University of North Florida
Board of Trustees
Finance and Audit Committee

  • Meeting
January 7, 2008
University Center at 8:30 a.m.

Minutes

Committee Members Present 

Dr. Edythe Abdullah, Mr. Hugh Greene, Ms. Wanyonyi Kendrick, Dr. Bruce Taylor, Ms. Carol Thompson, Ms. Rachael Tutwiler, Mr. Kevin Twomey

Committee Members Absent

None

Item 1 Call to Order

Chair Twomey convened the meeting of the Finance and Audit Committee and offered appreciation to all trustees for their attendance.

Item 2 Open Comments

There were no comments from the public.

Item 3 Follow-up on Investments in the Local Government Investment Pool 

Chair Twomey began the meeting by asking Vice President Shuman to provide the members of the committee with a summary of where the university stood in regard to its investments in the LGIP. Vice President Shuman talked about the fact that the university had withdrawn its remaining assets from Pool A in the LGIP, paying the 2% penalty.  President Delaney and Vice President Shuman discussed the issues that led to this move including statements from Citizens Insurance. 

 

Vice President Shuman also spoke about the impact that the withdrawal would have on the earning expectations for university and auxiliary funds, as well as funds for the Student Union and student housing.  

 

After discussing withdrawing UNF’s assets from Pool A and talking about its remaining assets in Pool B, Vice President Shuman presented the members of the committee with an overview of the maturity schedules for Pool A and Pool B, as well as the ratings of the various investments in these two pools.

 

Vice President Shuman provided the committee with a report on where university funds were currently being invested, including Evergreen, Sawgrass and SPIA. She also presented a possible reallocation of funds which would include investments in Sawgrass, Evergreen, and MBIA.

 

Members of the committee asked why the university had selected MBIA. Vice President Shuman told the committee that MBIA was ranked in second place during the last request for proposal (RFP) process in which Sawgrass was selected.  She also stated that if the university went with MBIA, university dollars would be kept in a separate fund rather than mixed with other MBIA investments.  

 

While the committee felt that the university should select the new investment management firm, they did ask the university to look into whether the results of a two-year old RFP were still in force and to look at MBIA’s current record. 

Item 4 Adjournment 

With no further discussion, Chair Twomey adjourned the meeting.