agenda - suny erie health...1. call to order 2. approval of minutes - page 2 motion to approve the...

Committee Meeting: Financial Health Date: April 13, 2018

Committee Chair: Tim Callan

Committee Members: Tim Callan-BOT member, Rebecca Krakowiak-BOT member, Danise

Wilson-BOT member, Len Lenihan-BOT member, Dan Hocoy-President, Mike Pietkiewicz-EVP

Institutional Advancement and Efficiency, Penny Howard-EVP for Finance and Administration,

Rick Washousky-Provost/EVP, Krista Woods-Chief Accountant, Steve Smith-VP of Enrollment

Management, Sue Holdaway-Executive Director ASC

Mission:

Financial Health’s core purpose is to assist the Board of Trustees in fulfilling its fiduciary responsibility

in assessing overall financial performance of the college with respect to financial operations. The focus

is assembling and monitoring organizational priorities and work with the President to best present and

monitor management key financial performance indicators.

Vision:

Erie Community College Board of Trustees have a current and relevant short and long term

financial plan where concise, timely and understandable reporting tools provide Trustees with a

clear vision and pathway to institutional financial integrity.

AGENDA

1. Call to order

2. Approval of Minutes - Page 2

Motion to approve the minutes of March 30, 2018

Motion:

Second:

3. Old Business

4. New Business

a. Fundraising Update – Dan Hocoy, Ph.D.b. Quarterly ASC Report – Susan Holdaway, Executive Director ASC - 3c. EFPR Group Report – Penelope Howard, EVPAF - Page 15d. 2018-2019 Budget – Penelope Howard, EVPAF

5. Next Meeting:

1

of 11

Minutes respectfully submitted by Barbara Miller 3/21/18

Committee Meeting: Financial Health Committee Date: March 20, 2018

Committee Chair: Tim Callan

Present: Tim Callan-BOT member, Susan Swarts-BOT member, Mike Pietkiewicz-EVP

Institutional Advancement and Efficiency (left 5:10), Penny Howard-EVP for Finance and

Administration, Rick Washousky-Provost/EVP, Krista Woods-Chief Accountant, Steve

Smith-VP of Enrollment Management (arrived 4:25), Carl Widmer and Matt Montalbo-

auditors from Drescher & Malecki, LLP (left 4:45pm)

Phoned in: Rebecca Krakowiak-BOT member, Tracey Cleveland-VP of Human Resources,

Equity and Inclusion (joined 4:15)

Excused: Not Applicable

Mission

Financial Health’s core purpose is to assist the Board of Trustees in fulfilling its fiduciary

responsibility in assessing overall financial performance of the college with respect to

financial operations. The focus is assembling and monitoring organizational priorities and work

with the President to best present and monitor management key financial performance indicators.

Vision

Erie Community College Board of Trustees have a current and relevant short and long

term financial plan where concise, timely and understandable reporting tools provide

Trustees with a clear vision and pathway to institutional financial integrity.

Minutes

1. Call to Order: Trustee Callan called meeting to order at 4:05 pm.

2. Approval of Minutes:

Motion to approve the minutes of January 16, 2018

Motion: Provost Washousky

Second: Trustee Swarts

Passed: Unanimously

3. Old Business:

a. SUNY Erie Community College Draft Audit Report

b. SUNY Erie Community College Draft Management Letter

c. SUNY Erie Community College Concurred Review

2

of 11


d. SUNY Erie Community College Draft Auditors Communication

e. SUNY Erie Community College Auditor Power Point Presentation

Auditor Montalbo reviewed that the aforementioned documents were supplied for

review and they would just start with the included Power Point Presentation and

allow for questions as they go along. The communications clarified their role in

the audit as an independent third party. About $2 million dollars in expenses

related to 2016 should have been capitalized instead of expensed so that has been

restated as part of the financials. Trustee Callan asked if there was a specific

project or projects that needed to be restated and was informed it was the

Nanotech project. Chief Accountant Woods added the funds were grant funds,

100% funded by the state.

