Finance and Audit Committee Meeting April 26, 2019

The Finance and Audit Committee met on Friday, April 26, 2019 in the Madison Room of the David Student Union, with Chairman Bruce Jennings presiding.

Present from the Committee

Mr. William R. Ermatinger
Mr. Robert R. Hatten, Esq.
Mr. W. Bruce Jennings
Mrs. Terri M. McKnight, CPA
Mr. N. Scott Millar
The Honorable Gabriel A. Morgan, Sr.
Mrs. Kellye L. Walker, Esq

Present from the University

Mr. Paul Trible, President
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. William Donaldson, Assistant Professor
Mrs. Rhonda Wissinger, Executive Assistant

Chairman Bruce Jennings called the meeting to order and welcomed everyone in attendance.

Approval of Minutes from the February 15, 2019 meeting

Chairman Bruce Jennings asked for a motion to approve the minutes from the February 15, 2019 meeting and Mr. William R. Ermatinger made the motion for approval that was seconded by Mr. N. Scott Millar, with all in favor. Chairman Bruce Jennings introduced Mrs. Faith Belote, Director of University Audit, to present the Internal Audit Report.

Internal Audit Report

Mrs. Belote reported that the annual audit plan 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 Admissions audit. The entrance conference is scheduled for May 9, 2019. The cash handling audit report on Business Office/Cash services was presented. The Clery Act and the University Bookstore audits are complete. There are currently 16 open audit points targeted for completion by October 1, 2019. Cybersecurity field work is underway and they are currently working on risk assessments for general and IT. The results of these risk assessments will be presented at the May meeting along with the 2020 audit plan. The audit report and executive summary format have been revised based on the recommendations of the audit report committee consisting of Cindi Perry, Bill Brauer and Jennifer Latour. The communication of the results process has been streamlined and should increase the efficiency of report issuance. The APA (Auditor of Public Accounts) exit conference is scheduled for May 21, 2019.

Chairman Bruce Jennings introduced Mr. Bill Brauer, Executive Vice President, to report on the following:

Statement of Revenues and Expenditures for the Eight Months Ending February 28, 2019

Mr. Brauer reported that revenues are up due to student fees and appropriations and that expenses are down. Other than anticipated increases in student tuition and fees; and expenditures in academic and institutional support, all accounts compared to the prior year are within reason. The negative cash balance for the Ferguson Center Concert Hall continues to be reduced and it is projected to be reduced by half at year end. There has been a steady improvement in the Ferguson Center Concert Hall. This year there were more sold out shows and higher percentages of seats being sold to offset the negative balance.

SWaM Report for the Eight Months Ended February 28, 2019

Mr. Brauer reported that Christopher Newport University continues to beat the SWaM target goal of 42%, coming in at 48% on $14 million in expenditures and exceeding the targets in each of the categories. Chairman Bruce Jennings introduced Mrs. Jennifer Latour, Vice President for Strategy and Planning, to report on the following:

Resolution 1 : FY 2020 Tuition and Fees, Room and Board

Mrs. Latour reminded the Committee of the Executive Committee’s April 5, 2019 Resolution to revise the Captains Commitment, freezing tuition at current levels for both in-state and out-of-state undergraduate students due to the receipt of new state funding. The Resolution now in front of the Committee was to fully break out tuition and fees, and room and board rates. For Room and Board, the University recommended a total increase of $300, which is less than a 2% increase over last academic year. When combined with the tuition and fees, this translates to an overall increase of 1.8% for in-state students, and 1.2% for out-of-state students for academic year 2019-20. Mrs. Latour also recommended that the tuition and fee rates for part-time and graduate students be frozen at FY 2019 levels.

Mrs. Latour further explained that the majority of the $300 room and board increase was due to the need to build in the anticipated lease payment increase for a new dorm that will open in fall 2020. Additionally, the proposed increases will support staff salary and fringe benefit increases and reinvestments in building infrastructure and equipment.

After the committee reviewed the tables, Chairman Bruce Jennings called for a motion to recommend Resolution 1: FY2020 Tuition and Fees, Room and Board be presented to the full Board for approval. Mr. N. Scott Millar made the motion, seconded by Ms. Terri M. McKnight, with all in favor.

There being no further discussion the meeting was adjourned at 10:14 a.m.