Vice President Rush stated that though it's not good going $2.5M into the fund balance, be reminded that last year we started with a $4.5 revenue shortfall. Vice President Rush stated that we don't have a contingency in the budget and it's very important that we do so in the future. He also stated that we will have to develop a process to address any pension adjustments.
Vice President Rush gave the committee an update on the issue of missed drawdowns for grants. Regent McFayden stated that due to the missed drawdowns, we spend money we don't have and don't get reimbursed for it. Vice President Rush stated our grant files are not in good order and the need to have people in place that understand the rules and regulations. Regent Gilmore stated going forward, we need better system processes mapped to make sure our policies don't hinder our research processes. Regent Harnice inquired of an analysis of the money lost and also having someone responsible for ensuring that all grant money is tracked. Ms. Michelle Sutton, Director of Accounting, stated that when she started, the population of grants could not be provided and there was no policy manual which would state the standard operating procedures. She also stated that at this point, she is still finding grants that she is trying to ensure that we have actually done what is required. Vice President Rush stated that the Department of Agriculture is the largest granting agency where most of the funds come from and Land Grant has hired Cindy James as the Fiscal Compliance Officer who will review all grant processes to make sure the University is in compliance.
Michelle Sutton, Director of Accounting gave an overview of the three areas which are under her direct supervision, grants accounting, accounting and accounts payable. Per Ms. Sutton, there was not a complete listing of grants to work from and they are still compiling it. Ms. Sutton stated that beginning in September, staff were requested to reconcile all grants as of September 30th. Regent Harnice inquired as to how long it would take to get a complete listing of all grants to the Board. Ms. Sutton stated in the accounting area they are having to do a lot of manual work in the Banner system and she is having to spend a lot of time with the Oracle implementation team to ensure bad data is not brought over into the new system. Ms. Sutton stated efficient practices and procedures are being developed on how things are being done in Accounts Payable. Regent McFayden inquired as to the dollar amount paid in the last few months for late fees of invoices. Vice President Rush stated that he didn't have an accurate number as of now because it has never been tracked in the Banner system.
Regent McFayden inquired of the Perkins contract and also commented that the students should have healthier food options to choose from. Vice President Rush stated that Mr. Perkins has made some management changes and he has received some positive and some not too positive feedback. Regent Bearden stated that the issue of food service was voiced at the student town hall meeting. Vice President Rush stated that the food service contract expires June 30, 2017.
Vice President Rush stated the review of accounts for KTRS and KRS has been completed. He also stated that an employee health fair was held on Tuesday, October 4th, professional
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