2020-12-04

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2020-12-04 2020-12-04

Board of Regents, Murray State University

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Minutes of the Quarterly Meeting of the Board of Regents

Murray State University

December 4, 2020

Call to Order/Roll Call

The Murray State University Board of Regents met on Friday, December 4, 2020, in Quarterly

and Committee Session via video teleconferencing (ZOOM). Chair Jerry Rhoads called the

meeting to order at 8:30 a.m. and welcomed those joining the meeting via ZOOM or Livestream.

The roll was called and the following Board members were present: Eric Crigler, Virginia Gray,

Sharon Green, Warren Norman, Leon Owens, Jerry Rhoads, Lisa Rudolph, Phil Schooley,

Melony Shemberger and Don Tharpe. Absent: none.

Others participating in the ZOOM meeting were: Robert L (Bob) Jackson, President; Jill Hunt,

Senior Executive Coordinator for the President, Coordinator for Board Relations and Secretary

to the Board; Tim Todd, Provost and Vice President for Academic Affairs; Jackie Dudley, Vice

President for Finance and Administrative Services and Treasurer to the Board; Don Robertson,

Vice President for Student Affairs and Enrollment Management; Bob Pervine, Associate

Provost; Robert Miller, General Counsel; Jordan Smith, Executive Director of Governmental and

Institutional Relations; Renee Fister, Director of Institutional Effectiveness and Strategic

Planning; Shawn Touney, Executive Director of Marketing and Communication and Information

Technology staff monitoring the technology component of the meeting. The meeting was also

livestreamed to provide access to the general public. It was noted that various presenters would

join the Board via ZOOM at the appropriate time throughout the meeting.

AGENDA

Call to Order Chair Rhoads

Roll Call Secretary Hunt

Consent Agenda Chair Rhoads/President Jackson

A. Minutes of the Annual Retreat on August 27, 2020, and

Summer Quarterly Meeting and Committee Meetings of

the Board of Regents on August 28, 2020*

B. Report of the Registrar* Provost Todd/Registrar Roberts

(August and December 2020 Conferral of Degrees)

C. Academic Excellence and Scholarly Activities Committee – University

Appeals Board Appointments*

D. Audit and Compliance Committee (For Information Only)

1) Office of Internal Audit – Internal Audit Work Status Report

2) Office of Internal Audit – Summary of Presidential Travel Report

E. Finance Committee

1) State Endowment Match Program Annual Report*

2) Personal Services Contracts – Schedule of Expenditures (For

Information Only)

F. Personnel Changes

1) Professor Emeritus Designations*

2) Staff Leaves of Absence without Pay*

Report of the Chair Chair Rhoads

Report of the President President Jackson

Report of the Treasurer* Vice President FAS Dudley

(Quarterly Financial and Investment Reports)

Board of Regents Self-Evaluation Results Presentation Associate Provost Pervine

(For Information Only)

Approval of Revised University Mission Statement* President Jackson/Provost Todd

Approval of 2020-25 Strategic Plan* President Jackson/Provost Todd

Committee Reports/Recommendations

A. Academic Excellence and Scholarly Activities Regent Shemberger

1) Southern Association of Colleges and Schools Commission on Colleges

Reaffirmation of Institutional Accreditation – 5

Year Interim Report (For

Information Only)

B. Athletics Regent Crigler

1) Personnel Changes – Contracts of Employment – Assistant Coaches

(For Information Only)

C. Audit and Compliance Regent Tharpe

1) Audited Financial Statements – General*

a. Report to Governance on the Results of Annual Independent Audit

b. Required Auditor Communications (includes Representation Letter)

c. Independence/Peer Review Letter

d. House Bill 622 Compliance Report for the Year Ended June 30, 2020

e. Kentucky Lease Law Compliance Report for the Year Ended June 30, 2020

f. General Financial Statements for the Year Ended June 30, 2020

2) Annual Audit Report – Athletics*

a. National Collegiate Athletic Association Independent Accountant’s Report

on Application of Agreed-Upon Procedures for Intercollegiate Athletics for

the Year Ended June 30, 2020

3) Annual Audit Report – WKMS-FM*

a. Required Auditor Communications

b. Audited Financial Statements for the Year Ended June 30, 2020

4) Annual Audit Contract Renewal*

D. Buildings and Grounds Regent Schooley

1) Sewer Easement – Paducah Regional Campus*

2) Lovett Auditorium HVAC and Electrical Systems Renovations Program

Statement*

3) Disposition of Structure – Special Education Storage Building (#0118)*

4) Major Projects Update (For Information Only)

E. Enrollment Management and Student Success Regents Rudolph and Norman

1) Enrollment and Retention Update Report (For Information Only)

12 noon (approx.) Break for Lunch

12:30 p.m. (approx.) Reconvene

F. Finance Regent Owens

1) Financial Update (For Information Only)

2) Kentucky Employees Retirement System Non-Hazardous Pension System

Participation Decision*

3) Lovett Auditorium HVAC and Electrical System Renovations Project Funding*

4) Establishment and Designation of the Dr. Robert “Doc” McGaughey Fund for

Excellence in Journalism and Mass Communications Quasi-Endowment*

5) Projects Approval*

6) Personal Services Contracts*

G. Legislative and Economic Development Regent Gray

1) Legislative Update Report (For Information Only)

H. Marketing and Community Engagement Regent Green

1) Gifts-in-Kind

a. Acceptance of Tosh Wean-Finish Facility – Hutson School of

Agriculture*

b. Acceptance of Coins from the Dr. Robert Howe McGaughey III Estate

and Designation of Proceeds from Sale*

2) Naming Opportunity – Dennis Jackson Racer Room in Roy Stewart Stadium*

I. Ad Hoc Presidential Evaluation Process Review Committee Regent Crigler

1) Minutes of the Board of Regents Ad Hoc Presidential Evaluation Process

Review Committee Meetings on October 29, 2020, and November 20, 2020*

2) Operating Procedure for Presidential Evaluation Revisions*

NOTE: Full Board action will follow Committee action.

Policy Changes President Jackson

A. Board of Regents Policy Manual – Section 2.21 – Sexual Harassment Policy

Revisions*

B. Board of Regents Policy Manual – Section 2.24 (becomes part of Section 2.21) –

Sexual Violence and Misconduct, Relationship Violence and Stalking Policy

Revisions*

C. Board of Regents Policy Manual – New Section 2.24 – Minors on Campus (first

reading)*

D. Board of Regents Policy Manual – Section 2.6 – Fee Establishment Revisions

(first reading)*

Board Development (For Information Only) Dir. of Housing/Staff Congress

A. 2020 Staff Perspective Survey President Wilson

Supplemental Materials (For Information Only) President Jackson

A. “Good News” Report (October 2020)

B. Quarterly Branding, Marketing and Communication Report (July –

September 2020)

C. Sponsored Programs – Grants and Contracts Report

Other Business Chair Rhoads

Adjournment Chair Rhoads

(*Requires Board of Regents Action)

Consent Agenda Items, approved

Chair Rhoads reported the following action and “For Information Only” items were included on

the Consent Agenda for approval/acceptance (action items are denoted with an asterisk):

• Minutes of the Board of Regents Annual Retreat on August 27, 2020, and Minutes of the

Summer Quarterly and Committee Meetings on August 28, 2020*

• Report of the Registrar (August and December 2020 Conferral of Degrees)*

(See Attachments #1 and #2)

• Academic Excellence and Scholarly Activities Committee – University Appeals Board

Appointments*

As stated in Section 6.6 of the Board of Regents Policy Manual, decisions of the University

Judicial Board may be appealed to the University Appeals Board. Decisions involving

disciplinary suspension or expulsion are automatically appealed to the University Appeals Board.

The nine-member University Appeals Board consists of six faculty members and three students.

A request is being made for the following faculty members to be appointed to the University

Appeals Board from the present until the end of term indicated.

David Gesler Arthur J. Bauernfeind College of Business Term expires June 2023

Sean Simons College of Education and Human Services Term expires June 2023

Jeremy Erdmann School of Nursing and Health Professions Term expires June 2023

• Audit and Compliance Committee – Office of Internal Audit – Internal Audit Work Status

Report (For Information Only)

• Audit and Compliance Committee – Office of Internal Audit – Summary of Presidential

Travel Report (For Information Only)

• Finance Committee – State Endowment Match Program Annual Report*

(See Attachment #3)

• Finance Committee – Personal Services Contracts – Schedule of Expenditures (For

Information Only)

• Personnel Changes – Professor Emeritus Designations*

According to the Murray State University Bulletin, the rank of Professor Emeritus is assigned to

Assistant Professors, Associate Professors or Professors who have limited or terminated their

responsibilities as ranked faculty members after ten or more years of distinguished service to

Murray State University. Faculty Emeritus designation is being recommended for the following

faculty members:

Renae Duncan Psychology Professor

Harry Fannin Chemistry Professor

John Fannin Music Associate Professor

Joseph Morgan Agricultural Science Professor

Robert Pilgrim Computer Science and Information Systems Associate Professor

Jeanetta Riley Early Childhood and Elementary Education Professor

• Personnel Changes – Staff Leaves of Absence without Pay*

Murray State University offers a variety of excused staff leaves without pay such as faculty

medical leave, military leave, educational leave, a personal leave or a general leave of absence.

Conditions and requirements for the specific types of leaves are defined in the Board-approved

Personnel Policies and Procedures Manual. Staff Leaves of Absence without Pay that have

been processed as of August 11, 2020, include:

Name Department Effective Date

Audrey Allbritten University Libraries 8/3/2020-10/15/2020

Donovan Alexander University Parking 9/15/2020-9/25/2020

Clara Bearsby Teacher Education Services 8/10/2020

9/17/2020

9/25/2020

10/23/2020

Angela Lampe Facilities Management 9/8/2020-10/2/2020

Andrea Rogers University Store 7/14/2020-7/31/2020

8/3/2020-9/8/2020*

Anna-Marie Ulrich Undergraduate Admissions 9/28/2020-11/9/2020

*Intermittent Leave

Dr. Tharpe moved that the Board of Regents, upon the recommendation of the President of the

University, approve the action items on the Consent Agenda as submitted. Mr. Schooley

seconded and the motion carried unanimously.

Report of the Chair, received

Chair Rhoads reported that the pandemic has been challenging for the postsecondary education

system which includes Murray State. This is in addition to other challenges already facing the

University such as a decline in state funding, increase in pension obligations, unfavorable

performance funding provisions, enrollment challenges and many other factors. Recent

publications have noted that colleges and universities nationwide have experienced 16 percent

fewer freshman enrollments and the effect this has had on the postsecondary education system is

evident. Despite these challenges, Murray State is doing well considering the current

environment and this is due to the strong leadership of President Jackson and his leadership team

and dedicated faculty and staff who have planned and implemented the Racer Restart Plan

practically 24/7 since March. The campus is as safe as possible, there have been no sacrifices

made in terms of academic quality, strong enrollment figures continue and Murray State has

maintained a focus on its mission of being a student-centered university. He publicly thanked

President Jackson, his leadership team and faculty, staff and students for the way they have

coped with the pandemic as these efforts were undertaken in compliance with the Racer Restart

Plan.

Chair Rhoads also recognized partners Sodexo (dining services) and SSC (buildings and

grounds) for doing a tremendous job under very difficult circumstances due to the pandemic.

The campus has never looked more beautiful than it does today. Major positive developments

include installation of the Racer One bronze statue that greets visitors to campus in front of the

Curris Center and the John W. Carr statue in the central mall area. The University’s goal during

the pandemic was not just to survive but to emerge even stronger by thinking about new ways to

recruit, educate and retain its most important asset – students.

Secretary Hunt sent emails on Chair Rhoads’ behalf regarding Board member committee

preferences. All were asked to indicate their top four preferences but a few individuals have not

yet responded. Regents were reminded to send their Committee preferences to Secretary Hunt.

Final committee assignments will be made once Governor Andy Beshear appoints a replacement

for the current vacancy on the Board. In the meantime, the committee structure that is already in

place will be utilized.

Report of the President, received

President Jackson reported that for the Fall 2020 Semester approximately 65 percent of colleges

and universities across the country were either totally or mostly remote. Murray State was not

and this can be credited to faculty, staff, students and administrators – including the Vice

Presidents, President’s Executive Council, Deans and Chairs, Human Resources team, Faculty

Senate President, Faculty and Staff Regents and the Director of Athletics. In particular with

regard to housing, Dr. Jackson recognized David Looney, Executive Director of Auxiliary

Services and his Data and Communications Manager Emily Asher; Director of Housing David

Wilson; the Residential College Heads; Resident Assistants and Directors and housing staff.

This has been a difficult time and these individuals – along with many others – helped make the

Fall 2020 Semester successful for students. The Spring 2021 Semester will look much the same

due to the ongoing pandemic. Jordan Smith was recognized for serving as the University’s

Health and Safety Officer whose primary responsibility in this role is to help Murray State

maneuver through the Racer Restart Plan. Appreciation was expressed to all for their efforts,

dedication and hard work. Necessary changes are currently being made to the Racer Restart Plan

for the Spring 2021 Semester, including adjustments to the academic calendar.

Information was presented relative to Fall 2020 Semester course delivery for the eight public

institutions in the Commonwealth (as reported in the Chronicle of Higher Education). The data

presented illustrates how courses were delivered at each of the schools. No university delivered

all courses in-person. Two universities – including Murray State – delivered courses primarily

in-person. Two universities delivered courses through hybrid means and four provided classes

primarily online. It was not an easy task for Murray State to deliver courses primarily face-to-

face and Provost Todd and all facets of academic leadership are to be commended for their

efforts which provided this opportunity.

Recent rankings include U.S. News & World Report recognizing Murray State for the 30

consecutive year as a “Top Tier” university and Washington Monthly naming MSU as a “Best

Bang for the Buck” top public university in Kentucky. Money Magazine recognized Murray

State among the 2021 Best Colleges in America Ranked by Value – top public university in

Kentucky. Rankings information is provided to the Board on a regular basis and all were

encouraged to indicate whether too much or too little information is being shared. Confirmation

was provided that these rankings – and the value of a Murray State education and the safety of

campus – are shared regularly as recruitment and retention tools.

Photos were shown of the first day of the Fall 2020 Semester and while a large number of

students were on campus walking through the mall area, all had on masks. Appreciation was

expressed to Regent Norman in this regard as adherence to the mask mandate was 99.5 percent

or higher. This effort is how students were allowed to remain on campus and the leadership of

the various student groups in recognizing the importance of wearing masks was very much

appreciated.

