Committee on Finance and Administrative Services + Board of Trustees
City Colleges of Chicago
Education
Remote
This is a remote assignment, though we expect most of the board will be meeting in person. This meeting will be live-streamed at https://www.youtube.com/user/citycollegeschicago/videos. If you do not see the meeting video immediately you may be early or the board may be running late; give it a few moments and try refreshing your Internet tab.
For this assignment you will be documenting the following back-to-back meetings:
- 12:30 p.m.: Committee on Finance and Administrative Services
- 2:00 p.m.: Board of Trustees
Check the source website for additional information
Reporting
Edited and summarized by the Chicago - IL Documenters Team
Note-taking by
Chloe Vitale
Gift of Hope organ and tissue donation network partnership, FY2021 audit
Live reporting by
Sonal Soni
Gift of Hope organ and tissue donation network partnership, FY2021 audit
Sonal Soni (They/Them)
@sonal_soni_
Good afternoon #Chicago! I’ll be livetweeting today’s @ChiCityColleges Finance & Admin. Services meeting at 12:30 followed by the Board of Trustees meeting at 2:00 for @CHIdocumenters #CHIdocumenters ⬇️⬇️
Grab your coffee/mid day beverage and follow along to this thread☕️🧵
Grab your coffee/mid day beverage and follow along to this thread☕️🧵
12:08 PM Dec 9, 2021 CST
Both meetings will be live-streamed: youtube.com/user/citycolle…
Currently waiting for the Finance and Admin. Services meeting to commence.
Currently waiting for the Finance and Admin. Services meeting to commence.
The meeting has started and quorum has been reached. Trustee Darrell Williams welcomes members in person at Harold Washington College, noting this is the third in person meeting since the start of the pandemic.
Williams highlights some important agenda items including a financial update from chief financial officer Maribel Rodriguez.
There will also be a presentation from external auditors.
Find more agenda items here: ccc.edu/departments/Do…
There will also be a presentation from external auditors.
Find more agenda items here: ccc.edu/departments/Do…
CFO Rodriguez begins her portion of the agenda. In today’s meeting, external auditors will do a presentation on CCC’s 2021 financial audit.
Rodriguez will also present the 2022 first quarter preliminary financial forecast.
Rodriguez will also present the 2022 first quarter preliminary financial forecast.
“The mission of Internal Audit is to provide independent, objective assurance and consulting services designed to improve the City Colleges of Chicago operations.”
Read more here: ccc.edu/departments/pa…
Read more here: ccc.edu/departments/pa…
Rodriguez will also be joined by Associate Vice Chancellor of Financial Aid and Scholarships, Richard Hayes along with District Director of Student Finance Aretha Tharps.
The financial presentation is underway.
The financial presentation is underway.
Senior RSM manager Kelly Kirkman starts off the presentation and first reviews the audit process.
RSM is consulting service, expressing opinions on financial statements.
Kirkman notes that RSM issued an unmodified opinion on CCC’s financial reports this year.
RSM is consulting service, expressing opinions on financial statements.
Kirkman notes that RSM issued an unmodified opinion on CCC’s financial reports this year.
An unmodified opinion “is a clean opinion, the best opinion you can get and it’s also consistent with prior years,” according to Kirkman.
RSM found no issues on CCC’s financial statements this year.
RSM found no issues on CCC’s financial statements this year.
Significant issues discussed with management includes the impact of Covid-19. Kirkman notes that the audit process took place in a hybrid setting, including both in person and virtual meetings. Overall operations went smoothly.
Kirkman also highlights the significant amount of emergency relief funding seen this year. This includes HEERF students funds of $20 mil, HEERF institutional funds of $30 mil, Minority Student funds of $2 mil and Gov. Emergency Relief funds of $4 mil.
CCC’s total expenditures totaled almost $21 mil in student and institutional funding over the course of 2021.
Some of that is revenue for CCC, but a lot of that spending was a result of adapting to a Covid-19 learning environment.
Some of that is revenue for CCC, but a lot of that spending was a result of adapting to a Covid-19 learning environment.
Kirkman elaborates on institutional financial highlights. In total CCC drew $32.2 mil in expenses, which was divided into two main pieces.
First, this emergency funding allowed CCC to compare previous years’ revenue to 2021 and were able to claim the difference in lost revenue.
First, this emergency funding allowed CCC to compare previous years’ revenue to 2021 and were able to claim the difference in lost revenue.
As a result, CCC claimed approx. $17.5 mil in lost revenue. The remaining $14 mil of institutional funds went towards Covid related expenses.
