Regents question
institute’s operationIssues arise as the
UH Foundation is about
to start a large fund-raiser
As the University of Hawaii Foundation begins a major fund-raising campaign to mark the centennial of the university in 2007, the Board of Regents is raising questions about how the foundation spends university money and why the board is not getting more information about the campaign and the operation of the private, nonprofit institution.
The regents were briefed on the Centennial Campaign yesterday at a meeting on the UH-Manoa campus. The foundation hopes to raise $175 million to $200 million by the 100th anniversary for projects to benefit all of the university and community college campuses, although the exact goal has not been set and the projects have yet to be selected.
State Auditor Marion Higa has also threatened to subpoena records from the foundation in connection with an audit of how it spends $2.3 million of university money a year.
Higa said yesterday she is still negotiating with the foundation over the documents.
Last week, Chief Financial Officer Bill King said the foundation is making progress in turning over the documents but has concerns about protecting the names of donors.
Regents voted to have university legal counsel Walter Kirimitsu research the university's contracts with the foundation and let them know what information regents are entitled to.
"We are not the enemy; we are in some ways their primary client, and on another level we are those that have ultimate fiduciary responsibility," said regent Kitty Lagaretta. "We contracted them to use our name, our resources, our contacts to ask for money on our behalf, so I feel like we need to know what's going on."
David McClain, the university's vice president of academic affairs, told the board that the campaign is in a "quiet phase." He said a consultant recently completed a feasibility study to gauge general impressions of the university, test the appeal of campaign themes and measure the likelihood of donors supporting the campaign.
All of the campuses have also submitted proposals for what projects they would like to see funded by the campaign. The university and the foundation are trying to determine which projects will be selected.
McClain said the foundation will be approaching large donors next month with a goal of raising 45 percent of the total campaign goal before a large public campaign in 2005.
But regent Jane Tatibouet raised concerns at the meeting about why the fund raising is starting next month when the board has not been told what the campaign themes are and where the money being raised will go.
"The train is running down the hill, and the board hasn't yet voted on the goals and purpose of the campaign," Tatibouet said.
In executive session the board also gave approval to university President Evan Dobelle to give notice that the contract for J.R. "Wick" Sloane, the university's vice president for academic affairs and chief financial officer, will not be renewed. Sloane has one year left on his $227,000-a-year job.
Sloane and his wife, UH Foundation President Betsy Sloane, were recruited by Dobelle to come to the university shortly after Dobelle was hired in 2001.
Earlier in the day, the regents voted in public session to reappoint 28 managers and executives. The regents noted in a statement that the reappointments were at existing salaries until the faculty gets a contract with the state.