2015 - 12 - 18 - FGCU Final Brief PDF

OFFICE OF INSPECTOR GENERAL
325 West Gaines Street Tallahassee, FL 32399

(850) 245-9247 www.flbog.edu
December 18, 2015
Chancellor Criser and Chair Hosseini,

At your request, we reviewed the Florida Gulf Coast Universitys
(FGCU) practices for contracting with senior administrators and the
Edwards Hall 3rd Floor renovations to the space now occupied by FGCUs
Vice President and Chief of Staff. The following pages summarize the
information gathered from our inquiry.
We wish to thank the FGCU management and Board Chair for their
professionalism, cooperation, and assistance which contributed to the
successful completion of this engagement.
Sincerely,
Joseph K. Maleszewski, MBA, CIG, CIGI, CIGA, CIA, CGAP, CISA, CCEP
Inspector General and Director of Compliance
cc:
Thomas G. Kuntz, Vice Chair

Governor Levine, Audit and Compliance Committee Chair
Vikki Shirley, General Counsel and Corporate Secretary, Board of Governors
Enhancing Public Trust in Government

State University System of Florida | Board of Governors
Office of the Inspector General and Director of Compliance
Table of Contents
ENGAGEMENT INITIATION............................................................................................................... 3
BACKGROUND ....................................................................................................................................... 3
Florida Board of Governors................................................................................................................. 3
Boards of Trustees................................................................................................................................. 3
Office of the Chancellor ...................................................................................................................... 4
Office of Inspector General and Director of Compliance ............................................................. 5
Florida Gulf Coast University ............................................................................................................ 5
SENIOR ADMINISTRATOR EMPLOYMENT CONTRACTS ....................................................... 6
Senior Administrator Salary Information and Trends .................................................................. 6
Delegations of Authority ..................................................................................................................... 9
Senior Administrator Employment Contracting Practices/Processes ....................................... 10
Evergreen Provisions .......................................................................................................................... 11
Multi-year Faculty Appointment After Sabbatical....................................................................... 15
Analysis ................................................................................................................................................ 15
EDWARDS HALL 3RD FLOOR RENOVATIONS .......................................................................... 16
Facilities Planning .............................................................................................................................. 16
Edwards Hall 3rd Floor Renovations................................................................................................ 19
Appendix A - Engagement Notice and Requests for Information ................................................ 25
Appendix B - University Board of Trustees Powers and Duties.................................................... 30
Appendix C FGCU Organization Chart........................................................................................... 32
Appendix D Hosseini Letter and Bradshaw Response ................................................................. 33
Appendix E Henderson, Franklin, Starnes and Holt, P.A., Letters............................................. 36
Appendix F General Counsel Web Page: Delegations of Authority ......................................... 50
Appendix G January 15, 2008 Delegation of Authority ................................................................ 51
Appendix H FGCU Campus Map ..................................................................................................... 52
Appendix I Edwards Hall 3rd Floor Plan ........................................................................................ 53
PROJECT TEAM: .................................................................................................................................... 54
Report No. 16-011 2 of 55
ENGAGEMENT INITIATION
On October 29, 2015, Board of Governors Chair Mori Hosseini directed the Office of
Inspector General and Director of Compliance (OIGC) to review Florida Gulf Coast
Universitys (FGCU) processes and practices related to senior administrator
employment contracts. This engagement included reviewing documents, conducting a
site visit, and interviewing senior administrators and the board of trustees chair. The
goal of this inquiry was to gather information to provide context and a fuller
understanding of these employment contracting practices and their potential impact.
The same day, we provided notice to FGCU, requested information regarding FGCU
senior administrator employment contracts (see Appendix A), and scheduled a campus
site visit for November 9-10, 2015.
On November 4, 2015, Chair Hosseini expanded to scope of our inquiry to include a
detailed review of the Edwards Hall 3rd floor renovations with a focus on space
designated as the Vice President and Chief of Staffs office suite. As a result, the OIGC
requested information related to the Edwards Hall 3rd floor renovations (see Appendix
A).
BACKGROUND
The following section summarizes the roles and responsibilities of the Florida Board of
Governors (Board), Boards of Trustees, Office of the Chancellor, and the OIGC.
Collaboration between these entities increases accountability and furthers the mission
of the State University System of Florida.
Florida Board of Governors
The Board was created in 2003 by a constitutional amendment. The Board is
constitutionally and statutorily1 responsible to support, promote, and enhance fiscal
responsibility and accountability within the State University System of Florida. The
Boards constitutional mandate is "to operate, regulate, control and be fully responsible
for the management of the whole university system."
Boards of Trustees
Each university is administered by a board of trustees. Pursuant to Article IX, section
7(c), Florida Constitution, the Board of Governors shall establish the powers and duties of
university boards of trustees.
1
Article IX, Section 7 of the Florida Constitution and section 20.155(4)(b), Florida Statutes
The Board of Governors has delegated certain powers and duties to university boards
of trustees in Regulation 1.001, Board of Trustees Powers and Duties. The intent of this
regulation is to delegate powers and duties to the university boards of trustees so that
the university boards have all of the powers and duties necessary and appropriate for
the direction, operation, management, and accountability of each state university.
Among these delegated powers and duties is the responsibility to establish a personnel
program (see Appendix B) as specified in Regulation 1.001, section 5(a), which states, in
pertinent part:
Each board of trustees shall provide for the establishment of the personnel
program for all the employees of the university, including the president,
which may include but is not limited to: compensation and other
conditions of employment, recruitment and selection, nonreappointment,
standards for performance and conduct, evaluation, benefits and hours of
work, leave policies, recognition and awards, inventions and works,
travel, learning opportunities, exchange programs, academic freedom and
responsibility, promotion, assignment, demotion, transfer, tenure, and
permanent status, ethical obligations and conflicts of interest, restrictive
covenants, disciplinary actions, complaints, appeals and grievance
procedures, and separation and termination from employment.
Boards of trustees exercise shared governance with university administrators, faculty,
and the student body. Boards of trustees further delegate authorities granted by the
Board of Governors to university administrators through the university president.
The FGCU Board of Trustees is established as a body corporate, with all of the powers
of a body corporate as provided by the Board of Governors. The board of trustees is
vested with the authority to administer the university in accordance with the Florida
Constitution, Florida law, and Board of Governors delegations.
Office of the Chancellor
The Chancellor serves as the chief executive officer of the Board. The Chancellors
Office includes senior staff, who along with the Chancellor, are charged with the
development and implementation of administrative policies, programs, and procedures
to guide Board operations. The Chancellor serves as spokesperson for the Board with
external constituencies, including the State Legislature, Executive Office of the
Governor, university presidents, trustees, students, and other organizations.
Office of Inspector General and Director of Compliance

