MEETING OF THE AUDIT COMMITTEE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE SYSTEM
January 21, 2003
Minutes
The Board of Trustees of the Houston Community College System held a Meeting of the
Audit Committee on January 21, 2003, at the System Administration Building,
Chancellor’s Conference Room, 12th Floor, 3100 Main, Houston, Texas.
Members Present:
Jay K. Aiyer, Chair
Members Absent:
Yolanda Navarro Flores
Michael P. Williams, D.Min.
Administration:
Bruce Leslie, Chancellor; Jose Villarreal, Vice Chancellor,
Economic Development; Gloria Walker, Vice Chancellor,
Finance & Administration; Irene Porcarello, Interim Vice
Chancellor, Institutional Development; Miles LeBlanc,
General Counsel; and Chet Woodard, Internal Auditor
Others Present:
Wayne McConnell, Eric Eaton and Eric Earnest with the firm
of McConnell Jones; other administrators, citizens and
representatives from the news media
Call to Order
Mr. Aiyer called the meeting to order at 4:35 p.m. and declared the meeting convened to
consider matters pertaining to the Houston Community College System as listed on the
duly posted meeting notice.
Annual Financial Report
Representatives from McConnell Jones Lanier & Murphy presented the financial report
for FY 2002 and the management letter (Wayne McConnell, Eric Eaton and Eric
Earnest). No reportable instances of noncompliance in financial reporting were found.
Mr. Eaton reviewed the management letter and recommendations to strengthen internal
controls and operating efficiency.
Adjournment to Closed or Executive Session
Mr. Aiyer adjourned the meeting to Executive Session at 5:20 p.m., notice having
previously been given, and reiterated by him, in accordance with the Open Meetings
Law. He stated that any final action, vote, or decision on any item discussed in
Executive Session would be taken up in Open Session or in a subsequent Public
Meeting. Mr. Aiyer reconvened in Open Session at 5:29 p.m. and entertained
discussion of agenda items.
Houston Community College System
Audit Committee – January 21, 2003 – Page 2
Report on Internal Audits Completed in FY 2002
Dr. Leslie indicated he requested an independent audit of Contract Training and
Continuing Education by Mir, Fox & Rodriguez in response to allegations of
mismanagement.
Corrective action was taken in response to the auditor’s
recommendations and the Corporate Training Center is now managed by the System.
Report on Internal Analysis Assessment of Benefits Department
Ms. Walker was assigned to manage and assess the Benefits Department in May 2002
due to on-going personnel issues and an ERS benefits balance owed to the state. She
reported that the Benefits staff was reassigned to other positions and a new team
brought in. Corrective action has been taken in all areas of concern. The Benefits
Department will ultimately be moved back to Human Resources under the management
of a new Benefits/Compensation Director.
Other Matters
Mr. Aiyer requested quarterly reports on Board expenses and asked administration to
review costs for delivery services.
Adjournment
With no further business to come before the Committee, the meeting was adjourned at
5:40 p.m.
Minutes Prepared by:
Linda Gray, Executive Administrative
Assistant, Board Services
Reviewed, Finalized and Submitted by:
Christopher W. Oliver, Secretary
Board of Trustees
Minutes Approved as Submitted:
June 24, 2003