Regents still negotiating Deloitte contract

IOWA CITY - Two months after deciding to continue working with Deloitte Consulting LLC on its suggestions to improve sourcing and procurement practices at Iowa's public universities, the state Board of Regents still has not agreed on a new contract with the firm.

Laura McLeran, University of Iowa assistant vice president for external relations, told UI staff members Wednesday that Deloitte proposed a new contract to the board, which would have included a cost for the additional services.

'The contract piece that was presented was not agreeable to the board,” McLeran said.

And so details still are being ironed out, she said.

To date, the Board of Regents has agreed to pay Deloitte $3.3 million for its help conducting a sweeping efficiency review of the three state universities. That total doesn't include expenses, which the board in August voted to begin monitoring more closely after The Gazette reported it wasn't collecting receipts for travel, food and lodging reimbursements submitted by Deloitte representatives.

Although the board decided to begin collecting receipts from Deloitte in August, an amendment to the original contract was entered into only a week ago - on Oct. 1. And the amendment is retroactive only to Aug. 11, meaning the board isn't requiring receipts for the $220,273 in expenses that were billed to UI, Iowa State University, and University of Northern Iowa before that date.

To date, the Board of Regents Office still hasn't received receipts - but rather more broad invoices that show, for example, that Deloitte expensed a total of $146,384 in the second phase of its review through Aug. 10.

Aimee Clayton, associate counsel for the board,, said this week that Deloitte is compiling the receipts and supporting documentation.

'Deloitte's accounting department has been very cooperative and has been working with the board office to gather data in a format mutually agreed to,” Clayton said in an email to The Gazette.

According to the contract amendment, the board is only requiring receipts for airfare, rental cars, taxi or shuttle services, lodging and printing. It is not requiring receipts for meals, parking and telecommunication charges - although the amendment does include more strict guidelines.

Deloitte representatives, for example, cannot expense more than $8 for breakfast, $12 for lunch and $20 for dinner, according to the amended contract.

'Alcohol is not a reimbursable expense,” according to the contract, which also requires airfare be purchased in coach.

Deloitte representatives are back in Iowa City Thursday for the second of three public forums planned on the university campuses to discuss the eight most recent efficiency opportunities presented to the board.

Those efficiencies - in finance, human resources, information technology and facilities - are projected to save tens of millions of dollars and cut as many as 250 jobs over time.

The first public forum at UNI was held Monday, and the ISU forum is scheduled for next Monday.