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Worth it?

MSU Trustees spend large amounts on tickets, travel, univ. entertainment

November 19, 2013
Photo by Becca Guajardo | and Paige Grennan The State News

More than $100,000 in travel and entertainment expenditures by MSU trustees in the past year have been defended by the university with claims that officials are following policy, but in some cases, those policies aren’t written, and in others, actions are in direct conflict with what is written.

University spokesman Kent Cassella has said some trustee travel — such as expensive hotel rooms and paying for a spouse’s travel — are subject to exceptions, although there are policies that prohibit those practices.

Despite a report from Detroit ABC affiliate WXYZ that revealed some international trustee travel expenses that were above what university policies normally allow, a review by The State News of a 730-page expense document shows that most of the expenses incurred by trustees are allowed under limits set by the MSU Manual of Business Procedures.

University reimbursement for hotel rooms costing more than established per diem rates and spouse travel expenses — including meals, airfare, ground travel and other incidentals — seem to be the only violations of the Manual of Business Procedures.

But many of the board’s spending practices are neither authorized nor banned by university policy. They simply do not exist in writing.

One of these common practices allows for only two international trips per trustee per four-year elected term, Cassella said, adding that policy remains unwritten so trustees have flexibility to go to international university events.

Another unwritten policy allows trustees to receive up to four complimentary tickets to any athletic event or Wharton Center and Breslin Center show.

A stricter written policy does, in fact, exist for former trustees. It gives them the option to buy tickets to any athletic event or show; complimentary tickets are awarded when the activity will benefit the university, such as entertaining a donor.

Trustees are encouraged to attend athletic events, Wharton Center entertainment, alumni events and to travel on behalf of the university as part of their oversight role and to meet with donors and alumni, Cassella said.

“Why would you want to be a trustee if you didn’t want to be part of the university and didn’t want to do anything?” he said.

Money spent on travel, sporting events and shows for trustees comes from interest on investment accounts. The money does not come from tuition, federal or state money, university officials said.

Monetary limits

University documents on trustee spending during the past year show more than $68,000 spent on sporting events and more than $24,000 spent on shows. The documents show the trustees have followed the unwritten policy of receiving no more than four tickets per home event.

“I don’t use much of that stuff,” Trustee George Perles said in an interview. “The little bit of entertaining that I do is to take people, if they are potential donors, to the school.”

Cassella said it’s impossible to track how much donation money trustees bring to the university. For instance, an alumni dinner could lead to a donation two years down the road.

Trustees are afforded tickets for away games, too, including tournaments and bowls. Trustees Mitch Lyons, Dianne Byrum, Joel Ferguson and Perles attended the Buffalo Wild Wings Bowl in 2012.

All but Perles received more than four tickets — expense reports are unclear on whether the university paid for the extras.

Trustee Brian Mosallam, who was a trustee-elect at the time, ordered 18 tickets for the December bowl game.

In an interview, he told The State News he paid for all of them because he wasn’t officially a trustee yet.

Several trustees had at least their travel to Tempe, Ariz., for the bowl game paid for by MSU.

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However, Lyons brought his spouse along for the ride.

Byrum did, too. It appears that the spouses’ travel expenses were paid for by the university, which is a direct violation of university policy. Lyons did not return a phone call and Byrum did not reply to an email from The State News.

University policy says that MSU doesn’t pay for the travel expenses of spouses.

Four trustees attended the 2013 Big Ten Basketball Tournament in mid-March.

Ferguson had the most tickets, 34, for which he paid more than $9,000 out-of-pocket.

Part of the purpose of trustees attending away games is to meet with alumni from those areas, because sporting events naturally will bring them together, Cassella said.

In addition to donations, the presence of trustees can lead to alumni feeling “in the loop” and having goodwill toward the university. Events also afford the trustees opportunities to get feedback on aspects of the university’s operations and make their own assessments, he said.

Trustees Diann Woodard, Faylene Owen and Brian Breslin didn’t return calls.

Byrum was not in her office on Friday when The State News called and didn’t reply to email. Ferguson had no comment.

Global trustees

Overseas trips costing more than $20,000 each have been defended by university officials and trustees, but most of the time, trustees fly coach and stay in low-cost hotel rooms.

The Manual of Business Procedures states that the university doesn’t reimburse first-class airfare unless the trip is international and longer than five hours.

This policy also appears to be followed.

The manual also says meals, hotel and incidental expenses are reimbursed on a per diem basis, which is determined by the U.S. Department of State and depends on the location and dates of the trip — usually, this is also followed.

Cassella said there are exceptions — which aren’t written — that allow for hotel rooms to exceed the per diem rate if they are used for business purposes.

It is unclear what specifically allowed Owen to stay in a $1,275 per night hotel room while on an a trip that took her and her husband to Germany and France.

The price was more than five times what would normally have been allowed, based on per diem rates.

The total price of the trip was more than $26,000.

However, this is not the norm.

Many trustees were in Chicago for the men’s basketball Big Ten Tournament and their hotel rooms cost $51 a night.

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