H. Finance, Technology, and Human Resources Committee *1:00 p.m. (ET), November 30, 2017 Conference Room 102B KCTCS System Office Versailles, Kentucky

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1 H. Finance, Technology, and Human Resources Committee *1:00 p.m. (ET), November 30, 2017 Conference Room 102B KCTCS System Office Versailles, Kentucky Call to Order Page Roll Call Approval Minutes Approval of September 14, 2017, Meeting Minutes **Action: Ratification of Personnel Actions Action: Annual Audit Report Update: KCTCS Quarterly Financial Report Update: Facilities Support Services Status Report Update: Resource Development Report Next Meeting March 15, 2018 Adjournment *Start time will be upon conclusion of the preceding event. ** All items listed with two asterisks (**) are considered to be routine by the Board and will be approved by one motion. An item may be removed from the consent agenda at the request of a regent. Agenda items removed from the consent agenda will be discussed in their normal sequence at the full Board of Regents meeting. Consent agenda items will be discussed separately during committee meetings of the Board of Regents. 57

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3 DRAFT MINUTES KCTCS Board of Regents Finance, Technology, and Human Resources Committee September 14, 2017 Committee Members Present: Ms. Lisa V. Desmarais, Committee Chair Mr. Barry K. Martin, Committee Vice-Chair Dr. Gail R. Henson Ms. Mary R. Kinney Mr. Gavin B. Posey Mr. Donald R. Tarter Mr. Mark A. Wells CALL TO ORDER Committee Chair Lisa V. Desmarais called to order the meeting of the Kentucky Community and Technical College System Board of Regents Finance, Technology, and Human Resources Committee at 2:15 p.m. (CT) on September 14, The meeting was held in Room C90 of the John H. Gray Building at Madisonville Community College. The press was notified of the meeting on September 6, Hon. Mike Murray, KCTCS General Counsel, served as parliamentarian. There being a quorum present, the meeting began with the approval of minutes. WELCOME OF NEW COMMITTEE MEMBERS APPROVAL OF MINUTES ADDITIONS OR CHANGES TO THE AGENDA ACTION: RATIFICATION OF PERSONNEL ACTIONS Chair Desmarais extended a welcome on behalf of the Finance, Technology, and Human Resources Committee to Dr. Gail Henson, as a newly assigned committee member. Dr. Henson is the Vice Chair of the Board of Regents and previously served on the Academic Affairs and Curriculum Committee. She welcomed Ms. Mary Kinney, as a newly assigned committee member. Ms. Kinney is the elected staff representative from Owensboro Community and Technical College and she previously served on the Academic Affairs and Curriculum Committee. Chair Desmarais welcomed Mr. Gavin Posey, as a newly assigned committee member. Mr. Posey is one of the newly elected student representatives from West Kentucky Community and Technical College to the Board. Chair Desmarais asked if there were any corrections to the June 8, 2017, minutes presented in the meeting materials. There being none, the minutes were declared approved as presented. There were no additions or changes to the agenda. RECOMMENDATION: That the KCTCS Board of Regents ratify the personnel actions listed in the agenda materials. Chair Desmarais called on KCTCS President Jay K. Box to present the item. KCTCS Vice President Wendell Followell assisted with the presentation. It was noted that the personnel actions presented were in accordance with reporting guidelines and policies adopted by the KCTCS Board of Regents. 59

