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        PRIOR PRINTER'S NOS. 3084, 3423, 3084         PRINTER'S NO. 3646

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2361 Session of 1998


        INTRODUCED BY BARLEY, MARCH 11, 1998

        SENATE AMENDMENTS TO HOUSE AMENDMENTS, JUNE 2, 1998

                                  A SUPPLEMENT

     1  To the act of July 7, 1972 (P.L.743, No.176), entitled "An act
     2     providing for the establishment and operation of Lincoln
     3     University as an instrumentality of the Commonwealth to serve
     4     as a State-related institution in the higher education system
     5     of the Commonwealth; providing for change of name; providing
     6     for the composition of the board of trustees; terms of
     7     trustees, and the power and duties of such trustees;
     8     providing for preference to Pennsylvania residents in
     9     tuition; authorizing appropriations in amounts to be fixed
    10     annually by the General Assembly; providing for the auditing
    11     of accounts of expenditures from said appropriations;
    12     providing for public support and capital improvements;
    13     authorizing the issuance of bonds exempt from taxation within
    14     the Commonwealth; requiring the President to make an annual
    15     report of the operations of Lincoln University," making
    16     appropriations for carrying the same into effect; providing
    17     for a basis for payments of such appropriations; and
    18     providing a method of accounting for the funds appropriated
    19     and for certain fiscal information disclosure.

    20     The General Assembly of the Commonwealth of Pennsylvania
    21  hereby enacts as follows:
    22     Section 1.  The following sums, or as much thereof as may be   <--
    23  necessary, are hereby appropriated to the Trustees of Lincoln
    24  University, Chester County, for the fiscal year July 1, 1998, to
    25  June 30, 1999, for the purposes and in the amounts as shown:
    26     (1)  For educational and general expenses......   $10,389,000

     1     (2)  To enhance the recruitment and retention
     2  of disadvantaged students.........................       338,000
     3     (3)  For the International Affairs Institute...       305,000
     4     SECTION 1.  THE GENERAL ASSEMBLY HEREBY DECLARES THAT THE      <--
     5  PURPOSE OF THIS ACT IS TO PROVIDE SUPPORT FOR LINCOLN UNIVERSITY
     6  AND TO ENSURE THE PRUDENT AND SOUND FISCAL MANAGEMENT OF LINCOLN
     7  UNIVERSITY AND THE FUTURE VIABILITY OF LINCOLN UNIVERSITY'S
     8  EDUCATIONAL MISSION TO ITS STUDENTS.
     9     THE GENERAL ASSEMBLY TAKES NOTICE OF THE CRITICAL FINDINGS
    10  MADE BY THE AUDITOR GENERAL IN A REPORT OF THE BOOKS AND RECORDS
    11  OF LINCOLN UNIVERSITY IN 1990, THAT THE BOARD OF TRUSTEES AND
    12  UNIVERSITY OFFICIALS HAVE ON SEVERAL OCCASIONS FAILED TO
    13  EXERCISE CONTROL OVER THE PURCHASING AND PROCUREMENT PRACTICES,
    14  AND THAT ON SEVERAL OCCASIONS THE BOARD OF TRUSTEES AND
    15  UNIVERSITY OFFICIALS HAVE FAILED TO ENFORCE AND COMPLY WITH
    16  EXISTING UNIVERSITY PROCUREMENT GUIDELINES INTENDED TO PREVENT
    17  THE MISAPPROPRIATION OF PUBLIC FUNDS. AS SUCH, SERIOUS QUESTIONS
    18  CONCERNING THE MANAGEMENT OF THE UNIVERSITY'S CAPITAL EXPENSES
    19  SINCE 1993 CONTINUE TO EXIST AS A RESULT OF THE BOARD OF
    20  TRUSTEES AND THE PRESIDENT'S FAILURE TO ADOPT AND ENFORCE
    21  MEASURES DESIGNED TO ENSURE PRUDENT FISCAL MANAGEMENT, SUCH AS
    22  THE ADOPTION OF A CAPITAL BUDGET, THE ENFORCEMENT OF COMPETITIVE
    23  BIDDING PROCEDURES AND ADHERENCE TO PAYMENT PROTOCOLS.
    24     SECTION 2.  THE FOLLOWING SUMS, OR AS MUCH THEREOF AS MAY BE
    25  NECESSARY, ARE HEREBY APPROPRIATED TO THE TRUSTEES OF LINCOLN
    26  UNIVERSITY, CHESTER COUNTY, FOR FISCAL YEAR JULY 1, 1998, TO
    27  JUNE 30, 1999, FOR THE PURPOSES AND IN THE AMOUNTS AS SHOWN:
    28     (1)  FOR EDUCATIONAL AND GENERAL EXPENSES......   $10,139,000
    29     (2)  FOR THE INTERNATIONAL AFFAIRS INSTITUTE...      $305,000
    30     (3)  TO ENHANCE THE RECRUITMENT AND RETENTION
    19980H2361B3646                  - 2 -

