Operations, Audit and Risk Committee Meeting June 11, 2021

The Operations, Audit and Risk Committee met on Friday, June 11, 2021 at 10:00 a.m. in the Washington Room of the David Student Union, with Chair Terri McKnight presiding.

Present from the Committee

Mrs. Terri M. McKnight, CPA, Chair
Mr. William R. Ermatinger
Mr. W. Bruce Jennings
The Honorable Gabriel A. Morgan, Sr.

Present from the University

Mrs. Ashleigh Andrews, Assistant Vice President for Finance and Planning
Mrs. Faith Belote, Director of University Audit
Mr. Andrew Crawford, Chief Information Officer
Mrs. Sarah Herzog, Director of Budget and Planning
Mrs. Jennifer Latour, Vice President for Finance and Planning/Chief Financial Officer
Ms. Christine Ledford, Vice President for Administration and Auxiliary Services
Mrs. Adelia Thompson, Chief of Staff
Ms. Diane Reed, University Comptroller
Mrs. Rhonda Wissinger, Executive Assistant

Public in Attendance

Ms. Linda Wade, Audit Director

Chair McKnight called the meeting to order and welcomed everyone in attendance. She introduced Ms. Linda Wade, Audit Director. Ms. Wade is the Auditor of Public Accounts and presented the findings for the FY 2020 Financial Statements.

Overview of Committee

Chair McKnight gave an overview of the committee, given it is a new committee with its charge recently updated in the Bylaws.

The charge as stated in the Bylaws is, “It shall be the duty of this Committee to oversee the University’s entire audit function, both independent and internal, and to ensure the effective systems of accounting and internal controls, as needed. The Committee shall have direct access to internal and external auditors. The Committee shall examine the annual audited financial statements of the University and to conduct other such audits as deemed necessary for the good order of the University’s finances. The Committee shall also receive periodic reports on university management of operational, compliance, strategic and reputational risks, including Information Technology and Security, Human Resources, and Title IX and Equal Opportunity.”

Chair McKnight stated this committee is bringing together all the areas that comprise an Enterprise Risk Management program-Audit, HR, IT, Emergency Management, Title IX & EO, and ARMICS, which is Agency Risk Management and Internal Control Systems program that falls under the University’s Business Office.

Review of Minutes from the April 16, 2021 Finance and Audit and Building and Grounds Committee meetings

Chair McKnight asked if everyone had a chance to review the minutes from the April 16, 2020, Finance and Audit and Building and Grounds Committee meetings and asked if there were any edits needed for the minutes. No edits were needed.

Chair McKnight introduced Ms. Linda Wade, Audit Director to provide the Audit Findings.

Report from the Auditor of Public Accounts on the FY20 Financial Statements

Ms. Linda Wade presented the findings of the FY 2020 Financial Audit which reviewed the Financial Statements and Revenues and Expenditures for the year, as well as internal controls and compliance. Ms. Wade was very complimentary of staff and stated the Audit was almost 100% remote and they were only in the office 1-2 days. There was a discussion among the committee regarding the findings and staff left the room while deficiencies within the audit were discussed with the committee. Upon returning to the room, Chair McKnight commended Diane Reed’s (University Comptroller’s) staff on a job well done.

Chair McKnight introduced Mrs. Faith Belote to report on the following:

Internal Audit Report

Mrs. Faith Belote, Director of University Audit, reported on the annual audit plan which was developed based on a documented risk assessment. The proposed audits for July 1, 2021 through June 30, 2022 are a review of Athletics, NCAA Division III, Laboratory Safety, Faculty Recruitment and Succession Planning, Student Accounts and IT Audits (IT Disaster Recovery Planning and Maxient Software Application). The Annual Audit Plan Proposal also includes follow up activities, special projects, training, risk assessment and IT risk assessment.

A motion to approve the Annual Audit Plan Proposal was put forth by The Honorable Gabriel A. Morgan, Sr. and was seconded by William Ermatinger with all in favor of approving the risk based plan as presented.

Report from the Chief Information Officer

Mr. Andrew Crawford, Chief Information Officer, provided a Power Point Presentation, which gave an overview of the Office of Information Technology Services. The presentation consisted of the mission, goals and motto of Information Technology Services. Mr. Crawford reported on how many students, faculty and staff are supported throughout the year, as well as the computer labs and workstations that are serviced. He discussed the campus infrastructure, organizational structure of the 36 employees within the department, campus IT affiliates (16 employees), governing bodies and processes, advisory bodies, COVID adaptations, a cyber-security overview and how Virginia Public Institutions compare to Christopher Newport University.

There being no further discussion the meeting was adjourned at 11:29 a.m.