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Committee Meeting: Financial Health Date: April 13, 2018
Committee Chair: Tim Callan
Committee Members: Tim Callan-BOT member, Rebecca Krakowiak-BOT member, Danise
Wilson-BOT member, Len Lenihan-BOT member, Dan Hocoy-President, Mike Pietkiewicz-EVP
Institutional Advancement and Efficiency, Penny Howard-EVP for Finance and Administration,
Rick Washousky-Provost/EVP, Krista Woods-Chief Accountant, Steve Smith-VP of Enrollment
Management, Sue Holdaway-Executive Director ASC
Mission:
Financial Health’s core purpose is to assist the Board of Trustees in fulfilling its fiduciary responsibility
in assessing overall financial performance of the college with respect to financial operations. The focus
is assembling and monitoring organizational priorities and work with the President to best present and
monitor management key financial performance indicators.
Vision:
Erie Community College Board of Trustees have a current and relevant short and long term
financial plan where concise, timely and understandable reporting tools provide Trustees with a
clear vision and pathway to institutional financial integrity.
AGENDA
1. Call to order
2. Approval of Minutes - Page 2
Motion to approve the minutes of March 30, 2018
Motion:
Second:
3. Old Business
4. New Business
a. Fundraising Update – Dan Hocoy, Ph.D.b. Quarterly ASC Report – Susan Holdaway, Executive Director ASC - Page 13c. EFPR Group Report – Penelope Howard, EVPAF - Page 15d. 2018-2019 Budget – Penelope Howard, EVPAF - Page 48
5. Next Meeting:
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Committee Meeting: Financial Health Committee Date: March 20, 2018
Committee Chair: Tim Callan
Present: Tim Callan-BOT member, Susan Swarts-BOT member, Mike Pietkiewicz-EVP
Institutional Advancement and Efficiency (left 5:10), Penny Howard-EVP for Finance and
Administration, Rick Washousky-Provost/EVP, Krista Woods-Chief Accountant, Steve
Smith-VP of Enrollment Management (arrived 4:25), Carl Widmer and Matt Montalbo-
auditors from Drescher & Malecki, LLP (left 4:45pm)
Phoned in: Rebecca Krakowiak-BOT member, Tracey Cleveland-VP of Human Resources,
Equity and Inclusion (joined 4:15)
Excused: Not Applicable
Mission
Financial Health’s core purpose is to assist the Board of Trustees in fulfilling its fiduciary
responsibility in assessing overall financial performance of the college with respect to
financial operations. The focus is assembling and monitoring organizational priorities and work
with the President to best present and monitor management key financial performance indicators.
Vision
Erie Community College Board of Trustees have a current and relevant short and long
term financial plan where concise, timely and understandable reporting tools provide
Trustees with a clear vision and pathway to institutional financial integrity.
Minutes
1. Call to Order: Trustee Callan called meeting to order at 4:05 pm.
2. Approval of Minutes:
Motion to approve the minutes of January 16, 2018
Motion: Provost Washousky
Second: Trustee Swarts
Passed: Unanimously
3. Old Business:
a. SUNY Erie Community College Draft Audit Report
b. SUNY Erie Community College Draft Management Letter
c. SUNY Erie Community College Concurred Review
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d. SUNY Erie Community College Draft Auditors Communication
e. SUNY Erie Community College Auditor Power Point Presentation
Auditor Montalbo reviewed that the aforementioned documents were supplied for
review and they would just start with the included Power Point Presentation and
allow for questions as they go along. The communications clarified their role in
the audit as an independent third party. About $2 million dollars in expenses
related to 2016 should have been capitalized instead of expensed so that has been
restated as part of the financials. Trustee Callan asked if there was a specific
project or projects that needed to be restated and was informed it was the
Nanotech project. Chief Accountant Woods added the funds were grant funds,
100% funded by the state.
The auditors reported an un modified or clean opinion on the financial statements,
the best you can do from an audit standpoint. Trustee Callan questioned the
figures presented around pensions and OPEB liability.
o What created the net pension liability decrease? Auditor Montalbo
answered based on actuarial reports provided by the retirement system.
o Why did the college’s OPEB increase after all the retirements that have
occurred? Auditor Montalbo mentioned this figures are from a third party
actuarial company (HyBridge). The retirements did not outweigh the
trending increases in healthcare costs and the increasing life expectancies.
o Trustee Callan would like to understand the assumptions made by the
actuarial company in particular around OPEB. Chief Accountant Woods
will research and report back on the OPEB numbers increasing so
dramatically over the past two years.1
Revenues and Transfers In vs. Expenses (agenda page 141) graphic showing
activity over the last five years with the bottom line being the most reflective of
the current budgetary operations.
Auditor Montalbo continued reviewing the Power Point presentation highlighting
the Operating Revenues with an overall increase and a decrease in the
Nonoperating Revenues and County Contributions. He continued to mention that
the Expenses also had an overall decrease from 2016. Our ratio of current assets
to current liabilities improved from 2016. Regarding the Net Position/Fund
Balance Reconciliation slide (agenda page 146), Auditor Montalbo suggested
striving for a current unrestricted fund balance of about $18 million to allow for
the stability of two months of operating expenses.
Auditor Widmer continued the presentation with the Management Letter
Observations leading with the reminder that the auditors did not uncover any
material weaknesses or significant deficiencies, no reportable findings are
included in the report. The Management Letter includes suggestions regarding
best practices and some housekeeping issues.
o Title of Succession Planning, as mentioned in previous audits
o Budget focus from financial management side, the actuals compared to
budget showed we did not need to use fund balance to balance the budget.
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Strive to not use fund balance for structural/operational budget building as
a practice.
o Budget has had incongruences with actual, suggestion for the college to
access and possibly create a budget manager position.
o Carry over suggestion from last year regarding the timeliness of bank
statement reconciliation. It is already being addressed and it is anticipated
that this suggestion will be unnecessary by next audit.
EVPIAE Pietkiewicz mentioned that the proposed AVP for Finance position had
been eliminated by the Board of Trustees (based on input from management two
years ago), and therefore would need board support to reconstitute that position.
