October 7, 2014 Audit/Finance Committee Meeting

Committee Members Physically Present

Larry D. Huffman, Chair
Michael C. Driscoll
Everett J. Solon (entered the meeting at 6:20 p.m.)

Others Physically Present

Jerry Corcoran, President
Cheryl Roelfsema, Vice President for Business Services and Finance
Deborah Anderson, Vice President for Academic Affairs
Kathy Ross, Controller

The meeting was called to order at 6:05 p.m. by Dr. Huffman.

FY2014 AUDIT

The comprehensive annual financial report for the fiscal year ending June 30, 2014, was distributed to the committee members.  Mr. Randy Ragan of McGladrey, LLP, reviewed portions of the report and the auditors’ opinion is “unmodified” which is the highest level an institution can receive.  Last year’s student enrollment did not meet the level used in budget development, but through careful management of expenditures, the operating fund ended the year with a positive balance of approximately $80,000 – a deficit of about $26,000 in the Education Fund and a surplus of about $106,000 in the Operations & Maintenance Fund.  Mr. Ragan noted the Summary of Recorded Audit Adjustments.  Every year these exist and are not to be viewed in a negative fashion.  The number of adjustments is not unusual in a community college.  There were also a couple of “uncorrected misstatements” in the recognition of tuition revenue related to summer session, as well as one relating to Capital Development Board revenues and IVCC’s related matching expenditures for the CTC project.  These “uncorrected misstatements” were considered to be immaterial to the College’s financial statement disclosures.  Mr. Ragan provided four recommendations to address deficiencies in the College’s internal controls, and the administration has either already implemented procedures or is the process of developing the necessary procedures pursuant to the auditors’ recommendations.  The deficiencies identified by the auditors did not rise to the level of a “material weakness.”  Ms. Jill Prescher of McGladrey, LLP, reviewed the Comprehensive Annual Financial Report with no significant changes.

ADJOURNMENT

Dr. Huffman declared the meeting adjourned at 6:58 p.m.