     1  OF DISADVANTAGED STUDENTS.........................      $338,000
     2     (4)  FOR STUDENT EDUCATION INSTRUCTION
     3  ASSISTANCE, INCLUDING COMPUTER TECHNOLOGY
     4  ENHANCEMENT AND RESEARCH LIBRARY MATERIAL
     5  ACQUISITION, TO BE ADMINISTERED BY A THREE-PERSON
     6  COMMITTEE, ONE MEMBER APPOINTED BY THE TRUSTEES OF
     7  LINCOLN UNIVERSITY, ONE MEMBER APPOINTED BY THE
     8  STUDENT GOVERNING BODY AND ONE MEMBER APPOINTED BY
     9  THE UNIVERSITY FACULTY MEMBER ASSOCIATION.........      $250,000
    10     SECTION 3.  PAYMENTS MADE TO LINCOLN UNIVERSITY ON ACCOUNT OF
    11  THE APPROPRIATIONS PROVIDED UNDER SECTION 2(1) SHALL BE MADE BY
    12  THE SECRETARY OF EDUCATION IN THREE EQUAL PAYMENTS IN THE MANNER
    13  DESCRIBED BELOW:
    14     (1)  THE SECRETARY OF EDUCATION SHALL NOT RELEASE THE FIRST
    15  PAYMENT UNTIL THE TRUSTEES OF LINCOLN UNIVERSITY AGREE IN
    16  WRITING TO THE FOLLOWING:
    17     (I)  THAT THE CHAIRMAN OF THE TRUSTEES OF LINCOLN UNIVERSITY
    18  SHALL, UPON THE REQUEST OF THE MAJORITY OR MINORITY CHAIRMAN OF
    19  THE APPROPRIATIONS COMMITTEE OF THE SENATE OR THE MAJORITY OR
    20  MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE
    21  OF REPRESENTATIVES, PROVIDE FULL, COMPLETE AND ACCURATE
    22  DOCUMENTATION OF ANY FINANCIAL TRANSACTION, OR ANY OTHER
    23  INFORMATION THAT MAY BE REQUESTED.
    24     (II)  THAT THE TRUSTEES OF LINCOLN UNIVERSITY WILL CONSIDER
    25  AND ADOPT NEW POLICIES INTENDED TO PROVIDE GREATER FISCAL
    26  ACCOUNTABILITY AND SOUND MANAGEMENT, INCLUDING, BUT NOT LIMITED
    27  TO, ADOPTING AN ANNUAL CAPITAL BUDGET ITEMIZING ALL CONSTRUCTION
    28  IMPROVEMENT PROJECTS, FURNITURE AND EQUIPMENT ACQUISITION, AND
    29  ALL OTHER NONREOCCURRING, NONEMERGENCY EXPENSES RELATED TO THE
    30  PHYSICAL INFRASTRUCTURE OF THE UNIVERSITY; ADOPTING AND ADHERING
    19980H2361B3646                  - 3 -

