December 6, 2018 Audit Finance Committee Meeting

Committee Members Physically Present

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

Committee Members Absent

Board Members Physically Present

Jane E. Goetz, Board Chair

Others Physically Present

Jerry Corcoran, President
Cheryl Roelfsema, Vice President for Business Services and Finance
Deborah Anderson, Vice President for Academic Affairs
Mark Grzybowski, Vice President for Student Services
Bonnie Campbell, Associate Vice President for Academic Affairs
Chris Dunlap, Director of Information Technology Services
Kathy Ross, Controller
Tracy Lee, Instructor
Jim Moskalewicz, Counselor

The meeting was called to order at 5:35 p.m. by Mr. Solon.

FY2018 AUDIT

The comprehensive annual financial report for fiscal year ending June 30, 2018 was reviewed by auditors Ms. Sara McKenna and Mr. Matthew Schueler of Wipfli, LLP in Sterling. The opinion of the auditors is that IVCC earned an unmodified report meaning that the audit is “clean” with no weaknesses or deficiencies. The auditors confirmed that IVCC is debt-free, a statement that few community colleges can make. Dr. Corcoran noted that our Board and staff are to be commended for reducing operating expenses $469,000, especially by reducing our utility costs much of which can be attributed to the replacement of chiller and air handler units in three buildings. Dr. Corcoran added that through prudent fiscal management, revenues have exceeded expenses. Ms. Roelfsema noted that with the college on sound financial footing, only a slight tuition increase is expected for the 2019-2020 academic year beginning this summer. Ms. Roelfsema added that we will be recommending a low tuition increase next year to ensure our tradition of affordability without compromising quality. Ms. Roelfsema noted that with retiree costs shifting from the state to local districts for the first time community colleges are required to show their College Insurance Plan (CIP) liability on their financial statements. She explained that CIP is the state insurance plan for retirees. Dr. Corcoran added that the college’s liability is nearly $12 million but comparatively speaking, we are well-prepared to handle that amount. The Committee commended Dr. Corcoran, Ms. Roelfsema, Ms. Ross and the entire Business Office staff for the outstanding annual financial report and the message that the college is debt-free. Congratulations were expressed by the Committee members to the entire IVCC team for a job well done.  

Ms. McKenna and Mr. Schueler left the meeting at 6:05 p.m.

IT SECURITY AUDIT

The Committee reviewed the IT Security audit prepared by Rehmann Robson early last summer that included a vulnerability assessment and penetration testing on the college’s external connections, hosts and network devices, as well as an internal assessment. Rehmann recommended replacement of network servers and workstations that contained dated software. Mr. Dunlap noted that such a finding is not unusual in an environment such as ours. Mr. Dunlap added that IT has already addressed several of the issues identified in the audit and will continue to do so until all identified risks have been mitigated. He noted that several of the servers have already been replaced, upgraded or retired from service. Mr. Dunlap informed that the effort to secure IVCC’s data and computing resources is never ending, and we plan to include external penetration testing in the budget each year and internal testing every three years to continue to protect our computing environment.

DUAL CREDIT

Recommendations for Approval of Tuition Waiver Agreements in Agriculture and Automotive

Ms. Campbell proposed granting tuition waivers to district high school students enrolled in dual credit automotive and agriculture courses beginning next fall semester. Ms. Campbell informed that to qualify for a waiver, students must enroll in the agriculture or automotive technology Associate in Applied Science degree programs within one year of high school graduation.  She added that IVCC is partnering with Starved Rock Associates for Vocational and Technical Education (SRAVTE) on the initiative. There was consensus among the Committee to recommend presenting the proposed tuition waivers to the whole Board. Ms. Campbell noted, therefore, that the tuition waiver agreements would be presented at the January Board meeting for Board consideration.

2017-2018 Annual Report for Dual Credit Courses

Ms. Campbell noted that headcount was 1,004 down slightly from 2016-2017, which was at 1,056. She added, however, that credit hours were at 6,090, up from 6,070 in 2016-2017. A total of 122 students received tuition waivers in 2018 compared to 112 in 2017.

OTHER

Dr. Corcoran advised that following our custom and practice the tuition, course fee and universal fee adjustments will be presented to the Audit Finance Committee in January prior to the February Board meeting. Dr. Corcoran noted that we will also be moving forward to take necessary steps regarding new positions for the FY2020 budget. He informed that we are advancing with the Certified Medical Assistant (CMA) program and we are partnering with another college in that program development. Dr. Corcoran added that there has been an uptick in enrollments in the Agriculture program.  He noted that we will be looking for approval of staffing for CMA and Agriculture and advised that we will need to get these positions posted early so that we are ready to go forward for the fall 2019 semester. The Committee members were in agreement with this plan. Dr. Corcoran reported that we are continuing our efforts to fill the positions for the current fiscal year that include Automotive, Nursing, Cybersecurity, and Industrial Maintenance and Electricity (IME). The faculty appointment for Emergency Medical Services (EMS) will be presented at the December Board meeting.

Quick Facts as of Fall 10^th Day September 2018 were distributed.

ADJOURNMENT

Mr. Solon declared the meeting adjourned at 6:30 p.m.