May 23, 2017 Audit/Finance Committee Meeting
Audit/Finance Committee of the Board of Trustees of Illinois Valley Community College
District No. 513 met at 5:30 p.m. on Tuesday, May 23, 2017 in the Board Room
(C307) at Illinois Valley Community College.
Everett J. Solon, Chair
David O. Mallery
Jay K. McCracken
Board Members Physically
Matthew F. Pehoski, Student Trustee
Others Physically Present:
Cheryl Roelfsema, Vice President for
Business Services and Finance
Deborah Anderson, Vice President for Academic
Mark Grzybowski, Associate Vice President
for Student Services
Kathy Ross, Controller
The meeting was called to order at 5:30 p.m. by Mr. Solon.
The Committee was presented with
a draft of the FY2018 Operating Funds budget.
The budget numbers were still in draft stage but not likely to change
before the tentative budget is presented to the Board of Trustees at the July
13, 2017 meeting. Cheryl Roelfsema
reported on the revenues: 1) An increase
in equalization tax levy resulted in a $204,400 increase in tax revenues for
the Education Fund. 2) Budgeted credit
hours were reduced to 57,000 with a 4.8 percent increase in the tuition rate
which results in a decrease in tuition revenue of $126,800. 3) State funding is based on 50 percent of
the FY2015 appropriation (FY2015 funding level - $2.7 million; 50 percent -
approximately $1.3 million.) All
purchases are closely scrutinized and only essential personnel positions will
be filled at this time. Cheryl then
reported on the expenditures: 1) Salaries
and benefits are the majority of the budget.
Salary increases range from 2.0 to 3.1 percent. There are no new personnel positions budgeted
except for four positions that are essential to the operation of the College:
Director of Information Technology Services, Dean of Workforce Development,
Business Training Specialist, and Criminal Justice Instructor. 2) Benefits are budgeted to increase by eight
percent. IVCC will receive the renewal
rate in July. The College has a
commitment of three years to the health insurance consortium that it joined in
January 2017. The operating budget is
balanced by using Information Technology Services (ITS) reserves from the
Auxiliary Fund in the amount of $87,000 to cover ITS capital purchases. The FY2018 operating expenditures are 3.7
percent lower than the FY2017 budget.
Over the past five years, 33 full-time positions have not been filled
due to resignations or retirements. The
personnel reductions over this time period amount to approximately $1.5 million
annually. Six positions have been
reduced from full- to part-time. Only
one new faculty position has been added, Dental Assisting and the Ag instructor
position is offset by the retirement of Doug Stockley, former ag and computer
instructor. Mr. Mallery noted on page 27
of the tentative budget that IVCC was the third highest compared to peer and
similar Illinois community colleges of tax dollars per FTE and the 3rd
highest of tax and state grants per FTE.
He asked what the other schools are doing right or what can IVCC do
better. Mr. McCracken was appreciative
of what the administration has done with the budget.
Cheryl Roelfsema reported on
projections for FY2017 year end for the Operating Funds. The projected deficit is $305,849, assuming
there is no further funding from the State either for operating grants and MAP
funding. Revenues are $1,422,122 below
budgeted revenues (a large amount due to state funding) and expenditures are
$1,403,007 below budgeted expenditures.
The projected operating fund balance for June 30, 2017 is $6,207,000, or
29 percent of the FY2018 expenditures.
The minimum requirement per board policy is 25 percent. At this time, the cash projection for the
remainder of FY2017 is positive and no borrowing from the working cash fund
will be necessary. If the College did
borrow from the working cash fund it is required to pay it back in one
year. If it is not paid back in one
year, the College would have to abolish the working cash fund and start over. Mr. McCracken congratulated the
administration for a job well done.
TECHNOLOGY SERVICES STRATEGIC PLAN FY2017 – F72020
The difference in this plan from
previous plans is that it is not just built around projects that cost
money. It includes initiatives that take
manpower but little to no funding. Information
Technology enhances student learning and helps capture information that is
needed. The College budgets for it
annually and makes changes when necessary so that IVCC is in the front seat
when it comes to Information Technology.
The Information Technology Services Strategic Plan was presented because
of the impact it has on the overall budget.
Community colleges are not allowed to levy for technology as K-12
schools. Mr. Mallery asked what kind of
strategies the administration will take when the Auxiliary fund for Information
Technology projects is drained. It was
noted that virtual technology extends the life of computers for six to seven
years and saves on manpower. The
administration is looking for ways to make everyone more efficient and making
the processes as smooth and efficient as they can.
MIDWEST ENERGY INC.
PROPOSAL OF ELECTRICITY PURCHASE
Gary Gauger of Midwest Energy,
Inc. identified areas of potential savings for IVCC on the purchase of
electricity. If IVCC were to enter into
a contract with MidAmerican or Constellation Energy, the services available would
be Day-Ahead Locational Marginal Price (LMP) rates for electricity and capacity
coincident peak notification and transmission coincident peak
notification. Gary would help the
College determine the timing of the annual measurement by the utility company
and identify changes IVCC can make to reduce its load during the measurement
Mr. Mallery left the meeting at 6:25 p.m.
2016-2017 ANNUAL DUAL
This report is for the Board’s
information as the College is wrapping up its first year of implementing a
pilot program to boost dual credit enrollments specifically for students
eligible for free and reduced lunches by offering tuition waivers. This is a three-year pilot program and the
feedback from the high schools has been very favorable. Eligibility for equalization is a factor that
has been discussed and maintaining credit hours is a challenge. Students who fall into the free and reduced
lunch category are less likely to take dual credit courses and this pilot
program may help them build confidence in attaining a degree later in
time. Dual credit hours are
approximately 10 percent of the College’s total credit hours. The College did leave some tuition dollars on
the table by offering waivers to this population of students. The administration is looking at the IVCC
Foundation by offsetting the dollars lost and making up the difference through
donors. Mr. McCracken believes dual
credit is very important and suggested working with the Foundations of the
individual high school districts in partnership with the IVCC Foundation. The 30-credit hour discount pilot program
will not see results until Fall 2017.
Amy Sipovic noted the pilot program may cost money upfront, but down the
road it is a good investment. Mr.
McCracken also would like to see the College/Running Start program promoted
with other high schools in the district to increase their interest in attending
Mr. Solon declared the meeting adjourned at 6:30 p.m.