Joint Finance and Audit and Building and Grounds Committee Meeting April 16, 2021

The Finance and Audit and Building and Grounds Committees met on Friday, April 16, 2021 at 9:30 a.m. in the Mary M. Torggler Fine Arts Center, Room 205, 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
The Honorable Gabriel A. Morgan, Sr.

Present from the University

Mrs. Adelia Thompson, Chief of Staff
Mrs. Jennifer Latour, Vice President for Finance and Planning/CFO
Ms. Christine Ledford, Vice President for Administration and Auxiliary Services
Mrs. Faith Belote, Director of University Audit
Ms. Sarah Herzog, Director of Planning and Budget
Dr. Johnny Finn, Associate Professor, Faculty Senate
Mrs. Rhonda Wissinger, Executive Assistant

Public in Attendance

None

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

Approval of Minutes from the February 7, 2020 meeting

Chairman Bruce Jennings asked for a motion to approve the Finance and Audit minutes from the February 7, 2020 meeting and The Honorable Gabriel Morgan, Sr. made the motion for approval that was seconded by Mrs. Terri McKnight, with all in favor.

Chairman Bruce Jennings made the motion to approve the Building and Grounds minutes from the February 7, 2020 meeting that was seconded by Mr. Bill Ermatinger with all in favor.

Chairman Bruce Jennings introduced Ms. Jennifer Latour, Vice President of Finance and Planning/Chief Financial Officer and she reported on the following:

Budget Report

Mrs. Latour reported that since our last meeting in February, $4,128,127 additional Coronavirus Relief Funds (CRRSAA) were received, as part of the second stimulus package while President Trump was in office. These funds were used to offset Housing and Dining shortfalls. A portion will also be used for Student Financial Aid. The University anticipates receiving approximately $7 million in American Rescue Plan Act (ARPA) Funds from the third stimulus package under President Biden. Half of these funds will go towards Institutional Support which will allow us to make the recommendation to freeze tuition and fees. The other half of the ARPA funds will be used for Student Financial Aid.

For FY21, the hiring freeze and the freeze on non-essential spending produced savings to the University. These savings, combined with the CRRSAA funds, offset the projected tuition and fees and room and board revenue losses such that FY21 is projected to be balanced at year-end.

The 2021 General Assembly has adjourned and the Fiscal Year 2022 Budget Actions are as follows:

$2.4M to support university base operations
$1.0M to support opening the Torggler Fine Arts Center
$895K to support unanticipated cost increases
$249K to support need-based undergraduate financial aid
5% faculty and staff salary increase

The 5% faculty and staff salary increase will take place in June and appear on the July 1st paycheck. There have been no pay increases since June 2019. This will be reflected in the operating budget which will be brought to the Committee at the June meeting. Items that we are working on for May/June are:

SCHEV Enrollment Projections/Degree Estimates Submission
FY22 Operating Budget Development
Six Year Plan Submission

FY21 Tuition and Fees and Room and Board Comparison Tables

Ms. Latour reviewed the Tuition and Fees and Room and Board Comparison tables noting that on Table 1, Tuition and Mandatory E&G Fees, the University ranked 7th, dropping from 6th place last year. Table 2, Comprehensive Fees (function of student support system), the University ranked 4th position. Table 3, Housing and Dining Fees, last year, the University was the 2nd most expensive and now is in the 5th position. The University did not change position in Table 4, Sum Total of all Costs. Table 5, Out of State Student costs, we ranked 12th.

Resolution 3: FY22 Tuition and Fees and Room and Board

Ms. Latour reviewed Resolution 3: FY22 Tuition and Fees and Room and Board and reported that there were no increases for our in-state or out-of-state students for the second year in a row. It is actually our third year in a row for no increase in tuition, which means that the Fall 2018 Freshman Cohort will have their full four years, having seen no increase in tuition at all. Our part time and graduate rates, and room and board rates, show no increases recommended.

The Resolution, in the last paragraph, establishes a special rate, at $100/credit hour, for our high school students who are in the Community Captains program taking the statistics class. The said rate shall be $98 for tuition and $2 for a technology fee per credit hour. This special rate will be effective with the Spring 2021 academic term.

The recommendation to the Board is to refrain from increasing costs to our students and families and to hold, for the second year in a row, all undergraduate, graduate, in-state and out-of-state, tuition and fees and room and board at academic year 2019-20 levels.

Chairman Bruce Jennings asked for a motion to approve Resolution 3: FY22 Tuition and Fees and Room and Board as presented. Mr. Bill Ermatinger made the motion for approval that was seconded by the Honorable Gabe Morgan, Sr., with all in favor. The resolution will be presented to the full board for approval.

Chairman Bruce Jennings introduced Ms. Christine Ledford, Vice President for Administration and Auxiliary Services to report on the following:

Capital Projects Summary

Ms. Ledford reported that the Fine Arts Center has a temporary occupancy permit. Whiting and Turner are working through the punch list of items to be taken care of. Ms. Holly Koons, Executive Director of the Fine Arts Center and her staff moved into their offices on April 1st, other faculty will move in on May 6th.

The Trible Plaza Fountain project has been awarded a contract, Henderson, and the project is moving forward. The DSU Roof will be replaced over the summer. Both of these projects will be done during the time period of May 17-August 15. HVAC improvements were able to be completed with additional funds from the State and there are 18 projects that are ongoing at this time.

Internal Audit Report

Chairman Bruce Jennings reported that he had a one on one conversation with the State Auditor and it went very well. Chairman Bruce Jennings introduced Mrs. Faith Belote, Director of University Audit to provide the Internal Audit Report.

Mrs. Faith Belote provided an update on staffing; the posting for the IT Internal Auditor position has closed and four applications were received. The Search Committee has identified three candidates for initial virtual interviews.

The planning phase is underway for the Intercollegiate Athletics NCAA audit. The annual risk assessment process planning has begun and will help provide management feedback and senior leadership guidance needed to develop our annual risk-based audit plan for FY2022. The drafted Fraud Policy is under review by the University Policy Committee.

The Admission audit report was presented. There are currently thirteen open audit points targeted for completion by September 1, 2021. This is the first time Admissions has been Audited and they did an excellent job of making improvements. No instances of fraud found. Additional controls will be added for conflict of interest. Admissions will write a conflict of interest policy, provide training and have a conflict of interest statement.

Mr. Bill Ermatinger asked if we will be separating the two committees and Mrs. Latour reported there would be a Resolution presented at today’s Board of Visitor’s meeting to separate the two committees. The committees will be Operations, Audit and Risk and then Finance and Facilities.

Chairman Bruce Jennings asked for a motion to adjourn the meeting, Mr. Bill Ermatinger made the motion to adjourn the meeting that was seconded by Mrs. Terri McKnight with all in favor.

There being no further discussion the meeting was adjourned at 10:28 a.m.