Vice President Pinkard stated that we have roughly 1,900 students enrolled, but we have to validate the status of enrollment. He stated that he and his team will be meeting with all of our collections agencies to review what they are doing for the university. They will be going through a value proposition that they present to us versus the money we pay. He further stated that we are significantly too lenient, we can do this professionally, respectful and with good decorum with all of our students and all others that have a liability with the university. Vice President Pinkard stated the mission the team has on the table is to not do anything that does not generate value. We will access completely whether it has merit or not. He further stated that if we are spending money with the intent of doing something well versus measuring and understanding whether it is good for the university or not, we are going to stop those activities and pursue something more valuable for our money. Vice President Pinkard stated he and Ms. Impellizzeri have met to discuss how to deliver better controls of the different stages of registration and validate what comes to the finance office. Vice President Pinkard stated that there are some serious process changes that need to be made after some of the issues with the Bursar's office. He stated that quite a few resources have been put in place. Regent Henry thanked Mr. Pinkard for the significant overview.

Regent Henry requested Vice President Pinkard to explain the state of affairs for finance operations. Vice President Pinkard stated there is a 30% issue in the budgeting process, 20% issue with accounting processes making certain of accurate coding of all that we do, so we can measure and be able to act on it if it exceeds the budget, 30% issue in trend reporting which does not happen with the density that is needed in penetrating all that we do here and 20% issue with waste. Mr. Pinkard stated that the team was challenged to give a listing of all the reports that we do. He stated that certain things are late every time and that we need to have a zero defect society here. Vice President Pinkard stated that we significantly need more training on delivery and understanding the parameters on delivery. He stated that he planned on doing a management instruction with the leadership teams. Vice President Pinkard stated that the lack of training to do your job by the process owners in finance is a big deal.

Mr. Paul Edwards, Director of Accounting, stated that accounts payable and accrued liabilities went up $525 thousand which is due to a change in the timing of financial statements preparation which now requires an accrual entry for payroll. In prior years this was not done. President Burse stated that this was a Presidential driven item. He stated that, if we are going to post material to the Board on the 13th, 14th and 15th of the month, he wanted the financials through the end of the month preceding that mailing. Mr. Edwards stated that student tuition and fees totaled

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