I. Establish Quorum/Call to Order BOARD OF VISITORS Finance and Administration Committee Friday, New Student Center Board Room MINUTES Mr. Thomas N. Chewning called the meeting to order at 11:14 a.m. Roll call indicated that the following Committee members were in attendance and a quorum was present: Committee Members Present: Dr. Byron L. Cherry, Sr. Mr. Stanley Green, Jr. Mr. Edward L. Hamm Mr. Henry D. Light, Vice Rector/Acting Rector Mr. Julien G. Patterson Board of Visitors Members Present: Mr. Lloyd Banks, Jr. Mr. D. Mychael Dickerson Mrs. Lula B. Holland Mrs. Christel L. Lewis, Secretary Mrs. Beth Murphy Mr. Wade W. Perry Jr. Board of Visitors Members Absent: Mr. Peter J. Kao Members of NSU Staff Present: Dr. Tony Atwater, President Dr. Kim Luckes, Executive Vice President and Chief Operating Officer Dr. Deborah Fontaine, Chief of Staff Ms. Paula Gentius, Assistant to President, Partnerships and University Outreach Dr. William E. Ward, Legislative Liaison Dr. Sandra DeLoatch, Provost and Vice President for Academic Affairs Mr. Gregory A. Davis, Interim Vice President for Finance and Administration Mr. Stephen McDaniel, Interim Vice President for University Advancement Mr. Edward Willis, Interim Vice President for Student Affairs Mrs. Terricita Sass, Assistant Vice President, Enrollment Management Mr. Marty L. Miller, Athletics Director Dr. Clarence D. Coleman, Vice Provost Ms. Mary L. Weaver, Associate Vice President, Finance Dr. Mildred K. Fuller, Vice Provost, Dean of Graduate School Ms. Paula C. Thompson, Legislative and Community Liaison Ms. Pamela F. Boston, University Counsel and Assistant Attorney General
Page 2 Mr. Leah Bradshaw, SGA President, Student Representative to the Board Dr. Page Laws, Dean, Honors College Mr. Ernest M. Ellis, Director, Internal Audit Dr. Adebisi Oladipupo, Chief Information Officer Dr. Arletha McSwain, Interim Dean, School of Extended Learning Dr. Belinda C. Anderson, Dean, College of Liberal Arts Dr. Rowena Wilson, Interim Dean, School of Social Work Dr. James Walke, Interim Assistant Vice President, Institutional Research & Planning Dr. Donna Dabney, Executive Director, Spartan Student Success Center Dr. Bidhu Mohanty, Interim Dean, School of Business Mr. Anthony Walker, Chief of Police Mrs. Davida Harrell-Williams, Director, Auxiliary Services Mrs. Shelia Jones, Budget Director, Planning and Budget Mr. Barry Herring, University Controller Mr. William Ballinger, Director, Capital Planning and Improvement Ms. Paula Shaw, Director, Office of Sponsored Programs Ms. Katrina Miller, Coordinator, Title III Programs Mr. Kelvin Arthur, Norfolk State University Foundation Mr. Shelley Thomas, Fiscal Officer, University Advancement Ms. Stevalynn Adams, Marketing Design and Communications Manager Mr. Obie Smith, Operations Manager, Office of Information Technology Ms. Tanya S. White, Executive Assistant to Vice President for Finance and Business Other: Mr. Stephen Ballard, President, S.B. Ballard Construction Company Ms. Denise Batts, Reporter, The Virginian-Pilot Mrs. Shelvee Osborne, Alumni II. Approval of May 4, 2012, May 30, 2012 and September 14, 2012 Finance and Administration Minutes Mr. Chewning requested a motion to recommend approval to the Board for the May 4, 2012 May 30, 2012 and September 14, 2012 minutes for the Finance and Administration Committee meeting. Mr. Green motioned, and seconded by Mr. Light, and unanimously approved by the Finance and Administration Committee to recommend approval of the May 4, 2012, May 30, 2012 and September 14, 2012 minutes. III. Discussion Items a. Status Report on Auditors of Public Accounts Letter Mr. Chewning stated that some may be missing the weekly report but now he is receiving a daily report at this since we are in the red zone and it s the last few days before the Auditor of Public accounts comes in January to begin review. He said this is in response to
Page 3 the Internal Auditor s report and Mr. Davis and Mr. Ellis have discussed the findings. Mr. Chewning said that he would be sending the daily reports to the full Board. Mr. Hamm stated that he wanted to see the report and was provided a copy by Mr. Chewning. Mr. Chewning said that the items would be discussed in with the Internal Auditor in closed session. Mr. Davis gave a brief synopsis on the audit letter that the Auditors provided in for the fiscal year 2011 audit. He said that the auditors had questions that could not be answered because they did not have enough information and the people who performed the transactions were not available and therefore the audit was not completed. Mr. Davis said one of the critical deficiencies identified were the reconciliations and those items have been reassigned the team