The law established new standards of conduct for Officers and Directors of publicly traded companies, new regulations for public accounting firms, and civil and criminal penalties for transgressions.
Mr. Owen explained that although the law does not apply to colleges and universities, certain provisions have relevance to higher education as "best practices" for management and governing boards. The National Association of College and University Business Officers (NACUBO) issued an Advisory Report in November, 2003 to provide guidance on "best practices" to implement from the Act. Particular areas of emphasis concerned auditor independence, ethical principles and codes of behavior for senior management, and the role and function of the Audit Committee.
Mr. Owen explained that the University of Kentucky was in compliance with many of the NACUBO recommendations and provided a separate handout titled University of Kentucky Compliance with NACUBO Advisory Report 2003-3.
Following the presentation there was a brief question and answer session. H. Review of Board Regulations
Ms. Jones talked about the Governing Regulations. She said there were four regulations that need to be considered this year, and she elaborated on each of them.
With the executive committee and committee structure being one of the four that needs consideration, there was a discussion about the structure of the committees, their functions, the membership and size, and how the Board reached where they are today with the committee structure. Mr. Wilcoxson emphasized that those appointed to the committees should have expertise in the appropriate area in order to be productive for the university.
I. 2006 Meeting Schedule
Mr. Hardymon called attention to the proposed 2006 meeting schedule that had been sent to the Board. He noted that he had changed a couple of dates in order to accommodate some members' schedules; however, he was not able to change one of the dates. The Board talked about the dates. A few members indicated that they had problems with certain dates but would attend as many meetings as possible. The proposed schedule was agreed upon and will be presented at the September 20 meeting.
J. General Discussion on University Hospital
Ms. Young gave a brief report on the hospital. She talked about the number of staff that had been added and the economic driver that it is for the city and state. She addressed the following items in her report:
The hospital has received $100 million in bonding from the state. An investment policy is going to be established.