Trustee Callan requested more research from Chief Accountant Woods regarding
the OPEB number increasing over the last two years.2
Auditor Widmer expects to release the findings in the near future, as the drafts are
being reviewed by the County Comptroller’s office currently.
Trustee Callan asked for an issues that may have been omitted from the
Management letter and was assured by Auditor Montalbo that all have been
addressed in that letter.
In the absence of any further questions, the auditors were excused from the
Financial Health Committee meeting at 4:45 pm.
4. New Business:
a. Finance Dashboard
Chief Accountant Woods mentioned the variances in revenues are mostly
attributed to decreased enrollment and the timing of some billing practices, for
example the out of county charges get billed later in the semester.
o Trustee Callan asked about the decrease in enrollment in relation to
headcount and FTE for spring. VPEM Smith discussed how applications
are trending, getting our brand out there to high school students and
online.
o EVPAF Howard mentioned that the budget did not reflect the reduced rate
per head for current high school students that are also taking classes from
SUNY Erie, one of the biggest growth areas for us. This difference will
be taken into account when forming the 2018-2019 budget.
o Trustee Callan and EVPAF Howard asked how SUNY Erie is trending
overall for the fiscal year actual to projected FTE, and VPEM Smith
answered we are down two to three percent. Country-wide there is a
decreased number of high school students, EVPAF Howard stated,
therefore we must figure out what are the other revenue sources to make
the trend go in the other direction.
o VPEM Smith restated that retention should be our biggest focus, give the
students that are attending a more enjoyable, affordable experience,
providing them with the best resources we can. SUNY Erie is looking into
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realignments, new practices around business processes for billing.
EVPIAE Pietkiewicz stated we are pursuing areas that SUNY Erie can
offer that ECC could not.
o EVPAF Howard noted that the dashboard shows we are moving in a
positive direction, though the revenues are down from our predictions the
operating expenses are down more than the revenues are down resulting in
a positive revenue trend. The things that we see here are the details that
would be analyzed by a fully functional Budget Manager Position and
given to us to make adjustments in real time. If the college has a
dedicated budget function as has been recommended by auditors, the
spend would be managed and monitored in almost real time
o Trustee Callan asked if there are SUNY recommended practices to address
these downward trends and EVPAF Howard informed that there is not an
official SUNY position on how we should be attracting more credit hours.
o EVPAF Howard would like to help this committee develop more strategic
thinking, and to think differently about how we make SUNY Erie a
fiscally stronger, growing, self-sustaining entity for our students and
become a better asset for Erie County
o Trustee Callan suggested that our single biggest concern is enrollment.
EVPAF Howard agreed. She stated that revamping our business processes,
in addition to providing stronger, more relevant programming will build,
grow and retain our student population.
b. Revenues and Key Item Report
Trustee Callan asked about the “fees for services” line item (page 154 of the
agenda). EVPAF Howard and Chief Accountant Woods explained that the
expenses for Workday are being tracked in the regular accounts and will be
adjusted at the end of the year. EVPAF Howard is working on making the correct
parts of the ERP capitalized. Trustee Callan was also reassured that SUNY Erie
will not need to buy new computers in order to use the new ERP system since
Workday is cloud based.
c. Vendor Report
EVPAF Howard said that for the rest of the fiscal year there will be increases
around the Workday implementation now that the heavy lifting has really begun.
d. Monthly Full-Time Vacancy Report
Trustee Callan asked about Coordinator of Admin Applications position with an
incumbent name that is now showing as vacant. This was a newly-created
position for the ERP project. However EVPAF answered the incumbent was
hired but quit soon after starting for more money at another institution. We are
looking again to fill that position and a few more IT positions for the transition.
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Trustee Callan noticed that the report was larger, including part-time positions
this month. EVPAF Howard stated that this was for transparency and the vacancy
report will now include part time positions. Also, we are reevaluating the
effectiveness of part-time positions and the feasibility of changing to full-time
positions.
e. Employer Liability Maximum Monitoring Report
EVPAF Howard mentioned this is as of the end of February, usually a month behind
for this report from Blue Cross.
f. Monthly Project/Facility Status Report
EVPAF Howard would like to present this report in a better way, easier to read,
clarified. She is working with DPW and Erie County and has recently been given
permission to collapse all our deferred maintenance projects into a single project with
subprojects.
Trustee Callan asked what are the big capital/deferred maintenance projects currently
underway. EVPAF Howard answered:
o Code compliance based on Federal audit for ADA
o Elevators
o Ramp issues at North
o Windows
o HVAC units failing
g. Facility Rentals
Trustee Callan asked about adding another column on this report to inform if the fees
charged were actually paid.
h. Health Utilization
Trustee Callan asked VPHREI Cleveland to explain the codes on the report. VPHREI
Cleveland supplied definitions after the meeting.3
5. Special Items—Requiring Board of Trustee Approval
a. Disposal of Material
Trustee Callan asked what actually happens to the items disposed and scrapped?
EVPAF asked if we are scrapping laptops/computers, how have their hard drives been
scrubbed? Chief Account Woods researched the answers after the meeting.4 Topic
will move forward for approval at full board meeting.
b. Disposal of Assets
Two security vehicles are being replaced as part of their replacement cycle, one car
per year. Topic will move forward for approval at full board meeting.
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c. Temporary Financial Consultant
EVPAF Howard stated based on issues that keep coming up in reviews, no one
available to help with the budget analysis and the personnel analysis to figure out
what the restructure looks like, she would like to bring on Rick Schott. His job would
be aiding EVPAF Howard in:
o Budget analysis
o Analysis of the Financial area including staffing, business processes
o Jointly will recommend how to restructure that area to be able to deliver what
SUNY Erie needs
Initial contract will be short term, longer term contract will go before the Board of
Trustees.
Trustee Callan asked about his exit from ECC previously and was answered by Chief
Accountant Woods that he was getting retiree health care. Trustee Callan asked if he
left on good terms which was the consensus of the people in the room. Trustee
Callan asked why should he return? EVPAF Howard wants him to help with very
specific projects because of his historical knowledge in that area and his good
relationships with the people that are there.
