University of North Florida
Board of Trustees
Finance and Audit Committee

  • Meeting
January 18, 2011
University Center at 9:00 a.m.

Minutes

Committee Members Present

Sitou Byll-Cataria, John Delaney, Joan Newton, Bruce Taylor and Kevin Twomey (by phone)

Committee Members Absent

None

Item 1 Call To Order      

Chair Twomey recognized a quorum present and called the meeting to order.

Item 2 Minutes               

Chair Twomey asked for a motion to approve the September 2, 2010 minutes. The motion was made and seconded.  The minutes were approved as presented. (Bruce Taylor, Sitou Byll-Cataria)

Item 3 Open Comments

Chair Twomey addressed those in attendance and offered the opportunity for open comments.  No open comments were presented.

Item 4 Proposed Amendments to the UNF Board of trustees Bylaws

Chair Twomey asked Shari Shuman to present this item.

 

Vice President Shuman presented the proposed amendments to the bylaws which include the addition of a Student Life and Facilities Committee, changing the name of the Educational Policy Committee to the Academic Affairs Committee and revising the timeframe to appoint committee members to occur no later than one month after the annual meeting.

 

Chair Twomey asked for a motion to approve the addition of the Student Life and Facilities Committee, change the name of the Educational Policy Committee to the Academic Affairs Committee and revise the timeframe to appoint committee members to occur no later than one month after the annual meeting.  A motion was made, seconded and approved. (Bruce Taylor, Sitou Byll-Cataria)

Item 5 Parking Rate Schedule

Chair Twomey asked Shari Shuman to speak about this item.

 

Vice President Shuman stated that there is one proposed change in the parking rate schedule for 2011-2012.  The recommendation to reduce the cost of a designated parking permit by $10 was proposed by the university-wide Parking Council and endorsed by the President.  Data shows that there are always multiple designated spaces available on campus and therefore, the ratio of permits sold to space available can be increased.  With more permits sold per space, the cost of the permit should be reduced.

 

Chair Twomey asked for a motion to decrease the cost of designated parking permits in 2011-2012.  A motion was made, seconded and approved.  (Sitou Byll-Cataria, Bruce Taylor)

Item 6 Activity and Service Fees, Athletics Fees and Health Fee

Chair Twomey asked Shari Shumanto address this item.

 

Vice President Shuman presented the proposed increases to student fees for 2011-2012.   A university committee comprised of students, faculty and staff recommend a $1.00 increase to the Activity and Service Fee and a $.75 increase to the Athletics Fee.  Other fees will remain unchanged.

 

Chair Twomey asked for motion to approve the proposed $1.00 increase to the Activity and Service Fee and $.75 increase to the Athletics Fee.  The motion was made, seconded and approved. (Sitou Byll-Cataria, Bruce Taylor)

Item 7 Proposed Revisions to the Debt Management Guidelines

Chair Twomey asked Shari Shuman to address this item.

 

Vice President Shuman presented the proposed revisions to the Debt Management Guidelines which are required by State Statute for bond issues.  These guidelines ensure that UNF and its DSOs engage in sound debt management practices.  Proposed revisions to the 2007 guidelines include the ability to enter into energy performance-based contracts and borrowing up to $20M from a DSO on a non-recourse basis to finance a capital project without the approval of the BOG. Also proposed are changes to the submittal process to the BOG.  The biggest change is a clearer definition of functional relationships and when one exists for helping to secure a bond.  She added that these changes have been reviewed and approved by the UNF Financing Corporation.

 

Chair Twomey asked for a motion to approve all proposed changes to the Debt Management Guidelines as presented.  A motion was made, seconded and approved. (Bruce Taylor, Sitou Byll-Cataria)

Item 8 Independent Accountant’s Report on Applying Agreed-Upon Procedures – Intercollegiate Athletics Program

Chair Twomey asked Shari Shuman to address this item.

 

Vice President Shuman stated that the Intercollegiate Athletics Program is required by the National Collegiate Athletic Association to engage an independent accountant to audit their financial statements.        The accounting firm, Dixon Hughes, PLLC, found no findings of significance.

 

This item was for information only and required no action.

Item 9 Return of Organization Exempt from Income tax, Form 990:  (1) UNF Training and Services Institute, (2) UNF Financing Corporation, (3) UNF Foundation, Inc. and (4) MOCA, Jacksonville

Chair Twomey asked Shari Shuman to present this item.

 

Vice President Shuman shared that each 501(c)3 must submit a Form 990 and a Form 990T each year.  Each DSO has reviewed and approved the 2009 forms.

 

This was for information only and required no action.

Item 10 Update on the Student Wellness Complex’s Bond Issue

Chair Twomey asked Shari Shuman to present this item.

 

Vice President Shuman explained the process in which the university went to the bond market in December for the Student Wellness Complex bonds.  The bonds totaled $15,635,000 in two issuances:  $2,575,000 in Series 2010A Tax-Exempt Bonds and $13,060,000 in Series 2010B Taxable Build America Bonds.

 

This item was for information only and no action was required.

Item 11 Office of Internal Auditing - Quarterly Report

Chair Twomey asked Robert Berry to present this item.

 

Robert Berry, Director, Office of Internal Auditing, presented the quarterly report.  He gave a staffing update, noting that a third auditor has been hired who will be addressing ITS audits.  He discussed his office’s involvement in the recent IT data security breach.  After meeting with management, the Office of Internal Auditing agreed the incident was detected by measures already in place and discussed next steps.  Director Berry also provided a risk assessment update as part of the quarterly report as well as the audit plan and whistleblower statistics.

 

This report was provided for information only.  No additional action was required.

Item 12 Quarterly Budget Report

Chair Twomey asked Shari Shuman to present this item.

 

Vice President Shuman provided the quarterly budget report and stated that 46.1% of the budget had been expended as of 12/31/2010.  There is currently no call-back of monies by the State.  Recurring reserves include $4.2 million should the State issue a call-back and if stimulus money needs to be replaced.  She noted that some of the Auxiliary departments show funds in the negative but this is largely due to timing issues.

 

This report was provided for information only.  No additional action was required.

Item 13 Treasurer’s Report

Chair Twomey asked Shari Shuman to present this item.

 

Vice President Shuman provided the treasurer’s report ending December, 2010.  She noted the net cash balance was $102 million with $102.1 million invested.  The actively managed portfolios posted returns of 3.4% and 4.0%.  Investment benchmarks included 2.4% with SPIA and 3.9% with ML.  There were no outstanding issues.

 

This report was provided for information only.  No additional action was required.

Item 14 Adjournment

Chair Twomey adjourned the meeting.