Finance and Facilities Committee Meeting February 3, 2023

The Finance and Facilities Committee met on Friday, February 3, 2023 at 8:30 a.m. in the David Student Union Boardroom, with Chairman Robert R. Hatten, Esq. presiding.

Present from the Committee

Mr. Robert R. Hatten, Esq.
Mr. John Lawson
Mrs. Terri M. McKnight, CPA
Mrs. Lindsey Carney Smith
Mrs. Judy Ford Wason

Present from the University

Mrs. Adelia Thompson, Interim President
Mrs. Jennifer Latour, Vice President for Fianance and Planning/Chief Financial Officer
Ms. Christine Ledford, Vice President for Administration and Auxiliary Services
Mrs. Ashleigh Andrews, Associate Vice President/Chief Human Resources Officer
Mrs. Sarah Herzog, Director of Planning and Budget
Mr. Tom Kramer, Executive Director for the Wason Center and Legislative Liaison
Mr. Bruce Bronstein, Executive Director for the Ferguson Center for the Arts
Mrs. Rhonda Wissinger, Executive Assistant

Public in Attendance

None

Chairman Robert Hatten called the meeting to order and welcomed everyone in attendance.

Approval of Minutes from the November 18, 2022 meeting

Chairman Robert Hatten asked for a motion to approve the minutes from the November 18, 2022 meeting and Mrs. Terry McKnight made the motion for approval that was seconded by Mrs. Lindsey Carney Smith, with all in favor.

Chairman Robert Hatten introduced Mrs. Jennifer Latour, Vice President for Finance and Planning and Chief Financial Officer to provide the following report:

Legislative Update

Mrs. Latour reported that this is day 24 of a 45 day session of the General Assembly and both chambers would be presenting their budgets on Sunday. She presented the 2022–2024 biennial budget tracking sheet which includes Christopher Newport University’s budget items, capital projects and central budget actions. It also includes fall budget requests for FY 2024, the Governor’s budget bill for FY 2023 and FY 2024 and member amendments for FY 2024. Mrs. Latour reviewed the FY 2024 budget amendment requests which include an increase of $3.2 million in base operating support which helps to cover utility cost increases, library materials, and student success programs and helps to maintain opportunities for student employment. An additional request was made for $1.3 million dollars to replace the Plant Operations building which has become outdated for their needs.

Mrs. Latour introduced Mr. Tom Kramer to highlight the higher education bills we are following. He stated there are three bills in particular which could bring significant cost to Christopher Newport University if they are passed. Two of them are veteran friendly and one bill would involve the way bids are handled through procurement when soliciting for construction teams.

Statement of Revenues and Expenditures for the Six Months Ended December 31, 2022

Mrs. Latour reported that Dining Hall reserves were reduced due to food and supply cost increases. The university was able to deposit $2 million into the reserve for Residence Halls, $1.6 million into the reserve for Auxiliary and a new reserve was created for the David Student Union in the amount of $500,000. The Ferguson Center for the Arts received the Shuttered Venue Grant and they were able to create a reserve of $500,000 as a result.

Resolution 1: Cancellation of Accounts Receivable Considered Uncollectable

Mrs. Latour explained that a certain number of University Accounts Receivablesare past due and internal attempts to collect the funds have been unsuccessful. Resolution 1: Cancellation of Accounts Receivable Considered Uncollectable authorizes that certain past due Accounts Receivable be written off the University’s accounting records in the amount of $63,533.60. A motion was put forth by Mrs. Terri McKnight, seconded by Mrs. Lindsay Carney Smith with all in favor. This resolution moved to the full board for approval.

Capital Projects Update

Ms. Ledford reported the Integrated Science Center Phase III is underway and the preliminary design has been submitted. The working drawings are almost complete. The revised cost of this project is $90.7 million dollars, the original cost was $58.5 million. The increase in cost is due to inflation and the cost of construction materials. There is a two year construction timeline and construction is expected to be complete by Fall of 2025.

The new Administration Building/CNU North will replace the existing CNU North Building and will house the offices of Procurement, Capital Outlay Management, Human Resources, Advancement, CNU Foundations, and Communications and Public Relations. Completion is expected in September 2023. Once the building is complete, employees will move to the new building and the existing building will be demolished.

Infrastructure Repairs and Improvements that have been awarded and underway are:

Central Chiller Plant-installation of a new 650-ton chiller to replace the existing 320-ton chiller
Plant Operations Roof Replacement- began in January 2023
Ratcliffe Boiler and Water Heater Replacement- replacing two existing 54-year boilers and two existing gas fired water heaters that are over 20 years old

Two projects that are under review are the Ferguson Center Roof Replacement and the Ratcliffe High Roof Replacement. A future project will be the Plant Operations WarehouseRenovation and Expansion.

SWaM Report for November 30, 2022

Ms. Ledford reported the SWaM target goal is 42% and Christopher Newport is currently at 48.2%.

There being no further discussion the meeting was adjourned at 9:15 a.m.