The auditors reported an un modified or clean opinion on the financial statements,

the best you can do from an audit standpoint. Trustee Callan questioned the

figures presented around pensions and OPEB liability.

o What created the net pension liability decrease? Auditor Montalbo

answered based on actuarial reports provided by the retirement system.

o Why did the college’s OPEB increase after all the retirements that have

occurred? Auditor Montalbo mentioned this figures are from a third party

actuarial company (HyBridge). The retirements did not outweigh the

trending increases in healthcare costs and the increasing life expectancies.

o Trustee Callan would like to understand the assumptions made by the

actuarial company in particular around OPEB. Chief Accountant Woods

will research and report back on the OPEB numbers increasing so

dramatically over the past two years.1

Revenues and Transfers In vs. Expenses (agenda page 141) graphic showing

activity over the last five years with the bottom line being the most reflective of

the current budgetary operations.

Auditor Montalbo continued reviewing the Power Point presentation highlighting

the Operating Revenues with an overall increase and a decrease in the

Nonoperating Revenues and County Contributions. He continued to mention that

the Expenses also had an overall decrease from 2016. Our ratio of current assets

to current liabilities improved from 2016. Regarding the Net Position/Fund

Balance Reconciliation slide (agenda page 146), Auditor Montalbo suggested

striving for a current unrestricted fund balance of about $18 million to allow for

the stability of two months of operating expenses.

Auditor Widmer continued the presentation with the Management Letter

Observations leading with the reminder that the auditors did not uncover any

material weaknesses or significant deficiencies, no reportable findings are

included in the report. The Management Letter includes suggestions regarding

best practices and some housekeeping issues.

o Title of Succession Planning, as mentioned in previous audits

o Budget focus from financial management side, the actuals compared to

budget showed we did not need to use fund balance to balance the budget.

3

of 11


Strive to not use fund balance for structural/operational budget building as

a practice.

o Budget has had incongruences with actual, suggestion for the college to

access and possibly create a budget manager position.

o Carry over suggestion from last year regarding the timeliness of bank

statement reconciliation. It is already being addressed and it is anticipated

that this suggestion will be unnecessary by next audit.

EVPIAE Pietkiewicz mentioned that the proposed AVP for Finance position had

been eliminated by the Board of Trustees (based on input from management two

years ago), and therefore would need board support to reconstitute that position.

Trustee Callan requested more research from Chief Accountant Woods regarding

the OPEB number increasing over the last two years.2

Auditor Widmer expects to release the findings in the near future, as the drafts are

being reviewed by the County Comptroller’s office currently.

Trustee Callan asked for an issues that may have been omitted from the

Management letter and was assured by Auditor Montalbo that all have been

addressed in that letter.

In the absence of any further questions, the auditors were excused from the

Financial Health Committee meeting at 4:45 pm.

4. New Business:

a. Finance Dashboard

Chief Accountant Woods mentioned the variances in revenues are mostly

attributed to decreased enrollment and the timing of some billing practices, for

example the out of county charges get billed later in the semester.

o Trustee Callan asked about the decrease in enrollment in relation to

headcount and FTE for spring. VPEM Smith discussed how applications

are trending, getting our brand out there to high school students and

online.

o EVPAF Howard mentioned that the budget did not reflect the reduced rate

per head for current high school students that are also taking classes from

SUNY Erie, one of the biggest growth areas for us. This difference will

be taken into account when forming the 2018-2019 budget.

o Trustee Callan and EVPAF Howard asked how SUNY Erie is trending

overall for the fiscal year actual to projected FTE, and VPEM Smith

answered we are down two to three percent. Country-wide there is a

decreased number of high school students, EVPAF Howard stated,

therefore we must figure out what are the other revenue sources to make

the trend go in the other direction.

o VPEM Smith restated that retention should be our biggest focus, give the

students that are attending a more enjoyable, affordable experience,

providing them with the best resources we can. SUNY Erie is looking into

4

of 11


realignments, new practices around business processes for billing.

