November 14, 2019 Audit Finance Committee Meeting

The Audit/Finance Committee of the Board of Trustees of Illinois Valley Community College District No. 513 met at 5:00 p.m. on Thursday, November 14, 2019 in the Board Room (C307) at Illinois Valley Community College.

Committee Members Physically Present

Everett J. Solon, Committee Chair
Jay K. McCracken
Maureen O. Rebholz

Committee Members Absent

Board Members Physically Present

Jane E. Goetz, Board Chair
Amy L. Boyles

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
Kathy Ross, Controller

The meeting was called to order at 5:05 p.m. by Mr. Solon.

FY2019 ANNUAL FINANCIAL REPORT

The comprehensive annual financial report for fiscal year ending June 30, 2019 was reviewed by auditors Ms. Sara McKenna and Ms. Heather Wrobleski of Wipfli, LLP in Sterling. The opinion of the auditors is that IVCC earned an unmodified report meaning that the audit is “clean” with no weaknesses or deficiencies. The auditors advised that IVCC is one of the few community colleges in Illinois that is debt-free. Ms. McKenna noted that IVCC is the only debt-free community college out of eight community colleges that are audited by Wipfli LLP. Ms. McKenna added that this is very good on the part of the college. Ms. McKenna provided the following comments and suggestions with respect to matters that come to Wipfli’s attention in connection with the college audit. Ms. McKenna informed that during the inventory test observation five errors out of forty test counts were found. She noted that we had not found errors during our previous years’ observations. The administration believes that these errors were caused by the new inventory scanners used for the inventory count. Wipfli recommends that the bookstore correct the scanning issue before the next count so that the inventory balance can be properly reported. Wipfli also recommends that the college management develop a written disaster recovery plan for information technology systems.

 

Mr. Solon commended Dr. Corcoran, Ms. Roelfsema, Ms. Ross and the entire Business Services & Finance office staff for the outstanding annual financial report. Dr. Corcoran commented that because of the prudent fiscal management of Ms. Roelfsema we are on solid financial footing at IVCC.  

 

Ms. McKenna and Ms. Wrobleski left the meeting at 5:28 p.m.

ADMINISTRATIVE PROCEDURE – PURCHASING 4.11

Ms. Roelfsema noted that the proposed change to Administrative Procedure – Purchasing 4.11 will increase the threshold for purchases requiring Board approval from $10,000 to $25,000. Also under the change, purchases between $2,500 and $24,999 will require two-to-three written quotes. Ms. Roelfsema advised that the proposed change will bring IVCC in line with what the other Illinois community colleges are doing. It was moved by Mr. McCracken and seconded by Dr. Rebholz to approve the proposed change and recommend to the full Board the Administrative Procedure - Purchasing 4.11, as presented. Motion passed by voice vote.

DUAL CREDIT TUITION/FEE STRUCTURE

Dr. Anderson requested that consideration be given to the following dual credit pricing structure:

  • Courses taught at the high school by a qualified high school instructor institute a flat fee of $30 per course.
  • Courses taught at high schools by IVCC instructors maintain the current 75 percent of tuition rate.
  • Courses taught at IVCC including online classes reduce the on-campus rate to 75 percent of tuition rate and maintain current online rate of 75 percent of tuition rate.
  • Maintain the Free and Reduced Lunch discount.
  • Maintain the 30 for 30 discount (students with 30 credit hours through dual credit are eligible to take another 30 credit hours at the reduced tuition rate).
  • Maintain $500 annual payment to high schools to help defray administrative costs.

 

Mr. Solon inquired if we have data regarding students receiving the free and reduced lunch and returning to enroll in classes at the college. Dr. Anderson advised that the student-return rate is approximately 30 percent. Mr. McCracken suggested that when advertising the Transfer Academy that the College and Career Start programs be promoted as well at the same level. He added that including the three options will provide clarification and consistency in the message. Dr. Anderson noted that included in her proposal is the recommendation to re-brand our efforts with the goal of eliminating the confusion between the Transfer Academy and the College and Career Start programs. She suggested that we use the College and Career Start labels to provide consistency. Dr. Anderson further proposed that the college allow dual credit students to enroll in any course they choose. Dr. Corcoran noted that we will build these assumptions into our tuition rates proposal to be presented at the February Board meeting.

2019 TAX LEVY

Ms. Roelfsema reported that the District’s EAV (equalized assessed valuation) for tax year 2018 was $3,270,669,451, up 2.3 percent from 2017. The actual tax levy for 2018 was $11,951,043 though the levy request was $12,236,800, 2.3 percent less than was calculated based on actual EAV. Ms. Roelfsema advised since the college’s tax rates for education and operations and maintenance are at the limit and have been for many years, she suggested a levy of $12,506,300 for 2019. This is less than a five percent increase and a public hearing would not be necessary. It was moved by Dr. Boyles and seconded by Mr. McCracken to recommend the 2019 Tax Levy to the full Board, as presented. Motion passed by voice vote.

FY2021 TUITION RATES

Dr. Corcoran noted that the administration recommends holding the tuition rate at $125.60 per credit hour for FY2021. He added that the universal fee would also remain at $7.40 for a combined tuition and universal fee of $133 per credit hour. It was moved by Dr. Rebholz and seconded by Dr. Boyles to recommend to the full Board the FY2021 Tuition Rates, as presented. Motion passed by voice vote. The Board is scheduled to vote on the FY2021 tuition rates at the February Board meeting.

REQUEST FOR PROPOSAL RESULTS – BANKING SERVICES

Ms. Roelfsema advised that Board Policy 4.13 requires the college perform a Request for Proposals (RFP) for banking services for the main operating account every four years. Ms. Roelfsema noted that the RFP results will be reviewed by a committee before making a recommendation to the Audit Finance Committee and the Board of Trustees.

MINIMUM WAGE INCREASE

Ms. Roelfsema informed that per statute Illinois minimum wage will incrementally increase to $15 per hour by 2023 and the first increment must begin by January 1, 2020 to $9.25 per hour from the current minimum wage of $8.25. Ms. Roelfsema noted that for the first increment only student workers at IVCC will be affected as all other employees are paid more than $10 per hour. She added that the college has 68 student workers that work approximately 20 hours per week. Ms. Roelfsema advised that the minimum wage increase will raise payroll costs approximately $1,350 per week. She added that in the summer months there are fewer student workers.

OTHER

None

ADJOURNMENT

Mr. Solon commended Ms. Roelfsema and her staff for the outstanding work that was presented. Congratulations were expressed by the Committee members to the entire IVCC team for a job well done.  

 

Mr. Solon declared the meeting adjourned at 6:00 p.m.