College of DuPage Reform Accomplishments

Investigations

The Board voted to fund a performance audit by Illinois Auditor General, fulfilling a campaign promise to do so and overcoming prior board obstruction of the General Assembly-mandated audit.
The Auditor General’s office was welcomed on campus by the Board chairman and the acting interim president.
Implemented most High Learning Commission recommendations prior to initial visit and devaluation.

Transition Team

The Board authorized and initiated the COD’s first comprehensive Transition Team study and report, led by Northwestern University Professor Don Haider and a blue-ribbon set of committee chairmen. The Transition Team determined COD’s progress to stated strategic goals, and Board action, especially regarding Board Policies, that would speed COD’s progress.

Budget and Finance

In conjunction with AlixPartners, identified more than $160 million in non-compliant investments by COD in the last twelve months. $2.4 million in adjustments to the bond proceeds accounts, caused by earlier improper categorization and irregular reconciliations.
AlixPartners brought investment accounts into compliance with applicable law or policy. It increased the accuracy of COD’s reporting. It moved the College toward a unified data source for COD’s approximately $270 million in assets.
AlixPartners suggested an investment manager model to ensure compliant investment choices, accurate reporting and increased investment performance.
AlixPartners identified significant compliance, reporting and performance issues in a report to the Board on August 13, 2015.

2015-12016 Budget

The Board announced its intention to cut COD’s property tax levy by five percent and to cut tuition by $5 per credit hour for the 2015-2016 school budget.
The Board created and funded a $6.85 million special compliance account in the 2015-2016 budget to identify and pay costs arising solely from improprieties.
The Board created a Budget Committee, which held COD’s first open budget hearings 2016, in advance of the formal, noticed public hearing prior to final adoption.
The Board tightened financial controls by requiring multiple signatures for checks over $25,000.
The Board suspended unlimited travel and entertainment expense reimbursements for Trustees.

Waterleaf Restaurant

The Board suspended all internal “house” accounts at Waterleaf Restaurant and the Wheat Café.
The Board decided August 13, 2015 to close Waterleaf Restaurant as such, and to repurpose its space into student education uses.

Board Structure

The Board established permanent Academics, Budget and Audit committees, as well as ad hoc Presidential Search and Waterleaf Restaurant committees.
The Board questioned staff about virtually all contracts proposed for adoption, including especially regarding competition in staff’s selection process. The Board has sent numerous proposed contracts back for additional work before final consideration.
In COD’s first open and transparent legal service acquisition in memory, the Board made a formal request for qualifications for the provision of legal services.
The Board revised, proposed or implemented Board Policies to prevent scandals and improprieties outlined below.
The Board hosted several presentations by COD’s distinguished educators and one notable alumni. The Board heard briefings on COD’s leading meteorology program, Medic-to-LPN program and a talk by a successful author who credits COD for a significant part of his education.

Transparency and Openness

The Board released to the public the internal audit of investment practices and released WDCB fraud report.
The Administration and Board cleared the backlog of FOIA requests.
Board meetings were again streamed on line.
The Administration and Board are making all vendor payments available online in real time in searchable format.

COD BOARD POLICIES ENACTED OR PROPOSED SINCE APRIL 30, 2015

ENACTED POLICIES

1. Policy No. 5-5, Board Direction

New policy: College President works “at the Board’s direction” -- language that is notably absent in the old policy.

2. Policy No. 5-10, Board Authority

New policy: Board embraces – and does not delegate – the full range of authority granted it in the Community College Act.

3. Policy No. 5-15, Board Accountability

Prior policy, from 2009: Outlined the Board’s responsibilities, and delegated certain duties to the College President.
New policy: Returns to the pre-2009 version of this policy. Of note is the final sentence “The Board of Trustees will not delegate or relinquish its overall responsibility for results nor any portion of its accountability."
Note: This Board of Trustees will not delegate its powers, or surrender its responsibility to govern to the College President or anyone else at College of DuPage.

4. Policy No. 5-20, Trustee Freedom

Old policy: Stated that no member of the Board may speak for the entire Board, or act on behalf of the entire Board. We agree with that.
New policy: Makes it clear that every member of the Board has a First Amendment right to speak his or her mind and to offer his or her opinions regarding the affairs of the Board and the College.

5. Policy No. 5-85, Board Policy Formulation

Old policy: Stated that the College President – and only the College President – may formulate new policies for Board consideration.
New policy: Restores Board’s role to write its own policies.

6. Policy No. 5-90, Procedure Approval

Old policy: Delegated to College president the authority to draft administrative procedures.
New policy: Board must approve all procedures and Board may revise them at any time.

7. Policy No. 5-130, Agenda Authority

Old policy: Authorized president, Chairman and Vice-Chairman to set agenda for regular Board meetings.
New policy: Authorizes Chairman and Vice-Chairman set agenda, in consultation with the president.

8. Policy No. 5-165, Secretary and Recordings

Old policy: Secretary of the Board may delegate the duty of maintaining recordings of closed sessions.
New policy: Secretary may not delegate that duty.

9. Policy No. 5-171, Board Office

10. Policy No. 5-195, Trustee Expenses

Old policy: Encouraged Trustees to travel nationally to attend conferences and seminars.
New policy: Dramatically limits Trustee travel and expense. Limits travel and entertainment reimbursement to $335 per year without express prior approval. Trustees can attend seminars, lectures and conferences locally or online.

11. Policy No. 10-45, Inter-fund Transfers

Existing policy: Allowed certain COD administrators to transfer appropriated funds between budget accounts and seek Board approval after the fact. Note: This was funding mechanism for COD’s political mailings in Spring 2015.
Proposed policy: Forbids that practice. Board approval must come before inter-fund transfers.

12. Policy No. 5-220, Audit Committee

Existing policy: Board audit committee lacks status and mandate.
Proposed policy: Creates an audit committee on the Board and an independent audit department at COD.

PROPOSED POLICY

13. Policy No. 10-65, Payments Online

Existing policy: No Board review or approval of COD expenditures less than $15,000.
Proposed policy: Requires such expenditures be disclosed to the Board and the public in a readable, searchable, online format.