As authorized by Article IX, Section 7 of the Florida Constitution and section 20.155(5),
Florida Statutes, the Board established the OIGC to promote accountability, integrity,
and efficiency by providing quality audits, investigations, management reviews, and
technical assistance. Subsequently, the Board adopted the Audit and Compliance
Committee Charter and the OIGC charter. To achieve and maintain independence and
objectivity, the Inspector General reports directly to the Board, through the Chair of the
Audit and Compliance Committee, and administratively to the Chancellor.
In accordance with section 20.155(5), Florida Statutes, the OIGC shall have access to all
information and personnel necessary to perform its duties and responsibilities and shall
have all of the powers, duties, and responsibilities authorized in Floridas Inspectors
General Act (section 20.055, Florida Statutes).
Florida Gulf Coast University
Wilson G. Bradshaw, Ph.D., serves as President of FGCU. On August 25, 2007, the
FGCU Board of Trustees unanimously selected Dr. Bradshaw to become the
institutions third President. A copy of the FGCU organization chart is included as
Appendix C.
President Bradshaws cabinet includes the following members:
Susan Evans, Vice President and Chief of Staff;

Vee Leonard, Vice President and General Counsel;
Steve Magiera, Vice President for Administrative Services and Finance;
Dr. J. Michael Rollo, Vice President for Student Affairs;
Christopher Simoneau, Vice President for University Advancement
and Executive Director of FGCU Foundation; and
Dr. Ronald Toll, Provost and Vice President for Academic Affairs.
SENIOR ADMINISTRATOR EMPLOYMENT CONTRACTS

On October 1, 2015, Chair Hosseini sent a letter to President Bradshaw inquiring about
employment contract amendments or extensions for senior members of the university
administration. President Bradshaw provided a response on October 9, 2015,
identifying two contracts (one for the Director of Intercollegiate Athletics and one for
the Vice President and Chief of Staff) along with an operational justification for the
contract amendments. Both the request and response are included as Appendix D.
On October 29, 2015, Chair Hosseini directed the OIGC to review FGCUs senior
administrator employment contracting processes and practices. The goal of this inquiry
was to gather information to provide context and a fuller understanding of these
employment contracting practices and their potential impact.
On the following pages, we summarize information gathered during our inquiry. It is
divided into the following subsections:
Senior Administrator Salary Information and Trends;

Delegations of Authority;
Senior Administrator Employment Contracting Practices/Processes;
Evergreen Provisions;
Multi-year Faculty Appointment After Sabbatical; and
Analysis.
Senior Administrator Salary Information and Trends

In August 2015, and at the direction of the Florida Legislature, the Office of Program
Policy Analysis and Government Accountability (OPPAGA) requested administrative
information from FGCU (and several other state universities). The following table
summarizes salary increase information FGCU provided to OPPAGA in response to
their request. This information demonstrates the six-year salary history of FGCUs Vice
Presidents and includes the FGCU across the board raise information for comparison.
Staff
VP and Chief of Staff
VP and General Counsel
FY10-11
VP for Administrative Services and Finance $ 216,812.53

VP for Student Affairs
$ 176,885.34
FY11-12
$
$
$ 221,148.78 2% $
$ 180,423.05 2% $
VP for University Advancement and ED of

FGCU Foundation
Provost and VP for Academic Affairs

FGCU Across the Board Raise
$ 231,795.00
2%
%
FY12-13
205,000.00
$
190,000.00
$
221,148.78 0% $
196,000.00 8% $
$
FY13-14
222,425.00
206,150.00
239,946.43
212,660.00
204,000.00
8%
8%
8%
8%
%
FY14-15
$ 241,331.06 8%
$ 223,672.74 8%
$ 260,341.18 8%
$ 230,736.48 8%
$ 229,087.45 11%
$ 236,430.90 2% $ 236,430.90 0% $ 290,902.00 19% $ 315,629.08

2%
0%
3.50%
3%
FY15-16
$ 253,397.61
$ 234,856.38
$ 273,358.24
$ 242,273.30
$ 240,541.82
5%
5%
5%
5%
5%
8% $ 331,410.53 5%
3.50%
NOTES: Effective January 1, 2013, both the Chief of Staff and General Counsel were promoted to Vice Presidents and both received increased responsibilities.
The symbol "" stands for change
All of the senior administrator positions are funded, in significant part, by legislatively
appropriated Education and General (E&G) funds in addition to other funding sources
that make up the balance of their salaries. The following table summarizes the E&G
funds portion of fiscal year 2014-2015 FGCU Vice President salaries.
Amount of Salary Paid from Education & General Funds

