BOARD OF TRUSTEES FINANCE, INVESTMENT, AND AUDIT COMMITTEE REPORT SUMMARY Date of Meeting: January 29, 2016 Date of Next Meeting: TBD Committee Chair: John Wobensmith 93 Committee Members: Carlos Alcazar, Gail Harmon, Lex Birney, Peter Bruns, Sven Holmes, Deborah Lawrence, Ann McDaniel Staff Member: Chip Jackson Dashboard Metrics: 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - Revenue History (000's) FY10 FY11 FY12 FY13 FY14 FY15 FY16 Est. Tuition & Fees Auxliary State Other 4.0% 3.0% 2.0% 1.0% 0.0% Other Revenue (unrestricted revenue exclusive of tuition, fees, auxilliaries and State funds) FY10 FY11 FY12 FY13 FY14 FY15 FY16 Est. 4,000 3,000 2,000 1,000 - Percent of Total Revenue Revenue (000's) Executive Summary: Discussion Items FY17 Operating Budget Development: A preliminary review of anticipated revenues and expenses based on current assumptions are provided. Based on current assumptions, the preliminary Leadsheet projects a deficit of $0.53M. A balanced budget will be prepared for approval by the Board at its May meeting. Five-Year Operating Budget Projections: The 5-year budget model has been updated for the period FY17 FY21. The model incorporates various assumptions to predict fiscal conditions and trends to help the institution understand the fiscal environment facing the College over the next five years. Revenue Sources: An overview of the College s revenues is provided, including a framework to assess the potential for growing existing revenue and developing new revenue streams.
Information Items FY16 Financial Results to Date: Revenue and expense results are provided. Update on the Legislative Session: An overview of the Governor s proposed operating and capital projects are provided. Action Item(s) related to specific strategic plan goals as appropriate: Action Item I. Approval of Minutes Action Item III.A.: FY17 Tuition, Fees, Room and Dining Plan Tuition rates for FY17 are recommended to increase by 2.0%. Fees, room, and board are recommended to increase 3.0%. Action Item III.B.: Domestic Partner Policy Discontinuation The College s Same Sex Domestic Partner Health Benefits Policy is recommended to be discontinued. With the passage of the Civil Marriage Protection Act in Maryland on January 1, 2013 and with the United States Supreme Court ruling in Obergefell v. Hodges on June 26, 2015 same sex marriage has been legalized in the United States and same sex couples now share the same benefits, protection and obligations as opposite sex couples under Maryland and Federal law. Action Item III.C.: Employee Handbook Revision Recommendations include updating the College s Shift Differential policy; updating the College s Miscellaneous Paid Leave policy; updating the College s Exempt Employee policy; and updating the Employee Handbook by removing the section titled, Domestic Partner. Committee Action Taken/Action in Progress: Recommendation to the Board:
FINANCE, INVESTMENT, AND AUDIT COMMITTEE MEETING OF JANUARY 29, 2016 AGENDA I. APPROVAL OF MINUTES (Meeting of December 4, 2015) II. III. IV. DISCUSSION ITEMS A. Status of FY17 Operating Budget Development B. Five-Year Budget Model: FY17 - FY21 C. Revenue Sources Overview of existing and potential new sources ACTION ITEMS A. FY17 Tuition, Fees, Room and Dining Plan B. Domestic Partner Policy Discontinuation C. Employee Handbook Revision INFORMATION ITEMS A. FY16 Financial Results to Date B. Update on Legislative Session C. Reportable Procurement Items D. Joint Investment Activities
BOARD OF TRUSTEES FINANCE, INVESTMENT, AND AUDIT COMMITTEE OPEN SESSION MINUTES Date of Meeting: December 4, 2015 Committee Members Present: Chair John Wobensmith 93, Gail Harmon, Lex Birney, Carlos Alcazar, Peter Bruns, Deborah Lawrence Committee Members Absent: Ann McDaniel, Sven Holmes Others Present: Tuajuanda Jordan, Chip Jackson, Carolyn Curry, Dan Branigan, Chris True, Catherine Pratson, Anna Yates, Chris Burch, Erin Millar, Tommy Cable, Gabriel Mbomeh Executive Summary: The meeting was called to order at 2:04 p.m. Representatives from the audit firm SB & Company provided a presentation about the audit process and a summary of the findings. In addition, the representatives addressed questions presented by the Trustees. At 2:48 p.m., the committee voted to close the meeting for the purposes set forth in the closing statement. The motion passed unanimously. On December 4, 2015 at 2:48 p.m. at Campus Center 205, the Finance, Investment and Audit Committee held a closed session to discuss management s role and any issues related to fraud, waste and abuse with representatives of SB & Company, LLC. The motion to close the meeting pursuant to Md. Code Ann., Gen. Prov., 3-305(b) to discuss these topics was unanimously approved. The topics discussed included the audit process and findings of no issues of fraud, waste or abuse by representatives of SB & Company, LLC. The following members of the Committee were present: Chair John Wobensmith 93, Gail Harmon, Lex Birney, Carlos Alcazar, Peter Bruns, and Deborah Lawrence. The following actions were taken during the closed session: No actions were taken during the closed session. Open session reconvened at 3:00 p.m. DRAFT Action Item(s): Action Item I.A.: Acceptance of the FY15 Auditors Report and Audited Financial Statements. Statements reflecting the financial transactions and position of the College for the period July 1, 2014 through June 30, 2015 were prepared in accordance with generally accepted accounting principles, reflecting the GASB 34 & 35 reporting requirements. The independent firm of SB and Company, whose report and opinion are included in the document, has audited these statements. To provide evidence that the statements have been provided to and approved by the Board of Trustees, the Committee is asked to recommend that the Board of Trustees vote to accept them. Committee Action Taken/Action in Progress: The proposed action item was approved by the Finance, Investment, and Audit Committee at its December 4, 2015 meeting.
Recommendation to the Board: The Finance, Investment, and Audit Committee recommends approval of these action items by the Board of Trustees. The meeting adjourned at 3:02 p.m. DRAFT