ALL PAGES CONFIDENTIAL

Memorandum for the

Record
Review of Contracts Executed at Alabama A&M University from September
2009-May 2010

Trustee, James D. Montgomery, Sr.

6/25/2010
 MEMORANDUM FOR THE RECORD
Subject: Review Contracts Executed From September 2009 - May 2010

Submitted: June 24, 2010

Purpose and Overview

Alabama A&M University Trustees have certain responsibilities (some of which are fiduciary).
As fiduciaries we are individually and collectively legally appointed , authorized and given
exclusive jurisdiction, power and authority with regard to the supervision, management, and
control of Alabama Agricultural and Mechanical University; ....."
Further the Act enacted by Alabama State Legislature states: "The Board of Trustees has the
power to organize the University by appointing a president, whose salary shall be fixed by the
Board, and employing a corps of instructors, who shall be nominated to the board in writing by
the president and who shall be styled the faculty of the University, and such other instructors
and officers as the interests of the university may require; and to remove any such instructors
or other officers, and to fix their salaries or compensation and increase or reduce the same at
their discretion; to regulate, alter or modify the government of the University, as they deem
advisable; to prescribe courses of instruction, rates of tuition, and fees; to confer such
academic and honorary degrees as are usually conferred by institutions of similar character;
and to do whatever else they may deem best for promoting the interest of the University"..

The board is responsible for insuring that all university resources and assets are managed
properly. We are charged with impartially defending university assets, prudently investing its
resources ,thoroughly accounting for its expenditures and refraining from the very appearance
of profiting from its business.

This report seeks to satisfy ( in my opinion) the expressed individual and collective duties of an
appointed trustee with regards to maintaining supervision , management and control of
Alabama A&M University . We have reviewed contracts ( all that were provided to us) that
were executed during the last eight months Sept, 2009- May 2010. We will present the facts as
we have found them and as it relates to the expenditure of funds using professional contracts
as the method to execute the contract. In our examination of contracts we have identified the
following: (1) Person Requesting Contract (2) Person Receiving Contract (3) Statement of Work -
SOW (4) Total Cost of Contract/Excluding Expenses (5) Expenses (5) Total Contract. and (6)
Funding Source.
 Finding of Facts

1. On September 11, 2009 Kevin Rolle, Chief of Staff requested and approved a $5000
Consultant Services Contract ( excluding expenses) for Mr. Robert M. Nance from Orangeburg
, SC. This actions was not approved by the board - fee was paid from Title III Funds. Encl#1

2.On September 11, 2009 Kevin Rolle Chief of Staff approved a $17,175 (excluding expenses)
Consultant Services Contract for Mr. Michael Jones from New Orleans, LA. This actions was not
approved by the board . Fees were paid on Oct 19, 2010 from Title III funds . Encl#2

3. On October 8, 2009 Kevin Rolle Chief of staff requested and Dr. Andrew Hugine approved a
$15,000 consulting Services Contract (excluding expenses) for Wesley Peachtree Group.
Purpose of Consultant's visit : Comprehensive Assessment of the University's Student
Financial Aid Office. . Dates of consultant's visit Oct 5-7, 2010. This actions was not approved
by the board. Encl#3

4 On October 8, 2009 Kevin Rolle Chief of staff requested and Dr. Andrew Hugine approved a
$3,226 consulting Services Contract (excluding expenses) for Dr. Vann NewKirk - Fort Valley
State University. This action was not approved by the board. Encl#4

5. On October 8, 2009 Kevin Rolle Chief of staff requested and Dr. Andrew Hugine approved a
$3,226 consulting Services Contract (excluding expenses) for Dr. Daniel L. Howard - Shaw
University. This action was not approved by the board. Encl#5

6. On October 8, 2009 Kevin Rolle Chief of staff requested and Dr. Andrew Hugine approved a
$3,226 consulting Services Contract (excluding expenses) for Dr. Patricia Pierce Ramsey -
Bowie State University. This action was not approved by the board. Encl#6

7. On October 8, 2009 Kevin Rolle Chief of staff requested and Dr. Andrew Hugine approved a
$3,226 consulting Services Contracts (excluding expenses) for Dr. Marvin Yates - Southeastern
Louisiana University. This action was not approved by the board.. Encl#7
8.. On October 8, 2009 Kevin Rolle Chief of staff requested and Dr. Andrew Hugine approved a
$3,226 consulting Services Contract (excluding expenses) for Dr. Mary E.Cheesboro - Retired
Associate Vice President for Faculty and Programs/Academic Affairs- Orangeburg, SC. This
action was not approved by the board. Encl#8

