Board Budget Committee Minutes
April 6, 2005
Committee Members: M. Dover and L. Washington
Committee Resources: J. Keeler and S. Kinsella
1) Call Meeting to Order Called to order at 4:00 p.m. No changes to agenda.
2) Approve Minutes The minutes from the February 2, 2005 were approved unanimously; MS (Washington/Dover).
3) Comments from the Public - No comments from the public.
4) Information Item: Status of FY 04-05 Budget - Steve and Joe discussed the FY 04-05 budget and at this point the budget has an approximate $500,000 problem. There were two main reasons for this problem. Approximately $200,000 of a decrease in revenue is due to the District not obtaining the 3% growth target that the Final (Adopted) Budget contained. The second reason is that adjunct faculty salaries are exceeding the Final (Adopted) Budget by approximately $500,000. The District took about $200,000 from utilities to cover part of these additional expenditures leaving a $300,000 problem. The plan at this point is to cut back wherever we can and complete the FY 04/05 year. The plan also includes how to not only increase growth for the FY05/06 year, but also how to manage the adjunct faculty budget so we dont have this problem in the future. To that end, Sherrean Carr, the Deans, and other departments, such as MIS and Institutional Research, are working to strategize and reconcile the amount of classes in the schedule with those costs associated with adjunct faculty.
5) Action Item:
Approve the Budget Guidelines,
FY 05/06 Steve Kinsella presented
draft #3 of the Budget Guidelines for FY 05/06 and indicated that the changes
from draft #1 and #2 were based on comments from various campus constituent
groups. Steve indicated these same guidelines (draft #3) had been shared with
the College Budget Committee and is planned to be placed on the Board of Trustees
April 12, 2005 Board agenda for action.
There was discussion on how this information was shared and agreed to with all college shareholders. Joe indicated that we do share this information and solicit responses through the various committees. For example, the representatives on the College Budget Committee are asked to communicate with the groups they represent. They are asked to not only take information to their constituent groups, but also solicit information from them. Steve indicated that we will also look at other ways for communication with the various campus shareholders.
The FY 05-06 Budget Guidelines were approved unanimously; MS (Washington/Dover) to be forwarded to the full Board of Trustees.
b) Review and Recommend an Independent Audit Firm Joe reviewed the copy of the RFP for audit services that was attached to each agenda packet and provided each committee member with the following additional documents:
· List of 32 audit firms that were sent the RFP,
· a spreadsheet that indicated the name and cost proposal from each of the three firms that responded to the RFP,
· a photocopy of the client list page from each of the three responding audit firms,
and a copy of the entire proposal
from each of the three responding firms.
The College Budget Committee had discussed
the three firms and the discussion included topics of price, experience, and
also how long the current firm, Vavrinek, Trine, Day & Co., LLP (VTD),
had been with the District. The option of VTD may be available if that firm
selected a new partner, other than Terri Montgomery, to be in charge of the
On a MS (Dover/Washington) the Board Budget Committee will recommend to the full Board of Trustees the selection of VTD with the caveat that a new audit team be assigned to the Gavilan audit.
6) Set Next Meeting Date Joe indicated he would contact Board Committee members at a later date for our next meeting soon after the May revise information is available from the state. The committee agreed.
7) Meeting adjourned at 5:10 p.m.