     1  TO COMPETITIVE BIDDING GUIDELINES THAT WOULD BE APPLICABLE TO
     2  ALL NONEMERGENCY UNIVERSITY CONTRACTS INVOLVING SIMILAR
     3  SERVICES, IDENTICAL LOCATIONS OR THE SAME CONTRACTOR, REGARDLESS
     4  OF THE DATE OF THE CONTRACT, THAT MAY IN THE AGGREGATE EXCEED
     5  $5,000; REQUIRING THE SUBMISSION OF PURCHASE REQUISITIONS BEFORE
     6  THE COMPLETION OF PURCHASE ORDERS; REQUIRING THE COMPLETION OF
     7  PURCHASE ORDERS PRIOR TO THE INITIATION OF THE CONTRACT WORK;
     8  AND MAINTAINING THE APPROPRIATE RECORDS FOR ALL CONTRACTED
     9  SERVICES.
    10     (2)  THE SECRETARY OF EDUCATION SHALL NOT RELEASE THE SECOND
    11  PAYMENT UNTIL THE TRUSTEES OF LINCOLN UNIVERSITY AGREE TO
    12  COMMISSION AN INDEPENDENT FORENSIC AUDIT, TO BE COMPLETED AT
    13  UNIVERSITY EXPENSE, AND SPECIFICALLY STRUCTURED AND DESIGNED TO
    14  IDENTIFY ANY FRAUDULENT OR IMPROPER FINANCIAL TRANSACTION
    15  INVOLVING UNIVERSITY CONTRACTS SINCE 1993. THE AUDIT SHALL BE
    16  CONDUCTED BY AN ACCOUNTING FIRM SELECTED BY AND UNDER THE
    17  DIRECTION OF THE AUDITOR GENERAL OF THE COMMONWEALTH. THE
    18  AUDITOR GENERAL SHALL HAVE THE AUTHORITY TO COMPEL THE
    19  PRODUCTION OF DOCUMENTS OR THE TESTIMONY OF ANY PERSON THAT MAY
    20  BE RELATIVE TO THE COMPLETION OF THE AUDIT.
    21     (3)  THE SECRETARY OF EDUCATION SHALL NOT RELEASE THE THIRD
    22  PAYMENT, UNTIL SUCH TIME AS THE TRUSTEES OF LINCOLN UNIVERSITY
    23  COMPLETE AND SUBMIT TO THE SECRETARY OF EDUCATION AND THE
    24  MAJORITY AND MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE
    25  OF THE SENATE AND THE MAJORITY AND MINORITY CHAIRMAN OF THE
    26  APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES THE
    27  INDEPENDENT FORENSIC AUDIT, AND AGREE IN WRITING TO ADOPT AND
    28  ADHERE TO THE RECOMMENDATIONS INCLUDED IN THE COMPLETED AUDIT.
    29     Section 2 4.  Payments to Lincoln University on account of     <--
    30  the appropriations for the items provided in section 1 2 shall    <--
    19980H2361B3646                  - 4 -

