Memorandum

To: Kirsten Franzen

Copy: Dr. Larry Skogen, Interim Chancellor
From: Murray G. Sagsveen, Chief of Staff
Subject: Notice of Intent to Dismiss for Cause
Date: November 10, 2014
This is notice, in accordance with paragraphs 2-5 of SBHE Policy 608.2, of my intent to
terminate your employment for cause.
Effectively immediately, you are on paid administrative leave. Your access to ndus.edu
email and to the NDUS digital files will be terminated. We will notify the Attorney
General to terminate your Special Assistant Attorney General appointment. You shall
surrender your digital and other keys to NDUS buildings. You may have accompanied
access to the Horizon building and offices on the 10th floor of the capitol during working
hours this week to remove personal items; you may not have unaccompanied access to
the Horizon building or the 10th floor of the capitol during nonworking hours.
You have the right in the next five calendar days, in accordance with paragraph 3 of
SBHE Policy 608.2, to respond in writing and request a pre-termination review. If you
request a pre-termination review, I shall consider any documents that you submit to me
prior to 1:00 p.m. on November 17, 2014.
If you do not request a pre-termination review, I will submit my recommendation to the
Chancellor after five calendar days. If you submit documents for a pre-termination
review, I will submit my recommendation to the chancellor after an opportunity to review
the documents you submit.
This is also notice, in accordance with paragraph 1 of SBHE Policy 608.2, to terminate
your employment without cause effective May 11, 2015, if the Chancellor terminates
your employment, if you appeal his decision in accordance with paragraph 4 of SBHE
Policy 608.2, and if you prevail on appeal.
The reasons for this notice follow.
1. Failure to perform your duties as a Chief Compliance Office. Chancellor Skogen
assigned you as the Chief Compliance Officer more than one year ago. When he hired
me in November 2013, my responsibilities included supervision of you and the
compliance program. We have approved your attendance at compliance-related
continuing education programs at a significant expense to the NDUS. However, he and I
agree that you have made no visible progress to establish a functioning compliance
program.

2. Failure to set up fraud awareness training. Each NDUS employee is required to

complete fraud awareness training each year in accordance with SBHE policy
611.10. This training has most recently been delivered through Moodle software. In the
past, this training was required to be completed by June 30th of each year. Following
consultation with the Human Resource Council, and with the concurrence of the
Chancellor and me, the training completion deadline was changed from June 30th to
December 31st to better coincide with the start of the academic year and those
activities. This project was assigned to you and, notwithstanding repeated requests,
you have failed to set up this required training.
3. Failure to establish trust with your clients. An attorney is successful only if the
attorney can establish trust with colleagues and clients. You have failed to establish a
trusting, collegial relationship with colleagues and clients. The Chancellor has advised
he does not trust you. I do not trust you. At least one president has advised that he did
not want you on his campus during a visit by Department of Education Office of Civil
Rights personnel.
4. Unprofessional conduct. After becoming increasingly disappointed and frustrated
with your failure to establish a credible compliance program, I asked Dr. Lisa Feldner
whether I could assign you to CTS, to provide legal support to that critical organization.
It is my understanding that Dr. Feldner discussed this matter with you before I had such
an opportunity. It is also my understanding that in a public establishment and in the
presence of at least one other person (not employed by NDUS) you informed Linda
Donlin that you would not accept a reassignment to CTS, that you want to report directly
to the SBHE, and that you would like a severance package in exchange for a
resignation.
5. Misinforming the Audit Committee. During the Audit Committee meeting in Fargo
on August 21, 2014, you provided misleading and inappropriate statements to the
Committee.
6. Refusal to accept that you do not directly report to the SBHE or the Audit
Committee. The Chancellor has established an organizational structure in which you
report to the Director of Legal Services. You have expressed disagreement with that
decision and have expressed that disagreement directly to the SBHE, the Audit
Committee, colleagues, and individuals not employed by NDUS.
7. Refusal to implement a preventive concept for the compliance program. The
Chancellor and I agree that the best practice for the NDUS compliance program
should be training to inform NDUS personnel about key compliance issues (e.g., Title
IX, SBHE policies, etc.) in order to prevent inadvertent or unintentional noncompliance.
However, you have stated to me (and others) that I do not understand compliance. I
do understand that the NDUS has very limited resources for a viable compliance
program, so the emphasis must be training and auditing in an effort to avoid
noncompliance with identified state, federal, and SBHE requirements.

Therefore, it is my conclusion that your failure to implement a viable compliance

program and your recent conduct require that I serve you with this notice of intent to
dismiss with cause.