BOT 11-5-2015 Agenda #7

Presentations

Strategic Planning Process overview by Joe Collins. Large task force involved representing all constituencies. Long-range plan involves larger goals and measurable tasks and objectives. Results of LRP process in recent years has been positive. Improvements in many academic areas based on great strategic plan. Graphs based on student success in key academic areas, retention, enrollment of students with high GPAs, graduation rate.

Presentation on investment process and options. Alix Partners, John Dishner presenting, Interim CFO. Found that self-management of investment portfolio stressed COD’s financial department. Issues with compliance, asset selecting, and reporting to BOT. Looked at other institutions, common for them to use outside management for investments. Presented recommendations that COD manage its own short-term capital (0-90 days) and retain¬†providers to manage¬†two different tiers of longer-range capital. Fees for these providers compare favorably to hiring people internally to do this level of financial management.

Financial controls re: WDCB and Waterleaf (same presenter).

WDCB thefts were accomplished by presenting things as “emergencies” and by not accumulating invoices from the same vendor. Station manager would have been in the best position to catch the problem, was not sufficiently engaged, and senior management did not ask enough questions. What has been changed? Management has changed, new manager following procedures. Proposing a new financial policy later in the meeting for consolidating invoices from single vendors that go over $25k.

Waterleaf / HLC issue easy to fix house accounts and alcohol reimbursement. Cultural shift in the organization. This has been addressed. Internal Auditor’s reporting environment changed, reports to President administratively and Audit Committee functionally.

Working on issue of conflicts of interest with Foundation board members. In the process of adding language to RFPs, must disclose conflicts. Watching this closely but will also be formalized.

Trustee questions and discussion went on for a while. Hamilton stated that we have greatly improved and we are identifying and resolving problems.