What’s going on at NIU?
Tuesday, May 9, 2017 - Posted by Rich Miller
* From the Daily Chronicle…
Cuts and deferred maintenance at Northern Illinois University will be necessary to keep reserves adequate, President Doug Baker said.
Without a state budget, Baker has said the university is facing a projected $35 million funding gap, and must prepare for a worst-case scenario until the next fiscal year – lack of funding and no Monetary Award Program grants, which about 5,000 students rely on.
Baker said in an email April 28 that to offset lack of funding, spending reductions must be made – including cuts. He added that attrition will not be enough to support the burden of personnel costs, and some staff members have been notified about how their employment may be affected, while others will hear about the status of their jobs this month.
Baker said other keys to closing the gap will be increased support from donors and other revenue generators.
* Hmm. But maybe spending $685 an hour for a total so far of $189K to defend the president during an OEIG probe might be looked at…
NIU has paid thousands of dollars in legal fees to outside counsel for President Doug Baker as a result of an Office of Executive Inspector General investigation.
The OEIG, a state agency that investigates allegations of misconduct, received a complaint about Baker’s administration and subsequently began an investigation. Because the agency does not generally comment on investigations, it is unclear when the complaint was made, though correspondence obtained on April 17 from NIU through a Freedom of Information Act request by the Northern Star shows that outside counsel for an OEIG investigation was retained on Feb. 20, 2015.
The nature of the investigation is unclear. There has only been one OEIG investigation that Baker is aware of, and he is not sure if it is ongoing or not. Lisa Miner, senior director of institutional communications, also confirmed that there was only one OEIG investigation into Baker and his administration.
There is also an ongoing civil lawsuit filed by former Controller Keith Jackson against NIU, the Board of Trustees, President Doug Baker and Nancy Suttenfield, former interim chief financial officer.
* Or close to half a million dollars for an “oral report”…
While lawmakers in Springfield struggle to agree upon a full budget for the third consecutive year and NIU employees are in danger of losing their jobs, a four-month $468,050.39 investigation conducted in 2014 provided only an oral report of recommendations for improved reliability of financial reporting and compliance with laws, regulations and policies.
This investigation into internal control seems to be referenced in a Dec. 22 Baker Report. Investigations concluded that in 2013 and 2014 there were “weaknesses in internal controls, some limited compliance violations, and lack of clarity of policies across multiple units,” according to the report.
The investigation was completed by the forensic audit firm Alvarez & Marsal, the same firm that former NIU Controller Keith Jackson’s lawsuit against NIU, the Board of Trustees, President Doug Baker and Nancy Suttenfield, former interim chief financial officer, alleges was hired to “dredge for evidence of wrongdoing” committed by Jackson and other individuals Baker and Suttenfield had targeted for termination.
* And check out this reasoning for stopping work on a program that’s supposed to, in part, find ways to save money…
“Between [Fiscal Year 2018] budget development on our campus, Springfield and an incredibly large number of ridiculous, I’ll say, legislative requests that we’ve had to respond to, we’ve just not have not had the human resources to devote to doing the assessment of Program Prioritization at the level we really want to communicate it,” Freeman said. “This is not an attempt to be opaque.”
- Langhorne - Tuesday, May 9, 17 @ 1:18 pm:
Dumb
Ready made RAUNER talking points
- Anonymous - Tuesday, May 9, 17 @ 1:25 pm:
Dumb question. Must outside, very expensive legal counsel be paid for an issue (whatever the hell the issue is) like this?
- Clark - Tuesday, May 9, 17 @ 1:29 pm:
“Ready made RAUNER talking points”
This is not a partisan issue. This report comes after Baker spent over $30,000 in travel costs for this wife on the university’s tab, who is not even an employee or had any purposes traveling the country. They just don’t like Baker over there.
- Taxation = Civilization - Tuesday, May 9, 17 @ 1:30 pm:
One of the big problems for higher ed in this state is that Rauner is not wrong about it being top heavy with bloated administrations…
The other big problem is that completely starving higher ed of funding has inflicted horrible damage on higher ed, mostly by squeezing students, profs, and low-level clerical workers.
- Norseman - Tuesday, May 9, 17 @ 1:30 pm:
=== … incredibly large number of ridiculous, I’ll say, legislative requests that we’ve had to respond to … ===
Looks like my Alma mater needs some guidance on legislative relations. I’m available and would be happy to help and I wouldn’t need an hourly as rich as the attorneys contract.
- In 630 - Tuesday, May 9, 17 @ 1:44 pm:
Baker was a lousy choice who came out of a secretive selection process (as opposed to his predecessor who was chosen after open forums for all the finalists) and at a time when NIU most needs a visionary.
- Flip357 - Tuesday, May 9, 17 @ 1:53 pm:
Was a grad student at NIU during the Peters/Baker transition. Around this time, leaks began to appear in the ship, largely a result of lax oversight and opportunistic employees.
-2011, an administrative office director has student volunteers paint her house during a university-wide community service event. VP moves administrator to less high-publicity office.
-2012, coffee fund incident. Scrap metal harvested from university projects is sold and proceeds diverted into off-the-books “coffee fund” for personal project. Nine charged, one department head looses job.
-2012, Baker search. Search for Peters’ replacement is conducted behind closed doors. Names of candidates not publicly released, no public interviews. No one knew who was considered or interviewed. Northern Star raises questions, which are promptly dismissed.
