ASUCLA board defines new, more focused role

ASUCLA board defines new, more focused role

Consultants warn of bankruptcy woes, recommend reforms

By Patrick Kerkstra

Daily Bruin Staff

ASUCLA’s board of directors has taken a microscope to the
students’ association since February, searching for the causes of
its severe financial and structural difficulties.

The board’s efforts uncovered numerous problems, and took
dramatic steps to correct them. They hired consultants and even
removed the organization’s leader for the past 14 years ­
Executive Director Jason Reed.

Although some have said the board’s steps were too hasty, others
maintain that the need for action is real.

The Alpha Partner consultants, hired to turn the association
around, have warned the board that unless necessary changes are
made, bankruptcy is likely.

If the association goes bankrupt, its functions ­ which
range from managing the student store and food services, to the
financial oversight of student government and media ­ would
probably be taken over by the university.

But to merely stay afloat is not enough for ASUCLA. The next few
months are critical to the organization’s long term success. If the
consultants can quickly convince lenders that ASUCLA is capable of
making a profit, the university could provide the association with
a much needed loan.

Despite these pressing circumstances, the student majority board
has focused the lens of reform on itself only in the last two
weeks.

Charles Mack and Douglas Drumwright, the consultants serving as
temporary co-executive directors, have targeted the board for
reform from the beginning. They are concerned that the board’s
guidance has been short-sighted and inconsistent, giving mixed
messages to a management already handicapped by increasing outside
competition and a weak Southern California economy.

The Alpha Partners advised the board to somehow insulate itself
from the concerns of student politics, and give management more
leeway to operate.

But on Tuesday, a temporary committee ruled out any changes in
the board’s composition, and instead chose to focus on clearly
defining its role.

"We want to get the system moving along so management doesn’t
feel hampered or constrained," said Dave Lowenstein, an
administrative representative on the board.

The consultants suggested that the board define specific powers
for itself, and give management more autonomy over the day-to-day
business of ASUCLA.

In a report titled, "What’s wrong with ASUCLA, anyway?" Alpha
Partners said that an end to the "start and stop pattern of
decision-making" at the board level is necessary for financial
success. Their suggestion is to focus the board primarily on long-
term projects.

The association’s current constitution says the board has, "full
control of all activities of the Associated Students directly or
indirectly involving business management."

Anne Pautler, the association’s marketing manager, said the
language, drafted over 60 years ago, is too vague.

"The wording (in the association’s constitution) is not at all
specific, and it has obviously been interpreted to mean a lot of
leeway and authority for the board," Pautler said.

To limit that leeway, and give management more freedom, the
special committee agreed to redefine the board’s role, giving the
board authority over budgets, the executive director and large,
expensive projects and contracts.

The temporary committee also targeted the possible redundancy of
the board’s other committees. After agreeing that the newly formed
executive committee should be permanent, the temporary committee
decided against forming a new communications committee. Board
members also agreed to form an ASUCLA committee to replace the
student store and food services committee.

An attorney will draft the proposed changes this week, Mack
said. The full board will vote on the changes at the end of the
month.

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