University of North Florida
Board of Trustees
Finance and Audit Committee

  • Meeting
June 10, 2014
University Housing Club House at 10:15 a.m.

Minutes

Members Present  

Hugh Greene, Rad Lovett, Joannie Newton, Lanny Russell, Bruce Taylor, Joseph Turner

Members Absent  

Oscar Munoz

Item 1 Call to Order  

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

Item 2 Approval of Minutes (March 18 and May 22, 2014)  

Chair Lovett asked for a MOTION to approve minutes from the March 18, 2014 committee meeting. A MOTION was offered and seconded. The MOTION was unanimously approved.

 

Chair Lovett asked for a MOTION to approve minutes from the May 22, 2014 committee meeting. A MOTION was offered and seconded. The MOTION was carried unanimously.

Item 3 Open Comments  

Chair Lovett addressed those in attendance and offered opportunity for comments on items on the agenda. There were no comments.

Item 4 Schedule of Tuition and Fees for 2014-2015  

Chair Lovett asked Vice President Shuman to report on this item.

 

Vice President Shuman stated that the schedule of tuition and fees included no increases in tuition. She clarified that the two fee increases -- $1.00 increase in the athletic fee and $0.09 increase in the health fee – were approved by the full Board at the March 18, 2014 plenary session.

 

Vice President Shuman clarified that, because there were no changes to tuition, and fees were previously approved, this item did not require a MOTION for approval.

Item 5 Emergency Regulation Amendments – Schedule of Tuition and Fees  

Chair Lovett asked Vice President Shuman to speak about this item.

 

Vice President Shuman stated that proposed changes to this regulation included two fee increases -- $1.00 increase in the athletic fee and $0.09 increase in the health fee. She noted that these fees were approved by the full Board at the March 18, 2014 plenary session.

 

Vice President Shuman clarified that this regulation was being promulgated as an emergency regulation and would return to the Board for approval according to the standard approval process.

 

Chair Lovett asked for a MOTION for approval of the emergency regulation (schedule of tuition and fees). A MOTION was offered and seconded. The MOTION was unanimously carried.

Item 6 Amendments to Regulation – Pre-Employment Requirements  

Chair Lovett asked Vice President Serwatka to speak about this item.

 

Vice President Serwatka stated that the university was recommending changes to the existing pre-employment requirements regulation. Proposed changes include (1) renaming the regulation, background checks, (2) broadening the regulation so pre-employment criminal background checks will be conducted on all new faculty and staff hires, and current faculty and staff who, because of their job duties, are required by law, and (3) to require that background checks be reviewed by procedures recommended by the EEOC. He clarified that the previous regulation limited background checks to specific types of positions and excluded in-unit faculty applicants whose conditions of employment were covered by the UFF.

 

Vice President Serwatka noted that background checks were contracted out and combined with student background checks, which helped to reduce costs.

 

Trustees asked how the university was informing people of results from their background checks. The administration responded that results were discussed with those who had unclear information. And, if an employee was turned down, they could contact the company performing the background check.

 

Vice President Serwatka reported that the university had vetted these proposed changes through the campus community, with Dr. Jay Coleman representing faculty.

 

Chair Lovett asked for a MOTION for approval of changes to the pre-employment requirements regulation. A MOTION was offered and seconded. The MOTION was unanimously carried.

Item 7 Proposed Revisions – Debt Management Guidelines  

Chair Lovett asked Vice President Shuman to speak about this item.

 

Vice President Shuman clarified that there were two major changes to the debt management guidelines. She listed the changes as, (1) the BOG changed the submission of proposed debt for approval from 60 to 90 days, and (2) the BOG added: (a) an analysis showing quantitative metrics, (b) an explanation as to why the project is essential to the university’s core mission, (c) an assessment of private sector alternatives, and (d) an analysis showing expected rate of return.

 

Chair Lovett asked for a MOTION for approval of changes the UNF’s debt management guidelines. A MOTION was offered and seconded. The MOTION was carried unanimously.

Item 8 Direct Support Organizations (DSOs) Budgets: (1) UNF Foundation, Inc., (2) UNF Training & Services Institute, Inc., (3) UNF Financing Corporation, Inc., and (4) MOCA, Jacksonville  

Chair Lovett asked Vice President Shuman to speak about this item.

 

Vice President Shuman spoke about the four DSO budgets, stating that the UNF Foundation, Inc., management fee was based on $89 million. She noted that a new account was established to separate the president’s discretionary account and the university’s sponsorships of events.

 

The TSI budget is showing positive income and improving overall.  Vice President Shuman mentioned that additional grants may manifest during the fall term and salary and fringe benefits would increase.

 

Vice President reported that the Financing Corporation had a small budget.

 

Vice President Shuman reported on MOCA, Jacksonville, stating that the budget showed support from the university increasing. She clarified that this resulted from MOCA employees being brought over and provided with benefits. She noted that MOCA anticipated a $150,000 award from a cultural grant from the state. Vice President Shuman reported that UNF anticipates providing an additional $120,000 in FY 13/14 to MOCA, which is less than the past two years. She noted that MOCA was on the right trajectory and Vice President Merchant collaborated on fund raising. Additionally, there was increased synergy with the Department of Art and Design.

 

Vice President Shuman reported on MOCA, Jacksonville’s debt, noting that Regions was paid off with a discount and $25,000 was paid toward debt to UNF. She clarified that this budget includes $50,000 to pay UNF for debt.

 

This item was provided for information only. No additional action was required.

Item 9 Office of Internal Auditing – Quarterly Report  

Chair Lovett asked Mr. Robert Berry, director of the Office of Internal Auditing, to speak about this item.

 

Mr. Berry started his discussion by explaining his methodology behind audit planning. He noted that the plan would be presented for approval at the next meeting. He then presented an update, noting that there were major delays in the student fee activity project but others were on track. And, that he was currently gathering information related to one in-person inquiry.

 

This item was provided for information only. No additional action was required.

Item 10 Quarterly Budget Report  

Chair Lovett asked Vice President Shuman to speak about this item.

 

Vice President Shuman reported that 84.0 percent of the budget was expended and divisions had expended between 75 and 92 percent of their budgets. She noted that PO&M was projected to have savings from utilities and residual reserves. And, salary savings, estimated at $2.7 million, will be returned to central reserves. Of this amount, $1.7 million will be allocated to summer school.  Vice President Shuman also noted that the university anticipated that 52 percent of monies in central reserves would be expended.

 

This item was provided for information only. No additional action was required.

Item 11 Treasurer’s Report  

Chair Lovett asked Vice President Shuman to speak about this item.

 

Vice President Shuman reported that investments were more than cash in the bank and interest rates were .5%.

 

This item was provided for information only. No additional action was required.

Item 12 Adjournment  

Chair Lovett adjourned the meeting.