SACS Compliance Certification Report (PDF) - South Florida State ...

Student Services Professional StaffStudent Services Qualified Support Staff3.10.1Financial Resources: Financial stabilityThe institution’s recent financial history demonstrates financial stability.JudgmentCompliant Non-Compliant Not ApplicableNarrativeThe recent financial history of South Florida Community College (SFCC) demonstrates financial stability.This stability is evidenced in, and corroborated by the information in its independent audit reports,financial statements, and supporting schedules, as well as the financial ratios presented. There are nounusual financial conditions that require explanation.Financial StabilityMajor funding for SFCC comes from state appropriations. The process for allocating new funding to thecollege is defined by the state allocation/funding formula. The formula considers factors includingenrollment growth, cost of instruction, and academic and institutional support needs. Appropriations aremade each year by the state legislature. Each institution then manages its resources based on itsapproved budget. Other funding sources are provided through tuition and fees, gifts, grants andcontracts, auxiliary enterprises and various other sources. These funds comprise the entire collegebudget and the institution manages its resources based on an annual budgeting plan. The annual budgetis linked with institutional goals, initiatives and strategies through the operation of the planning calendar.(See Budget (Page 11)) for example including the college's planning calendar).The college has received an unqualified independent audit opinion on its Financial Statement audits forthe last four years and is part of the Statewide Federal Financial Audit. No reportable conditions wereidentified with respect to internal control and no matters of non-compliance were identified with respectto financial statements. No findings were noted with respect to the Circular A-133 audits of the majorFederal programs for the last four years. SFCC has been considered (by its auditor) as a “low riskauditee”(FYE 2006 Financial Audit, FYE 2007 Financial Audit, FYE 2008 Financial Audit, FYE2009 Financial Audit , FYE 2006 Statewide Federal Audit Report, FYE 2007 Statewide FederalAudit Report, FYE 2008 Statewide Federal Audit Report, and FYE 2009 Statewide FederalAudit Report). Operational audits for the past two bi-annual audits indicate some minor findingsrelated to operations and emerging issues. (FYE 2007 Operational Audit, FYE 2009 OperationalAudit ) FYE 2010 audit reports will be submitted under separate cover upon receipt.As discussed in response to criteria 2.11.1, per Florida Statute (FS) 1011.84, any time theunencumbered balanace in the general fund of community college board of trustees operating budgetgoes below five percent, the president shall provide written notification to the State Board ofEducation. This is a benchmark used within the Florida state college system to provide for a strongfinancial base. The college has had an ending fund balance exceeding 5% for the last five years. (Seecalculation at the end of Schedule 1 in the Annual Financial Reports; Annual Financial Report 2006FYE (Page 40), Annual Financial Report 2007 FYE (Page 42), Annual Financial Report 2008FYE (Page 48), Annual Financial Report 2009 FYE (Page 42), and Annual Financial Report2010 FYE (Page 43)).A generally recognized indicator of financial health is a college’s net assets. As shown in the tablebelow, from fiscal year 2005-06 through fiscal year 2009-10 the college’s net assets (net of capital assetsand related debt) grew from $58,502,736 to $75,349,321, an increase of $16,846,585 or 28.79%. ThisincreaseSouth FloridawasCommunityachievedCollegeas significant expenditures were made for renovations and capital improvements.Page 158 / 202Summary of Net Asset Growth