4 DRAFT President Box shared some background on the reporting of the Personnel Action. He noted that on March 19, 1998, the Board of Regents delegated to the KCTCS President the authority to administer personnel actions, with such actions to be presented to the Board for review and ratification at each regularly scheduled Board meeting. Personnel actions occur regularly throughout the year and those personnel actions are allowed to take place, subject to Board of Regents ratification at the next Board meeting. President Box noted that the format of this agenda item was developed in consultation with the Board of Regents and has been used for the past several years to provide the Board basic information for its action, without providing unnecessary detailed data. President Box also shared that beginning with this report, the personnel actions will now reflect the number of current full-time regular vacant positions that are in the System. Chair Desmarais called for discussion. There being none, she called for a motion. MOTION: Dr. Henson moved and Mr. Tarter seconded that the Finance, Technology, and Human Resources Committee recommend that the KCTCS Board of Regents ratify the personnel actions listed in the agenda materials. VOTE: The motion was approved unanimously. ACTION: THE KENTUCKY WORK READY SKILLS $100 MILLION BOND POOL KCTCS PROJECT AWARDS ROUND TWO RECOMMENDATION: That the KCTCS Board of Regents approve the renovation of the Welding Facility Training Lab at Hopkinsville Community College awarded in the second round of the Kentucky Work Ready Skills Initiative, a $100 million statewide bond program led by the Kentucky Education and Workforce Cabinet. Chair Desmarais called on KCTCS President Jay K. Box to present the item. KCTCS Vice President Wendell Followell assisted with the presentation. President Box noted that the Kentucky Work Ready Skills Initiative is aimed at building a highly trained, modernized workforce in the Commonwealth to meet the needs of employers and promote sustainable incomes for Kentuckians. The initiative encourages private sector employers, high schools or secondary technical schools, and postsecondary institutions, among other entities, to develop partnerships and submit applications for the construction and equipping of new facilities; renovations or upgrades of facilities; or the purchase of new or upgraded equipment, software, or furnishings that will aid in workforce training and education. 60

5 DRAFT It was noted that Kentucky Revised Statute (KRS) (7) requires that an unbudgeted capital construction project with a scope greater than $1,000,000 be approved by the KCTCS Board of Regents and submitted to CPE for approval. In December 2016, the Board approved ten projects over $1,000,000 in which KCTCS would serve as the fiscal agent, to be funded by the Work Ready Skills Initiative Pool. Seven of the ten projects were included as finalists in Round One of the awards. The Welding Facility Training Lab at Hopkinsville Community College (HCC) was part of a Round Two award to Christian County for a total of $4.3 million. HCC will receive $2.3 million of the $4.3 million dollar award. Since the award amount is greater than $1.0 million, Board approval is required. Chair Desmarais called for discussion. There being none, she called for a motion. MOTION: Mr. Martin moved and Ms. Kinney seconded that the Finance, Technology, and Human Resources Committee recommend that the KCTCS Board of Regents approve the renovation of the Welding Facility Training Lab at Hopkinsville Community College awarded in the second round of the Kentucky Work Ready Skills Initiative, a $100 million statewide bond program led by the Kentucky Education and Workforce Cabinet. VOTE: The motion was approved unanimously. ACTION: KCTCS INTERIM PROJECT APPROVAL SCOPE INCREASE: PIKEVILLE TECHNOLOGY CENTER RECOMMENDATION: That the KCTCS Board of Regents approve the scope increase of $1 million for the construction of the Technology Center to be located on the Pikeville Campus of the Big Sandy Community and Technical College. Chair Desmarais called on KCTCS President Jay K. Box to present the item. KCTCS Vice President Wendell Followell assisted with the presentation. President Box noted that in 2015 KCTCS received approval to construct an approximate 15,000 square foot technology center with classroom space, lab space, and a high bay training area to house a telecommunications-training project on the Pikeville campus of Big Sandy Community and Technical College. The project was originally awarded to Pikeville University; switching the project from Pikeville University to Big Sandy Community and Technical College resulted in several delays, as did filing several responses to the Army Core of Engineers about construction specifications. When bids for construction were received, the bids came in over the project budget. Grant requirements require the facility to be under construction by December 30, 61

