Audit and Finance Committee Meeting
December 9, 2009
Present: Trustees Withrow, Gulassa, and Riley, Student Trustee Mouton-Patterson, Presidents Inclan,
Adams, Herring, MaryBeth, Connie, Yvonne Dorrough, Jerry Keanny, Gail Waiters, Debbie Budd,
Joseph Bielanski, Jr., Debbie Weintraub, Helena Livingston, Pieter deHaan, and Karolyn van Putten,
Audit
Chancellor gave an update on the accreditation letter related to our audit. The items have been
reduced to a fixed number. We need to submit a response by March 15th. Trustee Withrow shared this
is a qualified opinion from an external auditor which is a serious accusation, some involving State and
Federal reporting.
Debbie Budd – Business officers and senior staff held a meeting on Monday. All of the campuses did
incredible work for the accreditation teams last spring. Standard III on Finance raised audit issues.
Joseph Bielanski has been helping with the District responses. Goal is to address and fix the issues. We
have been working around the clock with the BI tool to get the data out from PeopleSoft. After the
meeting on Monday, it was felt that the goals can be achieved. When they come back in April, we only
need to identify what they addressed in their special letter. Bielanski gave his interpretation of what has
been requested, to keep it in scope. Trustee Gulassa asked if they will be satisfied on a restrictive view
of their concerns. They are focusing on what they feel are the most significant issues, and will be
visiting just for one day. Planning and budget is meeting this Friday to set a response timeline, and the
information will proceed to the Board by February. Trustee Gulassa asked if the letter delay is typical.
We don’t know why they took so long, as it’s not typical. They can visit on one list of issues, and then
find other issues. Our auditors don’t communicate to WASJ at all.
Trustee Riley asked how aggressive a response we should be taking. We need to have the back-up
information in order to write the report. Trustee Withrow doesn’t have a comfort level from the auditor
that things have been fixed yet. The Chancellor shares that the concerns will be explored in great detail.
Bill Rausch from VTD auditors gave an update on the current missing audit items. There will be a
conference call in December 18th, to come back out in January, with an audit report by the end of
January.
Jerry Keanny from CIBER was also present to speak.
Yvonne Dorrough gave an update on the missing items, and feels that Financial Services is on track to
provide the requested information by December 18th. Some of the information will go out next week.
IT department and CIBER department need to be in sync to provide information to the auditors. They
are reporting to the Chancellor when items are ready, each part at a time, and then it will be
communicated to the auditor team that the information is ready. The auditor needs 3 weeks from the
team visit to complete a report. We have to write something by March 15, with the team visit at the
beginning of April.
Minh Lam gave an update on his goals. Enrollment side he is very confident that information will be
timely submitted.
Jerry gave an update on the goals. Fixed assets test database schedules are ready to provide to the
auditors. He is a CPA, as well.
Audit process to use to track software when take data in and then take data out in a report. The report
process was described. Trustee Withrow concern how we know what information comes out is good or
not. Jerry has 14 years of working with the software, and he’s 100% confident that it’s built correctly
and that the information is accurate. Trustee Withrow feels it hasn’t worked in the last 4 years. He
would like to be shown something that validates as proof what is presented. Jerry shares that it’s a very
complicated process. He’s only been involved with the integrated issues for the last four months.
Minh shares that proof is in the underlying details of what is presented to the auditors.
Trustee Withrow priorities to the audit functions to the report? We’re working on the issues with the
issues by December 18th. The auditor will also provide report examples to ensure that we’re on the right
track. Brief the Board with a status update, and it will be on the agenda. Trustee Gulassa feels that the
information needs to be shown to him, as he doesn’t have a comfort level yet. Trustee Riley feels that
this year’s budget is set, and that 2010-2011 will be a critical year in our organization. Trustee Gulassa
commented that this year’s budget is late, and he’s concerned that the budget format is problematic.
He’s concerned about past budget delays and future.
Chancellor shares that we’ve used the same budget process and format for ten years. As long as there’s
been enough funding, it hasn’t received criticism. We need to find a new format and process, which will
be explored.
Speaker Bielanski shares that a special report was done by the District in April, and that 3 of there issues
has been resolved at the District. Jacque Bell commented that one issue has been resolved by the
accreditation team due to a misunderstanding, and has been addressed and corrected.
Areas of expertise will also be brought in to correct all problems by March 15th, with adequate
responses provided to the auditors by their deadline. Purchasing document is being tightened and will
be presented to the Board.
Yvonne D. shared her understanding of when different findings can be provided. A status update will be
given at the December 15th Board meeting.
Speaker Stark audit, budget book and ACCJJ shares that the audit is just one check. She feels it
suggests a bigger problem. She asks if we have accurate timely fiscal data, ordering and purchasing,
accounting that we don’t have yet. She feels that the budget book is another example of where our
district needs fixing and is inaccurate.
