions be reported to the Board.
A similar resolution was approved in September 2013. The board’s Facilities Committee, chaired by Rolfe McCollister, recommended a capital outlay budget for FY2014-15. The board approved that recommendation [22] with language identical to the previous resolution.
BE IT FURTHER RESOLVED, that F. King Alexander, LSU System President and Chancellor, be and he is hereby authorized to make adjustments as necessary in this request as circumstances dictate, including technical corrections, increasing or decreasing the amount requested for individual projects by not more than twenty percent (20%) of the amount approved in this resolution, combining or renaming projects and/or changing sources of funds and to add self-generated projects with individual project costs of less than $1 million without further approval by the Board, provided, however, that such project additions be reported to the Board.
Changes that exceed those outlined in the budget approval process require review and approval by the LSU Board of Supervisors. In this manner, the board allows the president the flexibility to manage the budget request, but nevertheless controls conflict of interest on the part of the president by requiring all changes to be reported to or approved by the board. It should be noted that in 2012 the top ranked project for LSU was ranked only third overall by the LSU Board of Supervisors, thus indicating relative impartiality with respect to the institutions that compose the system. In September 2013, an LSU (Nicholson Gateway) project was ranked as the top new project, due largely to the timing associated with the private partnership needed to complete the project for graduate and married student housing.
The LSU Board of Supervisors submits the approved projects to the Board of Regents, the state’s higher education coordinating board, its recommendations for capital outlay projects for all institutions within public postsecondary education [21][23]. The Board of Regents then compiles a recommendation that ultimately is submitted to the Louisiana Division of Administration [24].
In his role as Interim President, Dr. Jenkins worked and Dr. Alexander works within the policies and procedures of the LSU Board of Supervisors and relevant state laws. As the system president, Dr. Alexander recommends to the board the LSU System budget and allocations. However, as documented, the board is organized with specific committees which review and recommend the final operating budgets for each institution. The board-level review of recommendations for the LSU System ensures that partiality and conflict of interest on the part of the president is controlled.
Further evidence that Dr. Alexander keeps the respective roles of chancellor and president separate pertains to the completion of duties and responsibilities. Dr. Alexander maintains a Chancellor’s Office staff and budget [28]. The Chancellor’s Office budget shows that half of Dr. Alexander’s salary is paid through the university budget, along with five other staff members who are employed in the office. The budget also includes funding for the Faculty Athletic Representative, a position required by Policy Statement 110 to assist in maintaining institutional control of athletics [30]. This budget was approved by Dr. Alexander [31]. The budget was accepted by Jason Droddy, who is also performing duties as the executive assistant and has signature authority for office budget operations [32].
Like many institutions, LSU requires a new central administrative computing program typically called an enterprise resource planning (ERP) system. The current mainframe-based legacy system needs to be replaced with a newer system that can handle financial and personnel records and transactions. To initiate the process, Dr. Alexander approved a list of guiding principles that would give direction to the team establishing the procurement process (requests for information, requests for proposals, etc.) and to the team analyzing the feedback [33].
Though extreme weather events are infrequent, institutional leaders must make decisions to close a university for extreme weather events. On January 27, 2014, Dr. Alexander decided to close the university due to rain and ice caused by Winter Storm Leon [34]. His decision only pertained to LSU. Subsequent to his announcement, Dr. Alexander informed the campus via a broadcast message explaining the situation and informing the LSU community how it could acquire more information [35].
The Chancellor is also responsible for policies related to students. On January 14, 2014, Dr. Alexander approved a revision of the Student Code of Conduct, a policy outlining academic and behavioral rules [29].
![[1] Feb. 20, 2013 Response from SACSCOC concerning President of the LSU System.](https://w.taskstream.com/Content/css/Global/Images/Icons/attachment.gif){kind=icon}
[1] Feb. 20, 2013 Response from SACSCOC concerning President of the LSU System.
[2] Calendar Entries for F. King Alexander from June 24, 2013 to December 31, 2013
[3] LSU Policy Statement 115: LSU Fund-raising, Section E Fundraising Coordination
[4] LSU Board of Supervisors October 2013 Agenda and Minutes – Item 10C/10C1
[5] Louisiana Board of Regents approved preliminary FY2014-15 formula funding recommendation
[6] Louisiana Revised Statute 39:34: Executive Budget
[7] Louisiana Revised Statute 39:37: Executive Budget Distribution
[8] Board of Regents Preliminary Formula Request, FY2012-13
[9] LSU Board of Supervisors, Constitutional Authority, Article VIII, Section 7
[10] LSU Board of Supervisors, Constitutional Authority, Article VIII, Section 12
[11] LSU Board of Supervisors, Revised Statute, R.S. 17:3218: Authority of System Boards
[12] LSU Board of Supervisors Appropriation Letter for FY2013
[13] Board of Regents FY2012-2013 Operating Budget Request
[14] LSU System Office Instructions on Submission of Revised Budgets for Final Approval
[15] LSU Board of Supervisors’ Finance, Infrastructure and Core Development Committee Recommendation on Operating Budget, Item 11C1, March 16, 2012
[16] LSU Board of Supervisors’ Finance, Infrastructure and Core Development Committee Consideration of 2013-2014 Operating Budget, September 6, 2013
[17] FY 2014 One-Time Appropriations Distribution Letter
[18] LSU Board of Supervisors Budget Approval for LSU, Item 14C1, August 26, 2011
[19] LSU Board of Supervisors Agenda and Minutes, Finance Infrastructure and Core Development Committee Recommendation on Operating Budget, Item 11B2, September 7, 2012
[20] LSU Board of Supervisors Appropriation Letter for FY2014
[21] LSU Board of Supervisors 2012-13 Capital Outlay Request
[22] LSU Board of Supervisors September 2013 Agenda and Minutes, Capital Outlay, Item 12C5, September 7, 2013
[23] LSU System Submission to Regents for Capital Outlay, 2014-15
[24] Board of Regents Approval of Capital Outlay Recommendation, 2013-14.
[25] Governor’s Preliminary Executive Budget, FY2014-15
[26] LSU System Operating Budget FY2012-13 Signed by President W.L. Jenkins
[27] LSU Board of Supervisors Minutes, Facilities and Property Committee Recommendation on Capital Outlay, Item 11C3, September 7, 2012
[28] LSU Chancellor’s Office Budget, FY2013-14
[29] 2014 Approval by Dr. Alexander of revised Student Code of Conduct
[30] Policy Statement 110 requiring a Faculty Athletics Representative
[31] Policy Statement 110 Review Page and Approval by Dr. Alexander
[32] Signature Authority for Jason Droddy on Office Budget
[33] Enterprise Resource Planning (ERP) Guiding Principles Statement
[34] Message to Campus about Winter Storm Leon
[35] Notification of Dr. Alexander’s Decision to Close due to Leon
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