6 DRAFT The current scope of the Pikeville Technology Center is $4,500,000. This project is funded with $3,278,000 of grant funds and $1,222,000 matching agency funds. Matching agency funds need to be increased by $1 million to bring the scope to $5,500,000. Chair Desmarais called for discussion. During the discussion, it was noted that this is a great opportunity for Big Sandy Community and Technical College. MOTION: Mr. Martin moved and Mr. Posey seconded that the Finance, Technology, and Human Resources Committee recommend that the KCTCS Board of Regents approve the scope increase of $1 million for the construction of the Technology Center to be located on the Pikeville Campus of the Big Sandy Community and Technical College. VOTE: The motion was approved unanimously. ACTION: KCTCS BIENNIAL BUDGET REQUEST RECOMMENDATION: That the KCTCS Board of Regents approve the Biennial Budget requests, operating and capital, for KCTCS to be submitted to the Council on Postsecondary Education (CPE). Statutorily, KCTCS must submit its requests, operating and capital, by November 15, The KCTCS operating and capital requests will be developed in cooperation with the CPE guidelines. Chair Desmarais called on President Box to present the item. Vice President Followell assisted with the presentation. President Box reminded the Board that to formulate the budget, the higher education institutions work through the Council on Postsecondary (CPE). It is well understood that the general funds will be limited so the higher education institutions have agreed not to request full funding restoration in 2018; rather, they are putting forth limited and targeted funding requests. Additionally, addressing the need for restoring public pension funding is likely going to the General Assembly s first priority. The biennial budget request for operating funds for KCTCS per the guidelines developed by CPE is as follows: Base Appropriation $181,605,000 $181,605,000 $181,605,000 Performance Funding - 1. Performance Funding - Inflationary Increase* - 4,379,400 8,758,800 62

7 DRAFT 2. Student Performance Metrics -Growth in Outcomes - - 4,159,700 Dual Credit Course Expense** - 11,700,000 11,700,000 Workforce Trust Funds*** - 5,000,000 5,000,000 Competitive Workforce Initiative**** KERS/KTRS Pension Support***** - 19,100,000 19,100,000-3,300,000 2,300,000 Total** **** $181,605,000 $225,084,400 $232,623,500 * Assumes that the State funds half of inflationary cost increases each year of the upcoming biennium, calculated by applying a 2.0% annual inflation factor to Educational and Related spending, and that the other half of the cost increases are funded with net tuition and fee revenue. Distribution of these funds would not be growth dependent, but distributed in their entirety, regardless of whether outcome levels increase, decrease, or remain the same. **Dual Credit Course Expense: KCTCS is requesting consideration for funding to support the increasing costs of dual credit. The request for support is calculated by totaling expenses and foregone tuition and fees based on FY actuals and adding in the FY tuition rate increase (3.85%). *** CPE anticipates inclusion of a request of $5.0 million in bond funds earmarked for KCTCS within the request for Bucks for Brains. The funds would establish a Workforce Endowment with KCTCS to provide a dollar for dollar match. **** KCTCS is requesting recurring funding to target the areas of Health Care, Advanced Manufacturing, Transportation/Logistics, Business Services/Information Technology, and Construction/Trades. As the only higher education institution in Kentucky statutorily mandated to provide workforce education and training, KCTCS has a pivotal role in addressing Kentucky s skilled labor shortage and meeting the needs of business and industry. ***** This request reflects consideration for the fact that state pension costs continue to escalate at an ever-increasing rate. Discussion of increases as high as 66 percent for the KERS could occur by the end of without pension reform. To offset this possible increase, KCTCS assumed a KERS increase of 10.53% in FY 2019 and 6.0% increase in FY KCTCS assumed a 3.0% increase for KTRS in FY 2019 and a 3.0% increase in FY

8 DRAFT ******Total reflects anticipated achievement of all performance funding measures, workforce trust funds, competitive workforce initiative, and KERS/ KTRS pension support. For , the Capital Budget Request is $514,500,000. The KCTCS President has worked with the 16 KCTCS college presidents, university presidents and the CPE President to develop a biennial capital budget request that fully meets the capital needs of KCTCS for The proposed KCTCS biennial capital budget request: Recognizes the economic situation facing the Commonwealth of Kentucky in the biennium. Recognizes the need for an additional general fund appropriation for each institution of postsecondary education. Provides opportunity for the institutions and the CPE to cooperatively seek additional funding. The proposed KCTCS biennial capital budget request is based on the KCTCS Six-Year Capital Plan [compiled from project information submitted by the 16 KCTCS college presidents through a Strategic Needs Analysis (SNA) submitted pursuant to statute to the Legislative Capital Planning Advisory Board.] President Box noted that at the time of the development of this agenda item, CPE Staff s final recommendations concerning KCTCS requests were not yet known. Therefore, all requests, operating and capital, discussed with CPE Staff are included. Chair Desmarais called for discussion. During the discussion, it was noted that the KERS/KTRS proposed rates have gone from 66 percent to 84 percent so that the current budget request of $3.3 million and $2.3 million may change to reflect the increased rate. President Box also shared that every college has a capital project and the projects have been prioritized according to the rubric. The first two capital projects are BuildSmart projects for construction, as the first stage of these projects were for design only. MOTION: Mr. Martin moved and Dr. Henson seconded that the Finance, Technology, and Human Resources Committee recommend that the KCTCS Board of Regents approve the Biennial Budget requests, operating and capital, for KCTCS to be submitted to the Council on Postsecondary Education (CPE). Statutorily, KCTCS must submit its requests, operating and capital, by November 15, The KCTCS operating and capital requests will be developed in cooperation with the CPE guidelines. 64