     1  be made on the basis of costs during the fiscal year.
     2     Section 3 5.  (a)  Payments EXCEPT AS PROVIDED IN SECTION 3,   <--
     3  PAYMENTS to Lincoln University of the appropriations provided in
     4  section 1 2 shall be made monthly during the fiscal year.         <--
     5     (b)  Such monthly payments shall be made in accordance with
     6  the provisions of section 2 4 on the basis of estimated costs.    <--
     7  The estimate of costs shall be submitted by Lincoln University
     8  to the Secretary of Education, the General Assembly and the
     9  State Treasurer not later than 30 days prior to the date on
    10  which such payment is to be made.
    11     Section 4 6.  (a)  Lincoln University shall apply the moneys   <--
    12  appropriated by this act only for such purposes as are permitted
    13  in this act and shall at all times maintain proper records
    14  showing the application of such moneys. Not later than 120 days
    15  after the close of the fiscal year to which this act relates,
    16  Lincoln University shall file, with the Secretary of Education,
    17  the General Assembly and the Auditor General of the
    18  Commonwealth, a statement setting forth the amounts and purposes
    19  of all expenditures made from moneys appropriated by this act
    20  and costs, as provided in section 2, used as a basis for receipt
    21  of any appropriation during said fiscal year.
    22     (b)  Such statement of expenditures and costs shall be
    23  reviewed by the Auditor General of the Commonwealth, and he
    24  shall have the right, in respect to the moneys appropriated by
    25  this act, to audit and disallow expenditures made for purposes
    26  not permitted by this act and to cause such sums to be recovered
    27  and paid by Lincoln University to the State Treasurer. In
    28  respect to expenditures made by the university from moneys other
    29  than those appropriated by this act, the Auditor General shall
    30  have the right to review only, and he shall file annually with
    19980H2361B3646                  - 5 -

     1  the General Assembly such information concerning said
     2  expenditures as the General Assembly or any of its committees
     3  may require.
     4     Section 5 7.  A report shall be submitted to the Governor and  <--
     5  the Appropriations and Education Committees of the Senate and
     6  House of Representatives and shall include data for all
     7  programs. The report, to be submitted prior to September 1,
     8  1999, shall cover the 12-month period beginning with the summer
     9  term 1998 and shall include:
    10     (1)  The following counts and distributions for each term
    11  during the period:
    12     (i)  The definitions and numbers of faculty members employed
    13  full time, of faculty members employed part time, of full-time
    14  students enrolled in graduate courses, of full-time students
    15  enrolled in undergraduate courses, of part-time students
    16  enrolled in graduate courses and of part-time students enrolled
    17  in undergraduate courses.
    18     (ii)  The total numbers of undergraduate student credit
    19  hours, divided into lower division and upper division course
    20  levels, and of graduate student credit hours, divided into three
    21  course levels--master's, first professional and doctoral.
    22     (iii)  The number of different courses scheduled by level of
    23  instruction and the number of sections of individual instruction
    24  scheduled by level of instruction, each further subdivided by
    25  two-digit Classification of Instructional Program (CIP)
    26  categories of instructional programs of higher education as
    27  defined by the National Center for Education Statistics, United
    28  States Department of Education.
    29     (iv)  The number of terms scheduled and the dates thereof.
    30     (2)  For the summer term and the following academic year in
    19980H2361B3646                  - 6 -

     1  total and for each two-digit CIP program category, a
     2  classification of faculty members or other professional
     3  employees by title, including: professor, associate professor,
     4  assistant professor, instructor, lecturer, research associate,
     5  librarian and academic administrator; faculty members or other
     6  professional employees under each title to be subdivided by type
     7  of assignment: teaching and nonteaching; and each such set of
     8  faculty members or other professional employees to be further
     9  subdivided by type of employment: full-time or part-time; and
    10  the following aggregates for each such subdivided
    11  classification:
    12     (i)  The number of faculty and other professional employees
    13  and their full-time equivalence in instructional and
    14  noninstructional functions.
    15     (ii)  The sum of credits assigned to undergraduate classroom
    16  courses and the sum of credits assigned to graduate classroom
    17  courses taught, divided into lower division, upper division,
    18  master's, first professional and doctoral course levels.
    19     (iii)  The sum of credits assigned to undergraduate
    20  individual instruction courses and the sum of credits assigned
    21  to graduate individual instruction courses taught, divided into
    22  lower division, upper division, master's, first professional and
    23  doctoral course levels.
    24     (iv)  The sum of undergraduate classroom student credit hours
    25  and the sum of graduate classroom student credit hours
    26  generated, divided into lower division, upper division,
    27  master's, first professional and doctoral course levels.
    28     (v)  The sum of undergraduate individual instruction student
    29  credit hours and the sum of graduate individual instruction
    30  student credit hours generated, divided into lower division,
    19980H2361B3646                  - 7 -

