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 2 Adjournment

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“ 3

July 28, 2020 Interim FY20 Year-end Financial Presentation to the Board of Trustees 4

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 5

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. 6

Fiscal KPI Dashboard $3,776,180 3.90 $7,445,833 Year-over-Year FY20 Interim Senate Bill 6 Net Surplus Change in Cash Composite Score 7

Cash & Cash Equivalents +$3,776,180 Year-over-Year Discussion Change in Cash Primary Sources of Cash are State Subsidy and Collection of Instructional Fees • State Subsidy Decreased Compared to FY19 FY19 FY20 $28,755,210 $28,011,707 • Instructional Fees Decreased due to enrollment but cash flow from instructional (collections) improved. • Primarily to changes to Financial Aid beginning Fall 2020 8 % of academic year instructional fees uncollected at FYE

Cash Discussion +$3,776,180 Year-over-Year (Continued) Change in Cash YOY Change in YOY Change in YOY Change in YOY Change in YOY Change in Change in Self-Insured Benefits Eligible Debt/Lease Salary & Wages Vouchers Medical Payroll Payments -$1,942,827 -$1,486,626 -$1,427,561 -$401,300 -$295,690 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. 9

Net Surplus and Budget to $7,445,833 FY20 Interim Actual Discussion Net Surplus All Funds Budget FY20 Budget to Actual Variance +$480,242 +$6,965,591 General Fund General Fund Budget to Actual Net Surplus Variance +5,533,553 +4,016,633 • 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). 10

Net Surplus Discussion $7,445,833 FY20 Interim (Continued) Net Surplus • Exhibit II(a) Change in Net Position • FY20 Interim Revenue Compared to FY20 Budget • FY20 Interim Revenue Compared to FY19 Actual (as audited) Exhibit II(a) FY19 Audited FY20 Budget FY20 Interim 28,011,707 SSI & Capital Component 28,755,210 28,459,836 29,656,586 Instructional Fees 30,434,940 28,481,919 3,377,024 Grants and Contracts 3,672,949 2,897,063 1,740,963 Sales and Services (WDC) 2,003,883 2,373,015 1,852,695 Auxiliary Services 2,003,883 2,405,494 2,104,326 Other Revenue 1,788,664 1,438,482 State Capital Appropriations 3,945,193 2,957,255 4,086,809 70,830,111 Total Revenue 73,046,703 69,013,064 11

Net Surplus Discussion $7,445,833 FY20 Interim (Continued) Net Surplus FY20 FY20 FY19 FY20 Interim Budget Audited Budget Actual Variance General Fund Personnel Expenses 6,775,510 1 Administrative Unit 6,792,577 7,014,877 239,367 1 Support Unit 5,290,145 5,416,536 5,091,005 325,530 2 11,057,888 Faculty Unit 11,834,308 10,973,191 (84,697) 4,725,415 2 Faculty Adjunct 5,037,542 4,932,757 207,342 1,975,461 2 Faculty Overload 2,076,438 2,102,082 126,620 1 Student Wages 144,543 165,529 107,228 58,301 4,306,318 Retirement 4,517,689 4,317,802 11,484 7,241,013 3 Benefits 8,460,519 8,874,732 1,633,719 358,712 4 WDC Adjunct 428,655 454,796 96,084 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 12

Net Surplus Discussion $7,445,833 FY20 Interim (Continued) Net Surplus FY20 FY20 FY19 FY20 Interim Budget Audited Budget Actual Variance General Fund Operating Expenses 1 1,001,841 Supplies 1,249,049 1,234,217 232,376 177,050 1 Travel 265,196 290,068 113,018 953,942 Information & Communication 870,407 973,679 19,737 2 Advertising & Promotion 946,028 837,235 1,084,582 (247,348) 1 2,038,860 Repairs & Maintenance 1,750,402 2,135,549 96,689 1,450,122 Utilities 1,431,316 1,448,150 (1,972) 2,333,991 1 Contracted Services 2,142,720 2,559,908 225,917 1, 3 Other Expenses 5,686,807 1,895,087 1,184,215 710,872 160,559 Scholarships & Waivers 180,071 175,942 15,382 140,468 Capital 309,324 143,149 2,681 10,525,632 Total Operating Expenses 14,831,320 11,692,985 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 13

Projected Senate Bill 6 3.90 Senate Bill 6 Composite Score Discussion Composite Score Composite Score Projected Actual at June 30, 2020 A B C D E F Total Revenues, Expendable Net Operating Nonoperating Change in Total Net GASB 34/35 Format Plant Debt Operating + Position Expenses Expenses Position Nonoperating Net of negative = C - (D + E) revenues (expenses) 20,802,736 27,320,819 70,830,111 63,384,278 0 $7,445,833 Primary Reserve Viability Net Income Composite Ratio Score Ratio Score Ratio Score Score, FY17 = A / D = A / B = F / C 3.90 0.328 4 0.761 3 0.105 5 14

3.90 Senate Bill 6 Composite Score Senate Bill 6 Discussion (Continued) Composite Score 15

3.90 Senate Bill 6 Composite Score Senate Bill 6 Discussion (Continued) 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 obligations. • Decreasing debt improves the Viability Ratio. 16

3.90 Senate Bill 6 Composite Score Senate Bill 6 Discussion (Continued) 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. 17

FY20 Interim Financial Report • Questions/Comments Discussion Regarding FY20 Interim Financial Report? • Next Agenda Item: FY21 Budget Update 18