9 DRAFT VOTE: The motion was approved unanimously. UPDATE: KCTCS QUARTERLY FINANCIAL REPORT Chair Desmarais called on President Box to present the item. Vice President Followell assisted with the presentation. It was reported that information for the fourth quarter of fiscal year , which ended June 30, 2017, was derived from the KCTCS Administrative Financial System. The Statement of Revenues and Expenditures reflects the actual program and operational expenditures compared to the fiscal year budget approved by the KCTCS Board of Regents on June 10, Total revenues of $787 million reflect 94 percent of the budgeted revenue and appropriated funds. Current fund expenditures and budget reserve through the fiscal year total $702 million, 84 percent of the expenditures budgeted for the year. As of the end of the fourth quarter, tuition for was at 100 percent received. The Statement of Net Position, although not specifically required in the Board s Annual Budget Adoption Resolution, has also been included in the Quarterly Financial Report to give the Board a periodic snapshot of the KCTCS financial position using the most common accounting-based schedule. While significantly influenced with declining enrollment and associated tuition shortfalls, the reduction in state appropriation and the negative effect of the state s pension liability, KCTCS s Statement of Net Position remains fiscally sound at $505 million as of June 30, Chair Desmarais called for discussion. During the discussion, questions regarding KCTCS long-term investments in the stock market were asked. It was noted that KCTCS investments are compared with other postsecondary institutions at one, three, and five-year intervals and KCTCS is competitive with their investments. Chair Desmarais called for discussion. There being none, she moved to the next agenda item. UPDATE: SUPPLIER DIVERSITY REPORT Chair Desmarais called on President Box to present the item. Vice President Followell assisted with the presentation. KCTCS defines diverse suppliers as those businesses owned by ethnic minorities, women, veterans, or the physically challenged. Fiscal year (FY) 2017 data indicates that KCTCS has spent $3.1 million (6.2 percent) of a total $51.4 million in impactable discretionary spend with diverse suppliers. Dollars spent with diverse suppliers was less in FY 2017 (6.2 percent) as compared to 2016 (9.4 percent). Dollars spent with all suppliers decreased due to continued tight budgetary constraints of flat state appropriations and lower tuition revenues due to enrollment declines. 65

10 DRAFT President Box noted that the total does not reflect a purchase that was ordered, but not received, in FY of $935,000. The purchase will be counted in the FY expenses. On September 20, 2017, KCTCS will host the fifth annual KCTCS Supplier Diversity Fair at the Frankfort Convention Center. More than 200 guests and up to 60 exhibitors are expected to attend. Buyers and officials from other organizations and suppliers such as Commerce Lexington, Lexington-Fayette Urban County Government, Fayette Co. Public Schools, UK, U of L, and others will be in attendance. The event includes not only the opportunity for diverse suppliers to highlight their business, but also breakout sessions instructing diverse suppliers on how to increase their opportunities to do business with KCTCS. Chair Desmarais called for discussion. There being none, she moved to the to the next agenda item. UPDATE: OTHER POSTEMPLOYMENT BENEFIT (OPEB) TRUST Chair Desmarais called on President Box to present the item. Vice President Followell assisted with the presentation. President Box noted that at the December 2012 KCTCS Board of Regents meeting, this committee recommended and the Board of Regents approved by resolution to establish an Other Post-Employment Benefits (OPEB) Trust for the health insurance benefit of eligible employees in KCTCS 403(b) retirement plans. As of June 30, 2017, the KCTCS Section of 115 IRR Trust is fully funded with $186 million in assets and $163 million in liabilities. The liability is actuarially calculated based on factors such as current and projected levels of trust funding, changes, and projected changes in the number of participants expected to draw against the trust, current and future projected health care rates, and the trust s current value and projected earnings from investments. Chair Desmarais called for discussion. During the discussion, it was noted that once everyone is out of the pool, any remaining money in the pool can be rolled over and the asset would come back to the Board for it to be determined how to use the asset. UPDATE: TECHNOLOGY SOLUTIONS REPORT Chair Desmarais called on President Box to present the item. Vice President Paul Czarapata assisted with the presentation. It was noted that Technology Solutions are continuing one-day training summits at the colleges to give faculty and staff exposure to software such as OneDrive, SharePoint, Office 365, security best practices, and advising. There are four Summits scheduled for this fall at Ashland Community and Technical College, 66

