June 26, 2024 Audit Finance Committee Meeting
The Audit Finance Committee of the Board of Trustees of Illinois Valley Community College District No. 513 met at 4:00 p.m. on Wednesday, June 26, 2024 in the Board Room (C307) at Illinois Valley Community College.
Committee Members Physically Present
Jay K. McCracken, Committee Chair
Amy L. Boyles
Maureen O. Rebholz
Committee Members Virtually Present
Committee Members Absent
Board Members Physically Present
Board Members Virtually Present
Others Physically Present
Tracy Morris, President
Kathy Ross, Vice President for Business Services and Finance
Mary Beth Herron, Director of Human Resources
Eric Johnson, Controller
Others Virtually Present
Mr. McCracken called the meeting to order at 4:00 p.m.
PUBLIC COMMENT
None
TENTATIVE BUDGET
Ms. Ross presented a draft of the Budget in Brief. Ms. Ross acknowledged and thanked the members of Budget Council and their hard work to prioritize requests and develop the best budget for the institution. The cross-section members were Dr. Morris, Mark Grzybowski, Mike Phillips, Tracy Lee, Jennifer Scheri, Ron Groleau, Eric Johnson, Nikki Van Nielen, Justin Denton, and Kathy Ross.
Highlights of the tentative budget were shared and included:
- The Organizational Overview information was divided into smaller sections to breakdown the operational divisions of the institution, which allows employees to see where they fit into the budget.
- In FY2024, the strategic planning process included the development of a new mission, vision, and core values. The three pillars of the vision – growing programs, updating facilities, and educational innovation were used to prioritize capital purchases, facility and IT enhancements, and position requests/reorganizations. The President’s College initiatives received from the Board of Trustees also drive the budget process.
- Budget assumptions include property tax revenue at a 3.8% increase; CPPRT at a 6% decrease; State funding (unrestricted) at a 6.7% increase; tuition and fees at a 5.0% increase; credit hours at a 0.4% increase; wage increases at a 6.1% increase; health insurance at a 2.5% increase as of January 1, 2025; and an overall increase in headcount of 21, with the majority (13) in the part-time faculty headcount due to the Dental Hygiene program and expanded dual credit offerings.
- Personnel changes included grant additions, grant support additions, reorganization, reductions, and additions based on need.
- Significant items highlighted include the continued additional grant opportunities in the Non-Credit Workforce grant ($100,000), PATH grant ($250,000), and ATOMAT grant ($226,472); Contractual services increased by 34.8% due to the Colleague Saas migration and materials and supplies increased by 20.1% due to inflation. FY2025 budget includes a transfer from Working Cash Investment Income of $445,860 to the Education Fund to cover one-time migration costs and capital requests; and the Agriculture Education Center includes the DCEO project for the site work and parking lot, the EDA project and Bond transfer proceeds for the new building.
- Total budgeted revenues for all funds increased by $2,145,853, or 6.2% from the FY2024 budget.
- Total budgeted expenditures for all funds currently shows an increased by $4,733,592, or 12.3% from FY2024. Ms. Ross was asked if the expenditures included projects that were prioritized by the Facilities Committee. Ms. Ross stated no and it would be part of the Fund Balance Discussion.
- Budgeted capital expenditures include the Agricultural Education Center, Ag Site Work/Parking Lot, PHS projects, and expenditures from the Operating Funds.
- Budgeted operating revenues include an increase of $2,525,906; or 9.8% from FY2024.
- Budgeted operating expenditures currently include an increase of $2,412,763; or 9.4% from FY2024.
FUND BALANCE DISCUSSION
Ms. Ross shared the Master Plan priorities identified by the Facilities Committee at their meeting earlier this month that included a conceptual cost analysis. Those priorities include:
- New Microbiology Lab/Practicals Lab/Tutoring - $2,500,000
- Relocate/Expand Assessment Center - $1,500,000
- Relocate IT Offices - $1,500,000
- Renovate (7) Classrooms for the Distance Learning Grant - $1,750,000
These priorities and possible funding plans for FY2025 through FY2027 and beyond were reviewed and discussed. A fund balance analysis was included with three possible options for utilizing fund balance help to pay for these priorities. Any use of fund balance would be approved by the full Board. Consensus of the Audit Finance Committee was to target bringing the Fund Balance Reserve to 35 percent of Budgeted Expenditures. With the current estimated liquid assets this would allow the College to use approximately $7,293,946 on Master Plan initiatives.
GRANT UPDATES
Ms. Ross distributed the Grant Updates as of May 2024. Highlights included:
- Grant project updates included the IGEN Project-Solar Bench, IGEN Project-EV Charging Stations, Ag Building Complex, and Distance Learning Grant.
- FY24 grant updates included shows the grants and funds received in FY2024, the status of the grant, anticipated funding for FY2025 funding, and future. Updates on grants that are ending was provided. Two additional grants were applied for with notification that the Rev Up EV (Electrical Vehicle) Grant Round 2 was received, although the allocation amount has not been released. Awaiting award notification for the application submitted for the Apprenticeships Building America Grant Round 2.
OTHER
None
ADJOURNMENT
Mr. McCracken declared the meeting adjourned at 5:40 p.m.