EVPIAE Pietkiewicz stated we are pursuing areas that SUNY Erie can

offer that ECC could not.

o EVPAF Howard noted that the dashboard shows we are moving in a

positive direction, though the revenues are down from our predictions the

operating expenses are down more than the revenues are down resulting in

a positive revenue trend. The things that we see here are the details that

would be analyzed by a fully functional Budget Manager Position and

given to us to make adjustments in real time. If the college has a

dedicated budget function as has been recommended by auditors, the

spend would be managed and monitored in almost real time

o Trustee Callan asked if there are SUNY recommended practices to address

these downward trends and EVPAF Howard informed that there is not an

official SUNY position on how we should be attracting more credit hours.

o EVPAF Howard would like to help this committee develop more strategic

thinking, and to think differently about how we make SUNY Erie a

fiscally stronger, growing, self-sustaining entity for our students and

become a better asset for Erie County

o Trustee Callan suggested that our single biggest concern is enrollment.

EVPAF Howard agreed. She stated that revamping our business processes,

in addition to providing stronger, more relevant programming will build,

grow and retain our student population.

b. Revenues and Key Item Report

Trustee Callan asked about the “fees for services” line item (page 154 of the

agenda). EVPAF Howard and Chief Accountant Woods explained that the

expenses for Workday are being tracked in the regular accounts and will be

adjusted at the end of the year. EVPAF Howard is working on making the correct

parts of the ERP capitalized. Trustee Callan was also reassured that SUNY Erie

will not need to buy new computers in order to use the new ERP system since

Workday is cloud based.

c. Vendor Report

EVPAF Howard said that for the rest of the fiscal year there will be increases

around the Workday implementation now that the heavy lifting has really begun.

d. Monthly Full-Time Vacancy Report

Trustee Callan asked about Coordinator of Admin Applications position with an

incumbent name that is now showing as vacant. This was a newly-created

position for the ERP project. However EVPAF answered the incumbent was

hired but quit soon after starting for more money at another institution. We are

looking again to fill that position and a few more IT positions for the transition.

5

of 11


Trustee Callan noticed that the report was larger, including part-time positions

this month. EVPAF Howard stated that this was for transparency and the vacancy

report will now include part time positions. Also, we are reevaluating the

effectiveness of part-time positions and the feasibility of changing to full-time

positions.

e. Employer Liability Maximum Monitoring Report

EVPAF Howard mentioned this is as of the end of February, usually a month behind

for this report from Blue Cross.

f. Monthly Project/Facility Status Report

EVPAF Howard would like to present this report in a better way, easier to read,

clarified. She is working with DPW and Erie County and has recently been given

permission to collapse all our deferred maintenance projects into a single project with

subprojects.

Trustee Callan asked what are the big capital/deferred maintenance projects currently

underway. EVPAF Howard answered:

o Code compliance based on Federal audit for ADA

o Elevators

o Ramp issues at North

o Windows

o HVAC units failing

g. Facility Rentals

Trustee Callan asked about adding another column on this report to inform if the fees

charged were actually paid.

h. Health Utilization

Trustee Callan asked VPHREI Cleveland to explain the codes on the report. VPHREI

Cleveland supplied definitions after the meeting.3

5. Special Items—Requiring Board of Trustee Approval

a. Disposal of Material

Trustee Callan asked what actually happens to the items disposed and scrapped?

EVPAF asked if we are scrapping laptops/computers, how have their hard drives been

scrubbed? Chief Account Woods researched the answers after the meeting.4 Topic

will move forward for approval at full board meeting.

b. Disposal of Assets

Two security vehicles are being replaced as part of their replacement cycle, one car

per year. Topic will move forward for approval at full board meeting.

6

of 11


c. Temporary Financial Consultant

EVPAF Howard stated based on issues that keep coming up in reviews, no one

available to help with the budget analysis and the personnel analysis to figure out

what the restructure looks like, she would like to bring on Rick Schott. His job would

be aiding EVPAF Howard in:

o Budget analysis

o Analysis of the Financial area including staffing, business processes

o Jointly will recommend how to restructure that area to be able to deliver what

SUNY Erie needs

Initial contract will be short term, longer term contract will go before the Board of

Trustees.

