Transcript The Board of Trustees of NC State University Responsibilities, Duties & Delegated Authority July 15, 2010

The Board of Trustees of
NC State University
Responsibilities, Duties &
Delegated Authority
July 15, 2010
The UNC System
• The University of North Carolina system is composed of 17
different “constituent institutions.”
• Each constituent institution has its own separate Board of
Trustees, to which the Board of Governors can “delegate any
part of its authority over the affairs of any institution….”
• Membership consists of 13 trustees – 8 elected by BOG, 4
appointed by Governor, and the Student Body President (ex
officio)1
The BOT’s Role
• The BOT is primarily meant to be a governing board.
• The Chancellor, meanwhile, is the administrative and executive head of
the institution and exercises complete executive control, subject to the
direction of the President. 2
• The Chancellor is responsible for carrying out the policies of the Board of
Governors and the BOT.
• Maintaining and respecting these boundaries is vital if the BOT is to be
effective and successful.
– See EFFECTIVE GOVERNING BOARDS: A GUIDE FOR MEMBERS OF
GOVERNING BOARDS OF PUBLIC COLLEGES, UNIVERSITIES, AND
SYSTEMS, at 37 (AGB Press 2010).
Fiduciary Responsibilities
• The BOT has a fiduciary relationship with the University
and must act
3
within the duties of good faith, loyalty and due care.
• Good Faith4
– Discharge duties honestly, fairly, and conscientiously.
• Loyalty5
– Avoid conflicts of interest and self dealing.
– The University comes first and should receive the full benefit of all
transactions.
• Care and Due Diligence6
– Be knowledgeable (Attend meetings, be engaged, know bylaws and
policies, know university mission, read all required materials)
– Be sure to maintain confidentiality.
Ethical Responsibilities
• University trustees are “covered persons” and are held to a high
ethical standard as detailed in the State Ethics Act, N.C. Gen. Stat.
Chapter 138. Periodic ethics education is mandatory.
• Avoidance of Conflicts of Interest (real and perceived)
– Should not knowingly use public position in an official action that will
result in financial benefit to yourself, your family, or a person or
business with which you are associated.
• Public Disclosure of Economic Interests (SEIs)
– Annual disclosure of personal and financial interest is important to
avoid potential conflicts of interest with the University.
Ethical Responsibilities
• Lobbying
– Not allowed to receive gifts from lobbyists.
• Gifts
– Should not knowingly, directly or indirectly, ask, accept,
demand, solicit, seek, assign, receive, or agree to receive
anything of value for yourself, another person in return for
being influenced in the discharge of official
responsibilities.
The BOT’s Sources of Authority
• General authority is granted by the following;
– N.C. General Statutes (N.C. Gen. Stat.), Chapter 1167
– The Code of the Board of Governors of the University of
North Carolina (The Code), Chapter 48
• More specific authority is delegated to the BOT by
the Board of Governors
– “The powers and duties of each board of trustees…shall be
defined and delegated by the Board of Governors.”
• N.C. Gen. Stat. § 116-33; see also The Code § 403(b), Policy
Manual Chapter 100.1, Appendix 1
The BOT’s General Duties
• Each Board of Trustees shall;
– promote the sound development of the institution within
the functions prescribed for it
– serve as advisor to the Board of Governors on matters
pertaining to the institution and
– serve as advisor to the Chancellor concerning the
management and development of the institution.
– have such other powers and duties, as shall be defined and
delegated by the Board of Governors.
• See N.C. Gen. Stat. § 116-33; see also The Code §
403(a) and (b).
Statutorily Derived Duties &
Authority
• Special Responsibility Constituent Institution designation
granted to NC State in 1991 pursuant to N.C. Gen. Stat. §11630.1,which gives the administration authority as delegated for
personnel, purchasing and capital projects, as well as day-today management of the institution’s operations.
• NC State’s purchasing authority is five hundred thousand
dollars ($500,000) pursuant to N.C. Gen. Stat. § 116-31.10.
Statutorily Derived Duties &
Authority
• Permitting Recruiter Access (N.C. Gen. Stat. § 116-33.1)
– If a BOT provides persons or groups which make students aware of
educational and occupational options access to its campus and
students, it must allow the same access to official military recruiting
representatives of the State and the United States.
