February 5, 2009 Minutes of Audit/Finance Committee Meeting

TUITION INCREASE AND COURSE FEE ADJUSTMENTS

The administration recommended increasing tuition from $60.50 to $62.50 per credit hour to be effective with the summer 2009 semester.  Combined with the universal fee of $7.25, the total tuition and universal fee charged per credit hour would be $69.75, an increase of 3.0 percent.  Early Entry College (E²C) courses are charged one-half of the standard tuition rate.  By raising the standard tuition rate to $62.50, high school students in the E²C program in fiscal year 2010 would pay $31.25, a $1.00 per credit hour increase. E²C students do not pay the universal fee.  Mr. Setchell asked the administration to look into guaranteeing a tuition rate for full-time students entering IVCC and finishing in two years similar to what four-year universities are offering.  It would be a benefit for planning and an incentive for completing a degree.  IVCC has only increased the tuition rate by 11 percent the last five years compared to the state average of 42 percent. Five years ago Illinois Valley was the seventh highest in state tuition and currently it is the seconded lowest.   The administration is also recommending course fee changes for FY10.  Using the approved course fee guidelines, course fees were reviewed and a listing of course changes was distributed.  Several courses in the healthcare area had course fee changes due to the increased cost of dedicated computer software, certification fees, testing fees, and consumable supplies.  A series of new welding courses were added which resulted in new course fees and a few welding course fees were increased due to the increased cost of steel and gases.  Ms. Fuller was concerned with the increased cost in the course fees (specifically the healthcare and welding) as to the feasibility for students to afford these courses.  It was noted that only one or two of the courses are taken in one semester and if the student is eligible for financial aid, the course fees are covered.  Ms. Fuller discussed the tuition increase with the students and they were in agreement.  The committee was in agreement with the increases in tuition and course fees as presented.  This item will be presented at the February Board meeting.

AUDIT SERVICES

The firm of Gordon, Stockman & Waugh P.C. has been providing independent audit services for fiscal years 2006, 2007, and 2008.  The administration is recommending to extend the contract for fiscal years 2009 ($30,500), 2010 ($31,500), and 2011($32,500).  Ms. Roelfsema reported that the auditing firm has been very thorough, responsive, and provided great service the last three years.  It was been the practice of the college to bid a three-year contract and then extend it another three years before going out to bid again.  It was the consensus of the committee members that the increase is very reasonable and a recommendation will be presented at the February Board meeting.

IRC 403(b) THIRD PARTY ADMINISTRATOR

Changes have been made by the Internal Revenue Service in regard to 403(b) plans.  IVCC currently has 66 employees participating in the 403(b) plan.  The College has reduced the number of vendors that will be allowed to accept employee contributions from ten to four.  With the new changes there is a greater responsibility in administering these plans. The administration has been unable to contract with a third party administrator that will accept all four vendors.   The administration requested approval to enter into an agreement with a consultant for assistance in locating a third-party administrator.  There was no consensus among committee members to contract with a consultant.  It was suggested to self-administer the plans through the College.  It was also suggested to have each vendor administer their own plan and the College could receive a quarterly report and maybe place limitations on the plans.  It was also suggested that continuing education offer courses when there are changes in regulations.  Ms. Roelfsema stated the college will continue to administer the 403(b) plans internally.

IDENTITY THEFT LOSS PREVENTION

The Federal Trade Commission has issued regulations intended to protect consumers from identity theft known as the Red Flags Rule.  Most colleges and universities are likely to be subject to the rule and are required to adopt and follow a written identity theft policy.  The Red Flags Rule went into effect November 1, 2008 and will be enforced as of May 1, 2009.  Harold Barnes stated he would not be comfortable in developing a plan and felt this is too critical of an issue to cut corners.  This would be another load on the College’s employees and there was concern that something would get overlooked.  The administration recommended engaging the services of Identity Theft Loss Prevention, LLC to assist in developing a program to detect, prevent, and mitigate losses due to identity theft.  Two other community colleges, Lake Land and Rend Lake, have recommended the services of this company.  Three other community colleges - Prairie State, Kishwaukee, and Southwestern - are also pursuing the services of a company and it was suggested to partner with them and possibly receive a reduced rate. It was also suggested that IVCC request the company’s top team to develop a program. Ms. Roelfsema and Mr. Barnes will look into this.