11 DRAFT Henderson Community College, West Kentucky Community and Technical College, and Southeast Kentucky Community and Technical College. In addition to the Summits, System Office Technology Solutions staff make regular college visits to engage with college staff and share ways that they can help with training, technology, reporting, etc. The KCTCS Mobile Application has been around 2.5 years now and has a 4.8 out of 5 star rating in the Apple store and 4.4 out of 5 star rating in the Android store. Several marketing campaigns have been run at the colleges to raise awareness and increase usage of the apps. Over 45,000 students use the app. Vice President Czarapata gave a brief demonstration of the sign-on experience with the MyPath Single Sign-On that the System Office Technology Solutions department developed to help faculty, staff, and students. MyPath offers one point of entrance to several technology systems. Chair Desmarais called for discussion. There being none, she moved to the to the next agenda item. UPDATE: OFFICE OF AUDIT SERVICES REPORT Chair Desmarais called on Mr. Glenn Paige, Office of Audit Services (OAS) Director, to provide a semi-annual report on the activities of the OAS. The OAS conducts internal audits of KCTCS colleges and system-level departments, as well as special reviews requested by KCTCS management. Due to reorganization within KCTCS, Audit Services now reports to the KCTCS General Counsel. There were 18 audits completed thus far for the FY and it has been concluded that KCTCS is operating within expected norms and risk levels. Two audits were performed due to college leadership changes. The audit performed at Henderson Community College had five reportable findings and the audit at Hazard Community and Technical College showed one reportable finding. There are four additional audits expected due to presidential or financial leadership changes at Elizabethtown Community and Technical College, Maysville Community and Technical College, Southeast Kentucky Community and Technical College and West Kentucky Community and Technical College. Standard audit reviews included the System Office non-payroll payment processes with one reportable finding, and the Environmental Health and Safety Compliance with no reportable findings. Special reviews were conducted for Student Financial Aid including Return to Title IV funds, Elizabethtown Community and Technical College cash security after a relocation of the Business Affairs office on campus, and a compliantbased special review on complaints involving outside employment and misuse 67

12 DRAFT of employee time. KCTCS overall risk profile is low based on this assessment. For FY 2018, the highest relative risk units are Student Financial Aid at a 2.8 medium risk; Federal and State Grants and Contracts at a 2.5 medium risk; and Human Resources/Organizational Development at a 2.5 medium risk. The FY 2018 Audit Plan was developed in May It calls for scheduled routine audits of Treasury Operations, Veterans Affairs, and the KY Center for Excellence in Automotive Manufacturing, and college visits to Ashland, Owensboro, and Southcentral. It also includes ongoing review of Return to Title IV calculations in Student Financial Aid and external audit assistance. Chair Desmarais called for discussion. There being none, she moved to announce the next meeting dates. NEXT MEETING ADJOURNMENT The next regularly scheduled Finance, Technology, and Human Resources Committee meeting is for November 30, 2017, at the KCTCS System Office, Versailles, Kentucky. Dr. Henson moved and Mr. Posey seconded that the Finance, Technology, and Human Resources Committee adjourn. VOTE: The motion was approved unanimously. The Finance, Technology, and Human Resources Committee meeting adjourned at 3:56 p.m. (ET). 11/30/17 Date Approved by the Finance, Technology, and Human Resources Committee Lisa V. Desmarais Committee Chair 68

