Standard Nine: Financial Resources
The institution has adequate financial resources to achieve, maintain, and enhance its programs and services. The level of financial resources provides a reasonable expectation of financial viability and institutional improvement. The institution manages its financial affairs with integrity, consistent with its educational objectives.
Committee for Standard Nine
Steven Bundy, Counselor (Chair)
Sharon
Davidson, Administrative Assistant
Jennifer Duldulao, Instructional Assistant
James Forcier, Business Faculty
James Landre, Mathematics Faculty
Edralin Maduli, Vice President of Business Services
Gilberto Victoria, Counselor
Nancy Wright, Counselor
9A.1 Financial planning supports institutional goals and is linked to other institutional planning efforts.
DESCRIPTIVE SUMMARY
In response to a recommendation from the last accreditation (9.1), Las Positas College (LPC) has developed and implemented a formal process for documenting and validating the link between budgeting and institutional planning. This process ensures that the College mission, goals, and objectives are being funded through the budget development process.
The intent has been to increase the role and responsibility of the Institutional Planning Committee (IPC) in establishing and reviewing important budget decisions to more closely integrate College planning with budget development and financial decision making. The IPC oversees the implementation and continued evolution of the recently developed College Strategic Plan, (9.2) and for ensuring that other College planning and decisions concerning resource allocation, staffing, and program development are integrated with the Strategic Plan, and consistent with overall College goals.
The College Budget Study Group (CBSG) includes administrators, faculty, classified staff, and students, and approves basic budget assumptions that are developed each year. Responsibility for College financial planning is shared between the IPC and the CBSG. Interviews with representatives from these two planning groups revealed a concern about the need for greater communication and coordination between the groups.
The IPC is a representative committee on campus wherein all major organizational decisions are reviewed, evaluated, and studied. The roles and responsibilities of the IPC that interface with financial budget planning include facilities, equipment and technology planning; institutional staffing; program review; and institutional planning. The Academic and Classified Senates appoint members of this committee with equal representation from each of the four College divisions. Students and administrators are also represented on the IPC. Committee members communicate to their respective divisions and constituencies to ensure significant input with respect to committee discussions and decisions. Specific documented processes have been established by the IPC for new faculty and classified staff position hiring, equipment replacement, and allocation of special funds to ensure that the planning process is integral to the budget development process. (9.3 and 9.4)
The IPC reviews overall goals established by the Board of Trustees. The committee then determines goals and budget priorities for the College through an input consultation process with each division. LPC has developed an institutional process wherein each division develops a yearly activity plan setting specific goals, activities, required resources and anticipated outcomes. This process enables each division to develop ownership and accountability for their own goals and activities. Each division establishes budget priorities for expenditure of onetime monies and Partnership For Excellence (PFE) funds for new faculty and classified staff hiring, equipment replacement and other instructional needs.
The IPC reviews and prioritizes all of the expenditure requests from each division and prioritizes them. The IPC also prioritizes specific capital outlay projects that have been proposed for funding through state support and a possible local bond initiative. Following prioritization, specific budget recommendations are forwarded to the LPC President. IPC involvement in this process ensures that financial planning and budget development is connected with overall institutional planning.
SELF-EVALUATION
LPC has made a significant effort to integrate financial planning and allocation processes with established institutional goals during the last few years. Specific goals are identified and given funding consideration and priority in each year's budget development process. Special funding resources such as Partnership for Excellence (PFE) and Instructional Equipment grants are used directly to support the priorities established through the overall planning process. Specific budget and planning processes are documented and implemented with the objective of linking and coordinating financial planning with institutional planning efforts.
Responses to the Accreditation Survey indicate that 74 percent of the faculty, staff, and administrators agree with the statement "Financial planning supports institutional goals and is linked to other institutional planning efforts." (9.5)
Survey results also indicate that 72 percent of the faculty, staff, and administrators agree with the statement that the "budget planning process assists in prioritizing the allocation of fiscal resources for programs and services." (9.5)
Feedback
from Division Deans indicates that not all College divisions are
currently developing yearly activity plans that identify specific
goals, related activities, required resources and anticipated outcomes.
This situation needs review to develop a mechanism that ensures that
this process happens for each division on an annual basis.
.
The relationship between the IPC and the CBSG is still somewhat unclear.