Information presented on campus appearance included work being completed on the Price Doyle

Fine Arts Building in terms of painting, sealing and window repairs. Appreciation was

expressed to Mr. Youngblood and the Facilities Management team for completing this work. All

are proud of the work SSC has undertaken with the assistance of custodial and grounds staff and

the entire Facilities Management team. This fall, Starbucks, Steak ‘n Shake, Tres Habaneros and

Subconnection opened in the Curris Center. These restaurant venues are important to the

institution for recruiting and retention purposes – as well as to faculty and staff. Future updates

for the Curris Center are also being planned to refresh and enhance the facility. This work is

being undertaken with student leadership and others in regard to the functionality needed in this

facility. A great deal of work is currently underway in Lovett Auditorium and other historic

buildings on campus. Appreciation was expressed to Vice President Dudley who manages the

entire Facilities Management team that has been required to operate in a challenging

environment compounded by the pandemic.

Dina Byers, Dean of the School of Nursing and Health Professions, and others have discussed

needs in that area and how to enhance and grow programs. As part of this work, the School has

received a United States Department of Agriculture (USDA) grant in the amount of $960,000

and a Kentucky Hospital Research and Education Foundation grant of $25,000 to build a new

Nursing Education Simulation Center. Appreciation was expressed to Dean Byers and faculty

and staff in the School of Nursing and Health Professions – in addition to Provost Todd – for

their efforts to secure this grant funding. The University is partnering with Murray-Calloway

County Hospital on this project because there is not sufficient space in Mason Hall on campus to

house the Nursing Education Simulation Center. The University graduates 70 new nurses each

year with a Bachelor of Science in Nursing degree but there are approximately 700 students in

the School of Nursing and Health Professions overall. Appreciation was expressed to the

University’s congressional delegation – Senate Minority Leader Mitch McConnell, U.S. Senator

Rand Paul and U.S. Congressman James Comer – who were all very supportive and wrote letters

or made phone calls to the USDA on behalf of the University in regard to this initiative.

The University also received a Paducah Area Community Reuse Organization (PACRO) grant in

the amount of $25,000. Appreciation was expressed to PACRO Executive Director Greg Wiles

and Board member Jordan Smith for their efforts in this regard. This grant will be used to

enhance professional health programs at the Paducah Regional Campus. The University

currently offers a Masters of Occupational Therapy degree and the PACRO grant will provide

funds needed to enhance additional programs.

Dr. Jackson reported that the Board will be presented with additional information on the draft

Strategic Plan and an amended Mission Statement. A great deal of work has gone into these

efforts over the past year and a half and appreciation was expressed to Provost Todd for his

leadership in this regard. The draft Strategic Plan was originally presented to the Board in

August and since that time work has been undertaken with the President’s Executive Council,

Faculty Senate, Staff Congress and the Student Government Association to secure input and

proceed following direction provided by the Board. Previously, the University had a very long

Mission Statement and that has now been amended to be precise and more accurately reflect the

institution’s focus.

A pension proposal will be presented to the Board later today in regard to the Kentucky

Employees Retirement System (KERS). Vice President Dudley has led this effort with

assistance from the University’s auditors – Dean Dorton – who have assessed and analyzed the

KERS pension proposal to help the University determine whether it would be feasible to leave

the system. In order to leave KERS, the University would be required to take on approximately

$150 million in new debt and would have to pledge all of its available assets for security (if

financed through KERS). This represents a 30-year mortgage for this institution which is why

the recommendation will be made for the University to remain in KERS. All other state

universities, with the exception of Northern Kentucky, also plan to remain in the system. It was

also recently learned that Governor Andy Beshear will be providing Murray State with at least an

additional $1.01 million in Coronavirus relief funds to assist with additional costs incurred as a

result of the pandemic. All are appreciative of the Governor’s support of public higher education

following an extensive auditing process for all the universities.

Dr. Jackson is the Convener of the public University Presidents and weekly meetings have been

held with the Council on Postsecondary Education (CPE) to discuss the Coronavirus response,

Performance Funding Model, pension system and legislative initiatives. The Performance

Funding Work Group, comprised of all university Presidents, CPE President Aaron Thompson,

Senator David Givens (architect of performance funding in the Commonwealth) and Chair James

Tipton (higher education leader in the House), has also been meeting. The group unanimously

agreed to advance the recommendation to the Legislature that the appropriation base for each of

the institutions be protected and that only new money put into the Performance Funding Model

will be utilized moving forward. This means the Legislature will be responsible for putting new

funding into the model in the future and only those monies will be distributed to the universities

on a performance funding basis. Last year due to the Performance Funding Model stop-loss

provision, every university had to take 2 percent of its base funding and put it into the formula.

These monies were then recirculated among the public universities. Murray State lost its entire 2

percent but none of the smaller universities made back their full 2 percent contribution. The

unanimous Performance Funding Work Group recommendation will be advanced to the

Legislature – with the support and leadership of Senator Givens and Representative Tipton.

Appreciation was expressed to all involved in reviewing the various scenarios in regard to the

Performance Funding Model to ensure any change was negotiated correctly. With the CPE,

agreement was also reached to ask the Legislature for a significant increase in funding and this

new money would be part of the Performance Funding Model. Requests have also been made

for Asset Preservation Funds and pension relief to be provided to the institutions. In terms of

pension relief, the recommendation has been made to maintain the current contribution rates in

KERS – 49.47 percent for Murray State – or, if the rate does increase, the Legislature would

appropriate funds to cover the difference. Other meetings have occurred with a number of

legislators over the last few months. Appreciation was expressed to Regent Gray for helping

bring together legislators and other leaders in Christian County to meet with University staff in

regard to the topics just outlined. Other legislative meetings have occurred both in-person and

virtually as the Legislative Session approaches in January 2021. The University also continues

to meet with Superintendents, Principals, Guidance Counselors, teachers and prospective

students and their families.

Initiatives with regard to diversity, equity and inclusion involved discussions with Dr. Robertson

and S. G. Carthell, Executive Director of Multicultural Initiatives, Office of Multicultural

Initiatives, Student Leadership and Inclusive Excellence/Director of the Dr. Marvin D. Mills, Sr.

Multicultural Center, regarding efforts which can be undertaken on campus. Major events were

held during the Fall 2020 Semester, including the Diversity, Equity and Inclusion Listening

Sessions in August, September and November which included University administrators and was

open to all students and the Virtual Symposium in October (with over 300 participants). CPE

President Aaron Thompson served as the Keynote Speaker for the Symposium and appreciation

was expressed to Regents Tharpe and Owens for their participation in the Symposium and

Listening Sessions. These initiatives helped illustrate the importance of diversity, equity and

inclusion at Murray State University and how it can be advanced in a positive manner. As part

of the Listening Sessions, students were able to talk directly with the President, Provost and Vice

Presidents. Regent Tharpe indicated that the Symposium and Listening Sessions represented the

best Murray State has shined in terms of diversity and inclusion. The world is hypersensitive

with regard to this topic and minority students being able to meet with senior leadership shows

the University’s concern for these individuals and the desire to address the needs of students of

color. The inaugural Distinguished Presidential Fellow award was also presented to Mrs. Eunice

J. Mills, the wife of Dr. Marvin Mills. Ten distinguished alumni from across the country and

two current and three former Regents participated in the Symposium.

Dr. Jackson reported that in 2019 he formed a Task Force to review the recruitment of faculty,

staff and students of color and different proposals have resulted. One recommendation was to

change the University’s scholarship program and, as a result, diversity scholarships have been

increased from 30 in 2018 to 62 today. These include the Dr. Marvin D. Mills, Sr. Full

Scholarship; Dr. Marvin D. Mills, Sr. Gold Scholarship and Dr. Marvin D. Mills, Sr. Blue

Diversity Scholarship. The Eunice J. Mills Retention Scholarship has also been implemented.

Regent Norman and the Student Government Association worked diligently to ensure

Homecoming was as normal as possible this year and photos highlighting that event were

presented. Appreciation was expressed to Chair Rhoads and his wife Judy for serving as

Homecoming Grand Marshals and participating in the scheduled events. The Ribbon Cutting for

the Racer One bronze statue was also held during Homecoming with donors Jack and Janice

Rose. Many students, alumni, friends and prospective students have already visited campus and

utilized the location for a photo opportunity. The Dedication and Ribbon Cutting for the Carr

statue was also held in front of John W. Carr Hall as part of Homecoming festivities. The

generosity of Dr. and Mrs. Rose, as well as other donors, is very much appreciated.

Dr. Jackson indicated that a detailed enrollment report will be provided by Dr. Robertson and

others but the national landscape for university enrollment for Fall 2020 was presented with the

following highlights:

- For public four-year universities, first-time freshman enrollment declined 13.7 percent and graduate

enrollment increased 4 percent.

- For public community colleges, there was a 22.7 percent decline in first-time community college

students, with a total community college enrollment decline of 9.4 percent.

- Total undergraduate enrollment declined 4 percent.

Appreciation was expressed to Dr. Robertson; Shawn Smee, Director of Recruitment; Matt

Jones, Coordinator of Domestic Graduate Recruitment and Retention; the Deans; Chairs and

faculty and staff for the groundwork they have laid over the last couple of years with a focus on

increasing enrollment at Murray State. The importance of recruitment is well known because 71

percent of the University’s budget is directed by enrollment. Dr. Fister has provided the

University with a service it has not had in the past in regard to predictive analysis. This tool has

made a significant difference in terms of how the institution targets marketing, advertising, direct

mail and social media efforts to more effectively recruit students. Peggy Whaley, Director of

Student Engagement and Success, and her staff have done an excellent job relative to retention.

Appreciation was expressed to all for their efforts.

Dr. Jackson outlined challenges which lie ahead for the University, including Fiscal Year 2020-

21, performance funding, federal stimulus, state budget, pensions, enrollment and the upcoming

Legislative Session. Work on the second year of the state budget will begin in January and

University representatives will be integrally involved in that process.

Racers Give 2020 represents the third round of need-based scholarship initiatives to assist with

recruitment and retention. Last year, Racers Give raised $418,000 and an estimated 400

incoming freshman students were impacted this fall. There is also a matching grant for next

year. Appreciation was expressed to the MSU Foundation that has advanced monies to match

other funds that are raised. The Foundation has set aside over $60,000 for this purpose. Trustee

Jerry Shroat and his wife Betsy also made a significant scholarship gift. The Racers Give 2020

campaign includes a major gift recognizing the Board of Regents during this holiday season in

appreciation for all they do for the institution. All were encouraged to give personally if they are

able.

This report was presented for informational purposes only and required no Board action.

Report of the Treasurer, accepted

Ms. Dudley reported Kentucky Revised Statute 164.420 stipulates that “The treasurer of each

governing board shall receive and disburse all money under the control of the Board, perform all

acts that pertain to his office under the direction of the Board and make timely reports to the

Board on a schedule established by the Board.” The following was highlighted:

➢ The information being presented today is based on data that has been analyzed through September

(one quarter).

➢ Tuition is collected in August but revenue is booked in January for both Spring and Fall semesters.

Although numbers are not final, for the Fall 2020 Semester the University met gross tuition and fee

revenue. This has not necessarily been the case in previous years and is due to the discipline of

adjusting the budget for the last few years and living within that budget.

➢ Challenges this year included scholarships over budget – which is positive. Tuition estimates for

June 30, 2021, include revenues not meeting budget by approximately $1 million due in large part to

scholarships being over estimated budget. Scholarship dollars always represent an estimate because

the type of students the University attracts and the scholarships they accept is unknown when they are

budgeted. The estimate being provided is conservative but there are a lot of unknowns remaining in

the current budget year. The $2 million budget contingency remains in place and will help offset

budget shortfalls.

➢ The impact of COVID-19 has been substantial on the University’s financial position. Costs have

been managed well and the Governor’s Office made $800,000 available to the University – with two-

thirds having been received to date. It is hoped an additional $1 million will be forthcoming to help

cover costs associated with the pandemic. It is important to note that a portion of these additional

federal funds can be utilized to cover some of the expenditures incurred for COVID-19 in the last

fiscal year (March 1 – December 31, 2020). Expenditures must be tracked and appropriate

documentation maintained because these expenditures will be included in the University’s federal

audit for the current year.

➢ Appropriate adjustments to pension numbers have been made to reflect estimates for the current year.

Nothing out of the ordinary with regard to pensions is included in the reports presented.

➢ Revenue in the amount of $830,000 has been generated from the Asset Preservation Fee. These funds

will not be spent until January revenues are known. All are cognizant of cash flow this year and must

ensure it is managed. By the time revenues are collected and posted for the Spring 2021 Semester, it

is expected the University will meet its $1.4 million budget for Asset Preservation Fee revenues. The

Board has already approved preservation projects for which those funds will be utilized and further

discussion will occur later in this regard.

➢ The Education and General Fund represents the University’s operating dollars. For this quarter, there

was an increase in net position by $21.3 million. It is not out of the ordinary in the first quarter of any

year for the increase to be this significant. The University is on target and has generated 35 percent

of revenues and spent 21 percent. The difference is due to receiving revenue in August and living on

that amount until the University begins receiving tuition revenue again in January. Revenues at this

time of year will always trend up compared to expenditures and is $2.5 million over last year. This

does not represent a significant change because last September $2 million was transferred to

undertake the Biology Building repairs. If that one-time transfer had not been made, the University

would be parallel to the September 2019 financial statements. The University is basically at the same

point as it was this time last year.

➢ Auxiliaries experienced a $385,000 change in net position for this quarter which is down by slightly

over $1 million from last September. This is due to a timing difference in receiving revenue from

Sodexo due to COVID-19. It does not represent a risk factor.

➢ As the University moves forward through the remainder of this year, housing occupancy is down

approximately 5 percent which will present some challenges. For the Fall 2020 Semester, this

amounts to about $500,000. Through September this has been managed by cutting costs, deferring

projects and not filling positions, not through a decrease in net assets.

➢ Overall through the first quarter the University is in a stable position but is also in unchartered waters

with a long way to go this fiscal year.

Regent Owens commended Vice President Dudley and her team for their work, especially

considering the uncertainty associated with COVID-19 and appropriations from the General

Assembly and federal government. There will be upcoming challenges but the University has a

good foundation on which to be able to mitigate those circumstances.

Mr. Owens moved that the Board of Regents, upon the recommendation of the President of the

University, accept the quarterly unaudited Financial and Investment Reports for the period of

July 1, 2020, through September 30, 2020, as presented. Mrs. Gray seconded and the motion

carried unanimously.

(See Attachment #4)

Board of Regents Self-Evaluation Results Presentation, received

Dr. Pervine reported that in December 2017, Murray State University’s accreditor – the Southern

Association of Colleges and Schools Commission on Colleges (SACSCOC) – approved

revisions to its Principles of Accreditation. Among the revisions was the following new

standard:

4.2 (g): The governing board defines and regularly evaluates its responsibilities

and expectations.

SACSCOC provides the following rationale in its Resource Manual:

As the body that holds in trust the fundamental autonomy and ultimate well-being

of the institution, the governing board of the institution is a critical element in the

success of the institution. Good institutional governance requires that the board

systematically asks itself, “How are we doing? What are we doing? Are we as

effective as a board as we can be?” The process of institutional improvement

underlies the Principles of Accreditation. While the means by which a governing

board participates in that process may be different in scope, tone and detail than

that of the rest of the institution, it is still a necessary element in institutional

leadership… What is expected of this standard is something more substantive

than a statement that “the Board conducted a self-evaluation.”

