The committee also received a report on its investment portfolio from Fifth Third Bank. Since the last quarterly meeting, there has been a 5% increase in the value of the University's endowment. The endowment has experienced overall positive growth in the value of its investments. Some investment losses that were suffered in the previous quarter were recovered due to value increases in the stock market. At the request of several Board members, Fifth Third Bank agreed to provide investment information at least five days before the next committee meeting. Regent McFayden emphasized the need for Fifth Third Bank to provide the reports in a timely manner.

No other action was taken in regard to the External Relations and Development Committee Report.

Wendy Dixie reported to the Board that based on an analysis of the Oracle Implementation project and a comparison of pros and cons in improving Banner, the KSU Executive Team recommended to the Board that KSU resume the Oracle implementation. After a few questions from Board members about the capabilities of both systems, the Board decided to accept the recommendation of the KSU Executive Team and approved moving forward with the Oracle implementation on a unanimous voice vote. The Board emphasized that going forward, Addvantum must comply with all the requirements of the contract in a timely manner and ensure a quality implementation.

Regent Bearden reported on the Audit Committee meeting, which was held on July 21, 2016. Mr. Quick reported to the committee on his follow up testing and review of corrective actions recommended by the most recent audit, including cash management policies and procedures. He is taking action to assist in improving cash management functions in the Bursar's Office and will see that regular reviews of internal procedures are undertaken by that office. He also presented the 2017 Audit Plan to the committee, which outlined the priorities for Internal Audit for the upcoming year. He will present an updated charter for Internal Audit and the Audit Committee at a later date.

Action Item: Motion was made by Regent McFayden to approve the minutes from the Audit Committee meeting held as part of the Board's April 21-22, 2016 meeting. The motion was seconded by Regent Henry. The motion passed on a vote of 8-0 and the minutes were approved.

No other action was taken in regard to the report of the Audit Committee.

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