June 21, 2011 Audit/Finance Committee Meeting

The Audit/Finance Committee of the Board of Trustees of Illinois Valley Community College District No. 513 met at 5:15 p.m. on Tuesday, June 21, 2011 in the Board Room (C307) at Illinois Valley Community College.

Committee Members Physically Present

Larry D. Huffman
Michael C. Driscoll
Melissa M. Olivero

Other Board Members Physically Present

David O. Mallery
James A. Narczewski
Dennis N. Thompson

Others Physically Present

Jerry Corcoran, President
Cheryl Roelfsema, Vice President for Business Services and Finance
Rick Pearce, Vice President for Learning and Student Development
Lori Scroggs, Vice President for Planning and Institutional Effectiveness
Patrick Berry, Controller

The meeting was called to order at 5:15 p.m. by Dr. Huffman.

INFORMATION TECHNOLOGY STRATEGIC PLAN

Emily Vescogni reviewed projects completed in FY2011 which included a new student email system, installation of print release stations, increased broadband width, and replacement of computers to name a few. Document imaging is an extensive project but the admissions office worked with a vendor and implemented an email archival device. Emily Vescogni noted next year’s projects included physical science lab equipment, laptops for the physical science lab, and a tape backup system upgrade. Harold Barnes reviewed future projects in which funds were not available for this year. The Audit/Finance Committee members were in consensus to approve the Information Technology Strategic Plan. The Plan will be presented at the July Board meeting for approval.

FY2012 BUDGET

Cheryl Roelfsema and Patrick Berry presented a proposed budget based on the following major assumptions:

  • Credit hours are decreased by 2 percent based on FY11 actual amounts.
  • EAV is decreased by 1.5 percent.
  • CPPRT is increased by 11 percent based on FY11 actual amounts.
  • Level funding on the base operating grant
  • Pell grant is budgeted $1million less than FY11 budget because students are no longer eligible for two awards.

Ms. Roelfsema and Mr. Berry also touched on different points of interest in the budget. They proposed a tuition allocation change in Funds 1 and 2 – 85/15 to 89/11. Fund 2 has what it needs to operate and the education fund needs funds and thus the change in percentage. The $400,000 transfer to Fund 3 for future building projects has not been budgeted. It could be transferred to Fund 3 but Fund 3 has more restrictions. Fixed expenses increased by $69,000 in Fund 1 due to the full year of rent at the Ottawa Center. The committee members were comfortable with the proposed budget. The tentative budget will be presented to the whole Board in July. 

WIND TURBINE FINANCING

Reed Wilson, Kevin Lindemann, (NCICG) and Scott Engstrom (Ameresco representative) were present to discuss the proposed electricity generating wind turbine project. Illinois Valley Community College has developed new wind energy/renewable energy curriculum, constructed a MET tower on campus, plans to develop a larger wind energy lab/classroom in the Community Technology Center (CTC), and will utilize geothermal energy to power the HVAC systems in the new CTC building. The next major step is the construction of a full-sized electricity generating wind turbine. The current MET tower has indicated the wind speed is easily capable of supporting a full size wind turbine. A 1.5 megawatt turbine is the most feasible in terms of payback. The estimated cost of the wind turbine is $4.5 million. The proposed financing of the wind turbine is a $987,500 grant from the Illinois Clean Energy Community Foundation. The College would have a good chance on this grant which would be filed in January. Another grant of up to $1,750,000 from the Global Climate Change Mitigation Incentive Fund, administered by the U.S. Economic Development Administration (EDA), would need certification by a letter from the president or chief executive officer to complete the application. This requires a 50 percent match plus the remaining cost of the entire project. Payback period on the wind turbine would be less than six years if both grants were received. IVCC’s minimum investment would be $1.762 million which includes the required 50 percent match for the EDA grant. Options to fund the local share were to use fund balances or borrow the money and sell bonds. The members of the committee thought it was a great concept but had concerns on funding the project. The members of the committee decided to put the project aside and have the administration only come back to the committee again if a new conservative or financially feasible alternative way of funding the project could be presented.

SUMMARY OF NEW PERSONNEL POSITIONS (FY2011)

A review of new positions added in FY11 was presented to the committee. The new positions included a CNA instructor, Director of Nursing, an English instructor, and the Training Specialist position.

REDESIGNED INVESTMENT STATUS REPORT

The monthly Investment Status report has been redesigned to provide more information related to the updated investment policy. The committee decided this report should be a supplement to the current report

OTHER

None.

ADJOURNMENT

It was moved by Dr. Driscoll, seconded by Ms. Olivero, and carried unanimously to adjourn the meeting at 6:27 p.m. Motion passed by voice vote.