FY2014-2015
Position
Amount
VP and Chief of Staff
$ 195,119.54
VP and General Counsel
$ 195,840.16
VP for Administrative Services and Finance
$ 193,234.93
VP for Student Affairs
$ 196,450.54
VP for University Advancement and ED of FGCU Foundation
$ 185,928.69
Provost and VP for Academic Affairs
$ 193,379.36
Below, we summarize key provisions for FGCU senior administrator employment
contracts. The first table contains those with evergreen contract provisions. The next
table summarizes the remaining vice president contracts.
Athletics
Director
NOTES:
5/21/2009;
2/25/2014
Car; C
el
Allow l
ance
Sabb
ati cal
Mult
i -year
Appo
intme
n
Upon t
Reass
ignm
ent
Position
VP and
7/1/2007;
Chief of
12/14/2012;
Staff
12/16/2014
Everg
reen
Contr
act
Agree
m
Amen ent;
dmen
t
Dat es
FGCU Senior Administrator Employment Contracts Summary
Yes 5-yr evergreen

contract as A&P;
notice of nonrenewal due by
April of a given
year.
None
$12,000;
$1,300
Yes 3-yr evergreen

contract; notice of
non-renewal due by
April 1st of a given
year. Does not
specify A&P or
faculty appointment.
None
$12,000;
$1,200
Notes
First contract amendment included transition to
faculty provision after sabbatical. Second contract
amendment replaces transition to faculty provision
after sabbatical with transition to A&P status with 5year evergreen provision; provision to retain current
salary at time of reassignment; removed provision
for sabbatical, and increased salary equal to the
amount of the car allowance in effect at time of
transition. In his 12/16/2014, letter to Ms. Evans,
President Bradshaw indicated that he was amending
her contract to support her goal of retirement at
FGCU. General Counsel contract review noted for
"legality" only and not "form."
Agreement includes country club benefits. If
reassigned, will receive then-current base salary
(with the addition of the then-current car allowance)
and cell phone allowance. Funding for salary upon
reassignment will come from the Athletics Budget
Center.
A&P stands for Administrative and Professional.

An evergreen contract is a contract with a provision for a multi-year appointment with a rollover or automatic renewal clause.
Car ; C
el
Allow l
ance
Sabb
ati cal
Mult
i -year
Appo
intme
n
Upon t
Reass
ignm
ent
Everg
reen
Contr
act
Agr ee
ment
;
Amen
dmen
t
Dat es
FGCU Senior Administrator Employment Contracts Summary (Continued)
Notes
Serves at the pleasure of the President with no
expectation of continued employment beyond 60
days' notice. Upon reassignment will earn the
average faculty salary in the College of Business +
10%, or 90% of highest paid faculty, or (if no
comparator) then CUPA average + 10%.
Position
VP and
General
Counsel
6/27/2007;
7/26/2007;
12/14/2012
No 3-yr faculty
appointment as
Instructor II in the
College of Business,
reporting to the Dean
One Semester if $12,000;

employed < 3- $1,105
yr; One year if
employed > 3yr
VP for
Administrative
Services and
Finance
10/1/2003;
7/1/2004;
7/1/2008;
6/15/2011
No 3-yr faculty
appointment as
Instruct II in the
College of Business,

employed < 3- $780
yr; One year if
employed > 3yr

days' notice. Was a 5-yr faculty appointment until
7/1/2004 Amendment. The 7/1/2008, amendment
moved to VP for University Advancement. The
6/15/2011 amendment moved to current position
title. Upon reassignment will earn the average
faculty salary in the College of Business + 10%, or
90% of highest paid faculty, or (if no comparator)
then CUPA average + 10%.
VP, Student
Affairs
5/4/2006;
5/4/2006
One Semester
No 3-yr faculty
appointment in the
College of Education,
$12,000;
$650

days' notice. Upon reassignment will earn the
average faculty salary in the College of Education +
VP for
University
Advancement
and ED for
FGCU
Foundation
3/11/2013;
5/1/2013
No 3-yr faculty
appointment as
Instructor II in the
Lutgert College of
Business, reporting
to the Dean
One Semester if
employed < 3yr; One year if
employed> 3-yr
Car
provided
by FGCU
Foundation
; $1,300
Addendum to Letter of Offer. Upon reassignment

will earn the average faculty salary in the College of
Business + 10%, or 90% of highest paid faculty, or (if
no comparator) then CUPA average + 10%.
Provost and
VP for
Academic
Affairs
4/10/2008;
4/10/2008
No 3-yr faculty
appointment as
Professor of Marine
Sciences in the
College of Arts and
Sciences, reporting to
the Dean

employed < 3- $1,300
yr; One year if
employed > 3yr
NOTES:
Current position is with rank of Professor of Marine

Sciences. Serves at the pleasure of the President with
no expectation of continued employment beyond 60
days' notice. Any bonus awarded based on
exceptional performance as determined by the
President. Upon reassignment will earn the average
faculty salary in the College of Arts and Sciences +
A&P stands for Administrative and Professional.

