Board of Trustees Meeting Tuesday, July 28, 2020 3:45 pm Welcome! - - PowerPoint PPT Presentation

Board of Trustees Meeting Tuesday, July 28, 2020 3:45 pm Welcome! You will hear silence until the moderator opens the public meeting.

AGENDA Call To Order Sunshine Law Compliance Announcement Roll Call 20.55 Approval of the Proceedings of the Regular Board Meeting of June 23, 2020 20.56 Consideration of Items for Possible Addition to the Agenda 20.57 Recognition of Accomplishments Reflective of the College Mission 20.58 Consent Agenda for Recurring Items

• A. Personnel Reports
• B. Facilities Reports
• C. Public Safety Monthly Incident Report

Action Items 20.59 Finance Report 20.60 Resolution to seek ODHE Approval to Continue Waivers for CCP 20.61 Be Great Scholarship Tuition Waiver Resolution 20.62 Vendor Contract Approvals 20.63 Academic Quality & Student Learning Updates Status of the College Community 20.64 Student Engagement & Education / Student Activities Report 20.65 Shared Governance / Faculty Senate Report 20.66 President’s Report 20.67 Trustee Chairperson’s Report Old Business New Business Adjourn to Executive Session Adjournment

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Outstanding Accomplishment

Julia Kennedy, a Spring 2020 graduate of Cincinnati State's Graphic Design program, received the highest-level award, Gold, in the 2020 National Student Awards portion of the American Advertising Awards (ADDYs) 30,000 enter competition, 26 awards Graphic Design Program Chair - Jason Caudill Graphic Design Instructor - Joel Knueven "California Wildlife“

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July 28, 2020 Interim FY20 Year-end Financial Presentation to the Board of Trustees

Agenda

• Finance Committee Update
• Disclosures
• Fiscal Year 2020 Interim Year-end KPIs
• Fiscal Year 2020 Cash & Cash Equivalents Discussion
• Fiscal Year 2020 Net Surplus and Budget to Actual Discussion
• Fiscal Year 2020 Senate Bill 6 Discussion
• FY21 Budget Key Assumptions Update
• FY22 – FY23 Planning Considerations

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Finance Committee and Disclosures

Finance Committee: July 27, 2020 Meeting

• Interim FY20 Year-end Financial Report
• FY21 Budget Update
• Other Topics

Next Finance Committee meeting: August 23, 2020

Disclosures

Interim financial presentations do not include GASB 68 and GASB 75 adjustments. FY20 results are considered interim pending certification of the College’s independent year-end financial audit.

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Fiscal KPI Dashboard

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3.90 Senate Bill 6 Composite Score

$7,445,833 FY20 Interim Net Surplus

$3,776,180 Year-over-Year Change in Cash

Cash & Cash Equivalents Discussion

Primary Sources of Cash are State Subsidy and Collection of Instructional Fees

• State Subsidy Decreased

Compared to FY19

• Instructional Fees Decreased

due to enrollment but cash flow from instructional (collections) improved.

• Primarily to changes to Financial

Aid beginning Fall 2020

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+$3,776,180 Year-over-Year Change in Cash

FY19 FY20 $28,755,210 $28,011,707

% of academic year instructional fees uncollected at FYE

Cash Discussion (Continued)

Primary Uses of Cash are Salary/Wages/Retirement, Health Benefits, Payments to Third Parties, Payments on Debt

• Salary, Wages and Retirement Decreased Significantly Compared to

Prior Year;

• Benefits Significantly Decreased Compared to Prior Year;
• Payment to Vendors and Contractors continued a multi-year trend of

year-over decreases (excluding settlement payments);

• Payments on Debt decreased due to maturation of capital leases;

and

• One-time non-recurring payment in FY20.

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+$3,776,180 Year-over-Year Change in Cash

YOY Change in Benefits Eligible Payroll

• $401,300

YOY Change in Salary & Wages

• $1,942,827

YOY Change in Self-Insured Medical

• $1,427,561

YOY Change in Change in Vouchers

• $1,486,626

YOY Change in Debt/Lease Payments

• $295,690

Net Surplus and Budget to Actual Discussion

• Exhibits II(a), II(b), IV(a), IV(b)
• Actual Net Surplus Exceeds Budget due primarily to:
• Revenue from Positive Enrollment Compared to Budget (mitigated by lost

revenue due to health crisis);

• Salary, Wages, and Benefits Expenses Much Lower Compared to Budget

(particularly after start of health crisis); and

• Operating Expenses (Supplies, Travel, Contracted Services, Repairs and

Maintenance, Accounts Receivable) Much Lower Compared to Budget (due to health crisis and change to financial aid).