On the Executive Summary, page 203, the limit is incorrectly listed as $19,900 and
should be corrected to $19,950 before going to the Trustees.
d. Approval of Sole Source Repairs Ophthalmology
EVPAF Howard explained the reasons behind the request, ultimately going back to
the proper procedures to getting repairs for a broken machine vitally needed by the
program. Due to repairs going over the dollar threshold, procurement will not pay it
right now. Advice from our attorney is to get board approval to pay these invoices.
6. Other/New Business
a. Financial Strategic Planning
EVPAF Howard mentioned the included Financial Health standing committee
document that describes our Mission, Vision and Duties. As we move forward
please think about how we can be more proactive in developing strategy, vision
around moving this institution forward, making this institution more financially
sound, how we impact and are impacted by processes. Please review and send ideas
to us so they can be addressed at the next meeting.
Budget Planning Process for this upcoming year is in process. It is slightly different,
the budget proposals are tied to ECC Excels. Over the next 2-3 weeks there will be
meetings with the Deans/AVP levels regarding what they are trying to accomplish.
From there the EVP and Provost will review everything and then Executive team
will make the final decision on what the budget looks like to bring forward to the
Trustees for their approval. It will not include dipping into the fund balance or
increasing fees or tuition this year. The budget will be planned flat or under flat.
Trustee Callan asked for clarification of the goals and how will EVPAF Howard
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accomplish this? EVPAF Howard has been tracking our trend and explained why
she thinks it can be done. Plan is to be presented to the Board of Trustees in April to
be ready for the county executive in May. This year it is an interim process due to
the time restraints due to the hire date of EVPAF Howard.
Restructure of the Finance Unit—EFPR gave an initial report to EVPAF Howard
early February, she asked for a more in depth report aligned with their RFP. The
second draft she received commented that our organizational structure is deficient,
too reliant on part time positions, no flexibility, not enough positions focused on
critical analysis. Some goals are:
o To get a budget department to better manage the budgets and processed.
o To create succession planning in the financial units and ensure historical
knowledge is transferred.
o Make it possible to pull data and present information in a meaningful way
o Work smarter and more efficiently
Trustee Callan asked for a copy of the final EFPR report.
Trustee Callan asked for an official dialogue regarding the ERP project in terms of
financial needs and how we will pay for it. The go live dates are moving from July
to September, there will be a steering committee Thursday to finalize what they have
discovered and for agreement going forward. Trustee Callan asked who the
members of the Steering Committee were, since he never heard back from CIO
Lahkavani.5 After that EVPAF Howard will be able to share more information.
Trustee Callan requested Dr. Hocoy to attend next meeting, get a report on where he
stands with Development and Fundraising. EVPAF Howard suggests a dialogue
about reducing the frequency of Committee meetings with more quarterly reports,
with thoughtful consideration regarding due dates of county items.
7. Follow Up Items:
Motion to adjourn the Financial Health Committee meeting at 6:20 pm
Motion: Trustee Callan
Second:
8. Next Meeting: TBD
1 From page 2 2 From page 3 the information below answered both end note one and two
Questions surrounding the OPEB liability. Liability increased as follows (as disclosed in FS):
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2017 2016 2015
Annual Required Contribution ("ARC") 16,824,679.00 15,371,862.00 11,808,246.00
Interest on OPEB Obligation 3,162,064.00 2,817,108.00 2,612,137.00
Adjustment to ARC (4,408,867.00) (3,927,894.00) (3,642,103.00)
Annual OPEB Cost 15,577,876.00 14,261,076.00 10,778,280.00
Less: Contributions (5,500,313.00) (6,238,843.00) (6,011,514.00)
Increase in OPEB 10,077,563.00 8,022,233.00 4,766,766.00
OPEB Beginning of Year 73,536,371.00 65,514,138.00 60,747,372.00
OPEB End of Year 83,613,934.00 73,536,371.00 65,514,138.00
2016 Valuation:
Per actuarial valuation report—changes in assumptions and methods:
Mortality assumption updated to the RP-2014 Mortality tables, adjusted backwards to 2006
using Scale MP-2014 and then adjusted for mortality improvements using Scale MP-2015.
Update in mortality resulted in decreased liabilities.
Prescription drug short-term trend rate schedule was revised to better reflect future
expectations based on review of published national trend survey data in relation to retiree
health plan offerings. Revised assumption resulted in increase liabilities.
Turnover and retirement assumptions were revised to update the actuarial assumptions for NYS
governmental employers released in 2015. Revised assumption resulted in decreased liabilities.
2017 Valuation:
Per actuarial valuation report—changes in assumptions and methods:
Mortality assumption was revised to the sex-distinct RP-2014 mortality tables, adjusted
backwards to 2006 using Scale MP-2014, and then adjusted for mortality improvements using
the scale MP-2017. The revised assumption resulted in decrease liabilities.
Annual rate of increase in healthcare costs were revised to better reflect future expectations,
including updating long-term rates based on Society of Actuaries long-term healthcare trends
Model v2018_C, with adjustments made based on LMHF expectations for short-term pre-65
medical and Rx Trend. The revised assumption resulted in decrease liabilities.
Rates of turnover and retirement were revised based on 7/1/09 to 6/30/14 experience study
related by the retirement systems for NYS TRS. Revised tables have been used for employees as
of 12/31/17 to better reflect future expectations. Revised assumption results in increase
liabilities.
A delay in Affordable healthcare act excise tax from 2020 to 2022 resulted in decrease liabilities.
Please refer to the attached valuation for further details.
Page 154—Fees for Service expense category is overbudget?
This is due to insufficient funds budgeted to the corporate training program. In 2017,
the program had expenses of $582,149 with a budget of $147,515. The budget for 2018
is $186,000, with current YTD expenses (as of 2.28.18) of $609,372. YTD revenues are
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$477,581, it is anticipated revenues will continued to be collected through 8/31. The
program is profitable and in 2017 generated $205,776 excess revenues over expenses.
Page 169—Vendor inquiry:
PLS III, LLC--$153,750—intercampus shuttle service
BH Photo/Video--$98,325—ITS equipment audio/visual components for smart
classrooms
Page 193-196—What happens to surplus equipment?
