October 19, 2018

MINUTES OF THE BOARD OF GOVERNORS’
FINANCE AND FACILITIES COMMITTEE
MISSOURI STATE UNIVERSITY
FRIDAY, OCTOBER 19, 2018, 8:30 A.M.
PSU BALLROOM EAST, 3rd FLOOR

Present - Mr. Craig Frazier, Committee Chair
Ms. Amelia Counts, Committee Member        
Mr. Gabriel Gore, Committee Member
Ms. Beverly Miller, Committee Member
Mr. William Miller, Committee Member
Mr. Kendall Seal, Committee Member
Ms. Carol Silvey, Committee Member
Mr. Gregory Spears, Committee Member
Ms. Carrie Tergin, Committee Member

Absent - Ms. Virginia Fry, Committee Member

Also Present - Mr. Clifton M. Smart III, President of the University
Dr. Jim Baker, Vice President for Economic Research and Development & International Programs
Mr. Michel Bampoe, Assistant Director of Human Resources-Benefits
Ms. Donna Christian, Director of Internal Audit and Compliance
Dr. Chris Craig, Deputy Provost
Mr. Ryan DeBoef, Chief of Staff and Assistant to the President for Governmental Relations
Ms. Rachael Dockery, General Counsel
Ms. Nicki Donnelson, Assistant Director, University Communications
Mr. Brent Dunn, Vice President for University Advancement
Dr. Frank Einhellig, Provost and Chancellor of the Mountain Grove Campus
Ms. Tammy Few, Director of Human Resources
Mr. Steve Foucart, Chief Financial Officer
Dr. Shirley Lawler, Chancellor, West Plains Campus
Dr. Julie Masterson, Dean, Graduate College        
Dr. Victor Matthews, Dean, College of Humanities and Public Affairs
Ms. Lyn McKenzie, Assistant Director of Human Resources
Ms. Pam Mathis, Med-Pay, Inc.
Dr. David Meinert, Interim Dean, College of Business
Mr. Jeff Mitchell, Associate General Counsel
Mr. Matt Morris, Vice President for Administrative Services
Mr. Jeff Morrissey, Chief Information Officer
Mr. Tom Peters, Dean, Library
Mr. Wes Pratt, Chief Diversity Officer and Vice President for Diversity and Inclusion
Mr. Greg Rainwater, Budget and Financial Manager, Provost Office
Dr. Helen Reid, Dean, College of Health and Human Services
Ms. Claudette Riley, News-Leader
Mr. Scott Schneider, Director, Business and Support Services, West Plains
Ms. Suzanne Shaw, Vice President for Marketing and Communications
Dr. Dee Siscoe, Vice President for Student Affairs
Mr. Gary Stewart, Director, Residence Life, Housing and Dining Services    
Ms. Vonda Yarberry, Department Head, Art and Design
Ms. Kristan Gochenauer, Secretary of the Board of Governors
        
1.    Roll Call – Mr. Craig Frazier, Committee Chair, called the Finance and Facilities Committee meeting to order at 8:30 a.m. on Friday, October 19, 2018, on the Missouri State University campus.

2.    Approval of Minutes – Mr. Frazier mentioned that the first item of business was the approval of the minutes from the June 22, 2018 meeting.  Ms. Carol Silvey made a motion, seconded by Mr. Gabriel Gore. 

Motion passed unanimously.

3.    Review Unaudited FY2018 Preliminary Financial Statements – Mr. Steve Foucart, Chief Financial Officer, reviewed the fiscal year-end report noting strong financial performance.  He did note that budget to actual comparisons show a decrease in cash investments, but overall the University is tracking well and in a substantially good position.  

4.    FY19 Budget Update – President Clif Smart discussed the summer/fall 2018 revenue to budget review.  An adjustment to the FY19 internal operating budget is being recommended secondary to changes in tuition, state funding and healthcare costs. 

President Smart reviewed the employee medical insurance plan.  Costs for healthcare have continued to increase for the University resulting in ongoing and increasing budgetary shortfalls.  A medical plan analysis along with a timeline were reviewed with the committee.  Based on advice from Med-Pay, Inc., analysis by the University’s Health Care Plans and Benefits Committee, and feedback from Springfield Faculty Senate, Springfield Staff Senate and faculty and staff on the West Plains Campus, Administration is recommending a two-tier medical plan with premium changes to be implemented effective January 1, 2019.  Administration will report back to the committee in the next year on the impact of changes to the plan.

President Smart then discussed the on-going mid-year compensation increase recommendation stressing the importance of doing a salary increase across the board for both the Springfield and West Plains campuses.  Approval of a 1% across the board plus $600.00 compensation increase effective January 1, 2019, will be recommended at the regular Board meeting.

Mr. Foucart then presented the TAFP FY2019 budget for both the Springfield and West Plains campuses.  For FY2019, an increase in State appropriations is realized, but this is countered by a net decrease in revenue and increased medical costs.  Administration recommends funding an expected shortfall through one-time money.  Mr. Foucart recommended approval of the request for FY19 Internal Operating Budget Amendment for year ending June 30, 2019.  The Committee unanimously agreed to approve the resolution at the regular Board meeting.

5.    Facilities and Equipment – Mr. Matt Morris, Vice President for Administrative Services, will present on Brick City at the regular Board meeting.  All other proposals are routine items and will be recommended for approval at the regular Board meeting. 

6.    Review of Proposed Investment Policy (G8.04) Revisions – Mr. Foucart reviewed the amended version of Investment Policy (G8.04), noting revisions have been made for clarification and have no impact on the University.  Ms. Silvey recommended that the Board approve the resolution at the regular Board meeting.  Mr. Gregory Spears seconded the motion. 

Motion passed unanimously. 

7.    Adjournment – Mr. Frazier adjourned the Finance and Facilities Committee meeting at 10:23 a.m. on the motion of Mr. Gore, the second of Ms. Beverly Miller, and the unanimous approval of the committee.

Kristan Gochenauer
Secretary to the Board