University of North Florida
Board of Trustees
Finance and Audit Committee

  • Meeting
October 15, 2013
Osprey Commons, Talon Room at 12:15 p.m.

Minutes

Committee Members in Attendees

Oscar Munoz (Chair), Hugh Greene, Rad Lovett, Lanny Russell, John Delaney, Carlo Fassi, Joan Newton,

Item 1 Call to Order

Chair Munoz called the meeting to order at 12:15 PM.

Item 2 Minutes (June 11, 2013)

Chair Munoz asked for approval of the minutes from the June 11, 2013 meeting. With no changes noted, Trustee Russell MOTIONED to approve the June 11th minutes. Trustee Newton seconded the MOTION. The minutes for the June 11, 2013 meeting were APPROVED.

Item 3 Open Comments

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

Item 4 Market-Rate Tuition for the Academic Partnerships’ Contract with UNF

Vice President Traynham addressed the committee and presented the proposed fee structure of the market-rate tuition for the Academic Partnerships’ contract with UNF for the following online programs; a (1) M.Ed. in Exceptional Student Education, a (2) M.S. in Nutrition, and the (3) Doctor of Nursing Practice degrees. The proposed fee structure would pertain only to the three graduate programs. The current RN to BSN tuition and fees would not be affected. If approved by both the Board of Trustees and the Board of Governors, the fees would be effective May 2014. Revenue will be reviewed as the program continues. Funds will be reviewed by the Board of Trustees every quarter. It was also noted that annual reports will be required. 


Trustee Lovett made a MOTION to approve the proposed fee structure of the market-rate tuition for the Academic Partnerships’ contract with UNF. Trustee Newton seconded the MOTION and the motion was APPROVED.

Item 5 Approval of a New Percentage Structure for the Collegiate License Plate Revenue

Vice President McCullen addressed the committee and presented a proposal for a new percentage structure for the collegiate license plate revenue.  


The administration would like to redirect 12 percent of the revenue from the collegiate license plate revenue from the fundraising portion to academic enhancement. Currently, 70 percent of the revenue is primarily for First Generation scholarships and the remaining 30 percent (fundraising portion) funds the ads to promote the license plate program. This redirect would provide about $5,000 under the academic enhancement category to be used by the Foundation Board to award to the Board Initiative projects involving faculty and students. This change will also require Board of Governors approval. 


Trustee Fassi made a MOTION to approve the new percentage structure for collegiate license plate revenue. The MOTION was seconded by Trustee Greene. The motion was APPROVED.

Item 6 Approval of Amendments to a Regulation – 11.0030R Payment of Tuition and Fees

Vice President Shuman presented the proposed amendments to the Payment of Tuition and Fees regulation. As currently written, the regulation only allows for a half-and-half payment plan. This proposal allows for multiple payment plans and moves the tuition payment deadline out an additional day.  


Trustee Russell made a MOTION to approve the amendment to the regulation – 11.0030R Payment of Tuition and Fees. Trustee Newton seconded the MOTION and the motion was APPROVED.

Item 7 Approval of Amendments to a Regulation – 11.0010R Schedule of Tuition and Fees

Vice President Shuman presented the proposed amendments to the 2013-2014 Schedule of Tuition and Fees regulation which was presented to and approved by the Board of Trustees as an emergency regulation in June, and is again coming to the Board through the standard regulation promulgation process. The purpose of this practice has been to meet deadlines for the Board of Governors’ review and approval procedures.  


Trustee Newton made a MOTION to approve the proposed amendments to the 2013-2014 Schedule of Tuition and Fees regulation. Trustee Lovett seconded the MOTION. The motion was APPROVED.

Item 8 Approval to Repeal a Regulation – 13.0010R Purchasing Program Overview

Vice President Shuman presented a proposal to repeal the regulation – 13.0010R Purchasing Program Overview. This is being undertaken to establish and implement a new regulation that is current and in accordance with the recently adopted Board of Governors regulation on purchasing programs.  