Surplus (non-IT equipment); the department will contact maintenance to pick-up. The
equipment is brought to the north campus basement. Erie County personnel periodically come
by to pick through the equipment, anything that the County does not take is scrapped. Funds
that are received from sale of scrap are deposited to an ASC account.
Surplus (ITS equipment); the College has a reverse bid with a company called Maven, who picks
up disposed ITS equipment periodically and provides a certificate of destruction. The College
receives a small percentage of $ for the scrapped equipment and deposits it back into the ITS
budget.
3 Definitions for LMHF from page 5:
Each week, BCBS (medical insurer) and PBD (pharmacy insurer) sends claims invoices to the
LMHF and from this office, we pay those claims to each of the respective carriers. At the end
of the month, BCBS sends us a monthly report evidencing the same, so that we are able to
compare those claims, against what was actually paid. At each monthly LMHF Board meeting,
we present the Board of Directors and Trustees with an account of the financials.
At the top of the report, is the individual group’s maximum (the total amount, per month that
can be spent on claims utilization). At the beginning of the year, rates are set at that maximum.
As you may know, the LMHF is under a Minimum Premium arrangement. There is a per
member, per month rate which sets the max. ECC pays medical claims as they occur, so if a
month happens where there is a surplus, ECC will keep those funds. However, for example: If
ECC has a health surplus through June, but a deficit in July, BCBS can go back and ask to
recover any surpluses that were acquired during prior periods (up to the max) in order to cover
the deficit. The RX account is a little different – the LMHF sends an invoice to ECC for a total
dollar amount, per month, and this office pays claims to PBD from the ECC RX account. If
there are funds left over at the end of the year, ECC will receive those dollars in the form of a
credit against future invoices.
With that being said, here is how to read the monthly report:
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The first section is the income side. What comes into the LMHF.
- Health Admin is invoiced by BCBS and is based on all membership in your population. - Health Max is set by BCBS based on your population (described above - the amount
that ECC will never pay above in any given month for health claims). - RX Premium Max is your RX maximum (the amount that ECC will never pay above in
any given month for RX claims). - RX EGWP Advanced Credit – This is a dollar amount set by PBD that was negotiated
in the rate to offset claims for Medicare Advantage retirees. - RX PBD Advanced Credit – This is the same form of credit but to offset claims for the
Active population.
The next section is what was actually paid:
- Health Admin Paid is the amount billed by BCBS. You will see from the top section “Health Admin”, it is just an in-and-out dollar amount.
- Health Claims Paid are medical claims invoiced and paid. - Stop Loss credit is called out separately to show when credits are received from claims
that have hit the stop loss threshold. These credits are applied to current invoices, as they happen.
- RX claims paid are pharmacy claims billed and paid
The enclosed sections are the health max, against the health claims and surplus or deficit in a
given month or YTD; and the following is the same for the RX.
The overall performance is the health and RX max against the health and RX claims and the
percentage of surplus of deficit.
The very bottom is a running total of rebates that may be used to offset future rate.
4 From page 5, disposal of material:
After speaking with Matt N. in maintenance and Joe L. in ITS that the ITS scrap equipment funds are
coming back to the college budget and maintenance is being deposited to an ASC account for some
reason; I am wondering if the maintenance money should be coming back to the college? Although not a
lot of money, but I believe the funds should be allocated back to the source from which the purchase
was made.
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5 Workday Steering Committee members—Meena Lakhavani, Mike Pietkiewicz, Rick Washousky, Tracey Cleveland, Fabio Escobar, John Elnicky, Nora Clark, George DeRosa, Dan Hocoy, Colleen Quinn, Steven Smith, Penelope Howard, Paul Lamanna
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Auxiliary Services Corporation 4041 Southwestern Blvd. Of Orchard Park, NY 14127
Erie Community College, Inc Phone (716) 851-1260 Fax (716) 851-1261
AUXILIARY SERVICES CORPORATION
QUARTERLY FINANCIAL REPORT DECEMBER 2017 – FEBRUARY 2018
SUBMITTED TO THE FINANCIAL HEALTH SUBCOMMITTEE
OF THE ECC BOARD OF TRUSTEES
Financial summary for the Second Quarter of Fiscal Year 2017/18:
Results of ASC operations for December 2017 through February 2018 indicate a quarterly loss of
$43,685. This is $5095 ahead of the budget for the quarter. Year to date we are operating very
close to budget overall (only down by $5926).
The Business Office revenue for the second quarter is $32,075 less than budget due to decreased
bookstore sales/commissions. Business office expenses are also less than budget by $12,058 due
to obtaining better insurance premiums than we had budgeted for and also receiving a Workers
comp credit from the prior year.
Childcare operations have a positive variance to budget of approximately $33,256 for the second
quarter. This was expected due to the timing of the receipt of the childcare Financial Aid tuition
deferments vs. when they were budgeted.
Food Service sales for the second quarter are below budget by $9849. Several factors
contributed to the lower sales: a snow day closure at South in December, lower than anticipated
sales in the K Kiosk at North in January and February after some classes moved to the STEM
Building, and vending commissions not meeting budget. (The vending commissions will
eventually meet the total annual budget due to minimum guarantees though).
