University of North Florida
Board of Trustees
Finance and Audit Committee

  • Budget Workshop
June 6, 2005
University Center at 9:30 a.m.

Minutes

Committee members present

Edythe Abdullah, O’Neal Douglas, Tom Foran, Steve Halverson, Wanyonyi Kendrick, Kevin Twomey

Committee members absent:

None 

Other trustees present

Carol Thompson, Judith Solano

 

Chair Twomey called the meeting to order and asked for a motion to approve the minutes. The motion was offered by Trustee Kendrick, seconded and approved unanimously. 

Review of Proposed PECO Submissions

Vice President Shuman presented an update on the PECO submission and provided documents outlining the revisions from last year’s list. She stated that this was a record year for PECO funds with an expectation of about $20 million.

 

President Delaney stated that the projects on the proposed PECO list could over time be reprioritized, in keeping with the prospects for funding over the next five years.

 

Trustee Kendrick asked if PECO funds would be used for any pending projects in the Athletics Department. Vice President Shuman stated that PECO funds were not being used for any projects currently listed in the Master Plan for the Athletics Department. These projects would be funded with CITF funds.

 

Trustee Douglas moved in favor of the changes to the proposed PECO submissions to the full Board. The motion was seconded and passed unanimously.

Review of Annual Capital Outlay Plan

Vice President Shuman introduced this item, stating that Vice President Owen would be seeking clarification on the legal definition and monetary limits of the Capital Outlay Plan.

 

Trustee Thompson asked if all funds currently listed in the Annual Capital Outlay Plan would be used. Vice President Shuman stated that Plan was accurate and all funds would be spent as defined by the Plan. President Delaney added that these funds may not be exhausted by the end of the next fiscal year but the existing encumbrances would stand.

 

Trustee Foran asked if the Student Government projects were included in the Annual Capital Outlay Plan. Vice President Shuman stated that these projects were included.

 

Trustee Kendrick moved in favor of recommending the Annual Capital Outlay Plan to the full Board. The motion was seconded and passed unanimously. 

Educational Plant Survey

Vice President Shuman stated that the Educational Plant Survey was required by the Department of Education. The intended purpose of this survey was to document the use of PECO funds and provide an outline for these funds for the next five years. This Plan requires the Board of Trustees’ approval prior to submission to the Board of Governors.

 

Trustee Halverson moved in favor of the Educational Plant Survey’s submissions to the full Board. The motion was seconded and passed unanimously.

 

Budget Workshop: 

Follow-up on questions from previous workshop 

E&G Budget: There were no follow-up questions regarding the E&G budget.

 

Financial Aid: A discussion commenced regarding need-based and merit-based financial aid. Ms. Janice Nowak referenced the meeting materials, directing the Committee to a chart that provided a break down of merit-based and need-base financial aid. She stated that 49 percent of these funds were provided to need-based students and 31 percent was provided to merit-based students. Further clarification was presented, delineating that the majority of need-based funds come from government allocations and merit-based funds most often come from institutional initiatives and private support.

 

This discussion focused on Florida Bright Futures. President Delaney stated that Florida Bright Futures recipients may also qualify for need-based funds.

 

Chair Twomey requested clarification on need-based scholarships and the intent of the institution to attract the best and brightest students. Ms. Nowak stated that some portion of the financial need among need-based students remains unfunded.

 

Trustee Taylor requested clarification regarding graduate students and undergraduate students and their receipt of financial aid. He stated that graduate students were statistically borrowing more money at higher rates. Vice President Serwatka stated that the majority of financial aid was granted to undergraduate students. 

Review of Auxiliary Budgets  

Vice President Shuman stated that the handout on Auxiliary Budgets was updated slightly, with the biggest change being the reserves. She provided a worksheet outlining these changes.

 

Chair Twomey requested clarification on UNF Foundation funding for the Fine Arts Center (FAC). President Delaney stated that the FAC would become more involved in fundraising. He included that the FAC was currently under evaluation, seeking more streamline operating standards.

 

Vice President Shuman stated that the Auxiliary Budget included reserves directed to future housing structures and parking facilities.

 

Vice President Serwatka addressed Sponsored Research’s trust funds, stating that these funds needed to be encumbered for such circumstances as penalty funds and latent funding. Dr. Serwatka included that there had been several occurrences where the Federal Government had delayed funding certain projects and these projects were often temporarily funded through reserves. 

Tuition Increase 

Vice President Shuman stated that, upon approval from this Committee, there would be a 5 percent increase for all levels of tuition recommended to the full Board. This was the amount approved by the Florida Legislature for in-state undergraduate students. Often tuition could be increased even higher if an institution chose to do so.

 

Vice President Shuman clarified this figure, stating that there were three pools of tuition – out-of-state, in-state undergraduate and in-state graduate. As originally budgeted, this increase would include out-of-state and graduate tuitions. Some Board members thought that it would not include increases for out-of-state and graduate students.

 

Based on the need for further clarity, Chair Twomey asked that no action by this Committee be taken on this item at this time. He charged the administration with the task of creating a summery to be presented to the full Board. 

Adjournment

Chair Twomey stated that this fiscal year’s budget process had been more precise and acknowledged a good job by all involved.

 

President Delaney added a footnote to the meeting, stating that Dr. Marty Khan had agreed to assist Edward Waters College establish the framework for an internal auditing process. He would be providing these services on a part-time basis until the College could employ a permanent internal auditor.