Minutes of the Meeting of the 
Audit Committee of the Board of Trustees of the State University of New York
October 28, 2011


The Audit Committee of the Board of Trustees of the State University of New York met in New York City on October 28, 2011 at 11:00 a.m.

Committee members present: 	New York City: 	Chairman Hunt and Trustee 
				Lewin

Audio: 		Trustee Belluck

Other Trustee present:	New York City: 	Chairman McCall

Syracuse (via video): Trustee Murad

Staff present:	New York City: 	Mr. Abbott, Mr. Dantis, Mr. Howard, Mr. McGrath, and Ms. O’Day 

Albany (via video): 	Mr. Hutzley, Mr. Matthews, Ms. Montalbano, Ms. Preston, and 
      Ms. Quay

Syracuse (via video): Mr. Thurlow

Guests present:	New York City:  	Mr. Kennedy, Ms. LaGue, and Ms. Letts (KPMG); Mr. Flood and Mr. Knych (Fust Charles Chambers)

Albany (via video): 	Mr. Dhruv (KPMG) and Ms. Kunchala (Research Foundation)


The meeting was called to order at 11:06 a.m. by Chairman Hunt.  The minutes of the previous meeting of the Committee were unanimously approved. 

The first item on the agenda was a report by Michael Abbott, University Auditor, regarding the audits of the Research Foundation being conducted by the New York State Office of the State Comptroller and the New York State Inspector General. Mr. Abbott advised that the audits are ongoing and the Office of the State Comptroller is scheduling campus visits.
The second item on the agenda was a review by KPMG, SUNY’s independent external auditors, on the results of their audit of SUNY’s financial statements for the fiscal year ending June 30, 2011. KPMG indicated that they were not aware of any significant deficiencies or material weaknesses in the design or operation of internal controls. KPMG indicated that they anticipate issuing an unqualified opinion on the financial statements. 

The third item on the agenda was a review of SUNY’s financial statements for the 2010-2011 fiscal year. Mr. McGrath reviewed the highlights of these statements, including net assets. The financial statements show an increase in net tuition and fees that was primarily the result of higher professional and nonresident tuition rates, an increase in hospital and clinic revenue that was due to an increase in inpatient and outpatient visits and rates, and a decrease in State appropriations. Significant factors contributing to the increase in expenditures included postemployment benefit obligations and fringe benefits.

Chairman Hunt then called for an Executive Session under provisions of Section 105 of Article 7 of the Public Officers Law.  It was unanimously agreed to convene an Executive Session at 11:44 a.m. for the purposes specified by Chairman Hunt. Chairman Hunt recessed the Executive Session at 11:53 a.m.  No motions or actions were taken in Executive Session. The Audit Committee meeting was reconvened at this time.

The fourth item on the agenda was a review by Fust Charles Chambers (FCC), the independent external auditors for SUNY’s hospitals, on the results of their audit of the hospitals’ financial statements. The financial statements were audited as of December 31, 2010 and each received an unqualified opinion. FCC also indicated that they were not aware of any significant deficiencies or material weaknesses in the design or operation of internal controls. 

The fifth item on the agenda was a presentation of key financial data for SUNY Hospitals for the 2010 fiscal year. Ms. Preston highlighted key factors affecting revenue, expenses, and net assets for each of the hospitals.

There being no further business, the meeting was adjourned at 12:34 p.m.

Audit Committee Draft Mi

Audit Committee Draft Minutes – October 28, 2011
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