July 31, 2007
UNIVERSITY OF HOUSTON SYSTEM
BOARD OF REGENTS
AUDIT COMMITTEE
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Members Present:
Calvin W. Stephens, Chair
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Members Absent:
Lynden B. Rose |
The Audit Committee of the University of Houston System Board of Regents convened in Room 220 ECullen Building, University of Houston, on Tuesday, July 31, 2007. Noting the presence of a quorum, Chairman Stephens called the meeting to order at 12:16 p.m. and turned the meeting over to Don Guyton. Mr. Guyton stated that there were no open points from the last Audit Committee meeting held on May 1, 2007. Mr. Guyton then presented the following three approval items and three information items before the committee:
Action :
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UHS Internal Auditing Department Long-Range Internal Audit Plan for Fiscal Years 2008 – 2010 – UH System
Approval is requested for the UHS Internal Auditing Department Long-Range Internal Audit Plan for Fiscal Years 2008-2010. The Audit Plan meets the requirements of the Board of Regents policy and the Texas Internal Auditing Act, as amended. Mr. Guyton stated that risk assessment techniques were employed to identify auditable areas and to ensure that the accounting systems and controls, the administrative systems and controls, and other major systems and controls are reviewed on a periodic basis.
Regent Wise moved to approve the item as presented. Regent Golden seconded the motion, which passed unanimously. This item requires board approval and will be presented on the August 16, 2007 board agenda for final approval. -
Audit Committee Planner – UH System
There were no changes to the planner since it was approved one year ago by the committee.
Regent Golden moved to approve the item as presented. Regent Wise seconded the motion, which passed unanimously. This item requires the approval of the Audit committee and not the board so it will not appear on the August 16, 2007 board meeting agenda. -
Approval of the Final Draft of the Audit Report and Financial Statements, University of Houston Charter School, FY 2006 – University of Houston
Approval is requested for the review and approval of the final draft of the Audit Report and Financial Statements of the University of Houston Charter School for Fiscal Year 2006. Certification of the audit and financial information by the Board is required by the Texas Education Code. Mr. Guyton requested approval of this item by the committee and for board approval at the August 1, 2007 board meeting in order that UH can expedite the submission to the TEA. A copy of this document is on file in the Board office.
Regent Stephens moved to approve the item as presented. Regent Wise seconded the motion, which passed unanimously. This item requires board approval and will be placed on the August 1, 2007 board agenda for final approval.
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Internal Audit Report – Briefing Booklet – UH System
There were seven internal audit reports since the May Audit Committee meeting. These reports address follow-up activity for FY2007, general compliance for federal financial aid programs at three institutions, and procurement card administration at the University of Houston. These reports will be submitted to the Governor’s Office of Budget and Planning, the Legislative Budget Board, the Sunset Advisory Committee and the State Auditor, as required by Texas Government Code.
Mr. Guyton also mentioned the implementation of a textbook policy at UH and that the follow-up status report included in the briefing booklet indicated partial implementation of this action item. Mr. Guyton stated that this item has now been addressed by the approval of such a policy by Dr. Foss. Mr. Guyton congratulated Dr. Foss on getting the policy accepted by faculty senate.
The financial aid general compliance issues raised by the New York Attorney General related to student lenders was addressed. Mr. Guyton stated that all of our institutions completed a questionnaire to address these issues. It should be noted that all of our institutions have adopted or are in the process of adopting the recently modified code of conduct for the National Association of Student Financial Aid Administrators.
Mr. Guyton stated that the State Auditor’s Office initiated their fieldwork for the annual state-wide audit for FY 2007. The scope of this review at our System includes the UH and UHV Federal Financial Aid programs and their follow-up procedures at UH, UHCL and UHD on the prior year audit. McConnell & Jones, CPAs, should be issuing their report on the agreed upon procedures for Athletics for FY2006 very soon. This report should have been completed in January of this year. The financial statements for KUHT and KUHF were issued after the deadline set by the corporation for public broadcasting, but extensions were granted and they were not considered as late filings. The financial statements for the charter school were also completed later than the 150 days after year-end as required by the Texas Education Agency. This CPA firm is still in the process of auditing the endowment fund for FY 2006. Mr. Guyton stated that this firm has been unable to meet the deadlines as required.
- External Audit Reports – UH System
Mr. Guyton stated that the KUHT (TV) Financial Statements and Independent Auditors’ Report for year ended August 31, 2006 and KUHF (FM) Financial Statements and Independent Auditors’ Report for year ended August 31, 2006 were presented for review by the Audit Committee. A copy of this report is on file in the Board office.
- Institutional Compliance Status Report for the Three Months Ended June 30, 2007, and Annual Compliance Plan for FY 2008 – UH System
Mr. Guyton stated that this report lists activity ending June 30, 2007 and includes risk assessments, compliance audits, compliance committee meetings, risk mitigation and hot-line reports. A copy of this report is on file in the Board office.
Mr. Guyton also referenced a letter he received from Ms. Cathy Smock thanking Regent Stephens for participating on the Audit Committee panel at the TACUA conference held in Galveston, TX at the end of May.
There being no further business to come before the committee, the meeting was adjourned at 12:38 p.m.
All documentation submitted to the Committee in support of the foregoing action items, including but not limited to “Passed” agenda items and supporting documentation presented to the Committee, is incorporated herein and made a part of these minutes for all purposes; however, this does not constitute a waiver of any privileges contained herein.
| Others Present: |
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Don Foss
Dona Hamilton Jim McShan Don Guyton Elaine Charlson Russ Hoskens Joe Kotarba Gerry Mathisen |