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FY20 Budget +$480,242 All Funds Budget to Actual Variance +$6,965,591 General Fund Net Surplus +5,533,553 General Fund Budget to Actual Variance +4,016,633

$7,445,833 FY20 Interim Net Surplus

Net Surplus Discussion (Continued)

• Exhibit II(a) Change in Net Position
• FY20 Interim Revenue Compared to FY20 Budget
• FY20 Interim Revenue Compared to FY19 Actual (as audited)

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Exhibit II(a) FY19 Audited FY20 Budget FY20 Interim

SSI & Capital Component 28,755,210 28,459,836

28,011,707

Instructional Fees 30,434,940 28,481,919

29,656,586

Grants and Contracts 3,672,949 2,897,063

3,377,024

Sales and Services (WDC) 2,003,883 2,373,015

1,740,963

Auxiliary Services 2,003,883 2,405,494

1,852,695

Other Revenue 1,788,664 1,438,482

2,104,326

State Capital Appropriations 3,945,193 2,957,255

4,086,809

Total Revenue 73,046,703 69,013,064

70,830,111

$7,445,833 FY20 Interim Net Surplus

Net Surplus Discussion (Continued)

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FY19 Audited FY20 Budget

FY20 Interim Actual

FY20 Budget Variance General Fund Personnel Expenses Administrative Unit 6,792,577 7,014,877

6,775,510

239,367

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Support Unit 5,290,145 5,416,536

5,091,005

325,530

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Faculty Unit 11,834,308 10,973,191

11,057,888

(84,697)

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Faculty Adjunct 5,037,542 4,932,757

4,725,415

207,342

2

Faculty Overload 2,076,438 2,102,082

1,975,461

126,620

2

Student Wages 144,543 165,529

107,228

58,301

1

Retirement 4,517,689 4,317,802

4,306,318

11,484 Benefits 8,460,519 8,874,732

7,241,013

1,633,719

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WDC Adjunct 428,655 454,796

358,712

96,084

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Total Personnel Expenses 44,582,416 44,252,301

41,638,550

2,613,751

1 Personnel Units that were impacted by health crisis hiring freeze, furlough 2 Faculty Units netted below budget due to decreases in enrollment 3 Healthcare expenses were better than plan and dramatticly decreased due to health crisis 4 WDC closure due to health crisis offset revenue loss

$7,445,833 FY20 Interim Net Surplus

Net Surplus Discussion (Continued)

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$7,445,833 FY20 Interim Net Surplus

FY19 Audited FY20 Budget

FY20 Interim Actual

FY20 Budget Variance General Fund Operating Expenses Supplies 1,249,049 1,234,217

1,001,841

232,376

1

Travel 265,196 290,068

177,050

113,018

1

Information & Communication 870,407 973,679

953,942

19,737 Advertising & Promotion 946,028 837,235

1,084,582

(247,348)

2

Repairs & Maintenance 1,750,402 2,135,549

2,038,860

96,689

1

Utilities 1,431,316 1,448,150

1,450,122

(1,972) Contracted Services 2,142,720 2,559,908

2,333,991

225,917

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Other Expenses 5,686,807 1,895,087

1,184,215

710,872

1, 3

Scholarships & Waivers 180,071 175,942

160,559

15,382 Capital 309,324 143,149

140,468

2,681 Total Operating Expenses 14,831,320 11,692,985

10,525,632

1,167,352

1 Expenses that were signficantly reduced to campus closures and health crisis 2 Advertising was increased by President and Board due to Fall/Spring revenue 3 Accounts Receivable Variance primarily due to change in financial aid methodology

Projected Senate Bill 6 Composite Score Discussion

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3.90 Senate Bill 6 Composite Score

A B C D E F GASB 34/35 Format Expendable Net Position Plant Debt Total Revenues, Operating + Nonoperating Operating Expenses Nonoperating Expenses Change in Total Net Position

Net of negative revenues (expenses) = C - (D + E)

20,802,736 27,320,819 70,830,111 63,384,278 $7,445,833 Composite Ratio Score Ratio Score Ratio Score

Score, FY17 = A / D = A / B = F / C

0.328 4 0.761 3 0.105 5

3.90 Composite Score Projected Actual at June 30, 2020

Primary Reserve Viability Net Income

Senate Bill 6 Composite Score Discussion (Continued)

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3.90 Senate Bill 6 Composite Score

Senate Bill 6 Composite Score Discussion (Continued)

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3.90 Senate Bill 6 Composite Score

• Expendable Net Position: The sum of

unrestricted net assets and restricted expendable net assets.

