Operations, Audit and Risk Committee Meeting April 14, 2023

The Operations, Audit and Risk Committee met on Friday, April 14 at 10:43 a.m. in the David Student Union Board Room with Chair Terri M. McKnight presiding.

Present from the Committee

Ms. Regina Brayboy
Mrs. Terri M. McKnight, CPA, Chair
Mr. Robert R. Hatten, Esq. (arrived at 11:12 a.m.)
Ms. Kelli Purdy Meadows, CPA (remote participation)
Ms. Lee Vreeland

Ms. Kelly Purdy Meadows participated remotely by phone from Richmond, VA. Remote participation was allowed due to the distance between her primary residence and the meeting location pursuant to Code of Virginia §2.2-3708.3(B) (3).

Other Board Members Present

none

Others Present

Mrs. Jennifer Latour, Vice President for Finance and Planning/Chief Financial Officer
Ms. Christine Ledford, Vice President for Administration and Auxiliary Services
Mrs. Lisa Duncan Raines, Vice President for Enrollment and Student Success
Other CNU faculty and staff members

Chair McKnight called the meeting to order and welcomed everyone in attendance.

Approval of February 3, 2023 Minutes

Chair McKnight asked if everyone had a chance to review the Operations, Audit and Risk Committee minutes from February 3, 2023. 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 Ms. Lee Vreeland and the minutes were approved by unanimous vote of the committee.

Internal Audit Report

Mrs. 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 report is complete. Student Accounts audit fieldwork is underway. The StarRez Software Application audit fieldwork has concluded, and the reporting phase has begun. The Student Accounts and StarRez audit reports will be presented at the June meeting. Internal Audit is working with the Procurement Office on the Request for Proposal (RFP) process to purchase an automated work paper solution. Planning has begun for the annual campus-wide and information technology risk assessment and will help provide management feedback and senior leadership guidance needed to develop our annual risk-based audit plan for FY 2024.

Mrs. Belote reported on the summary status of audit issues stating the Faculty Recruitment and Succession Planning audit report was presented in the board materials. Currently, 16 open audit points are targeted for completion by September 30, 2023. The Maxient audit follow-up is progressing, with one audit point closed and eight points targeted for completion by May 15, 2023. The Disaster Recovery Planning audit follow-up is a work in progress, with one point closed and three open points targeted for completion by June 1, 2023. Eleven Laboratory Safety audit points are complete. Two points remain open, targeted for completion by June 30, 2023, pending the Academic Lab Safety Specialist hire.

Chair McKnight requested to have a further review of the background check policy and consideration of minimizing employees reporting to campus without their background check complete. She mentioned that sometimes there are delays in obtaining background checks with people that have lived internationally, but it is a risk to have them begin work without having the background check complete.

Mrs. Latour introduced Mrs. Ashleigh Andrews, Associate Vice President/Chief Human Resources Officer to provide an update on the Compensation Study.

Report from Associate Vice President/Chief Human Resources Officer

Mrs. Andrews reported that Human Resources conducted a compensation study in 2022 for classified/hourly employees to improve the compensation and retention rate of employees. At the completion of the study, 46% received an increase for a total cost to the University of $900,000. A compensation study for A/P (Administrative/Professional) faculty began in November 2022 and 254 A/P positions were assessed which includes the athletics department. Based on the results, 5.1% have fallen behind the market. A blend of both private and public sector positions were compared to get these results. Athletics positions were compared to other Division III schools for the study. As a result, it was identified that 104 employees (41%) are eligible for an increase. The estimated cost for the increase is $500,000 for salaries alone. The next steps will be a final review with each departments Vice President to ensure recommendations are appropriately aligned. Implementation options will depend on what happens with the budget. Chair McKnight would like to have this move forward if possible so that the University can be more aligned with the competitive market.

Resolution 2: Updated University Retirement Plan Committee

The University Retirement Plan Committee, established in 2019, is comprised of employees of the University. This resolution removes the titles of the members of the University Retirement Plan Committee and states that the members be designated by position category, rather than by name. The Resolution also establishes that the members of the University Retirement Plan Committee shall include a senior representative from Human Resources, at least one member of the President’s leadership team with responsibility over finance or administration, an administrative professional faculty member, and a member of the instructional faculty.

A motion was put forth by Ms. Lee Vreeland and seconded by Ms. Regina Brayboy, with all in favor.

Annual Security Report

Mrs. Latour stated this report will be postponed to the June meeting and introduced Mr. Andrew Crawford, Chief Information Officer to give an update on the Gramm Leach Bliley Act (GLBA).

Gramm Leach Bliley Act (GLBA)

Mr. Crawford reported the Gramm Leach Bliley Act protects banking information of costumers and applies to Christopher Newport University regarding student loans and transactions. A review is currently underway to determine our obligations under this Act. A consultant came in to administer a GLBA assessment and has provided a detailed report and recommendations. GLBA requires the University assign a qualified individual to oversee GLBA and the University has identified, Ms. Wendy Wilde, Information Security Officer. She will report on the findings and recommendations of the consultant at the June meeting. Mrs. Latour reported there is a personal liability risk for assuming this position and Mrs. Ashleigh Andrews, Associate Vice President/Chief Human Resources officer is consulting with University Counsel to determine if there is any coverage provided by the Commonwealth for this.

There being no further business the meeting adjourned at 11:15 a.m.