Trustee Callan asked about his exit from ECC previously and was answered by Chief

Accountant Woods that he was getting retiree health care. Trustee Callan asked if he

left on good terms which was the consensus of the people in the room. Trustee

Callan asked why should he return? EVPAF Howard wants him to help with very

specific projects because of his historical knowledge in that area and his good

relationships with the people that are there.

On the Executive Summary, page 203, the limit is incorrectly listed as $19,900 and

should be corrected to $19,950 before going to the Trustees.

d. Approval of Sole Source Repairs Ophthalmology

EVPAF Howard explained the reasons behind the request, ultimately going back to

the proper procedures to getting repairs for a broken machine vitally needed by the

program. Due to repairs going over the dollar threshold, procurement will not pay it

right now. Advice from our attorney is to get board approval to pay these invoices.

6. Other/New Business

a. Financial Strategic Planning

EVPAF Howard mentioned the included Financial Health standing committee

document that describes our Mission, Vision and Duties. As we move forward

please think about how we can be more proactive in developing strategy, vision

around moving this institution forward, making this institution more financially

sound, how we impact and are impacted by processes. Please review and send ideas

to us so they can be addressed at the next meeting.

Budget Planning Process for this upcoming year is in process. It is slightly different,

the budget proposals are tied to ECC Excels. Over the next 2-3 weeks there will be

meetings with the Deans/AVP levels regarding what they are trying to accomplish.

From there the EVP and Provost will review everything and then Executive team

will make the final decision on what the budget looks like to bring forward to the

Trustees for their approval. It will not include dipping into the fund balance or

increasing fees or tuition this year. The budget will be planned flat or under flat.

Trustee Callan asked for clarification of the goals and how will EVPAF Howard

7

of 11


accomplish this? EVPAF Howard has been tracking our trend and explained why

she thinks it can be done. Plan is to be presented to the Board of Trustees in April to

be ready for the county executive in May. This year it is an interim process due to

the time restraints due to the hire date of EVPAF Howard.

Restructure of the Finance Unit—EFPR gave an initial report to EVPAF Howard

early February, she asked for a more in depth report aligned with their RFP. The

second draft she received commented that our organizational structure is deficient,

too reliant on part time positions, no flexibility, not enough positions focused on

critical analysis. Some goals are:

o To get a budget department to better manage the budgets and processed.

o To create succession planning in the financial units and ensure historical

knowledge is transferred.

o Make it possible to pull data and present information in a meaningful way

o Work smarter and more efficiently

Trustee Callan asked for a copy of the final EFPR report.

Trustee Callan asked for an official dialogue regarding the ERP project in terms of

financial needs and how we will pay for it. The go live dates are moving from July

to September, there will be a steering committee Thursday to finalize what they have

discovered and for agreement going forward. Trustee Callan asked who the

members of the Steering Committee were, since he never heard back from CIO

Lahkavani.5 After that EVPAF Howard will be able to share more information.

Trustee Callan requested Dr. Hocoy to attend next meeting, get a report on where he

stands with Development and Fundraising. EVPAF Howard suggests a dialogue

about reducing the frequency of Committee meetings with more quarterly reports,

with thoughtful consideration regarding due dates of county items.

7. Follow Up Items:

Motion to adjourn the Financial Health Committee meeting at 6:20 pm

Motion: Trustee Callan

Second:

8. Next Meeting: TBD

1 From page 2 2 From page 3 the information below answered both end note one and two

Questions surrounding the OPEB liability. Liability increased as follows (as disclosed in FS):

8

of 11


2017 2016 2015

Annual Required Contribution ("ARC") 16,824,679.00 15,371,862.00 11,808,246.00

Interest on OPEB Obligation 3,162,064.00 2,817,108.00 2,612,137.00

Adjustment to ARC (4,408,867.00) (3,927,894.00) (3,642,103.00)

Annual OPEB Cost 15,577,876.00 14,261,076.00 10,778,280.00

Less: Contributions (5,500,313.00) (6,238,843.00) (6,011,514.00)

Increase in OPEB 10,077,563.00 8,022,233.00 4,766,766.00

OPEB Beginning of Year 73,536,371.00 65,514,138.00 60,747,372.00

OPEB End of Year 83,613,934.00 73,536,371.00 65,514,138.00

2016 Valuation:

Per actuarial valuation report—changes in assumptions and methods:

Mortality assumption updated to the RP-2014 Mortality tables, adjusted backwards to 2006

using Scale MP-2014 and then adjusted for mortality improvements using Scale MP-2015.