Respectfully Submitted by,
Susan Holdaway
Executive Director of Auxiliary Services
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Auxiliary Services Corporation---2017-2018 Actual Results by Month; YTD Actual, Budget & Variance, Annual Budget.*** YTD
Actual/ 2017-2018Budget Annual
Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug YTD Actual YTD Budget Variance Budget
Business Office (21) & College Support (28) ---Revenues 194,328 81,970 8,313 9,325 124,737 22,022 0 0 0 0 0 0 440,694 443,246 (2,552) 677,204Expenditures 44,054 42,524 50,081 41,976 42,150 37,649 0 0 0 0 0 0 258,434 273,158 (14,724) 535,941College Support 3,651 69,185 39,797 3,563 3,574 4,311 0 0 0 0 0 0 124,080 128,576 (4,496) 165,991Income/(Loss) 146,623 (29,739) (81,565) (36,215) 79,013 (19,938) 0 0 0 0 0 0 58,180 41,512 16,668 (24,728)
Childcare (29) ---Revenues C 33,012 31,368 27,680 27,978 24,257 22,971 0 0 0 0 0 0 167,265 166,659 606 273,679Revenues N 27,223 28,743 28,487 47,265 21,384 23,337 0 0 0 0 0 0 176,440 180,862 (4,422) 324,080Revenues S 19,726 22,665 22,503 23,022 16,665 16,371 0 0 0 0 0 0 120,953 120,158 795 212,971Revenues 79,961 82,777 78,670 98,266 62,306 62,679 0 0 0 0 0 0 464,658 467,679 (3,021) 810,730Expenditures C 39,134 36,102 29,257 25,302 24,190 25,548 0 0 0 0 0 0 179,533 171,639 7,894 280,243Expenditures N 40,806 43,583 37,360 29,706 30,181 34,287 0 0 0 0 0 0 215,922 218,742 (2,820) 353,610Expenditures S 26,677 31,583 25,955 21,320 19,428 22,510 0 0 0 0 0 0 147,473 148,424 (951) 226,491Expenditures 106,617 111,267 92,572 76,328 73,799 82,345 0 0 0 0 0 0 542,928 538,805 4,123 860,344Income/(Loss) C (6,122) (4,734) (1,578) 2,676 67 (2,577) 0 0 0 0 0 0 (12,267) (4,980) (7,287) (6,564)Income/(Loss) N (13,583) (14,839) (8,872) 17,560 (8,798) (10,950) 0 0 0 0 0 0 (39,483) (37,880) (1,603) (29,530)Income/(Loss) S (6,951) (8,918) (3,452) 1,702 (2,762) (6,139) 0 0 0 0 0 0 (26,520) (28,266) 1,746 (13,520)Income/(Loss) (26,656) (28,491) (13,902) 21,938 (11,494) (19,665) 0 0 0 0 0 0 (78,270) (71,126) (7,144) (49,614)
Foodservice (23) --- Revenues C 58,537 54,479 46,537 29,107 33,990 39,986 0 0 0 0 0 0 262,636 261,230 1,406 402,984Revenues N 42,240 51,101 38,218 32,883 25,428 31,371 0 0 0 0 0 0 221,241 232,419 (11,178) 358,079Revenues S 39,621 45,397 32,473 20,852 29,569 28,827 0 0 0 0 0 0 196,739 199,613 (2,874) 319,202Revenues 140,398 150,977 117,228 82,841 88,988 100,184 0 0 0 0 0 0 680,616 693,262 (12,646) 1,080,265Expenditures C 60,990 60,082 49,767 36,979 36,507 46,833 0 0 0 0 0 0 291,157 296,304 (5,147) 457,991Expenditures N 41,399 45,156 35,275 34,753 29,889 32,485 0 0 0 0 0 0 218,957 212,511 6,446 323,280Expenditures S 49,107 53,223 44,828 33,403 39,855 38,635 0 0 0 0 0 0 259,053 257,547 1,506 420,932Expenditures 151,497 158,462 129,869 105,136 106,251 117,953 0 0 0 0 0 0 769,167 766,362 2,805 1,202,203Income/(Loss) C (2,452) (5,604) (3,230) (7,872) (2,516) (6,847) 0 0 0 0 0 0 (28,521) (35,074) 6,553 (55,007)Income/(Loss) N 840 5,944 2,944 (1,870) (4,461) (1,113) 0 0 0 0 0 0 2,284 19,908 (17,624) 34,799Income/(Loss) S (9,486) (7,826) (12,355) (12,552) (10,286) (9,808) 0 0 0 0 0 0 (62,314) (57,934) (4,380) (101,730)Income/(Loss) (11,099) (7,486) (12,641) (22,294) (17,263) (17,768) 0 0 0 0 0 0 (88,551) (73,100) (15,451) (121,938)
Combined---Revenues 414,686 315,723 204,211 190,432 276,030 184,885 0 0 0 0 0 0 1,585,969 1,604,187 (18,218) 2,568,199Expenditures 305,818 381,439 312,319 227,003 225,773 242,257 0 0 0 0 0 0 1,694,609 1,706,901 (12,292) 2,764,479Income/(Loss) 108,868 (65,715) (108,108) (36,571) 50,257 (57,371) 0 0 (108,640) (102,714) (5,926) (196,280)
CONFIDENTIAL
thru February 28, 2018
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Certified Public Accountants | 280 Kenneth Drive, Suite 100 | Rochester, New York 14623 | 585.427.8900 | EFPRGroup.com
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The College does not have a position designated as the Budget Director.
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There is a significant deficiency among current personnel in regard to knowledge of how the College’s budget has historically been developed.
The College should consider whether other budgeting methodologies would be beneficial in developing a more accurate and fiscally conservative budget.
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The College does not have a position designated as the Associate Vice President of Finance.
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Appendix A – Current Organization Chart and Appendix B – Proposed Organization Chart
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The Bursar is currently at a management level that is part of the Business Manager’s area of responsibility.
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Appendix A – Current Organization Chart and Appendix B – Proposed Organization Chart
6. As part of this review we documented a number of the Finance Office processes and developed accompanying flow charts. As a result of our procedures we noted the following internal control areas that could be strengthened:
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ECC should consider modifying the monthly financial reporting provided to the Financial Health Committee of the Board of Trustees
Financial reporting to the Financial Health Committee does not appear to include metrics or analysis related to ECC’s strategic plan
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IMPLEMENTATION OF ENTERPRISE RESOURCE PLANNING SOFTWARE:
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The Finance Office appears to utilize a large number of part time staff that creates challenges in securing and/or retaining qualified staff.
Appendix A – Current Organizational Chart
The Accounts Payable process is labor intensive and is comprised of mostly manual procedures with little automation.
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Employee expense reimbursements for business related expenses are currently processed by issuing checks through the Accounts Payable function.
The Ellutian Colleague accounting software has limitations that create inefficiencies for the Grants Management function in complying with the financial reporting requirements of the grant’s sponsors.
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The Grants Management function processes check payments for claims related to the use of grant funds, creating some redundancy with the primary Accounts Payable function.
