University of North Florida
Board of Trustees
Finance and Audit Committee

  • Meeting
October 18, 2011
University Center at 1:15 p.m.

Minutes

Committee Members Present

Mr. Bruce Taylor (Chair), Mr. Rad Lovett, Ms. Joan Newton,  Mr. Lanny Russell, Mr. John Delaney, Mr. Hugh Greene 

Committee Members Absent

Mr. Matthew Brockelman, Mr. Oscar Munoz 

Item 1 Call to Order

Chair Taylor recognized a quorum and called the meeting to order. 

Item 2 Minutes (June 21, 2011)

Chair Taylor asked for a MOTION for approval of the June 21 minutes.  The MOTION was offered by Trustee Newton and seconded by Trustee Greene.  The minutes were approved as presented. 

Item 3 Open Comments

Chair Taylor offered the opportunity for open comments.  There were no open comments from the public. 

Item 4 Schedule of Tuition and Fees Regulation

Vice President Serwatka presented the proposed amendments to the 2011-2012 tuition and fees regulation for approval.  This included an overall 15% tuition increase.  Chair Taylor asked for a MOTION to approve the amendment as presented.  The MOTION was offered by Trustee Russell and a second was made by Trustee Newton.  The MOTION passed unanimously. 

Item 5 Direct Support Organizations’ Audits

Vice President Shuman presented the audits of the four Direct Support Organizations at the University.  The audits were completed by Dixon, Hughes, Goodman, LLC.  All of the DSO Audits were clean and Vice President Shuman noted the following highlights, noting that more could be found in the Management & Discussion Analysis section of each audit: 

  1. UNF Foundation – Because of unsatisfactory performance in the past, investment management will be transferring from Morgan Creek to Perella Weinberg Partners.  The private equity will remain with Morgan Creek at this time. 
  2. TSI (IPTM) – The fund did not do as well as expected.  The University purchased the ADT Building in May 2010.  Assets were negative for the year because additional expenses needed to be paid for during the year.  In particular, the Public Safety Institute in Orlando was closed and many activities were absorbed by IPTM. 
  3. MOCA – The University’s $500,000 Line of Credit to MOCA was fully expended last year.  A new director and director of development have been hired.  Contributions are up over $100,000. 

This item was presented for review only.  No additional action was required. 

Item 6 2010-2011 Office of Internal Auditing Annual Report

Chair Taylor asked Mr. Berry to present the Office of Internal Auditing Annual Report.  Mr. Berry explained that the department has a professional staff of three and a budget of $313,000.   Services are divided largely into three groups – traditional audit (73%), consultations (5%) and investigations (1%).  Management effectively resolved 94% of all six outstanding audit issues.  Seven consulting engagements were completed.  Four fraud allegations were investigated. 

Item 7 2011-2012 Audit Plan for the Office of Internal Auditing

Chair Taylor asked Robert Berry to present the Office of Internal Auditing Audit Plan.  Mr. Berry shared the 2011-2012 plan which includes six planned engagements; application security, financial aid, Osprey 1Card, grade integrity, fuel usage and server discovery & security. 

 

Chair Taylor asked for a MOTION to approve the audit plan as presented.  Trustee Russell made a MOTION to approve the plan as presented.  Trustee Greene seconded the MOTION and the MOTION was approved. 

Item 8 Office of Internal Auditing Annual Report Status Update

Chair Taylor invited Robert Berry to provide a status update for this year’s audit activities.  Mr. Berry noted that the Osprey1Card audit should be completed before the next BOT meeting but several of the audits have been delayed.  He explained that in regards to the Osprey 1Card audit, risk was assessed by reviewing the following factors:  initial set-up, distribution, 3rd party management and payment card industry standards.  Trustee Lovett invited Mr. Berry to share the complete process in selecting a particular area to audit at a future BOT meeting. 

Item 9 Audit Charter for the Office of Internal Auditing

Chair Taylor asked Robert Berry to conduct the annual review of the Audit Charter for the Office of Internal Auditing.  He noted that the charter adheres to the state guidelines and requires re-ratification each year.  The committee was asked to review the charter for the next meeting. 

Item 10 Audit Charter for the Finance and Audit Committee

Chair Taylor asked Robert Berry to conduct the annual review of the Audit Charter for the BOT Finance & Audit Committee.  This charter requires re-ratification each year.  The committee was asked to review the charter for the next meeting. 

Item 11 Accounts Receivable Write-Offs

Florida Statutes authorize the University’s Board of Trustees to charge off or settle uncollectable accounts each year.  Chair Taylor asked Vice President Shuman to update the Board on the accounts receivable charge-offs for June 30, 2011.  Vice President Shuman provided a comparison of the write-offs for the past 2 years. 

 

The information provided required no additional action. 

Item 12 Quarterly Budget Report

Chair Taylor invited Vice President Shuman to present the quarterly budget report, which includes E&G funds as well as auxiliary funds.  She noted that the operating budget is comprised of 50% state monies, 10% lottery monies and 40% tuition fees.  She reported that the University currently has $4.2M of recurring reserves.  At this point, no budgetary issues are anticipated during the end of the fiscal year. 

 

The information provided required no additional action. 

Item 13 Treasurer’s Report

Chair Taylor asked Vice President Shuman to present the treasurer’s report.  As of June 30, the net cash balance was $111.3M.  Investments for the year totaled $113.1M with a 2.4% total return. 

 

The information provided required no additional action. 

Item 14 Adjournment

Chair Taylor adjourned the meeting at 2:02 p.m.