These two entities need to increase communication and information sharing
in order to realize more completely the desired objective of having
financial planning directly linked with established institutional goals.
The Strategic Plan must also become the basis for identifying future
College goals and planning priorities.
PLANNING AGENDA
- Increase communication and direct links between the Institutional Planning Committee and the CBSG to ensure that the budget development process is completely integrated with overall institutional planning efforts.
- Use the newly developed Strategic Plan as the basic foundation for future institutional planning and budget allocations.
9A.2 Annual and long-range financial planning reflects realistic assessments of resource availability and expenditure requirements. In those institutions which set tuition rates, and which receive a majority of funding from student fees and tuition, charges are reasonable in light of the operating costs, services to be rendered, equipment, and learning resources to be supplied.
DESCRIPTIVE SUMMARY
The Chabot-Las Positas Community College District (CLPCCD) receives the majority of its funding from state general apportionment revenues. LPC receives operating fund allocations from the CLPCCD through a resource allocation model primarily based on the specific full-time equivalent student (FTES) count. In order to provide for increased budget stability, full-time equivalent faculty salaries and benefits allocated to LPC (based on Weekly Student Contact Hours (WSCH) and Full-Time Equivalent Faculty (FTEF) factors) are taken "off the top" and do not go through the allocation model. A base allocation is taken off the top for each of the four CLPCCD cost centers: Chabot, LPC, District offices and Maintenance and Operations (M&O). The balance of available revenue, excluding required District reserves, flows through the model.
LPC attempts to maximize enrollment-based state revenues by achieving the base level enrollment targets and enrollment growth beyond the minimum level as determined by the state. This revenue combined with additional sources of revenue that include Partnership For Excellence funds, lottery, enrollment fees, categorical non-resident tuition fees, and grants provides funding for the on-going operations of the College. The state sets parameters for the fees a community college can assess its students.
College-wide annual budget plans are developed for on-going operating funds, special one-time monies, and Partnership for Excellence funds. Annual anticipated state revenues are estimated conservatively, based on projected information about the State budget provided by the Chancellor's Office. Expenditure requirements are based on maintaining on-going programs and services designed to meet enrollment targets.
Annual financial planning occurs during the budget development process. The College Business Services Handbook (9.6) describes the overall process. As the current fiscal year budget is being implemented, the following fiscal year budget is in development. The adopted LPC budget calendar shows the monthly major events in the budget process. The development of the annual budget begins with the determination of specific budget assumptions and principles. (9.7) Major items impacting revenues and expenditures are considered. The College Budget Study Group (CBSG) reviews and approves these budget assumptions. The primary assumption is that there will be no deficit spending.
After the budget assumptions have been developed and approved, the position budget worksheets and the preliminary budget worksheets are distributed to the Vice Presidents and Division Deans. These worksheets are reviewed and modified to incorporate budget assumptions and are eventually combined to form a tentative budget for the College. Updates and changes to this tentative budget are continually being made until the budget is finalized.
SELF-EVALUATION
The budget development process provides a thorough annual review of expenditure requirements and identifies, at the initial stages of development, non-discretionary costs such as salaries and benefits, contractual obligations, fixed instructional program costs, utilities and long-term debt. Discretionary budget priorities are established at the division level and prioritized by the IPC that makes recommendations to the LPC President. The budget process effectively identifies one-time revenue sources that are used to fund discretionary expenses that LPC can control and adjust such as staff development, computer and new equipment purchases, and required instructional materials.
Responses to the Accreditation Survey indicate that 68 percent of the faculty, staff, and administrators agree with the statement "Annual and long-range financial planning reflects realistic assessments of resource availability and expenditure requirements." (9.5)
Interviews with classified staff that are directly involved with the ongoing budget management process and the Vice President of Business Services reveal two areas of College financial planning and budget development where changes are probably needed. There is a concern about how much information is provided to all segments of the College about the budget development process and anticipated College expenditures. Some interviewees feel that the current system of budget management and fiscal accountability is overly complicated and burdensome and that some degree of decentralization would provide for more control at the division level.
PLANNING AGENDA
- Develop an effective reporting mechanism that will ensure understandable communication of College budgets and expenditures to all elements of the College community.
- Develop a process for decentralizing budgets and fiscal accountability that will allow College divisions to be responsible for management of assigned fiscal resources within the limits of specified allocations.