has established milestones so that we will be ready by December 31, 2012 for Auditors to come in January. He also said that Stephen Walker from the Auditor of Public Accounts was coming on December 11, 2012 to provide feedback on what has been completed so far. Mr. Chewning stated that he would speak to Mr. Stephen Walker after he had come to campus to get him impression of the records. Mr. Davis said that he was not coming to give an opinion but as a consultant. Dr. Cherry said that as an auditor that he would form an opinion. Mr. Green asked were we at full staffing levels. Mr. Davis responded we are making progress and have temporary CPA s assisting but the critical positions have been filled. Mr. Chewning said the staff is giving their full attention to being prepared for the Auditors. Dr. Atwater stated he had been having frequent meetings with the staff and the audit items were a top priority. He said that there were issues with personnel and systemic issues such as lack of skill set and that some retired. Dr. Atwater also said that Mr. Davis was working with the Controller and staff to put new policies and procedures in place and doing their due diligence. Mr. Banks asked what internal controls were in place. Mr. Davis responded that right now the staff is working on bringing the reconciliations and other items current. He said during that process, policies and procedures are being developed to make sure that reconciliations and other processes are kept up and completed timely. Mr. Davis said he plans to be current by March 2013. Mr. Chewning stated that there was some sacrifice because we were not able to double our resources but would learn and make internal controls along the way. Mr. Hamm asked about the certifications to the State for monthly reconciliations. Mr. Davis responded that we are not certifying because still completing some reconciliations. Mr. Hamm asked would we be ready for the auditors by December 31. Mr. Davis said the plan was to have all the reconciliations completed by that time.
Page 4 Mr. Patterson said that there should be a system in place for improvement to check the procedures are being followed in 2013. Mr. Davis responded that the system would not be able to be applied right not but staff is continuing to make ongoing assessments as they work. Mr. Davis said that the department is under resources compared to other Universities of the same size. Mr. Patterson stated that we needed to know what direction we are going in and a system in place would help that. Mr. Chewning said we want to be exceptional in everything but need to get ground level first and hire quality type people that are right for the job. b. Financial Statements for Year Ending June 30, 2012 Mr. Davis gave a brief overview of the year-end financial statements. He referred the Finance Committee to the unaudited Financial Statements of Revenues, Expenses and Changes in Net Assets which reported $170,518,591 for fiscal year 2012 and $154,512,713 for fiscal year 2011. Mr. Davis also informed the Board that he had provided them with the full draft consolidated financial report for the year ending June 30, 2012. Mr. Banks and Mr. Hamm asked some specific questions about the Financial Statements. Mr. Chewning said that everyone was concerned about the operations based from year to year and the auditors were reviewing the numbers also and if there was a surplus. He said that we needed to examine the budget and variances but some of the numbers may not be accurate but the document is still in draft format so that should be considered. Mr. Chewning stated that the numbers and information will reveal a lot of other numbers that we may not have been initially aware of. Mr. Chewning stated that a tight budget had been approved by the Board for fiscal year 2013-2014. He also said that we had to look at reallocations and all of these items affected the financial statements. Mr. Patterson suggested we include a copy of the full approved budget in the Board books each time so that all could refer to it if necessary. c. Flat Rate Tuition Proposal for FY 2013-2014 Mr. Chewning stated that the Flat Rate Tuition proposal for fiscal year 2013-2014 had been discussed in the Academic Affairs Committee meeting and that the Finance Committee needed to vote on it. The proposal included to change current per credit house tuition and fee structure to a Flat Rate for students enrolling in 12-18 credit hours. Mr. Chewning asked was there any discussion and for a motion. Action Item Mr. Hamm motioned, and seconded by Mrs. Holland, and unanimously approved by the Finance and Administration Committee to recommend approval of the Flat Rate Tuition Proposal for Fiscal Year 2013-2014.