At the March 1, 2019, Quarterly Board of Regents Meeting, the annual Board self-evaluation

process was approved. For the most recent Board self-evaluation, Dr. Pervine reported the

survey did not produce any results that would be of concern to SACSCOC. Collectively and

individually, Board members support the Mission Statement and Strategic Plan for the

University. The Board also has a general understanding of the finances of the University and

seemed to be satisfied that it holds the primary decision-making authority for the institution. The

racial and gender diversity of the Board was also highlighted by members as a strength.

Individually, members seem to be exhibiting a high level of involvement in Board activities and

appear to be satisfied with the meeting format in general. Overall, several positive comments

were offered with regard to how meetings are conducted.

Board members expressed some concern relative to timeliness of information and receiving too

much information. There also appeared to be a theme among Board members regarding asking

for more context and focus with regard to information provided. There was an expression of

frustration with COVID-19 and the fact that Board members could not visit campus.

Dr. Pervine reminded the Board of the Open Meetings Law and the importance of ensuring no

Board business is conducted outside of a called meeting. He also confirmed it is an expectation

of SACSCOC that the Board regularly evaluate itself because it is mission critical for Murray

State to be nationally accredited.

This report was provided for informational purposes only and required no Board action.

Revised University Mission Statement, approved

Dr. Todd reported that the revised University Mission Statement has been vetted through

President’s Executive Council, the Dean’s and Chair’s council, Faculty Senate, Staff Congress

and the Student Government Association.

Dr. Pervine reported that the SACSCOC Core Requirement 2.4 requires the institution to have

a clearly-defined, comprehensive and published Mission Statement that is specific to the

institution and appropriate for higher education. Since a revision to the Mission Statement will

not represent a fundamental change in scope, SACSCOC denoted that no prior approval or

notification is required if it becomes necessary to change the University’s Mission Statement.

The Mission Statement represents the template for the University to create alignment with

curriculum, scholarship, community outreach and service. SACSCOC requires documentation

that the University follows a viable policy with a designated process to create a solid product.

The Mission Statement is the hallmark document that guides each area within the University.

The Mission Statement review policy and procedures are provided to the Board in the Board of

Regents Policy Manual, Section 2.0 – Murray State University Mission Statement.

The Southern Association of Colleges and Schools Commission on Colleges requires universities

to have and follow a documented procedure for a systematic review of the University Mission

Statement. Specifically, SACSCOC standards pertinent to this process are as follows:

1. SACSCOC Core Requirement Standard 2.5: The institution engages in ongoing, integrated

and institution-wide research-based planning and evaluation processes that (1) incorporate a

systematic review of institutional mission, goals and outcomes; (2) result in continuing

improvement in institutional quality and (3) demonstrate the institution is effectively

accomplishing its mission.

2. SACSCOC Comprehensive Standard 3.1.1: The Mission Statement is current and

comprehensive, accurately guides the institution’s operations, is periodically reviewed and

updated, is approved by the governing board and is communicated to the institution’s

constituencies.

Dr. Shemberger moved that the Board of Regents, upon the recommendation of the President of

the University, approve the following new Murray State University Mission Statement:

Murray State University places our highest priority on student learning

and excellent teaching, blending the range of educational opportunities

often found at research institutions with the nurturing student-teacher

interactions usually found at smaller universities.

Mr. Owens seconded and the motion carried unanimously.

2020-25 Strategic Plan, approved

Dr. Todd reported that the current Murray State University Strategic Plan – Advancing the

Tradition of Excellence: Achievement, Endeavor and Hope was approved by the Board of

Regents on June 8, 2018. During the 2019-20 academic year and the Fall 2020 Semester, this

Plan was updated and refreshed. The revised Strategic Plan is now titled: Murray State

University, The Finest Place We Know, 2020-2025.

Updates encompass adding strategic imperatives and linkages with performance funding metrics,

enrollment and retention goals, etc. In early Spring 2020, plans were made to hold shared

governance meetings with the Student Government Association, Faculty Senate, Staff Congress

and the Dean’s and Chair’s councils. Amongst the restrictions of the COVID-19 pandemic,

these meetings were scheduled and have occurred virtually during the Fall 2020 Semester. The

revised Strategic Plan has been well received and approved by all constituency bodies.

Appreciation was expressed to Dr. Fister for her work with regard to producing the Scorecard

which accompanies the Strategic Plan. This tool will enable the administration to annually

present to the Board the status of the Strategic Plan initiatives. Appreciation was also expressed

to Shawn Touney and his staff for their excellent publication work. Dr. Jackson added that the

Scorecard contains the 11 CPE performance funding metrics so the University can monitor,

focus and enhance parameters of the Performance Funding Model. This is a key component of

the Strategic Plan because these metrics correlate to the University being able to secure new

monies from the state based on performance. The Scorecard provides a color-coded status

update on how the University is performing with regard to the metrics. Chair Rhoads asked all

Board members to keep the Strategic Plan and Scorecard handy for frequent reference.

Dr. Shemberger moved that the Board of Regents, upon the recommendation of the President of

the University, approve the updated Murray State University Strategic Plan: Murray State

University, The Finest Place We Know, 2020-2025. Mr. Schooley seconded and the motion

carried unanimously.

(See Attachment #5)

Committee Reports/Recommendations

Academic Excellence and Scholarly Activities Committee

Melony Shemberger – Chair

Virginia Gray

Warren Norman

Leon Owens

Dr. Shemberger called the Academic Excellence and Scholarly Activities Committee to order at

9:45 a.m. and reported all other members were present.

Southern Association of Colleges and Schools Commission on Colleges Reaffirmation of

Institutional Accreditation – 5

Year Interim Report, received

Dr. Pervine reported that SACSCOC requires every school it accredits to be on a ten-year

reaffirmation cycle with an interim report due mid-cycle. Murray State has been continuously

accredited since 1928 because institutional accreditation is essential to ensure the success of any

university and its students. In addition, the United States Department of Education requires

institutions that receive Title IV funds to be accredited.

Murray State University’s 5

Year Interim Report was submitted to SACSCOC in March 2020

and examined by an off-site review committee. Results of the review were returned to the

University in September 2020 and were largely positive in nature. The off-site committee

requested clarification on which indicator is utilized when reporting graduation rates and for

details regarding the University’s student complaint process. The University must also clarify

that it utilizes IPEDS data for graduation rates and provide more detailed information relative to

the student complaint process. The referral report is due by April 1, 2021, and there are no

foreseen issues in meeting this deadline.

This report was presented for informational purposes only and required no Board action.

Dr. Shemberger expressed appreciation to Dr. Pervine for providing leadership with regard to

institutional and program accreditations due to their importance to the University. Appreciation

was also expressed to the administration – President Jackson, Provost Todd and Vice Presidents

Dudley and Robertson – for all they do. This past year in particular has not been an easy one.

Appreciation was expressed to staff who provided valuable assistance to faculty. Students were

thanked for showing up for class, completing assignments and working with faculty to make sure

their academic needs were met. Appreciation was expressed to all faculty and staff who have

teaching duties for being in the trenches with students. Murray State has top-of-the-line faculty.

Dr. Shemberger also reported that Blitz Week will be held January 11-14, 2021, and Board

members were invited to attend sessions with faculty in order to fully understand the class-

preparation process.

Chair Rhoads expressed appreciation to Regent Shemberger for sending detailed monthly emails

to the Board to keep all apprised of the outstanding accomplishments and achievements of

faculty.

Adjournment

The Academic Excellence and Scholarly Activities Committee adjourned at 9:50 a.m.

Athletics Committee

Eric Crigler – Chair

Jerry Rhoads

Lisa Rudolph

Phil Schooley

Don Tharpe

Mr. Crigler called the Athletics committee to order at 9:50 a.m. and reported all other members

were present. Appreciation was expressed to the Athletics Department – administration, coaches

and support staff – who have experienced unique challenges relative to supporting student-

athletes within the environment over the past year.

Personnel Changes – Contracts of Employment – Assistant Coaches Update, received

Mr. Crigler reported that employment agreements with the Coaches listed below expire on

December 31, 2020. The University desires to continue to employ these Coaches for the period

of January 1, 2021, to December 31, 2021. Salaries remain unchanged from the prior year.

Football

Yon Boone $60,000

Chris Cunningham $55,000

Darius Hart $60,000

Michael Hodges $70,000

Evan McKissack $40,000

Jerome Richardson $60,000

Dillon Sanders $70,000

Fred Walker $45,000

Strength and Conditioning

John Clay $50,000

Volleyball

Allison Hrusovsky $36,000

This report was presented for informational purposes only and required no Board action.

Chair Rhoads indicated that every effort has been made for the University to make prudent

decisions relative to athletic competitions given the current environment.

Adjournment

The Athletics Committee adjourned at 9:52 a.m.

Audit and Compliance Committee

Don Tharpe – Chair

Eric Crigler

Jerry Rhoads

Lisa Rudolph

Dr. Tharpe called the Audit and Compliance Committee to order at 9:52 a.m. and reported all

other members were present.

Ms. Dudley reported that the Audited Financial Statements have been prepared by an

independent external auditing firm – Dean Dorton Allen Ford, PLLC (Dean Dorton) – and

address state and federal requirements. Appreciation was expressed to Ellen Dale, Director of

Accounting and Financial Services, and her staff for their assistance completing the audits.

The General Financial Statements and the Independence Letter are distributed as required to the

State Auditor of Public Accounts and the Finance and Administration Cabinet. The House Bill

622 Compliance Report is submitted to the State Auditor of Public Accounts and the Kentucky

Lease Law Compliance Report is submitted to the Council on Postsecondary Education.

Contained within the Presentation of the Results of the Annual Audit Report, the Management

Letter complies with the SAS 112 auditing standard which requires written communication

regarding control deficiencies found during the audit. The Representation Letter, also

incorporated in the report, provides confirmation by management regarding the fairness of

various financial statement elements and acknowledging that the accuracy of the statements is

the primary responsibility of management. The Single Audit Report (Federal Funds) will not be

available for this meeting as the U.S. Office of Management and Budget (OMB) Compliance

Supplement providing reporting guidelines for the Coronavirus Aid, Relief and Economic

Security (CARES) funding has not been released.

Dean Dorton Director Lance Mann and Manager Megan Crane joined the Board via ZOOM.

Mr. Mann reported that due to the pandemic 100 percent of the audit was conducted remotely.

The following highlights from the Report to Governance on Results of Annual Independent

Audit were presented:

➢ An unqualified opinion had been issued and auditors met the deadline established by the

Commonwealth of Kentucky. The audit was performed in accordance with auditing standards

generally accepted in the United States. This included a review of internal controls and processes at

the organization. This year, auditors were required to review how Murray State’s controls may have

changed due to the pandemic and employees working remotely.

➢ An unmodified opinion was issued on the University’s financial statements for the year ended

June 30, 2020. A report on compliance and internal control over financial reporting was issued based

on the audit of the University’s financial statements in accordance with Government Auditing

Standards. A separate audit of the MSU Foundation was undertaken and that entity also received an

unmodified opinion relative to its financial statements. The financial statements for the Foundation

are included within Murray State’s consolidated financial statements so the auditors must review

those submissions.

➢ An unmodified opinion, along with an examination report on compliance with Corporation for Public

Broadcasting guidelines, were issued for the University’s radio station – WKMS-FM.

➢ The National Collegiate Athletics Association Agreed-Upon Procedures report was also prepared to

ensure Murray State is following all rules relative to athletics. No issues were noted in this regard.

➢ The auditors issued the Kentucky House Bill 622 report which primarily ensures the University is

following state purchasing requirements and has appropriate cash management tools in place to

adhere to Kentucky Lease Law statutes for state institutions. There were no findings in this regard.

➢ The auditors are also required to provide communication to the Auditor of Public Accounts stating

their independence from the University. The Single Audit is currently in progress but issues beyond

the University’s control are impeding its completion. The auditors are also required to issue a

subsequent event report to the Auditor of Public Accounts if any exist. No such events have been

discovered at Murray State.

➢ In regard to required communications to the Board of Regents and the Audit and Compliance

Committee, the 2020 audited financial statements of the University will be included in the financial

statements of the Commonwealth of Kentucky. The auditors are not aware of the University’s

financial statements being included in any documents other than the financial statements for

Kentucky. The University is allowed to include its financial statements in bond documents but that

requires prior approval from the auditors.

➢ Early in the audit process certain matters were communicated to both management and Dr. Tharpe

regarding Dean Dorton’s audit responsibilities. Discussions also occurred relative to requests from

the Audit and Compliance Committee Chair relative to specific areas to be reviewed.

➢ Significant accounting policies are described in Note 1 to the financial statements. The auditors noted

no transactions entered into during the year for which there was a lack of authoritative guidance or

consensus. No new accounting policies were adopted and the application of existing policies was not

changed. No significant transactions were recognized in a different period than when the transactions

occurred. Preparation of the financial statements requires the use of accounting estimates and the

most significant ones for Murray State were included in the report provided. The most notable

estimates include depreciation and useful life of capital assets, pension and other post-employment

benefit liabilities, allowance for uncollectible loans and student accounting receivable, fair value of

investments and self-insurance reserves. The auditors evaluated the key factors and assumptions used

to develop these estimates and determined they were reasonable in relation to the financial statements

as a whole. The disclosures were neutral, consistent and clear. Certain disclosures are particularly

sensitive due to their significance to the financial statement users. New items this year were included

in Note 10 and relate to the Coronavirus Aid, Relief and Economic Security (CARES) Act funding

the University received and custodial/grounds services.

➢ There were no difficulties encountered in dealing with management related to the performance of the

audit. There were no audit adjustments noted during the year and there were no material uncorrected

misstatements in the financial statements. There were no disagreements with management which

provided the Representation Letter indicating to the auditors that the University had shared everything

they needed to know to perform the audit well. Dean Dorton is unaware of any occasion where the

University has consulted with other auditors.

➢ Significant issues discussed with management include the higher education relief fund monies

received as part of the CARES Act relative to how the money should be disbursed and the associated

reporting requirements to ensure the University followed all rules and regulations.

➢ The Single Audit represents the University’s grant audit primarily related to the student financial aid

cluster because this represents the largest percentage of federal monies received by Murray State.

Also reviewed was the Training Resource Center Independent Living Grant the University received.

How those funds were expended was audited to ensure accordance with the grant fund guidelines.

CARES Act higher education relief funding was also audited. An unmodified opinion is expected to

be issued on the uniform guidance single audit. The auditors expect to issue a modified opinion but

testing is not complete due to the Compliance Supplement from the federal government being

delayed. It is projected the information needed will be released by Christmas. At this time, no

findings required to be communicated within the Single Audit report have been identified.

