MEETING OF THE
AUDIT COMMITTEE
OF THE BOARD OF TRUSTEES
HOUSTON COMMUNITY COLLEGE
September 8, 2011
Minutes
The Audit Committee of the Board of Trustees of Houston Community College held a
meeting on Thursday, September 8, 2011, at the HCC Administration Building, 3100 Main,
2nd Floor, Seminar Room A, Houston, Texas.
COMMITTEE MEMBERS PRESENT
Neeta Sane, Committee Chair
Bruce Austin, Committee Member
Eva Loredo, Committee Member
Richard Schechter
ADMINISTRATION
Mary S. Spangler, Chancellor
Art Tyler, Deputy Chancellor/COO
Renee Byas, General Counsel
Shantay Grays, Acting Executive Assistant to the Chancellor
Madeline Burillo for Charles Cook, Vice Chancellor, Instruction
Diana Pino, Vice Chancellor, Student Services
Daniel Seymour, Vice Chancellor, Planning and Institutional Effectiveness
Julian Fisher for Fena Garza, President, Southwest College
OTHERS PRESENT
Derrick Mitchell, System Counsel, Bracewell & Giuliani
Thomas Urban, President, Faculty Senate
Other administrators, citizens and representatives from the news media
CALL TO ORDER
Mrs. Sane called the meeting to order at 1:09 p.m. and declared the Committee convened
to consider matters pertaining to Houston Community College as listed on the duly posted
Meeting Notice.
INTERNAL AUDITING ANNUAL REPORT 2010-2011
Mr. Chet Woodard, Director Internal Audit, noted that the mission of Internal Auditing is to
assist management and the Board in the discharge of governance, risk management and
internal controls. Mr. Woodard provided an overview of internal and noted the process
provides reasonable assurance regarding the achievement of objectives in the following
categories:
• Effectiveness and efficiency of operations
• Reliability of financial reporting
• Compliance with laws and regulations
Houston Community College
Audit Committee – September 8, 2011 - Page 2
(Ms. Loredo arrived at 1:16 p.m.)
Five components that are generally accepted practices used for internal control structure
include:
1. Control environment - management sets the tone for organization
2. Risk assessment - colleges and district must be aware and establish mechanisms to
identify and manage related risks
3. Control activities- policies and procedures of the institution
4. Information and communication- enables the organization to capture and exchange
information
5. Monitoring- evaluates the balance of risks and internal controls, compliance of policy
and procedures and performs independent and objective appraisals
Mr. Austin inquired about the impact of Sarbanes Oxley recommendations as it relates to
NACUBO’s recommendation to colleges and universities.
Mr. Woodard noted that the Audit Committee and the Internal Auditor meet regularly and
informed that NACUBO recommends instituting a hotline throughout the organization,
which has been discussed with senior administration. He also noted that the financial
statements, which are approved by the Board, contain internal controls.
Mr. Woodard provided an overview of the status report and informed that the current status
report is on file.
Mr. Woodard informed that Internal Audit engages in three primary activities (1) audits, (2)
advisory services and (3) investigations
Mr. Woodard informed that audit services focuses to address financial risks and exposures
by:
• Internal controls- determine if unit is conducting operational and business processes
under an adequate system
• Compliance- determines the adequacy of a unit’s compliance with system policies
and procedures
• Operations- evaluates if a unit is using resources in the most efficient and effective
manner to fulfill its mission and objectives
• Follow-up- monitors if a unit has implemented recommendations from previous audit
• Investigations and advisory services- focus on civil, criminal, state, federal and
system policy and procedures violations and advisory services assist management
in meeting its objectives
(Mr. Schechter arrived at 1:31 p.m.)
Houston Community College
Audit Committee – September 8, 2011 - Page 3
Mr. Austin asked if federal funds are signed off on by Internal Auditor regarding compliance
procedures to ensure requirements are met. Mr. Woodard stated that at this time this is not
the case.
Ms. Loredo noted that the internal auditing process seems very thorough.
Mr. Woodard informed that all department employees are members of the Institution of
Internal Auditors.
ADJOURNMENT
With no further business, the meeting adjourned at 1:37 p.m.
Recorded, transcribed and submitted by:
Sharon R. Wright, Manager, Board Services
Minutes Approved:
October 20, 2011