9A.3 Annual and long-range capital plans support educational objectives and relate to the plan for physical facilities.
DESCRIPTIVE SUMMARY
LPC has served the Tri-Valley area (Livermore, Pleasanton, Dublin, and Sunol) for many years; however, the campus remains an underdeveloped site. The College must continue to expand and develop new facilities to meet the growing needs its community. LPC has identified its major priorities for program and facility development. These priorities were established in the Educational Master Plan and Five-Year Construction Plan. (9.8) The Master Plan is based on three separate surveys administered to Valley residents, to Valley employees at their work sites, and to College staff. An update of the Master Plan was completed in 1996, and verifies many of the findings included in the initial plan. The IPC reviews annual and long-range capital plans and provides input concerning prioritization of specific projects.
Relying on the priorities identified in the Master Plan, the District Planning Office and LPC staff have identified several priority projects for the campus build-out that are designed to provide enhanced facilities for instruction. The CLPCCD Five-Year Construction Plan (9.9) describes these projects that include the Physical Education Complex (Phase 1), a Multi-Disciplinary Education Building, the Science/Technology Center (Phase 2), the Child Development Center, and the Fine Arts Complex. All of these planned facilities are tied directly to the educational objectives and student support needs of the institution. LPC also needs a maintenance and operations facility for custodial supplies, grounds equipment, warehouse space, and receiving-distribution space.
SELF-EVALUATION
LPC is underdeveloped overall and must continue advancing toward establishing itself as a full-service College with balanced instructional programs and facilities that will meet the needs of the rapidly growing student population. The District Five-Year Construction Plan (9.9) addresses specific achievable objectives that will improve LPC physical facilities and directly support instructional goals and needs. The College has an established process for long-range capital planning that supports identified educational objectives.
Responses to the Accreditation Survey indicate that 71 percent of the faculty, staff, and administrators agree with the statement "Annual and long-range capital plans support educational objectives and relate to the plan for physical facilities." (9.5)
9A.4 Institutional guidelines and processes for financial planning and budget development are clearly defined and followed.
DESCRIPTIVE SUMMARY
Allocation of ongoing operating funds for LPC is based on the CLPCCD approved revenue allocation model. (9.10) This model defines the guidelines and processes that govern the specific yearly allocation of operating funds. The revenue allocation model was recently modified to fund full-time equivalent faculty salaries and benefits off the top. Fiscal year funding is currently based on a 490 WSCH/FTEF for LPC. A base allocation to each of the four cost centers is also taken off the top. The balance of monies that flow through the model is allocated by percentage or are split into site specific, categorical or consensus dollars.
Budget allocation of special one-time monies, including Partnership For Excellence funds and instructional equipment block grant funds follows specific procedures. Proposals for allocation of these funds are developed at the division level and submitted to the IPC for prioritization and funding.
Ongoing financial planning and budget development is a primary responsibility of the Vice-President of Business Services. Each College division develops yearly budget proposals with respect to ongoing operating funds following specific guidelines. These guidelines include budget calendar deadlines, revenue projections, basic budget assumptions, and budget justification worksheets. Faculty and staff have opportunity for budget input throughout this process.
SELF-EVALUATION
The established guidelines for financial planning and budget development are specifically delineated. The processes allow management, faculty and classified staff to identify cooperatively specific program needs and to develop an effective operating budget. The budget process allows for an ongoing examination by all interested parties to verify that guidelines are being followed.
Responses to the Accreditation Survey indicate that 58 percent of the faculty, staff and administrators agree with the statement "Institutional guidelines and processes for financial planning and budget development are followed." Survey results also indicate that that only 46 percent of the faculty, staff and administrators agree with the statement "Institutional guidelines and processes for financial planning and budget development are clearly defined." (9.5) This finding suggests a lack of understanding by a large segment of LPC employees with respect to the established guidelines.
PLANNING AGENDA
- Develop strategies for increasing administrator, faculty, and classified staff and student understanding of financial planning and budget development guidelines and improve communication processes with faculty and classified staff concerning budget development progress so that specific faculty concerns can be addressed at the appropriate time.
9A.5 Administrators, faculty and support staff have appropriate opportunities to participate in the development of financial plans and budget.
