NECC Board of Trustees Audit and Finance Sub-Committee Minutes – October 5, 2022
Attendees: Trustees Jennifer Borislow, William Cox, Jeffrey Linehan, President Lane Glenn, Michael McCarthy, Anthony DeGregorio, and Linda Buckley, Note-taker
The meeting was called to order at 4:02 pm by Chairwoman Jennifer Borislow.
APPROVAL OF MINUTES: Chairwoman Borislow asked for a motion to approve the May 4, 2022 meeting minutes.
On a Motion presented by Trustee Linehan and seconded by Trustee O’Rorke, the Board unanimously approved the May 4, 2022 minutes as presented with three (3) trustees approving.
FY2023 College Operating Budget
The Audit & Finance Sub-Committee recommends that the Board of Trustees of Northern Essex Community College approve the FY2023 Supplemental Operating Budget of $70,513,379.
On a Motion presented by Trustee Linehan and seconded by Trustee Cox, the Board unanimously approved recommending that the Board of Trustees approve the NECC FY2023 Supplemental Operating Budget of $70,513,379 (AFC-23-01) as presented with three (3) trustees approving.
This revised Operating Budget of $70,513,379 is based upon the college fee rate increases of Regular and Allied Health courses, along with the final state support of $31,361,560; Net Tuition & Fees down $861k; Grants & Other Revenues increased by $2.05m; Salaries & Benefits reflect all current approved positions and the net impact of all the various units’ salaries increases, including reduced expenses of $709k, primarily driven by reduced instruction costs; other Operating Expenses increased by $3.2m, primarily driven by the increase in CARES/HEERF Institutional spend and the increase in grant operating expenditures. These factors resulted in a projected FY23 yearend gain in Net Position of $200,423.
Michael McCarthy, Chief Financial and Operations Officer, noted the following:
· Tuition & fees revenue includes the BOT’s approved fee increase; a $3.00 per credit fee for College Regular and Allied Health which resulted in $155,000 of additional revenue. Yearend actual total credits were 5,443 under forecast; resulting in a decrease in revenue of $643,797.
· Enrollment Credits: final actual credits after all adjustments for withdrawals, etc., totaled 52,047 versus a plan of 57,490 for a decrease of 5,443 or 9.47%.
· SFA using a discount rate of 42%–consistent with prior years ØGrants & Other Revenues yearend totaled $18.6m versus our forecast of $19.4m.
· Salaries & Benefits are actual expenses incurred-waiting for final benefits calculations for the State Comptroller’s Office.
· Other Operating Expenses actuals represent an increase of $1.15m, primarily driven by the increase in CARES/HEERF Institutional spend for FY22.
· CARES/HEERF Funding Components: Federal Cares Revenue is greater than forecast by $2.9m; increase driven by Recognized Loss Revenue & Indirect of $1.9m and $1.0m of additional spending.
· FY22 State Appropriations Funding totaled $30.8 million.
· FY22 Capital Appropriations Funding Schedule projected at $1.9m; waiting for final recognized amount from the state.
· Results in a projected FY2022 yearend gain in Net Position of $2.2m, before final year-end audit adjustments.
With no further issues, the meeting was adjourned at 4:44 pm.
Respectfully submitted by Linda Buckley. October 12, 2022