Trustee Withrow would like to finish the audit portion.
Bill from VTD provided an audit summary. He doesn’t have the current information of how many of
the findings have been met, but they will review this with Peralta management as soon as it becomes
available. Withrow requests a report of the number of items on that by December 15th. Bill feels it’s too
early to present that prior to finishing the audit, but he will see what they can produce.
Budget
Chancellor gave an update that the budget book will be reviewed and updated. Withrow shares that
most of the people with an interest in the budget don’t understand it.
The Ventura budget format was reviewed.
http://www.vcccd.edu/departments/budget/budget_documents.shtml
The Goal is to have a more readable fashion with a summary. Trustee Gulassa shared that some written
requests for information are ignored, and that communication is not good to provide requested
information, which breeds mistrust. People will make sacrifices if they feel that the information is clear
and provided to them. The advisory component section also needs improvement. The Chancellor
shared that the budget format can be reviewed by shared government, and a revised budget can be
submitted later in a better format. Withrow doesn’t feel it will take that long to revise the budget.
Chancellor feels we have to be realistic about the work related to the audit.
Helena L. looked at the Ventura budget, and asked if there is a limitation with our financial system to
just not be able to ask good questions to be able to write good queries to produce good answers. She
feels that the District has never truly recovered from our bankruptcy in the 80s, and that mistrust has
never been restored to release financial information too clearly. The intent of the Board is that they
want a transparent budget. Withrow recommends that the Board not the budget, and he moves from
the committee that the committee recommends this.
Speaker Black asked if base adopted position controls had errors by percentage and other omitted. The
response was that it has been in other budgets over the years. Assumptions should be included in the
budget. Debbie Budd gave an update on the process that’s being used to correct those omissions, with
retirements and grant positions entered into the system, and will be corrected. Colleges validate data via
PAs. The tentative budget done in July has more details, and then corrections are then made in the
proposed final budget. Our budget does have a glossary in the back with many terms defined. Also, the
Fi Services needs to receive information timely, otherwise the budget will be delayed. Raises to the PFT
continuing on, needs a clear by-in. Expenditure base is the way to calculate the 50% law. It is
complicated how the international students’ budgets are incorporated to pay for these items at all times.
International funds not segregated, but go into general funds. It is in the unrestricted budget as they are
in the same classrooms, to account for raises with more flexibility here. The colleges then don’t see how
they benefit from those students. If the funds are restricted, then it’s not covered by the 50% law, and
this needs to be confirmed.
Speaker is concerned about the spring. She asks about enrollment. Spring 7000 FTES. She shares that
enrollment in her classes is high. New students won’t have EOPS, which is a major issue. Chancellor
shares that we will have to add some sections, and that we will have to backfill support services and
EOPS, some of which is State mandated. DSPS staff has been exploring other ways to be more cost
effective, and exploring areas where services may be delivered differently. That information won’t be
included in the new budget. We don’t know how the funds will be allocated yet. Susan shares that
some students haven’t received their Financial Aid yet, much of which has been delayed by
documentation delays. We haven’t seen students en masse protesting Financial Aid. How communicate
and then control the number in the spring? The colleges have their budgets that have been allocated to
the Colleges in general and categorical. Low enrolled classes are being cancelled, and then full classes
will be closed. This is the first year that a 1351 year budget has been given. We will be at least 1000
unfunded FTES this year Debbie Budd projects. There is legislation in WA looking into building into
the Fed budget increased enrollment for the spring. SF cancelled 800 classes, and we cancelled 400
classes. FTE is the fall and spring for 10 months, with some exceptions, such as for a coach. President
Adams shared that the State budget has blocked access. We have a campaign now telling current
students to enroll now. Cal State and UC students are seeing that our system is quite a deal, and our
traditional students are suffering.
Speaker Stark urges them not to pass it as it is, and require that inaccuracies and discrepancies by
corrected. She feels that less that acceptable standards shouldn’t be approved. Chancellor feels that
we’re spending money monthly in the absence of a budget. Presentation style won’t have any different
information within. Thursday or Friday the corrections will be ready, after college review.
Student Trustee also concurs that the budget not be adopted until it is clear. The State is willing to
accept our 311 letter by the end of December. Our reports occur with a domino effect, but that actions
have consequences. The State Chancellor’s office needs the 311 letter. Speaker Stark asks that Yvonne
D. get help in her department. Trustee Gulassa concurs, that the committee recommends that the budget
not pass as it is. If we don’t pass a budget, it could affect our ability to sell our bonds.
Respectfully submitted,
Roxanne Epstein
repstein@peralta.edu
466-7203