• Increasing expendable net assets

improves the Primary Reserve Ratio and Viability Ratios

• Plant debt: Total debt, including

bonds payable and capital lease

• bligations.
• Decreasing debt improves the Viability

Ratio.

Senate Bill 6 Composite Score Discussion (Continued)

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3.90 Senate Bill 6 Composite Score

• Total operating expenses: Total operating expenses, plus interest on

long-term debt.

• Decreasing operating expenses relative to net assets improves the Primary

Reserve Ratio.

• Decreasing operating expenses relative to total revenues improves the Net

Income Ratio.

• Total revenues: Total operating revenues plus total non-operating

revenues.

• Increasing total revenue compared to expenses improves the Net Income

ratio.

FY20 Interim Financial Report

• Questions/Comments Discussion Regarding FY20

Interim Financial Report?

• Next Agenda Item: FY21 Budget Update

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FY21 Budget Update

• June 23, 2020 Board Approved the FY21 budget based on Key FY21

Budget Assumptions:

• $0 Net Surplus/Deficit
• Four Key FY21 Budget Assumptions
• State Subsidy for Instruction
• Enrollment
• CARES Act/Federal Stimulus
• Cost Containment
• Board Resolution 20.49 Requires Board Approval of a Revised FY21

Budget no later than October 1, 2020

• Timeline
• July: Updates Regarding Budget Assumptions
• August: Updates Regarding Budget Assumptions and Presentation of

DRAFT Revised FY21 Budget

• September: Board Approval of Final Revised FY21 Budget

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Key FY21 Budget Assumptions

• State Subsidy for Instruction
• FY21 Budget Assumption: -20% cut to State Subsidy and Capital Component.
• Update:
• Chancellor Gardner and ODHE announced -4.38% cut to allocation of SSI through

September (0% cut to State Capital Component).

• Enrollment
• FY21 Budget Assumption: -20% enrollment compared to prior year.
• Update:
• Fall 2020 Enrollment -5.6% year-over-year, but nearly half of fall enrollment occurs in

the month of August (very early to draw conclusions).

• CARES Act
• FY21 Budget Assumption: -$1,900,000 positive impact from Dept. of

Education managed Higher Education Relief Fund (HERF)

• Updates:
• Ohio allocated $972,000 from the Coronavirus Relief Fund (CRF) to the College. CRF is

Treasury managed with different rules than HERF. PPE/Cleaning expenses can be moved from HERF to CRF with net positive Budget impact.

• Impact from new federal stimulus (if any) is TBD.

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Key FY21 Budget Assumptions (Continued)

• Cost Containment
• FY21 Budget Assumptions:
• Hiring Freeze, Travel Moratorium (effective for full year);
• Across the board cuts to salary & wages (effective 10/1/2020);
• Across the board cuts contracted services and supplies (effective for full year); and
• Voluntary Separation Plan (VSP) not included in the FY21 Budget.
• Update:
• Estimated VSP net FY21 budget impact: +$325,916
• Questions/Comments/Discussion Regarding FY21 Budget

Assumptions?

• Next Agenda Item: FY22 – FY23 Planning Considerations

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FY22 – FY23 Planning Considerations

• CARES Act/Federal Stimulus Revenue provide a one-time FY21

positive impact to the budget and no FY22 - FY23 benefit

• State of Ohio FY22 - FY23 Biennium Operating Budget is highly

uncertain

• State Subsidy and key Grants are dependent upon state budget
• Cabinet departments are planning a -10% decrease
• State Capital Appropriations are highly uncertain
• FY21 – FY22 Biennium Capital Budget is delayed indefinitely
• Further Declines in Enrollment will increase pressure on cost

containment and projected FY22 – FY23 deficits

• FY19 and FY20 declines in enrollment were mitigated by tuition increases
• Significant decreases in FY20 enrollment would exacerbate projected deficits

in FY22 – FY23

• Enrollment increases (if any) due to economic downturns usually lag from

the beginning of the downturn

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Financial Report to the Board

