University of North Florida
Board of Trustees
Finance and Audit Committee
November 4, 2003
at 8:30 a.m.
Committee Members Present
O’Neal Douglas, Wilfredo Gonzalez, Steve Halverson, Wanyonyi Kendrick, Kevin Twomey
Committee Members Absent
Other Trustees Present
Rob Labinski of KPMG
Call to Order/Approval of Minutes
Chair Twomey called the meeting to order and asked for a motion to approve the minutes. Trustee Douglas proffered the motion and Trustee Kendrick seconded it. The minutes were unanimously approved.
DSO Audit Reports
Mr. Rob Labinski and Ms. Shari Shuman discussed the audits for UNF’s two direct support organizations: the University of North Florida Foundation and UNF Training and Service Institute. Mr. Labinski described the format used for reporting the audits. He indicated that the format was in accordance with the Government Accounting Standards Board (GASB). Ms. Shuman remarked, and Mr. Labinski confirmed, that both organizations had created additional assets – both showed a profit at the end of 2003. Mr. Labinski stated that both management and the Foundation committee reviewed the documents and approved them. He said he’d had the full cooperation of the management for each of the organizations.
Trustee Kendrick said that though there had been one management letter on the Foundation side that informed the Board of an embezzlement issue, the issue had already been identified by the University and by the Auditor General’s Office. Though the Board was already aware of the issue, the auditors thought it appropriate to include it in their report, as it had been included in the Auditor General’s report. Mr. Labinski stated that other than the issue mentioned by Trustee Kendrick, the reports had been clean with regard to internal controls.
Chair Twomey asked if there were any questions or comments. Trustee Halverson asked what accounted for the large drop in grant revenue. Ms. Shuman replied that UNF had not received one grant this year.
Trustee Kendrick stated that the audits had been excellent. There had been discussion of the possibility of voluntarily instituting some of Sarbene Oxley’s requirements. Trustee Kendrick recommended future Board discussion on the topic.
Chair Twomey asked Ms. Shuman if she had any other comments. Ms. Shuman answered that her office was pleased, as both audits were clean with no management comments of significance.
President Delaney said there had been extensive conversation about the audits. He added that the University was not greatly impacted by the loss of the grant mentioned previously by Ms. Shuman. President Delaney noted that the two TSI principals were slated to retire within the next two years. A succession plan was needed so the DSO could continue to operate as it had been.
Chair Twomey thanked everyone for the work on the audits. He thanked Trustee Kendrick for representing the Committee in his absence and adjourned the meeting when there were no further comments.