The U.S. Senate is requesting all documents related to the investigation into former President Benjamin Ladner's expenses, as well as information about the $3.75 million severance package the board awarded Ladner following his resignation.
Chairman of the Senate Finance Committee Charles E. Grassley (R-Iowa) sent a letter to AU board of trustees chair Thomas A. Gottschalk questioning the whether it was "proper to provide nearly $3.75 million in payments to an individual who has reportedly failed to pay taxes on nearly $400,000 in income ... after the board terminated his employment.
"Such actions raise significant questions about what other things a charity that has such a cavalier attitude towards the tax laws might be doing, especially in light of escalating tuition expenses," Grassley wrote in his letter.
Because AU is considered a non-profit organization, it is subject to special tax exemptions, including exemption from income tax and the ability to receive tax-deductible donations. The Finance Committee has been reviewing charities and reform of charities since April.
"It appears the AU board could be a poster child for why review and reform are necessary," Grassley wrote.
Student Government President Kyle Taylor launched an online petition last week, which allows students to lobby members of Congress about the issue. Taylor is seeking action from lawmakers to restructure the board and take action against Ladner.
"We must take action," Taylor wrote in a letter to the AU community. "It is time that we petition Congress, which chartered the university and still has direct control over AU and the Board of Trustees. The board did not want to fire Ladner and now they want to make sure he leaves with a golden parachute."
The petition is available online through the SG website at http://www.ausg.org.
Read Sen. Grassley's letter at http://finance.senate.gov/press/Gpress/2005/prg102805.pdf
