FGCU audit committee approves foreign-influence and state/federal audits, flags travel-approval gaps

Director of Internal Audit Bill Foster told the Florida Gulf Coast University Board of Trustees Audit & Compliance Committee on May 29 that the Foreign Influence Audit, required by Board of Governors Regulation 9.012, found no evidence of gifts or contracts from countries of concern meeting the $50,000 reporting threshold but did identify weaknesses in travel approval and documentation.

"During the January 1 to December 31 audit period, the University received 2,879 job applications," Foster said, summarizing the audit sampling approach. He said a statistically valid sample of 60 applications was used for the review and that the audit followed AICPA sampling guidance.

Foster said the Foreign Influence Audit noted three categories of issues in travel records managed through the VEOCI travel registry: six travel requests were initiated less than 45 days before travel, four requests were approved without documented review from the Foreign Research Office, and three lacked the traveler's electronic signature date required upon completion of travel. Foster added none of the reviewed travel requests involved destinations identified as countries of concern under the regulation.

"There was no available evidence of the University receiving gifts (individually or in combination) valued at $50,000 or more from a foreign source," Foster said.

Committee Chair Joseph Fogg and trustees stressed that the travel-documentation lapses, while appearing technical, should not be allowed to persist. Foster said the Global Engagement Office committed to implementing enhanced internal controls immediately and that the issues had been discussed with relevant offices.

On a separate item, Foster presented the State of Florida Compliance and Internal Controls Over Financial Reporting and Federal Awards Audit for the fiscal year ended June 30, 2024. He told the committee the University was subject to the federal single-audit requirement because it received more than $750,000 in federal funds; the report for the current year was clean, and prior-year findings that remained were summarized in the packet.

Trustee Peter Sulick moved to approve the Foreign Influence Audit and recommend it to the full Board; Trustee Luis Rivera seconded. The motion passed unanimously. Trustee Luis Rivera moved to accept the State of Florida Compliance and Internal Controls Over Financial Reporting and Federal Awards Audit and recommend acceptance by the full Board; Trustee Peter Sulick seconded. That motion also passed unanimously. Chair Fogg said both items will be presented to the full Board on June 10 for final action.

The committee discussed recent non-compliance issues involving FGCU Athletics and the need for administration to ensure that procedural lapses — such as missing signatures and untimely filings — are corrected to prevent future publicity and compliance risk. Foster said individual briefings for trustees had been provided and that staff committed to follow-up steps.