Update in mortality resulted in decreased liabilities.

Prescription drug short-term trend rate schedule was revised to better reflect future

expectations based on review of published national trend survey data in relation to retiree

health plan offerings. Revised assumption resulted in increase liabilities.

Turnover and retirement assumptions were revised to update the actuarial assumptions for NYS

governmental employers released in 2015. Revised assumption resulted in decreased liabilities.

2017 Valuation:

Per actuarial valuation report—changes in assumptions and methods:

Mortality assumption was revised to the sex-distinct RP-2014 mortality tables, adjusted

backwards to 2006 using Scale MP-2014, and then adjusted for mortality improvements using

the scale MP-2017. The revised assumption resulted in decrease liabilities.

Annual rate of increase in healthcare costs were revised to better reflect future expectations,

including updating long-term rates based on Society of Actuaries long-term healthcare trends

Model v2018_C, with adjustments made based on LMHF expectations for short-term pre-65

medical and Rx Trend. The revised assumption resulted in decrease liabilities.

Rates of turnover and retirement were revised based on 7/1/09 to 6/30/14 experience study

related by the retirement systems for NYS TRS. Revised tables have been used for employees as

of 12/31/17 to better reflect future expectations. Revised assumption results in increase

liabilities.

A delay in Affordable healthcare act excise tax from 2020 to 2022 resulted in decrease liabilities.

Please refer to the attached valuation for further details.

Page 154—Fees for Service expense category is overbudget?

This is due to insufficient funds budgeted to the corporate training program. In 2017,

the program had expenses of $582,149 with a budget of $147,515. The budget for 2018

is $186,000, with current YTD expenses (as of 2.28.18) of $609,372. YTD revenues are

9

of 11


$477,581, it is anticipated revenues will continued to be collected through 8/31. The

program is profitable and in 2017 generated $205,776 excess revenues over expenses.

Page 169—Vendor inquiry:

PLS III, LLC--$153,750—intercampus shuttle service

BH Photo/Video--$98,325—ITS equipment audio/visual components for smart

classrooms

Page 193-196—What happens to surplus equipment?

Surplus (non-IT equipment); the department will contact maintenance to pick-up. The

equipment is brought to the north campus basement. Erie County personnel periodically come

by to pick through the equipment, anything that the County does not take is scrapped. Funds

that are received from sale of scrap are deposited to an ASC account.

Surplus (ITS equipment); the College has a reverse bid with a company called Maven, who picks

up disposed ITS equipment periodically and provides a certificate of destruction. The College

receives a small percentage of $ for the scrapped equipment and deposits it back into the ITS

budget.

3 Definitions for LMHF from page 5:

Each week, BCBS (medical insurer) and PBD (pharmacy insurer) sends claims invoices to the

LMHF and from this office, we pay those claims to each of the respective carriers. At the end

of the month, BCBS sends us a monthly report evidencing the same, so that we are able to

compare those claims, against what was actually paid. At each monthly LMHF Board meeting,

we present the Board of Directors and Trustees with an account of the financials.

At the top of the report, is the individual group’s maximum (the total amount, per month that

can be spent on claims utilization). At the beginning of the year, rates are set at that maximum.

As you may know, the LMHF is under a Minimum Premium arrangement. There is a per

member, per month rate which sets the max. ECC pays medical claims as they occur, so if a

month happens where there is a surplus, ECC will keep those funds. However, for example: If

ECC has a health surplus through June, but a deficit in July, BCBS can go back and ask to

recover any surpluses that were acquired during prior periods (up to the max) in order to cover

the deficit. The RX account is a little different – the LMHF sends an invoice to ECC for a total

dollar amount, per month, and this office pays claims to PBD from the ECC RX account. If

there are funds left over at the end of the year, ECC will receive those dollars in the form of a

credit against future invoices.

