July 13, 2023 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 13, 2023 in the Board Room (C307) at Illinois Valley Community College.
Committee Members Physically Present
Jay K. McCracken, Committee Chair
Amy L. Boyles
Committee Members Virtually Present
Committee Members Absent
Maureen O. Rebholz
Board Members Physically Present
Others Physically Present
Tracy Morris, President
Gary Roberts, Vice President for Academic Affairs
Mary Beth Herron, Director of Human Resources
Kathy Ross, Controller
Others Virtually Present
The meeting was called to order at 4:30 p.m. by Mr. McCracken.
The tentative FY2024 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 17, 2023. Ms. Ross thanked the many employees that are involved in the budget process. Budget Council directs the process and included a cross-section of the college including Dr. Corcoran, Dr. Morris, Dr. Matt Seaton, Dr. Gary Roberts, Mark Grzybowski, Jennifer Scheri, Justin Denton, Dr. Shane Lange, Tracy Lee, Lauri Carey, and Kathy Ross. A special thank you to Nikki VanNielen for all her hard work in putting this book together.
Highlights of the tentative budget were shared and included:
- As a part of the Board Initiatives, the FY24 budget includes the establishment of a stand-alone marketing department with a dedicated director to lead the efforts and coordinate with internal and external entities.
- Budget Assumptions include property tax revenue at a 7.3% increase; State funding (unrestricted) at a 5.0% increase; tuition and fees at a 6.3% increase; credit hours at a 6.2% increase; wage increase at a 5.0% increase; health insurance at a 3.0% increase as of 1/1/2024; and reduction in headcount has an overall reduction of 5.
- Personnel Changes in the areas of grant additions, reorganization, reductions, and additions.
- Continued additional grant opportunities that include the ECACE grant $219,684, PATH grant $468,974, ATOMAT grant $270,000, and Innovative Bridge grant $108,650. Colleague Saas migration showing a FY24 budget increase of $753K in operating expenses to continue migration, equipment refresh, and increase software costs.
- Total budgeted revenues for all funds increased by $1,552,994 or 4.1% from the FY23 budget.
- Total budgeted expenditures for all funds decreased by $424,070 or 10.9% form FY23.
- Budgeted Capital Expenditures includes the Agricultural Ed. Center, PHS projects, Operating Funds, and Grants.
- This budget does not include the recent approved change to SURS CIP effective 7/1/2023 which will be discussed in the next agenda item. This is an approximate increase of $16,000 across all funds. Future budgets will include the proposed changes and it is anticipated the contributions will change every year.
CIP CHANGES AND COMMUNICATIONS
Ms. Ross explained the College Insurance Program Contributions for FY24 have gone up from 0.5% to 0.75%. Moving forward they cannot increase by more than 0.1% from the previous year. They will increase yearly and we will budget appropriately.
Ms. Ross reported all HEERF funding has been expended as of the end of FY23. Total HEERF funds received were $10,255,948.00. Funds directly to students totaled $4,222,426.00 and institutional funds totaled $6,033.512.00 of which $1,051,033.32 were used for student tuition waivers.
In the past, IVCC was a member of the American Association of Community Colleges (AACC) but several years ago it was cut when there was a budget impasse and budgets were tight. Dr. Morris would like to reconsider joining the association. Dues would cost $4,863.00 plus a President’s Academy fee of $75. As a structural decision, Dr. Morris would like to make sure this committee approves her bringing back something that was previously cut. The consensus of the committee was to rejoin the American Association of Community Colleges.
Dr. Boyles questioned an email from Sikich and wanted to make sure it was a legitimate email. Ms. Ross stated those are our auditors and they are required to send the Board an email every year with a questionnaire asking if they are aware of any fraudulent activity or concerns.
Mr. McCracken declared the meeting adjourned at 5:19 p.m.