     1  upper division, master's, first professional and doctoral course
     2  levels.
     3     (vi)  The total salary paid for instructional functions and
     4  for noninstructional functions and the amount of this salary
     5  paid for each of these functions from university funds, Federal
     6  funds and other funds.
     7     (3)  For each term of the period covered for each faculty
     8  member employed full time identified by two-digit CIP program
     9  category and title, the report shall contain an analysis of the
    10  average hours per week spent in university-related activities,
    11  stating specifically hours spent in undergraduate classroom
    12  contact and graduate classroom contact, hours spent in
    13  preparation, hours spent in research and hours spent in public
    14  service.
    15     Section 6 8.  In addition to the requirements in section 5 7   <--
    16  relative to this appropriation, the report covering the 12-month
    17  period beginning with the summer term 1998 shall include for all
    18  programs of the university:
    19     (1)  Minimum number of credits required for a baccalaureate
    20  degree and for a master's degree.
    21     (2)  Number of bachelor's degrees, master's degrees, first
    22  professional degrees and doctoral degrees awarded in 1994, 1995,
    23  1996, 1997, 1998 and estimated 1999.
    24     Section 7 9.  (a)  The following words and phrases when used   <--
    25  in this section shall have the meanings given to them in this
    26  subsection unless the context clearly indicates otherwise:
    27     "Academic and administrative support units."  Any
    28  organizational entity, as defined in the organizational manual
    29  of the university, that reports directly to the president of the
    30  university, chief academic officer or vice president, including
    19980H2361B3646                  - 8 -

     1  the office of the president, chief academic officer and vice
     2  president.
     3     "Expenditures."  Disbursements of State appropriations,
     4  tuition and fees supporting educational and general categories
     5  as defined in the Higher Education Finance Manual, Department of
     6  Health, Education and Welfare, 1975, or disbursement, supported
     7  by State appropriations, tuition or fees, to support a defined
     8  project or program under subsection (b)(3).
     9     "Revenue."  All State appropriations and tuition and fees.
    10     (b)  Lincoln University shall disclose the following:
    11     (1)  Revenue and expenditure budgets of the university's
    12  academic and administrative support units for the current fiscal
    13  year.
    14     (2)  The actual revenue and expenditures for the prior year
    15  in the same format as the information reported under paragraph
    16  (1).
    17     (3)  For any defined project or program which is the subject
    18  of a specific line item appropriation from the General Fund, the
    19  university shall disclose the following:
    20     (i)  Revenue and expenditure budgets of the defined program
    21  or project for the current fiscal year.
    22     (ii)  The actual revenue and expenditures of the defined
    23  program or project for the prior year in the same format as the
    24  information reported under paragraph (1).
    25     (4)  The revenue and expenditures of any auxiliary enterprise
    26  which is directly funded in whole or in part by tuition or a
    27  State appropriation for the current fiscal year.
    28     (c)  The university shall provide the following additional
    29  information for the prior fiscal year for each academic or
    30  administrative support unit, for each defined project or program
    19980H2361B3646                  - 9 -

