UESP gets new director

Lynne Ward was named Tuesday to supervise the $790 million Utah Education Savings Plan, replacing former director Dale C. Hatch, who was fired in July after being accused of making "questionable transactions."

Ward will stay on as deputy chief of staff to Gov. Olene Walker when she takes her UESP post on Oct. 1. Then, beginning Jan. 3, 2005, she'll be the UESP director full-time.

Ward has been working in the governor's office for 12 years and previously served as the state budget director. Her current position is an appointed one and it would have been uncertain whether a new governor would have retained her.

"It's a nice time for a change for me professionally," Ward told the Deseret Morning News.

Utah Commissioner of Higher Education Rich Kendell referred to Ward in a press release as a "person of unquestioned integrity" who will take charge of what is regarded as one of the nation's top 529 savings plans.

As UESP director, Ward, a certified public accountant, also will serve as a special assistant to Kendell on budget matters.

Ward said her first task as director will be to "reassure" investors that the fund is "well managed." After that, she plans on looking into internal control procedures to make sure they're "tight."

Hatch is accused of diverting as much as $85,000 in administrative fees from the college fund to make personal investments in "hidden" accounts. It's believed no investor funds were harmed.

A report on Hatch from the State Board of Regents, which oversees public higher education in Utah, and the state auditor's office is due out by Friday or early next week. Any possible criminal charges against Hatch would then be filed through the district attorney's office.

One of the challenges Ward faces will be to keep the UESP's fees low, which is what earned it such high regard by groups like Morningstar Inc., a Washington-based mutual fund rating agency. Because of the controversy surrounding Hatch's ordeal, there was some question whether the fees would rise if administrative control of the fund were to be handled externally.

By bringing Ward on board, the goal now is to keep the fund managed internally, according to Dave Buhler, Utah System of Higher Education associate commissioner of public affairs.

Ward said she would like to tip the scales in terms of the number of Utah residents who invest in the fund — currently, a majority of investors are from out of state.

Ward also has ideas of expanding a new UESP-administered matching fund program geared toward helping low-income families save up to $2,400 — half of which would be matching monies from the fund — toward the start of a child's college education.

Since Hatch was accused in July, the UESP fund has grown by about 3,000 investor accounts (worth around $75 million) to a total of more than 48,000 accounts. The program, created in 1996 by the Utah Legislature, is governed by the Utah Higher Education Assistance Authority and the regents.

---

E-mail: sspeckman@desnews.com