Operations, Audit and Risk Committee Meeting September 16, 2022

The Operations, Audit and Risk Committee met on Friday, September 16, 2022 at 10:15 a.m. in the David Student Union Board Room with Chair Terri M. McKnight presiding.

Present from the Committee

Terri M. McKnight, CPA, Chair
Regina Brayboy
Robert R. Hatten, Esq.
Kelli Purdy Meadows, CPA
Lee Vreeland

Absent from the Committee

None

Present from the University

Ms. Ashleigh Andrews, Assistant Vice President for Finance and Planning
Ms. Faith Belote, Director of Internal Audit
Mr. Bob Colvin, Interim Chief of Staff
Mr. Andrew Crawford, Chief Information Officer
Mr. Bryan Donohue, Director of Emergency Management
Ms. Stephanie Hautz, Director of Human Resources
Ms. Sarah Herzog, Director of Planning and Budget
Ms. Jennifer Latour, Vice President for Finance and Planning and Chief Financial Officer
Ms. Christine Ledford, Vice President for Administration and Auxiliary Services
Ms. Michelle Moody, Director of Title IX and EO
Mr. Brian Puaca, Faculty Senate Representative
Ms. Diane Reed, University Comptroller
Ms. Adelia Thompson, Interim President
Ms. Rhonda Wissinger, Executive Administrative Assistant

Public in Attendance

None

At 10:17 a.m. Chair McKnight called the meeting to order and welcomed everyone in attendance. She made a special welcome to our newest committee members: Ms. Regina Brayboy, Ms. Kelli Purdy Meadows and Ms. Lee Vreeland. She also welcomed Mr. Bryan Donohue, the new Director of Emergency Management.

Approval of Minutes

Chair McKnight asked if everyone had a chance to review the Operations, Audit and Risk Committee minutes from April 14, 2022 and June 8, 2022. There being no comments, edits or suggestions, Chair McKnight called for a motion to approve the minutes as presented. Ms. Regina Brayboy provided the motion, which was seconded by Mr. Robert R. Hatten, Esq. and the minutes were approved by unanimous vote of the committee.

Report from the Director of Title IX and Equal Opportunity

Ms. Michelle Moody introduced herself and gave an overview of her background and the work she does for Title IX and Equal Opportunity. She also explained the laws governing Title IX and Equal Opportunity and how they have changed through the years. She explained how every employee has to undergo in person Title IX training when they are first hired and then complete a virtual training annually thereafter. In August, Ms. Moody conducts Title IX training for all athletes and coaches. She is also involved in all hiring processes as the Equal Opportunity Director to make sure the University is in compliance with all Federal and State Equal Opportunity laws. At the conclusion of her report, she thanked the committee for their time and the administration and Board of Visitors for supporting the office of Title IX and Equal Opportunity.

Internal Audit Report

Ms. Faith Belote, Director of University Audit, reported on the status of the Audit Plan for FY 2022-2023. The Faculty Recruitment and Succession Planning audit fieldwork is underway. The Maxient Software Application audit fieldwork is complete and the reporting phase is in progress. The report will be presented at the November meeting. Budgetary resources have been allocated for an audit management software solution. As a result, internal audit plan hours may need revisions to support planning, testing and implementations.

Ms. Belote reported on the summary status of audit issues stating the Laboratory Safety audit follow-up is progressing well. One audit point is complete, and thirteen remain open, targeted for completion by April 1, 2023. The Disaster Recovery Planning audit follow-up is a work in progress. Four open points are currently targeted for completion by June 1, 2023. The final NCAA audit point has been closed.

For the State of Organizational Independence, the Director of Internal Audit has confirmed that the internal audit activity is independent and objective in performing its audit work, maintaining an impartial, unbiased attitude. There has been no personal conflict of interest or restrictions of access to functions, records, personnel, properties and systems.

Ms. Belote gave an overview of the Annual Quality Assurance and Improvement Program stating the report for FY 22 has assessed the efficiency and effectiveness of the internal audit activity and identified goals for FY 23. The goals include to purchase internal audit workpaper software, to promote fraud awareness and fraud risk assessment, develop a formalized IT risk assessment method for identifying and prioritizing risks, and to continue to build and cultivate client relationships. The performance of an internal assessment that evaluates the internal audit activity’s conformance with the IIA Standards resulted in three enhancements identified which are to monitor audit reports for appropriate length, collaborate with College and University auditors to research leading practices for implementing formalized feedback, and enhance information sharing opportunities. ery Audit is complete and the Laboratory Safety Audit follow-up is going well.

Resolution 2: Update of the Internal Audit Charter

Ms. Belote stated that revisions are recommended for an amendment to the Internal Audit Charter to align with practices of the International Professional Practices Framework supplemental guidance modeled by the Institute of Internal Auditors. With the formation of the Operations, Audit and Risk Committee, formerly known as the Finance and Audit Committee, the charter needed to be updated to reflect the formation of the new committee.

Chair McKnight called for a motion to update the Internal Audit Charter, Mr. Robert R. Hatten, Esq. provided the motion, which was seconded by Ms. Regina Brayboy with all in favor. The Resolution will move forward to the Board of Visitors for approval.

Ms. Jennifer Latour, Vice President for Finance and Planning/CFO introduced Ms. Diane Reed, University Comptroller to provide the ARMICS report:

Annual ARMICS Certification and Management Summary

Ms. Diane Reed, University Comptroller reported that ARMICS stands for Agency Risk Management Internal Control Standards and is mandated by the State comptroller for all State agencies within the Commonwealth of Virginia. ARMICS requires two levels of evaluation, Agency Level Evaluation to be completed every 3 years and Transaction Level Evaluation to be completed annually. Our next Agency Level Evaluation will take place FY23. The Transaction Level Evaluation was completed and no significant weaknesses in the design or operation of internal controls at the transaction levels were found in existence as of June 30, 2022.

Ms. Jennifer Latour introduced Stephanie Hautz, Director of Human Resources to provide the Annual Report on Workforce Management/Succession Planning:

Annual Report on Workforce Management/Succession Planning

Ms. Stephanie Hautz, Director of Human Resources explained that the Workforce Management/Succession planning report for FY22 is a data analytics report that evaluates four areas: Continuity of Operations, Recruitment, Retention & Engagement, and Workforce Development. The report identifies “Critical” and “Executive Team” positions and Retirement eligibility (Continuity of Operations), looks at applicant and hiring trends, time-to-fill and vacancies (Recruitment). Identifies average years of service, internal mobility and turnover rates (Retention & Engagement) and reviews internal professional development initiatives (Workforce Development).

Ms. Hautz stated the report identified there are 68 positions that are critical roles, 8 Executive Positions and 73 positions that are eligible for retirement. Of the 73 eligible for retirement; 5 are in critical roles and 3 are Executive team (2 of these have already retired). The report also revealed that Christopher Newport University has had an increase in applicants of 35%, the time to fill positions is 73.4 days down from 108 days last year. Average years of service for employees is 8.4 years.

Ms. Hautz reported 3 objectives for the upcoming year which are to increase marketing efforts, partnerships and training with a direct focus on increasing candidates with disabilities and veterans. To promote the university as an economic asset for the region by striving to become an Employer of Excellence in our community and to focus on recruiting and retaining a diverse work staff.

Report on Professional/Administrative Faculty

Ms. Latour explained that new hires for Professional/Administrative Faculty are required to be reported to the Board of Visitors. This is for informational purposes only.

There being no further business the meeting adjourned at 11:18 a.m.