13 ACTION RATIFICATION OF Agenda Item H-1 PERSONNEL ACTIONS December 1, 2017 Recommendation That the KCTCS Board of Regents ratify the personnel actions listed in the agenda materials. Rationale Since personnel actions occur regularly throughout the year, those personnel actions are allowed to take place, subject to Board of Regents ratification at the next Board meeting. The format of this agenda item is used to provide the Board basic information for its action, without providing unnecessary detailed data. o Individual personnel actions (certain administrative appointments and retirements, faculty promotions with tenure, and deaths). o Summary personnel actions (academic appointments, administrative appointments, reappointments, leaves of absence, retirements, resignations, non-renewal of appointments, and faculty promotions without tenure). o Number of current full-time regular open positions in the System. Background Kentucky Revised Statute gives governing boards exclusive control of employment, tenure, and official relations of employees. 69

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15 Personnel Actions Presented to the KCTCS Board of Regents December 1, 2017 I. Individual Personnel Actions A. Administrative Appointments Gateway Community and Technical College Andrew Carroll, Vice President of Workforce Solutions, 10/30/2017 Hopkinsville Community College James Hunter, Interim/Acting Chief Academic Affairs Officer, 10/1/2017 Ann Holland, Interim/Acting Chief Business Affairs Officer, 10/1/2017 Owensboro Community and Technical College Veena Sallan, Chief Academic Affairs Officer, 8/16/2017 West Kentucky Community and Technical College James Nolan, Vice President of Operations, 10/23/12017 B. Administrative Retirements Ashland Community and Technical College Willie McCullough, Dean of Community Workforce and Economic Development, 1/1/2018 System Office Lucinda White, System Registrar, 11/30/2017 James Keith Stephens, System Director of Grants & Contracts, 1/12/2018 C. Promotions Ashland Community and Technical College Sheree Bryant, Professor Elizabethtown Community and Technical College Kevin Shank, Associate Professor with tenure D. Special Leaves with pay longer than 90 days No action to report. E. Deaths No action to report. 71

16 II. Summary Personnel Actions A. Academic Appointments Air Conditioning, 1 Chemistry, 1 Cosmetology, 1 Global Studies, 1 Health Science Technology, 2 Medical Assisting, 1 Nursing, 3 Nursing Practical Nursing, 4 B. Administrative Appointments Chief Academic Affairs Officer, 1 Interim Chief Academic Affairs/Advancement Officer, 1 Interim Chief Business Officer, 1 Vice President of Operations, 1 Vice President of Workforce Solutions, 1 C. Reappointments No action to report. D. Terminal Reappointments No action to report. E. Leaves of Absence Sabbatical, 1 Paid Family Medical Leave, 1 Unpaid Family Medical Leave, 1 F. Non-Administrative Retirements Faculty, 7 Staff, 6 G. Resignations Faculty, 5 H. Non-Renewal of Appointment No action to report. I. Regular Full-time Positions as of October 16, 2017 UK, 182 total (faculty 128, staff 54) 18a/151b, 40 total (faculty 21, staff 19) KCTCS, 3706 total (faculty 1487, staff 2219) J. Regular Full-time Position Vacancies as of October 16, 2017 Faculty, 38 Staff,

