Three (3) Regents were in attendance and present at roll call. A quorum was therefore established.

III. Approval of the Agenda.

• Regent Dukes moved to approve today's agenda. Regent Hatchett seconded the motion.

IV. Finance and Administration Updates by Dr. Heather Bigard.

A. Current budget.

• Projecting revenue of $34.7 million. Currently at $18.3 million now. Projecting will be a little below budget at $33.4 due to the increased investment they have made in scholarships and waivers to assist students with their tuition.
• Also trying to align payroll to the original budget.
• Also paying attention to trends in terms of expenses and contracts that were renewed.
• Projecting deficit of $728,000 in the EMG budget.
• Will come back with an amended budget in January or at the next meeting that will include a reduction whenever possible in operational expenditures.
• Regent Hatchett commented on the blank spaces in the report and the inadequate attention to uncollected student debt.
• Regent Hatchett also commented on being behind last year in net student tuition and fees collection. Collected 57.1% last year and is at 48.1% this year.
• Dr. Bigard discussed the updates on the items that Regent Hatchett referred to as blanks.
• There was a discussion between Regent Hatchett and Dr. Bigard on the issue of uncollected student debt.
• Regent Moyer discussed the example used by healthcare for projected bad debt.
• Regent Moyer inquired on the relationship between bad debt and the scholarship account.
• Dr. Bigard discussed the three categories of scholarships, discounts and waivers for fees. She also discussed endowment scholarships.
• Regent Moyer commented on generally accepted accounting principles.
• Regent Dukes commented that this is the most reliable set of numbers that they have seen in a while and they are trying to make sure they have full transparency.
• Dr. Bigard responded that they are working on the cash flow because that is where they are seeing impact of the budget activities.
• Regent Moyer commented that he has confidence that they are making good progress on their financial reporting.
• Regent Hatchett and Regent Moyer asked questions about the endowment and