Simply put, Baker was never vetted. Even professorship positions are subject to an incredible interview process which includes meetings with every administrator interested. Town-hall style group interviews with faculty, grad students, and undergrads. Ramp up the pageantry for higher-level positions.
- Mike Haji-Sheikh - Tuesday, May 9, 17 @ 2:17 pm:
There is an investigation over hiring practices by the OEIG. $164,000 in defensive fees for Baker for the OEIG. The Board of Trustees had a case referred to it from the OEIG over a contractor named Jim Heid - they combined it with an investigation over other questionable contracts. This investigation cost $160,000 and is being done by a Chicago lawfirm called Francek Radelet. This cost the University $25,000 to defend Baker. Additional investigations of $100,000 by another lawfirm called Drinker Biddle about the hiring practices of Dr Baker was also done.
What a mess.
- Mike Haji-Sheikh - Tuesday, May 9, 17 @ 2:32 pm:
We tried to have a vote of confidence over the President in the Faculty Senate. The FS President was afraid of upsetting the BOT so it was tabled for now. There is a 360 deg review for the President going on at the moment, we don’t know what the result will be. Four new members have been appointed by Rauner in the last 2 years. Unfortunately at least 2, Tim Struthers and D. Barsema, have had some questionable interactions with Dr. Baker in the past. I hope they do the right thing.
- illini - Tuesday, May 9, 17 @ 2:47 pm:
As much as I can be reliably be counted on to support and promote my AlmaMater, I have also been very open about my criticism of what has happened to funding for ALL of Higher Ed in Illinois.
As one of the Regionals, NIU is a part of our deteriorating system. And this includes our Community Colleges as well.
Yet, stories such as this only gives the Governor even more ammunition to totally destroy what has taken half a century to build.
Admittedly, I do not know the backside or all the details of this story, but this does not look good.
And the repercussions will only continue.
- walker - Tuesday, May 9, 17 @ 2:51 pm:
“‘necessary to keep reserves adequate”"
For what? Nuclear war?
Most state agencies and suppliers are way beyond that point.
- Arthur Andersen - Tuesday, May 9, 17 @ 2:58 pm:
Can someone explain why public funds are being used to pay someone’s defense lawyer?
- illini - Tuesday, May 9, 17 @ 3:32 pm:
@AA - I knew I should have gone to Law School after Grad School, but I needed a break and never followed through.
- Arthur Andersen - Tuesday, May 9, 17 @ 3:58 pm:
Illini, you and me both.
- wordslinger - Tuesday, May 9, 17 @ 4:13 pm:
–While lawmakers in Springfield struggle to agree upon a full budget for the third consecutive year and NIU employees are in danger of losing their jobs, a four-month $468,050.39 investigation conducted in 2014 provided only an oral report of recommendations for improved reliability of financial reporting and compliance with laws, regulations and policies–
Oral report for $500K? Is that a gag?
I would like some NIU officials and those from Alvarez and Marsal to raise their right hands and give oral explanations to a GA committee as to how a fat plum like that gets dished out and you don’t even produce a written report.
Perhaps a grand jury would like to hear how that came about as well.
- Anonymous - Tuesday, May 9, 17 @ 5:09 pm:
So, it is mostly mismanagement at NIU, EIU, Chicago State, Northeastern and on and on.
Learn how to run universities
- Critical Thinking - Tuesday, May 9, 17 @ 5:27 pm:
Anonymous @5:09, how did you come to that conclusion? That’s a pretty extreme statement based on awfully skimpy evidence.
- Demise - Tuesday, May 9, 17 @ 5:40 pm:
Apparently they were billed for report drafting. Do you have to draft an oral report?
- Demise - Tuesday, May 9, 17 @ 5:41 pm:
Also, the law school dean has been on administrative leave for at least a couple months without explanation. Fun times at NIU.
- simpleton - Tuesday, May 9, 17 @ 5:52 pm:
Maintaining reserves is basic business sense, especially for a starving institution, it’s a form of rationing. Also y’all moaning about $400k when the problem is a lack of over $100M in state funding the past few years. Get a sense of perspective.
- wordslinger - Tuesday, May 9, 17 @ 5:56 pm:
–Also y’all moaning about $400k when the problem is a lack of over $100M in state funding the past few years. Get a sense of perspective.–
From my perspective, dropping close to $500K for a little chit-chat from auditors does not inspire confidence in fiscal responsibility.
In fact, as I said before, it screams out for many questions to be answered under oath.
- Mike Haji-Sheikh - Tuesday, May 9, 17 @ 10:22 pm:
The administration of NIU exudes a stench and needs a good house cleaning - starting with President and the Provost. I asked them for quarterly financials multiple times. Nothing.
- Peanut Gallery - Wednesday, May 10, 17 @ 10:48 am:
And then there is the $450K for the Puppies and their recharging station. Electric carts to supplement the Huskies busses; strongly recommended by Baker’s consultant friend–who lives in a moderate climate on an island off of Seattle. Locals told him they wouldn’t work in a northern Illinous winter. They didn’t. Now mostly relegated to chauffeuring VIPs around at football games.
- Peanut Gallery - Wednesday, May 10, 17 @ 11:40 am:
And the $480K for Baker’s above mentioned consultant friend, who Baker hired before he actually took office. The consultant’s own email confirmed the action: “hiring his buddy right off the bat to come in under some lucrative consulting contract that wasn’t put out for bid”. As posted by the Edgar County Watchdogs.