MINUTES OF A SPECIAL MEETING OF THE BOARD OF VISITORS
OF VIRGINIA COMMONWEALTH UNIVERSITY
March 15, 1978
A special meeting of the Board of Visitors of Virginia Commonwealth
University was held on Wednesday, March 15, 1978, at 6:00 p.m. in the
Sanger Hall Board Room.
Present were Drs. Blanton, Gayle and Gwathmey; Messrs. Bliley,
Dabney, Grey, Norris, Seaborn and Shumate; and Mesdames Satterfield,
Stone and Thalhimer. Absent were Messrs. McGehee, Obenshain and Scott.
Also present were Drs. Ackell, Beller, Brooke, Hall, Neal and Woods; Mr.
Guerdon; Miss Cosby; and Mrs. Price.
Dr. Blanton called the meeting to order and indicated that he had
raised the question with Dr. Ackell concerning the distribution of
financial and audit statements. Dr. Blanton stated that, with the
Board's concurrence, financial statements would be sent directly to the
entire Board and audit reports would be sent first to the Audit Com-
mittee of the Board.
Dr. Ronald E. Beller, Provost for Administration, presented Mr.
James G. Guerdon, Vice President for Finance, Mr. Edward Mazur, Con-
troller, and Mr. Lee Putney of Peat, Marwick, Mitchell and Company, who
would be making various presentations concerning progress in financial
services at VCU.
Mr. Guerdon presented the organization of his area which is com-
prised of three major components: Auxiliary Enterprises and University
Services, Treasurer's Office and Controller's Office. Mr. Guerdon also
reviewed some of the major accomplishments and projects of his staff
including the reduction of outstanding credit memos from $168,600 to
$14,700 and a computerized textbook inventory at the Academic Campus
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Bookstore; review of printing structure resulting in the elimination of
a $30,000 loss and better billing controls in the Print Shops; installa-
tion of a new telephone system for the University on April 17 which will
result in a $100,000 savings. Mr. Guerdon also detailed our current
investment program. In 1978, the University has $5.5 million of invest-
able funds of which $5.0 million are invested with an annual yield of 6.1
percent. Mr. Guerdon also reviewed the negotiations that had taken place
with the Department of Health, Education and Welfare on the percentage
rates of our indirect costs on federal grants and contracts. We received
very favorable rates and are expecting a $750,000 refund from HEW.
Mr. Mazur presented a very detailed report on the Offices of the
Controller and Treasurer. Mr. Mazur reviewed the present and former
organization of these offices and the measures that had been used to
increase employee morale. Mr. Mazur did point out that space needs
continue to be a problem for his staff. Currently, they are located in
three different locations, including one off-campus locale. Mr. Mazur
pointed out that there are normal and periodic indicators which the
Board should expect from the Controller's and Treasurer's Offices,
including:
Steady development and refinement of financial reports
to be presented at each Board meeting
Presentation of annual financial statements
Presentation of summaries of special financial analyses
Periodic briefings on the development of new federal and state
compliance requirements and their affect on the University
Periodic reports relating to the expenditures of restricted
and unrestricted University (Local) funds
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Timely and well-stated response to all audit reports and
status reports on contemplated actions
management letters presented to the Board, including follow-up
Timely and candid appraisal of any material failures to comply
with Board supported policies and practices
Growing reputation for excellence in financial management
among appropriate state officials
There are also normal and periodic indicators which the Board
should expect from independent third party sources. These indicators
should confirm and evaluate the response of the Controller's and Treasurer's
Offices to the needs of the Board.
The opinion of the University's annual financial statements by
our certified public accountants
The annual management letter from our certified public accoun-
tants evaluating our systems of internal accounting control
and our accounting practices
Reports from the University's internal audit staff resulting
from the execution of the audit plan approved by the Board's
Audit Committee
Presentation, my management, of the results of all special
state and federal audits of grants and contracts and other
separately funded programs.
Mr. Mazur indicated that his staff had worked diligently to achieve
many of the accomplishments presented to the Board at this meeting.
Mr. Lee Putney of Peat, Marwick, Mitchell and Company reviewed the
work of his firm with VCU. Mr. Putney indicated that there had been
great improvements in our financial area and that once the Financial
Accounting System is installed the Board should see even greater progress.
The Board thanked everyone for their excellent presentations.
The meeting was adjourned at 8:45 p.m.
Approved: Richard D. Obenshain, SecretaryPage
Wyndham B. Blanton, Jr., M.D. Rector