DESCRIPTIVE SUMMARY
Administrators, faculty and classified staff have a variety of opportunities to participate and become involved in the financial planning and budget development process. At the division level all staff have opportunity for input with respect to budget requests developed for possible new faculty and classified positions, equipment replacement, and other program needs. Opportunity exists for all staff to develop and submit specific funding proposals as part of the ongoing budget process. Requests for funding from sources such as PFE or special block grants can be initiated by staff at the program and division level.
Overall financial planning is based upon the Educational Master Plan and established College institutional goals and priorities. Responsibility for financial planning is shared between the IPC and the CBSG. Both committee structures allow for faculty and classified staff representation from each division, ensuring the opportunity for input from all areas and constituent groups. Faculty, classified staff, and administrators usually represent their specific program or division in person when budget requests are presented to the IPC.
SELF-EVALUATION
Appropriate opportunities exist for all interested staff to participate directly and indirectly in the financial planning and budget process at LPC. Both the IPC and the CBSG have representation from every sector of the College. Responses to the Accreditation Survey indicate that 66 percent of the full-time faculty agree with the statement "Faculty are provided with adequate opportunity to participate in the budget process." (9.5)
Concern exists about the extent of faculty information about the progress of overall College budget development. Survey results indicate that only 42 percent of full-time faculty agree with the statement "Faculty are adequately informed regarding progress in development of the College budget." There would also appear to be faculty concern about budget input. Survey results indicate that only 37 percent of full-time faculty agree with the statement "Faculty concerns regarding budget matters are adequately addressed during the appropriate phase of the budget process." (9.5) These results may reflect the fact that some faculty committee representatives do not keep their division colleagues completely and fully informed of budget development and financial planning decisions.
Classified staff have fewer concerns about budget development process. However, survey results indicate that only 46 percent of classified staff agree with the statement "Classified staff concerns regarding budget matters are adequately addressed during the appropriate phase of the budget process." (9.5)
9B.1. The financial management system creates appropriate control mechanisms and provides dependable and timely information for sound financial decision-making.
DESCRIPTIVE SUMMARY
Financial management has been established to control and report upon financial resources at many levels. These levels include the following:
- The Board of Trustees has final responsibility for approving CLPCCD funding to the College and the specific College budget. At regular board meetings, the Board approves current purchase orders, contracts, expenditures, and personnel changes. The Board also approves any change to the allocation of funding to the College.
- The LPC President is responsible for the overall development and management of College financial resources.
- The IPC determines the overall outcomes of the College on a two-year basis, based on goals established by the Board of Trustees.
- The CBSG reviews the District allocation of funds, recommends changes in budget procedures, and reviews budget assumptions established each year.
- The Vice President of Business Services prepares LPC financial reports, monitors the status of the budget and provides current analysis for fiscal control of all expenditures.
- The vice presidents, deans, directors and other managers monitor specific budgetary responsibilities using regularly updated, online expenditure and budget reports.
- The District Budget Study Committee and Reserves Subcommittee review the CLPCCD budget, current status of expenditures, and reserve levels to recommend any overall changes necessary to insure fiscal stability.
SELF-EVALUATION
Financial controls are firmly in place within the levels of administration at LPC. These administrative levels report and overlap through co-committees, and integrate adequate financial software into timely and dependable fiscal information.
9B.2 Financial documents, including the budget and independent audit, reflect appropriate allocation and use of financial resources to support institutional programs and services. Institutional responses to external audit findings are comprehensive and timely.
DESCRIPTIVE SUMMARY
The Fiscal Services department at the CLPCCD office maintains all financial systems and accounting services to LPC and the District as a whole. The District Enterprise Information Technology Services Department, located at Chabot College, maintains the District accounting and financial management system. The system provides for online/real-time input of financial transactions, financial management information, and ad hoc reports.
The District applies its control features to the LPC budget, accounting, receipts and disbursement procedures to ensure accuracy and financial stability. The College develops ad hoc reports using the District database to provide real-time data to responsible administrators.
An independent auditor conducts an annual audit of CLPCCD financial statements and related supplemental information. This includes evaluating the District system of internal control and compliance with state and federal code requirements. The audit for the year ending June 30, 2001 had no findings that indicate any specific problems. The independent auditor reviews each entity within the District, and also evaluates the financial condition of the District as a whole. The District does not initiate regular internal audits. The District responds to the independent auditor's recommendations in a timely manner and LPC responds to any recommendations that filter down from the District.
