ACCJC SPECIAL REPORT DUE TO FINANCIAL

REVIEW

CONTACT: DR. VICTOR JAIME, ED.D

DUE: APRIL 15, 2014

ACCJC Required & Progressive Reports

1. Follow-Up Report – when the institution must provide evidence that demonstrates it has addressed recommendations and resolved deficiencies identifiedDue on 3-15-14 specific to Planning, SLOs, and Finances

2. Special Report – when significant concerns are raised, the institution must provide information and evidence to address the specifics listed in a formal letterDue on 4-15-14 specific to Financial Status

* These are two separate Reports, the commission will act on each of these independently at the June 4 – 6, 2014 Meeting.

Accreditation Actions

Full Accreditation Accreditation with a Follow-up Warning * IVC is currently on

Warning Status Probation Show-Cause - when an institution

must demonstrate why its accreditation should not be withdrawn

Special Report to the Commission “At its meeting of January 8 – 10, 2014, ACCJC

acted to direct that IVC provide a Special Report to the Commission by April 15, 2014”

The Report must address the required elements of the Financial Reviewer Panel Report of September 12 – 13, 2013

The Commission will consider the College’s Special Report at its meeting of June 4 – 6, 2014. If conditions warrant, the Commission may act on the accredited status of the College

Special Report Purpose is…

To provide current information about our compliance with Accreditation Standards.

Address required elements of Financial Reviewer Panel

Permanent fixed costs resulting from mandated entitlements in collective bargaining contracts.

Financial planning, sound financial practices, and financial stability.

Specific Standards: III.D.1.a, III.D.1.b, III.D.2, III.D.3, and III.D.4

Why the Special Report is Required

ACCJC has stated in it’s report 1. IVC as “Does not appear to be a

going concern” Financial term indicating the District does not have the ability to make enough money to stay afloat or avoid bankruptcy

2. “Unless significant modifications occur the college will be insolvent. The Commission should monitor this situation to determine actions taken to reduce the permanent fixed cost structure as described.”

Standard III D – Financial Resources

Financial resources are sufficient to support student learning programs and services and to improve institutional effectiveness.

The distribution of resources supports the development, maintenance, and enhancement of programs and services.

The institution plans and manages its financial affairs with integrity and in a manner that ensures financial stability.

The level of financial resources provides a reasonable expectation of both short-term and long-term financial solvency.

Financial resources planning is integrated with institutional planning at both college and district/system levels in multi- college systems.

III.D. Specifics that Must be Addressed

III.D.1: The institution’s mission and goals are the foundation for financial planning.

a: Financial planning is integrated with and supports all institutional planning.

b: Institutional planning reflects realistic assessment of financial resource availability, development of financial resources, partnerships and expenditure requirements.

III.D. Specifics that Must be Addressed

III.D.2: To assure the financial integrity of the institution and responsible use of its financial resources, the internal control structure has appropriate control mechanisms and widely disseminates dependable and timely information for sound financial decision making.

III.D. Specifics that Must be Addressed

III.D.3: The institution has policies and procedures to ensure sound financial practices and financial stability.

III.D.4: Financial resource planning is integrated with institutional planning. The institution systematically assesses the effective use of financial resources and uses the results of the evaluation as the basis for improvement of the institution.

Specifics that Must be Addressed

High Permanent Fixed Costs: Staff Classified support staff salary schedules

15 step increments per track 5% increase per step

Specifics that Must be Addressed

High Permanent Fixed Costs: Enrollment Management Low minimum enrollment for a class to

go with a provision that classes cannot be cancelled for low enrollment

Specifics that Must be Addressed

High Permanent Fixed Costs: Faculty “Significant amounts of release time to

complete administrative work” “Nearly 50% over the FON required by

the state.” Required number is 108 and IVC is 158.

“Additional contract days up to 199 from 177 for a number of faculty who work as coordinators”

“Faculty paid at 100% of their full-time rate for overload and intersession teaching assignments”

Specifics that Must be Addressed

High Permanent Fixed Costs: Child Development Center Fund

Unrestricted general fund is paying for shortages occurring in the Child Development Center Fund

College has not acted to control costs when revenue was reduced

College paid or subsidized by augmenting with funds to pay all costs incurred

Taking a priority status that has not been discussed

Specifics that Must be Addressed

High Permanent Fixed Costs: Categorical Programs Categorical Programs or other programs

that recevie categorical or specially restricted revenue from the State to provide specific additional services to students who meet eligibility requirementsCollege has not acted to control costs

when revenue was reduced College paid or subsidized by

augmenting with funds to pay all costs incurred.

Taking a priority status that has not been discussed

Specifics that Must be Addressed

Declining Revenues: Reserves “Rapidly declining fund balance caused

by lack of action to address imbalance between revenue and expenditures”

  2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Ending Reserves

6,877,855 5,038,578 2,776,963 3,296,700 2,781,761 2,488,710

% of Budget 18.68% 13.0% 7.2% 8.9% 8.02% 7.45%

Specifics that Must be Addressed

Declining Revenues: Enrollment (FTES) “Enrollment is also declining rapidly”

  2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Actual FTES 7,086 7,426 7,132 7,290 6,119 6,219

Funded FTES 6,800 7,206 6,929 7,102 6,559 6,219

Total Revenue 35,245,294 37,789,824 36,531,542 37,511,109 34,177,460 33,594,368

The College’s Response to the Special Report

Highlight areas in which the college has addressed: Negotiated progress with Represented and

Non-Represented groups as recommended by FCMAT

Progress in implementing other FCMAT Recommendations

Board Resolutions to address Long-Term Financial Stability (Reserve Level, etc)

Demonstrate that the 2014-15 Budget matches On-going Revenue with On-going Expenses

Timeline of Events

February 7, 2014 ACCJC Special Report letter received by Dr. Jaime

March 15, 2014 Follow-up Report is due

March 15 – May 31, 2014 Follow-up Visit by ACCJC Team

April 15, 2014 Special Report must be received by ACCJC

June 4-6, 2014 ACCJC reviews Follow-up Report & Special Report to:

1.Accept the Reports and grant full Accreditation2.Continue the College’s Warning Status 3.Act to move the College to a more severe

sanction

July, 2014 College is notified of the Commission’s Action

Special Report: More to Come

March 15, 2014 Board of Trustees Retreat will have a presentation and Facilitated Discussion regarding the Special Report Response

We are All in this Together, this is the time when we must all work together!