��ݮ��å��Ƶ BoR: Audit Committee, Aug. 30, 2023

Board Meetings

��ݮ��å��Ƶ BoR: Audit Committee, Aug. 30, 2023

Members Present:

Russell Cox, Committee Chair
Joseph Heerdink, ��ݮ��å��Ƶ Board Member
Patsy Jackson, ��ݮ��å��Ƶ Board Member
Barry Martin, ��ݮ��å��Ƶ Board Chair
James Lee Stevens, ��ݮ��å��Ƶ Board Member

Members Absent:

Keith Hamilton, ��ݮ��å��Ƶ Board Member
Chris Girdler, ��ݮ��å��Ƶ Board Member
Layah Hodges, ��ݮ��å��Ƶ Board Member
Candace McGraw, ��ݮ��å��Ƶ Board Member

Call to Order:

��ݮ��å��Ƶ Board of Regents Committee Chair Russ Cox called to order the ��ݮ��å��Ƶ Board of Regents Audit Committee special meeting at 4:02 p.m. (ET) on August 30, 2023. The meeting was held via Microsoft TEAMS. The press was notified of the meeting on August 24, 2023. Hon. Pam Duncan, ��ݮ��å��Ƶ General Counsel, served as parliamentarian.

Committee Chair Cox began the meeting with the approval of minutes.

Approval of Minutes:

Committee Chair Cox asked if there were any corrections to the May 9, 2023, ��ݮ��å��Ƶ Board of Regents Audit Committee Meeting Minutes presented in the meeting materials.

Committee Chair Cox declared the minutes approved as presented by consensus. Committee Chair Cox moved to the next agenda item.

Update: Kentucky State Auditor’s Report:

Committee Chair Cox called on ��ݮ��å��Ƶ Interim Vice President Buddy Combs to present this agenda item.

Interim Vice President Combs introduced Ms. Julie Skeeter and Ms. Tiffany Welch from the Kentucky State Auditor’s Office to present the update.

Ms. Skeeter presented a broad overview of their investigation. She noted that there were no concerns about the information requested. She also expressed appreciation to all the ��ݮ��å��Ƶ Staff who were very accommodating during the process.

Committee Chair Cox called for discussion.

During discussion, Committee Chair Cox shared that the ��ݮ��å��Ƶ Board of Regents and ��ݮ��å��Ƶ leadership will assist in any way necessary to be transparent and he also thanked them for the update.

Ms. Skeeter’s noted that the final report is expected to be ready at the end of October. She shared that it would be sent to whomever the ��ݮ��å��Ƶ Board of Regents would like it to be sent to. She shared that ��ݮ��å��Ƶ would receive the report and then prepare a response and then it would be posted to the Kentucky State Auditor’s website.

Information: Revisions to ��ݮ��å��Ƶ Board of Regents Audit Committee Charter and the ��ݮ��å��Ƶ Board of Regents Bylaws.

Committee Chair Cox called on ��ݮ��å��Ƶ General Counsel, and parliamentarian Pam Duncan to present this agenda item.

Parliamentarian Duncan noted that this agenda item is presented as information because it requires two readings, and it will be an action item at the December Board meeting. She shared that the charter and the bylaws note the membership of the Audit Committee having external representatives.

Parliamentarian Duncan noted that with a new ��ݮ��å��Ƶ Board of Regents Chair, Chair Martin, changed the membership and removed the external representatives as it is difficult to find outside membership. With this change, revisions are needed for both documents.

Action: ��ݮ��å��Ƶ Internal Audit for Fiscal Year 2023-24:

Committee Chair Cox called on ��ݮ��å��Ƶ Interim Vice President Buddy Combs to present this agenda item.

Interim Vice President Combs introduced Mr. Lance Mann and Mr. Chris Boylan from Dean Dorton to present the action item.

Mr. Mann, assisted by Mr. Boylan, gave a PowerPoint presentation to the Committee on the ��ݮ��å��Ƶ Internal Audit for Fiscal Year 2023-24. Mr. Mann went through the plan in detail with the Committee. Mr. Mann asked for any questions or discussion, based on the presentation.

During discussion Committee Chair Russ asked if an audit is done with the change in leadership at the colleges? Mr. Mann noted that a small audit would be done with each change in leadership. Mr. Mann also noted that they do a separate audit for the Technology Solutions area.

Lance shares that they do an IT audit separate from the financial audit.

RECOMMENDATION:

I recommend that the ��ݮ��å��Ƶ Board of Regents Audit Committee approve the 2023-24 Internal Audit Plan as presented.

I need a motion and a second please. Motion: Joe Second: Barry

Parliamentarian Duncan, please call for the vote. Pam did a roll call vote – Cox, Heerdink, Jackson, Stevens, and Chair Martin all voted yes. Motion carried.

Chair Stevens asked Mr. Lance Mann from Dean Dorton to present the Update agenda item. Mr. Mann, assisted by Mr. Boylan, gave a PowerPoint presentation to the Committee on the Update agenda item. Mr. Mann went through the updates throughout the remainder of the plan. Mr. Mann asked for any questions or discussion based on the presentation.

During the discussion, it was noted that all contracts and chargebacks are being reviewed and an update will be provided to the Committee. The Committee thanked Mr. Mann and his staff for the presentation.

Chair Stevens noted that Mr. Mann did not need to be present at the June 15-16, 2023, ��ݮ��å��Ƶ Board of Regents meeting at West Kentucky Community and Technical College. Chair Stevens asked Regent Heerdink to provide the update at the June Board of Regents meeting.

Chair Stevens called for additional discussion, there being none, he moved to the next agenda item.

Next Meeting:

The next meeting of the Audit Committee will be held before the ��ݮ��å��Ƶ Board of Regents September 2023 meeting; a date is forthcoming.

Adjournment:

Regent Heerdink moved that the meeting adjourn. Chair Stevens seconded the motion.

The motion was approved unanimously, and the Audit Committee adjourned at 4:38 p.m. (ET).