To the STRS Board: CORE RESOLUTION SUPPORTING DR. LEONE’S MOTION OF 10-19-2007

CONCERNED OHIO RETIRED EDUCATORS (CORE)

RESOLUTION SUPPORTING DR. LEONE’S MOTION OF 10-19-2007

TO: STRS Board Members

November 2007

On October 19, 2007, Dr. Dennis Leone made a motion (which John Lazares seconded) for language to require the enforcement of existing STRS Board policies that are designed to restrict the ability of the STRS Executive Director to establish—on his own—STRS employee compensation and fringe benefits without formal Board approval. The motion was tabled.

CORE urges the STRS Board to approve the motion at its November meeting for the following reasons:

1. There is a serious conflict of at least five policies of the Executive Director’s authority. Three policies require Board approval and two policies permit the Executive Director to act then request Board approval. There may be legal and/or ethical issues due to the conflicting policies.

2. The five policies in question need to be reviewed as soon as possible by the STRS Internal Auditor and the Attorney General’s Counselor for legal and ethical issues and problems as well as the date of STRS Board approval for each of the policies and the history of how each of the policies was developed. Of concern, is the possibility that Ohio Revised Code has been violated due to the conflicting policies. The STRS Internal Auditor and the Attorney General’s Counselor must present their findings to the STRS Board in a timely fashion along with recommendations to resolve the conflict of the policies and any legal or ethical issues.

3. An Executive Director’s administrative duties are governed by Board policy. It is inconceivable that the STRS Board would be able in good conscience to approve a contract for an Executive Director while there are conflicting Board policies. Therefore, the STRS Board must act quickly to have the legal and ethical questions answered and resolved prior to offering any Executive Director Contract in the future.

CORE again urges the STRS Board to resolve this conflict of policies affecting the Executive Director’s Administrative duties promptly. Such action ensures that STRS administration operates legally, ethically and effectively.

Respectfully,

David Parshall, CORE President
Mary Ellen Angeletti, CORE Vice President

XC: STRS Internal Auditor

.......Attorney General’s Counselor, John Patterson