9. On October 8, 2009 Kevin Rolle Chief of staff requested and Dr. Andrew Hugine approved a
$3,119 consulting Services Contract (excluding expenses) for Dr. Shereitte Stokes III -
Tennessee State University. This action was not approved by the board. Encl#9
10. On October 9, 2009Kevin Rolle Chief of staff requested and Dr. Andrew Hugine approved a
$6534.55 relocation expense ( excluding other expenses i.e. travel, lodging, food, etc) for Kevin
Rolle to be moved from two (2) locations: Gaffney, SC and Spartanburg, SC to Madison ,
Alabama. The scheduled move date was October 27, 2009. This action was not approved by
the board. Encl#10

11. On Feb 22, 2010 Wesley Peachtree submitted a letter addressing scope of services to be
provided in the financial aid office. Donald Murphy, CEO & Managing Associate for Wesley
Peachtree estimated the cost to complete work in dealing issues in financial aid to range from
$39,800 (3 weeks work) to $53,000 ( based on 4 weeks work). There were no other companies
letters presented to me detailing their fees for the scope of work described by Wesley
Peachtree. Encl#11

12. On March 8, , 2010 Wesley Peachtree submitted a letter addressing scope of services
related to providing temporary technical support in the Business office by serving in a
temporary capacity as vice President for Finance. Donald Murphy, CEO and Managing
Associate for Wesley Peachtree. The budgeted amount requested by Wesley Peachtree was
$3,800 per week which would be invoiced in bi-weekly intervals. ( excluding expenses). This
action was not approved by the board. There were no other companies letters presented to
me detailing their fees for the scope of work described by Wesley Peachtree.. Encl#12

13. On March 24, 2010 Wesley Peachtree submitted a letter addressing scope of services
related to providing temporary technical support in the Business office specifically in grants and
contracts accounting.. Services scheduled to commence during the week of March 29, 2010
and continue until notified by the university. Donald Murphy, CEO and Managing Associate
for Wesley Peachtree. The budgeted amount t requested by Wesley Peachtree was $85 per
hour which would be due upon presentation of invoice. ( excluding expenses). This action was
not approved by the board. There were no other companies letters presented to me detailing
their fees for the scope of work described by Wesley Peachtree. Encl#13

14. On April 12, 2010 Wesley Peachtree submitted Invoice # 11633-4 for professional services
rendered for the period March 15, 2010 through May 7, 2010 described as "Billing in
connection with overtime fee in connection with services of the Vice President of Finance
support.. D. Alexander (79.5hrs @ $95 hr) Total amount due $7,552.50. This action was not
approved by the board. Encl#14

15. On May 11, 2010 Wesley Peachtree submitted Invoice # 11663-2 for professional services
rendered for the period April 17, 2010 - May 14, 2010 through May 8, 2010 described as
"Billing in connection with Weekly rate as per agreement for Interim Vice President Finance
Support (April 17, 2010 - May 14, 2010 ) D. Alexander (4 wks @ $ 3,800 = $15, 200)- Expenses
Transportation $2,121- Lodging $1,416.54- Sustenance$ 330 Total= 3,867.54 -- Total owed for
period (weekly rate + Expenses ) = $19, 067.54 This action was not approved by the board.
Encl#15

16. On May 11, 2010 Wesley Peachtree submitted Invoice # 11663-1 for professional services
rendered for the period April 17, 2010 - April 25, 2010 described as "Billing in connection with
support in Student Financial Aid Office - Total Hours = 65 - Total Paid = $8, 560- Expenses
Transportation $2,424.96- Lodging $1,480.49- Sustenance$217.55 Total expenses= $4123--
Total owed for period ( Hourly rate + Expenses ) = $12,683 . This action was not approved by
the board. This action was not approved by the board. . Encl#16

17.. On May 11, 2010 Wesley Peachtree submitted Invoice # 11663-3 for professional services
rendered for the period April 16, 2010 - April 25, 2010 described as "Billing in connection with
Accounting support in grants and contracts J. Means (51.4 hrs@ $85= $4,369- Expenses
Transportation $2,642.58- Lodging $493.03- Sustenance$ 582.38 Total= 3,717.99 -- Total owed
for period (Hourly rate + Expenses ) = $8,086.99 This action was not approved by the board. .
Encl#17
 Discussion and Analysis
FACT #1:

On September 11, 2009 Kevin Rolle, Chief of Staff requested and approved a $5000
Consultant Services Contract ( excluding expenses) for Mr. Robert M. Nance from
Orangeburg , SC. This actions was not approved by the board - fee was paid from Title III
Funds.

