MEETING OF THE AUDIT COMMITTEE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE SYSTEM
December 6, 2005
Minutes
The Board of Trustees of the Houston Community College System held a meeting of the
Audit Committee on Tuesday, December 6, 2005, at the System Administration Building,
Second Floor Auditorium, Houston, Texas.
COMMITTEE MEMBERS PRESENT
Michael P. Williams, Chair
Bruce Austin
James R. Murphy
Jay K. Aiyer, Alternate
ADMINISTRATION
Bruce Leslie, Chancellor
Doretha Eason, Deputy to the Chancellor
Charles Cook, Vice Chancellor, Educational Development
Gloria Walker, Vice Chancellor, Finance and Administration
Fena Garza, President, Southeast College
Willie Williams, Associate Vice Chancellor, Human Resources
Carole Keeney Harrington, Interim Associate Vice Chancellor, Communications
Ron DeFalco, Executive Director, Business Affairs
Chet Woodard, Director, Internal Auditing
Miles LeBlanc, General Counsel
OTHERS PRESENT
Wayne McConnell, Managing Partner, McConnell Jones Lanier & Murphy, LLP.
Suewan Johnson, Bond Counsel, Vinson & Elkins
Jorge Rodriguez, Financial Advisor, Coastal Securities
Jarvis Hollingsworth, System Counsel, Bracewell & Giuliani
David Wilcox, President, Faculty Senate
Other administrators, citizens, and representatives of the news media
CALL TO ORDER
Dr. Williams called the meeting to order at 1:57 p.m. and declared the Committee convened
to consider matters pertaining to the Houston Community College System as listed on the
duly posted Meeting Notice.
Houston Community College System
Audit Committee – December 6, 2005 – Page 2
AUDITED ANNUAL FINANCIAL REPORT
Recommendation: Approve the audited Annual Financial Report for the fiscal year ended
August 31, 2005, as prepared by the auditing firm of McConnell Jones Lanier & Murphy,
LLP.
Ms. Walker explained that under the Texas Education Code an external audit of financial
statements must be performed annually and provided to all regulatory agencies, including
bond agencies, by January 1. The audit is conducted in accordance with generally accepted
accounting principles. Mrs. Walker reported the audit was clean, with the exception of a
few items of a regulatory nature.
Wayne McConnell, Managing Partner, reviewed the Management Letter, Audit Report and
letter on auditing standards and entertained questions from the Board. He explained that
based on GASB reporting guidelines, the HCC Foundation, which is a legally separate notfor-profit corporation controlled by a separate board of trustees, was not included in the
audit. However, the Public Facilities Corporation was included due to the nature of its
relationship to the System. Dr. Leslie noted that the last audit of the Foundation was
completed in August by the firm of Mir, Fox & Rodriguez. Ron DeFalco, HCC Executive
Director, Business Affairs, has been assigned to monitor the Foundation’s finances.
The Management Letter pointed out several opportunities for strengthening internal controls
and operating efficiency. Chet Woodard was asked to provide a summary of internal control
responsibilities and a list of the functions of that office. Mr. Austin recommended in-service
training in administrative and financial requirements for all sub recipients of HCC.
Motion - Mr. Murphy moved to recommend approval of the audited Annual Financial
Report to the full Board. Mr. Austin seconded the motion, which carried 3-0. Trustee Aiyer
was not present.
Mr. Austin recommended that HCC publish a Comprehensive Annual Financial Report and
apply for the CAFR award from the Government Finance Officers Association. Ms. Walker
acknowledged the request.
ADJOURNMENT
With no further business, Dr. Williams declared the meeting adjourned at 2:43 p.m.
Minutes Recorded & Submitted by:
Sharon Wright, Executive Administrative
Assistant, Board Services
Minutes Transcribed by:
Linda Gray, Records Officer
Board Services
Minutes approved as submitted: _____________________________