WASHBURN UNIVERSITY BOARD OF REGENTS
Audit Committee Meeting
January 14, 2005
Regents Present: Nancy Paul, Chair, Maggie Warren, Blanche Parks, Mayor Jim McClinton
Staff Present: Jerry Farley, Wanda Hill, Ron Wasserstein, Denise Ottinger, Al Dickes, Rhonda Thornburgh, Chris Leach
Minutes of the November 5, 2004 meeting were approved as distributed.
Annual Audit RFP -
Requests for proposals were submitted to 24 auditing firms.
Regent Paul said due to time constraints she consulted individually with the evaluation committee and then summarized the evaluations. Based on the consensus of the evaluation committee, it is recommended to award the audit services contract to BKD, LLP. She indicated the ratings between the current auditor, Berberich Trahan, and BKD were very close, however, with the current financial climate, the general feeling is we need fresh eyes and a different insight.
President Farley indicated he had not seen the evaluations and asked if the estimated number of hours and timeframe were comparable between the two vendors. Regent Paul said for the first year of the contract, Berberich estimated 613 hours compared to BKD's estimate of 675 hours. For the remaining years of the contract, Berberich estimated 613 hours per year while BKD estimated 560 hours.
Regent Parks said we need to make it clear to Berberich Trahan the decision to change auditors is not a matter of being unhappy with their services, but rather a need for a change after so many years with the current auditor. President Farley said we may want to consider making a requirement to rotate auditors every five years or so.
It was moved and seconded to recommend awarding the audit services contract to BKD, LLP. Motion carried.
The FY 2004 Audit report was distributed.
Three recommendations made by the auditors will be addressed by the administration. They are:
Activities of KTWU should be maintained in a separate self-balancing department of the General Fund.
Improvements were suggested for cash handling by the Athletics Department after athletic events to avoid the possibility of misappropriations.
The Board of Directors of the Washburn Law School Foundation should meet on a regular basis and maintain minutes to document Board decisions.
Regent Paul will ask the Board to submit any questions to Vice President Hill.
Meeting was adjourned.