Board Meetings

    KCTCS Board of Regents

    Minutes
    Kentucky Community and Technical College System
    Audit Committee of the KCTCS Board of Regents Special Meeting
    November 28, 2022

    Members Present:

    • Mr. James Lee Stevens, Chair
    • Mr. Russell Cox, KCTCS Board Member – joined at 3:43 p.m.
    • Ms. Joseph Heerdink, KCTCS Board Member
    • Mr. Barry Martin, KCTCS Board Vice Chair – joined at 3:48 p.m.
    • Mr. Jeff Holliday, External Member
    • Ms. Jenna Skop, External Member

    Members Absent:

    • Mr. Keith Hamilton, KCTCS Board Member

    Call to Order:

    KCTCS Board of Regents Chair James Lee Stevens called to order the KCTCS Board of Regents Audit Committee special meeting at 3:30 p.m. (ET) on November 28, 2022. The meeting was held virtually via Microsoft TEAMS. The press was notified of the meeting on November 21, 2022. Hon. Pam Duncan, KCTCS General Counsel, served as parliamentarian.

    Parliamentarian Duncan noted that a quorum was not present so no action could be taken. The meeting began.

    Chair Stevens asked Parliamentarian Duncan to move to the next agenda item after minutes approval since no action could be taken.

    Introduction of Guests:

    Chair Stevens introduced Lance Mann from Dean Dorton. He noted that Dean Dorton is the firm that provides the KCTCS Internal Audit.

    Update: Internal Audit for Fiscal Year 2022-23:

    Chair Stevens asked Mr. Lance Mann from Dean Dorton to present the Update agenda item. Mr. Mann gave a PowerPoint presentation to the Committee on the Update. Mr. Mann noted that the audit document was posted for everyone’s review. He shared that Technology Solutions had no findings in their review. Mr. Mann detailed the Maysville Community and Technical College audit. He also went through the action plans as part of the audit. Mr. Mann went through the remainder of the plan which details the areas that will be included into the next audit report. Mr. Mann asked for any questions or discussion based on the presentation.

    During discussion, it was noted that the plan was designed to do a review of all sixteen colleges in four years. The Committee thanked Mr. Mann and his staff for the presentation.

    Chair Stevens asked Mr. Mann to be present at the next quarter meeting of the KCTCS Board of Regents Audit Committee.

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

    Parliamentarian Duncan shared that Regent Cox and Regent Martin had joined the meeting during presentation. Since those Regents have joined, the Committee has a quorum. With a quorum present, Parliamentarian Duncan asked the Committee for approval of the September 6, 2022, meeting minutes.

    Approval of Minutes:

    Chair Stevens asked if there were any corrections to the September 6, 2022, meeting minutes presented in the meeting materials. There being none, the minutes were declared approved as presented.

    Chair Stevens moved to the next agenda item.

    Update: Financial Ratios:

    Parliamentarian Duncan introduced the next agenda item, Update: Financial Ratios. She called on Interim Vice President Malloy and KCTCS Director of Accounting Melissa Hicks to present. Interim Vice President Malloy gave an overview of the definition of financial ratios to the Committee. She noted that a financial ratio is a tool which may be used as part of an organization’s Strategic Financial Analysis including planning and forecasting to manage risk, ultimately achieving the mission.

    Interim Vice President Malloy introduced KCTCS Director of Accounting Melissa Hicks to give a PowerPoint presentation to the Committee on the definitions of financial ratios and how that corresponds with all sixteen colleges. After the presentation, Chair Stevens called for discussion.

    During discussion, it was noted that financial ratios are not required by each institution and that it was only a management tool.

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

    Action: External Audit for Fiscal Year 2021-22:

    Parliamentarian Duncan introduced the next agenda item, Action: External Audit for Fiscal Year 2021-22.

    RECOMMENDATION: The KCTCS Board of Regents Audit Committee accept the financial audit for the 2021-22 fiscal year.

    Parliamentarian Duncan introduced Forvis Director Jennifer Williams and Forvis Partner Mary McKinley to give the Committee a presentation on the External Audit. Ms. Williams gave a PowerPoint presentation to the Committee on the 2021-22 KCTCS External Audit. Ms. Williams thanked the KCTCS Staff and noted this was the first year for Forvis to conduct the external audit.

    Ms. Williams noted that the independent opinion issued by Forvis is an unmodified opinion with no findings. This opinion means that the KCTCS financial statements present fairly, in all material respects, KCTCS’ financial position as of June 30, 2021, and the changes in its financial position and its cash flows for the year ended June 30, 2022. The KCTCS financial statements and the audit firm’s opinion letter are included in the

    three reports, (2021-22 Annual Financial Report, 2021-22 Audit Correspondence, and 2021-22 Report on Audit of Institutions of Higher Education in Accordance with Uniform Guidance) were provided to the Committee in hard copy and were loaded for the Board in the Board of Regents OnBoard portal.

    After the presentation, Chair Stevens called for discussion.

    During discussion, it was noted that everything looked good, and the Committee was pleased there were no findings.

    Chair Stevens thanked Ms. Williams and Ms. McKinley for their presentation and asked for additional discussion. There being none, he called for a motion to accept the financial audit for the 2021-22 year.

    Regent Cox made the motion for the KCTCS Board of Regents Audit Committee accept the KCTCS Financial Audit for Fiscal Year 2021-22 and send to the full Board. Chair Stevens asked for a second. Regent Martin seconded the motion. Ms. Duncan conducted a roll call vote.

    The motion was approved unanimously with those present on screen. Chair Stevens moved to the next agenda item.

    Next Meeting:

    The next meeting of the Audit Committee will be held in March; a date is forthcoming.

    Adjournment:

    Regent Cox moved that the meeting adjourn. Regent Heerdink seconded the motion.

    The motion was approved unanimously, and the Audit Committee adjourned at 4:41 p.m. (ET).

    03/13/2023 __________ Date Approved by the KCTCS Audit Committee

    _____________________________________ James Lee Stevens, Chair KCTCS Board of Regents