Taking the Mystery
Out of Community
College Finances
Richard Becker,
Palm Beach State College
Keith Houck,
Valencia College
What do
Business Officers
think are the issues?
Most Important Issues
Confronting Colleges
• Provide both affordability and quality
• Reductions in state funding (both for
operations and capital)
• State imposed limits on tuition and fees
• Potential cuts in federal student aid
• Becoming even more efficient and effective
Various Strategies
• Increasing enrollment
• Increasing the use of part-time faculty
• Cutting underperforming programs
• Outsourcing non-academic services
• Public/Private Partnerships
It’s none of your business,
or is it?
• Do you understand the business operations of your
College?
• Do you receive a financial report each meeting?
• Are key items and trends brought to your attention?
• Is your CFO’s phone number on your speed dial?
 You want to learn more about the business
operations but don’t even know the questions to
ask….
Questions for the CFO
• What are the various funds of the College and for
what each is used?
• What are the revenue sources for each fund?
• What are the different functions of the college and
how do we relate to other comparable institutions
in functional expenditures?
• What is a fund balance? How much do we have in
fund balance? What is it’s purpose? Is this an
adequate amount?
• How much of our budget is spent on salaries &
benefits?
Big Brother and the
Business Office
• SACS Accreditation…..10 year audit of overall College, focused on
academic programs and accountability
• State Auditors
• Annual Financial Audit
• Bi-Annual Operation & Compliance Audit
• Annual Federal Funds Audit
• Annual Bright Futures Audit
• Periodic Special Purpose Audits assigned by the Legislature
• Independent Financial Audit by CPA Firm of DSO (Foundations)
Funding Changes
Revenue per FTE
6,000
5,000
4,000
3,000
2,000
1,000
0
2008-09
2009-10
2010-11
2011-12
State Funding
Federal Funding
Total Revenue
Total Revenue Adjusted for CPI
2012-13
2013-14
Tuition & Other
When the annual increase in
your ticket price is growing
faster than the cost of living,
you have a problem.
15
Funding for Fiscal Year 2012-13
Loans 13%
General
Revenue
& Lottery
Student 87%
47%
41%
Scholarships 10%
Bright Futures 17%
Pell 73%
53%
Other
4%
55%
Valencia’s
Operating
Funds
16
Conditions for Learning
Student Success
Learning Outcomes
Resource Allocation Model
Developed by
VPBS Council
8/9/1010
18
Conditions of Learning
Student Success
Learning Outcomes
Text Book Costs
What are you doing to
reduce the cost of textbooks
and other instructional
materials for your students?