With that being said, here is how to read the monthly report:

10

of 11


The first section is the income side. What comes into the LMHF.

- Health Admin is invoiced by BCBS and is based on all membership in your population. - Health Max is set by BCBS based on your population (described above - the amount

that ECC will never pay above in any given month for health claims). - RX Premium Max is your RX maximum (the amount that ECC will never pay above in

any given month for RX claims). - RX EGWP Advanced Credit – This is a dollar amount set by PBD that was negotiated

in the rate to offset claims for Medicare Advantage retirees. - RX PBD Advanced Credit – This is the same form of credit but to offset claims for the

Active population.

The next section is what was actually paid:

- Health Admin Paid is the amount billed by BCBS. You will see from the top section “Health Admin”, it is just an in-and-out dollar amount.

- Health Claims Paid are medical claims invoiced and paid. - Stop Loss credit is called out separately to show when credits are received from claims

that have hit the stop loss threshold. These credits are applied to current invoices, as they happen.

- RX claims paid are pharmacy claims billed and paid

The enclosed sections are the health max, against the health claims and surplus or deficit in a

given month or YTD; and the following is the same for the RX.

The overall performance is the health and RX max against the health and RX claims and the

percentage of surplus of deficit.

The very bottom is a running total of rebates that may be used to offset future rate.

4 From page 5, disposal of material:

After speaking with Matt N. in maintenance and Joe L. in ITS that the ITS scrap equipment funds are

coming back to the college budget and maintenance is being deposited to an ASC account for some

reason; I am wondering if the maintenance money should be coming back to the college? Although not a

lot of money, but I believe the funds should be allocated back to the source from which the purchase

was made.

11

of 11


5 Workday Steering Committee members—Meena Lakhavani, Mike Pietkiewicz, Rick Washousky, Tracey Cleveland, Fabio Escobar, John Elnicky, Nora Clark, George DeRosa, Dan Hocoy, Colleen Quinn, Steven Smith, Penelope Howard, Paul Lamanna

12

Auxiliary Services Corporation 4041 Southwestern Blvd. Of Orchard Park, NY 14127

Erie Community College, Inc Phone (716) 851-1260 Fax (716) 851-1261

AUXILIARY SERVICES CORPORATION

QUARTERLY FINANCIAL REPORT DECEMBER 2017 – FEBRUARY 2018

SUBMITTED TO THE FINANCIAL HEALTH SUBCOMMITTEE

OF THE ECC BOARD OF TRUSTEES

Financial summary for the Second Quarter of Fiscal Year 2017/18:

Results of ASC operations for December 2017 through February 2018 indicate a quarterly loss of

$43,685. This is $5095 ahead of the budget for the quarter. Year to date we are operating very

close to budget overall (only down by $5926).

The Business Office revenue for the second quarter is $32,075 less than budget due to decreased

bookstore sales/commissions. Business office expenses are also less than budget by $12,058 due

to obtaining better insurance premiums than we had budgeted for and also receiving a Workers

comp credit from the prior year.

Childcare operations have a positive variance to budget of approximately $33,256 for the second

quarter. This was expected due to the timing of the receipt of the childcare Financial Aid tuition

deferments vs. when they were budgeted.

Food Service sales for the second quarter are below budget by $9849. Several factors

contributed to the lower sales: a snow day closure at South in December, lower than anticipated

sales in the K Kiosk at North in January and February after some classes moved to the STEM

Building, and vending commissions not meeting budget. (The vending commissions will

eventually meet the total annual budget due to minimum guarantees though).

