October 16, 2017 Minutes of Audit/Finance Committee Meeting

Committee Members Physically Present

Everett J. Solon, Chair
David O. Mallery
Jay K. McCracken

Other Board members Physically Present

Others Physically Present

Jerry Corcoran, President
Cheryl Roelfsema, Vice President for Business Services and Finance
Deborah Anderson, Vice President for Academic Affairs
Mark Grzybowski, Associate Vice President for Student Services
Bonnie Campbell, Associate Vice President for Academic Affairs
Kathy Ross, Controller                 

The meeting was called to order at 6:30 p.m. by Mr. Solon.

FY2017 AUDIT

The comprehensive annual financial report for fiscal year ending June 30, 2017, was reviewed by Ms. Sara McKenna and Mr. Dick Wells of Wipfli, LLP of Sterling.  The auditors’ opinion is “unmodified” meaning the audit is “clean.” The College’s financial data continues to be strong despite the poor financial condition of the State of Illinois and the lack of State funding for Illinois community colleges.   The combined balance sheet noted total assets of $18,201,480 in the General Fund.  There were no audit adjustments.  IVCC’s accounting office implemented a monthly review of collateral pledged by the banks; however, one bank’s market value fell short by $23,557.  The auditors provided recommendations for access controls and infrastructure for the Information Technology department.  Their recommendations have been discussed by administration and plans were in progress to address them.

Ms. McKenna and Mr. Wells left the meeting at 7:03 p.m.

2017 TAX LEVY

It is the College’s custom and practice to adopt a tentative tax levy in November and finalize it in December.  A proposed tax levy was presented to the committee.  In order to capture all of the revenue available in property taxes, the administration is recommending an $11,891,375 tax levy for 2017.  This is less than a five percent increase and a public hearing would not be necessary.  The 2016 tax rate was 36.64 and the suggested 2017 tax rate is 36.43.  ICCB decreased IVCC’s additional tax rate from 12.97 to 12.62.  The additional tax rate is based on the average state tax operating rate which is 29.62.  IVCC’s levy is 17 cents with the difference being 12.62.  Last year the allowed rate was 12.97, but the College only levied 12.92.  For tax year 2017, it is likely there will be a slight increase in EAV.  The value of Exelon’s LaSalle Generating Station will remain at $430 million.  Marquis Energy’s Hennepin plant will add approximately $18 million in EAV and preliminary numbers from LaSalle County show a two percent increase in EAV.  The proposed tentative tax levy will be presented at the November board meeting.

DUAL CREDIT PILOT INITIATIVES

A summary of the two Dual Credit pilot initiatives was presented.  During the 2016-2017 school year, 123 students qualified for Free and Reduced Lunch benefits.  Data shows that 45 percent, or 56, of the students are either enrolled at IVCC for the Fall 17 semester or are still in high school enrolled in IVCC dual credit/enrollment coursework.  For the 30 Credit Hours for Reduced Tuition initiative, three students earned at least 30 college credits in high school and were eligible for reduced tuition for the 2017-2018 academic year.  One of the three students opted to enroll and is currently at IVCC enrolled in 14 credit hours. Dr. Corcoran distributed a report of the tuition waivers given to each high school for the 2016-2017 academic year.  The total cost to the College for tuition waivers for 123 students was $59,553.45.   Mr. Solon would like to see how many of these students attend IVCC and continue on to receive a bachelor’s degree.  Mr. McCracken thanked the administration for the work they have done to offer students a chance for a college education.  This is a huge help to the district and to the students to attend college. 

ADJOURNMENT

Mr. Solon declared the meeting adjourned at 7:21 p.m.