Report of Regents Audits/Budget and Finance Committee to The Board of Regents

Your Committee on Audits/Budget and Finance had its scheduled meeting on January 14, 2019.  Regent Josephine Finn, Chair of the Audits/Budget and Finance Committee, submitted the following written report. In attendance were committee members: Regent Finn, Chair, Regents Collins, Cottrell, Hakanson, Mead, Ouderkirk, Tilles and Young.

Regents, in addition to Audits/Budget Committee Members, in attendance were: Chancellor Rosa and Regent Reyes as well as, Commissioner Elia and Executive Deputy Commissioner Berlin.

ITEMS FOR DISCUSSION

Chair’s Remarks: Regent Finn welcomed everyone. She introduced Sharon Cates-Williams, Deputy Commissioner, to present the Board of Regents Oversight of Financial Accountability Report and then Phyllis Morris, Chief Financial Officer, to present the December 2018 Fiscal Report.

KPMG Audit Partner Marie Zimmerman also gave a presentation to the Board of Regents providing an overview of the 2017-2018 NYS Single Audit findings. The single audit examined 23 major federal programs statewide, three of which are administered by the Department; Vocational Rehabilitation, School Improvement Grants, and English Acquisition State Grants. The Department has seven reported findings related to strengthening internal control processes, updating policy and procedures, and ensuring monitoring performed is documented.  The overview was followed by general questions and answers.

Completed Audits

This month the Board is being presented with 15 audits, one was issued by the New York City Office of the Comptroller, and 14 audits were issued by the NYS Office of the State Comptroller.  Nine audits were of school districts, one of charter schools, two of providers of special education services, one of a community college, one of the New York City Department of Education, and one of the State Education Department (Department). Findings were in the areas of, claims processing, financial reporting, information technology, payroll/leave accruals, procurement, and reimbursable cost manual compliance. Deputy Commissioner, Sharon Cates-Williams, gave a brief overview of the completed audits and answered general questions.

2018 Fiscal Report

The Chief Financial Officer provided the Members with the December fiscal report that reflects actual expenditures through December 31, 2018 and projected expenditures through the lapse period ending June 30, 2019.  Extensive spending controls continue for all funds.  General Fund spending plans reflect the amounts appropriated in the 2018-19 enacted budget. General Fund accounts are in structural balance. Special Revenue accounts are all in structural balance on a current year basis and the accumulated negative balance in the Cultural Education Account is projected to end the fiscal year a negative $2.2 million. Federal Funds reflect current year plans for two-year grant awards.