RVCC 2019 NECHE Self-Study

and the recognition of a gain of $2.35 million to correct a State of New Hampshire error on bond debt
that had been incorrectly allocated to CCSNH, offset by a decrease in investment income of $458
thousand.
Nonoperating revenues and other changes in net position increased by $889 thousand in 2017 driven
by strong market performance, which offset some decreased revenue in capital appropriations.
Operating expenses
Fiscal year 2018 operating expenses remained relatively stable to fiscal year 2017, increasing by about
$216 thousand (.17%).
Salaries and benefits declined by approximately $1.42 million. This decrease was due primarily to an
overall decline in pension expense for FY18 of $1.58 million relative to fiscal year 2017. OPEB expense
increased $382 thousand, due mainly to the adoption of GASB 75. Overall salaries and wages stayed
relatively stable, increasing by only $325 thousand (.50%), and employee benefits decreased by about
$544 thousand (3.1%) mostly due to decreases in health insurance and HRA account utilization. These
decreases were the result of a change in the mix of full time to part time employees, who are not eligible
for health insurance.
The system experienced increases in computer and software related expenses of $876 thousand due
to investments in new technologies to help support student success. We also saw an overall increase
in bad debt expense in fiscal year 2018 of $701 thousand. The increase in 2018 was due to a one-time
write down to correct certain accounts within the system and an increase of approximately $260
thousand in bad debt at MCC. However, the increase for MCC in 2018 was due only to the fact that
MCC had net recoveries in fiscal year 2017 but normal debt charge offs in 2018.
Fiscal year 2018 saw a decrease in consulting expenses of $483 thousand due to reductions in
enrollment for certain courses that utilize outside consultants for instruction. Additional decreases were
seen in marketing of $462 thousand (19%) due to some centralization of expenses at the system level
instead of individual campuses.
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