LPC maintains control over its allocated funds and budgeted expenditures in the Office of Business Services. Each budget is monitored by its manager to provide reasonable accounting control. The CBSG annually reviews the budget and periodically reviews ongoing expenditures.
Funds allocation is by fixed formula (9.10) and is reviewed annually by the District Budget Study Group that includes fair representation from LPC. The CBSG makes recommendations to the DBSG as needed.
SELF-EVALUATION
With District controls and College review, the budget reflects appropriate allocation and use of funds at LPC. Though the College does not directly respond to the independent auditor's findings, it does adequately respond to those passed on by the District.
9B.3 The institution practices effective oversight of finances, including management of financial aid, externally funded programs, contractual relationships, auxiliary organizations or foundations, and institutional investments.
DESCRIPTIVE SUMMARY
The Vice President of Business Services oversees LPC fiscal affairs. The College Administrative Assistant and College Business Office Supervisor report directly to the Vice President. All auxiliary accounts and the records for general and categorical fund accounts are reported directly to the Vice President. Budget reports concerning general and categorical funds are provided monthly to each department. Each auxiliary organization, like Associated Students of Las Positas College (ASLPC), has its own account and statements are sent to appropriate program managers each month. The Office of Business Services produces balance sheets, income and expense reports and budget variance reports for each auxiliary account.
College fiscal affairs follow federal, state, and District regulations and guidelines. The College also holds to the standards set forth by the Government Accounting Standards Board (FASB0). An independent auditor audits both the general fund and auxiliary accounts annually.
All contractual agreements financially binding the CLPCCD through LPC are approved through the College Office of Business Services, reviewed by the Vice Chancellor for Fiscal Services, and sent to Board of Trustees for final approval.
The CLPCC Foundation is separately incorporated and overseen by its own Board of Directors. The Foundation seeks additional avenues for the investment of funds. A subcommittee of the Foundation Board of Directors meets quarterly to provide supervision and evaluation of the various investment decisions.
SELF-EVALUATION
Policies and procedures governing finances at LPC are sound. Separation of duties between departments and individuals within them provides for internal controls against errors and misuse of funds. The fact, for example, that disbursement requests require multiple signatures and that disbursement officers are different from funds requestors are both strong safeguards against misuse of financial resources. On the other hand, the disbursement process is often too slow, and vendors have to wait too long for their money. The District and LPC should study ways to speed up processes without loss of accountability.
9B.4 Auxiliary activities and fund raising efforts support the programs and services of the institution, are consistent with the mission and goals of the institution, and are conducted with integrity.
DESCRIPTIVE SUMMARY
Currently a joint foundation, the CLPCCD Foundation supports the scholarship efforts of Chabot College and LPC. This foundation is limited to investing monies for scholarships and handles disbursements. Because of the limitations on fund raising efforts under the current foundation, LPC is creating its own separate foundation that will raise funds for any and all projects that support the College. Both the current and proposed foundations are designed to support the programs, services, missions and goals of the College.
Other auxiliary services raise funds for the College. These include the food services, the bookstore, and campus advertising, associated primarily with the physical education department. Funds from these services support the ASLPC, student clubs, and College services that enhance campus life for students. Some of this money is set aside for capital projects such as the new Student Center. Auxiliary fund accounts are maintained by the Office of Business Services and administered in accordance with LPC and District policies. Activities and fund raising efforts of these auxiliaries support the programs, services, missions, and goals of LPC.
SELF-EVALUATION
The District foundation has done a commendable job investing donated scholarship funds. Campus auxiliaries supported the development of the new Student Center. Since the goals of the CLPCCD Foundation are not broad enough to support the full spectrum of the LPC mission and goals, monies have not been available for many worthwhile projects such as purchase of library books, additional funds for campus productions, or any capital campaigns. The LPC Foundation now under development will have a wider purpose and should enable the campus to raise funds that will meet and support efforts more specific to LPC.
PLANNING AGENDA
- Institutionalize the current plan to establish a separate College foundation and ensure that the new foundation supports College services, missions, and goals.
9B.5 Contractual agreements with external entities are governed by institutional policies and contain appropriate provisions to maintain the integrity of the institution.
