Chancellor’s Office Updates Community Colleges Internal Auditors Fall 2019 Conference October 3 & 4, 2019 Chaffey College Wrenna Finche, Director of Fiscal Standards and Accountability

Agenda CCCCO Website 2020-21 Budget and Legislative Requests Proposed Regulation Change - Auxiliary Organizations AB 1504 – Student Representation Fees SCFF Updates FCMAT – CCCCO Data Management Practices Review Proposed Updates to CDAM Fiscal Health Monitoring Questions

CCCCO ADA Compliant Website College Finance and Facilities Planning documents that have not been remediated are available in this dropbox. https://www.dropbox.com/sh/inwg98g9fp75141/AAAEEhtyAonxS5Ve58uvXCooa?dl=0&lst=

Budget and Legislative Request for 2020-21 Foundational Resources $278 million for base funding $100 million for pension contributions $649.7 million for Capital Outlay Program

Budget and Legislative Request for 2020-21 College Affordability $250.6 million for financial aid reform $10 million for textbooks $350,000 for annual survey of student’s basic needs

Budget and Legislative Request for 2020-21 Faculty and Staff $76.4 million for implementation of Diversity Taskforce recommendations $15 million for professional development $10 million for part-time faculty support $649.7 million for capital outlay program

Budget and Legislative Request for 2020-21 Student Needs $20 million for augmentation of SEA Program $10 million for expansion of mental health services $10 million for expansion of incarcerated student education

Budget and Legislative Request for 2020-21 State Support New CCCCO Units $945,000/6 positions for Research and Planning Unit $200,000/2 positions for Housing Unit $200,000/2 positions for Energy and Environmental Sustainability Unit $4 million for CCC library services platform $2.5 million for awareness and outreach $2.3 million for core support for CCCCO operations

Auxiliary Organizations Proposed Change to Regulations Consultation Council October 17, then 2 readings at BOG Meetings (November 2019 and January 2020) No more than 50% reimbursement by an auxiliary for services performed by district employees may be intangible. Intangible benefits assigned good-faith reimbursement value by district.

Auxiliary Organizations Proposed Change to Regulations Remaining reimbursement as agreed upon with district, at actual value, could include: Scholarships Fundraising Marketing, events Contributions to student, athletic,k and instructional programs Grants for tuition waivers Cash

Auxiliary Organizations Proposed Change to Regulations Annual Reporting Requirement: The district must ensure annual public disclosure of the value of services performed and the benefits provided by auxiliary.

AB 1504 – Student Representation Fee For ALL Colleges with a student body association: Student Representation Fee = $2 $1 of each $2 collected goes to statewide student senate

•

•

•

• •

•

•

•

FCMAT Data Management Review Recommendations for Chancellor’s Office Mapping guide for data elements Data definitions User friendly data submission Communication

FCMAT Data Management Review Recommendations for Districts “Establish the expectation for shared ownership of data management responsibilities at the executive level and communicate this expectation to all departments.” Roles and responsibilities Documented desk procedures Communication Training

2019-20 Contracted District Audit Manual

2019-20 CDAM Timeline December 1, 2019: released for review by FSAC and CPA firms January 15, 2020: posted on CCCCO Website

2019-20 CDAM Proposed Updates Section 425 – Residency Students enrolled exclusively in noncredit courses are not subject to residency classification no requirements Section 340 – Required Supplemental Information Auxiliary Organizations in Good Standing Section TBD – Internal Controls over SCFF Data Management

Internal Controls over SCFF District Policies Roles and responsibilities Training Data flow Data definitions Accuracy and completeness Desk Procedures Document data flow and steps taken to complete attendance accounting tasks and report financial aid and student success data.

Corrective Action Plans The Chancellor’s Office will request a CAP for unresolved financial or state compliance findings. 2017-18 audit reports resulted in CAP request from 7 districts

(Ending Balance/Expenditures) 2017-18 Fiscal Health Monitoring Prior to gathering additional information (Ending Balance/Expenditures) < 5% 5%-10% > 10% (Surplus/ Expenditures) > 0% High Risk FCMAT Review none Moderate Risk Fiscal Health Assessment Questionnaire 1 district Low Risk No Immediate Follow-Up 56 districts Small Deficit (Deficit/ Expenditures) between -5% and 0% 2 districts 6 districts Large Deficit < -5% Highest Risk FCMAT Review &/or Special Trustee 5 districts

Fiscal Health Monitoring Other Metrics and Information considered: Budgeted surplus(deficit) Budgeted net operating revenue ratio [(surplus(deficit))/revenue] Salaries & benefits as share of total and unrestricted GF Percent change in enrollment Percent change in cash balance Pension & OPEB liability as share of covered payroll Audit findings and internal control significant deficiencies/material weaknesses Late/missing compliance reports CEO/CBO Turnover Board Unrest Whistleblower complaints

FCMAT Fiscal Health Risk Analysis Recommended for all districts to complete annually

Questions?