Within CCC’s financial statements, Kirkman notes that there are some areas that may require additional monitoring as they may have significant financial impacts. Some categories include property tax allowance, investment securities and student accounts. https://t.co/d13mt5aJGU
One change since last year: CCC has a student activity fund — cash owned by different student clubs, which is a new addition to this years’ financial statement. This small change resulted in restating $1.4 mil to record these funds.
Kirkman notes that there were no significant audit adjustments this year. There were also no disagreements with management and no need for additional consultations with accountants. Besides Covid related topics, RSM found nothing concerning regarding this year’s financials.
Kirkman notes that RSM found six issues under the single audit, but these are not unusual for colleges given the unprecedented nature of the pandemic.
On HEERF and GEER funds, CCC did not have significant documentation on internal controls regarding how funds were allocated.
On HEERF and GEER funds, CCC did not have significant documentation on internal controls regarding how funds were allocated.
RSM suggests implementing more documentation to better show where funds are going.
The next finding has to do with HEERF funds reporting. CCC did not publicly post certain required reports or did not do so on a timely basis. Some reports were also inaccurate.
The next finding has to do with HEERF funds reporting. CCC did not publicly post certain required reports or did not do so on a timely basis. Some reports were also inaccurate.
RSM also found improperly dispersed Pell Grants, where two students received funds they should not have.
Another issue includes lack of documentation on employment placement within short term programs. This is a non issue moving forward since these programs will not continue.
Another issue includes lack of documentation on employment placement within short term programs. This is a non issue moving forward since these programs will not continue.
The next issue on student financial aid includes submitting late documentation.
Find more details here: https://t.co/aMfaQTxafU
Find more details here: https://t.co/aMfaQTxafU
CCC has provided corrective action plans after assessing these issues.
That concludes the audit presentation.
It’s 2:00 and the Board meeting will commence shortly. I will outline more of this meetings key takeaways first.
That concludes the audit presentation.
It’s 2:00 and the Board meeting will commence shortly. I will outline more of this meetings key takeaways first.
To clarify, that concludes the RSM audit report.
The second presentation is now underway, presented by CFO Rodriguez who will cover CCC’s 2021 audit update.
The second presentation is now underway, presented by CFO Rodriguez who will cover CCC’s 2021 audit update.
There is some overlap between the two presentations. However, Rodriguez presents CCC’s operating financial results from this year.
Revenues were favorable to budget by $20.2 mil. Expenses were favorable by $20.9 mil. There was also an operating surplus of $6.8 mil.
Revenues were favorable to budget by $20.2 mil. Expenses were favorable by $20.9 mil. There was also an operating surplus of $6.8 mil.
View the audited results breakdown here: https://t.co/bKzFRSg69n
Some key takeaways from the report:
The $20.2 mil of revenue favorability helped offset costs including the tuition budget shortfall of $11.7 mil, due to enrollment declines.
The $20.9 mil of expense favorability also helped offset operating transfer funds.
The $20.2 mil of revenue favorability helped offset costs including the tuition budget shortfall of $11.7 mil, due to enrollment declines.
The $20.9 mil of expense favorability also helped offset operating transfer funds.
Rodriguez continues on to changes in net assets. The unrestricted assets improved by $33 mil to -$20 mil as of 6/21, which falls short of the recommend balance of at least $15 mil.
“It is important to note that the unrestricted fund balance significantly dropped by $76 mil in (2017).” This was due to policy changes, specially regarding GASB 84 — a type of financial implementation.
Read more on GASB 84 here: gasb.org/jsp/GASB/Prono…
Read more on GASB 84 here: gasb.org/jsp/GASB/Prono…
Rodriguez also notes that overall, in 2021 total net assets increased by $10 mil. The unrestrictive fund balance has improved by $94 mil since 2017.
More on changes in net assets from 2017-present: https://t.co/j1MN2YD3hy
More on changes in net assets from 2017-present: https://t.co/j1MN2YD3hy
This chart illustrates the districts’ operating cash balance from 2013-21. CCC had healthy cash reserves prior to the state budget impasse, where these funds were used to cover critical projects, depleting cash balances significantly.
In 2017 CCC fell below their min. amount. https://t.co/0FPRwJ8Cpa
In 2017 CCC fell below their min. amount. https://t.co/0FPRwJ8Cpa
Stimulus funds and spending reductions have led to CCC’s current cash reserves, which currently reside at $131 mil — this highest amount since 2015.
This slide summarizes the 2021 capital expenditures as well as CCC’s plan for 2022. CCC underspent this year due to delayed projects moving into 2022. https://t.co/QtZyqVSfRU
The 2022 capital budget plan totals $40.7 mil. Investments in information technology continue to be a focus for CCC, accounting for over 40% of the plan, according to Rodriguez.
