Draft TalkingPointsfor 8/29/13Boardof TrusteesMeeting

Thank you for making time for this meeting on relatively short notice and for taking the time to review the documents related to this year-long review that were provided to you a few short weeks ago. As always, the continued and future success of Westfield State University depends, in large part, on this Boards active participation in all matters of governance, and I appreciate the many hours of your own personal time you devote. I think we all would have liked to have had this meeting before aspects of this matter were leaked to and sensationalized by the press. In any event, we are here now

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and I am pleased to answer any questions any of you might have. At the outset, however, I want to remind the members of the Board that the accountants Report does not concern new matters. Their Report deals with issues from years ago. In fact, as some of you will recall, the previous Board chair and I requested in 2011 that University counsel conduct a comprehensive review of travel expenses. That review by University counsel considered the same matters that are the subject of tonights meeting. It was a detailed, thorough review and resulted in a written report to the previous Board Chairman, which was issued on November 28, 2011. It, like the current report, concluded that no laws were broken, and that there was no evidence that any of the documented travel was for other than University purposes. Nevertheless,

counsel recommended, and the administration, together with this Board, made several improvements in procedures to tighten control over and reporting of expenses. By way of background, when I arrived at the University, I followed the practice of having my credit card bills reviewed for any personal charges and repaying them immediately. In retrospect, I wish that I had given the process more personal attention. Nevertheless, while there were at times clerical or administrative errors, which the 2011 outside counsel noted, these issues were addressed and did not impair, let alone warrant mention, in my year-end 2011 or 2012 annual evaluations. As those of you who have been members of the Board for the past several years are aware, the administration has worked with the Board to make changes to improve the

finance and accounting functions. Even before these reforms, however, expenses were subject to close scrutiny by WSU accounting, finance and audit professionals, annual audits by outside accounting firms, and oversight by the Boards of the University and the Foundation. While there is always room for improvement, the revised policies and procedures have resulted in improvements to the system. In fact, the accountants noted in the Report that a review of all of the recent credit card statements resulted in the finding that transactions have been in accordance with University policies. In particular, there were no personal expenditures during this period. This has been addressed responsibly and professionally and I am confident that University employees will continue to adhere to the best practices implemented and adopted over the past several

years. Moving forward, those policies will be rigorously reviewed to assure that University credit cards continue to be used appropriately. With respect to historical expenses, however, it is important to note that while press reports have sought to sensationalize certain expenditures, the OConner and Drew Reports express no opinion that any expenditure, program or investment made by the University was in any way inconsistent with University policy, that is with the exception of a one night hotel stay in Boston, where I stayed after a dinner meeting with Boston-area elected student leaders at the hotel before a morning flight from Logan. And, although the Reports identified certain expenses which could be considered not aligned with such policies, an understanding of our Universitys goals and recent achievements would have

gone a long way toward providing the accountants with the perspective necessary to appreciate the significant return on investment garnered from these expenditures. Notably, the accountants separate report to the Foundation indicates that the accountants are unsure as to the general mission of the Foundation. This starting point - the mission of the Foundation and its relationship to the expenditures and associated aims of the University - are a necessary benchmark of any review of the reasonableness of University expenses. The accountants engagement was specifically amended to permit the accountants to speak with and question any University employee in a position to assist in the completion of the review. Nevertheless, the accountants refused my repeated requests to meet with them, declined to engage in a dialogue with any member of the Presidents

office, and there is no indication in the Reports that they consulted with anyone else familiar with the University or the Foundation, or indeed with higher education practices in general. Specifically, there is no indication that the accountants used any methodology to evaluate the types of hotels at which administrators and faculty members at universities generally stay, particularly when traveling in developing countries, where health, safety, and local customs must be taken into account. For example, much has been made about one hotel I stayed at in Asia. The reality is that I traveled to Asia with a delegation of 9 or 10 others, including faculty, students and country experts in order to jump start WSUs international programs. The hotels we stayed at were chosen not by me, but by those familiar with both the

countries we were to visit and what we wanted to accomplish, and with a mind to location, health and safety. I stayed where everyone else in the delegation stayed, and as I will explain in a moment, this trip yielded significant benefits for the University and its students. Similarly, although the Reports cite Foundation fundraising meals at high end restaurants and participation in cultural events, they do not indicate whether the accountants consulted with other university Foundations, or those who engage in fundraising for those entities, to determine whether such activities are typical or to otherwise evaluate the reasonableness of these expenses. More importantly, the Reports are devoid of any examination of the return on investment from the expenses identified. Those around this table, however, realize that
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these expenditures have generated significant and quantifiable dividends. They have led to substantial financial gains to the University and increased opportunities for our students both while at the University and upon graduation. In no small measure due to the travel and fundraising you and I have undertaken with various other University representatives, faculty, and students in the few years since I began this job, we have accomplished game-changing successes. Specifically, we have completely overhauled our international exchange program, growing the opportunities for international learning by providing students with access to more than 700 programs around the world, including Italy, China, Germany, Ireland and Poland, up from a mere 13 programs in 2008. This week, we welcomed 123 international students from over 50 countries around the globe. Recently,

as you will recall, Westfield State University was ranked Number 1 by Mass Inc. as the best value for graduation of all state private and public colleges and universities (Harvard was ranked number 2) and Number 1 in the entire country by US News and World Report for On-Line Teaching Quality. We have transformed our campus, including significant investments in construction for much needed renovation and modernization of our facilities. We have implemented important new academic programs, including a Masters of Social Work, Bachelors Degree in Nursing, and creation of Departments of World Language, and Ethnic and Gender Studies. Our renewed commitment to diversity is reflected in a nearly doubled number of minority students and faculty. In 2012, we secured a full ten-year accreditation from NEASC. As a result of such achievements and investments, we are

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able to continue recruiting and adding top-flight talent to our faculty ranks. Moreover, from our initial investments in building the international programs, we have realized over $3,000,000, and recurring revenue of approximately $1,200,000 per year. Meaningful change does not occur without substantial investment of time and financial resources, and cultivation of support. I am deeply proud of what our University has accomplished in these past few years, and am eager to continue this trajectory toward even more significant successes in the years to come. It is my sincere hope that we can now address any remaining issues, and thereafter continue to direct our efforts and energies where they are best put to use - for the continued growth and success of the University, its faculty,
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and students. At this time, I will be pleased to answer any questions you may have about the historical matters raised in the Reports or discussed here today.

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