•
Establish & Maintain an Endowment Fund and a Distinguished Professor’s
Endowment Fund
– Establish and maintain an endowment fund and appoint an investment board
to be known as "The Board of Trustees of the Endowment Fund of ______"
(here shall be inserted the name of the constituent institution). (N.C. Gen. Stat.
§ 116-36)
– Establish and maintain a Distinguished Professors Endowment Trust Fund to
function as a depository for private contributions and for the State matching
funds for the challenge grants.9 (N.C. Gen. Stat. § 116-41.15 and 116-41.17)
Statutorily Derived Duties &
Authority
• Campus Law Enforcement (N.C. Gen. Stat. § 11640.5)
– Each BOT may establish a campus law enforcement
agency and employ campus police officers and may
authorize mutual aid agreements.10
• Management Flexibility (N.C. Gen. Stat. § 11640.22)
– For senior personnel, tuition and fees, and information
technology.11
Statutorily Derived Duties &
Authority
• Tuition & Fees (N.C. Gen. Stat. § 116-40.22(c))
– Each BOT may recommend to the Board of Governors tuition
and fees for program-specific and institution-specific needs at
that institution…
• Payment of Tuition & Fees (N.C. Gen. Stat. § 116143(b))
– If students are unable to pay the cost of tuition and fees as they
become due, in cash, BOTs are authorized and empowered, in
their discretion, to accept the obligation of the student together
with such collateral or security as they may deem necessary and
proper…
Statutorily Derived Duties &
Authority
• Full Scholarship Students/Residency (N.C. Gen. Stat. §
116-143.6(a))
– A BOT may, by resolution adopted, consider as residents of
North Carolina all persons who receive full scholarships to the
institution from entities recognized by the institution and attend
the institution as undergraduate students. [note: 2010 legislation
eliminated athletic scholarships]
• Information Technology (N.C. Gen. Stat. § 116-40.22(d))
– Each BOT shall establish policies and rules governing the
planning, acquisition, implementation, and delivery of
information technology and telecommunications at the
institution.12
Statutorily Derived Duties &
Authority
• Traffic, Parking & Registration of Motor Vehicles (N.C.
Gen. Stat. § 116-44.4)
– A BOT may, by ordinance, prohibit, regulate, divert, control
and limit pedestrian or vehicular traffic and the parking of
motor vehicles on campus.13
• Cooperative Extension Service Employees (N.C. Gen.
Stat. § 116-33.2))
– The BOT of NC State University shall adopt personnel policies
governing the employment of the employees of the North
Carolina Cooperative Extension Service who are exempted from
certain provisions of Chapter 126 of the General Statute.
Duties & Authority Delegated by the
Board of Governors
• Management Flexibility to Appoint and Fix Compensation
(Policy Manual 600.3.4)
– For certain personnel actions pertaining to employees exempt from the
State Personnel Act, including approving the appointment and
compensation of SAAO Tier I, salary ranges that are not included in
the annual BOG study, approval of non-salary and deferred
compensation, and conferral of tenure. NC State’s plan was approved
and designation received on November 7, 2002.
• Personnel Policies (Policy Manual, Ch. 100.1, Appendix 1
(I)(c))
– The BOT may adopt personnel policies not otherwise prescribed by
state law, the Code, or policies of the Board of Governors, for
personnel in all categories of university employment.
Duties & Authority Delegated by the
Board of Governors
• Chancellor Selection and Assessment(Policy Manual,
Ch. 100.1, Appendix 1 (I)(c) and 200.4.2[G])
– In the event of a vacancy in the chancellorship, the BOT shall
establish a search committee whose task it will be to find
nominees for the position, and the BOT shall nominate persons
based on the committee’s report.14
• Academic Program (Policy Manual, Ch. 100.1, Appendix
1 (II))
– The BOT is responsible for ensuring the institution's compliance
with the educational, research, and public service roles assigned
to it by the Board of Governors.
Duties & Authority Delegated by the
Board of Governors
• Honorary Degrees, Awards & Distinctions (Policy
Manual, Ch. 100.1, Appendix 1 (IV))
– The BOT is responsible for approving the names of all
individuals on whom it is proposed that an honorary degree or
other honorary or memorial distinction be conferred by the
institution.