DESCRIPTIVE SUMMARY
District
policies require that all contractual agreements conform to established
procedures and be reviewed at the district level by the Vice Chancellor
of Business Services before being forwarded to the Board of Trustees.
Contracts that relate directly to the College are reviewed by the
LPC Vice President of Business Services and, if necessary, by the
LPC President before being forwarded to the District.
The LPC Vice President of Business Services is responsible for determining
the validity, accuracy, and appropriateness of all contracts and agreements,
prior to review by the Vice Chancellor of Fiscal Services for recommendation
to the Board of Trustees.
SELF-EVALUATION
The CLPCCD adheres to the policies and procedures regarding contractual agreements and conforms to additional policies adopted by the Board of Trustees.
9B.6 Financial Management is regularly evaluated, and the results are used to improve the financial management system.
DESCRIPTIVE SUMMARY
In exercising its fiduciary responsibilities, the LPC President and staff, in cooperation with appropriate district staff, regularly review the fiscal policies and standards of the College. Necessary changes are reviewed by the DBSG before forwarding to the Board for final review and approval. An independent auditing firm retained by the District conducts annual audits of the District funds. Additionally, various entitlement programs, such as financial aid, Extended Opportunity Programs and Services (EOPS), Vocational and Technical Education Act (VTEA), and CalWORKS, are audited on regular cycles based on the standards of their supporting entities. Recommendations made by the auditing firm and the entitlement auditors are reviewed and responded to by the responsible program managers. Recommendations by the auditing firm are sent directly to the Board of Trustees. The Vice Chancellor for Fiscal Services coordinates implementation under the direction of the Board of Trustees.
SELF-EVALUATION
Since Alameda County has responsibility for warrants and all fiscally related issues, it provides an internal auditor to the CLPCCD and LPC each year. In addition, the District retains an outside firm each year to conduct an overall audit.
9C.1 Future obligations are clearly identified and plans exist for payment.
DESCRIPTIVE SUMMARY
LPC has two current long-term debt obligations. The overall amount of long-term debt associated with these obligations is relatively small.
In Fall 1995, LPC added a new modular classroom building (2200) that replaced offsite classroom space at Hacienda Business Park. This building was funded through the issuance of Certificates of Participation (COPS), repayable within seven years at $272,000 per year. The College will complete final payment of this obligation in December of 2002.
The second College obligation is the leasing of computers with Gateway, Inc. LPC is currently in the first year of a three-year contract with a two-year refresh; the cost is $140,000 per year. Monies to cover this lease expenditure come from special state-funded instructional equipment block grants.
A major
long-term financial obligation exists at the district level concerning
medical benefits for retired district employees. The District provides
retiree medical benefits to classified staff hired before 1984 and
certificated employees hired before April 1, 1986. This obligation
is referred to as the RUMBL fund (Retiree Unfunded Medical Benefit
Liability). Expenditures to this fund will continue to increase as
medical costs rise and more eligible staff shift to retirement status
and become eligible for benefits. Based on the results of a recent
audit, annual transfer to this fund was increased by $300,000 for
the fiscal year 2001-02 to prevent the fund from declining due to
increased medical costs.
SELF-EVALUATION
Current methods of identifying future obligations and planning for their payment are effective. All future obligations that impact LPC are identified and documented in plans and projections maintained by LPC and the CLPCCD.
9C.2 The institution has policies for appropriate risk management.
DESCRIPTIVE SUMMARY
LPC has a comprehensive insurance risk management program with property and casualty insurance through the Statewide Association of Community Colleges (SWACC). (9.11) The current coverage level has a limit of $5,000,000. The liability claims self-insured retention is $25,000. Schools Excess Liability Fund (SELF) covers excess liability beyond the amount carried with SWACC in the amount of $15,000,000. Worker's Compensation coverage is carried through the Alameda County Schools Insurance Group. Student accident insurance is covered through North Atlantic Life Insurance Company and brokered and administered through Student Insurance of Los Angeles.
SELF-EVALUATION
The College is effectively insured and has adequate policies in place for appropriate risk management.
9C.3 Cash flow arrangements or reserves are sufficient to maintain stability.
