University of North Florida
Board of Trustees
Finance and Audit Committee

  • Meeting
March 19, 2013
Osprey Commons, Talon Room at 11:15 a.m.

Minutes

Item 1 Call to Order   

Chair Lovett called the meeting to order at 10:17 am.

Item 2 Minutes ( January 15, 2013  

Chair Lovett asked for approval of the minutes from the January 15, 2013 meeting. With no changes or corrections noted, Trustee Green MOTIONED to approve the minutes. The MOTION was seconded by Trustee Russell and APPROVED by the committee.

Item 3 Open Comments 

Chair Lovett offered the opportunity for open comments concerning items on this agenda. There were no open comments.

Item 4 State of Florida Financial Audit for Fiscal Year Ended June 30, 2012   

Vice President Shuman addressed the committee and presented the State of Florida Auditor General’s yearly audit of UNF’s financial statements and reports findings to the Legislature.

 

Vice President Shuman noted that the University’s total net assets have decreased over the past few years for several reasons, partially due to postemployment benefits increasing while stimulus money is no longer available. There are no new buildings on line and no new capital appropriations dollars available. Additionally, although capital assets have increased, restricted assets have decreased.

 

The 2011-2012 audit concluded with two findings:

  1. The University needed to improve its financial reporting process to ensure its financial statement transactions are properly recorded.  The University response to this finding stated “We concur that one of our most important responsibilities is to appropriately report on its financial position and activities in our annual financial statements.As such, we take this responsibility extremely seriously. The adjustments made this year were primarily due to a set of unique and isolated circumstances and situations that have been addressed, as well as, revised controls put in place to address the issues.”
  2. The University provided a line of credit to one of its direct-support organizations without specific legal authority. The University disagrees with this finding.  At the time of the loan the University had the authority to extend the loan. The auditor’s recommendation is “The University should seek to collect the outstanding amount owed by MOCA and replenish University accounts.”  The University will continue to monitor and collect the outstanding amounts owed by MOCA as funds become available.

The Finance and Audit Committee discussed options to diplomatically resolve the differences between the auditors and the University. 

 

Report – No Action Required    

Item 5 Update on the Auditor General's Federal Awards Audit   

Vice President Shuman presented the Auditor General's Federal Awards Audit. The Auditor General found that the University’s “Satisfactory Academic Progress (SAP) standards did not include all elements of the Federal SAP standards, and internal controls were not always adequate resulting in undetected clerical errors when determining student eligibility, which allowed ineligible students to receive Title IV HEOA funds.” The University acknowledged the error and has revised its SAP policy making cumulative standards as strict as the academic policy. All appropriate funds were returned to the Federal Government.  In addition, there were no findings in the Bright Futures Audit.

 

 Report – No Action Required  

Item 6 Office of Internal Auditing (OIA) – Quarterly Update   

Robert Berry was not in attendance at the meeting so a written overview of the internal audit office activities was distributed for review.

 

Report – No Action Required    

Item 7 Quarterly Budget Report   

Vice President Shuman presented the quarterly budget report.  Currently the University is within budget for the year. Salary savings will be approximately $1.7M. This year all salary savings will be returned to the central reserves and be used to fund summer school. A shortfall in FTE of approximately 200 credit hours is expected which will impact tuition by approximately $500K. Vice President Shuman also presented the Auxiliary Quarterly report noting the following with the most activity:

  • The Herbert University Center will break even after the transfer of $100K for capital improvements for the building and soccer stadium.
  • Because of the shortage of credit hours, Athletics has a shortfall of $130K.
  • There will not be a Banner grant reimbursement for Continuing Education as originally planned.
  • The Fine Arts Center is doing well. The dressing rooms have now been renovated.
  • Monies were transferred from Administrative Overhead to pay for the 3rd and 4th floors of Osprey Commons.

 

Report – No Action Required    

Item 8 Treasurer’s Report   

Vice President Shuman addressed the committee and presented the treasurer’s report.

 

The University is currently fully invested. Both money managers are currently exceeding the benchmarks. 

 

Report – No Action Required    

Item 9 Data Security Overview 

Jeff Durfee, Director of Networking Services and IT Security provided the Finance & Audit Committee with an overview of the top data security challenges and how we are addressing those challenges. Issues discussed included decentralized systems, storing/handling sensitive data, transmitting sensitive data insecurely, phishing and opening unknown email attachments.

Item 10 Adjournment  

Chair Lovett adjourned the meeting at 12:00 pm.