July 14, 2022 Audit Finance Committee Meeting
The Audit/Finance Committee of the Board of Trustees of Illinois Valley Community College District No. 513 met at 4:30 p.m. on Thursday, July 14, 2022 in the Board Room (C307) at Illinois Valley Community College.
Committee Members Physically Present
Jay K. McCracken, Committee Chair
Amy L. Boyles
Maureen O. Rebholz
Committee Members Virtually Present
Committee Members Absent
Board Members Physically Present
Angela M. Stevenson, Board Secretary
Others Physically Present
Jerry Corcoran, President
Matthew Seaton, Vice President for Business Services and Finance
Gary Roberts, Vice President for Academic Affairs
Mark Grzybowski, Vice President for Student Services
Bonnie Campbell, Associate Vice President for Academic Affairs
Leslie Hofer, Director of Human Resources
Kathy Ross, Controller
Others Virtually Present
The meeting was called to order at 4:30 p.m. by Mr. McCracken.
RISK MANAGEMENT PLAN
Dr. Seaton informed that two additions to our Risk Management Plan are recommended as best practice by Bushue Human Resources and are recommended by Attorney Walt Zukowski and our auditors from Sikich. Our proposed updated Risk Management Plan will have: 1) a time study component and 2) an annual committee to be formed to review and approve all eligible Tort expenses. Dr. Seaton added that to expend Tort funds the college must have a plan on file for how those funds are to be used. In our previous version, there was not a mechanism for completing time studies to find more areas in which Tort funds could be utilized. He noted that our auditor and attorney have both reviewed the policy and approved it.
It was moved by Dr. Rebholz and seconded by Dr. Boyles to recommend that the updated Risk Management Plan be presented to the full Board. Roll Call Vote: “Ayes” – Dr. Rebholz, Dr. Boyles, and Mr. McCracken. “Nay” – none. Motion carried.
The tentative FY2023 budget was presented to the Audit Finance Committee and represents the college’s financial plan for operations during the fiscal year. The resolution for acceptance of the final budget will be submitted for Board approval on August 18, 2022. Dr. Seaton noted that the FY2023 budgeted revenue for all funds is $37,500,174, an eight percent increase from the FY2022 budget mainly due to the Higher Education Emergency Relief Funds (HEERF) federal monies of $4,152,631. FY2023 budgeted expenditures for all funds are $39,061,767, a thirteen percent increase from the FY2022 budget, again mainly due to the HEERF expenses. The difference of a -$1,561,593 is the result of using fund balance reserves for PHS Project expenses for ongoing projects. The operating budget is balanced with revenue and expenditures at $24,223,853. This represents an increase of eleven percent over last year’s budget. Ms. Ross highlighted some areas of the FY2023 Budget and directed attention to page 37 focusing on financing uses and sources in which money would be pulled away from the education fund for the first time to cover athletics. She noted page 42 of the budget that indicated the impact that HEERF funding along with other federal dollars are having on areas of the budget. Ms. Ross pointed out page 59 that showed the operating expenditures for FY2023 with a contingency of 2.8 percent compared to FY2022 with a contingency of 1.2 percent.
Highlights of the tentative budget were shared and included:
- Property Taxes are budgeted at 98% of levied amount.
- CPPRT is budgeted at a “normal” rate based on the College’s experience over the past three years. For FY2022, CPPRT revenues were abnormally high and we are not anticipating that continuing.
- Budgeted Credit Hours are set at 43,788 which is 7.6 percent less than last year’s budgeted Credit Hours of 47,400.
- The overall headcount for staff at the College is reduced by 8 going from 374 to 366.
- Athletics is paid for via a transfer from the Education Fund instead of being paid for from the Auxiliary Fund.
- The Education Fund has a $671,083 Contingency, an increase from FY2022’s contingency of $271,188. The O&M Fund has a $50,000 contingency, up from $25,600 in FY2022.
Dr. Seaton thanked Kathy Ross, Nikki Vannielen, the entire Business Office staff, and Dr. Corcoran for their contributions in the budget preparation process; he noted that it was a team effort. Mr. McCracken commented that it was an excellent job from both Dr. Seaton and Ms. Ross as well as the whole team and we are honored to have such great leadership and expertise from all levels.
CONSTRUCTION PROJECT FUNDING & UPDATES
Dr. Seaton updated on a number of construction projects that are ongoing that included:
- Dental Lab Renovation with expected completion date August 1, 2022. This project should be completed within a few days.
- Exterior Water and Air Sealing (CDB) with expected completion date of Summer 2023. This project involves providing regular maintenance that needed to be done.
- Parking Lots 1 & 5 (PHS) with completion date of August 1, 2022. Work on these lots are both completed and next summer we will look to work on Lots 7 and 8.
- D201 – CETLA/Band Room (PHS) with a completion date of January 1, 2023. The asbestos abatement is done and we are now getting prepared to install the elevator shaft.
- Mechanical Upgrades (PHS) with a pre-construction status and completion TBD. This project is for new boiler controls, HVAC control system and replacement of a series of piping.
BOOKSTORE TRANSITION PLAN
Due to staff turnover in the Bookstore, the Business Office, in cooperation with Lauren Catalina, Bookstore Manager, Dr. Seaton informed that we have been exploring options for subcontracting the textbook portion of the Bookstore operations. He added that it is common practice across other colleges to go in this direction and we are, in fact the anomaly at this point.
PROPOSED RETIREMENT PLANNING PROGRAM
Ms. Hofer informed of a proposed retirement planning program that is being considered for all employees to ensure consistency with the recently signed Faculty IFT 1810 Contract. She noted that participation would run through December 31, 2023 for a 1, 2, or a 3-year package which would provide a 5.9 increase each year until retirement or in lieu of the 5.9 increase the employee may select to have up to three years of post-retirement health benefits paid by the college at a rate equal to 80 percent of the then-current single plan rate. In addition to the premium contribution, the college would deposit a one-time HSA contribution of $2,500 into the member’s HSA in January following the member’s retirement.
Motion made by Dr. Boyles and seconded by Dr. Rebholz to adjourn the meeting. Motion carried by voice vote. Mr. McCracken declared the meeting adjourned at 4:55 p.m.