Northern Essex Community College
Board of Trustees Audit and Finance Sub-Committee Minutes
Wednesday, April 3, 2024
Attendees: Trustees Jennifer Borislow, Sally O’Rorke via Zoom, Lloyd Hamm, and Evan Silverio (via Zoom), President Lane Glenn, Michael McCarthy, Anthony DeGregorio, and Linda Buckley, Note-taker
Chairman Hamm called the meeting to order 4:16 pm. The minutes of the December 4 and February 14 meetings were approved with a motion presented by Trustee Silverio and seconded by Trustee O’Rorke.
FY25 Institutional Support Fee – Regular
The Audit & Finance Sub-Committee recommends that the FY25 Institutional Support Fee – Regular, which is assessed on all credit courses that are non-Health, to be $238 per credit, be moved to the full Board of Trustees of Northern Essex Community College for approval.
The complexity of the college’s current billing structure causes confusion, questions, and complications. The committee is recommending combining four (Regular College Fee, Student Activity Fee, Blackboard Access Fee and High Cost Course Fee Average) of the current separate per credit fees into one Institutional Support Fee, in order to simplify the college’s fee structure.
This fee is a mandatory fee assessed on all non-Health credit courses and represents a 4% increase over the current existing fees for FY24.
The Institutional Support Fee – Regular increase is projected to generate $748k in additional revenue. The state appropriation is projected to stay constant over the prior year. The initial planned appropriation is not sufficient to cover all of the collective bargaining costs, public safety, facilities updates, and other operating expenses.
On a Motion presented by Trustee Silverio and seconded by Trustee O’Rorke, the Board unanimously approved of the FY25 Institutional Support Fee – Regular.
FY25 Institutional Support Fee – Allied Health Courses
The Audit & Finance Sub-Committee recommends that the FY25 Institutional Support Fee – Allied Health Courses, which is assessed on all credit courses that are Allied Health, to be $321 per credit, be moved to the full Board of Trustees of Northern Essex Community College for approval.
The complexity of the college’s current billing structure causes confusion, questions, and complications. The committee is recommending combining four (Regular College Fee, Student Activity Fee, Blackboard Access Fee and High Cost Course Fee Average) of the current separate per credit fees into one Institutional Support Fee, in order to simplify the college’s fee structure.
This fee is a mandatory fee assessed on all Allied Health credit courses and represents a 4% increase over the current existing fees for FY24.
The Institutional Support Fee – Allied Health increase is projected to generate $91k in additional revenue. The state appropriation is projected to stay constant over the prior year. The initial planned appropriation is not sufficient to cover all of the collective bargaining costs, public safety, facilities updates, and other operating expenses.
On a Motion presented by Trustee Silverio and seconded by Trustee O’Rorke, the Board unanimously approved of the FY25 Institutional Support Fee – Allied Health.
The Key Assumptions noted by Vice President Michael McCarthy were as follows:
· QT. 3 projected YE Tuition & Fees Revenue represents an decrease of ($359k) or (1.62%) from the QT. 2 projections.
· Based on YTD QT. 3 actual reported completed and projected credits of 61,081 a decrease of (1,112) from QT. 2 Projections.
· QT. 3 Student Financial Aid (SFA) decreased slightly by ($135k) or (1.62%); resulting in a projected annual discount rate of 37.65% .
· QT. 3 projected YE Grants & Other Revenues total $21.9 million; representing an increase of $1.1 million or 5.4% from QT. 2 projections.
· Increase driven primarily by the additional net increase in Federal Grant components-mostly Pell grants.
· Qt. 3 YE projected Salaries & Benefits decreased by ($331k) or (.006%), projections include actual paid unions’ and NUPs’ retros and raises.
· QT. 3 YE projected Other Operating Expenses is $16.0 million, an increase of $585k or 3.79 % from the YE QT. 2 projection. The increase is from various operating expense categories.
· QT. 3 YE projected Depreciation Expense remains the same from QT. 2 at $4.7 million, recognizing the new YE FY23 capital assets.
· QT. 3 YE projected Bad Debt Expense remains the same from QT. 2 at $475K.
· QT. 3 YE projection for State Appropriation remains the same from QT. 2 at $35 million; projections include actual paid unions’ and NUPs’ salaries retros and raises.
· QT. 3 YE projected Net Investment Income is $1.2 million, similar to QT. 2.
· QT. 3 YE projected Capital Appropriations of $1.4 million represents our current planned projects to be completed by 6/30/24.
Results in a QT. 3 YE FY24 projection of a positive increase of $665k Change in Net Position.
The Approved Supplement Budget was a $290k positive increase.
With no further issues, the meeting was adjourned at 4:55 pm.
Respectfully Submitted by Linda Buckley. April 10, 2024