An evergreen contract is a contract with a provision for a multi-year appointment with a rollover or automatic renewal clause.
CUPA stands for College and University Professional Association.
Delegations of Authority
A delegation of authority is a written authorization made by one officer (or body) to
another and confers authority to any position incumbent or office. In the following
paragraphs, we summarize the delegations of authority relevant to our inquiry. This
summary is consistent with conclusions drawn by Henderson, Franklin, Starnes and
Holt, P.A., in a letter to the FGCU Vice President and General Counsel, dated
November 6, 2015. See Appendix E for the full text of this letter provided at the
universitys request. This letter concluded, in pertinent part:
Based upon the broad language of the resolution, the Board of Trustees
delegated its authority to contract with personnel to the University
President.2
As summarized in the background section of this report, the Board of Governors has
delegated to boards of trustees all of the powers and duties necessary and appropriate
for the direction, operation, management, and accountability of each state university.
This delegation (Regulation 1.001, University Board of Trustees Powers and Duties)
includes the power to establish the personnel program for all the employees of the
university (see Appendix B).
The FGCU board of trustees has a process for tracking delegations, and this process is
managed by the Office of General Counsel. The office maintains a website with FGCU
delegations of authority located at:
http://www.fgcu.edu/generalcounsel/delegations.asp. A
screenshot of this webpage is included as Appendix F.
As depicted in the graphic, FGCU has three levels of
delegations commencing with the board of trustees (level
one), the president (level two), and the presidents direct
reports such as the vice presidents and other senior
administrators (level three).
In the January 15, 2008, Delegation of Authority3, the FGCU
Board of Trustees authorized the university president or
designee to address routine matters related to the operation
LEVEL ONE DELEGATION
Board of Trustees
President
LEVEL TWO DELEGATION
President
Vice Presidents
LEVEL THREE DELEGATION
Vice Presidents
(and Direct Reports)
Senior Administrators
The resolution (Delegation of Authority) referenced in this text is included as Appendix G.

This delegation was amended by the FGCU board of trustees in April 2008 to remove the $1 million
limit included in the January 15th board meeting minutes.
2
3
and management of the University as such matters related to contracts. The full
text of this delegation is included as Appendix G.
FGCU employment contracts are addressed in FGCUs regulation entitled, Employee
Compensation and Classification Plans (FGCU-PR5.001). This regulation defines
Executive Service appointments as those designated by and reporting to the
university president. Executive Service positions are defined as responsible for policymaking at the executive level. Section C of Regulation PR5.001, addressing employee
contracting (agreements), is silent on Executive Service. However, regarding FGCUPR5.001, the law firm of Henderson, Franklin, Starnes and Holt, P.A., concluded in a
letter dated November 6, 2015:
While the Regulation does not specifically address contractual terms for
Executive Service employees, it appears that, at least in the past, Executive
Service was within the Administrative and Professional classification.
Accordingly, Section C of Regulation PR5.001 covers Executive Service positions.
In accordance with the FGCU Board of Trustees Delegation of Authority and regulation,
President Bradshaw exercises authority in contracting with and establishing
compensation and benefits offered to senior administrators.
Senior Administrator Employment Contracting Practices/Processes
On November 9-10, 2015, our site visit confirmed that President Bradshaw exercises his
delegated authority in negotiating senior administrator employment contracts with a
high level of autonomy4. Decisions regarding senior administrator contracts,
compensation, and benefits are generally made unilaterally. The process entails
discussion between the President and prospective senior administrators to negotiate
and achieve agreement on employment terms. Once agreement is reached, an offer
letter is prepared, which contains relevant details including dates, elements of the offer,
and compensation package.
President Bradshaw indicated that he sometimes reviews these offer elements with the
Human Resources office; however, the decisions are made autonomously.
According to FGCU officials, President Bradshaws employment contracting practice is consistent with
that of his predecessor President William Merwin. Like President Bradshaw, President Merwin did not
share his senior administrators' employment contracts with the board of trustees, which was created
during his (Dr. Merwins) tenure as President.
Report No. 16-011 10 of 55
Once consensus is achieved and employment negotiations are complete, the

employment contract is prepared and reviewed by the universitys general counsel for
form (i.e., format, content, and appropriateness) and legality. If the employment
contract is legal and agreeable to both parties, the document is executed. Employment
contract amendments are considered by the president when requested by staff
members.
By comparison, the process used to set the presidents compensation package is more
rigorous. In this process, the board of trustees hires a consultant who prepares a
market-based study and analysis of comparable and aspirational institutions with
regard to the nature and extent of both compensation and benefits. The consultants
report includes recommendations for the board of trustees to consider before
establishing presidential compensation and benefits.
In the following paragraphs, we summarize information about a number of relevant
FGCU employment contracting practices.
Evergreen Provisions
We inquired about contract provisions which provide multi-year appointments with a
rollover or automatic renewal clause (also known as an evergreen provision). Such
evergreen provisions automatically renew after a specified time period (unless notice of
non-renewal is provided). These types of contracts can be thought of as a rolling, fixedterm contract in which the full contract length is determined upon notice of nonrenewal.
The practice of evergreen contracts is primarily designed for faculty contracts as FGCU
does not have tenure5. The following two graphics provide a visual example of a fiveyear evergreen contract containing a provision for written notice of non-renewal by
April of a given year. The first diagram illustrates the annual evaluation of
performance and subsequent determination of the remaining term for an evergreen
contract.
Tenure is a contractual right of a teacher or professor not to have his or her position terminated without
just cause. It is awarded after a probationary period.
Report No. 16-011 11 of 55
Evergreen Contract Provision Diagram
5-Year
Contract
YEAR 1
Begin
Satisfactory
Performance?
NO
July 1 of subsequent
year begins contract
YEAR 2* and
contract expires at
YEAR 5
End
YES
* This scenario assumes written notice of non-renewal is provided by April. If notice is provided after April and before June
30th, then July 1st of the subsequent year begins contract YEAR 1 (rather than YEAR 2) and the contract expires at YEAR 5.
This concept is further illustrated below. For the first two years (represented in rows 1
and 2), the employee performance is acceptable and no written notice is provided (as
illustrated by the blue arrows). In each of these years, the contract automatically
renews for another five-year term. This pattern will repeat until such time as notice of
non-renewal is provided. This example presumes that written notice of non-renewal is
provided in the third year of the contract (row 3, illustrated by the red arrow) and, as a
result, in July of the subsequent fiscal year (row 4), the five-year term no longer
automatically renews and the remainder of the five-year term elapses over the
subsequent four years (rows 4-7). In this example, with notice provided in YEAR 3, the
resultant contract length is seven years.
Evergreen Contract Example
FY 2013-2014
FY 2014-2015
FY 2015-2016
FY 2016-2017
FY 2017-2018
FY 2018-2019
FY 2019-2020
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Row 4
Row 5
Row 6
YEAR 1
YEAR 3
YEAR 4
YEAR 5
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 3
YEAR 4
YEAR 5
YEAR 4
YEAR 5
Notice (April)
Row 3
YEAR 2
No Notice (April)
Row 2
YEAR 1
No Notice (April)
Row 1
YEAR 5
Row 7
Report No. 16-011 12 of 55
As summarized in the FGCU Senior Administrator Employment Contracts Summary

