City College of San Francisco - California Competes
City College of San Francisco - California Competes
City College of San Francisco - California Competes
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
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