Regents Audit Review Committee Issues Directions Regarding University Financial Plans

by Larry D. Brumley

Links to other Regent committee reports are below under related stories.

The Baylor University Audit Review Committee, one of three special committees appointed last September to evaluate specific concerns raised by university constituents, today released directions to the administration resulting from its five-month study of financial issues.
The committee, chaired by Dale Jones, issued its report to the full board during last week's Regents meeting. The directions arising from the report are as follows:

DIRECTIONS TO THE ADMINISTRATION FROM THE
BAYLOR UNIVERSITY BOARD OF REGENTS
AUDIT REVIEW COMMITTEE
February 27, 2004

The financial plans of Baylor University have been impacted by the severe economic conditions of the last three years. Following five months of study by Regent committees, the Baylor University Board of Regents provided University administration the directions indicated below.

1. Present to the Baylor Board of Regents for its approval at its meeting May 14, 2004, the following financial reports:
A. A balanced budget for the fiscal year ending May 31, 2005, with particular emphasis on administrative and all other areas not directly affecting the delivery of education to Baylor students.
B. A revised Long Term Strategic Financial Plan including the following:
i. Extend the achievement of Vision 2012 at least three years.
ii. Reassessment of the capital expenditure plans and the related borrowing plans.

2. Based on the Board of Regents assessment of the University needs for aviation operation, sell the jet aircraft currently owned by the University.

The Board is aware that with this direction the achievement of some parts of Vision 2012 will be delayed beyond 2012. This delay will provide time to overcome present economic circumstances. The Board supports Vision 2012; however, the Board believes that the mission of Baylor University can be best served by an extension of time to allow recovery from the economic conditions of the last few years.