     1  and for any auxiliary enterprise:
     2     (1)  The number of employees by academic rank and by
     3  classification the number of administrators, staff, clerical and
     4  technical service employees.
     5     (2)  Median and mean salary by academic rank and by
     6  classification the median and mean salaries of administrators,
     7  staff, clerical and technical service employees.
     8     (3)  Nonsalary compensation as a percentage of salary.
     9  Nonsalary compensation shall include, but not be limited to,
    10  medical benefits, life insurance benefits, pension benefits,
    11  leave benefits, employer Social Security payments and workers'
    12  compensation benefits.
    13     (4)  A statement of the university's retirement policies.
    14     (5)  A policy statement relating to a reduction of tuition
    15  for employees' family members.
    16     (6)  A list of purchase of service contracts which exceed
    17  $1,000 by category of service, including, but not limited to,
    18  legal, instructional, management, accounting, architecture,
    19  public relations and maintenance. The list shall contain the
    20  name and address of the contractor, a statement of the nature of
    21  the duties of the contractor and the academic and administrative
    22  support unit for which the duties are performed. If a purchase
    23  of service contract exceeds 10% of the total aggregate
    24  expenditure of the contract category per academic or
    25  administrative support unit, then the contracted amount shall
    26  also be listed.
    27     (7)  A list of purchase of goods contracts which exceed
    28  $1,000. The list shall contain the name and address of the
    29  contractor and a list of the goods purchased and the academic or
    30  administrative support unit for which such goods were
    19980H2361B3646                 - 10 -

     1  contracted. If a purchase of goods contract exceeds 10% of the
     2  total aggregate expenditure per academic or administrative
     3  support unit, then the contracted amount shall also be listed.
     4     (8)  A list by academic or administrative support unit in the
     5  aggregate, of the expenses of travel, subsistence and lodging,
     6  whether provided or reimbursed.
     7     (d)  The university shall submit a report of the information
     8  under subsections (b) and (c) to the Education Committee of the
     9  Senate and the Appropriations Committee of the Senate and the
    10  Education Committee of the House of Representatives and the
    11  Appropriations Committee of the House of Representatives. In
    12  addition, the university shall submit a copy of the report to
    13  each of the following:
    14     (1)  Governor's Office.
    15     (2)  Secretary of Education.
    16     (3)  State Treasurer.
    17     (4)  Auditor General.
    18     (5)  Joint State Government Commission.
    19  Each such institution shall maintain a copy of the report in the
    20  institution's library and shall submit a copy to each of the
    21  four State regional library resource centers.
    22     (e)  A university's report required to be submitted under
    23  this section shall be submitted within 180 days of the close of
    24  the university's current fiscal year.
    25     (f)  The Joint State Government Commission shall develop a
    26  statistical comparison analysis recognizing differences in
    27  missions from the reports made under this section. A majority of
    28  the members of the commission may request additional
    29  documentation, except for salary or identity of individuals,
    30  necessary to complete the comparative analysis. The comparison
    19980H2361B3646                 - 11 -

     1  shall be provided to the Education Committee of the Senate and
     2  the Appropriations Committee of the Senate and the Education
     3  Committee of the House of Representatives and the Appropriations
     4  Committee of the House of Representatives and the four State
     5  regional libraries.
     6     (g)  The university shall make a copy of the minutes of each
     7  public meeting of the institution's board of trustees, as well
     8  as a copy of the institution's integrated postsecondary
     9  education data systems report, available for public inspection
    10  in the institution's library.
    11     Section 8 10.  The Lincoln University shall provide full,      <--
    12  complete and accurate information as may be required by the
    13  Department of Education or the majority chairman or the minority
    14  chairman of the Appropriations Committee of the Senate or the
    15  majority chairman or the minority chairman of the Appropriations
    16  Committee of the House of Representatives.
    17     Section 9 11.  Lincoln University shall report its revenues    <--
    18  and expenditures and present its financial statements required
    19  under the provisions of this act in accordance with generally
    20  accepted accounting principles and procedures for educational
    21  institutions as set forth in the "Higher Education Finance
    22  Manual, United States Department of Health, Education and
    23  Welfare (1975)" and the "Commonwealth of Pennsylvania Budget
    24  Instructions for the State System of Higher Education, State-
    25  Related Universities and Non-State-Related Colleges and
    26  Universities."
    27     Section 10 12.  This act shall take effect July 1, 1998, or    <--
    28  immediately, whichever is later.


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