University of Virginia Library

INDEPENDENT OUTSIDE AUDIT OF THE UNIVERSITY'S ACCOUNTS

Visitor Williams stated that he wished to propose that the Finance Committee be directed to arrange for the books and accounts of the University to be audited by an independent public accounting firm. He stated that he had proposed this as a matter of good business practice at the meeting of the Board of Visitors held on the 26th of February but that the suggestion had been opposed by Mr. Fenwick, the Rector, on the grounds that the books of the University are audited by the State Auditor of Public Accounts and that accordingly an audit by an independent accounting firm was unnecessary and would involve unnecessary expense. Mr. Williams stated that since this was Mr. Fenwick's last meeting as a member of the Board he had not pressed the matter but that after the election of Mr. Rogers as Rector he had discussed the matter with Mr. Rogers who had expressed himself as being in favor of an independent audit. He therefore made a motion to direct the Finance Committee to proceed at once to employ an outside private auditing firm to make such an audit at the earliest opportunity. During the discussion the Chairman of the Finance Committee, Visitor Hobbs, expressed his belief that the resolution should be amended to include directions to the Finance Committee to investigate and report on the legality and advisability of an outside audit and, in its discretion, either proceed to direct that such an audit be made or to report back to the Board on this matter at its next meeting. Mr. Williams stated that he did not think there should be further delay and would prefer to have the Board direct the Chairman of the Finance Committee to arrange promptly for the audit to be made.

After discussion, the Board adopted the following resolution:

• RESOLVED by the Board of Visitors of The Rector and Visitors of the University of Virginia that the Finance Committee be and it is hereby directed to investigate the legality and advisability of an independent outside audit of all the University's accounts and, in its discretion, either (1) proceed to select an auditing firm and direct that such an audit be made, or (2) report back to the Board on this matter at its next meeting.
• Mr. Williams asked that he be recorded as voting in the negative on the amendment and that the minutes record that he had proposed that an independent audit be made without further delay.