PERALTA COMMUNITY COLLEGE DISTRICT
AUDIT AND FINANCE COMMITTEE MEETING
MINUTES
Date:
Location:
Start time:
End time:
June 17, 2008
Chancellor’s Conference Room, District Office
5:10 p.m.
6:10 p.m.
PRESENT:
Bill Withrow, Chair
Cy Gulassa, Trustee
Gail Waiters, Inspector General
Tom Smith, Vice Chancellor for Finance and Administration
Gary Perkins, Director, Information Technology
Sadiq Ikharo, Vice Chancellor for General Services
ABSENT:
William Riley, Trustee
Abel Guillén, Trustee
Joseph Bielanski, President, District Academic Senate
AGENDA:
1. Review and approve the agenda.
2. Review and approve the minutes of the March, April and May 2008
meetings.
3. Discuss Action Plans for all significant and material weaknesses that
were documented in the External Audit Report for the fiscal years
2005-06 and 2006-07 and the current status of each (TS).
4. Discuss the progress to date in developing and implementing
Program Based Budgeting techniques for FY 2008-09 (TS, GY and JB)
5. Review the status of the Retiree Healthcare Trust Investments and
modification of Asset Allocation to ensure that we are adequately
positioned for the future economy and market. (TS, MH, Lehman)
Chair Withrow opened the meeting at 5:10 p.m. Meeting minutes were deferred to the
next meeting in July.
Item #3 – Discuss Action Plans for all significant and material weaknesses that were
documented in the External Audit Report for fiscal years 2005-06 and 2006-07 and the
current status of each (Vice Chancellor Smith)
VC Smith distributed a memo to Audit committee indicating the nine (9) items currently
completed or underway to address material weaknesses.
The first two items concern the position control module project which was board
approved, estimated date for completion is January 2009. When completed District will
have integrated budget development and HR/Payroll up and running. Until then
budgets will be uploaded through excel spreadsheets. Finance is working with business
managers to have proper coding on their budgets.
Chair Withrow asked about the work being done manually, will auditor say lack of
control because it is a manual process. VC Smith said no, their problem is the way
budget loaded we could not post salaries, we could post requisitions and that expense,
June 17, 2008
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and payroll had too many incorrect codes from colleges. Now everything will be
reviewed from excel spreadsheet and then uploaded.
The District is still struggling with functionality of PeopleSoft and will be adding more
staff training. Struggle we had was pulling up accounts payable detail and we now
know how to do that. RWD will be coming in to document this process. District will be
hiring a technical classified person to work with Minh Lam to create the procedures.
Chair Withrow questioned how the information is being validated. CIO Perkins said
that RWD going through the first part of it, then when upgrade in, we will go back
through for implementation.
VC Smith indicated the system is fine; it was the implementation that was wrong.
PeopleSoft should have been implanted the same way the student administration
system was. We are just lucky that we did not miss payroll or have system crash on us.
VC Smith said the asset management portion is in final testing and staff are being
trained to operate. Getting equipment in so Shawnee (Warehouse Manager) can tag and
scan and record into PeopleSoft. We will load assets and do reconciliations starting
7/1/2008. Chair Withrow asked if this will be set so someone can not tamper with the
system. VC Smith stated we have different access levels. VC Ikharo said it should work
out for fixed assets. It is designed to work doing asset tags through the vendor, so
when unit comes in, it has already been tagged to download in system. Some things will
go directly to campus but will have been tagged by vendor for scanning in system.
Each site will have there own scanner for checking in. After all information has been
entered it will follow you and business managers will be responsible for moving the
items. Chair Withrow said if they (business managers) are going to be held accountable
it needs to be in their job description. Once the items have been placed in the
classroom, it will become the faculty member’s job to be held accountable for their
items. Discussion ensued around who will be responsible for items left in classroom.
VC Smith said a SAS 70 audit is planned for 2009. We need to make sure all modules
are in and working. An audit sends IT auditors who test system and look at internal
controls to make sure system is protected so someone can not commit fraud. Certify
and test equipment software rather than hardware.
OPEB debt error by Lehman will not reoccur. Also under Chancellor, Special Assistant
to Chancellor is performing a review of purchasing and accounts payable processes.
Think we can do some customization to fix sales tax problem.
Lastly, adding student services position to report to Associate Vice Chancellor in
Education Services for Financial Aid. VC Smith indicated the District will be bringing in
financial aid experts and aid will be approved here, not sure how to set up yet. CIO
Perkins said that certain documents need to be in file or a check can not be issued.
Regent (software program) will bring in certain levels of access so that you can’t
manipulate. George Herring is currently working on this. Chair Withrow stated that
with the federal audit, we will need to bring our credibility up and show that we are
fixing the problem.
Item #4 – Discuss the progress to date in developing and implementing Program Based
Budgeting techniques for FY 2008-09 (Vice Chancellor Smith, Vice Chancellor Yee and
DAS President Bielanski)
VC Smith said that VC Yee and DAS President Bielanski have been busy with
Accreditation and Planning. No talks with either one about this topic.
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Chair Withrow says this has to do with WASC, he wanted it in and is looking for an
approximation, involves cash, people, time and space – bottom up process. Basic skills
important program to District, how are we allocating resources? We say it’s important
but we have no money in it. VC Smith said state has already done program based
budgeting, but they never had the money to fund it. State has almost abandoned the
process because of what is involved. District needs the Education Master Plan to tie in,
colleges are now starting to share and look at combining departments.
Chair Withrow stated we need to know when we don’t have the resources and plan
ahead. Can look at what funds we have; VC Smith was hoping CIPD would do that.
They have not killed a program since he’s been here.
The District needs to make sure they are not cutting classes that students need to keep
on track to graduate. VC Smith indicated that the Presidents have been told their FTES
targets – lowered Merritt and Laney, resources will move it they don’t start cutting.
Chair Withrow talked about moving faculty to different colleges to meet needs.
Item #5 – Review the status of the Retiree Healthcare Trust Investments and
modification of Asset Allocation to ensure that we are adequately positioned for the
future economy and market (Vice Chancellor Smith)
There are no numbers for May yet, VC Smith expecting them to be better than April.
The meeting adjourned at 6:10 pm. The next meeting is scheduled for Thursday, July
10th from 5:00 p.m. to 7:00 p.m.
Meeting recorded by: Jennifer Lenahan
June 17, 2008
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