17 ACTION Agenda Item H ANNUAL AUDIT REPORT December 1, 2017 Recommendation That the KCTCS Board of Regents accept the financial audit results for the fiscal year. Rationale The independent opinion issued by Crowe Horwath, LLP is an unmodified opinion. This opinion means that the KCTCS financial statements present fairly, in all material respects, the KCTCS financial position on June 30, The KCTCS financial statements and the audit firm s opinion letter are included in the document titled Annual Financial Report and (Attachment A). The audit firm has reported that there are no deficiencies in the KCTCS internal controls considered to be material weaknesses. The audit firm s management comment letter, KCTCS responses, and other related correspondence from the audit firm are included in the document titled Audit Correspondence. The audit firm has audited the KCTCS major federal programs in compliance with the requirements of the U.S. Office of Management and Budget Uniform Guidance. That audit report is in the document titled Report on Audit of Institutions of Higher Education in Accordance with Uniform Guidance. Background The KCTCS Board of Regents has acted to accept financial management of KCTCS as authorized by KRS 164A A. KRS 164A.570 requires that an annual financial audit be performed. The Kentucky Administrative Regulation (739 KAR 1:030) resulting from this action of the KCTCS Board of Regents states: The Kentucky Community and Technical College System Board of Regents elects to engage a qualified firm of certified public accountants for the purpose of submitting an independent opinion concerning the internal accounting controls and compliance with the provisions of KRS 164A.560, 164A.565, 164A.575, and 164A.620. The engagement of the qualified firm, scope of the audit, and report of findings shall be in accordance with the provisions of KRS 164A

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25 UPDATE: Agenda Item H-3 KCTCS QUARTERLY FINANCIAL REPORT December 1, 2017 The financial statements depict activity through the first quarter of fiscal year , the quarter ending, September 30, Information for these statements was derived from the KCTCS Administrative Financial System. The Statement of Current Funds Revenues and Expenses (Attachment A, Agenda Item H-3) reflects actual program and operational expenditures compared to the budget approved by the KCTCS Board of Regents, June 09, This report reflects total revenues of $326 million, 38 percent of the budgeted revenue and appropriated funds. The Statement Current Funds of Revenues and Expenses also reflects current fund expenses and budget reserve of $244 million, 29 percent of the expenses budgeted for the year. The Statement of Net Position (Attachment B, Agenda Item H-3) reflects the overall financial position of the System and includes assets, liabilities, and net position. Background The Annual Budget Adoption Resolution (adopted by the Board of Regents at its annual June meeting) states, The KCTCS Quarterly Financial Report shall contain sections that reflect the KCTCS July 1 operating budget, amendments to the operating budget, and expenditures to date. Attachment A, Agenda Item H-3, the Statement of Current Funds Revenues and Expenses, is designed to fulfill this requirement. Attachment B, Agenda Item H-3 the Statement of Net Position (Balance Sheet), although not specifically required in the Board s Annual Budget Adoption Resolution, has also been included in the Quarterly Financial Report to give the Board a periodic snapshot of the KCTCS financial position using the most common accounting-based schedule. 81

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29 UPDATE: FACILITIES SUPPORT SERVICES Agenda Item H-4 STATUS REPORT December 1, 2017 KCTCS Facilities Support Services staff has prepared the semi-annual Facilities Support Services Status Report. The Facilities Support Services Status Report can be accessed at the following link Updates related to KCTCS capital construction projects, facilities support services, sustainability initiatives and facilities utilization, are included in the report. Background The KCTCS Board of Regents has asked to be periodically updated on status of capital construction projects and other initiatives of the KCTCS Office of Facilities Support Services. In response to this request, KCTCS staff has provided a semi-annual update (at the June and December Board of Regents meetings). The focus of these reports includes capital construction projects, acquisitions, sustainability, facilities utilization updates; crisis management and environmental health and safety updates. 85

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31 Agenda Item H-5 UPDATE: RESOURCE DEVELOPMENT REPORT December 1, 2017 The Resource Development Report will be presented at the December 1, 2017, Board of Regents meeting. The report covers private giving and sponsored projects, grants, and contracts. Private gift income by donor purpose and source for the System and the donor source by college for the KCTCS colleges are presented in the report. In addition, the largest private gifts during the reporting period are featured. Sponsored Projects, Grants, and Contracts funds are stated by source and purpose for the System Office in total, and total awards to individual colleges are presented. The top grants and contracts received during the reporting period are highlighted. This report will cover gifts from July 1, 2017 through November 10, Background When the capital campaign, Fulfilling the Promise, was completed in 2011, this reporting format for private gifts, sponsored projects, grants and contracts was developed and was accepted by the Board of Regents at the March 2012 meeting. The report format took effect July The Resource Development Report is presented at the June and December Board meetings. 87

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