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APPENDIX CErie Community CollegeProcess Flow Chart
Bank Reconciliation of Operating and Payables Account
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APPENDIX DErie Community CollegeProcess Flow Chart
Bank Reconciliation of Payroll Account
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Erie Community CollegeAPPENDIX E
Process Flow ChartPurchasing
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APPENDIX FErie Community College
Vendor MaintenanceProcess Flow Chart
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APPENDIX HErie Community College
Process Flow Chart Grant Administration
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APPENDIX IErie Community CollegeProcess Flow ChartGrant Disbursements
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APPENDIX JErie Community CollegeProcess Flow ChartBursar Cash Receipts
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APPENDIX KErie Community CollegeProcess Flow Chart
Bursar Cash Disbursements
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APPENDIX MErie Community College
Process Flow ChartAccounts Receivable Allowance for Bad Debts
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APPENDIX NErie Community CollegeProcess Flow Chart
Fixed Asset Inventory
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APPENDIX OErie Community College
Process Flow ChartGeneral Ledger Close and Financial Reporting
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DRAFTAS % PRIOR YR TO
2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 OF TOTAL CURRENT YR % ACTUAL ACTUAL ACTUAL BUDGET BUDGET BUDGET CHANGE
TUITION & FEES
TOTAL STUDENT TUITION 43,056,822$ 42,623,632$ 42,256,621$ 43,808,954$ 43,808,954$ 40.3% 0%
CHARGES TO NON-RESIDENTS 1,096,066$ 1,407,317$ 1,324,441$ 1,389,967$ 1,389,967$ 1.3% 0%
STUDENT SERVICE FEES 10,864,702$ 10,824,095$ 10,948,141$ 10,775,372$ 10,775,372$ 9.9% 0%
TOTAL TUITION & FEES 55,017,590$ 54,855,044$ 54,529,203$ 55,974,293$ 55,974,293$ 51.5% 0%
Estimating flat tuition and fees and FTE from 18 to 19, holding T&F's at 18 rates
OTHER SPONSORED PROGRAMS 740,170$ 718,617$ 1,348,884$ 798,000$ 950,000$ 0.9% 19%
STATE AID 31,643,706$ 31,168,854$ 30,451,742$ 30,301,393$ 30,605,205$ 28.2% 1%$100 per FTE increase, moved from $2,747 to $2,848 per FTE
SPONSOR'S CONTRIBUTIONS 17,554,317$ 20,054,317$ 18,945,074$ 18,054,317$ 18,554,317$ 17.1% 3%
per conversation with County Budget and Management Director, shifting $360,000 of $1.8 mill equipment fund to MOE
CHARGES TO OTHER COUNTIES 1,223,829$ 1,591,351$ 1,645,567$ 1,500,000$ 1,500,000$ 1.4% 0%
HOUSING -$ -$ -$ -$ 812,500$ 0.7%
Canisius College Rental, 65 beds, $12,500 annual cost - apartment bed, meal plan, access to student facilities, residential staff to manage
OTHER SOURCESINTEREST 29,671$ 30,843$ 70,825$ 31,000$ 60,000$
RENTAL INCOME -$ -$ 81,407$ 455,000$ 100,000$ Holding estimated rental income to 17 plus 20% growth
MISCELLANEOUS 1,121,740$ 612,677$ 84,323$ 60,260$ 60,000$ TOTAL 1,151,411$ 643,520$ 236,555$ 546,260$ 220,000$ 0.2% ‐60%
TOTAL ANNUAL OPERATING REVENUES 107,331,023$ 109,031,703$ 107,157,023$ 107,174,263$ 108,616,315$ 100.0% 1%
FUND BALANCE USE 4,625,864$ 616,192$ -$ 3,671,721$ 2,969,489$ 2.7% ‐19% ERP continuation request for funds only
1,250,000$
operating portion of FY 18 fund balance request removed from revenue and expenses estimated
TOTAL REVENUES 111,956,887$ 109,647,895$ 107,157,023$ 109,595,984$ 111,585,804$
ERIE COMMUNITY COLLEGE 2018/2019 PROPOSED BUDGET
DRAFTR E V E N U E S
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AS % PRIOR YR TO2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 OF TOTAL CURRENT YR % ACTUAL ACTUAL ACTUAL BUDGET BUDGET BUDGET CHANGE
TOTAL INSTRUCTIONPersonal Services 31,819,980$ 33,550,824$ 31,619,230$ 31,327,612$ 32,251,614$ 28.9% 3%Equipment 239,146$ 235,715$ 199,855$ -$ 200,000$ 0.2% 100%
Contractual Expenses 1,757,943$ 1,809,611$ 4,563,557$ 1,352,448$ 4,563,557$ 4.1% 237% aligning expenses to function supportedEmployee Benefits 12,125,358$ 11,572,798$ 11,392,181$ 15,121,488$ 15,575,133$ 14.0% 3%
TOTAL 45,942,427$ 47,168,948$ 47,774,822$ 47,801,548$ 52,590,303$ 47.1% 10%
NON-CREDIT & NON-STATE AIDABLEPersonal Services 267,791$ 409,827$ 193,496$ 389,890$ 299,366$ 0.3% -23%Equipment -$ -$ -$ -$ -$ 0.0% 0%Contractual Expenses -$ -$ 347,039$ -$ 353,979$ 0.3% 100%Employee Benefits 28,146$ 26,615$ 24,306$ 77,978$ 76,535$ 0.1% -2%
TOTAL 295,937$ 436,442$ 564,841$ 467,868$ 729,880$ 0.7% 56%
ACADEMIC SUPPORTPersonal Services 3,376,715$ 3,375,553$ 3,015,645$ 3,431,126$ 3,126,958$ 2.8% -9%Equipment 63,367$ 45,136$ 27,646$ 213,750$ 37,646$ 0.0% -82%Contractual Expenses 298,174$ 296,566$ 239,777$ 323,077$ 244,572$ 0.2% -24%Employee Benefits 1,384,282$ 1,352,390$ 1,226,088$ 1,684,396$ 1,288,620$ 1.2% -23%
TOTAL 5,122,538$ 5,069,645$ 4,509,155$ 5,652,349$ 4,697,796$ 4.2% -17%
