DSU saddled with debt after releasing president

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Dickinson State University has unsettled debt to deal with after releasing its president last year for inflating enrollment figures.

The DSU men’s basketball initiative fund has a deficit balance of $48,469 due to a “good-will” exchange trip to China, according to the North Dakota University System’s semi-annual budget report. The report was reviewed Friday and unanimously approved by the North Dakota State Board of Higher Education at the State Capitol in Bismarck.

“This trip was to be paid with philanthropic funds being raised by former DSU President Richard McCallum,” said Robin Putnam, SBHE director of financial reporting.

McCallum’s unanticipated dismissal impacted his ability to raise money for the trip to China, said Amy Magstadt, DSU public relations manager. His intention was to raise the money solely in the U.S., she added.

“The manner in which this issue is going to be addressed has not been decided,” she said. “We anticipate a decision before the conclusion of the 2012 fiscal year, which is June 30 of 2012.”

McCallum, who was named president of DSU in 2008, was asked to resign from his position in August. He refused and demanded a hearing to prove whether his dismissal was justified.

The SBHE unanimously voted to fire McCallum on Dec. 15 after Administrative Law Judge Bonnie Fetch gave her recommendation Dec. 10. The decision was easy to make, Fetch said.

DSU also spent approximately $70,000 in attorney, administrative law judge and travel costs related to McCallum’s hearing, according to the report. Additional expenses are expected.

DSU President D.C. Coston, who was interim president while McCallum received pay with leave from August to his dismissal by the SBHE, received $103,000 in presidential compensation and related fringe benefits that were not included in the 2012 fiscal year.

“(DSU) had to pay two presidents at that time,” said Laura Glatt, SBHE vice chancellor for administrative affairs. “Employees have the right to continue to be paid until their termination is final.”

DSU is held responsible for set expenditures related to

McCallum’s removal, Magstadt said. Those costs, which do not include the trip to China, will have to be addressed through internal reallocations.

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