table (pages 7 and 8), two FGCU senior administrators have evergreen contract
provisions: Vice President and Chief of Staff and Intercollegiate Athletics Director.
Effective January 1, 2013, Chief of Staff and General Counsel were promoted to Vice
Presidents and both received increased responsibilities. One of the additional
responsibilities provided to the General Counsel was responsibility for the Human
Resources function.
The second amendment to the employment contract for the Vice President and Chief of
Staff (December 16, 2014) contains an evergreen provision for the contract term which
reads:
The Employees term of employment shall be for five (5) years beginning
July 1, 2014 and ending June 30, 2019. Provided the Employee performs
satisfactorily, such term of employment shall automatically renew for an
additional term of five (5) years beginning each July 1, unless either of the
Parties express to the other, in writing, by April of each year that the term
of employment will not be renewed.
The portion of this provision which references an April notice is not consistent with
FGCU-PR5.023, Separation from Employment which states, Employees in the Executive
Service shall be given sixty (60) days notice prior to the effective date. There is a
similar provision for notice in the Intercollegiate Athletics Directors employment
contract which reads, unless either of the parties shall express to the other in writing
by April 1 of each year that that [sic] the agreement will not be renewed. The
timeframe for notice in these contracts exceeds the sixty day notice specified in FGCUs
regulation.
The miscellaneous section of the Vice President and Chief of Staffs second amendment
recognizes the amendment is not typical as it includes a provision that reads:
c. The terms and conditions of this document are not meant to, nor does
it, establish a precedent or application to other employment situations in
any respect.
This second amendment also includes a provision that the incumbent retain full salary
upon reassignment. Under section 2, that amendment states:
Report No. 16-011 13 of 55
b. Upon reassignment, Employee will carry a new title with different

responsibilities and duties that are consistent with the Employees
education and experience. Notwithstanding, Employee will continue to
receive her then-current base salary and any subsequent increases
provided to University A&P employees. Additionally, Employees base
salary will be increased by an amount equal to the annual car allowance in
effect at the time of reassignment. Any subsequent reinstatement to
Employees original position shall include receipt of perquisites associated
with the position in effect at the time of the reinstatement.
This provision is unprecedented among FGCU Vice President employment contracts.

However, a similar provision is included in the Intercollegiate Athletics Directors
employment contract which reads, will continue to receive his then-current Base
Salary and the cell phone allowance provided. This contract also provides that his
salary may be increased by the amount of his car and cell phone allowance. Exercise of
these provisions for reassignment with retention of the full salary will almost certainly
create a situation where a pay inequity exists.
The Vice President and Chief of Staffs employment contract does not specifically
reference section 215.425, Florida Statutes, that requires severance pay not exceed an
amount greater than 20 weeks of compensation. This statutory provision would,
however, still apply.
During our site visit, we discussed with the General Counsel her review of the second
amendment to the employment contract for the Vice President and Chief of Staff. The
General Counsel explained that when she approves an agreement as to legality, it is not
an approval as to the appropriateness of the agreement, only that it is legal. The
General Counsel indicated that she and President Bradshaw had discussed her
reservations and concerns regarding the draft agreement and noted that the final
agreement represented the presidents decisions and exercise of his delegated authority
in accordance with the January 15, 2008, FGCU Board of Trustees Delegation of
Authority.
The General Counsel noted that she had received direction to work through either the
President or the Vice President and Chief of Staff when seeking to interact with the
board of trustees. As a result, she did not express her employment contract reservations
and concerns to any member of the FGCU Board of Trustees.
Report No. 16-011 14 of 55
During our site visit, President Bradshaw confirmed that, in addition to exercising
employment contracting with autonomy, he did not share senior administrator
employment contracts with the board of trustees until FGCUs Trustee Tom Grady
inquired about them in October 2015. At that time, he provided a copy of two senior
administrator employment contracts6 to Trustee Grady and Chair Robbie Roepstorff.
Multi-year Faculty Appointment After Sabbatical
During our site visit, we learned that FGCU vice president employment contracts
generally include a reassignment provision for a multi-year faculty appointment after
sabbatical. This provision is offered without consideration of the vice presidents
experience (teaching, research, or service) or qualifications (education and credentials)
required to serve as a faculty member.
While on site, we requested information regarding any precedent for FGCUs senior
administrator employment contracting practices (specifically faculty appointment after
sabbatical). In response, the university offered two contracts: one executed between
President Merwin and Joseph D. Shepard (Vice President for Administrative Services)
in July 2004, and one executed between President Merwin and Bonnie Yegidis (Provost
and Vice President for Academic Affairs) in May 2004.
Analysis
Board of Governors Regulation 1.001(2)(f) delegates authority to the boards of trustees
to contract on behalf of the university. This is consistent with the board of trustees
responsibility to guard the fiscal integrity of the university. As a fiduciary, the board of
trustees must guard the institutions credibility to further its mission and enhance the
public trust which is so essential to the success of the State University System of Florida.
The FGCU employment contracting practices discussed above raise an important
question about how Board of Governors delegated authority should be shared. At
issue is the division of delegated responsibilities between a university president and his
or her board of trustees.
The Board of Governors may wish to provide additional guidance to university boards
of trustees with respect to employment contracting for senior administrators, and to
ensure that the General Counsels, as direct reports to the boards of trustees, maintain
the ability to communicate directly with the board.
The two contracts were the Vice President and Chief of Staff and the Intercollegiate Athletics Director.
Report No. 16-011 15 of 55
EDWARDS HALL 3RD FLOOR RENOVATIONS