LIBRARIESPersonal Services 1,207,985$ 1,283,686$ 1,274,556$ 1,294,285$ 1,300,048$ 1.2% 0%Equipment -$ 23,670$ -$ -$ 35,000$ 0.0% 100%Contractual Expenses 390,016$ 408,299$ 408,840$ 380,485$ 417,017$ 0.4% 10%Employee Benefits 521,308$ 521,752$ 500,634$ 635,386$ 515,653$ 0.5% -19%
TOTAL 2,119,309$ 2,237,407$ 2,184,031$ 2,310,156$ 2,267,717$ 2.0% -2%
STUDENT SERVICESPersonal Services 7,563,257$ 7,999,954$ 7,636,183$ 8,380,681$ 7,890,906$ 7.1% -6%Equipment 50,710$ 25,825$ 14,231$ -$ 35,000$ 0.0% 100%Contractual Expenses 2,307,475$ 2,235,348$ 2,037,265$ 2,202,446$ 2,246,495$ 2.0% 2%Employee Benefits 3,293,947$ 3,251,293$ 3,135,453$ 4,114,214$ 3,281,016$ 2.9% -20%
TOTAL 13,215,389$ 13,512,420$ 12,823,131$ 14,697,341$ 13,453,418$ 12.1% -8%
MAINTENANCE & OPERATION OF PLANTPersonal Services 5,780,103$ 5,713,100$ 5,498,818$ 4,482,159$ 4,616,624$ 4.1% 3%Equipment 145,715$ 258,004$ 490,929$ 175,000$ 550,000$ 0.5% 214%
Contractual Expenses 10,515,714$ 6,233,054$ 5,512,974$ 5,508,600$ 5,500,000$ 4.9% 0%(includes Fund Balance use for ERP implementation of $2.9 mill)
Employee Benefits 2,839,682$ 2,588,118$ 2,340,490$ 2,200,366$ 2,288,381$ 2.1% 4%TOTAL 19,281,214$ 14,792,276$ 13,843,210$ 12,366,125$ 12,955,004$ 11.6% 5%
GENERAL ADMINISTRATIONPersonal Services 3,095,658$ 3,115,479$ 2,978,353$ 3,134,690$ 3,134,690$ 2.8% 0%Equipment 164,429$ 10,413$ 149,046$ 253,000$ 150,000$ 0.1% -41%Contractual Expenses 3,177,283$ 3,432,207$ 945,879$ 4,166,567$ 2,414,255$ 2.2% -42%Employee Benefits 1,344,967$ 1,316,469$ 1,170,715$ 1,538,871$ 1,538,871$ 1.4% 0%
TOTAL 7,782,337$ 7,874,568$ 5,243,993$ 9,093,128$ 3,953,126$ 3.5% -57%
GENERAL INSTITUTIONALPersonal Services 3,761,358$ 4,109,536$ 4,112,882$ 3,270,597$ 3,540,009$ 3.2% 8%Equipment 1,085,544$ 778,006$ 892,549$ 1,158,250$ 432,354$ 0.4% -63%Contractual Expenses 5,589,713$ 5,909,782$ 5,033,194$ 6,366,395$ 6,381,506$ 5.7% 0%
Employee Benefits 7,761,122$ 7,758,865$ 6,998,585$ 6,662,228$ 7,300,000$ 6.5% 10%(retiree healthcare included here, $5.6 mill estimated)
TOTAL 18,197,737$ 18,556,189$ 17,037,209$ 17,457,470$ 17,653,869$ 15.8% 1%
TOTAL COSTS
APPROPRIATIONS
ERIE COMMUNITY COLLEGE 2018/2019 BUDGET
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Personal Services 56,872,847$ 59,557,959$ 56,329,163$ 55,711,040$ 56,160,215$ 50.3% 1%Equipment 1,748,911$ 1,376,769$ 1,774,256$ 1,800,000$ 1,440,000$ 1.3% -20%Contractual Expenses 24,036,318$ 20,324,867$ 19,088,522$ 20,050,018$ 22,121,381$ 19.8% 10%Employee Benefits 29,298,812$ 28,388,300$ 26,788,450$ 32,034,927$ 31,864,209$ 28.6% -1%
GRAND TOTAL 111,956,888$ 109,647,895$ 103,980,391$ 109,595,985$ 111,585,804$ 100.0%
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2019 Capital Budget Request
Department: Business Area: 122Contact :Phone: Email:
Project Name:Rank: 1 of 2 Business Area in which Project will be Budgeted: 122
College-wide Improvements and Renovations
The Capital Projects Committee is beginning its review of capital projects for inclusion in the 2019 Erie County Budget and Capital ImprovementProgram. To submit a proposal for review, please complete this form and return one (1) paper copy to the Capital Projects Committee via Julie Barry,Deputy Commissioner of Environment and Planning NO LATER THAN Friday, April 6, 2018. You must also submit an electronic version (excel file) ofeach request to Scott Bylewski, Deputy Budget Director via email at [email protected]. Please do not submit additional documentation at thistime. Detailed cost estimates with back-up will be required at the time of your meeting to review your requests with the Capital Projects Committee. Anyquestions concerning this form should be directed to Scott Bylewski at (716) 858-2715.
Erie Community CollegePenelope G. Howard851-1700 [email protected]
Project Description (include project timeline) NOTE: Construction for the 2019 phase of a project must be complete within three years. You must also be ready to commence your project in 2019.
Continue multi-year phased capital improvements to the College's City, North and South campus buildings, which will include, but not limited to, (a) Exterior Building Envelope Rehabilitation work including but not limited to repair and/or replacement of roofs, masonry, doors, windows and exterior facades; (b) Mechanical, Electrical and Plumbing work including but not limited to power, lighting, communications, energy consumption, plumbing, mechanicals, fire alarm systems, HVAC, backup generators and miscellaneous items; (c) Site work infrastructure improvements including but not limited to road, parking lot, lighting, signage, drainage, sewer, sidewalk, ADA Accessible ramps and curb replacement and repairs as necessary; (d) Life Safety and Code Compliance upgrades and repairs to miscellaneous building components and including the competition pool as necessary to address issues involving ADA, electrical, life safety, environmental and/or asbestos abatement compliance; and other miscellanous items.
