October 1, 2010 Audit/Finance Committee Meeting
The Audit/Finance Committee of the Board of Trustees of Illinois Valley Community College District No. 513 met at 5 p.m. on Friday, October 1, 2010 in the Board Room (C307) at Illinois Valley Community College.
Committee Members Physically Present:
Thomas C. Setchell, Chair
Michael C. Driscoll
Committee Members Telephonically Present:
Melissa M. Olivero
Other Board Members Physically Present:
David O. Mallery
Dennis N. Thompson
Others Physically Present:
Jerry Corcoran, President
Cheryl Roelfsema, Vice President for Business Services and Finance
Rick Pearce, Vice President for Learning and Student Development
Patrick Berry, Controller
Reed Wilson, Special Project Assistant to the President
The meeting was called to order at 5 p.m. by Mr. Setchell.
A preliminary draft of the comprehensive annual financial report for the fiscal year ending June 30, 2010, had been distributed to the committee members. Mr. David Spiller, of Gordon, Stockman & Waugh, P.C., the Board’s auditor, reviewed portions of the report and identified no weaknesses and no instances of noncompliance in the audit. Mr. Spiller indicated there would be no management letter and no recommendations for improvement. The annual financial report will be placed on the October board agenda as an information item. Mr. Spiller distributed information related to the financial statement audit required by Statement on Auditing Standards No. 114 to the Audit/Finance Committee. Mr. Spiller acknowledged the assistance and cooperation from all the departments at IVCC.
Mr. Spiller left the meeting at 5:08 p.m.
FY2012 TUITION AND FEE INCREASE; FUNDING FOR ATHLETICS
The administration received a letter from the Illinois Community College Board (ICCB) advising them that in order to continue to qualify for equalization funding, the College would need to increase the combined tuition and universal fee rate for FY2012 by $7.77 per credit hour. In FY2010, Illinois Valley had the lowest combined tuition rate in the State. The administration recommended $2 of the increase be directed to Fund 05 in support of athletics. For the past three years the transfer to cover athletic expenditures came from within Fund 05 from bookstore funds. The FY2010 transfer was $185,000, which included post-season tournament competition. Assuming the current enrollment at approximately 90,000 credit hours continues, the $2 per credit hour fee would generate $180,000 annually to fund athletics. All agreed that the increase in tuition is necessary to qualify for equalization funding which amounts to approximately $2.5 million. Mr. Mallery was not in favor of every student paying an additional $2 per credit hour and have that directed to athletics for 90 students to play sports. Mr. Mallery questioned if the College was limited in the amount of scholarships or waivers that could be given to students. His thought was to raise tuition, but give waivers to everyone. Ms. Olivero stated that if the increase was directed into Fund 1, the Board could still continue to approve a transfer. She also suggested looking into using some of the funds to support the daycare center.
Mr. Thompson entered the meeting at 5:18 p.m.
Mr. Setchell suggested discussing the matter of how the increase should be split with the whole Board. It was moved by Ms. Olivero and seconded by Mr. Thompson to recommend to the whole Board to raise the combined tuition and universal fee to qualify for the equalization funding and continue directing the funds the way the College has been doing it until there is consensus. Motion passed by voice vote.
2010 TAX LEVY
Cheryl Roelfsema, Vice President for Business Services and Finance, compared the Equalized Assessed Valuation (EAV) in tax year 2009 to tax year 2008. It is unlikely that the EAV of any property other than farm land will increase for tax year 2010. The administration proposed to ask for more than a five percent increase in the levy extension, which would necessitate a Truth in Taxation Act hearing, but would capture any growth in construction and property values. The total proposed tax rate is $34.95 compared to last year’s tax rate of $34.65. Last year the College did not levy for Audit and Social Security because there were fund balances in both. Last year’s levy increased by a few pennies compared to the year before. But before that, the College had seven years of declining rates. Mr. Mallery asked to increase the tax rate by 4.99 percent and avoid the Truth and Taxation Hearing and avoid placing an ad in the paper. Mr. Thompson preferred to have the Hearing and capture all the money if there is an increase in the EAV. Increases in EAV keep the rate lower. The Exelon plant’s increase rate balanced out what property value went down. Mr. Thompson would like to see the tax rate remain level.
Dr. Corcoran received a letter from the North Central Illinois Council of Governments (NCICG) requesting support for the regional Economic Development District (EDD) with a contribution of $2,000. The U.S. Department of Commerce offered a grant to fund the EDD in late 2005 and each year the region must raise enough funds to match the grant dollar for dollar. The grant for FY2011 is approximately $57,000. Dr. Corcoran noted the great response IVCC has received from NCICG for their work - $100,000 for the re-commissioning of the College’s air system, over $15 million for the broadband initiative, and currently working on a grant to help fund the
technology equipment for the new building. Dr. Corcoran would like to show his support. Mr. Setchell noted that this organization shows results and that is what the College wants.
Dr. Corcoran presented a proposal for professional services from the Northern Illinois University Regional Development Institute. This group will work jointly with the staff of the LaSalle County Broadband Initiative to evaluate various approaches for broadband infrastructure that can link IVCC to high-speed Internet resources in the area. Dr. Corcoran recommended connecting to the four high schools that are 100 percent in the district and not in LaSalle County – Putnam County, Princeton, DePue, and LaMoille. The cost for the scope of work in this proposal is a flat rate of $6,000 for the feasibility study and the procurement process and then IVCC would pursue grant funding for the project. Dr. Driscoll noted there was great value in reaching out to the western side of the district. Mr. Thompson also thought it was a good idea as the schools in the western part of the district tend to send a good percentage of their students to IVCC.
It was moved by Dr. Driscoll and seconded by Ms. Olivero to convene a closed session to discuss collective negotiating matters between the public body and its employees or their representatives. Motion passed by voice vote.
The Board recessed at 5:48 p.m. The Board entered closed session at 5:51 p.m. On a motion by Dr. Driscoll and seconded by Mr. Setchell, the regular meeting resumed at 6:22 p.m. Motion passed by voice vote.
The motion to adjourn was made by Dr. Driscoll and seconded by Ms. Olivero. The meeting adjourned at 6:23 p.m.