Vice President Rush stated the University has $4.5MM placed with four different collection agencies. Vice President Rush stated that a new collection process is being developed and it will be submitted to the President before the end of the month. He stated that at the end of each semester, students who are not enrolled and have an outstanding balance will receive a series of letters and notices on a regular schedule informing them of their outstanding balance. He stated that a University committee is being structured to hear student financial disputes. This committee will provide recommendations to the Vice President of Business Affairs and the President. Vice President Rush stated this process will keep the University in compliance with the requirements of the DOR. Vice President Rush stated that collection success rates will be submitted at the next Board meeting.
Ms. Rayla Smoot, Director of Human Resources (HR), stated that the audit of the retirement accounts began in December of 2015. Every transaction for each employee is being reviewed for the period 2012-2015 to ensure the employee accounts are up-to-date and correct. Ms. Smoot stated a majority of the Kentucky Teacher Retirement System (KTRS) accounts had errors that had to be corrected and that TIAA-Cref, Valic and Deferred Compensation accounts had very few errors. Ms. Smoot stated that the Kentucky Employee Retirement System (KERS) accounts are being reviewed and that the review is scheduled to be completed by April 30, 2016. Ms. Smoot stated HR staff are working with KERS and KTRS to ensure necessary corrections are made to employee accounts and the target date for completion is June 1, 2016. Vice President Rush stated that there has been a constant and recurring discussion with employees about their retirement accounts not being correct.
Ms. Smoot gave a twelve month overview of workers' compensation claims files. She stated most of the injuries were slips, trips and falls. Ms. Smoot stated HR is working to develop a training strategy.
Ms. Smoot stated the committee is pleased with the new employee benefits broker. As a result of a Request for Proposals issued to health insurance carrier by the benefits broker, a decrease in premiums and improved coverage is anticipated. Vice President Rush stated open enrollment will be in May. Regent McFayden gave accolades to the committee for the hard work they have done in the selection of a new health insurance broker.
Regent Farris inquired about the recent data breach and accountability and responsibility for the breach. Mr. Rush stated this issue is still under review. Regent Guarnieri inquired if employees were still at risk. Attorney Gordon Rowe stated yes, several false tax returns have been filed and someone had tried to open a bank account in the name of an employee. Attorney Rowe stated the University has contacted all three of the major credit reporting agencies, the IRS, and has contracted with Experian to protect the employees. He stated employees were advised to file an identity theft affidavit with the IRS alerting them of the data breach. Attorney Rowe stated steps were being taken through Experian to protect the spouses of employees. He further stated that a training has been scheduled for April 28th and 29th on security awareness. This training will be conducted by the Kentucky State
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