Discussion:

The purpose of Mr. Nance's visit was to brief the Alabama A&M university faculty and staff on
the American Recovery and Reinvestment act (ARRA). Specifically the consultant was expected
to give an hour long briefing on the ARRA package and explain the law and regulations that
cover the ACT. Additional details were to be given on how the funds should be used and
reporting requirements. Following the hourly long briefing ,faculty and staff could ask
questions.

We were unable to determine the total cost of Mr. Nance's trip since we were not provided
with the cost of travel and any other additional expenses. Information regarding the American
Recovery y Act and its applicability to state institutions could have been provided by State
Agencies serving as repositories of information being sent from federal agencies. Additionally
the state dispatched teams of state employees who were knowledgeable about the recovery
and its applicability to various state agencies. These individuals would not have cost the
university money but would have been providing the information as a service to the State . I
did not see any evidence to suggest the administration requested any assistance from the state
regarding providing information sessions to university faculty and staff on the various aspects
of the ARRA. We believe this consulting fee could have been avoided if the board had been
engaged and asked to assist in finding cost free information.

Title 3 funds were used to defray the cost of this expense. . Normally title 3 funds are used
based on a predetermined plan by the university that has to be submitted to the Department of
Education for approval. In order for title 3 funds to be used for an expenditure that was not
included in the original plan the university would have to request approval to amend the plan
to cover additional initiatives. Of course any change in the title 3 plan would have to be
approved by the board or at least the board would have to know that some deviation or change
in t he original plan was being requested. It is not clear if an addendum to the original plan
was submitted. If an addendum to the original plan was submitted the board was never told.
 FACT# 2.

On September 11, 2009 Kevin Rolle Chief of Staff approved a $17,175 (excluding expenses)
Consultant Services Contract for Mr. Michael Jones from New Orleans, LA. This actions was
not approved by the board . Fees were paid on Oct 19, 2010 from Title III funds

Discussion:

This professional services contract was approved by Kevin role for the assessment of Business
and finance Office , September - October 2009.m It appears that most of the items shown on
Invoice #-0003 in the amount of $17,175 reference reviewed, discussions and interviews. Some
of the efforts listed seem to duplicate work being performed by other individuals or offices at
the university. For example work related to banner was already being handled by an internal
and external consultant. Additionally reference to review and final edit to the president's
response to SACS had already been accomplished the by Vice-President for Business and
finance and the University Provost. We were not presented with any information to confirm
the preparation of any reports from this company.

FACTS # 3

On October 8, 2009 Kevin Rolle Chief of staff requested and Dr. Andrew Hugine approved a
$15,000 consulting Services Contract (excluding expenses) for Wesley Peachtree Group.
Purpose of Consultant's visit : Comprehensive Assessment of the University's Student
Financial Aid Office. . Dates of consultant's visit Oct 5-7, 2010. This actions was not approved
by the board.

Discussion:

This consultant services contract was request by Kevin Rolle and approved by Dr. Andrew
Hugine. We were not presented with any information to confirm the preparation of a report
resulting from this company's work. $15,000 seems extremely excessive for two days of
work for two (2) consultants.

FACTS# 4-9.

Discussion:

On October 8, 2009 Kevin Rolle Chief of staff requested and Dr. Andrew Hugine approved the
hiring of six consultants at a cost of $19, 338who accomplished work from Oct 5-7 2010. The
consultant services contracts do not identify why they were hired or the expected outcome
of their visit.
FACTS# 10

On October 9, 2009 Kevin Rolle Chief of staff requested and Dr. Andrew Hugine approved a
$6534.55 relocation expense ( excluding other expenses i.e. travel, lodging, food, etc) for
Kevin Rolle to be moved from two (2) locations: Gaffney, SC and Spartanburg, SC to Madison ,
Alabama. The scheduled move date was October 27, 2009. This action was not approved
by the board.

Discussion:

Upon review of the university's policy regarding relocation expenses it is expressly stated that
the university does not pay relocation expenses; however in cases where there have been
relocation expenses paid the board was appraised of the amount prior to any
reimbursement. We also examined the invoice submitted by Two Men and a Truck and the
direct pay form request submitted by Kevin Rolle to receive reimbursement for moving
expenses for move from Orangeburg, SC to Huntsville, AL.