At Chair Hosseinis request, we reviewed
renovations made to the 3rd floor of FGCUs
Edwards Hall (pictured below) located at 10501
FGCU Boulevard South, Fort Myers, Florida (see
Appendix H for FGCU Campus Map). Our review
focused on renovations performed on office space
allocated to the Vice President and Chief of Staff.
On November 5, 2015, the OIGC provided FGCU a request for information related to
the Edwards Hall 3rd floor renovations (see Appendix A). The onsite walkthrough was
scheduled for Monday, November 9, 2015.
The following section provides information about the remodeling process and
summarizes information reviewed during our site visit.
Facilities Planning
The Facilities Planning office oversees the Campus Physical Facilities Master Plan and
the design, planning, and construction of all FGCU campus building and infrastructure
projects.
In accordance with FGCUs Facilities Planning Operating Procedures for Continuing
Service Contracts, FGCU has vetted and relies on the following continuing service
architectural/engineering firms and continuing service construction management firms
for minor projects7.
Architectural/Engineering Services8 provided by:
Harvard Jolly Architecture

Burt Hill/Pollock Krieg Architects
RG Architects, P.A.
Minor projects are those architectural/engineering projects less than $200,000 and construction projects
less than $2 million.
8 Contracts with these architectural/engineering services firms are in effect from September 23, 2014, to
September 22, 2016, with one optional two-year renewal.
7
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Construction Management Services9 provided by:

Houchin Construction
Maddox Construction
Gates Butz Institutional Construction
Wright Construction
The purpose of such contracts is to allow faster progress for minor projects.
In response to our request for information dated November 5, 2015, FGCU provided
policies and procedures, procurement documents, contracts, schedules, invoices, and
payment information related to the Edwards Hall 3rd floor remodeling efforts.
Information provided appears to demonstrate that the universitys remodeling efforts
generally conformed with applicable regulations and policies10 for the approval,
procurement, and payment of the Edwards Hall 3rd floor renovations. As illustrated on
the following two pages, there were minor and routine change orders to both the
architectural/engineering contract and the construction contract.
Architectural work was performed by Burt Hill/Pollock Krieg Architects, Inc., and
construction work was performed by Houchin Construction, Inc. Payments for the
work in total were:
Burt Hill/Pollock Krieg Architects, Inc.
Houchin Construction, Inc.
TOTAL
$ 16,078.29
$258,457.80
$274,536.09
Adding the cost of furnishings, the total comes to $362,611.00 for 2,023 square feet11 (or
$179.24 per square foot).
Contracts with these construction management services firms are in effect from January 24, 2014, to
January 23, 2016, with two optional one-year renewals.
10 These include the Facilities Planning Project Operating Procedures; FGCU-PR6.014, Purchasing
Authority of the University; FGCU-PR6.015, Competitive Solicitations Requirement; FGCU-PR6.016,
Purchase of Commodities or Contractual Services; FGCU-PR6.018, Contracts; FGCU-PR6.022, Acquisition
of Architectural, Engineering, Construction Management, or Design-Build Services; BOG Regulation
14.004, Public Announcement Requirements; BOG Regulation 14.005, Certification and Competitive
Selection of Professionals; and BOG Regulation 14.0055, Certification and Competitive Selection for
Construction and Management Services and Design-Build Services.
11 This square footage was provided by Tom Mayo, Facilities Planning Director. The 2,023 square feet
includes all offices, the conference room, work space, storage, hallway, and the vestibule. The square feet
of the individual offices spaces (as depicted in the diagram on page 22) totals 1,830 square feet. The 193
square foot difference is hall and vestibule space.
9
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The Vice President and Chief of Staffs office is 313 square feet. As demonstrated
below, the average of the remaining FGCU Vice Presidents office space is 402 square
feet.
Vice President and General Counsel
Provost and Vice President for Academic Affairs
Vice President for University Advancement
Vice President for Administrative Services and Finance
Vice President for Student Affairs
AVERAGE
310
385
333
525
456
402
The following four tables summarize the contracts, contract changes, and payments
made to Burt Hill/Pollock Krieg Architects, Inc., and Houchin Construction, Inc.
Burt Hill/Pollock Krieg Architects, Inc. (PO#: P0056305)
Change
Order
Original
Date
5/18/2014
Change
Order
Amount
-
Total
Description
$ 14,150.00 Achitectural services for Edwards Hall 3rd floor
remodeling. Burt Hill/Pollock Krieg Architects, Inc.
($7,000); OCI Associates, Inc. ($6,750); and
reimbursables (not to exceed $400)
12/17/2014 $ 2,100.00 $ 16,250.00 Revise contruction/permit documents - change to

waiting area, work space, files, conference room, staff
office C, and staff office D. Burt Hill/Pollock Krieg
$900 and OCI Associates, Inc. $1,200.
TOTAL
$ 16,250.00
Payments - Burt Hill/Pollock Krieg Architects, Inc.

