The BOT scheduled an emergency meeting to discuss the garage
and other renovations at President’s House on October 22, 2015. Joe Bakker, who
had retired as the interim chief financial officer (CFO), wrote then-CFO Dale
Cassidy a letter about the issue two days before that meeting. Bakker said the garage didn’t need BOT approval because it was paid out of
Minor Projects Fund dollars.
Warren gave a similar explanation to the BOT at the
emergency meeting on October 22.
“I recall a contract with a minor contractor to do work up
to a million dollars; that can be initiated by the Facilities Department and executed
without having it come back to the Board, and it's my understanding that the
work on the house was done under that one-million-dollar latitude,” he said.
He then discussed the part of Mangum’s employment agreement
that said capital improvements to the President’s House above $10,000 need BOT
approval.
“I view the $10,000 inclusion in the contract for her that
she would have to come to us for permission, on us anticipating that there
might be things about it that she would want done, and where those things were
$10,000 or more, she would have to bring them back to us. I don’t think that
Dr. Mangum -- to my knowledge, anyways -- has asked for or initiated anything
to be done to the house that would require her to bring it to us for Board
approval.”
Warren went on to criticize then-General Counsel Avery
McKnight for telling the BOT that the capital improvements at the President’s
House that took place after the start date of Mangum’s contract
should have been brought to the BOT for approval.
“I’m appalled, quite frankly, by his counsel to us that Dr.
Mangum would be obligated or be responsible for an activity of the University
that preceded her arrival,” Warren said.
McKnight continued to stand by his statement and said “there
was affirmative duty to report any projected cost over $10,000.” He called attention to purchase order for the garage that was made on June 19, 2014 after the start date of the presidential contract on April 1, 2014.
Student Body President Tonnette S. Graham then asked McKnight if the president’s contract had been violated.
“Was she in violation of her contract? Yes or no?” Graham
asked him.
“Based upon the documents as reflected, yes, it appears so,”
McKnight said.
Mangum narrowly survived two attempts to fire her on that
day. She later fired McKnight.
The independent report by Grant Thornton LLP that was
requested by the BOT stated that “the University did not comply with the
provisions of the President’s Employment Agreement regarding the renovations to
the University owned residence” for the garage project. It called the problem
“Material noncompliance with University owned residence renovation
regulations.”