Mr. Rolle has refused to provide a copy of the American Express receipt resulting from the
payment of his moving expenses as indicated on the invoice from Two Men and a truck.
Further Mr. Rolle has not provided documentation for other expenses for which he was paid
while relocating from Orangeburg, SC.

Mr. Rolle indicated on his request reimbursement that he was moving from Orangeburg, SC
to Huntsville, AL ; however , the invoice from Two Men and a Truck shows that Mr. Rolle

FACT# 11-17

Discussion:

From Oct 2009 to May 2010 Wesley Peachtree has billed Alabama A&M University by month
as Follows :

Oct 5-7 $15000 .00 Comprehensive Assessment of the University's Student Financial Aid
Nov 24 $24241.92 ??????????????????

Feb 22 $39,800 ????????????????????

April 12 $7552.50 Billing in connection with overtime fee (Dane Alexander). We did not
see overtime pay covered in the Wesley Peachtree's March 8, 2010 letter to Kevin Rolle
outlining scope of services and other terms and conditions. The Alabama A&M Board of
Trustees did not approve allowing overtime pay for any contracts.
May 11 $19067.49 Weekly rate as per agreement for Interim Vice President Finance
(includes expenses)

May 11 $12683.00 Support in Student Financial Aid Office

May 11 $8086.99 Accounting support in grants and contracts

Total Billed As of May 11, 2010: $107,384.08

Note: The total billed amount is an estimate since we may not have all of the billed expenses or
other actual invoices.

Note: The total billed does not take into consideration that other professional contracts may
exist for which we are not aware.
 Conclusion
As the state of Alabama continues to experience budget deficits and proration remains
operative from one budget year to the next it is imperative that we who are charged with
watching over the university's resources are kept informed and fully briefed regarding
planned and actual expenditures. This report is replete with examples of expenditures that
are small and great but they all share a similar refrain " they were not approved by the
board." It is hardly an infringement on the separation of administration and board of
trustees as some have asserted ( from a governance perspective) when legitimate and
caring inquires are made in an effort to control spending especially since all of us should be
working toward the same goal - to do more with less. It is clear that some of the decisions
made regarding the hiring of consultants , and the paying of exorbitant fees to analysts were
made with haste, without consultation and without the advise and consent of the body that
is appointed to help make those decisions - The Alabama A&M University Trustee Board.
Does it take six or seven consultants from five or six different colleges and universities to
suggest or recommend a model of change? or, Does not Alabama A&M University have a
cadre of graduated professionals sprinkled throughout everywhere that could and would ( if
asked) lend their knowledge skills and abilities, ( without pay) to suggest new patterns of
excellence in organizational structure, inform us how to take advantage of Recovery Funds,
and suggests to us new models and paradigms in finance and accounting?

It raises suspicions when consultants are hired with fast paced regularity and are given
permanent salaries in part-time positions. Some would argue that a board of trustees should
allow an administration to develop a budget and spend it as it sees fit and yet isn't that
precisely what this board has done and isn't that what has caused us to be here with "out of
control "spending? Now the tide must turn and the overzealous spending that you see in this
report must stop and this board must require clear and easy to understand justifications
before any funds are expended in the future. And, we must traverse a little farther by
serving notice to those who would bend the rules, those who would attempt to circumvent
policies, and those who would make up new rules and regulations to satisfy their own
felonious desires, that we will be perched on the mount with clear vision and good
intentions watching over our beloved Alabama A&M University.
 Recommendations
The following Recommendations are made:

 That, a permanent board level Contract Review Committee with a permanent chair
position be appointed to oversee Contracts. The Committee would develop the
guidelines for which contracts would be reviewed prior to an award.
 That, the President Pro Tempore appoint a committee to obtain more details on the
awarding of contracts to several of the companies listed in this report and to provide
the board with an explanation on what was the value added to the university by
employing the consulting company.
 That, selected contracts based on an internal review be referred to the Alabama
Department of Public Accounts or the Alabama Attorney General's Office for review.
 That, President Andrew Hugine provide the board with a list of all consulting contracts
that have been signed since he was selected as president and provide a monthly list
each month for any additional contacts that are signed.
 That, President Andrew Hugine provide a current list of all funds paid to all
professional consulting companies to include a separate report showing expenses paid
to date .
 That, Alabama A&M Board of Trustees Clarify its position on relocation expenses and
establish a policy that will be applied to all employees relocating to Alabama A&M.