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Board of Trustees news: Audit reveals sound financial performance in FY 15

by Public Relations and Marketing | Published Sep 23, 2015

 

Completing a process underway since June, auditors have given the College of Lake County’s Fiscal Year 2015 financial statements an unmodified (“clean”) opinion. Representatives from McGladrey LLP, the college’s auditing firm, reported on the audit at the Sept. 22 Board of Trustees’ meeting. 

The audit included a review of basic financial statements, grants from the Illinois Community College Board, internal controls, credit hour reporting and the CLC Foundation as well as the clarity and transparency of financial records.

“Being financially accountable and transparent in our practices is a top priority for the Board of Trustees,” said Board Chairman Dr. William M. Griffin after the meeting. “We are very pleased to again receive a clean audit.”

In view of recent scrutiny over investment practices at another community college, CLC made the proactive decision to ask the auditors to review college investments, Griffin said. “The auditors randomly sampled our investments and found they were in full compliance with our investment policy. Having the auditors take this additional step is an example of the watchfulness we owe taxpayers,” he said.

The board approved the audit report and authorized the college to file it with the Illinois Community College Board and appropriate federal agencies.

 

Fiscal accountability report

David Agazzi, vice president for administrative affairs, provided a fiscal accountability report covering the fourth quarter of Fiscal Year 2015. Agazzi said that the college ended FY 15 with total operating fund revenues of $98.9 million. Through reduced expenditures, the college ended the fiscal year with a budget surplus of $8 million, which was applied to funding initiatives including the college’s Sustainable Campus Master Plan and other one-time projects. The surplus also allowed the college to add $350,000 to the fund balance, which is now $30.4 million, about 31 percent of annual expenditures.

According to Agazzi, financial oversight and a healthy fund balance have been important factors in keeping the college’s financing costs low for the $164 million Sustainable Campus Master Plan now under construction. Moody’s Investment Services has given the college an Aaa bond rating.

Board policies

The board approved a revised procurement policy that includes provisions reflecting the college’s commitment to maximizing opportunities for Lake County Disadvantaged Business Enterprises (DBE). The policy complies with new state guidelines on goals for contracting with minority,   female and veteran-owned businesses.

Proposal on videotaping meetings

In response to a request from the CLC Full-Time Faculty Union Political Action Committee (PAC), the trustees voted on a proposal to absorb the costs of videotaping monthly board meetings for posting online. (The cost is currently being covered by the PAC.) After reviewing the low viewership statistics on the videotapes, the board voted against funding the videotaping.

 

Purchasing

The board awarded two contracts as part of the Sustainable Campus Master Plan. North Shore Sign Company of Libertyville was awarded a contract for $329,889 to construct and install two new monument signs with digital displays on the Grayslake Campus, and Thermosystems Inc. of Elmhurst was awarded a contract for $984,940 to provide and install 12 air handler units for the A and B Wings.

In other purchasing action, McGladrey LLP of Chicago was awarded a two-year extension of a contract to provide audit services at a cost of $106,950 for FY 2015 and $110,200 for FY 2016. 

Under non-biddables, the trustees approved purchasing an auto alignment system for the Automotive Collision Repair program from Automotive Lift Service & Equipment Co. of Hebron, Ill., for an amount not to exceed $74,456.60.

 

Human resources

The trustees approved creating a new administrative position, vice president for marketing, research and advancement, to provide leadership for a new advancement unit designed to support the college’s strategic plan. The new unit will include Public Relations and Marketing, CLC Foundation, Alumni Services, Workforce and Professional Development Institute and Institutional Effectiveness, Planning and Research. A search to hire the vice president is scheduled to begin in October with the goal of filling the position early in Spring Semester 2016.

In separate actions, the trustees approved hiring Jason Sarna as director of admissions, effective Oct. 19, and appointed Christine Lewis as interim director, advising center, effective Sept. 23.