➢ Three prior-year findings have been or will be resolved in the current year. The largest related to

TRIO Talent Search and numbers increased in the current year which resolved the prior finding.

Dr. Tharpe expressed appreciation to Mr. Mann and Dean Dorton and indicated he believes the

auditors and the Board are asking the right questions relative to the financial statements for the

University.

Audited Financial Statement – General, accepted

On behalf of the Audit and Compliance Committee, Mrs. Rudolph moved that the Board of

Regents, upon the recommendation of the President of the University, accept the following audit

reports for 2019-20:

a. Report to Governance on the Results of Annual Independent Audit

b. Required Auditor Communications (includes Representation Letter)

c. Independence/Peer Review Letter

d. House Bill 622 Compliance Report for the Year Ended June 30, 2020

e. Kentucky Lease Law Compliance Report for the Year Ended June 30, 2020

f. General Financial Statements for the Year Ended June 30, 2020

Mr. Rhoads seconded and the motion carried.

Full Board Action – Audited Financial Statement – General, accepted

On behalf of the Audit and Compliance Committee, Dr. Tharpe moved that the Board of

Regents, upon the recommendation of the President of the University, accept the following audit

reports for 2019-20:

a. Report to Governance on the Results of Annual Independent Audit

b. Required Auditor Communications (includes Representation Letter)

c. Independence/Peer Review Letter

d. House Bill 622 Compliance Report for the Year Ended June 30, 2020

e. Kentucky Lease Law Compliance Report for the Year Ended June 30, 2020

f. General Financial Statements for the Year Ended June 30, 2020

Mr. Owens seconded and the motion carried unanimously.

(See Attachments #6 – #11)

Annual Audit Report – Athletics, accepted

Ms. Dudley indicated the report being presented has been prepared by the independent external

auditing firm of Dean Dorton. The NCAA Agreed-Upon Procedures report fulfills compliance

with NCAA Bylaws 3.2.4.15 which states:

“Operating and Capital Financial Data Report. An institution shall submit financial

data detailing operating revenues, expenses and capital related to its intercollegiate

athletics program to the NCAA on an annual basis in accordance with the financial

reporting policies and procedures. The required data shall include, but is not limited

to, the following: (Adopted: 1/17/09 effective 8/1/09) (a) All expenses and revenues

for or on behalf of an institution’s intercollegiate athletics program, including those

by any affiliated or outside organization, agency or group of individuals; (b) Salary

and benefits data for all athletics positions. The data shall include base salary,

bonuses, endorsements, media fees, camp or clinic income, deferred income and

other income contractually guaranteed by the institution; (c) Capital expenditures

(to be reported in aggregate for athletics facilities), including capitalized additions

and deletions to facilities during the reporting period, total estimated book value of

athletically related plant and equipment net of depreciation, total annual debt

service on athletics and university facilities and total debt outstanding on athletics

and university facilities; (d) Value of endowments at fiscal year-end that are

dedicated to the sole support of athletics; (e) Value of all pledges at fiscal year-end

that support athletics; and (f) The athletics department fiscal year-end fund balance.

Verification and Certification. The report shall be subject to annual agreed-on

verification procedures approved by the membership (in addition to any regular

financial reporting policies and procedures of the institution) and conducted by a

qualified independent accountant who is not a staff member of the institution and

who is selected by the institution’s chancellor or president or by an institutional

administrator from outside the athletics department designated by the chancellor or

president. The independent accountant shall verify the accuracy and completeness

of the data prior to submission to the institution’s chancellor or president and the

NCAA. The institution’s chancellor or president shall certify the financial report

prior to submission to the NCAA. (Adopted: 1/17/09 effective 8/1/09)”

The auditors made no comments relative to any pending items related to the Athletics audit.

On behalf of the Audit and Compliance Committee, Mr. Crigler moved that the Board of

Regents, upon the recommendation of the President of the University, accept the following

report for 2019-20:

a. National Collegiate Athletic Association Independent Accountant’s Report on

Application of Agreed-Upon Procedures for Intercollegiate Athletics for the Year Ended

June 30, 2020

Mrs. Rudolph seconded and the motion carried.

Full Board Action – Audit Report – Athletics, accepted

On behalf of the Audit and Compliance Committee, Dr. Tharpe moved that the Board of

Regents, upon the recommendation of the President of the University, accept the following

report for 2019-20:

a. National Collegiate Athletic Association Independent Accountant’s Report on

Application of Agreed-Upon Procedures for Intercollegiate Athletics for the Year Ended

June 30, 2020

Mr. Crigler seconded and the motion carried unanimously.

(See Attachment #12)

Annual Audit Report – WKMS-FM, accepted

Ms. Dudley reported that the documents included in the eBoard book have been prepared by

Dean Dorton and address state and federal requirements. The WKMS-FM audited financial

statement is provided to the Corporation for Public Broadcasting and is required by that entity

for any funding provided to WKMS-FM. This represents a clean audit.

On behalf of the Audit and Compliance Committee, Mrs. Rudolph moved that the Board of

Regents, upon the recommendation of the President of the University, accept the following report

for 2019-20:

1. Required Auditor Communications

2. Audited Financial Statements for the Year Ended June 30, 2020

Mr. Crigler seconded and the motion carried.

Full Board Action – Annual Audit Report – WKMS-FM, accepted

On behalf of the Audit and Compliance Committee, Dr. Tharpe moved that the Board of Regents,

upon the recommendation of the President of the University, accept the following report for 2019-

20:

1. Required Auditor Communications

2. Audited Financial Statements for the Year Ended June 30, 2020

Mr. Owens seconded and the motion carried unanimously.

(See Attachments #13 and #14)

Annual Audit Contract Renewal, authorized

Ms. Dudley reported that under provisions of Kentucky Revised Statutes, Chapter 164A.570, the

University is required to engage a qualified firm to conduct an annual audit of its financial

statements. Other governing or sanctioning bodies (e.g., the U.S. Office of Management and

Budget for federal grants and contracts and the National Collegiate Athletic Association) require

annual financial or compliance audits. As a result of the Request for Proposals for audit services

dated December 12, 2016 (RFP-236J-17), Dean Dorton Allen Ford, PLLC was the successful

firm selected to audit the University’s financial statements for Fiscal Year 2021.

At its February 24, 2017, meeting, the Board of Regents approved the issuance of a contract to

Dean Dorton for the performance of the University’s financial and compliance audits for the

fiscal year ending June 30, 2017, and further authorized the University to enter into six

subsequent contract renewals based upon mutual consent. The cost for the current-year contract

is $126,325, including the financial, compliance and up to four single audit programs.

On behalf of the Audit and Compliance Committee, Mr. Rhoads moved that the Board of

Regents, upon the recommendation of the President of the University, authorize the University to

extend the contract with Dean Dorton for the performance of the University’s financial and

compliance audits for the fiscal year ending June 30, 2021, at a cost of $129,000. Mrs. Rudolph

seconded and the motion carried.

Full Board Action – Audit Contract Renewal, authorized

On behalf of the Audit and Compliance Committee, Dr. Tharpe moved that the Board of

Regents, upon the recommendation of the President of the University, authorize the University to

extend the contract with Dean Dorton for the performance of the University’s financial and

compliance audits for the fiscal year ending June 30, 2021, at a cost of $129,000. Mrs. Rudolph

seconded and the roll was called with the following voting: Mr. Crigler, yes; Mrs. Gray, yes;

Ms. Green, yes; Mr. Norman, yes; Mr. Owens, yes; Mrs. Rudolph, yes; Mr. Schooley, yes; Dr.

Shemberger, yes; Dr. Tharpe, yes and Mr. Rhoads, yes. The motion carried unanimously.

President Jackson expressed appreciation to Dean Dorton for the excellent work the firm

performs for the University and for ensuring all rules and processes are being followed

appropriately. Dean Dorton also provides internship opportunities for a number of Murray State

students and, in some cases, hires those individuals. Dean Dorton is the largest auditing firm in

the Commonwealth and their support of Murray State University is appreciated.

Adjournment

The Audit and Compliance Committee adjourned at 10:20 a.m.

The Board adjourned for a break beginning at 10:20 a.m.

Reconvene

Chair Rhoads reconvened the Quarterly Meeting of the Board of Regents and Committee

meetings at 10:30 a.m. and reported all members were present.

Buildings and Grounds Committee

Phil Schooley – Chair

Warren Norman

Leon Owens

Don Tharpe

Mr. Schooley called the Buildings and Grounds Committee to order at 10:30 a.m. and reported

all other members were present.

Sewer Easement – Paducah Regional Campus, approved

Jason Youngblood, Director of Facilities Management, reported that the Paducah Regional

Campus property houses the Crisp Center which was completed in 2012. The property to the

North is being planned for development and will require connection to the sanitary sewer main

on Murray State University property. The Paducah-McCracken County Joint Sewer Agency will

take over ownership of this utility and its maintenance. A copy of the 2012 preliminary

subdivision plat of the property being developed was provided to the Board for reference. A

copy of the MSU property plat showing the previously-approved sewer easement and the

proposed easement area was also provided to the Board. This sewer easement is over and across

University-owned property and is intended for the installation and maintenance of a sanitary

sewer line. This easement contains 1,622 square feet and consideration for said easement shall

be $1.00.

On behalf of the Buildings and Grounds Committee, Dr. Tharpe moved that the Board of

Regents, upon the recommendation of the President of the University, enter its Order approving

the granting of a permanent easement for the consideration as indicated above. Such approval

shall be conditioned upon and full review by University Legal Counsel and the University

receiving approval, if required, from the Kentucky Secretary of the Finance and Administration

Cabinet or his/her designee. Mr. Owens seconded and the motion carried.

Full Board Action – Sewer Easement – Paducah Regional Campus, approved

On behalf of the Buildings and Grounds Committee, Mr. Schooley moved that the Board of

Regents, upon the recommendation of the President of the University, enter its Order approving

the granting of a permanent easement for the consideration of $1.00. Such approval shall be

conditioned upon and full review by University Legal Counsel and the University receiving

approval, if required, from the Kentucky Secretary of the Finance and Administration Cabinet or

his/her designee. Mrs. Gray seconded and the motion carried unanimously.

Lovett Auditorium HVAC and Electrical Systems Renovations Program Statement,

approved

Per the Delegation of Authority Item #13, the Board must approve any “Program Statement” that

may be prepared for a capital construction project requiring approval by the Kentucky General

Assembly prior to implementation of the Program Statement. Mr. Youngblood reported that the

project identified as “Capital Renewal and Building Modernization” was initially included in the

University’s 2020-26 Six-Year Capital Plan as described below:

Brief Description/Justification:

Project includes asset preservation renovations and building system upgrades to

education and general buildings. This is for a pool of deferred maintenance

projects.

As part of the Capital Plan initiative, Murray State University partnered with RossTarrant

Architects and Marcum Engineering to scope the planned work on Lovett Auditorium. During

this process, HVAC and electrical system modifications were identified as immediate needs.

During the summer, failing duct work insulation created a need to expand this project and

elevating it to an immediate need. As per the Program Statement, items to be addressed will be

moisture remediation, attic duct cleaning and sealing to prevent further damage to the plaster

ceiling, plaster repair, new hot water boilers, new air handlers to be installed in the basement,

crawl space ductwork for supply air, BAS controls, new electrical transformer, switch gear and

electrical distribution panels and natural gas supply system for the boilers. This work will result

in the removal of Lovett Auditorium from the central steam system and its retention on the

central chilled water system. The estimated cost for phase one of the project is $2 million. A

funding request will be made to the Finance Committee later today in this regard.

Pending Board of Regents approval, the University will seek any necessary approvals from

the Council on Postsecondary Education and the Capital Projects and Bond Oversight

Committee for the project. In terms of timeline, the project is currently out for bid. All bids

are due by December 14 and should represent a two-phased approach. Currently, only two

general contractors are interested in the project but most of the work is mechanical in nature

and qualified contractors in this regard are also interested. The contract is anticipated to be

awarded as soon as possible with physical work beginning after the first of January. The

schedule for Phase I work to be completed is 180 days and work will conclude during the

summer in order to have the building ready for occupancy in the Fall 2021 Semester. If

additional funding is received from the state, the decision will be made to keep the facility

offline in order to complete Phase II work. Ms. Dudley clarified that although bids are out,

the University must receive CPE and Capital Projects and Bond Oversight Committee

approval before moving forward with repairs. These approvals are expected on December 14

and 16, respectively.

On behalf of the Buildings and Grounds Committee, Mr. Owens moved that the Board of

Regents, upon the recommendation of the President of the University, approve the Program

Statement for the Lovett Auditorium HVAC and Electrical Systems Renovations Project as

presented. Dr. Tharpe seconded and the motion carried.

Full Board Action – Lovett Auditorium HVAC and Electrical Systems Renovations

Program Statement, approved

On behalf of the Buildings and Grounds Committee, Mr. Schooley moved that the Board of

Regents, upon the recommendation of the President of the University, approve the attached

Program Statement for the Lovett Auditorium HVAC and Electrical Systems Renovations

Project. Mrs. Gray seconded and the motion carried unanimously.

(See Attachment #15)

Disposition of Structure – Special Education Storage Building (#0118), approved

Ms. Dudley reported that the Special Education Storage Building (Building #0118) was acquired

in 1985 at a cost of $2,537. The structure contains approximately 114 square feet and has been

used by the Murray Independent School District’s Head Start Program with offices in Alexander

Hall. The building no longer provides any functionality for the University and it is

recommended that the structure be razed. The Murray Independent School District would like to

purchase a new building which includes playground upgrades. The cost of disposal, replacement

of a new storage building and playground upgrades will be funded by the Murray Independent

School District.

On behalf of the Buildings and Grounds Committee, Dr. Tharpe moved that the Board of

Regents, upon the recommendation of the President of the University, approve the Resolution

authorizing the disposition of the structure known as Special Education Storage Building

(Building #0118) as presented. Mr. Norman seconded and the motion carried.

Full Board Action – Disposition of Structure – Special Education Storage Building (#0118),

approved

On behalf of the Buildings and Grounds Committee, Mr. Schooley moved that the Board of

Regents, upon the recommendation of the President of the University, approve the attached

Resolution authorizing the disposition of the structure known as Special Education Storage

Building (Building #0118). Mrs. Rudolph seconded and the motion carried unanimously.

(See Attachment #16)

Major Projects Update, received

Mr. Youngblood reported the following:

➢ The Biology Building project is nearing completion. Undertaking tests and balances and receiving

commissioning must be completed before the project is finished – which is expected to occur during

the first week in January. Although there were some COVID-related delays on the project,

contractors were able to keep fairly close to schedule. Ductwork is currently being completed and all

of the classroom space has been returned to use and will be ready for the Spring 2021 Semester, as

will the laboratory spaces. Most of the work undertaken was related to HVAC and automated

building systems.

