Core Requirement 2.2 The institution has a governing board of at least five members that is the legal body with specific authority over the institution. The Board is an active policy-making body for the institution and is ultimately responsible for ensuring that the financial resources of the institution are adequate to provide a sound educational program. The board is not controlled by a minority of board members or by organizations or interests separate from it. Neither the presiding officer of the board nor the majority of other voting members of the board have contractual, employment, or personal or familial financial interest in the institution.

 

Judgment of the Off-Site Review Committee:

Non-Compliance

The institution has a governing board of at least five members that is the legal body with specific authority over the institution. The board is an active policy-making body for the institution and is ultimately responsible for ensuring that the financial resources of the institution are adequate to provide a sound educational program. The board is not controlled by a minority of board members or by organizations or interests separate from it. Neither the presiding officer of the board nor the majority of other voting members of the board have contractual, employment, or personal or familial financial interest in the institution.

A military institution authorized and operated by the federal government to award degrees has a public board in which neither the presiding officer nor a majority of the other members are civilian employees of the military or active/retired military. The board has broad and significant influence upon the institution's programs and operations, plays an active role in policy-making, and ensures that the financial resources of the institution are used to provide a sound educational program. The board is not controlled by a minority of board members or by organizations or interests separate from the board except as specified by the authorizing legislation. Neither the presiding officer of the board nor the majority of other voting board members have contractual, employment, or personal or familial financial interest in the institution. (Governing Board)

 

North Carolina law requires that the institution have at least a 13-member governing board; Craven has a 13-member Board of Trustees, as set forth in the bylaws. The members serve staggered terms and are appointed by different constituencies. By law, the Board of Trustees is the legal body with specific authority over the institution. A reading of selected monthly minutes of various board meetings reveals that the board is actively involved in setting policy for the institution and that it approves the budget and budget amendments for the institution. By law, the Board of Trustees is a body corporate and can only operate as an entity; individual members of the board cannot and do not make decisions on behalf of the institution. All meetings are public meetings. There is no evidence that the board is controlled by a minority of its members. Board minutes demonstrate that the board acts as a unit, upon careful consideration and review of recommendations from the president and/or a board committee.

North Carolina law prohibits from serving on the board an individual who has been employed full-time by the college within a period of five years or who is the spouse or child of a current college employee. The list of current board members reveals nothing about their employment or affiliation. It is, thus, impossible to determine whether any board member or a spouse or a child has contractual, employment, or personal ties to the institution. There is no documentation supporting the statement that "[n]one of the board members or the presiding officer of the board have contractual, employment, or personal or familial financial interest in the College …" There is no way to know whether board members have interests in the financial or other affairs of the college. Board members are required by North Carolina statute and by Executive Order to file an annual Statement of Economic Interest with the North Carolina Board of Ethics. However, the statement itself says that having a business relationship with the Board does not disqualify one from service on the Board. No minutes were provided to show that any Board member had recused him or herself from voting on matters in which they might have an economic or financial interest. No copies of the annual Statement of Economic Interest were provided. The On-Site Review Committee should confirm that no board member has a contractual, personal or familial financial interest in the institution.

 

The governing body of Craven Community College is the Board of Trustees that consists of 12 voting members and the President of the Craven Community College Student Council who serves in an ex-officio, non-voting capacity.

The employment/affiliation of each of the members of the Board of Trustees is as follows:

Gary H. Baldree Sr. (appointed by Governor Mike Easley)	Co-owner, Baldree's Tire
Donald K. Brinkley (Chair) (appointed by Craven County Board of Commissioners)	Vice President, East Carolina Bank
Linward E. Brown (appointed by Craven County Board of Education)	Self-employed general contractor
O.K. Gainey (appointed by Craven County Board of Education)	Retired high school principal
Donald A. Heath (appointed by Craven County Board of Education)	Farmer
Ronald X. Knight (appointed by Craven County Board of Education)	Technician, Embarq
Peter Mack, Jr. (appointed by Governor Mike Easley)	District Court Judge
Carol Mattocks (appointed by Craven County Board of Commissioners)	Not employed
Wendy P. Moeller, M.D. (appointed by Craven County Board of Commissioners)	Physician, East Carolina Internal Medicine
Daniel F. Pritchett (Vice-chair) (appointed by Governor Mike Easley)	Senior Vice President, First Citizens Bank
Earline Sills Williams (appointed by Governor Mike Easley)	Teacher, West Craven High School
Earl Wright (appointed by Craven County Board of Commissioners)	Sales Manager, Amerochem
Noelle Perry (ex-officio, non-voting)	Student Council President

As indicated in a letter from the Chairman of the Board of Trustees, no matters have been presented before the Board of Trustees that required any of the members to recuse him or herself from voting on matters in which they may have an economic or financial interest.

The Trustee Conflicts of Interest Policy is contained in Article II, Section 5, of the College bylaws. The Conflicts of Interest Policy specifically addresses college policy which prohibits members of the Board of Trustees from having any pecuniary interest in providing goods or services to the college; from receiving any gift or reward; from influencing any purchase or procurement by the college; from entering into any business transactions with the College; and from applying for or becoming an employee of the College (this includes spouses and children) while serving on the Board.

At its July 18, 2006 meeting, the Craven Community College Board of Trustees approved the Craven Community College Board of Trustees Conflict of Interest Disclosure Form. Disclosure Forms for each of the Board of Trustee members is included (click on names in table above to view each disclosure form).

As indicated by individual conflict of interest forms, four current members have indicated that they either work for or have family members who work for companies that may be expected to do business with the college over the next year. In no case has any of the four Board members, nor other Board members, been involved in College decisions regarding business transactions in any of these cases.

Each of the four individual cases is described below:

Dan Pritchett - Mr. Pritchett is Vice-Chair of the Board and is Senior Vice President with First Citizens Bank in New Bern. The college uses First Citizens as the local depositor for the State Treasurer's Office. First Citizens Bank has been specifically authorized by the State Treasurer's Office as the local depositor. No Board member, including Mr. Pritchett, has participated in decisions regarding local deposits.

Ronald Knight - Mr. Knight is employed by Embarq as a technician. Embarq provides the local telephone service to the college, and is the only provider of local service in our region. Information Technology Services, a state agency, is the provider of long distance service for the college. No board member, including Mr. Knight, has participated in decisions regarding college telephone service.

Carol Mattocks - Ms. Mattocks recently was appointed by the Craven County Commissioners to fill an unexpired term and assumed a position on the Board at the recent July 18, 2006 meeting. Ms. Mattocks has a familial interest in Jenkins Gas, the largest supplier of propane in Eastern North Carolina. The college has for many years purchased a small amount of propane yearly from Jenkins Gas for use in labs and maintenance. Since her recent appointment, the college is pursuing a natural gas alternative or purchasing from a different propane provider.

Gary Baldree - Mr. Baldree is a member of the Advisory Board for First Citizens Bank. The college uses First Citizens as the local depositor for the State Treasurer's Office. First Citizens Bank has been specifically authorized by the State Treasurer's Office as the local depositor. No Board member, including Mr. Baldree, has participated in decisions regarding local deposits.