The official minutes of the University of South Carolina Board of Trustees are maintained by the Secretary of the Board. Certified copies of minutes may be requested by contacting the Board of Trustees’ Office. Electronic or other copies of original minutes are not official Board of Trustees' documents.

The Fiscal Policy Committee of the University of South Carolina Board of Trustees met Thursday, June 20, 2002, at 2:40 p.m. in the Carolina Plaza Board Room.

Members present were: Mr. M. Wayne Staton, Chairman; Mr. Alexander English; Mr. A.C. Fennell, III; Mr. Samuel R. Foster, II; Mr. Michael J. Mungo; Mr. John C. von Lehe, Jr.; and Mr. Herbert C. Adams, Board Vice Chairman. Members absent were: Mr. Robert N. McLellan; Ms. Darla D. Moore; and Mr. Mack I. Whittle, Jr., Board Chairman. Other Trustees present were: Mr. James Bradley; Dr. C. Edward Floyd; Mr. William C. Hubbard; and Mr. Othniel H. Wienges, Jr.

Others present were: President John M. Palms; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; Vice President and Chief Operating Officer J. Lyles Glenn; Vice President and Chief Financial Officer Richard W. Kelly; Vice President for Information Technology and Chief Information Officer William F. Hogue; Vice President for Human Resources Jane M. Jameson; Vice President for Student and Alumni Services Dennis A. Pruitt; General Counsel Walter (Terry) H. Parham; Vice Provost and Executive Dean for Regional Campuses and Continuing Education Chris P. Plyler; Associate Provost and Interim Vice Provost and Dean for Libraries and Information Systems John N. Olsgaard; Dean of the College of Library and Information Science Fred W. Roper; Associate Dean for Administration and Finance, School of Medicine, Brian J. Jowers; Associate Chancellor for Business and Finance, USC Aiken, Virginia S. Steel; Director of the Office of Budget William P. Bragdon; Assistant to the Vice President, Office of Business and Finance, Ken Corbett; Assistant Budget Director Glenda Ridgely; Assistant Treasurer Susan D. Hanna; Accounting and Fiscal Analyst, Office of Budget, Muctaru Kabba; Director of Internal Audit Alton McCoy; Professor, School of Law, and Chair of the Faculty Senate Robert M. Wilcox; University Legislative Liaison John Gregory; Director of the Office of Public Affairs Russell McKinney; and members of the media.

Chairman Staton called the meeting to order. He welcomed everyone present and invited them to introduce themselves. Mr. McKinney introduced members of the media who were in attendance. Chairman Staton stated that notice of the meeting had been posted and the press notified as required by the Freedom of Information Act; the agenda and supporting materials had been circulated to the Committee; and a quorum was present to conduct business.

Chairman Staton directed the Committee's attention to the agenda and called on Mr. Kelly.

1. Designated Fund Activity for Quarter Ending March 31, 2002: Mr. Kelly stated that information had been distributed to the Committee regarding the balance of the designated fund account ending March 31, 2002. He also noted that vendor discounts had been recorded as requested.

   Chairman Staton noted that this report was received for information.

2. Designated Fund Budget, 2002-2003: In accord with Fiscal Policy Committee practices, Mr. Kelly presented the proposed FY 2003 designated fund budget for approval. Information included the current budget as well as proposed increases. Mr. Kelly explained that the increased scholarship amount of $275,000 would be generated from Trademarks and Licensing revenue as well as athletic funds.

   Mr. Mungo moved approval of the Designated Fund Budget for 2002-2003 as described in the materials distributed for this meeting. Mr. von Lehe seconded the motion. The vote was taken, and the motion carried.

3. Other Matters: Internal Audit Budget: Secretary Stepp explained that the Board Office had mailed information to Committee members regarding the projected budget of the Department of Internal Audit under separate cover.

   The four-step approval process had been established the preceding year. Initially, Mr. McCoy, as director of the Internal Audit office, had submitted the proposed budget to Secretary Stepp and to the Chairman of this Committee. Secretary Stepp had presented the information to the University's Internal Budget Committee which had recommended a proposed budget, which was the same as originally submitted. At this time, Fiscal Policy Committee approval was requested in order for the budget line item to be included in the Executive Committee deliberations of the overall University budget.

   Mr. Adams moved approval of the Internal Audit budget as described in the materials distributed for this meeting. Mr. Bradley seconded the motion.

   Mr. Fennell questioned the amount of the data processing line item. Mr. McCoy explained that this money remained from the salary of an unfilled vacant position. He had not allocated the money to an expenditure category or hired another individual because of a possible budget cut. Because the Internal Audit budget did not have a contingency class code, Mr. McCoy had assigned the money to data processing equipment.

   The vote was taken, and the motion carried.

Secretary Stepp thanked Committee members for their willingness to postpone the review of four major audits until a called Fiscal Policy Committee meeting to be held following the June 27th Board of Trustees meeting; today's schedule would not have permitted adequate time for discussion.

Since there were no other matters to come before the Committee, Chairman Staton declared the meeting adjourned at 2:50 p.m.

Respectfully submitted,
Thomas L. Stepp
Secretary