June 24, 2019 Audit/Finance Committee Meeting

Committee Members Physically Present

Everett J. Solon, Chair
Jay K. McCracken (entered at 4:32 p.m.)
Melissa M. Olivero

Committee Members Absent

Board Members Physically Present

Jane E. Goetz, Board Chair

Others Physically Present

Jerry Corcoran, President
Cheryl Roelfsema, Vice President for Business Services and Finance
Deborah Anderson, Vice President for Academic Affairs
Bonnie Campbell, Associate Vice President for Academic Affairs
Chris Dunlap, Director of Information Technology Services
Kathy Ross, Controller

The meeting was called to order at 4:30 p.m. by Mr. Solon.

FY2020 TENTATIVE BUDGET

The Committee was presented with a draft of the FY2020 tentative budget.  The budget is in draft stage but the numbers are not likely to change before the budget is presented to the Board of Trustees at the July 11, 2019 meeting. The budget is built on the same assumptions shared with the Audit/Finance Committee in January 2019, but many of those assumptions have been updated as further information has become available. Ms. Roelfsema reported that the FY2020 budget revenue for all funds is $32,065,165, a 1.4 percent increase over the FY2019 budget and 3.0 percent over the FY2019 projected actual. Budgeted expenditures are $32,362,436, a 6.0 percent decrease from the FY2019 budget and 7.5 percent under the FY2019 projected actual. For all funds there is a deficit of $220,857 which was covered with an excess fund balance from tort and auxiliary enterprise funds. The FY2020 budgeted operating revenue is $22,294,319, an increase of less than one percent over FY2019. Operating fund expenditures are $22,284,319, again less than a one percent increase over FY2019. Ms. Roelfsema reported that the FY2020 tentative budget revenues versus assumptions are: 1) EAV increased by 2.3 percent; 2) Property tax rate increased slightly to .3666; 3) No change in the equity tax rate which remains at .1212; 4) Tuition credit hours were decreased to 53,000 from 56,000; 5) Tuition rate and universal fees remain at $133 per credit hour; and 6) State funding remains at $1,845,000 with ICCB final appropriation by college available July 1. Ms. Roelfsema noted that salaries and benefits are the majority of the budget. Salary increases are budgeted at 2.3 percent over the FY2019 budget. The January 2019 assumption was at 2.0 percent. The SEIU Local 138 contract was renegotiated through academic year 2020/2021 with average increases of 2.79 percent the first year; 2.81 percent the second year; and 2.75 percent the third year. There are two new personnel positions budgeted: Instruction Information Technologist, full-time in Learning Resources and Cybersecurity Analyst, part-time in Information Technology. Ms. Roelfsema reported that benefits are budgeted to increase by five percent. The administration continues to look for ways to keep health insurance affordable and there is no change from the January 2019 assumption. Mr. Solon thanked Ms. Roelfsema and the administrative team for the work that has been done on the budget. The committee commended the administration for the teamwork in presenting a balanced budget and was in agreement that the FY2020 tentative budget be reviewed by the full Board at the July 11, 2019 Board meeting.

FY2019 FINANCIAL UPDATE

Ms. Roelfsema reported that the administration has worked to keep costs in line with enrollments while looking for new programs to offer and investing in facility upgrades. Ms. Roelfsema noted that we are optimistic that with the recent hiring of five new faculty it will rejuvenate existing programs and bolster enrollments. The five new faculty members for academic year 2019/2020 are for programs: automotive, welding, industrial maintenance, agriculture and nursing. The agriculture position was new in FY2019 as well as the cybersecurity position, which remains unfilled. Facilities upgrades included a new building for the agriculture program. Mr. McCracken suggested pursuing marketing through social media as a possible avenue to increase enrollments. The committee congratulated Dr. Corcoran, Ms. Roelfsema and the administrative team for a job well done.  

INFORMATION TECHNOLOGY SERVICES ANNUAL PLANS

The Information Technology Services Annual Plans outlined the status of FY2019 projects and the major projects list for FY2020 and FY2021. Mr. Dunlap reported that the listed projects include those that have a cash outlay as well as those projects and initiatives that take manpower but little to no additional funding. Mr. Dunlap highlighted the following: 1) Website redesign is going live in July 2019; 2) the upgrade to the R25 scheduling software is going live in July 2019; 3) converting Windows 7.0 to Windows 10.0 is in progress with a deadline of December 2019; and 4) the implementation of the Student Planning Module is in progress with a go live estimated in February 2020.

DUAL CREDIT ANNUAL REPORT

High school students enrolled in dual credit courses continue to account for about ten percent of overall enrollment. There were 928 high school students enrolled in IVCC dual credit courses in 2018/2019 generating nearly 6,000 credit hours. Ms. Campbell reported that overall enrollment remained steady with Career and Technical Education (CTE) credit hours staying level. There was a slight increase in online fall credit hours due to the addition of two online courses. Ms. Campbell noted that a total of 131 students paid only a $5 registration fee in line with the college’s tuition waiver for free and reduced lunch-eligible-students. She added that all other dual credit students receive a 25 percent tuition discount. Mr. McCracken thanked IVCC for the Dual Credit program which he noted is so valuable.

ADDED REPLACEMENT POSITIONS BY FISCAL YEAR

A document on new/replacement positions by fiscal year was included for Board awareness of these college positions. Dr. Corcoran noted that filling all of the positions listed was prudent and the impact of each has been positive.

OTHER

Dr. Corcoran thanked Kathy Ross who was present for the meeting for her significant contributions to the budget document and for a job well done.

Dr. Corcoran informed that with the decrease in credit hours there has been a resulting decrease in the amount of the activity fee that supports the 45 student clubs and organizations. The administration proposes directing the $15,000 stipend that pays the coordinator of the student clubs and organizations to the education fund. Ms. Goetz noted that student involvement brings ownership for the whole college campus and culture. Mr. Solon agreed and added that this action would support organizational leadership skills outside of the classroom, involvement for students and would overall be a great investment. The committee agreed that the stipend for the coordinator of student clubs and organizations be directed to the education fund.

ADJOURNMENT

Mr. Solon declared the meeting adjourned at 5:00 p.m.