Trustee Fassi made a MOTION to repeal the regulation – 13.0010R Purchasing Program Overview. Trustee Newton seconded the MOTION. The motion was APPROVED.

Item 9 Approval of a New Regulation – 13.0010iR Purchasing Program

Vice President Shuman presented a proposal for a new regulation for the Purchasing Program. The proposed new regulation will set forth a competitive solicitation threshold of no greater than $75,000 (UNF’s prior regulation was no greater than $50,000). The new regulation will also include the language to grant preferences for Florida-based vendors when awarding of contracts by competitive solicitation for personal property and printing.  


Trustee Lovett made a MOTION to approve the new regulation – 13.0010iR Purchasing Program. Trustee Russell seconded the MOTION. The motion was APPROVED.

Item 10 Approval to Repeal a Regulation – 13.0020R Purchasing – Notice and Protest Procedures

Vice President Shuman presented a proposal to repeal the Purchasing – Notice and Protest Procedures regulation. This is being undertaken to establish and implement a new regulation that is current and in accordance with the recently adopted Board of Governors regulation on purchasing programs.  


Trustee Fassi made a MOTION to repeal the regulation -13.0020R Purchasing – Notice and Protest Procedures. Trustee Russell seconded the MOTION. The motion was APPROVED.

Item 11 Approval of a New Regulation – 13.0020iR Notice and Protest Procedures for Protests Related to a University Contract Procurement Process

Vice President Shuman presented a proposal for a new regulation that will set forth an exclusive set of procedures to apply to protests that arise from all university contract procurement. There are no major changes from the repealed regulation, 13.0020R Purchasing – Notice and Protest Procedures but the new set of procedures are more detailed and match the BOG changes, noting the timeframe for appeal has changed.  


Trustee Fassi made a MOTION to approve the new regulation – 13.0020iR Notice and Protest Procedures for Protests Related to a University Contract Procurement Process. Trustee Russell seconded the MOTION. The motion was APPROVED.

Item 12 Approval of Amendments to a Regulation – 13.0030R Purchasing Program Bonding Requirements

Vice President Shuman presented a proposal of amendments to the regulation – 13.0030R Purchasing Program Bonding Requirements. The purpose of this item is to propose amendments to the Purchasing Program Bonding Requirements regulation, to allow the university to coincide with the recently amended Board of Governor’s regulation on bonding requirements. Minor wording changes are included.  


Trustee Newton made a MOTION to approve the amendments to regulation – 13.0030R Purchasing Program Bonding Requirements. Trustee Fassi seconded the MOTION. The motion was APPROVED.   

Item 13 Audit Charter for the Office of Internal Auditing

Mr. Robert Berry, director of the Office of Internal Auditing, presented the annual review of and re-ratification of the charter for the Office of Internal Auditing. This annual review is consistent with the Institute of Internal Auditors’ guidelines. There are no changes from the charter for last year.  


Trustee Fassi made a MOTION to approve the audit charter for the Office of Internal Auditing. Trustee Newton seconded the MOTION. The motion was APPROVED.

Item 14 Audit Charter for the Finance and Audit Committee

Mr. Robert Berry, director of the Office of Internal Auditing, presented the annual review of, and re-ratification of the audit charter for the Finance and Audit Committee. This annual review is consistent with the Institute of Internal Auditors’ guidelines. There are no changes from the charter for last year. 


Trustee Fassi made a MOTION to approve the audit charter for the Finance and Audit Committee. Trustee Newton seconded the MOTION. The motion was APPROVED.

Item 15 Approval of the Office of Internal Auditing Audit Plan

Mr. Robert Berry, director of the Office of Internal Auditing, presented for approval, the Office of Internal Auditing Audit Plan for 2013-2014. The plan is currently based on a 67% staffing level but will be adjusted as needed. Audits planned over the next year include student fees (the collection and disbursement of funds), student receivables and servers that house sensitive data.  