Statement of Need:Many of the College's buildings are greatly in need of exterior repairs and maintenance. (a) The building exteriors require repairs to keep them from further deteriorating and causing major environmental issues. Preserving the exterior envelope of the buildings will help improve energy performance and reduce maintenance, operational and energy costs; and preserve the structures for a longer useful life. At North Campus, 88,500 square footage of roof replacement or recoating are still needed. Buildings K,G and L are in need of window and door replacements. (b) The existing HVAC (Heating, Ventilation, Air Conditioning), plumbing (including fuel piping), fire detection and electrical systems in various College buildings are over 30 years in age and are beyond their useful life and must be replaced. The systems operate at reduced capacity and efficiency and at reduced safety levels for electrical systems, especially for fire protection. New systems will reduce the College's maintenance, operational and energy costs. Since 2014, the College has expended in excess of $9.4 million from its operating budget for
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MEP related work. (c) Campus roads and parking lots are generally poor condition reflecting their age. Potholes, cracks, and deteriorated curbing and sewer drains are evident and in need of repair/replacement. The resulting undermining is causing large sink holes throughout the campus. It is estimated replacement/repair of the roadways, parking lots, catch basins and sidewalks would cost $14,765,000 today. The college expended in excess of $3.4 million from its operating budget in the last 6 years. Furthermore, there has been a rise in insurance claims due to disrepair and a hike in the premium. (d) The NY State Education Department of Civil Rights has directed the College with a Letter of Findings identifying several non ADA code‐compliant issues that involve toilet rooms, signage, parking, ramps, concrete curbs that are strongly recommended to be addressed by 2020. In addition, life safety issues has been identified at the Athletic Center's competition pool which will require resurfacing and ADA compliant pool lift
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Status of Plans and Site Control:
Financial Overview
Capital Project Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 62019 2020 2021 2022 2023 2024 Total Project
Total Project Cost 13,500,000 13,500,000 13,500,000 13,500,000 13,500,000 13,500,000 81,000,000
RevenueState - Federal - Other -
- Total Non County Revenue - - - - - - -
County Share 13,500,000 13,500,000 13,500,000 13,500,000 13,500,000 13,500,000 81,000,000
Revenue Description Estimated Financial Impact on Annual BasisFees, Fines or chargesState ReimbursementOther Revenue
ExpensePersonnel RelatedSuppliesMaintenance and RentUtilitiesOther
For DPW PROJECTS only - Rating of bridge and traffic count of the road:
Indicate below whether the project is ready to go (construction plans, etc.) and if applicable, are there any "site control" issues, i.e. does the County own the land, is it under some kind of lease, etc.
The work has been started with previous county provided funding and is a continuation of rehabilitation of the various buildings and features. There are no site control issues.
Funding request: Indicate in the chart below, Phase 1 of the project (2019 budget) and any additional cost that may be required for additional phases of the project from 2019-2024. Include revenue estimates where applicable. *Chart below contains formulas
Impact on the Operating Budget: Summarize below, in general categories, how completion of the project will have either a positive or negative impact on the operating budget. Describe the nature of the item and provide cost estimates if reasonable.
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2019 Capital Budget Request
Department: Business Area 122Contact :Phone: Email:
Project Name:Rank: 2 of 2 Business Area in which Project will be Budgeted: 122
College-wide Equipment
The Capital Projects Committee is beginning its review of capital projects for inclusion in the 2019 Erie County Budget and Capital ImprovementProgram. To submit a proposal for review, please complete this form and return one (1) paper copy to the Capital Projects Committee via Julie Barry,Deputy Commissioner of Environment and Planning NO LATER THAN Friday, April 6, 2018. You must also submit an electronic version (excel file) ofeach request to Scott Bylewski, Deputy Budget Director via email at [email protected]. Please do not submit additional documentation at thistime. Detailed cost estimates with back-up will be required at the time of your meeting to review your requests with the Capital Projects Committee. Anyquestions concerning this form should be directed to Scott Bylewski at (716) 858-2715.
Erie Community CollegePenelope G. Howard851-1700 [email protected]
Project Description (include project timeline) NOTE: Construction for the 2019 phase of a project must be complete within three years. You must also be ready to commence your project in 2019.
For the past several years all equipment purchased by ECC has been funded by Erie County as a capital project. After multiple conversations with Robert Keating, Erie County Director of Budget and Management, the college requests the conversion of $360,000 of the previously capital annual funding of $1,800,000 be converted to maintenance of effort funding for annual operations, and the remaining balance of $1,440,000 to remain capital for the acquisition of various equipment including vehicles, buildings and grounds equipment, and technology related capital needs, as well as furniture and fixtures.
Statement of Need:Equipment, especially related to technology, requires continuous reinvestment in order to provide the learning environment to offer excellent education experience for students.
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Status of Plans and Site Control:
Financial Overview
Capital Project Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 62019 2020 2021 2022 2023 2024 Total Project
Total Project Cost 1,440,000 1,440,000 1,440,000 1,440,000 1,440,000 1,440,000 8,640,000
RevenueState - Federal - Other -
- Total Non County Revenue - - - - - - -
County Share 1,440,000 1,440,000 1,440,000 1,440,000 1,440,000 1,440,000 8,640,000
Revenue Description Estimated Financial Impact on Annual BasisFees, Fines or chargesState ReimbursementOther Revenue
ExpensePersonnel RelatedSuppliesMaintenance and RentUtilitiesOther
For DPW PROJECTS only - Rating of bridge and traffic count of the road:
Indicate below whether the project is ready to go (construction plans, etc.) and if applicable, are there any "site control" issues, i.e. does the County own the land, is it under some kind of lease, etc.
The annual capital allocation is spent down by ECC throughout the year and reimbursed by the county upon submission of equipment invoices totaling $1.8 million. There are no site control issues.
Funding request: Indicate in the chart below, Phase 1 of the project (2019 budget) and any additional cost that may be required for additional phases of the project from 2019-2024. Include revenue estimates where applicable. *Chart below contains formulas
Impact on the Operating Budget: Summarize below, in general categories, how completion of the project will have either a positive or negative impact on the operating budget. Describe the nature of the item and provide cost estimates if reasonable.
Changing $360,000 to maintenance of effort revenue 360,000
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