Audit Committee meeting July 23 2009

Louise Miura 2

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• Publié par: Navug
• Nombre de lectures: 38
• Langue: English

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Meeting Minutes

Audit Committee

July 23, 2009

The meeting of the BOR Committee on University Audits was held on July 23,

2009, at UH Mānoa, Campus Center, Room 220.

Quorum:

Chair James Haynes; Regent Howard Karr.

Others Present:

President David McClain; VP Howard Todo; VP David

Lassner, Internal Audit Staff, Board Secretary Pang.

I. CALL TO ORDER

Chair Haynes called the meeting of the Committee on University Audits to

order at 8:05 a.m.

II. APPROVAL OF MINUTES

The minutes of the meeting of May 19, 2009, were approved.

III. ITEMS FOR ACTION

Proposed Internal Mandatory and Discretionary Audits for FY 09-10

The Committee was presented with a portion of the University Audit Plan

for FY 2009-2010 consisting of both mandatory and discretionary internal audits

to be performed by the internal audit staff. The portion of the Audit Plan

consisting of external audits was previously approved by the Board at its meeting

on May 29, 2009.

With respect to the proposed discretionary audit of the Banner Student

Information System, President McClain strongly objected to one note in the

justification for this audit. The note read “Lack of system-wide tuition policies and

procedures.” President McClain pointed out that the University does have

system-wide policies and procedures regarding tuition. If this asserted

justification was based on a finding from State Auditor Marion Higa, the finding

and this justification are wrong. Chair Karr agreed.

With respect to the proposed discretionary audit of operational and

internal controls of the Banner Student Information System, David Lassner

pointed out that the financial reconciliation process tends to be audited as part of

the OMB A-133 external audit. Regent Karr asked if the internal audit office

participated during the development stages of the Banner System. VP Lassner

Minutes of July 23, 2009 — p. 2/3

responded that the internal audit office typically does not get involved as part of

the development team and was not involved with Banner. However, a member of

the internal audit staff was participating in the development of the Kuali system.

With respect to the proposed audit of the financial statements of the

Associated Students of the University of Hawai‘i at Mānoa, the Audit Committee

directed the Internal Audit office to seek advice from the UH General Counsel’s

staff interpreting alleged conflicting requirements established by the ASUH

Constitution and an ASUH Senate Resolution 7-84 regarding the frequency and

type of audit required.

Regent Karr indicated no issue with the proposed mandatory audit of the

Rainbowtique at Ward Center or the audit of the President’s Protocol and Travel

Account established by the UH Foundation. President McClain noted that the

Internal Audit staff repeatedly misrepresents the facts of the President’s

expenditure from this protocol account. He asked that the internal audit staff

provide a draft report to his successor as a courtesy so that the report can be

reviewed for accuracy prior to becoming final.

With regard to the proposed audits of eight various Departmental

Checking Systems (“DCS”) Operations, Regent Karr suggested rotating the

accounts under review. The internal audit staff clarified that these particular eight

accounts were selected among a possible 30 or so DCS accounts.

Regent Karr suggested that the Internal Audit office also (1) examine the

outside consulting arrangements by faculty, and (2) conduct a management audit

of the staffing levels for UH Mānoa housing.

With respect to the proposed audit of the special fund at the Cancer

Research Center, (Item #6) it was clarified that this is a financial audit. The

proposed review of the purchasing card activity of the Office of the Vice

Chancellor for Research and Graduate Education at UH Mānoa (Item #7) is an

operational and compliance audit.

Regent Karr moved and Chair Haynes agreed to recommend that the

Board approve the proposed audit activity as listed and clarified during the

discussion, such approval, however, being subject to further review and

modifications by a newly appointed director for the internal audit office.

At 8:30 a.m. the Committee convened in executive session to discuss the

personnel issue of appointing a new director.

EXECUTIVE SESSION (Separate document)

Minutes of July 23, 2009 — p. 3/3

Executive Session ended at 8:45 a.m.

Return to Public Session 8:45 a.m. Committee adjourned at 8:45 a.m.

Respectfully Submitted,

Presley Pang

Interim Board Secretary