• Budget Administration (Policy Manual, Ch. 100.1,
Appendix 1 (V))
– The BOT shall advise the Chancellor with respect to the
development of budget estimates for the institution and with
respect to the execution and administration of the budget.
Duties & Authority Delegated by the
Board of Governors
Property and Buildings (Policy Manual, Ch. 100.1,
Appendix 1 (VI))
– BOTs are responsible for:
• maintaining a master plan for the physical
development of the University.15
• the acquisition and disposition of interests in real
property.16
• certain matters concerning campus capital construction
projects.17
Duties & Authority Delegated by the
Board of Governors
• Tuition, Fees & Deposits (Policy Manual, Ch. 100.1,
Appendix 1 (IX))
– BOTs shall:
• cause tuition, fees, and other necessary amounts to be collected from
each student and require the payment of advance deposits and
nonrefundable application fees as required.
• establish regulations concerning the acceptance of obligations of
students in lieu of cash.
• recommend to the President the amounts to be charged at the
constituent institution for application, athletics, health services,
student activities, educational and technology, retirement of debt
incurred for capital improvements projects authorized by the General
Assembly, course, and special fees.
Duties & Authority Delegated by the
Board of Governors
• Student Financial Aid (Policy Manual, Ch. 100.1,
Appendix 1 (X))
– Each BOT shall prescribe regulations for the administration of
certain scholarships and other forms of financial aid to
students.18
• Student Services (Policy Manual, Ch. 100.1, Appendix 1
(XI))
– Each BOT, upon recommendation of the Chancellor, shall
determine the type, level, and extent of student services (health
care, athletic programs, counseling, etc…) to be maintained for
the benefit of students at the institution.
Duties & Authority Delegated by the
Board of Governors
• Auxiliary Enterprises, Utilities & Miscellaneous Facilities
(Policy Manual, Ch. 100.1, Appendix 1 (XVI))
– Affected BOTs have authority and responsibility to adopt policies
applicable to the control and supervision of campus power plants,
water and sewer systems, other utilities and child development centers.
• Student Activities and Government, Intercollegiate Athletics
& Campus Security (Policy Manual, Ch. 100.1, Appendix 1
(XII), (XIII) & (XIV))
– The Chancellor is responsible for the establishment, supervision,
regulation, and approval of the above but only subject to such policies
as may be prescribed by the Board of Governors and the Board of
Trustees.
Duties & Authority Delegated by the Board of
Governors or Sub-Delegated by President
• Development of Patent Procedures (UNC Policy
Manual 500.2)
• Creation of Centers and Institutes (UNC Policy
Manual 400.5[R])
• Approve the establishment of an Early College High
School (UNC Policy Manual 400.6.1[R])
Duties & Authority Delegated by the
Board of Governors – Due Process
• EPA Employee Appeals (The Code, §611(2))
– If the Chancellor fails to accept a hearing committee’s
recommendation which is favorable to an EPA
employee or agrees with a committee
recommendation which is unfavorable, then an EPA
employee may appeal to the BOT, which is final.
• Grievance Committee Appeals (The Code, §607(6))
– If an administrative official or chancellor fails to make
an adjustment that is advised by a Grievance
Committee in favor of an aggrieved faculty member,
the faculty member may appeal to the BOT, which is
final.
Duties & Authority Delegated by the
Board of Governors
• Due Process Before Discharge or the Imposition of Serious Sanctions (The
Code, Section 603(9))
– A tenure or tenure-track faculty member facing dismissal or other
serious sanctions may appeal the chancellor’s decision to the BOT.
• Appealing Grievances (The Code, Section 501C(4) and 502D(3))
– Faculty, students, and staff have the right to appeal the disposition of
grievances based on procedures, rules, or regulations adopted by the
BOT to the Chancellor and then to the BOT.
– Where a student sanction may involve suspension or expulsion, an
appeal may be made to the BOT.
In Conclusion
1. The BOT is chiefly a governing board and
management/operations should be left to the chancellor
and senior administrators who are duly authorized to act
on behalf of NC State.
2. Always act with the duties of good faith, loyalty, and due
care with the best interests of NC State in mind.
3. Effective trusteeship is vital to the continuing success of
the University.
Questions, Discussion or Comments?