Northern Essex Community College
Board of Trustees Audit and Finance Sub-Committee Minutes
Wednesday, May 1, 2024
Attendees: Trustees Jennifer Borislow, Jouel Gomez, Lloyd Hamm, and Evan Silverio, President Lane Glenn, Michael McCarthy, Anthony DeGregorio, and Linda Buckley, Note-taker
Chairman Hamm called the meeting to order 4:00 pm. The minutes of the April 3rd meetinga were approved with a motion presented by Trustee Silverio and seconded by Trustee Gomez.
FY2025 College Operating Budget
The Audit & Finance Sub-Committee recommended that the Board of Trustees of Northern Essex Community College approve the FY2025 Operating Budget of $76,685,220.
The proposed FY2025 Operating Budget is based upon the following: estimated state appropriation support, the college’s Enrollment Plan, the college’s staff and faculty salaries & benefits plan, grants support, the 4% increase in the Institutional Support Fee – Regular and the 4% increase in the Institutional Support Fee – Allied Health Courses, and defined Other Operating Expenditures. The attached Financial Report further portrays the FY2025 proposed budget’s key assumptions and details.
On a Motion presented by Trustee Silverio and seconded by Trustee Hamm, the Board unanimously approved of the FY25 College Operating Budget.
Other Business:
· The single audit report by Withum regarding compliance for Each Major Federal Program was reviewed. The findings were noted, along with Management’s Corrective Action Plans.
· The FY23 and FY22 Financial Update for the Early College Program (EC) was presented, detailing the number of EC Students who did or did not continue their education at Northern Essex Community College after their last EC semester.
The Key Assumptions noted by Vice President Michael McCarthy were as follows:
FY25 Proposed Budget Notes
1-May-24
Key Notes
· FY25 proposed Tuition & Fees Revenue represents an increase of $4.35m or 19% from the FY24 QT. 3 projections. This change includes the approved 4% fees increase.
· FY25 proposed total credits is 66,880 which is a 5,799 or 9.5% increase from the FY24 QT. 3 projections.
· FY25 proposed Student Financial Aid (SFA) is an increase of $1.47m or 17.8% from FY24 QT.3 projections; resulting in a projected annual discount rate of 37%
· FY25 proposed Grants & Other Revenues total $21.08m; representing an overall decrease of ($872k) or (3.97%) from FY24 QT.3 projections.
· FY25 proposed Salaries & Benefits total $54.2; representing a net increase of $3.08m or 6.02%, projections include FY24 actual paid unions’ and NUPs’ raises.
· FY25 proposed Other Operating Expenses is $17.2m, an increase of $1.17m or 7.29% from the FY24 QT. 3 projection. The increase is from various non-controllable operating expense categories; such as, gas, electric, SW licenses, etc. All controllable expenses were kept at the FY24 levels.
· FY25 proposed Depreciation Expense is $4.85m, a $200k increase from the FY24 QT.3 projection.
· FY25 proposed Bad Debt Expense remains the same as the FY24 QT.3 projection of $475K.
· FY25 proposed State Appropriation is $36.35m, this early estimate is based on the Mass. State House’s initial FY25 budget. This represents an increase of $1.37m 3.92%.
· FY25 proposed Net Investment Income is $900k, a decrease of $300k from the FY24 QT.3 projection.
· FY25 proposed Capital Appropriations of $2.1 million represents our current planned projects to be completed by 6/30/24.
Results in a FY25 proposed positive increase of $1k Change in Net Position.
With no further issues, the meeting was adjourned at 4:55 pm.
Respectfully Submitted by Linda Buckley. May 8, 2024
