UCA requests AG opinion on deferred-compensation
The University of Central Arkansas has officially requested an opinion from Arkansas Attorney General Dustin McDaniel concerning the flow of funds for UCA President Lu Hardin's $300,000 deferred-compensation payment.
According to a UCA press release, Randy Sims, Board of Trustees chairman, sent a letter to the attorney general's office Thursday regarding "certain provisions of Arkansas law dealing with cash funds of a university, salaries and compensation arrangements."
An incentive package for Hardin, initially approved in 2005 by the board, was accelerated during a May 2 meeting and the board approved paying the president the full total two years earlier than planned. In his letter to the McDaniel, Sims outlined several questions based on the board's decision to do so.
The first question concerns the fund from which Hardin's payment was taken. The money was transferred from the trustees' auxiliary fund, made up of both private donations and excess revenue from private companies operating the institution's food service and bookstore. Sims asked if these cash funds would be considered public or private funds of the university.
His letter goes on to ask if the funds are deemed to be public, whether or not those cash funds would be subject to appropriation acts of the general assembly.
Sims also brought the question of legality in terms of Hardin's maximum salary level to the attorney general. His letter asks if an employee listed in Section 6-63-309 of the Arkansas Code may receive an amount in excess of the maximum salary level established in the institution's appropriation act plus 25 percent under any of the following scenarios:
From cash funds of the institution, if the cash funds are paid to the institution by private companies providing food service and the campus bookstore, and the payment is salary?
From cash funds of the institution, if the cash funds are paid to the institution by private companies providing food service and the campus bookstore, and the payment is a bonus?
From cash funds of the institution, if the cash funds are paid to the institution by private companies providing food service and the campus bookstore, and the payment is pursuant to a "plan of deferred compensation" adopted by the board of trustees and funded with such cash funds?
Gabe Holmstrom, a spokesperson for the attorney general's office, said the office tries to provide opinions, like the one requested by UCA, in less than 30 days, but he cannot guarantee that it will be ready by then.