By Shannon Blosser

October 26, 2005

WELDON — Halifax Community College Board of Trustees approved a new contract for college President Ted Gasper in 2001 without knowledge of significant contract amendments, according to an investigative audit released Tuesday looking into allegations of misconduct by Gasper.

The audit also found evidence of more than $15,000 in questionable payments to Gasper for fringe benefits and travel, and recommended that the board of trustees seek repayment of any funds made without adequate documentation.

In addition, the audit found that Gasper leased college property without state approval and that his executive secretary deleted files from her computer after the school received notice of the audit investigation, a violation of state law.

The audit report is part of an ongoing investigation into more than 70 allegations of misconduct by Gasper that also includes discontinuing school programs without approval and conducting political activities while using school resources. Gasper and his assistant, Faye Pepper, are on paid leave while a special investigative committee looks into the allegation. The committee has until Nov. 7 to submit its recommendations to the North Carolina Community College System’s offices.

“The Halifax Community College Board of Trustees is deeply concerned by the findings presented by the Office of the State Auditor,” Dr. Stanley Edwards, acting Halifax Community College Board of Trustees Chairman, said in the report. “We appreciate the opportunity to respond to these issues and are committed to ensuring that the recommendations presented in this response will be carried out. We will continue to seek guidance from the North Carolina Community College System Office in matters pertaining to the findings and recommendations.”

According to the audit report, board of trustees members approved Gasper’s new contract in 2001, which extended his term from two years to four, without knowing many of the details in the contract. Some of those details include an annual one-year extension to the contract, a $375,000 contract buyout if Gasper is terminated without cause, and changes to his insurance and fringe benefits. The report says Gasper never produced the contract for board members to review.

“Although, the [b]oard approved the [p]resident’s second employment contract, the minutes from open and closed sessions do not reflect the [b]oard’s comprehension of the changes to the [p]resident’s contract,” the audit states. “There was no discussion of the changes in the contract and resulting consequences of such changes. The [b]oard had a specific duty to elect the [c]ollege [p]resident and to set the terms of his employment.”

The audit also found that the school paid $12,755 in insurance-related fringe benefits without adequate documentation. That includes $986 in insurance-related reimbursements under the terms of Gasper’s first contract and $11,769 under the terms of the second contract. Gasper’s second contract included language that said premiums for insurance coverage were to be paid to him.

The only supporting document the audit found, from September 1999 to April 2002, was a copy of the fringe benefit clause in the original contract, a handwritten calculation of the amount paid, and a requisition with the words “payment of insurance per contract.” There was no documentation found after April 2002.

“We recommend the [b]oard obtain legal advice to determine if these payments were allowable and to request repayment from [Gasper] for any payments for which no supporting documentation was provided,” the audit says.

Besides the insurance payments, auditors found what they considered to be $3,050 in questionable travel expenses paid to Gasper. This includes $437 in reimbursements for meals and lodging that were unnecessary, including overnight trips to Raleigh for a meeting of North Carolina Community College Association of Presidents that lasted two hours. There was also $1,672 in reimbursements for travel expenses where no evidence of college business occurred.

According to the audit, the school also reimbursed Gasper for more than $940 for travel related to political activities. Auditors found no reason to suggest that the meetings provided a direct benefit to the college. Gasper has been accused of organizing political events for former U.S. Rep. Frank Ballance while using school resources.

Auditors have recommended that Gasper repay the college for the questionable travel reimbursements.

The audit also found two instances in which Gasper, his executive secretary, and the board of trustees were careless with state law. In the first instance, Gasper’s secretary deleted information from her computer a day after the auditor’s office issued a “cease and desist” letter prohibiting information and files from being deleted. The secretary said that she had too many directories on her computer and that she had to delete some of them for her computer to run effectively.

In the second case, Gasper entered into a lease arrangement with U.S. Rep. G.K. Butterfield to lease space. This action was completed before receiving approval from the State Board of Community Colleges, according to the audit, a violation of state law. The state board became aware of the lease after Butterfield had occupied the space.

“In our opinion, the events described above suggest a cavalier indifference for state laws pertaining to [c]ollege administration on the part of the [p]resident as well as the Board of Trustees,” the audit states.

Shannon Blosser (sblosser@popecenter.org) is a staff writer with the John W. Pope Center for Higher Education Policy in Chapel Hill.