Respectfully Submitted by,

Susan Holdaway

Executive Director of Auxiliary Services

13

Auxiliary Services Corporation---2017-2018 Actual Results by Month; YTD Actual, Budget & Variance, Annual Budget.*** YTD

Actual/ 2017-2018Budget Annual

Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug YTD Actual YTD Budget Variance Budget

Business Office (21) & College Support (28) ---Revenues 194,328 81,970 8,313 9,325 124,737 22,022 0 0 0 0 0 0 440,694 443,246 (2,552) 677,204Expenditures 44,054 42,524 50,081 41,976 42,150 37,649 0 0 0 0 0 0 258,434 273,158 (14,724) 535,941College Support 3,651 69,185 39,797 3,563 3,574 4,311 0 0 0 0 0 0 124,080 128,576 (4,496) 165,991Income/(Loss) 146,623 (29,739) (81,565) (36,215) 79,013 (19,938) 0 0 0 0 0 0 58,180 41,512 16,668 (24,728)

Childcare (29) ---Revenues C 33,012 31,368 27,680 27,978 24,257 22,971 0 0 0 0 0 0 167,265 166,659 606 273,679Revenues N 27,223 28,743 28,487 47,265 21,384 23,337 0 0 0 0 0 0 176,440 180,862 (4,422) 324,080Revenues S 19,726 22,665 22,503 23,022 16,665 16,371 0 0 0 0 0 0 120,953 120,158 795 212,971Revenues 79,961 82,777 78,670 98,266 62,306 62,679 0 0 0 0 0 0 464,658 467,679 (3,021) 810,730Expenditures C 39,134 36,102 29,257 25,302 24,190 25,548 0 0 0 0 0 0 179,533 171,639 7,894 280,243Expenditures N 40,806 43,583 37,360 29,706 30,181 34,287 0 0 0 0 0 0 215,922 218,742 (2,820) 353,610Expenditures S 26,677 31,583 25,955 21,320 19,428 22,510 0 0 0 0 0 0 147,473 148,424 (951) 226,491Expenditures 106,617 111,267 92,572 76,328 73,799 82,345 0 0 0 0 0 0 542,928 538,805 4,123 860,344Income/(Loss) C (6,122) (4,734) (1,578) 2,676 67 (2,577) 0 0 0 0 0 0 (12,267) (4,980) (7,287) (6,564)Income/(Loss) N (13,583) (14,839) (8,872) 17,560 (8,798) (10,950) 0 0 0 0 0 0 (39,483) (37,880) (1,603) (29,530)Income/(Loss) S (6,951) (8,918) (3,452) 1,702 (2,762) (6,139) 0 0 0 0 0 0 (26,520) (28,266) 1,746 (13,520)Income/(Loss) (26,656) (28,491) (13,902) 21,938 (11,494) (19,665) 0 0 0 0 0 0 (78,270) (71,126) (7,144) (49,614)

Foodservice (23) --- Revenues C 58,537 54,479 46,537 29,107 33,990 39,986 0 0 0 0 0 0 262,636 261,230 1,406 402,984Revenues N 42,240 51,101 38,218 32,883 25,428 31,371 0 0 0 0 0 0 221,241 232,419 (11,178) 358,079Revenues S 39,621 45,397 32,473 20,852 29,569 28,827 0 0 0 0 0 0 196,739 199,613 (2,874) 319,202Revenues 140,398 150,977 117,228 82,841 88,988 100,184 0 0 0 0 0 0 680,616 693,262 (12,646) 1,080,265Expenditures C 60,990 60,082 49,767 36,979 36,507 46,833 0 0 0 0 0 0 291,157 296,304 (5,147) 457,991Expenditures N 41,399 45,156 35,275 34,753 29,889 32,485 0 0 0 0 0 0 218,957 212,511 6,446 323,280Expenditures S 49,107 53,223 44,828 33,403 39,855 38,635 0 0 0 0 0 0 259,053 257,547 1,506 420,932Expenditures 151,497 158,462 129,869 105,136 106,251 117,953 0 0 0 0 0 0 769,167 766,362 2,805 1,202,203Income/(Loss) C (2,452) (5,604) (3,230) (7,872) (2,516) (6,847) 0 0 0 0 0 0 (28,521) (35,074) 6,553 (55,007)Income/(Loss) N 840 5,944 2,944 (1,870) (4,461) (1,113) 0 0 0 0 0 0 2,284 19,908 (17,624) 34,799Income/(Loss) S (9,486) (7,826) (12,355) (12,552) (10,286) (9,808) 0 0 0 0 0 0 (62,314) (57,934) (4,380) (101,730)Income/(Loss) (11,099) (7,486) (12,641) (22,294) (17,263) (17,768) 0 0 0 0 0 0 (88,551) (73,100) (15,451) (121,938)