➢ The Blackburn project is now underway. Clark Construction is on site and work within the facility

will continue throughout the holiday break. Substantial completion of this project is expected in

April 2021. Work is being undertaken on a floor-by-floor basis with a focus on returning displaced

workers to the facility. Full HVAC replacement is not being done but work that is occurring will

allow for additional updates to be completed in the future. The building will also house the first

dedicated lactation room which was included as part of the design during the renovation process,

along with ADA restroom upgrades.

➢ Lovett Auditorium was earlier discussed in detail but photos of the facility were provided focusing on

the air handlers that are currently on the stage. These units must be shut off during events because

they are extremely loud. A new air handler will be installed in the basement to eliminate this issue.

Appreciation was expressed to the academic groups and programs that were displaced due to the need

to make these necessary repairs. The project is anticipated to take six months to complete Phase I

renovations and is currently out for bid.

➢ The Curris Center boiler replacement project is underway with completion expected during the Spring

2021 Semester. This will remove the facility from the University’s central steam system and requires

coordination with Sodexo to ensure current dining services equipment can also be converted to the

new system without impacting operations. Interior renovations have also been proposed for the

Curris Center and concept photos were presented to the Board. The University is working with

Sherman Carter Barnhart from Lexington, Kentucky, as architectural consultants for this project.

Several ZOOM meetings have occurred over the past few weeks between the consultants and

students, staff and faculty stakeholders to provide these groups with an opportunity to convey ideas

relative to what should be included in the Curris Center. These ideas were used to develop a Master

Plan which was shared with the stakeholder groups prior to Thanksgiving. Consultants are revising

the Master Plan to reflect comments received during those sessions and the results are expected to be

presented on December 14. At this point there is no anticipated timeline for the project. Although

the project is included in the Capital Plan, the University did not receive the funding it anticipated and

will instead need to determine whether funding for this purpose can be designated internally utilizing

a phased approach. If this avenue is pursued, efforts will be made to keep each phase under $1

million so additional approvals are not required. It is expected that the Curris Center will continue to

be included in the Capital Plan as a priority moving forward in the hopes that funding or bonding

authority will materialize in the future. Updated photos of the Thoroughbred Room following

renovation were also provided. Work was completed in the space in time for it to be open for the Fall

2020 Semester.

➢ The Hart Hall boiler failed upon startup this season and there currently is no heat in the facility. A

rental boiler is on site but is still being connected. The rental boiler will remain in place throughout

the heating season to allow additional time for the University to determine whether it needs to replace

the boiler or consider alternatives that should be pursued relative to the HVAC system.

➢ Projects associated with the exterior lighting first-year plan have started and it is hoped work can

conclude by June 2021. The goal is to begin the second phase of this work in July 2021.

➢ The Price Doyle Fine Arts Building cleaning and painting projects have been completed. Safety and

security initiatives have also been completed in that facility, including securing the stairwells from the

exterior.

➢ A preservation project has been completed at Oakhurst relative to painting and window

improvements.

➢ Work to install the Racer One statue outside the Curris Center was completed in the Fall 2020

Semester and a Dedication Ceremony was held during Homecoming Weekend. The John W. Carr

sculpture and plaza area outside John W. Carr Hall was also completed in time for the Dedication

Ceremony to be held the same weekend.

➢ The Maker Space area in Waterfield Library is nearing completion for potential use in the Spring

2021 Semester.

➢ Several additional projects are scheduled during the winter break, including replacement of carpeting

and the potable water system, as well as painting, at the Hancock Biological Station.

Dr. Tharpe expressed appreciation to President Jackson and University staff for addressing

needed buildings and grounds projects on campus. It is up to the Board to protect legacy

buildings on campus and take care of Murray State assets. The work that has been and continues

to be undertaken is very much appreciated. Chair Rhoads echoed this sentiment and indicated it

is especially important to alumni who visit campus often that legacy buildings are being

maintained.

This report was presented for informational purposes only and required no Board action.

Adjournment

The Building and Grounds Committee adjourned at 10:56 a.m.

Enrollment Management and Student Success Committee

Lisa Rudolph and Warren Norman – Co-Chairs

Virginia Gray

Sharon Green

Melony Shemberger

Mrs. Rudolph called the Enrollment Management and Student Success Committee to order at

10:56 a.m. and reported all other members were present. Mr. Norman indicated he is very proud

of Murray State students and how they conducted themselves to ensure a successful Fall 2020

Semester. This shows how motivated students are to be at Murray State and such dedication will

continue for the Spring 2021 Semester. Efforts employed by the administration to allow students

to remain on campus and receive in-person instruction are very much appreciated.

Enrollment and Retention Update Report, received

Dr. Robertson expressed appreciation to all for their support of recruitment and retention as it

represents a total University commitment – not just the work of one office or a few individuals.

Faculty, staff and students have made a difference in this area and the support of the Board of

Regents is critical to this success. Enrollment highlights included:

➢ Final Fall 2020 Semester enrollment numbers were presented with the following highlights over the

Fall 2019 Semester:

- First-time Freshman (FTF) numbers up almost 6 percent

- First-time Transfer (FTT) numbers up 23.1 percent

- First-time Graduate (FTG) numbers up 15.6 percent

- Underrepresented Minority (URM) students up 6 percent

- International student numbers up 16.2 percent due to the University’s program in Shandong China

- Total credit hours even (total undergraduate headcount down slightly, graduate enrollment up)

➢ Fall 2020 Semester incoming student characteristics include:

- Average ACT of 24

- High school Grade Point Average (GPA) of 3.56

- Percent of Valedictorians increased to 8.84 percent

- Average number of transfer hours was 14.9 percent (dual credit courses and Advanced Placement

credit)

- First Generation FTF – 42.1 percent

- Kentucky residents – 924

➢ Fall 2020 Semester student highlights include:

- Overall, 46 percent First Generation students

- 6,253 student residents of Kentucky

- Hail from 45 countries, 48 states and 110 Kentucky counties

- Kentucky, Illinois, Tennessee, Missouri and Indiana top sending states

➢ The number of students enrolled for the 2020 Winter Term is 407 versus 344 for 2019 (over 18

percent increase and more than 1,200 credit hours). As of November 30, there are 538 students

enrolled for the Holiday Session (over 1,500 credit hours). Dr. Shemberger expressed appreciation to

all who played a role in creating the Holiday Session and asked what can be accomplished one year

from now in this regard. Dr. Todd reported that this involved a University-wide effort with the

President’s leadership. The Fall 2020 Semester was reduced by two weeks due to the pandemic and

the Holiday Session was created in an effort to address this occurrence. All are open to discussing

continuing the Holiday Session post-pandemic but this will require input from faculty teaching those

courses. Dr. Jackson added that in a normal year this might resemble an expanded Winter Term.

Students very much appreciated having this additional opportunity but input from the faculty, Deans

and faculty leadership is needed. Mr. Norman confirmed that this initiative provided a valuable

opportunity to a large number of students and was very much appreciated and needed.

➢ The first-to-second year retention rate for baccalaureate degree-seeking first-time freshmen students

is 81.1 percent, compared to 79.3 percent for Fall 2019, making Murray State among the top regional

public institutions in the state with regard to retention. Mrs. Whaley; Dr. S. G. Carthell and Melissa

Cooper, Director of Student Support Services and their staffs were commended for work in this area.

The retention rate for first-generation students is 72 percent but there are more risks associated with

this population.

➢ The Recapture Campaign which is administered by the Office of Student Engagement and Success

began in November with welfare and registration calls. The details of the Recapture Campaign, under

the direction of Mrs. Whaley, were outlined. Progress continues to decrease the number of eligible

students who have not yet registered for the Spring 2021 Semester (decreased from 3,200 to 1,200

undergraduate students and from slightly over 700 graduate students to 350 at this time).

➢ The following diversity highlights from Fall 2019 to Fall 2020 were provided:

- URM First-time Freshmen increased to 194 students (compared to 183).

- URM Undergraduate students increased to 11.45 percent (compared to 11.38 percent).

- URM Graduate students increased to 12.39 percent (compared to 8.89 percent).

- URM Retention (first-to-second year baccalaureate degree-seeking) increased to 75.33 percent

(compared to 73.8 percent).

➢ Fall 2021 Semester initial enrollment data was presented with the following highlights:

- FTF applications down slightly but FTF admitted student numbers are up.

- FTF admitted from the 18-county service region are down slightly but FTF admitted out-of-

state student numbers are up.

- FTT admitted student numbers are down due to community college enrollment also being

down.

➢ Confirmation was provided that due to the pandemic the ability to visit campus has been greatly

diminished for students. On-campus visits resumed in November and are being offered seven days a

week. This work will continue during the holiday break and participant numbers are beginning to

increase as a result of such efforts. The virtual campus tour has been upgraded and is being utilized

to supplement campus visit efforts. Admissions Counselors are playing an integral role in this

process.

➢ Recruitment strategies for building the first-time freshman and transfer student class for the Fall 2021

Semester were presented in detail by Undergraduate Admissions and Transfer Center Director Maria

Rosa, including a number of special campaigns that are underway to encourage students to apply to

Murray State as early as possible. This work also included restructuring scholarship opportunities

and providing additional resources in this regard. Dr. Robertson outlined the restructuring process

which has resulted in such a significant change in the number of available scholarships to impact

more students and significantly enhance the incoming class.

➢ The University’s Yield Marketing Campaign focused on prospective students and their families was

outlined in detail by Mr. Touney. Included in the presentation was information on admitted student

and family outreach efforts, key messaging and themes and calls to action and the means by which

these are accomplished. Innovative ways to undertake this work are consistently discussed and

encouraged as it represents a critical component of the overall Strategic Enrollment Management Plan

executed by multiple units across campus. Appreciation was expressed to the entire Branding,

Marketing and Communication team for the pride they take in their work and continued efforts to be

an effective service unit.

➢ Data analytics presented by Dr. Fister included confidence level interval estimates, score predictions

based on indicators, admit goals and comparison reports and associated process and detail.

Appreciation was expressed to the offices of Student Financial Services, Information Systems,

Student Engagement and Success, Graduate Recruitment, International Affairs, Alumni Relations,

Housing and Racer Academy for providing the information necessary to conduct this work.

Confirmation was provided that the formula utilized for predictive analysis has been augmented to

normalize the data due to this not being a typical year because of the pandemic.

A suggestion was made for the enrollment reports provided by the President to the Board to be in

chart or graph form so the information is easier to decipher. The President agreed to review the

information provided to determine what changes could be made, although some reports are

currently provided in the format requested. It was indicated that the frequency with which the

Board receives enrollment reports is appreciated. Confirmation was provided that any Regent

who wants to visit their local high schools will be welcomed to do so when schools allow in-

person visits again. Many Regents have already taken advantage of this opportunity prior to the

pandemic.

Dr. Jackson provided confirmation that any efforts undertaken will relate back to the

University’s new Strategic Plan with all offices on campus working toward the same goals in a

collaborative manner. Dr. Robertson thanked the Board for their leadership, support and

commitment to the enrollment process, especially related to new recruitment and retention

initiatives in terms of staffing, budgeting, providing additional scholarship dollars and being

active participants in the recruitment process. Mrs. Rudolph commended all for their efforts.

This report was presented for informational purposes only and required no Board action.

Adjournment

The Enrollment Management and Student Success Committee adjourned at 11:58 a.m. The

Board adjourned for lunch beginning at 12 noon.

Reconvene

Chair Rhoads reconvened the Quarterly Meeting of the Board of Regents and Committee

meetings at 12:30 p.m. and reported all members were present.

Finance Committee

Leon Owens – Chair

Eric Crigler

Jerry Rhoads

Lisa Rudolph

Phil Schooley

Mr. Owens called the Finance Committee meeting to order at 12:30 p.m. and reported all other

members were present.

Financial Update, received

Ms. Dudley provided a financial overview with the following highlights:

➢ The University must continue to monitor enrollment, net tuition and fees and housing occupancy.

➢ A reduction to the General Fund was anticipated for this year but state revenues were better than

expected and Governor Andy Beshear announced the University would not be receiving a mid-year

reduction in General Fund revenues. This will help bridge the gap relative to revenue losses the

institution will experience.

➢ An additional $1 million is expected from the Coronavirus Relief Fund to help further offset

expenditures.

➢ For Fiscal Year 2021, it remains a financial unknown whether the University will be able to offer in-

person courses for Spring 2021 but it is anticipated that the semester will closely mirror the Fall,

including students being able to move into the residential colleges.

➢ The Legislative Session in January represents a risk factor for both current and next fiscal year.

➢ The budget planning process for Fiscal Year 2022 will begin in earnest in January. Risk factors

include whether the University will be able to provide a traditional campus experience and how that is

accomplished must be monitored given the current environment. New initiatives are always part of

the budget planning process but this year consideration of the feasibility of a cost-of-living

adjustment for employees is a priority item.

➢ Pensions and performance funding remain risk factors which must be monitored closely. The

Performance Funding Work Group has done a tremendous amount of work this year and the resulting

recommendations will benefit the University if approved by the Legislature.

This report was presented for informational purposes only and required no Board action.

Kentucky Employees Retirement System (KERS) Non-Hazardous Pension System

Participation Decision, discussed

Dr. Jackson reported that pension discussions have occurred over the past many months in great

detail. Dean Dorton was retained to help the University conduct an analysis relative to the

significant decision that must be made. That analysis has shown that the risk of getting out of

KERS outweighs the uncertainty of remaining in the system and that is the recommendation

being presented to the Board. Leaving KERS would dramatically affect the institution’s balance

sheet by adding $125 million to $150 million in hard debt. The exact liability for the University

would not be known until after the decision has been made to leave the system. Such a decision

could affect the future borrowing capacity for the institution and, in essence, represents a 30-year

mortgage that could impair the University from taking on future debt to address housing needs or

being able to explore public-private partnership arrangements. Over the last two years Murray

State has reduced its exposure in KERS by over 60 percent and work will continue to

aggressively keep rates down to mitigate liability.

Ms. Dudley reported that the University has been part of statewide discussions on the increasing

liabilities relative to the Kentucky Employees Retirement System – Non-Hazardous pension plan

for many years. Per Senate Bill 249 adopted during the 2020 regular Legislative Session,

universities must notify the Kentucky Retirement System by December 31, 2020, if their Board

approves ceasing participation in the KERS Non-Hazardous pension system. Highlights relative

to this decision were presented as follows:

➢ A graph was provided to the Board depicting the KERS Non-Hazardous rates since Fiscal Year 2002

and how those have progressed over the years. For Fiscal Year 2021, the University was able to

maintain the current contribution rate of 49.47 percent, although at one point it was believed that rate

could increase to 93.01 percent. Next year an increase to the 93 to 96 percent contribution rate is

anticipated. For this reason, costing analyses at that level have been prepared. The potential also

exists for the Legislature to provide funding to help cover the gap between the current and potential

rate increases. The administration has done an extensive review of Murray State options as shown in

the information presented and engaged Dean Dorton to analyze the short- and long-term costs

associated with each option.

