June 9, 2014 Audit/Finance Committee Meeting

Committee Members Physically Present

Larry D. Huffman, Chair
Michael C. Driscoll
Everett J. Solon

Others Physically Present

Jerry Corcoran, President
Cheryl Roelfsema, Vice President for Business Services and Finance
Sue Isermann, Interim Vice President for Learning and Student Development
Katherine Ross, Controller

The meeting was called to order at 5:30 p.m. by Dr. Huffman.

FY2015-2017 STRATEGIC PLAN FOR INFORMATION TECHNOLOGY

The Committee was provided a memo from Harold Barnes and Emily Vescogni which included a brief explanation of each expenditure related to a strategic plan project or expenditures not related to the plan, but which the cost is expected to exceed $10,000.  Each entry indicated the source of funding.  Also included was an executive summary of the FY14 Progress Report and the Report highlighting projects and activities from the past year.  The FY15 Update to the Information Technology Strategic Plan provides the anticipated expenditures for achieving the stated goal and objectives.  The PowerPoint focused on projects that are in the Plan for FY2015.  Wi-Fi Expansion is a top priority along with improved cell phone reception through a Distributed Antenna System.  Another project that Information Technology is working on is Microsoft 365.  This is a new product from Microsoft for students.  The Server Room will be upgraded by replacing 14 small Uninterruptable Power Supplies (UPS) with one high-reliability UPS in emergency power outages.  The Virtual Desktop Initiative will continue to be expanded.  Dr. Driscoll asked if the IT Strategic Plan was linked with the KPIs by number.  He would like to see it clearly linked with the KPIs.  It was noted there are a number of lap tops for loan in the library.  A set of 25 are checked out to students while they are in the library.  The laptops do not leave the library.  Project Success has maintained a fleet of 8 computers for their students.  There are software locks where every time the computer boots up, it is fresh.  Nothing is saved on the laptops.  The College does have insurance for the laptops, but there have been no instances.  The MIMIC lab stores laptops in combination lockers.  Jerry would like to see IVCC partner with another college to save the College’s data off campus.  Harold stated that community colleges that all use Colleague met and discussed this, but it didn’t go anywhere.  Currently, backups are stored in fire-proof and water-proof systems in Building B.  Harold would like to store the data at the Ottawa Center as another site.  Information Technology has a $1.5 million budget.  The College held off using reserves for IT projects until the CTC was complete.  It will be using reserves to fund the upgrades noted above.  There is a $5 per credit hour technology fee and this fee funds the classroom technology for students.

FY2015 BUDGET AND FY2014 FINANCIAL UPDATE

Cheryl Roelfsema reported the College is on target to come in on budget for FY2014.  For FY2015, the College faces some challenges.  Total operating revenues are expected to be $21.5 million, $187,000 less than last year.  This is based on flat enrollment, a 10 percent increase in tuition, flat funding from the State, a $73,600 grant for the distributed antenna system project, and $40,000 in gifts from the five area hospitals.  IVCC’s tuition is $111 per credit hour and the average state tuition for FY2015 is $118 per credit hour.  Summer enrollments are down 9.93 percent and the latest figures for fall are down by 8.72 percent.  This is down a total of approximately 2800 credit hours, a loss of $318,737.  A balanced budget is achieved based on a one percent increase in all salaries.  The College will be hiring a number of part-time faculty and increasing full-time faculty overload due to the Affordable Care Act regulations.  The College has cut its utility costs by 12 percent.  Even with the addition of the Community Technology Center, IVCC’s utilities have been low due to the low utility rates and the demolition of the temporary buildings.  Utility rates are expected to remain low for at least another year. Expenses for professional development have increased.  There is a long list of personnel positions that are not being filled. The only addition to personnel is a full-time dental assisting program coordinator. Due to the low enrollment figures a contingency of $186,000 is budgeted at this time.  The College will be looking at other reserves to cover the shortfalls.  If spring enrollments do not increase, the College will need to be prepared to make significant changes.  The administration has worked hard to increase enrollments, however it appears that the lack of adequate financial aid has significantly affected enrollments across the state at universities and community colleges. 

WORKERS’ COMPENSATION INSURANCE EXPERIENCE RATING

Cheryl Roelfsema shared with the Committee the NCCI Workers’ Compensation Experience Rating for IVCC for the last three years.  The rate has decreased each year from a 1.38 to a .97. A credit modification is a modification lower than 1.00.  If an employer runs a safe workplace, which includes implementing safety programs, the employer will be in a better position to receive a credit experience rating modification factor against their premium.  IVCC’s modification factor is a result of its safety-minded staff and faculty, supervisors providing a safe work environment, and Human Resources managing the claims well.

OTHER

None.

ADJOURNMENT

Dr. Huffman declared the meeting adjourned at 6:17 p.m.