An update on CCC’s 2022 first quarter operating fund: CCC forecasts a surplus of nearly $1 mil. On the revenue side, CCC predicts being unfavorable to budget by $2.2 mil, mainly due to projected tuition revenue shortfalls.
View the breakdown here: https://t.co/RfB6qH1Pyc
View the breakdown here: https://t.co/RfB6qH1Pyc
On the expense side, CCC projects a favorable outcome of $3.1 mil due to salary savings and other expenditure categories.
Next, Rodriguez presents CCC’s credit rating update.
Next, Rodriguez presents CCC’s credit rating update.
“We have good news to share,” Rodriguez says.
In 2021 CCC’s credit rating agencies reaffirmed CCC’s rating from negative to stable due to the colleges’ strengthened financial position.
That concludes the credit update. Rodriguez moves on to this years’ financial findings.
In 2021 CCC’s credit rating agencies reaffirmed CCC’s rating from negative to stable due to the colleges’ strengthened financial position.
That concludes the credit update. Rodriguez moves on to this years’ financial findings.
Richard Hayes and Aretha Tharps elaborate on CCC’s corrective action plans based off RSM’s findings which were presented on earlier.
The department of Ed. permits CCC to resubmit any insufficient reports over 2021, according to Hayes.
The department of Ed. permits CCC to resubmit any insufficient reports over 2021, according to Hayes.
“We did hire staff that will be monitoring Department of Ed. Correspondence as well as compliance,” Tharps says.
This is just one implementation to ensure more accurate reporting moving forward.
That concludes the CCC audit presentation.
This is just one implementation to ensure more accurate reporting moving forward.
That concludes the CCC audit presentation.
Meeting participants will now review proposed board actions prior to today’s BoT meeting.
These will be elaborated on in regular board meeting. This concludes the Committee on Finance and Admin. Services meeting.
These will be elaborated on in regular board meeting. This concludes the Committee on Finance and Admin. Services meeting.
On to the regular board meeting, which began at approximately 2 pm.
You can access this meeting’s livestream using this link: youtube.com/watch?v=OiurvS…
Quorum has been reached and the meeting is underway.
You can access this meeting’s livestream using this link: youtube.com/watch?v=OiurvS…
Quorum has been reached and the meeting is underway.
Find the meeting agenda here: ccc.edu/departments/Do…
Vice chair Walter Massey starts off the meeting by acknowledging the challenges of the pandemic. Massey also notes an upcoming Board retreat in January, the fourth of its kind.
Vice chair Walter Massey starts off the meeting by acknowledging the challenges of the pandemic. Massey also notes an upcoming Board retreat in January, the fourth of its kind.
Massey turns it over to the student trustee report, presented by Imran Fazal Hoque.
Some upcoming student initiatives include a charity drive hosted by Harold Washington College. Hoque also highlights events related to Native American History Month and more.
Some upcoming student initiatives include a charity drive hosted by Harold Washington College. Hoque also highlights events related to Native American History Month and more.
These events and initiatives are student led. Hoque elaborates on additional past and upcoming projects.
The meeting moves on to the chancellor’s update presented by Juan Salgado.
The meeting moves on to the chancellor’s update presented by Juan Salgado.
Salgado mentions the importance of getting vaccinated for Covid and encourages participants to sign up for boosters.
He also mentions family vaccination events held by CCC. Several have already taken place, with an upcoming event at Kennedy King College on Saturday.
He also mentions family vaccination events held by CCC. Several have already taken place, with an upcoming event at Kennedy King College on Saturday.
Harvey College will host a vaccination event this Sunday. Truman College will host an event on Dec. 18 and Malcolm X College will host one on Dec. 19.
Community members can attend these events to receive their free Covid vaccines or boosters. More will be held in January.
Community members can attend these events to receive their free Covid vaccines or boosters. More will be held in January.
Salgado asks the Board to approve wellness days for staff. These days allow employees to take time off to attend to their personal health and well-being.
If approved, full time workers would receive 3 paid days off while part time workers receive 1.
If approved, full time workers would receive 3 paid days off while part time workers receive 1.
“We recently received a grant to support our Be Well Chicago initiative which is focused on responding to trauma faced by city college students.”
These funds will help remove financial barriers by providing tele health services and more.
These funds will help remove financial barriers by providing tele health services and more.
After 2 years, CCC plans to return to an in person commencement ceremony in May. If approved, the event will take place at Wintrust Arena.
Salgado concludes the chancellor’s updates by highlighting various student achievements including academic recognition.
“We are here to serve our students and are ready to do so at every moment.”
The meeting is now open to public participation.
