The official minutes of the University of South Carolina Board of Trustees are maintained by the Secretary of the Board. Certified copies of minutes may be requested by contacting the Board of Trustees’ Office. Electronic or other copies of original minutes are not official Board of Trustees' documents.

The Executive Committee of the University of South Carolina Board of Trustees met on Monday, November 13, 2000, at 3:00 p.m. in Room 206-B of the Osborne Administration Building.

Committee members present were: Mr. Mack I. Whittle, Jr., Chairman; Mr. Herbert C. Adams; Mr. James Bradley; Dr. C. Edward Floyd, via telephone; Mr. William C. Hubbard; and Mr. Michael J. Mungo. Trustee Darla D. Moore was also present.

Others present were: President John M. Palms, Secretary Thomas L. Stepp, Vice President and Chief Operating Officer J. Lyles Glenn, Interim Director of Budgets Robert E. Bugbee, Media Relations Representative Mr. Jason Snyder, and Assistant to the Secretary Tammy P. Hyatt.

Chairman Whittle called the meeting to order and asked those present to introduce themselves. He stated that the agenda had been posted and the press notified as required by the Freedom of Information Act. Mr. Snyder reported that no representatives of the media were present. Chairman Whittle noted that the agenda had been distributed to the Committee and that a quorum was present.

Mr. Whittle then called on President Palms to report on the budget and status of the budget office in light of the prior resignation of the Vice President for Business and Finance, John L. Finan. Dr. Palms reintroduced Mr. Robert E. Bugbee, explaining his distinguished career as a financial official of the University of Georgia and his current appointment as Interim Director of Budgets.

Dr. Palms reported that the current budget was in good shape, that all Deans had been informed that their budgets as projected at the beginning of the year were secure and that the administration was working to achieve approximately $2.5 million in funds which would allow the institution to expend the full budget approved by the Board during the fiscal year. Spring semester enrollment would be a major factor in revising revenue projections in order to determine expenditure limits. The handling of fringe benefits had been changed in that individual schools and departments would now be responsible for paying the fringe benefits associated with summer school salaries, performance salary adjustments, and below the line projects. Fringe benefits would no longer be included in departmental "carry forward" funds at the end of each fiscal year.

Dr. Palms concluded his remarks by reporting that the state budget for FY 2002 would be very tight and that this had been confirmed to him by the Governor.

Mr. Whittle and Ms. Moore asked questions about the transition to a new Vice President for Business and Finance including whether or not a search firm should be employed to assist in the process and whether or not a transitional audit should occur. Mr. Mungo suggested that Mr. Bugbee report to the Board in December on his analysis of the budget office and on its standing before further consideration be given to these matters.

The Committee discussed at length the types and frequency of institutional financial reports that would be useful to the administration and the Board. Mr. Bugbee reported that he was working with Mr. Stepp to refine a suggested list of reporting procedures. Mr. Stepp reported that he was soliciting input from all members of the Executive Committee about the content and frequency of reports which would be helpful to the Board. Mr. Whittle urged members to send Mr. Stepp any suggestions of items, frequency, or format that they would like to see in future budget reports.

Ms. Moore noted that in addition to filling key vacancies, the University should review its financial systems. Mr. Bugbee and Mr. Glenn agreed. Mr. Bugbee noted that the "data warehouse" was providing solid information but that additional systems to interpret the data more effectively could be useful.

Dr. Palms stated that he would distribute a draft listing of capital needs to be requested from the Legislature to the Committee for their input. Other legislative initiatives were discussed, and it was agreed, at the urging of Dr. Floyd and others, that careful coordination of efforts and close communication would be required to work with the General Assembly effectively during the following year. The needs of the research institutions, as differentiated from other Universities in the state, were discussed as was the need for support to the University to handle potential enrollment increases stemming from scholarship funds likely to be made available from the lottery. Dr. Palms reported that he had met with the Governor to discuss the impact of forthcoming lottery funds on the University. The Governor's plan would be distributed to the Committee for information.

Mr. Hubbard asked about the status of the establishment of procedures to enact the goals adopted by the Board at its retreat. Mr. Adams suggested that the administration provide a status report and proposed plan for discussion at the meeting on December 1st. Chairman Whittle directed that his request be added to the agenda for that meeting of the Executive Committee.

There being no further business for discussion, Mr. Whittle adjourned the meeting at 4:15 p.m.

Respectfully submitted,
Thomas L. Stepp
Secretary