Taking The Mystery Out of Community College Finances Presented by Keith Houck, Valencia College and Richard Becker, Polk State College AFC Trustees Commission Conference, September 24, 2014

1. TTaakkiinngg tthhee MMyysstteerryy
OOuutt ooff CCoommmmuunniittyy
CCoolllleeggee FFiinnaanncceess
Richard Becker,
Palm Beach State College
Keith Houck,
Valencia College

7. WWhhaatt ddoo
BBuussiinneessss OOffffiicceerrss
tthhiinnkk aarree tthhee iissssuueess??

8. MMoosstt IImmppoorrttaanntt IIssssuueess
CCoonnffrroonnttiinngg CCoolllleeggeess
• Provide both affordability and quality
• Reductions in state funding (both for
operations and capital)
• State imposed limits on tuition and fees
• Potential cuts in federal student aid
• Becoming even more efficient and effective

9. VVaarriioouuss SSttrraatteeggiieess
• Increasing enrollment
• Increasing the use of part-time faculty
• Cutting underperforming programs
• Outsourcing non-academic services
• Public/Private Partnerships

10. IItt’’ss nnoonnee ooff yyoouurr bbuussiinneessss,,
oorr iiss iitt??
• Do you understand the business operations of your
College?
• Do you receive a financial report each meeting?
• Are key items and trends brought to your attention?
• Is your CFO’s phone number on your speed dial?
You want to learn more about the business
operations but don’t even know the questions to
ask….

11. QQuueessttiioonnss ffoorr tthhee CCFFOO
• What are the various funds of the College and for
what each is used?
• What are the revenue sources for each fund?
• What are the different functions of the college and
how do we relate to other comparable institutions
in functional expenditures?
• What is a fund balance? How much do we have in
fund balance? What is it’s purpose? Is this an
adequate amount?
• How much of our budget is spent on salaries &
benefits?

12. BBiigg BBrrootthheerr aanndd tthhee
BBuussiinneessss OOffffiiccee
• SACS Accreditation…..10 year audit of overall College, focused on
academic programs and accountability
• State Auditors
• Annual Financial Audit
• Bi-Annual Operation & Compliance Audit
• Annual Federal Funds Audit
• Annual Bright Futures Audit
• Periodic Special Purpose Audits assigned by the Legislature
• Independent Financial Audit by CPA Firm of DSO (Foundations)

13. FFuunnddiinngg CChhaannggeess

14. When the annual increase in
your ticket price is growing
faster than the cost of living,
you have a problem.

15. 15

16. FFuunnddiinngg ffoorr FFiissccaall YYeeaarr 22001122--1133
General
Revenue
& Lottery
47% 53%
Valencia’s
Operating
Funds
Other
Loans 13%
Student 87%
Scholarships 10%
Bright Futures 17%
Pell 73%
41%
4%
55%
16

17. CCoonnddiittiioonnss ffoorr LLeeaarrnniinngg
Student Success
Learning Outcomes

18. RReessoouurrccee AAllllooccaattiioonn MMooddeell
Developed by
VPBS Council
8/9/1010 As
18
an
alt
er

19. CCoonnddiittiioonnss ooff LLeeaarrnniinngg
Student Success
Learning Outcomes

20. TTeexxtt BBooookk CCoossttss
What are you doing to
reduce the cost of textbooks
and other instructional
materials for your students?