Invoice
10446
10554
10583
10613
10646
10698
10737
10780
TOTAL
Date
6/4/2014
11/1/2014
12/1/2014
1/6/2015
2/2/2015
3/4/2015
4/7/2015
6/30/2015
$
$
$
$
$
$
$
$
$
Amount
1,500.00
8,170.00
114.46
3,053.83
685.14
1,095.00
912.50
547.36
16,078.29
Description
Design
Construction Documents
Printing and Package Deliver
Construction Administration and Change Order #1
Construction Documents and Construction Administration
Construction Administration
Report No. 16-011 18 of 55
Houchin Construction, Inc. (PO#: P0059940)

Change
Order
Original
1
2
3
4
Total
Date
1/27/2015
Change
Order
Amount
-
Total
Description
$ 258,537.35 Construction labor and materials for the Edwards Hall
3rd floor remodel
4/17/2015 $
935.07 $ 259,472.42 Added two card readers in the vestibule. Total costs of
$11,097.69. A portion was requested under Contingency
Transfer #3 ($10,162.62). This change order is for the
balance ($935.07) only.
4/17/2015 $ 3,043.42 $ 262,515.84 Electrical plan revisions
5/20/2015 $ 2,857.71 $ 265,373.55 Window film on conference wall and 2 side lights
Deduct change order to adjust contract amount to final
6/15/2015 $ (6,960.75) $ 258,412.80 cost
$ 258,412.80
Payments - Houchin Construction, Inc.

Payment
Application
1
2
3
4
5
TOTAL
Date
4/14/2015
4/14/2015
5/18/2015
5/18/2015
7/6/2015
$
$
$
$
$
Amount
103,932.00
180,533.01
251,994.64
258,412.80
10%
Retainage
$ 10,393.21
$ 18,053.31
$ 25,199.47
$
$
-
Prior
Payment(s)
$
$
93,583.81
$ 162,479.70
$
$ 251,994.64
Payment
Notes
$ 93,583.81
$ 68,940.89
$ 64,315.47
$ 25,199.47 10% Retainage
$ 6,418.16
$ 258,457.80
NOTE: The Payment amount is the amount reflected on the Payment Application. There are minor
mathematical differences between this Payment amount and the calculation of the Amount Retainage
Prior Payments.
We conducted a walkthrough of the space on Monday, November 9, 2015. This guided

walkthrough was provided by Tom Mayo, Facilities Planning Director. The
walkthrough include office space on all floors of Edwards Hall.
We observed the space to be functional, and consistent with other office space
throughout Edwards Hall in size, design, furnishings, fixtures, and amenities.
Edwards Hall 3rd Floor Renovations
On the following pages are a diagram (see Appendix I for the Floor Plan) of the Vice
President and Chief of Staffs suite located on the 3rd Floor of Edwards Hall and photos
of the office space. The diagram illustrates the number and relative size of the offices
(in square feet). The following four pages contain pictures referencing the diagram to
provide more context for understanding the nature of the office space and associated
remodeling efforts.
Report No. 16-011 19 of 55
Staff Office A
224 sf
Staff Office B
193 sf
Entrance
Staff Office C
113 sf
385 sf
Conference Room
162 sf
Waiting
Area
Work Space
2 Cubicles
Staff Office D
144 sf
Files
Workroom
/Storage
230 sf
COS Office
313 sf
Exit
Storage
66 sf
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Vestibule
View from Main Office Hallway
Staff Office A
Staff Office B
Conference Room
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Workroom/Storage
Workroom/Storage
Workroom/Storage
Workroom/Storage
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Staff Office C
Staff Office D
COS Office (view from doorway)
COS Office (view from desk)
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COS Office Conference Table
COS Office (view into storage room)
COS Office Storage Room
COS Office Storage Room
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Appendix A - Engagement Notice and Requests for Information
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Appendix B - University Board of Trustees Powers and Duties

Board of Governors Regulation 1.001(5) Personnel.
(a) Each board of trustees shall provide for the establishment of the personnel program
for all the employees of the university, including the president, which may include but
is not limited to: compensation and other conditions of employment, recruitment and
selection, nonreappointment, standards for performance and conduct, evaluation,
benefits and hours of work, leave policies, recognition and awards, inventions and
works, travel, learning opportunities, exchange programs, academic freedom and
responsibility, promotion, assignment, demotion, transfer, tenure, and permanent
status, ethical obligations and conflicts of interest, restrictive covenants, disciplinary
actions, complaints, appeals and grievance procedures, and separation and termination
from employment. To the extent allowed by law, university employees shall continue to
be able to participate in the state group insurance programs and the state retirement
systems.
(b) Each board of trustees shall act as the sole public employer with regard to all public
employees of its university for the purposes of collective bargaining, and shall serve as
the legislative body for the resolution of impasses with regard to collective bargaining
matters.
(c) Each board of trustees shall select its university president subject to confirmation of
the candidate by the Board of Governors. A presidential search committee shall be
appointed to make recommendations to the full board of trustees. The board of trustees
shall select a candidate for confirmation by the Board of Governors. Prior to
confirmation, the board of trustees shall submit a written description of the selection
process and criteria, and the qualifications of the selected candidate to the Board of
Governors for its consideration in confirming the candidate. The candidate selected by
the board of trustees shall be required to appear before the Board of Governors at the
meeting where confirmation of the candidate will be considered. Such meeting will be
held as soon as practicable to ensure a timely transition. A two-thirds vote of the Board
of Governors shall be required to deny confirmation of a candidate selected by a board
of trustees.
(d) In the event that a board of trustees selects an interim president, such selection is
subject to confirmation of the candidate by the Board of Governors. If it is determined
by the board of trustees to be in the best interests of the university, the interim president
selected by the board may be delegated full authority to serve as the interim president
during the period prior to confirmation by the Board of Governors. Continued service
Report No. 16-011 30 of 55
as interim president requires confirmation by the Board of Governors, and the