➢ The information being presented is only for the KERS Non-Hazardous plan and does not include

KERS-Hazardous (sworn police officers). Any action taken by the Board will affect all employees

classified in KERS Non-Hazardous plan positions. Remaining employees are either in the Teachers’

Retirement System (TRS) or in an Optional Retirement Plan (ORP). When individuals in a teachers’

retirement plan are hired they have the option to choose an ORP (tax shelter), meaning they do not

participate in the state plan. The University contributes to their plan but at a lesser amount statutory

than what is required for TRS. When KERS employees are hired they do not have this same option.

Providing the ORP option for newly-hired KERS employees could become a discussion point during

the Legislative Session. If the Board approves the recommended action for the University to remain

in KERS, if the ORP option is provided for KERS employees, costs could begin to decrease as new

employees choose this option. If such legislation is passed this could be beneficial to the University

but it will take longer for the institution to realize the benefit. This is also beneficial to KERS

employees by providing them with the same option as TRS participants.

➢ Dean Dorton cost estimates are based on information from House Bill 1 passed in 2018 and Senate

Bill 249 passed in 2020. Kentucky Retirement Systems Consultant GRS Retirement Consulting

provided estimates to Murray State on January 28, 2020, based on membership data as of June 30,

2019. GRS has been hired by Kentucky Retirement Systems to provide the actuarial analysis to each

of the state universities. The information provided as a result of the analysis conducted by GRS is

what the University must use to make its decision. The estimates prepared by Dean Dorton utilized

the current employee base – the number of KERS positions in the budget for Fiscal Year 2021. This

number is less than it would have been over the past three years. A conservative estimate is being

presented but may still be lower than actual costs associated with getting out of KERS. This is due to

the fact that relative to the legislation upon which KERS determines the University’s liability, either

the higher of a three-year average or current University payroll could be utilized. For Murray State,

the cost associated with using the three-year average would be higher than that for current payroll.

➢ A recap of the KERS tiers was provided. Tier 1 includes employees who were participants in KERS

prior to September 1, 2008. These individuals have the most seniority in the plan. Tier 2 includes

employees who were participants between September 1, 2008, through December 31, 2013. Tier 3

includes employees who joined the KERS plan on or after January 1, 2014. These are the participants

with the least seniority and number of years in the plan.

➢ KERS provides the University with two options – a hard or soft freeze. With a hard freeze the

University would cease to participate in KERS and be required to take all KERS-participating

employees out of the system. Employees will retain their prior service and contributions to the plan

and can still retire from that plan but no future contributions are made. With a soft freeze the

University would only be required to remove Tier 3 employees from the KERS plan. The soft freeze

option will always be more expensive because those employees with the most seniority remain in the

KERS plan.

➢ Basically seven options are available to the University. These include 1) remaining in KERS, 2)

making a lump sum payment next year to buy the University out of the system (hard or soft freeze

option), 3) issuing taxable bonds to finance and repay those bonds in a 20- or 30-year increment (hard

or soft freeze option) and 4) selecting an installment payment plan (hard or soft freeze option) which

is by far the most expensive option and would be financed through the Kentucky Retirement System

(steep interest rates). Confirmation was provided that legacy liabilities would continue with KERS

under both the hard and soft freeze options. The soft freeze option also includes the risk of the

retirement system changing the amount the University is required to contribute after the decision has

been made to leave the system. With the installment payment plan, rates increase 1.5 percent each

year automatically, meaning this option does not represent a fixed rate like a bond payment that is

based on a schedule.

➢ A House Bill 1 timeline was provided and discussed with the Board.

➢ Employment statistics used in Dean Dorton’s estimates were provided based on a three-year average.

The University’s pre-2019 salary base was $13.6 million (payroll) for KERS employees only. In

December, the salary base decreased to $9.2 million due to KERS employees transitioning onto

Sodexo payroll as a result of outsourcing dining services. In April 2020, the payroll base decreased

again to $7.9 million due to outsourcing to SSC for custodial and grounds services. These actions led

to a weighted average salary base of $10.4 million. In terms of the budget for Fiscal Year 2021, the

payroll base is $6.8 million. The retirement system used a combination of these payrolls over a three-

year average and the result is estimated to be an approximate $10.4 million salary base. When

compared to the current year payroll base of $6.8 million, this resulted in a GRS estimate based on an

$11.3 million salary base. Salary bases are important because the recommendation being made is

predicated on remaining in KERS with the University’s contribution being computed on a percentage

of salary or payroll. Prior to 2019 there were 589 individuals participating in the KERS Non-

Hazardous plan and for the current budget cycle that number is 232 employees (61 percent decrease

in the number of positions where the University is contributing 49.47 percent to the KERS Non-

Hazardous plan). A breakdown of employees in the various tiers was also provided and this data is

important when considering the hard or soft freeze options.

➢ A Schedule of Unknowns/Risks/Knowns was presented. Key points included that if the University

decides to remain in KERS, the employer contribution rates on payrolls may significantly increase

over the next 30 years. If the University decides to leave KERS and finance through the retirement

system, the true cost will not be known at the time the decision must be made. If the University

decides to leave KERS and finance with bonds there is also an associated risk, including whether the

market is able to provide adequate lenders for the size of the issue that would be required for this

purpose (plus interest rates at the time of the bond issuance). As of today, if the University chooses to

cease participation in KERS it does not have authority to sell bonds and would have to obtain

approval from the General Assembly. The University’s bond rating would need to be determined and

the impact of the resulting debt on the balance sheet is unknown relative to future debt decisions

(selling bonds for new housing facilities or entering into new public-private partnerships). The

University is in a good cash position but providing what is needed to make the initial payment to

cease participation in KERS would require a significant liquidation of assets that carries with it

substantial risk.

➢ Assumptions used in the cash flow analysis prepared by Dean Dorton were provided. Dean Dorton

also provided data relative to the average annual cash flow analysis for pension costs for the employer

over a 30-year period. This data included the seven options mentioned earlier, in addition to a new

option of remaining in KERS at the anticipated employer contribution rate of 93.01 percent. These

eight costing scenarios provided by Dean Dorton included an associated principal amount the

University would be required to finance dependent on the option chosen. Data was also presented on

the average annual cost for each of the available options and how that changes over 30 years (through

2051, if a financing option is chosen). The 30-year cash flow analysis provided by Dean Dorton

illustrated that to remain in KERS (at the 49.47 contribution rate) would represent a total cash outflow

of $122.5 million for the University. If the contribution rate increases to 93.01 percent as anticipated,

the associated total cash outflow would be $171 million. With either of these options where the

University chooses to remain in the system, there is no associated finance debt on the balance sheet

and the institution will continue to carry the liability the same as it does today, only not as a fixed

debt. The most expensive option would be for the University to choose to cease participation in

KERS (soft freeze) which amounts to over $336 million versus remaining in the system and the

contribution rate increasing to 93.01 percent for a total outflow of $171 million.

➢ Data analysis was also provided by Dean Dorton relative to the present value of total cash flow. If

the University remains in KERS and the rates stay at 49.47 percent, the $122.5 million was converted

to today’s dollars at different discount rates of 3, 3.5 and 4 percent. Today’s dollar at a 4 percent

discount rate would be valued at $67 million versus the value of an installment payment option (soft

freeze) of $178.8 million. This data helps illustrate the long-term impacts to the institution – all based

on a January 28 estimated number provided by KERS (which can change).

➢ The recommendation being made today is for the University to remain in the KERS Non-Hazardous

plan. Murray State will continue to work with the Kentucky Legislature and KERS Work Group on

actions that could reduce the financial burden of participation. Work will also continue to review

KERS-participating positions that currently exist.

Dr. Jackson added only one public institution in Kentucky is choosing to leave KERS – Northern

Kentucky University (NKU) – that has opted for the soft freeze option but remaining in the

system for Tier 1 and 2 employees. NKU is different because all employees participate in KERS

and no individuals are in TRS. The other state universities are choosing to remain in the system

for the same reasons outlined for Murray State.

Kentucky Employees Retirement System (KERS) Non-Hazardous Pension System

Participation Decision, approved

On behalf of the Finance Committee, Mr. Crigler moved that the Board of Regents, upon the

recommendation of the President of the University, approve the University’s continued

participation in the Kentucky Employees Retirement System (KERS) – Non-Hazardous pension

system. Mr. Schooley seconded and the motion carried.

Full Board Action – Kentucky Employees Retirement System Non-Hazardous Pension

System Participation Decision, approved

On behalf of the Finance Committee, Mr. Owens moved that the Board of Regents, upon the

recommendation of the President of the University, approve the University’s continued

participation in the Kentucky Employees Retirement System (KERS) – Non-Hazardous pension

system. Mrs. Rudolph seconded and the roll was called with the following voting: Mr. Crigler,

yes; Mrs. Gray, yes; Ms. Green, yes; Mr. Norman, yes; Mr. Owens, yes; Mrs. Rudolph, yes; Mr.

Schooley, yes; Dr. Shemberger, yes; Dr. Tharpe, yes and Mr. Rhoads, yes. The motion carried

unanimously.

Lovett Auditorium HVAC and Electrical System Renovations Project Funding, approved

Ms. Dudley reported that as part of the development of the 2020-26 Capital Plan, Murray State

identified a series of asset preservation project requests. Some of the requested asset

preservation funding was designated for historic buildings, with Lovett Auditorium as the

priority. Due to strains on the state budget and COVID-19, this project was not authorized in the

enacted 2020-21 budget (House Bill 352). However, HVAC issues in Lovett Auditorium must

be addressed now in order to preserve the building for future use.

The total scope of the Lovett Auditorium project is anticipated to be $2 million. The proposed

funding to be utilized would be $600,000 of Fiscal Year 2020-21 revenue from the Asset

Preservation Fee, with the remaining $1.4 million to be taken from emergency deferred

maintenance funding held in the Plant Fund. Once approved by the Board of Regents, the

University will seek any necessary approvals from the CPE and the Capital Projects and Bond

Oversight Committee for the $2 million necessary for the project.

On behalf of the Finance Committee, Mr. Rhoads moved that the Board of Regents, upon the

recommendation of the President of the University, approve funding of $600,000 from Fiscal

Year 2020-21 Asset Preservation Fee revenue and $1.4 million from emergency deferred

maintenance funds in order to complete the Lovett Auditorium HVAC and electrical system

renovations as stipulated in the Program Statement approved earlier by the Buildings and

Grounds Committee. Mrs. Rudolph seconded and the motion carried.

Full Board Action – Lovett Auditorium HVAC and Electrical System Renovations Project

Funding, approved

On behalf of the Finance Committee, Mr. Owens moved that the Board of Regents, upon the

recommendation of the President of the University, approve funding of $600,000 from Fiscal

Year 2020-21 Asset Preservation Fee revenue and $1.4 million from emergency deferred

maintenance funds in order to complete the Lovett Auditorium HVAC and electrical system

renovations as stipulated in the Program Statement approved earlier by the Buildings and

Grounds Committee. Mr. Schooley seconded and the roll was called with the following voting:

Mr. Crigler, yes; Mrs. Gray, yes; Ms. Green, yes; Mr. Norman, yes; Mr. Owens, yes; Mrs.

Rudolph, yes; Mr. Schooley, yes; Dr. Shemberger, yes; Dr. Tharpe, yes and Mr. Rhoads, yes.

The motion carried unanimously.

Establishment and Designation of the Dr. Robert “Doc” McGaughey Fund for Excellence in

Journalism and Mass Communications Quasi-Endowment, approved and designated

Tina Bernot, Executive Director of Development, reported that Robert Howe McGaughey, III,

“Doc,” arrived on Murray State’s campus in the fall of 1961 as an undergraduate student. He

earned a Bachelor of Arts in History and a Master of Arts in Journalism (JMC) at Murray State

before receiving his doctorate at Ohio University. Doc returned to Murray State as a member of

the Journalism faculty and spent 23 years as Chair of the department. During his service to the

University, he held every faculty rank available, including College Head of Elizabeth Residential

College. An active advisor to students and organizations, he was recognized for teaching

excellence as the Max Carmen Outstanding Teacher and as Distinguished Professor. Dr.

McGaughey passed away in June of 2019. He was awarded the Murray State University Alumni

Association’s Distinguished Alumni Award – the organization’s highest honor – posthumously,

in 2020.

Through his estate, Doc McGaughey left a legacy gift of $103,333.18 to Murray State University

to support the educational dreams of future journalism students. The Department of Journalism

and Mass Communications has requested that this gift be used to establish a Quasi-Endowment.

The spendable investment earnings from the Dr. Robert “Doc” McGaughey Fund for Excellence

in Journalism and Mass Communications will be used to support the department’s programs and

overall mission in accordance with University spending guidelines. The department requests that

the sum of $100,000 be invested for the principal of the Fund and that $3,333.18 be designated

for current spending. In addition, under the direction of current Department Chair Allen White

and Professor Bob Valentine, the senior capstone course in advertising campaigns in JMC in the

Bauernfeind College of Business has presented a plan to increase the endowment – Onward

Communications. To date, $18,000 has already been raised to be added to this new Fund. The

Murray State University Foundation will serve as the administrator of the funds and expenditures

will be made from interest earnings. The actual number of awards may vary based on growth of

this fund and available investment earnings. Proceeds from the McGaughey estate total

$103,333.18, with $100,000 serving as the original corpus for the Quasi-Endowment.

On behalf of the Finance Committee, Mr. Crigler moved that the Board of Regents, upon the

recommendation of the President of the University, approve the designation of $100,000 of the

estate gift from Dr. Robert Howe McGaughey, III, for the establishment of the Quasi-

Endowment named in his honor: the Dr. Robert “Doc” McGaughey Fund for Excellence in

Journalism and Mass Communications. Mrs. Rudolph seconded and the motion carried.

Full Board Action – Establishment and Designation of the Dr. Robert “Doc” McGaughey

Fund for Excellence in Journalism and Mass Communications Quasi-Endowment, approved

and designated

On behalf of the Finance Committee, Mr. Owens moved that the Board of Regents, upon the

recommendation of the President of the University, approve the designation of $100,000 of the

estate gift from Dr. Robert Howe McGaughey, III, for the establishment of the Quasi-

Endowment named in his honor: the Dr. Robert “Doc” McGaughey Fund for Excellence in

Journalism and Mass Communications. Regent Shemberger abstained from the vote because the

action being taken involves her assigned department. Mr. Norman seconded and the motion

carried.

Projects Approval, approved

Ms. Dudley reported that Delegation of Authority Item #20 states “…Prior to moving forward,

all projects costing over $200,000 and up to the threshold denoted by Kentucky statute should be

reviewed by the Board Chair and the President and a determination made in terms of those

projects requiring further Board approval.

