University of North Florida
Board of Trustees
Finance and Audit Committee
June 21, 2011
University Center at 9:00 a.m.
Committee Members Present
Mr. Matthew Brockelman, Mr. Wilfredo Gonzalez, Ms. Wanyonyi Kendrick, Ms. Joannie Newton, Dr. Bruce Taylor
Committee Members Absent
Mr. High Greene, Mr. Oscar Munoz, Ms. Lynn Pappas, Mr. Kevin Twomey
Item 1Call to Order
Chair Taylor recognized a quorum and called the meeting to order.
Item 2 Minutes (March 15 and May 12, 2011)
Chair Taylor asked for a MOTION for approval of the minutes from March 15 and May 12. The MOTION was offered by Trustee Newton and seconded by Trustee Kendrick. The MOTION was approved as presented.
Item 3 Open Comments
Chair Taylor offered opportunity for open comments. There were no comments from the public.
Item 4 Direct Support Organizations (DSO) Budgets: (1) UNF Foundation, Inc., (2) UNF Training & Services Institute, Inc. (TSI), (3) UNF Financing Corporation, Inc. (UNFFC), and (4) MOCA, Jacksonville
Chair Taylor asked Vice President Shuman to speak about this item.
Vice President Shuman stated that all DSO budgets were presented to and approved by their respective board. She spoke about the UNF Foundation, Inc., noting that total revenues were slightly under expenditures.
Vice President Shuman presented the TSI budget, clarifying that this DSO included the (1) Institute of Police Technology Management, (2) TSI Administration and (3) TSI Investments, LLC (created for the purchase of the ADT property). She noted that of these, TSI Investments, LLC’s total revenues were slightly under expenditures.
Vice President Shuman spoke about the UNFFC, reporting that the purpose of this DSO was to collect revenue from UNF housing, parking and the Student Union. This revenue was then spent out for audit expenditures.
Vice President Shuman presented the MOCA managerial operating budget, noting that this DSO was running a deficit. She reported that MOCA would require about $200,000 from the university for FY 2011-2012. Additionally, MOCA would be presenting a realistic budget and the university would asses additional funding at that time.
This item was presented for review only. No additional action was required.
Item 5 Office of Internal Auditing – Quarterly Report
Chair Taylor asked Mr. Berry, Director of the Office of Internal Auditing, to report on this item.
Mr. Berry stated that this quarterly report would include an update on the quality assurance review, audit activities, service to the university and other activities. He began by discussing the quality assurance review, which was required every five years. Mr. Berry stated that he was making a recommendation to this committee for a self-assessment with independent validation.
Mr. Berry presented an audit update for this fiscal year and reported that there were no concerns with outstanding audit items.
This item was provided for information only. No additional action was required.
Item 6 Quarterly Budget Report
Chair Taylor asked Vice President Shuman to report on this item.
Vice President Shuman reported that about 92 percent of all outstanding items were closed, with 87 percent of the total E&G budget expended. And, salary savings would fund summer school with the remainder returning to central reserves. Vice President Shuman stated that the approximately $1.3 million in additional tuition revenue would carry forward as non-recurring revenues for next fiscal year. She reported that the State did not require a call back this fiscal year.
Vice President Shuman reported on the status of the auxiliaries, noting that two units were in deficit. She clarified that Continuing Education was funding the new dining facility and the Fine Arts Center was expected to break even.
This report was for information and no additional action was required.
Item 7 Treasurer’s Report
Chair Taylor asked Vice President Shuman to report on this item.
Vice President Shuman reported that more funds were invested than in cash. She stated that all three money managers were beating the investment benchmarks.
This report was provided for information only. No additional action was required.
Item 8 Emergency Regulation Amendment – Schedule of Tuition and Fees Regulation
Chair Taylor asked Vice President Serwatka to report on this item.
Vice President Serwatka stated that this regulation was presented for approval twice each year, once as an emergency regulation and again for standard promulgation. He clarified that this action was a result of mandates from the State budget.
Vice President Serwatka reported on the changes in tuition and fees as follows:
15 percent tuition increase for in-state undergraduate students (8 percent tuition and 7 percent differential tuition);
15 percent tuition increase for out-of-state undergraduate students (with an exception to the out-of-state quota);
15 percent tuition increase for in-state graduate students;
15 percent tuition increase for out-of-state sign language interpreter training;
15 percent tuition increase for in-state nurse anesthetist and DPT students;
15 percent tuition increase for out-of-state nurse anesthetist and DPT students.
He clarified that the 15 percent tuition increase would not apply to the out-of-state graduate programs.
Trustee Brockelman stated that he appreciated that there was work done to decrease the out-of-state tuition. He stated that more needed to be done to communicate to the students the need to become more independent from the Legislature and to make them aware of the value this institution had put into place.
Chair Taylor asked for a MOTION for approval of the schedule of tuition and fees regulation. A MOTION was made and seconded. The MOTION was approved as presented.
Item 9 UNF Budget
Chair Taylor stated that a presentation on the budget was made to trustees in May and the budget was now being discussed by this committee. He asked Vice President Shuman to speak about this item.
Vice President Shuman spoke about the budget, listing the base distribution at $127 million, which includes tuition and tuition differential increases accounting for $5 million, new PO&M funding accounting for $1.2 million and a $1 million increase in the lottery allocation.
Vice President Shuman discussed the $5.6 million cut from the previous year’s base distribution, which included the elimination of the federal stimulus dollars. And, there was a $6.7 million reduction in the general revenue allocation. She spoke about the need for greater reliance on nonrecurring resources.
Trustee Brockelman stated that it was important for students to see some return on the increase in tuition and fees.
Chair Taylor asked for a MOTION for approval of the UNF budget. The MOTION was offered and seconded. The MOTION was approved as presented.
Item 10 Adjournment
hair Taylor adjourned the meeting.