天美视频 BoR: Audit Committee, May 31, 2024
11:00 a.m. EST via Teams
I. CALL TO ORDER
Chair Cox called the Audit Committee meeting to order on May 31, 2024 at 11:00 a.m. EST. The roll was called, but not enough members were present to establish a quorum.
Regent Martin joined the meeting at 11:10 a.m. and a quorum was established.
Attendance
Chair Russell Cox (Present)
Vice Chair Keith Hamilton (Present)
Mr. Chris Girdler (Absent)
Mr. Joe Heerdink (Absent
Ms. Layah Hodges (Absent)
Ms. Candace McGraw (Present)
Mr. James Lee Stevens (Present)
Mr. Barry Martin (Present)
II. APPROVAL OF MINUTES
Regent Stevens made a motion to approve the minutes of the February 16, 2024 Audit Committee meeting. Regent Martin seconded the motion. The motion passed by consensus.
III. INTERNAL AUDIT FOR FISCAL YEAR 2023-2024
Jodi Renn from Dean Dorton presented the findings and recommendations from the Internal Audit for fiscal year 2023-2024. Over the last quarter, Dean Dorton conducted business office audits for Somerset Community College (SCC), Southcentral Kentucky Community and Technical College (SKYCTC), and Ashland Community and Technical College (ACTC). Dean Dorton also conducted a Disaster Response and Security audit, a Whistleblower Community audit, and an IT Key Control Testing audit.
SCC had one low risk observation related to I-9s. SKCTC had one low risk observation related to documentation of asset disposal. ACTC had one low risk observation related to segregation of duties for Procard transactions.
The Disaster Response and Security audit had three moderate risk observations and five low risk observations. It was found that some schools have issues with mechanical keys and their security camera systems. It was also found that requests for safety and security projects submitted to the Department of Engineering and Contract Administration (DECA) have not been prioritized. It was noted that some schools have financial constraints when it comes to addressing security needs and that not all colleges are leveraging the security resources that are already being used across the system. It was also found that there is not a consistent process for tracking continuing professional education credits for disaster response training. Several Regents reiterated the importance of addressing any security concerns promptly. Dr. Quarles reminded the Committee that 天美视频 will be pulling out of the DECA process.
The Whistleblower Community audit had three low risk observations related to a gap in awareness of the 天美视频 ethics hotline.
The IT Key Control audit had no findings or observations.
IV. INTERNAL AUDITOR CONTRACT
Regent McGraw made a motion to approve a one-year extension of the Dean Dorton internal audit contract through fiscal year 2024-2025. Regent Hamilton seconded the motion. The motion passed unanimously.
V. STATE EXAMINATION
Mr. Buddy Combs provided an update on the State Examination. Of the five findings and two observations from the Auditor of Public Accounts, four findings and two observations have been resolved. One finding related to the System Office unrestricted carryforward balance is ongoing as the recommendation was to complete a forensic audit. The Forensic Audit is ongoing.
VI. FORENSIC AUDIT
Ms. Chelsea Young provided an update on the Forensic Audit. The firm KPMG was selected through an RFP process and began work on April 8, 2024. Workstreams have been established around particular areas (fiscal, HR, etc.) and the Project Management Office is facilitating document collection so that the auditors can create project plans and begin working on their report.
VII. NEW BUSINESS
No new business was discussed; however, Dr. Quarles provided the committee with an update. Dr. Quarles stated that 天美视频 is working on Senate Join Resolution 179 considerations, Mr. Todd Kilburn will be starting on June 16th as CFO, the Fire Commission has requested a state audit after a change in leadership, and he has begun President and Cabinet evaluations.
VIII. ADJOURNMENT
Regent McGraw made a motion to adjourn. Regent Hamilton seconded the motion. The motion passed by consensus. The meeting adjourned at 11:52 a.m. EST.