The two schedules below listing projects initiated since the last Board report were provided to

Regents:

1. Projects with estimated costs of $200,000 or less

2. Projects with estimated costs of over $200,000, which were reviewed by the Board Chair

and President

Designation of funding is obtained from the Board to allow the institution to report the funds for

the listed projects as “Board Designated” in the University’s quarterly financial reports and

annual audit. This is not an exhaustive listing of projects under $200,000 but those that have

been started and not completed as of the preparation date in an order to designate funding.

On behalf of the Finance Committee, Mr. Schooley moved that the Board of Regents, upon the

recommendation of the President of the University, designate the funding as outlined for the

projects on the listings provided. Mrs. Rudolph seconded and the motion carried.

Full Board Action – Projects Approval, approved

On behalf of the Finance Committee, Mr. Owens moved that the Board of Regents, upon the

recommendation of the President of the University, designate the funding as outlined for the

projects on the attached listings. Dr. Shemberger seconded and the roll was called with the

following voting: Mr. Crigler, yes; Mrs. Gray, yes; Ms. Green, yes; Mr. Norman, yes; Mr.

Owens, yes; Mrs. Rudolph, yes; Mr. Schooley, yes; Dr. Shemberger, yes; Dr. Tharpe, yes and

Mr. Rhoads, yes. The motion carried unanimously.

(See Attachments #17 and #18)

Personal Services Contracts, approved

Ms. Dudley reported that Item #11 of the Delegation of Authority stipulates the Board will:

“....approve all Personal Services Contracts totaling more than $50,000. The Board will be

notified of all Personal Services Contracts between $10,000 and $50,000 before they are

submitted to the Legislative Research Commission (LRC). Upon review, individual Board

members may request that these be held for approval at the next Board meeting.”

On behalf of the Finance Committee, Mr. Crigler moved that the Board of Regents, upon the

recommendation of the President of the University, approve the contracts as listed in the

document provided per requirements of the Delegation of Authority Item #11. Mr. Schooley

seconded and the motion carried.

Full Board Action – Personal Services Contracts, approved

On behalf of the Finance Committee, Mr. Owens moved that the Board of Regents, upon the

recommendation of the President of the University, approve the contracts included on the

attached listing per requirements of the Delegation of Authority Item #11. Dr. Tharpe seconded

and the roll was called with the following voting: Mr. Crigler, yes; Mrs. Gray, yes; Ms. Green,

yes; Mr. Norman, yes; Mr. Owens, yes; Mrs. Rudolph, yes; Mr. Schooley, yes; Dr. Shemberger,

yes; Dr. Tharpe, yes and Mr. Rhoads, yes. The motion carried unanimously.

(See Attachment #19)

Adjournment

The Finance Committee adjourned at 1:45 p.m.

Legislative and Economic Development Committee

Virginia Gray – Chair

Sharon Green

Leon Owens

Jerry Rhoads

Mrs. Gray called the Legislative and Economic Development Committee to order at 1:45 p.m.

and reported all other members were present.

Legislative Update Report, received

Mr. Smith reported the following:

➢ On January 5, 2021, the Legislature will be entering a 30-day, one-year budget session which will

address the second year of the biennium (2021-22). The 2020 Legislative Session would normally

deal with the two-year biennial budget but was cut short due to the beginning of COVID-19.

March 30, 2021, is the official last day of the Legislative Session (Sine Die) after the veto period.

➢ Appreciation was expressed to key Session Committee Chairs and legislators as follows:

- House Majority Floor Leader – Representative Steve Rudy (Racer alum)

- House Appropriations and Revenue (A&R) Committee: Budget Review Subcommittee on

Postsecondary Education – Representative James Tipton (Performance Funding Work Group

member, along with President Jackson as Convener)

- House Education Committee – Representative Regina Huff

- President Pro-Tem – Senator David Givens (Performance Funding Work Group member)

- Senate A&R Committee – Senator Chris McDaniel

- Senate A&R committee: Budget Review Subcommittee on Postsecondary Education – Senator Alice

Forgy Kerr

- Senate Education Committee – Senator Max Wise

- All 18-county service region legislators

➢ Murray State University legislative priorities for the 2021 Legislative Session include:

- Deferred Maintenance/Asset Preservation – the University will support the CPE’s Deferred

Maintenance/Asset Preservation Request for higher education overall. The University (agency) bond

request for historical building preservation in the amount of $12.2 million is also a key priority.

- Routine Reauthorizations for the University (Agency) Bonding/Public-Private Partnership (P3) –

includes replacement/renovation of residence halls ($27.1 million), P3 housing financing ($66

million) and P3 alternate dining facilities ($12 million).

- Performance Funding – includes support of CPE’s 2021-22 increased funding request for the

Performance Funding Model and support of the Work Group recommendations.

- Public Pensions – includes a bill to keep the KERS contribution rate the same in 2021-22 as 2020-21

(49.47 percent) or provide additional funding to offset the rate increase and support of the Public

Pension Work Group recommendations on the Teachers’ Retirement System.

➢ Other than the state budget, not many bills are expected to move during this Short Session. It is

possible the University’s legislative priorities could be addressed in the state budget bill, with the

exception of a stand-alone performance funding recommendation bill and a potential pension bill to

address the Kentucky Retirement System TRS rates.

➢ Regional and state legislative activities include meetings with many area legislators throughout the

interim period, in addition to the CPE Performance Funding Work Group, Legislative Research

Commission, LRC Public Pension Work Group, Governor’s Agri-Tech Work Group (Dr. Jackson,

member), the regional Agri-Tech Committee established by MSU and regular updates with the

Governor’s Office. Appreciation was expressed to Ms. Dudley and Dr. Fister who are key to the

University’s work in effectively advocating for Murray State in Frankfort. Appreciation was

expressed to Regent Gray for organizing a ZOOM meeting between the University and Hopkinsville

legislators and leaders.

➢ As mentioned earlier, the University successfully secured a PACRO grant award for the Paducah

Regional Campus. Appreciation was expressed to Executive Director Greg Wiles for providing this

opportunity for the MSU School of Nursing and Health Professions. The PACRO Board also

includes several local elected officials.

➢ Murray State has formally congratulated all 18-county service region legislators, legislative leaders,

its federal delegation and others following the election.

➢ MSU hosted United States Congressman James Comer on campus. He visited the newly-named

School of Engineering and discussion occurred with President Jackson; Chair Danny Claiborne and

Dean of the Jones College of Science, Engineering and Technology Claire Fuller and others.

➢ Appreciation was expressed to Congressman Comer and his staff for helping the University secure

the USDA grant award for the Nursing Education Simulation Center student recruitment program in

the School of Nursing and Health Professions. Leader Mitch McConnell and Senator Rand Paul and

their staff also assisted in this effort. The support of the federal delegation, as well as weekly updates

they provide, are very much appreciated.

➢ Frequent meetings were held regarding additional CARES stimulus funding assistance with staff and

field representatives for Leader McConnell, Senator Paul and Congressman Comer.

Dr. Jackson added that yesterday the Breathitt Veterinary Center (BVC) Advisory Board met.

Dorsey Ridley from Henderson, Kentucky, serves as Executive Director of the Governor’s

Office of Agricultural Policy and attended the BVC Advisory Board meeting. Former Senator

Ridley knows the BVC, agriculture and the region well and has been very helpful to Murray

State. The Agri-Tech initiative is positive for the MSU Hutson School of Agriculture, the

University overall and agriculture throughout the Commonwealth.

Adjournment

The Legislative and Economic Development Committee adjourned at 2 p.m.

Marketing and Community Engagement Committee

Sharon Green – Chair

Eric Crigler

Virginia Gray

Melony Shemberger

Ms. Green called the Marketing and Community Engagement Committee to order at 2 p.m. and

reported all other members were present.

Gifts-in-Kind

Tosh Wean-Finish Facility – Hutson School of Agriculture, received, accepted and

approved

Mrs. Bernot welcomed the Tosh family who is listening to the meeting via livestream. Tosh

Farms is a family-owned business located in Henry, Tennessee. The business consists of three

separate enterprises working together in a synergistic fashion. Tosh Farms is a general

partnership and the crop production company. Tosh Pork, LLC, is the swine production

company. Bacon By Gosh, Incorporated, is the transportation company. Tosh Pork provides

care from birth to market to approximately 30,000 sows that produce over 750,000 market hogs

each year.

Jimmy Tosh is the owner and Chief Executive Officer of Tosh Farms and has two sons – Jamey

and Jonathan. Jonathan is a 2004 graduate of the Murray State Hutson School of Agriculture and

Jamey taught Swine Science for Murray State as an Assistant Instructor. The Tosh family has

been supportive of MSU agriculture for some time, annually donating generously for

scholarships and Agriculture Appreciation Week activities. Tosh Farms also regularly hires

Murray State graduates. In recognition of this support, the MSU Hutson School of Agriculture

presented the company and family with the prestigious Agriculture Support award at

Homecoming in 2016.

The Swine industry currently provides a large number of good employment opportunities. With

Tosh Farms assistance and guidance, the Hutson School of Agriculture reinitiated its swine

operation several years ago to include a farrow to show pig to finish swine operation. The

primary objective of this unit is to train students to work in the modern swine industry.

Secondary objectives are to produce high-quality show animals for purchase by area 4-H

organizations and Future Farmers of America members to enhance future student recruitment

and provide a potential source for locally-produced Kentucky Proud Racer Pork.

Tosh Farms has provided all funding toward constructing an 85 x 25 Swine Finishing Learning

Laboratory on the North Farm, as well as for all internal equipment to make it operational. They

also covered the full cost of all engineering and construction of this facility and coordinated the

construction with the MSU Facilities Management team, utilizing their regular construction

crew. The facility was constructed in Spring/Summer 2020. Sincere appreciation was expressed

to Tosh Farms for furthering their support of Murray State agriculture and the Racer Pork

initiative, by providing a laboratory to supplement curriculum and instruction, enhancing their

employee recruitment and marketing efforts and modernizing and providing state-of-the-art Food

Animal Science hands-on educational opportunities.

Mrs. Bernot expressed appreciation to the Tosh family on behalf of Dean Tony Brannon for this

gift that will serve in perpetuity to preserve and procure Murray State’s swine and animal science

academic and laboratory support. This pioneering project could not have been completed

without the involvement of the Tosh family and their support is greatly appreciated.

On behalf of the Marketing and Community Engagement Committee, Mr. Crigler moved that the

Board of Regents, upon the recommendation of the President of the University, receive, accept

and approve the donation of the Tosh Wean-Finish Facility and associated equipment on the

North Farm for the benefit of student-centered instruction in the Hutson School of Agriculture.

The total value of this project, as determined upon completion of the barn (including

construction/replacement cost), is $508,274. Mrs. Gray seconded and the motion carried.

Full Board Action – Tosh Wean-Finish Facility – Hutson School of Agriculture, received,

accepted and approved

On behalf of the Marketing and Community Engagement Committee, Ms. Green moved that the

Board of Regents, upon the recommendation of the President of the University, receive, accept

and approve the donation of the Tosh Wean-Finish Facility and associated equipment on the

North Farm for the benefit of student-centered instruction in the Hutson School of Agriculture.

The total value of this project, as determined upon completion of the barn (including

construction/replacement cost), is $508,274. Mrs. Rudolph seconded and the motion carried

unanimously.

Coins from the Dr. Robert Howe McGaughey III Estate and Designation of Proceeds from

Sale, accepted and designated

Mrs. Bernot reported that information regarding Dr. Robert “Doc” McGaughey was shared

earlier relative to the legacy gift of $103,333.18 to Murray State University to support the

educational dreams of future journalism students through the establishment of a quasi-

endowment with the Murray State University Foundation, Incorporated. The endowment would

be named in his honor – the Dr. Robert “Doc” McGaughey Fund for Excellence in Journalism

and Mass Communications. Murray State also received a distribution of gold coins from U.S.

Money Reserve, Coin Galleries, Incorporated, and JP Capital Collectible (value unknown)

through Dr. McGaughey’s estate. The University wishes to sell these coins and designate the

proceeds to the Dr. Robert “Doc” McGaughey Fund for Excellence in Journalism and Mass

Communications held by Murray State University Foundation, Incorporated, on behalf of the

University.

On behalf of the Marketing and Community Engagement Committee, Mr. Crigler moved that the

Board of Regents, upon the recommendation of the President of the University, accept the gift of

gold coins from the estate of Dr. Robert “Doc” Howe McGaughey III and approve the sale of

those coins and transfer of the proceeds to the Murray State University Foundation, Incorporated,

designated for the principal for the Dr. Robert “Doc” McGaughey Fund for Excellence in

Journalism and Mass Communications. Dr. Shemberger stated for the record that she will

abstain from this vote because the action being taken involves her assigned department. Dr.

Tharpe seconded and the motion carried.

Full Board Action – Coins from the Dr. Robert Howe McGaughey III Estate and

Designation of Proceeds from Sale, accepted and designated

On behalf of the Marketing and Community Engagement Committee, Ms. Green moved that the

Board of Regents, upon the recommendation of the President of the University, accept the gift of

gold coins from the estate of Dr. Robert “Doc” Howe McGaughey III and approve the sale of

those coins and transfer of the proceeds to the Murray State University Foundation, Incorporated,

designated for the principal for the Dr. Robert “Doc” McGaughey Fund for Excellence in

Journalism and Mass Communications. Mrs. Gray seconded and the motion carried.

Naming Opportunity – Dennis Jackson Racer Room in Roy Stewart Stadium, approved

Mrs. Bernot reported that Dennis Jackson earned the Bachelor of Science degree in 1966 (double

major in Adolescent, Career and Special Education and History) and the Masters of Arts

(Education) degree in 1971, both from Murray State. Throughout his professional life,

continuing education remained a consistent priority for Mr. Jackson, as he received the Rank 1

Professional Certificate for School Administration, Endorsement for Secondary School Principal

for Grades 7-12 and Endorsement for School Superintendent. Mr. Jackson’s focus after

graduation was assisting youth through education as a teacher, administrator, Coach and game

official, serving in many positions in school systems in Michigan (Benton Harbor) and Kentucky

(Trigg County and Paducah Public Schools). In recognition for his dedication to education

throughout his life, Mr. Jackson was honored by Who’s Who Among American Teachers.

In 1960, Mr. Jackson became the first African American student-athlete at Murray State

University. He was an all-around talent on the football field as a receiver, tailback and safety

from 1962-64, being named to the All-Ohio Valley Conference Football Team in 1964.

Additionally, Mr. Jackson excelled as a track student-athlete from 1961-64, notably as a member

of Murray State’s 4x100 meter relay team which held the best time in the southeast region. For

his contributions as a student-athlete and lifelong Racer, Mr. Jackson was inducted into the

Murray State University Athletics Hall of Fame in 2007.