DESCRIPTIVE SUMMARY
After the yearly budget is finalized and approved by the Board, all projected expenditures and confirmed federal, state, and other funding are analyzed to establish a projected cash flow for the District during the current budgeting period. When cash flow imbalances occur due to timing differences between the receipt and expenditures of funds, the District employs Tax and Revenue Anticipation Notes (TRANS) to cover shortages. The TRANS program is very attractive because of the low cost of borrowing funds. Any existing surplus funds are placed into interest-bearing accounts. Cash management function is the primary responsibility of the CLPCCD and is performed at the direction of the Vice Chancellor of Business Services.
The District maintains a minimum reserve of five percent of its total budget at all times and has set aside special reserves accounts for projected health and benefit costs.
LPC has secondary responsibility for cash management and is accountable for the management of all funds allocated to it through the District revenue allocation model, internally and externally generated funds, and auxiliary accounts. All requests for expenditures are compared to available funds by line item and object code to provide financial controls and to ensure that funds are allocated in the most effective and efficient manner. Controls are implemented at the department level and progress to the Vice President of Business Services.
Reserves at the College are maintained in a line item holding account. Responsibility for cash management rests with the Vice President of Business Services and is delegated to administrators and supervisors with line item responsibility.
SELF-EVALUATION
LPC operates in accordance with generally accepted accounting principles with regard to cash flow. The CLPCCD annual budget parameters require maintaining the five percent minimum reserve standard of the California State Chancellor's Office. The District will continue with the Community College League TRANS program to ensure against periodic cash flow deficits.
9C.4 The institution has a plan for responding to financial emergencies or unforeseen occurrences.
DESCRIPTIVE SUMMARY
LPC has a plan for responding to financial emergencies and unforeseen occurrences that includes the insurance programs previously referenced and the overall budget development process that allows for establishment of contingency reserves. The budget development process also includes an institutionally agreed upon process to determine the priority of budget reductions in the event of revenue shortfalls.
SELF-EVALUATION
Basic assumptions considered in developing each LPC yearly budget include the provision of no deficit spending for the College, and District maintenance of five-percent minimum contingency reserves to meet financial emergencies and unforeseen occurrences. The LPC budget practices are sufficiently conservative to allow the College to address unplanned emergency expenditures without affecting the basic instructional programs.
References for Standard Nine
| 9.1 | Las Positas College Accreditation Midterm Report (November 1999) |
| 9.2 | Las Positas College Strategic Plan (2002) |
| 9.3 | Partnership for Excellence Funding Process Memorandum (December 2000) |
| 9.4 | Instructional Equipment/Block Grant Funding Process Memorandum (March 2000) |
| 9.5 | Las Positas College Accreditation Survey (2001) |
| 9.6 | Las Positas College Business Services Handbook (September 2001) |
| 9.7 | Las Positas College Budget Development Assumptions (2002) |
| 9.8 | Las Positas College Facilities Master Plan (November 2001) |
| 9.9 | Chabot-Las Positas Community College District Five Year Construction Plan (May 2001) |
| 9.10 | Chabot-Las Positas Community College District Allocation Model |
| 9.11 | Statewide
Association of Community Colleges Memorandum of Coverage Declarations (2001) |
Other Additional Documentation
- Las Positas College Fiscal Workshop Handbook (September 2001)
- District Budget Study Group Agenda/Information Reports (May 2001)\
- District Budget Study Group Information (January 2001)
- Approval to Enter into Agreements for Use of Off-campus Facilities (April 2001)
- Approval to Enter into Agreements for Use of Off-campus Facilities (July 2000)
- Amended Certificate of Student Insurance (1999-2000)
- Memorandum of Coverage Schools Excess Liability Fund (October 2001)
- Las Positas College Organization Chart Summary (2001-2002)
Interview for Standard Nine
Carolyn
Baranouskas, Institutional Planning Committee Representative, Faculty
Janice Cantua, Institutional Planning Committee Representative, Classified
Staff
James Forcier, College Budget Study Group Representative, Faculty
Karen Halliday, Las Positas College President
Robert Kratochvil, Vice President of Business Services
James Ladre, College Budget Study Group Representative, Faculty
Edralin Maduli, Vice President of Business Services
Don Milanese, Vice President of Academic Services
Donald Spellman, Vice President of Business Services (Interim)
Roy Stutzman, Vice Chancellor of Business Services (District)
Robert Wood, Institutional Planning Committee Representative, Faculty