• f Trustees is Concluded

20.60 Resolution to seek ODHE Approval to Continue Waivers for CCP 20.61 Be Great Scholarship Tuition Waiver Resolution 20.63 Academic Quality & Student Learning Updates

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Cincinnati Technical and Community College Board of Trustees Resolution 20.62 (Revised) Contract Approval

1) Assessment Technologies Institute, LLC, not to exceed $90,000.00 for online NCLEX-RN assessment and preparation for nursing students (General Fund); 2) Blackboard, Inc. $475,500.00 for migration to and 3 year SASS subscription for learning management system through July 2023 (General Fund); 3) Campus Management, $52,000.00 for renewal of CRM “Connect” software subscription used by Admissions (General Fund); 4) CDW-G, $349,371.72 for enterprise-wide Microsoft licensing and security bundle for 3 years through July 2023 (General Fund); 5) CDW Logistics, LLC $112,200.00 for enterprise ADOBE licenses through July 2023 (General Fund); 6) Ellucian, $486,572.00 for annual renewal of Colleague ERP system software and support (General Fund); 7) Presidio, $96,815.76 for annual renewal of SmartNet maintenance and repair services for Cisco network components (General Fund); 8) Siemens, $177,161.06 for preventative maintenance, data and software maintenance of building automation systems for Clifton, Harrison and Evendale through June 2023 (General Fund); 9) The University of Cincinnati, $81,536.00 for shared dispatch services for Public Safety and Campus Police (General Fund); 10) Transact, $116,403.00 for point-of-sale, Surge Card System swipe door access, pay-for- print function, and eAccount transactions (General Fund);

20.64 Student Engagement & Education / Student Activities Report 20.65 Shared Governance / Faculty Senate Report

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President’s Report

• Thanks to College Community
• Safe opening of in-person enrollment services on Clifton Campus
• Virtual new student orientation implemented
• Extensive planning for Fall semester
• Alumni Career Series
• Career Center showcased alumni and their respective programs and

industries

• Presenters were Dillon Ruby, Bob Hafertapen, Ken Wilson and Brandi Ayers
• Dept. of Defense Grant – Increasing Workforce Pipeline
• FlexFactor, curriculum development and recruitment for advanced

manufacturing short-term credentials

• Partnership is with Lorain County Community College
• Goldman Sachs Ohio 10,000 Small Business Virtual Commencement
• Guests included CEO David Solomon, Senator Brown, Congressman Chabot

and Mayor Cranley

• 25 Cincinnati State graduates were area small business owners

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President’s Report

• Continued and successful fundraising efforts despite pandemic
• Total fundraising commitments FY20 $2,729,596
• 50th Anniversary Campaign efforts focus on Student Success
• 100% Trustee, Foundation and Alumni participation is priority
• 50th Co-Chairs - Mark Walton ’78, George Vincent, Barbara Turner, Mike Haunert
• Gala postponed until 2021, small gatherings (virtual/in-person) instituted
• $750K Fifth Third gift for CState Accelerate; $262K from Anonymous

Foundation for Health SIM Lab, so far $400K in personal commitments

• Over $750K offered in direct and renewable scholarships through Scholarship

Committee (Jessica Loomis, Chair), Faculty, Financial Aid, Admissions, Development

• CS is fully engaged in government affairs
• Over 40 State, Federal and local officials contacted through written, live and

virtual communications

• Employee outreach to government officials also supported work
• Serving as Vice Chair-elect OACC Board, Chair-elect of President’s Council

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President’s Report

 Virtual College Update for Employees – August 7 @ 9am

• Thankful for patience and focus on students despite uncertain times

 Virtual Commencement – August 9 @ 3pm

• Honorary Degree recipient is CS Trustee and Ohio National President

Barbara Turner

• Distinguished Alumni recipient is Alumni Board member and Mercy

Health West COO Jason Asic ’04

• Featured speaker is Senator Rob Portman
• Virtual commencement video produced by Storyocity, a company

formed by Cincinnati State graduates

• Sent congratulations video and free alumni membership to 1,100

students, as well as gift/care packages with yard signs to display  Fall Semester Starts – August 24

• Great media coverage of services and Fall plans

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20.67 Trustee Chairperson’s Report Old Business New Business

Board of Trustees Meeting Adjourned to Executive Session