As a lifelong educator in the Paducah public school system, Mr. Jackson served as a Health and

Physical Education Teacher, Football/Basketball/Track Coach and Dean of Students at Jetton

Junior High School. Additionally, Mr. Jackson was a History teacher and Track Coach at

Brazelton Junior High/Paducah Middle School. He went on to serve as Assistant Football

Coach, Athletics Director and Assistant Principal at Paducah Tilghman High School. Finally, he

served as Director of District Personnel for Paducah Public Schools. Prior to his time with the

Paducah public school system, Mr. Jackson served as Health and Physical Education teacher and

high school Assistant Football Coach at Trigg County, Kentucky, and Social Studies

teacher/Student Council Advisor in Benton Harbor, Michigan.

Mr. Jackson has been honored with numerous awards throughout his distinguished career. He

received the Murray State University Distinguished Alumnus Award – the highest honor granted

by the Murray State Alumni Association – on the 60

anniversary of desegregation at the

University. Additionally, Mr. Jackson was inducted into the Kentucky High School Athletic

Hall of Fame in 1999, working as an official for 25 years (15 total state basketball

championships).

Throughout his life Mr. Jackson has been an active member of his community, serving as

Deacon at Harrison Street Baptist Church and a member of the Board of Directors for the Luther

S. Carson Four Rivers Center for the Arts and Paducah Civil Service Commission. He served as

Chair of the Pam and Havana Rutledge Memorial Scholarship Fund, Vice President and

President of the First Region Basketball Officials Association, President of the Murray State

University Alumni Association and served on the Kentucky Council on Postsecondary Education

(Chair of the Committee on Equality and Opportunity).

Mr. Jackson is married to Patricia Brandon Jackson (Bachelor of Science in 1967 – Elementary

Education and Master of Arts in 1972 – Education). They have one son, Brandon Jackson.

In appreciation for Dennis Jackson’s service and lifelong commitment to education and serving

as an ideal ambassador for the University and Murray State Athletics, naming of the Dennis

Jackson Racer Room in Roy Stewart Stadium is being recommended. The naming will be

commemorated with a plaque of recognition located at the entrance and/or inside the space. In

the coming months, as a result of marketing funds included in the Athletics Department-wide

apparel agreement with Nike/BSN and maintenance work scheduled through campus Facilities

Management, the Dennis Jackson Racer Room will be outfitted with a projector/screen, sound

system, new carpet, drywall, fresh paint and sport-specific mannequins donning respective Nike

gear. Athletics envisions this space as a nutrition/fueling location for two-thirds of the 327

student-athletes housed inside Stewart Stadium, a pre-game (football and track/field) hospitality

area, a recruiting space for all teams and potential location to host general campus and/or

external community events. Fundraising efforts will run parallel to project work in an effort to

renovate the outdated kitchen and restrooms in the rear of the Dennis Jackson Racer Room.

On behalf of the Marketing and Community Engagement Committee, Mrs. Gray moved that the

Board of Regents, upon the recommendation of the President of the University and the

Committee on Naming of Facilities, Programs and Activities, approve the naming opportunity

for the Dennis Jackson Racer Room in Roy Stewart Stadium in appreciation for Mr. Dennis

Jackson’s lifelong commitment to education and serving as an ideal ambassador for the

University and Murray State Athletics. Dr. Shemberger seconded and the motion carried.

Director of Athletics Kevin Saal reported that Mr. Jackson represented a model student-athlete

who created a pathway for thousands who have come behind him. He has dedicated his life to

education and the development of young people through athletics. He served Murray State

University as an active alumnus and his community as a model leader. Most importantly, he is a

giver of his time. This naming opportunity will continue to further the education of current and

future student-athletes for many years to come. Through Mr. Jackson’s story student-athletes

can see a defined pathway to tremendous success and impact.

Mr. Owens expressed appreciation to President Jackson and Mr. Saal for recognizing the

significance of Mr. Jackson’s contributions to Murray State University. He has known Mr.

Jackson as his mentor for a number of years and he embodies and exemplifies the best in

mankind, is a consummate gentleman and any accolades he receives are not sought out. Mr.

Jackson is a fine man and this represents a worthy designation – there is no one more deserving.

Dr. Jackson reported that he spoke with Mr. Jackson yesterday. Mr. Jackson asked him to thank

everyone for this consideration, not knowing whether it would be approved – as he is that

humble. He is a recruiter for the University and maintains regular contact with Murray State.

He has and continues to serve this University well and it is an honor to recognize him in this

way. Chair Rhoads indicated that Mr. Jackson has been a true pioneer and has even shared some

of his stories while attending Murray State. All would have an even greater appreciation for Mr.

Jackson after hearing some of those stories.

Full Board Action – Naming Opportunity – Dennis Jackson Racer Room in Roy Stewart

Stadium, approved

On behalf of the Marketing and Community Engagement Committee, Ms. Green moved that the

Board of Regents, upon the recommendation of the President of the University and the

Committee on Naming of Facilities, Programs and Activities, approve the naming opportunity

for the Dennis Jackson Racer Room in Roy Stewart Stadium in appreciation for Mr. Dennis

Jackson’s lifelong commitment to education and serving as an ideal ambassador for the

University and Murray State Athletics. Mr. Owens seconded and the motion carried

unanimously.

Adjournment

The Marketing and Community Engagement Committee adjourned at 2:20 p.m.

Ad Hoc Presidential Evaluation Process Review Committee

Eric Crigler – Chair

Virginia Gray

Jerry Rhoads

Lisa Rudolph

Don Tharpe

Mr. Crigler called the Ad Hoc Presidential Evaluation Process Review Committee to order at

2:20 p.m. and reported all other members were present. Members were appointed at the

August 28, 2020, Board of Regents Meeting and were charged with assessing the current

procedures and methods for evaluating the President of the University – both on an annual and a

comprehensive (four-year) basis. The Committee was asked to evaluate changes to ensure the

procedure is more effective, informative and efficient and make recommendations to the Board

as to the policies and procedures needed to enhance the evaluation process since it has not been

reviewed in many years. The Committee has met twice and the minutes from the two meetings

were provided to the Board for transparency and approval.

Minutes of the Board of Regents Ad Hoc Presidential Evaluation Process Review

Committee Meetings on October 29, 2020, and November 20, 2020, approved

On behalf of the Ad Hoc Presidential Evaluation Process Review Committee, Mrs. Gray moved

that the minutes of the meetings on October 29 and November 20, 2020, be approved as

submitted. Mr. Rhoads seconded and the motion carried.

Full Board Action – Minutes of the Board of Regents Ad Hoc Presidential Evaluation

Process Review Committee Meetings on October 29, 2020, and November 20, 2020,

approved

On behalf of the Ad Hoc Presidential Evaluation Process Review Committee, Mr. Crigler moved

that the minutes of the meetings on October 29 and November 20, 2020, be approved as

submitted. Mrs. Rudolph seconded and the motion carried unanimously.

Operating Procedure for Presidential Evaluation Revisions, adopted

Mr. Crigler reported that in accordance with its charge of reviewing and revising the procedures

utilized to evaluate the Murray State University President, the Committee carefully reviewed the

procedures for both the annual evaluation and the 360° evaluation (four-year review) and

recommends adoption of the revised procedure as approved and submitted by the Committee.

The method to be used to evaluate the President (survey) will be addressed by the Committee at

a later date, with anticipated recommendations to be presented at the Quarterly Board of Regents

Meeting in February 2021. Four basic changes are being recommended for the current Operating

Procedure for Presidential Evaluation. The first is the addition of a timeline for this process,

which includes steps to be followed. The second change was to add the Vice Chair of the Board

to the evaluation process to aid in both transparency and future consistency when evaluating the

President. Additional structure was also added to the evaluation so it would be consistent from

year to year in terms of identifying what has gone well and where opportunities for improvement

exist. Sections were also added relative to annual goals for the President and progress toward the

Strategic Plan. The final change that is being recommended relates to the 360° review to be

conducted every four years. The last time the review was undertaken, constituency groups that

were added included secondary education leadership (regional Principals and Superintendents)

and government leaders. This has now been codified in the revised procedure.

On behalf of the Board of Regents Ad Hoc Presidential Evaluation Process Review Committee,

Mr. Rhoads moved that the Board of Regents adopt the revised Operating Procedure for

Presidential Evaluation as submitted, with the appropriate survey method and instrument to be

utilized to be determined at a later date by the Ad Hoc Committee and submitted for approval by

the full Board at the February 2021 Quarterly Meeting. Mrs. Rudolph seconded and the motion

carried.

Full Board Action – Operating Procedure for Presidential Evaluation Revisions, adopted

Mr. Crigler moved that the Board of Regents, upon the recommendation of the Ad Hoc

Presidential Evaluation Process Review Committee, adopt the revised Operating Procedure for

Presidential Evaluation as attached, with the appropriate survey method and instrument to be

utilized to be determined at a later date by the Ad Hoc Committee and submitted for approval by

the full Board at the February 2021 Quarterly Meeting. Mr. Owens seconded and the motion

carried unanimously.

(See Attachment #20)

Chair Rhoads commended the Committee for their work to this point. The revised document

being presented addresses concerns expressed by Regents relative to the presidential evaluation

process.

Policy Changes

Dr. Jackson reported that the first two policy changes represent the second reading of these

policies to be considered by the Board to ensure conformity with federal and state regulations

and laws. Mr. Miller confirmed that the changes being recommended are in conformance and

consistent with changes to federal regulations.

Board of Regents Policy Manual – Section 2.21 – Sexual Harassment Policy Revisions, adopted

Mr. Owens moved that the Board of Regents, upon the recommendation of the President of the

University, adopt the revised Board of Regents Policy Manual – Section 2.21 – Sexual

Harassment Policy, having been presented as a first reading at the August 28, 2020, Quarterly

Meeting. Mrs. Gray seconded and the motion carried unanimously.

(See Attachment #21)

Board of Regents Policy Manual – Section 2.24 (becomes part of Section 2.21) – Sexual

Violence and Misconduct, Relationship Violence and Stalking Policy Revisions, adopted

Dr. Tharpe moved that the Board of Regents, upon the recommendation of the President of the

University, adopt the revised Board of Regents Policy Manual – Section 2.24 – Sexual Violence

and Misconduct, Relationship Violence and Stalking Policy (becomes part of Section 2.21),

having been presented as a first reading at the August 28, 2020, Quarterly Meeting. Mrs.

Rudolph seconded and the motion carried unanimously.

(See Attachment #22)

Board of Regents Policy Manual – New Section 2.24 – Minors on Campus (first reading),

approved

Dr. Jackson reported that a new policy for the University relative to minors on campus is being

recommended. The University began considering adopting this new policy several years ago but

that work was not completed. Work resumed over the past year to develop the policy being

presented to the Board. The policy has been vetted through all appropriate offices across campus

and the Work Group overseeing this work was guided by Vice President Dudley. There have

been a number of widely-publicized issues relative to minors on university campuses over the

last several years. This policy will address required background checks for individuals working

with minors on campus, in addition to other initiatives.

Dr. Shemberger moved that the Board of Regents, upon the recommendation of the President of

the University, approve the Board of Regents Policy – New Section 2.24 – Minors on Campus

(first reading) as submitted. Mr. Owens seconded and the motion carried unanimously.

Board of Regents Policy Manual – Section 2.6 – Fee Establishment Policy Revisions (first

reading), approved

Dr. Jackson reported that an amendment to BOR Policy Manual – Section 2.6 – Fee

Establishment Policy is being recommended. The change clarifies language relative to how

course fees are allowed to be used for teaching purposes and has the support of Academic Affairs

because it is needed to enhance teaching and learning.

Dr. Shemberger moved that the Board of Regents, upon the recommendation of the President of

the University, approve the Board of Regents Policy – Section 2.6 – Fee Establishment revisions

(first reading) as submitted. Mr. Norman seconded and the motion carried unanimously.

Board Development

Mr. Schooley expressed appreciation to Murray State staff for their excellent work which

allowed the University to complete the Spring and Fall 2020 semesters. Appreciation was

specifically expressed to Willem Mathis, Web Research Solutions Coordinator in Information

Systems; Jessica Evans, Director of Assessment and Accreditation for the College of Education

and Human Services and the Staff Perspective Survey Committee for their work. The entire

survey results report was included in the eBoard book.

David Wilson, Director of Housing and Staff Congress President, presented the 2020 Staff

Perspective Survey results with the following highlights:

➢ Appreciation was expressed to all student workers.

➢ The Staff Perspective Survey response rate was 39.7 percent and 721 total surveys were sent out. The

survey was released right before the University closed campus in the spring and it is believed this

affected the response rate. Staff continue to do excellent work – and more work – with smaller

numbers compared to prior years.

➢ An ad hoc committee met and reviewed the results of the survey responses in detail. This work

resulted in ten overall recommendations, including the following:

- A great deal of communication has occurred relative to flexible work hours for staff and that has been

advanced to the Working Conditions Committee to determine whether it is feasible.

- Pay was cited as an issue for staff. In response to this concern, total institutional cost information

associated with a pay raise has been provided to staff.

- Concern was also expressed relative to the cost of benefits increasing.

- Throughout the responses there was an air of uncertainty among staff relative to their jobs. Many

were worried about additional outsourcing and equitable workloads due to vacant positions not being

filled.

- All concerns have also been advanced to the appropriate committees to review.

➢ Overall, staff feel that the current administration listens to what they have to say. With the exception

of pay, staff feel that the benefits they receive are positive and appropriate.

➢ The majority of staff are positive about the direction in which the University is headed.

This report was presented for informational purposes only and required no Board action.

Dr. Jackson expressed appreciation to Dr. Wilson who oversees student workers, Resident

Advisors and Directors in the residential colleges. A major concern last spring was the potential

for a COVID-19 outbreak in the residence halls. This did not occur due to the good work of Dr.

Wilson and his staff and their efforts are truly appreciated.

Supplemental Materials

Dr. Jackson reported that Regents were provided with supplemental materials in the eBoard

book, including the “Good News” Report – October 2020; Quarterly Branding, Marketing and

Communication Report – July – September 2020 and Sponsored Programs – Grants and

Contracts Report. The Litigation Status Report prepared by General Counsel Miller was

provided in a separate, confidential eBoard book. These reports were provided for informational

purposes only and required no Board action.

Other Business/Adjournment

The Board of Regents presented Christmas gifts to President and Mrs. Karen Jackson and

Secretary Hunt. Appreciation was expressed to the Board for their thoughtfulness. Chair

Rhoads expressed appreciation to Dr. Jackson, Karen and Secretary Hunt for all of their good

service, particularly during this trying time. A special thank you was given to Karen for the

sacrifices she makes to support Murray State as her role as First Lady. The Board gave virtual

applause to these individuals.

There being no further business to come before the Board, Chair Rhoads requested a motion for

the Board of Regents Quarterly and Committee Meetings to adjourn. Mr. Schooley so moved,

seconded by Dr. Shemberger, and the motion carried unanimously. Adjournment was at 2:55

p.m.

___________________________________

Chair Jerry Rhoads

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Secretary Jill Hunt

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