Museum board member rakes in about $75,000; other florists get $9,447

A museum board member who lives in Caddo, Texas was paid nearly $75,000 to craft lavish floral arrangements for university functions over the past 10 years. Local florists drummed up less than $10,000 in university business.

Most members of the MSU community didn’t get a whiff of the bouquets fashioned by Lola Pitzer because the flowers were on display at either off-campus events or at select occasions. While some of those gatherings were small, the bills for her services were not. Pitzer charged $873 to provide flowers at a Board of Regents dinner at Sikes House in August 2010. Her invoice to deck out Sikes House with Christmas flowers in 2007 came to $3,235.

Pitzer, who operates as Lola Hampton Creations, was paid from the University Activity Fund, a discretionary account controlled solely by MSU President Dr. Jesse Rogers. It is made up of donor funds that come entirely from the MSU Foundation.

The Wichitan obtained records and invoices of transactions with Pitzer through state Open Records statutes. Initially, the newspaper requested an accounting of money spent through the President’s Discretionary Account but was told by MSU that “no such title exists.” However, The Wichitan discovered a “President’s Office Discretionary Fund” listed within MSU Foundation filings provided to the Internal Revenue Service.

Pitzer was not hired under any type of contract. No competitive bids were sought for her work. Rogers said she was hired under “organized activity” rules. In financial documents, Pitzer’s services were listed as “Other Professional Services.”

“You don’t have to bid it out,” Rogers said. “It just has to be done for the best value of the university. The only thing we use her for is organized activities.”

Over the years, Pitzer supplied flowers to museum functions. Rogers said Pitzer’s hiring was not a conflict of interest and defends his action. Although Pitzer serves on the museum advisory board, Rogers said that entity doesn’t possess the authority to decide how museum funds are spent.

“The museum board is purely an advisory board,” he said. “They have no authority to set the budget. They’re there to counsel the director on activities and fundraisers and so forth. It’s purely a public relations advisory board.”

According to musuem meeting minutes, the board has historically set budgets for museum renovations, purchases of artwork, parties and the hiring of speakers and decorators. Rogers admitted that the board hired Pitzer to do work at the museum.

Still, Rogers said he sees no conflict of interest.

“I don’t think it fits the strict definition of a conflict of interest,” the president said.

Rogers said he considers Pitzer a friend and has been using her services ever since he became president in 2001. Rogers admitted he has personal relationships with many people hired to do work for the university.

“Certainly a lot of people we do business with we get to know and be friends with and you can’t help that.”

The Wichitan contacted Pitzer at her business Monday afternoon to request an interview. The florist said she knew an inquiry was being conducted into her services at MSU but tersely refused to comment and hung up the phone.

Pitzer catered flowers to eight events in 2007, eight in 2008, seven in 2009 and five in 2010.

In 2007:

$695 was spent for Professor Richard Ash’s reception at the museum.

$295 for a student reception at the museum.

$942 for a retirement reception and Legacy Walk.

$822 for a faculty party at the museum.

$480 for a Board of Regents dinner at the Sikes House.

$2,292 for a President’s Excellence Circle dinner in Clark Student Center.

$974 for the 40th anniversary museum dinner.

$3,235 for Christmas decorating at Sikes House.

In 2008:

$506 for a visiting artist event at the museum.

$995 for a Board of Regents dinner at Sikes House.

$592 for a Legacy Walk reception and women’s basketball reception at Sikes House.

$695 for a faculty/staff party at The Quad.

$539 for a Harvey reception at Sikes House.

$866 for a Board of Regents dinner at Sikes House.

$2,767 for a President’s Excellence Circle dinner.

$2,265 for a Christmas party at Sikes House.

In 2009:

$412 for the McCoy dedication.

$494 for a Board of Regents dinner in the Kiowa Room in Clark Student Center.

$610 for a faculty reception at the museum.

$784 for a faculty/staff party.

$415 for a Board of Regents dinner at Sikes House.

$3,043 for a President’s Excellence Circle dinner in Clark Student Center.

$3,908 for a Christmas party at the Harvey House.

In 2010:

$465 for a Board of Regents dinner.

$873 for a Board of Regents dinner at Sikes House.

$596 for a Board of Regents dinner at Sikes House.

$3,124 for a President’s Excellence Circle dinner in Clark Student Center.

$2,587 for Christmas open house at Sikes House.

Itemized expenditures from years prior to 2007 were unavailable. The documents had been destroyed in compliance with state records retention rules.

However, The Wichitan was able to obtain yearly totals from 2002 to 2006. The amounts for flowers from Pitzer were: $5,067 in 2002; $1,431 in 2003; $6,798 in 2004; $6,338 in 2005; and $7,156 in 2006.

According to Administrative Council minutes from 2007, discretionary spending is defined as “Those expenditures not directly related to the university educational, research, and public service mission.”

Pitzer’s work falls into this category.

Funds to pay Pitzer came directly from the MSU Foundation, which channeled money to the discretionary University Activity Fund. That fund is controlled by Rogers.

Rogers said no donors have specifically earmarked money for flowers.

The minutes also state that “Payment from gifts or from sponsored project funds shall be authorized only when the expenditure has been approved in writing by the donor or stipulated in the terms of the contract or grant.”

Otherwise, such spending “will be considered personal expenditures and become the responsibility of the person who incurred the expenditure.”

In this case, that would be Rogers.

Pitzer’s services were predominately used at dinners and parties. Her floral arrangements have pervaded President’s Excellence Circle (PEC) dinners. PEC members are donors who contribute $1,000 or more to MSU.

Rogers said flowers are important in creating the right atmosphere for the dinners and to show hospitality to donors.

“It’s a tradition. People really look forward to it,” he said, explaining that decorations are key in keeping donations flowing into university coffers.

“You can’t just write people letters. You have to build relationships with them. If you compare that to the good those donations do for the students and faculty, it is really not a big expenditure at all.”

The university occasionally bought floral arrangements from local florists, such as Shannon Arakelian, Lee’s Wholesale Floral, and Jameson’s Flowers. Altogether, MSU spent $9,447 with these vendors over a 10-year period, about 11 percent of the total funds spent on flowers.

“We use other people from time to time when she (Lola Pitzer) can’t get up here,” Rogers said.