Combined---Revenues 414,686 315,723 204,211 190,432 276,030 184,885 0 0 0 0 0 0 1,585,969 1,604,187 (18,218) 2,568,199Expenditures 305,818 381,439 312,319 227,003 225,773 242,257 0 0 0 0 0 0 1,694,609 1,706,901 (12,292) 2,764,479Income/(Loss) 108,868 (65,715) (108,108) (36,571) 50,257 (57,371) 0 0 (108,640) (102,714) (5,926) (196,280)

CONFIDENTIAL

thru February 28, 2018

14

Certified Public Accountants | 280 Kenneth Drive, Suite 100 | Rochester, New York 14623 | 585.427.8900 | EFPRGroup.com

16

The College does not have a position designated as the Budget Director.

oooooooo

o

19

There is a significant deficiency among current personnel in regard to knowledge of how the College’s budget has historically been developed.

The College should consider whether other budgeting methodologies would be beneficial in developing a more accurate and fiscally conservative budget.

20

The College does not have a position designated as the Associate Vice President of Finance.

o

o

o

o

o

oo

o

Appendix A – Current Organization Chart and Appendix B – Proposed Organization Chart

21

The Bursar is currently at a management level that is part of the Business Manager’s area of responsibility.

22

Appendix A – Current Organization Chart and Appendix B – Proposed Organization Chart

6. As part of this review we documented a number of the Finance Office processes and developed accompanying flow charts. As a result of our procedures we noted the following internal control areas that could be strengthened:

23

ECC should consider modifying the monthly financial reporting provided to the Financial Health Committee of the Board of Trustees

Financial reporting to the Financial Health Committee does not appear to include metrics or analysis related to ECC’s strategic plan

27

IMPLEMENTATION OF ENTERPRISE RESOURCE PLANNING SOFTWARE:

28

The Finance Office appears to utilize a large number of part time staff that creates challenges in securing and/or retaining qualified staff.

Appendix A – Current Organizational Chart

The Accounts Payable process is labor intensive and is comprised of mostly manual procedures with little automation.

29

Employee expense reimbursements for business related expenses are currently processed by issuing checks through the Accounts Payable function.

The Ellutian Colleague accounting software has limitations that create inefficiencies for the Grants Management function in complying with the financial reporting requirements of the grant’s sponsors.

30

The Grants Management function processes check payments for claims related to the use of grant funds, creating some redundancy with the primary Accounts Payable function.

31

APPENDIX CErie Community CollegeProcess Flow Chart

Bank Reconciliation of Operating and Payables Account

20

35

21

APPENDIX DErie Community CollegeProcess Flow Chart

Bank Reconciliation of Payroll Account

36

22

Erie Community CollegeAPPENDIX E

Process Flow ChartPurchasing

37

APPENDIX FErie Community College

Vendor MaintenanceProcess Flow Chart

23

38

APPENDIX HErie Community College

Process Flow Chart Grant Administration

25

40

26

APPENDIX IErie Community CollegeProcess Flow ChartGrant Disbursements

41

APPENDIX JErie Community CollegeProcess Flow ChartBursar Cash Receipts

27

42

APPENDIX KErie Community CollegeProcess Flow Chart

Bursar Cash Disbursements

28

43

APPENDIX MErie Community College

Process Flow ChartAccounts Receivable Allowance for Bad Debts

30

45

APPENDIX NErie Community CollegeProcess Flow Chart

Fixed Asset Inventory

31

46

32

APPENDIX OErie Community College

Process Flow ChartGeneral Ledger Close and Financial Reporting

47

agenda - suny erie health...1. call to order 2. approval of minutes - page 2 motion to approve the...

Documents