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Executive Committee Meeting
Held via telephone conference
July 18, 2006, at 2:00 PM EDT
CONFIDENTIAL
Trustees Present: Art Zucker/Chair, Bruce Bedford, Dan Fallon, Sherwood Guernsey, Jeff
Kasch, and Larry Stone Absent: Amy Chappell
Staff Present: Toni Murdock/Chanc~llor, Tom FaeckeNC and CFO, David Weaver, and Leslie
Bates (minutes).
Art Zucker called the meeting to order at 2:00PM. The first order of business was authorizing
Tom Faecke as Vice Chancellor and CFO. Art read aloud the following resolu~ion which was
unanimously accepted.
RESOLUTION 7.18.06:1 (B. Bedford/D. Fallon)
WHEREAS, Thomas A. Faecke has been appointed by the Chancellor to serve as Vice
Chancellor and CFO of the University subject to his subsequent election as an officer of the,
Corporation by the Board of Trustees; and
WHEREAS, pending his election by the Board of Trustees as an officer of the Corporation,’
the Executive Committee wishes to delegate to Thomas A. Faecke all authority to perfonn
the duties of Assistant Treasurer and Vice Changellor and CFO, including those duties
described in Section 5.6 of,the University’s Bylaws and delegated to the Assistant Treasurer
and/or the Vice Chancellor and CFO of the University by prior actions of the Board and/or its
Executive Committee.
BE IT THEREFORE RESOLVED, that pending his fonnal election as Assistant Treasurer of·
the Corporation and Vice President and CFO (commonly referred to as Vice Chancellor and
CFO) of the University by the University Board of Trustees, the Executive Committee
hereby delegates to said Thomas A. Faecke all authority to perfonn the duties of Assistant
Treasurer and the Vice Chancellor and CFO, including those described in Section 5.6 of the
University’s Bylaws and those delegated to the Assistant Treasurer and/or the Vice
Chancellor and CFO by pri.or actions of the Board and/or its Executive Committee.
AUSC Budget
Toni explained that LucyAnn Geiselman, president of AUSC had been asked at the June board
meeting to revise her budget. Toni noted that it now seems to be on target. One problem that
was uncovered was that students had been allowed to drop classes without penalty on their
registration (i.e., no charge for tuition no matter how late they dropped). Tom Faecke will travel
to Los Angeles in August with the goal of learning their budget and putting monthly monitoring
checks in place.
Dan Fallon emphasized the need to have common accounting processes at both LA and Santa
Barbara.
Toni explained that the CPO at AUSC is new to higher education and that has contributed to the l
situation, but she is encouraged by the recent improvements in leadership and financial expertise
at the LA and SB campuses: Neal King (previously the interim president at AUNE) as academic
dean at LA and Michael Mulnix as new provost at SB. Toni recommended approval of the
AUSC budget, noting that she and Tom will keep a close watch on it. Bruce also recommended
approval. ·Sherwood requested a monthly report to the Finance Committee.
College Budget
Toni provided background on the board’s request for the College to revise its budget. The
College was asked to trim the Gifts line so they wouldn’t have the burden of raising $3.2M in
annual funds. Also, the forecast for the number of students in the entering class had been 140,
which was too high, and that was reduced to 120. This yielded a tuition revenue difference, so
cuts were made to balance with the new enrollment figure. Steve preferred not to change the
Gifts line.
Tom had earlier suggested looking at this as a two-year budget. He and Toni agreed that this is
not yet a balanced budget, but emphasized that further reductions are not possible at this time.
They requested that the Board be open to the prospect of drawing further on the Drey funds
toward the end of the fiscal year.
Dan agreed that by underwriting the College we’re building a basis for the future, it’s an
investment strategy. There was discussion about the Board’s commitment to the renewal plan
and to the College, as well as agreement that further cuts on the expense side are not possible
right now.
Toni noted that she and Tom will be monitoring the College’s budget very closely to be sure they
stay on track with their expenses. Art requested a monthly report to the Finance Committee,
similar to the request on the AUSC budget. .
There was a brief discussion about Steve’s plans for raising the $3.2M, Toni noting that he plans
to go back to donors who had already made a contribution. He also plans to ask the Trustees for
assistance.
Art described some of the tough issues Steve is dealing with around culture, which means he’ll
have to spend more time on campus. He is starting to get some support from students who are
also frustrated with elements of the culture, but more support is needed from the faculty who are
mostly passive. Jeff pointed out that it’s critical for Steve to know that he has strong Board
support.
Toni mentioned a discussion held the previous week by the ULC at their retreat. A plan was
formulated where the campus presidents team up with their faculty to collaborate with Steve’s
faculty by offering workshops on advocacy for change, culture around change.
Finally, Art noted the need for a program for reviewing the Capital budget for the College.
Art read aloud the following resolution which was unanimously accepted.
~
I
RESOLUTION 7.18.06:2 (B. Bedford/L. Stone)
RESOLVED, that the Operating Budgets for Antioch College and Antioch University
Southern California are hereby approved as presented and reviewed at this meeting.
McGregor Campus West
Toni provided the background on Barbara Danley’s being asked to produce a new pro forma
based on McGregor’s new enrollment figures. There was some concern that expenses were
underestimated and some discussion about downsizing the building. Toni said she will have
figures on cost per square foot by the end of July. There was also some concern about the
September ground-breaking date, that it is getting late in the year. The cost of stopping the
project at this point would be too great. There was a brief discussion about delaying the project,
to wait for an April gr~und-breaking. David Weaver pointed out that the contract calls for a
deadline on the start date. He said he’d look into that in case it can be negotiated.
Art asked that Tom review all the numbers with Glenn Watts, Barbara Danley’s project manager,
asking that the Executive Committee reconvene for a mid-August conference call.
There being no further business to consider, the meeting was adjourned at PM.
These minutes respectfully submitted by,
Lesfie(Bates
Leslie Bates
Assistant Secretary
