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City College of San Francisco - California Competes

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STANDARD III.D<br />

III. Strengths & Areas for Improvement<br />

1. The <strong>College</strong> has implemented a comprehensive<br />

budget planning system that integrates<br />

financial planning with institutional planning.<br />

There is a strong connection between the<br />

priorities contained in the Strategic Plan<br />

2003–2008 and the Annual Plan that the<br />

Planning and Budgeting Council recommends<br />

to the Board <strong>of</strong> Trustees each year. The<br />

institution clearly defines, widely distributes,<br />

and follows its guidelines and processes for<br />

financial planning and budgeting on an<br />

annual basis. Financial information is<br />

provided throughout the institution, both<br />

on paper and electronically, to a variety <strong>of</strong><br />

groups in a timely manner. The institution is<br />

committed to a budget planning process that<br />

relies on realistic assessments <strong>of</strong> available<br />

resources and strategic efforts for attracting<br />

additional resources. The <strong>College</strong> has been<br />

successful in its efforts to generate financial<br />

support from both grant agencies and private<br />

donors.<br />

The institution considers its long-range<br />

financial priorities to assure financial<br />

stability in making short-range financial<br />

plans. When state revenues slumped, the<br />

institution managed its reserve funds in<br />

an intelligent manner to meet the goal <strong>of</strong><br />

protecting direct spending for students.<br />

To ensure its long-term fiscal stability, the<br />

<strong>College</strong> needs to develop and implement<br />

a comprehensive plan to match ongoing<br />

spending with ongoing revenue. Therefore,<br />

the <strong>College</strong>’s Planning and Budgeting Council<br />

will be reviewing proposals for ongoing<br />

savings during the Fall 2005 semester in<br />

anticipation <strong>of</strong> the need to reduce spending<br />

during the 2006-07 fiscal year. In addition,<br />

the institution needs to address the cost <strong>of</strong><br />

retiree health benefits which represents a<br />

significant financial challenge in the future.<br />

2. Financial documents, including the budget<br />

and the independent audit, reflect appropriate<br />

allocation and use <strong>of</strong> financial resources to<br />

support student learning programs and<br />

services. The <strong>College</strong> focuses spending on<br />

student learning as evidenced by its history<br />

<strong>of</strong> high numbers related to the “fifty percent<br />

law” and the “seventy-five percent law.” While<br />

resources for the support <strong>of</strong> student learning<br />

programs and services are not optimal, the<br />

institution has made informed and intelligent<br />

decisions in a Shared Governance setting<br />

related to the distribution <strong>of</strong> these relatively<br />

scarce resources.<br />

3. The <strong>College</strong> has sufficient cash flow and<br />

reserves to maintain stability, strategies for<br />

appropriate risk management, and realistic<br />

plans to meet financial emergencies and<br />

unforeseen occurrences. The institution<br />

has made concerted efforts to meet the State<br />

Chancellor’s guidelines for a 5 percent fund<br />

balance and acknowledges how difficult that is<br />

during under-funded years. While the <strong>College</strong><br />

needed to transfer an additional $800,000<br />

from its reserve for the 2005-06 budget, the<br />

administration recognizes the need to rebuild<br />

the reserve exclusive <strong>of</strong> the value <strong>of</strong> its longterm<br />

prepaid lease over the next several years.<br />

The cash flow needs <strong>of</strong> the District have been<br />

supported through the issuance <strong>of</strong> TRANS, and<br />

risk management needs are handled through<br />

SWACC.<br />

4. The institution practices effective oversight <strong>of</strong><br />

all <strong>of</strong> its finances. Its most recent audit report,<br />

issued for fiscal year 2004, was unqualified<br />

and did not identify any material weaknesses.<br />

The findings <strong>of</strong> that external audit were<br />

addressed promptly. The institution monitors<br />

finances not only for the <strong>College</strong> itself but<br />

also for the auxiliary bookstore and separate<br />

foundation as well. The institution makes<br />

extensive efforts to connect spending with<br />

planning, and has consistently done so with<br />

CITY COLLEGE OF SAN FRANCISCO<br />

219

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