candidate selected by the board of trustees shall be required to appear before the Board
of Governors at the meeting where confirmation will be considered. Such meeting will
be held as soon as practicable to ensure a timely transition.
(e) Each board of trustees shall develop guidelines for the annual evaluation of the
president.
(f) Each board of trustees shall conduct an annual evaluation of the president. The chair
of the board of trustees shall request input from the Chair of the Board of Governors,
who may involve the Chancellor, during the annual evaluation process pertaining to
responsiveness to the Board of Governors strategic goals and priorities, and
compliance with systemwide regulations.
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Appendix C FGCU Organization Chart
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Appendix D Hosseini Letter and Bradshaw Response
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Appendix E Henderson, Franklin, Starnes and Holt, P.A., Letters
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Appendix F General Counsel Web Page: Delegations of Authority
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Appendix G January 15, 2008 Delegation of Authority
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Appendix H FGCU Campus Map
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Appendix I Edwards Hall 3rd Floor Plan
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PROJECT TEAM:
This engagement was conducted and supervised by:
Audit Team Leader Lori Clark, Compliance and Audit Specialist,
Audit Staff Member Rebekah Weeks, Investigations and Audit Specialist, and
Audit Staff Member Kristina Marasia, OPS Student Assistant.
The report was approved by Joseph K. Maleszewski, Inspector General and Director of
Compliance.
Statement of Accordance
The Mission of the Office of Inspector General and Director of Compliance is to promote
accountability, integrity, and efficiency by providing quality audits, investigations, management
reviews, and technical assistance.
This inquiry was conducted in accordance with the OIGCs authority and responsibility under
section 20.155, Florida Statutes, that provides the OIGC with authority and responsibility to promote
accountability, efficiency, and effectiveness and to detect fraud and abuse within state universities.
This report is intended for the use of the agency (Board Office) to which it was disseminated and
may contain information that is exempt from disclosure under applicable law. Do not release
without prior coordination with the Office of Inspector General and Director of Compliance.
This report and other reports prepared by the Office of the Inspector General can be obtained by
contacting Lori Clark, Compliance and Audit Analyst, at 850-245-0466, or by mail at 325 West Gaines
Street, Suite 1614; Tallahassee, Florida 32399-0400.
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Definition of Internal Auditing

Internal auditing is an independent, objective assurance and
consulting activity designed to add value and improve an
organization's operations. It helps an organization accomplish
its objectives by bringing a systematic, disciplined approach to
evaluate and improve the effectiveness of risk management,
control, and governance processes.
Report No. 16-011 55 of 55

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OFFICE OF INSPECTOR GENERAL

325 West Gaines Street Tallahassee, FL 32399

December 18, 2015

Chancellor Criser and Chair Hosseini,

Thomas G. Kuntz, Vice Chair

Enhancing Public Trust in Government

Office of the Inspector General and Director of Compliance

Report No. 16-011 2 of 55

Office of the Inspector General and Director of Compliance

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Office of the Inspector General and Director of Compliance

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Office of the Inspector General and Director of Compliance

Office of Inspector General and Director of Compliance

Susan Evans, Vice President and Chief of Staff;

Report No. 16-011 5 of 55

Office of the Inspector General and Director of Compliance

SENIOR ADMINISTRATOR EMPLOYMENT CONTRACTS

Senior Administrator Salary Information and Trends;

Senior Administrator Salary Information and Trends

VP for Administrative Services and Finance $ 216,812.53

VP for University Advancement and ED of

Provost and VP for Academic Affairs

$ 236,430.90 2% $ 236,430.90 0% $ 290,902.00 19% $ 315,629.08

Report No. 16-011 6 of 55

Office of the Inspector General and Director of Compliance

Amount of Salary Paid from Education & General Funds

FGCU Senior Administrator Employment Contracts Summary

Yes 5-yr evergreen

Yes 3-yr evergreen

A&P stands for Administrative and Professional.

Report No. 16-011 7 of 55

Office of the Inspector General and Director of Compliance

FGCU Senior Administrator Employment Contracts Summary (Continued)

One Semester if $12,000;

One Semester if $12,000;

Serves at the pleasure of the President with no

Serves at the pleasure of the President with no

Addendum to Letter of Offer. Upon reassignment

One Semester if $12,000;

Current position is with rank of Professor of Marine

A&P stands for Administrative and Professional.

Report No. 16-011 8 of 55

Office of the Inspector General and Director of Compliance

LEVEL ONE DELEGATION

The resolution (Delegation of Authority) referenced in this text is included as Appendix G.

Report No. 16-011 9 of 55

Office of the Inspector General and Director of Compliance

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Office of the Inspector General and Director of Compliance

Once consensus is achieved and employment negotiations are complete, the

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Office of the Inspector General and Director of Compliance

Evergreen Contract Provision Diagram

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Office of the Inspector General and Director of Compliance

As summarized in the FGCU Senior Administrator Employment Contracts Summary

Office of the Inspector General and Director of Compliance

b. Upon reassignment, Employee will carry a new title with different

This provision is unprecedented among FGCU Vice President employment contracts.

Report No. 16-011 14 of 55

Office of the Inspector General and Director of Compliance

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