“We are here to serve our students and are ready to do so at every moment.”
The meeting is now open to public participation.
There are several public participation requests. Participants will have up to three minutes to present their comments to the board.
John Taylor starts the public comments. Taylor is currently an academic support specialist at CCC.
John Taylor starts the public comments. Taylor is currently an academic support specialist at CCC.
Last week’s contract negotiations appointed Juneteenth as a paid day off while Veterans Day was not.
Without a paid day off, thank you’s “(mean) nothing to me and my fellow veterans,” Taylor said.
Without a paid day off, thank you’s “(mean) nothing to me and my fellow veterans,” Taylor said.
Donna Murray presents next. Murray is a CCC alum and is currently a student at Harvey College under their cannibas education program.
“What I did not anticipate was how the education process would impact me.”
“What I did not anticipate was how the education process would impact me.”
The impact of learning about the war on drugs and lack of access to cannabis was actively traumatizing, Murray says.
As other colleges look to adopt Harvey’s cannabis program, Murray proposes creating an informative podcast to increase transparency.
As other colleges look to adopt Harvey’s cannabis program, Murray proposes creating an informative podcast to increase transparency.
Other public comments concern implementing greater student support services and more. This concludes the public speaker portion.
The meeting moves on to the faculty council report, presented by professor Keith Spewer.
The meeting moves on to the faculty council report, presented by professor Keith Spewer.
Faculty council (FC) has not held its regular meetings this month; instead they’ve met in smaller committees to work on prioritized issues.
FC requested the option to participate in board meetings remotely.
“As of last month, the issue was still being worked on...”
FC requested the option to participate in board meetings remotely.
“As of last month, the issue was still being worked on...”
“...while we appreciate that the item is being worked on, it is beyond me that over the course of close to 5 months, the institution has been unable to create the technological infrastructure to allow (remote participation).”
Sprewer notes that other institutions offered remote learning options well before the pandemic.
“We were also told there were plans to host some of the meetings at various colleges. That’s hasn’t happened to date either. This isn’t about convenience, it’s about access.”
“We were also told there were plans to host some of the meetings at various colleges. That’s hasn’t happened to date either. This isn’t about convenience, it’s about access.”
FC would like to see these issues resolved by next semester.
“This can be resolved if we desire it to be resolved,” Sprewer adds.
Other comments include restricting the hiring committee and faculty participation processes.
“This can be resolved if we desire it to be resolved,” Sprewer adds.
Other comments include restricting the hiring committee and faculty participation processes.
The next agenda item is a district update, outlining the proposed partnership between the Gift of Hope Tissue and Donor Network and Malcolm X College. This partnership has been 2+ years in the making. Today the board will consider officially authorizing the partnership.
Gift of Hope works to match those in medical need with lifesaving tissue and organ donor transplants.
The partnership will create a center at Malcolm X College as a hub for healthcare programs. Read more details here: https://t.co/U0ov5f5owA
The partnership will create a center at Malcolm X College as a hub for healthcare programs. Read more details here: https://t.co/U0ov5f5owA
A point of clarification: the center will not reside at Malcolm X College, instead it will reside at 7936 Cottage Grove Ave.
Here’s more on the location: https://t.co/3uADR345Br
Here’s more on the location: https://t.co/3uADR345Br
Moving on to the next agenda item: Review of Dec. 9 2021 Board Reports
The Board recaps the financial and audit findings presented on in the Finance and Admin. Services meeting earlier this afternoon. That concludes the Board Report portion.
The Board recaps the financial and audit findings presented on in the Finance and Admin. Services meeting earlier this afternoon. That concludes the Board Report portion.
We are nearing the end!
The second to last agenda item: approval of today’s board meeting packet.
The motion is unanimously approved.
The second to last agenda item: approval of today’s board meeting packet.
The motion is unanimously approved.
Finally, chair Massey motions for a closed session. The motion passes and the public portion of the Board meeting has concluded.
That concludes this thread! What a riveting day for CCC meetings.
Respond to this thread with questions/comments! Thanks for following along!
That concludes this thread! What a riveting day for CCC meetings.
Respond to this thread with questions/comments! Thanks for following along!
Attachments
Agency Information
City Colleges of Chicago
The Board of Trustees is the governing body of City Colleges of Chicago Community College District No. 508, which operates seven accredited colleges located throughout Chicago. The City Colleges of Chicago Board is comprised of seven voting members serving three-year terms as appointed by the Mayor with the approval of the City Council of Chicago. The Board includes one student trustee elected from one of the Colleges through a campus-wide election. For an overview of the Board of Trustees, including a link to where Board Reports (meeting agenda items and minutes), click here.