Page 5 d. Legislative Affairs Talking Points and Budget Amendment Requests Dr. Ward discussed the Operating and Capital Budget Amendment requests for the Governor s Budget for 2013. The items included: Capital Requests Brown Hall Funding Request $52,758,000 (Construction) New Science Building Funding Request $ 1,825,000 (Pre-planning) Operating/General Fund Requests Need-Based Aid Funding Request $ 800,000 Micro- and Nano- Technology Center MiNac (Cleanroom) Funding: $626,500 Nursing Support Funding Request: $600,000 Spartan Crusade for Academic Success Funding Request: $200,000 Dr. Atwater stated that Brown Hall was a high priority. He said since the building was built in the 1950s and thirty percent of the classes are held in that building and it posed safety and health issues which were of great concern for students and faculty. e. Capital Projects Update Mr. Bill Ballinger gave a brief synopsis of capital projects that would be coming on-line for the campus. He stated that the plans included Brown Hall and keeping some of the new as well as a new entrance gateway on Park Avenue. Mr. Ballinger said that there would be a road built to split the new Brown Hall so that it would fit into the Campus Master Plan and to add the Little Brown Theatre that would have six hundred seats. He said that there would be homage paid to the old Brown Hall in this structure design. Mr. Ballinger stated that that the New Library was considered the focal and center point of the University. He also said all the other building around the Library would complement the new quad area design of the Master Plan. Mr. Ballinger introduced Mr. Stephen Ballard of SB Ballard Construction. Mr. Ballard said that he was excited to be working on the New Nursing and Classroom project. He said that the costs of materials had been going down and that was very helpful when planning and constructing the building but it was still very competitive. Mr. Ballard said that we expected the building to be finished in 2014 if all goes as planned. IV. Information Item a. Reallocation Plan Mr. Davis indicated that the Governor s Office requested all higher education agencies to provide a budget reallocation proposal and Norfolk State University s portion was $446,113 for FY 2013 and $594,817 for FY 2014. A copy was provided to the Finance Committee. He said that the request identified two and three percent reductions for 2013-2014 and were based on the six year plan submissions. Mr. Davis said that we had not heard anything back from the Governor s Office on our submission.
Page 6 V. Closed Session pursuant to 2.2-3711A.1, Code of Virginia a. Internal Audit s Report Mr. Chewning requested a motion to convene into closed session. Mrs. Lewis motioned, seconded by Mr. Patterson and unanimously approved by the Finance and Administration Committee of the Norfolk State University Board of Visitors to move to adjourn and reconvene in Closed Session as permitted by 2.2-3711.A.1 of the Code of Virginia, for the specific purpose of discussing personnel matters. The Finance and Administration Committee of the Norfolk State University Board of Visitors having reconvened in open session, took a roll call vote on certification that (i) only public business matters lawfully exempted from open meeting requirements, and (ii) only such public meeting business matters as were identified in the motion by which the Board of Visitors closed meeting was convened were heard, discussed or considered in the meeting by the Finance and Administration Committee. Any member of the Board who believed that there was a departure from the requirements as stated above was asked to so state prior to the vote, indicating the substance of the departure that in his or her judgment has taken place. The Finance and Administration Committee reconvened in open session at 1:01 p.m. A roll call vote was taken for Board members present who certified the motion: Banks... yes Chewning... yes Green... yes Holland... yes Light... yes Patterson... yes Cherry... yes Dickerson... yes Hamm... yes Lewis... yes Murphy... yes Perry... yes VI. Adjournment Mr. Chewing asked if there was any other business. Mr. Green made a motion to close the meeting and Mr. Light seconded the motion. There being no further business, the meeting adjourned at approximately 1:03 p.m. Respectfully submitted, Gregory A. Davis, Interim Vice President for Finance and Administration Thomas N. Chewning, Chairperson Finance and Administration Committee