Board of Visitors

Finance and Audit Committee Meeting February 15, 2019

The Finance and Audit Committee met on Friday, February 15, 2019 in the Madison Room of the David Student Union, with Chairman Bruce Jennings presiding.

Present from the Committee

  • Mr. W. Bruce Jennings
  • Robert R. Hatten, Esq.
  • Kellye L. Walker, Esq
  • Ms. Terri M. McKnight, CPA
  • Mr. N. Scott Millar
  • Mr. William R. Ermatinger

Present from the University

  • Mr. William Brauer, Executive Vice President
  • Mrs. Cynthia Perry, Chief of Staff
  • Mrs. Jennifer Latour, Vice President for Strategy and Planning
  • Mrs. Faith Belote, Director of University Audit
  • Mr. Tom Kramer, Director of External Affairs
  • Dr. Lynn Shollen, Faculty Senate Vice President
  • Mrs. Rhonda Wissinger, Executive Assistant

Chairman Bruce Jennings called the meeting to order and welcomed everyone in attendance. Executive Vice President, Mr. Bill Brauer, reported on the following:

Statement of Revenues and Expenditures for the Six Months Ended December 31, 2018

Mr. Brauer reported that the increase in total tuition and fees for the first six months of the fiscal year was normal, as well as, the ebb and flow of capital appropriations. He reviewed and summarized the report and explained the variances and noted that the negative cash balance for the Ferguson Center Concert Hall has been reduced significantly and that timing issues are reflective of the timing of the payments of debt in that our debts are not paid monthly, they are only paid two to three times throughout the year, and therefore, this will catch up by year end.

SWaM Report for the Six Months Ended December 31, 2018

Mr. Brauer reported that Christopher Newport University is doing well and continues to beat the SWaM target goal of 42%, coming in at 50% on $11 million in expenditures and exceeding the targets in each of the categories. The SWaM fair was a success. In order to do business with Christopher Newport University, small businesses must become eVA registered with the State. Mr. Brauer explained how this process works and the differences between a small business and a new category called micro business.

Chairman Bruce Jennings introduced Vice President for Strategy and Planning, Mrs. Jennifer Latour to report on the following:

General Assembly Update

Mrs. Latour reported that the general assembly convened on January 9th and it is a 45 day session. They are in the middle of a biennium, this is the second year and they are making some adjustments. Some items that specifically relate to Christopher Newport University for next year are:

  • $450,000 in operating funds given for operation expenses for the Trible Library
  • $667,000 to increase our Stem H Degree programs
  • $418,000 under graduate financial aid

The session is not over yet but appears that these items will be set.

Mrs. Latour reported there are some items of interest in this session, which include: the amount of faculty/staff raises, whether there will be additional need based financial aid or financial aid operating dollars, public comment period, tech talent pipeline, and the Institutional Partnership Performance Agreement (IPPA). The legislature should finish up by next Saturday, at which time we will have more information.

Chairman Bruce Jennings reported that he had spoken to the Auditors about controls that are in place and introduced the Director of University Audit, Mrs. Faith Belote, to report on the following:

Internal Audit Report

Mrs. Belote reported that the annual audit plan for fiscal year 2018-2019 has been adjusted based on a re-evaluation of the resource estimates required to meet the engagement objectives, scope and audit work program for the Cybersecurity, Facilities Management and Business Office Cash services audits. The independently validated Quality Assurance Self-Assessment Report is complete. Christopher Newport University received a “generally conforms” rating which is the highest possible rating and reflects that the Internal Audit Department has a charter, policies, and processes that are judged to be in accordance with the Code of Ethics and the Standards. Some recommendations were made to include: starting risk assessment a month earlier, minutes to be taken at committee meetings, more formal presentation of internal assessment and the development of an audit committee to work on the audit report format.

Resolution 1-Cancellation of Accounts Considered Uncollectable

Mr. Bill Brauer, Executive Vice President, presented Resolution 1, Cancellation of Accounts Receivable Considered Uncollectable. These are past due accounts in the amount of $169,000 and internal attempts to collect the funds have been unsuccessful. Mr. Brauer noted that $35,000 should have been written off last year but there was a personnel change causing some of these accounts to be missed. After the committee reviewed the accounts, Chairman Bruce Jennings stated that a motion was needed from the committee recommending Resolution 1 be presented to the full board for approval. Mr. Robert Hatten made the motion, seconded by Mr. William R. Ermatinger with all in favor.

There being no further discussion the meeting was adjourned at 9:57 a.m.

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