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ARTICLE · 19 OCTOBER 2016

Monitoring Board Expenses

The Governor's action followed the investigative report by a Charleston newspaper that, over the last several years, the board had incurred over $560,000 in food, beverages and hotel expenses.

United StatesCorporate/Commercial Law

In the current corporate responsibility environment, board members should be particularly sensitive to the propriety (both actual and perceived) of their individual and collective spending and reimbursement practices. This is important, in particular, following the high profile action by South Carolina Governor Nikki Haley to request the trustees of the Medical University of South Carolina to repay funds previously reimbursed by the University for hotel, dining and similar meeting-related expenses. While the South Carolina focus was on state-owned facilities, the same concept could easily be applied by state charity officials to nonprofit health systems.

The Governor’s action followed the investigative report by a Charleston newspaper that, over the last several years, the board had incurred over $560,000 in food, beverages and hotel expenses. The Medical University’s board chair ordered an investigation of the board’s spending practices and the state inspector

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