Trustee Lovett made a MOTION to approve the Office of Internal Auditing audit plan. Trustee Fassi seconded the MOTION. The motion was APPROVED.

Item 16 Direct Support Organizations (DSOs) Audits, and Form 990s, (1) UNF Foundation, Inc., (2) UNF Training & Services Institute, Inc., (3) UNF Financing Corporation, Inc., and (4) MOCA, Jacksonville

Vice President Shuman presented for review, the audits and Form 990s for the UNF’s DSOs, including the (1) UNF Foundation, Inc., (2) UNF Training & Service Institute, Inc., (3) UNF Financing Corporation, Inc., and (4) MOCA, Jacksonville. All audits were performed by Dixon Hughes Goodman, LLP and all were clean and unqualified opinions.  


The audit for the UNF Foundation, Inc. passed on recording one audit difference: an understatement of Morgan Creek investments at 6/30/2013 based on final valuations ($363,473). The endowment as of 6/30/2013 was $83.5 million. There were no audit adjustments. 


The audit for the UNF Training & Services Institute, Inc. passed on recording one audit difference: accrued rent income between 6/10/2013 and 6/30/2013 was $47,731. There was one audit adjustment: properly stating the lease income and interest expense related to the ADT building ($52,505). The IPTM net income as of 6/30/2013 was $113,850. 


The audit for the UNF Financing Corporation passed on one audit difference: reclassification of bond premium liability from non-current to current liabilities ($127,241). There was one audit adjustment: reclassification of lease receipts from interest income to lease revenue ($479,131). There were no major transactions this year. 


The audit for MOCA passed with no audit adjustments and one audit difference: deferred contribution revenue ($56,422). The UNF contribution to MOCA last year above the original budget was $157,000. Summer fundraising was successful this year and the university has not needed to provide additional funds in August or September this year.

Item 17 Accounts Receivable Write-Offs

Vice President Shuman presented the accounts receivables write-offs ending 6/30/2013. Florida Statutes authorize the university’s Board of Trustees to charge off or settle uncollectible accounts. The Board delegated the authority for accounts receivable write-offs under $10,000 to the President of the university. As part of this delegation, the President will report annually the status of accounts receivable charge-offs to the Board. Write-offs are for financial statement purposes only. For the registration fees write-off, the number of students increased by 14%; however the average dollar value of the write-off increased by 67%.

Item 18 Office of Internal Auditing – Annual Report

Mr. Robert Berry, director of the Office of Internal Auditing, presented the annual report for the Office of Internal Auditing.
The office operated at 33% capacity for two-thirds of the year. A significant amount of time was spent recruiting for the open positions. Because of the shortage in office staff, one audit and seven shorter advisory engagements were conducted.

Item 19 Office of Internal Auditing – Quarterly Report

Mr. Robert Berry, director of the Office of Internal Auditing, reported on this quarter’s activities in the Office of Internal Auditing.
The office is now staffed at 100% capacity with two recent new hires. A fee audit is 25% complete and should be completed by mid-December. A data analysis initiative has begun. There was no hotline activity this quarter. The office is aggressively following up on outstanding items.

Item 20 Quarterly Budget Report

Vice President Shuman provided the quarterly budget report for the quarter ending June 30, 2013. The University was within budget, having expended 95.83% of the budget. Physical Facilities saved approximately $2 million on utilities and other expenses. The savings enabled Physical Facilities to pay for outstanding building envelope issues. The remaining dollars in salary savings and operational expense savings were spent on summer school. The University was able to save $800,000 in Central Reserves for the year.  


In the first quarter of this year, the University has spent only 22.8% of the budget. It is anticipated that all salary savings will be returned to Central Reserves, as in prior years.

Item 21 Treasurer’s Report

Vice President Shuman presented an overview of the current treasurer’s report, noting that interest income is coming down and cash balances stay in the $90 million to $100 million range. Ending investments were at $85.5 million at the end of June.

Item 22 Adjournment

Chair Munoz adjourned the meeting at 1:20 PM.