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Helen Benjamin Chancellor Contra Costa CC District, CA Jean Floten President Bellevue College, WA Finance and Fund Raising: The President’s Role AACC Presidents’

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Presentation on theme: "Helen Benjamin Chancellor Contra Costa CC District, CA Jean Floten President Bellevue College, WA Finance and Fund Raising: The President’s Role AACC Presidents’"— Presentation transcript:

1 Helen Benjamin Chancellor Contra Costa CC District, CA Jean Floten President Bellevue College, WA Finance and Fund Raising: The President’s Role AACC Presidents’ Academy April 17, 2010

2 Resource Management 101  Unique role of the president  Pitfalls in budget review  Becoming “fearless with fundraising ”

3 Unique Role of President in Finances and Fund-raising The President is the chief steward and advocate for the college in this area.  As steward, the president manages and holds in trust the property, finances, and other affairs of the institution.  As advocate, the president represents the college in all matters.  You provide leadership and stewardship to others who follow your lead and watch your every move. Set a superior example. College assets do not belong to the president but are entrusted to the president for safe keeping and appropriate use.

4 Unique Role of President in Finances and Fund-raising  The president is the public face of the college.  Managing funds responsibly and with integrity are key presidential responsibilities.  Before the president can fund-raise, s/he must friend- raise.  Public trust and confidence are basic to effective fund- raising.

5 Keeping the College Financially Sound Develop a budget process that  Is simple and easy to understand  Provides for financial stability  Provides for an appropriate level of reserves consistent with board policy and direction  Is an integral part of the district/college planning process and related to goals and objectives  Provides means to address any current or future emphasis directed by the board of trustees  Promotes efficient use of district/college resources  Allows flexibility for “local” control with accountability  Is planned in a multi-year cycle.

6 Keeping the College Financially Sound President  Operate a balanced budget  Develop a nose for numbers, accounting logic and estimates  Keep a budget cushion  Have good accountability, internal controls/monitoring  Provide sound instructions to finance and budget staff  Fund-raise

7 Setting Aside Adequate Funds in Good Times for Tough Times  Rule 1: Estimate revenue conservatively  Rule 2: Develop a culture of planning where all requests are considered during annual budget development  Rule 3: Spend conservatively  Rule 4: Manage year-end balances  Rule 5: Keep an adequate reserve

8 Setting Aside Adequate Funds in Good Times for Tough Times  Establish a culture in which a conservative approach to District/college finances is the norm.  Develop values that include planning for an uncertain future.  Ensure policies and procedures are in place that require a certain level of reserves.  Ensure budget management procedures are in place for  monitoring internal and external factors that could change budget assumptions;  ensuring flexibility in the event of unanticipated changes in revenue, expenses or community needs.

9 Coping with Possible Layoffs and Cutbacks  Honestly  Courageously  Openly  Prudently

10 Coping with Possible Layoffs and Cutbacks  Build relationships  Explain budget situation  Carefully consider situation/timing  Establish planning council  Consider unique opportunities  Consider early retirements, furloughs  Be transparent  Meet with affected individuals/units/ unions before communicating plan  Treat affected employees with respect and dignity  Allow for appeals

11 Pursuing Diversified Funding Know your particular funding model  Tuition and fees  Grants, contracts  Online education  Community service and self-support programs  Auxiliary services  Partnerships: BHAGs  Foundations.”

12 Questions for CFOs  Has deficit spending been occurring? If so, how is it addressed?  Is the college fund balance stable or consistently increasing?  Are enrollments increasing, declining, or stable? Are staffing and other expenses adjusted consisted with enrollment trends?  Does the college have a consistent, board approved minimum reserve ?

13 Questions for CFOs  Are collective bargaining agreements settled within revenue sources in the last three years? Are the agreements affordable?  Is the college using one-time funds to pay for ongoing expenses?  Are internal controls in place to ensure financial integrity?  Is position control integrated with payroll?  What are the unfunded liabilities? Is there a plan to fund them?

14 Questions for CFOs  Headlines  Nobody told me…  Yikes! Now what…

15 Headlines  Audit finds college spent $1 million too soon Audit finds college spent $1 million too soon  XXXXX college $1 million short XXXXX college $1 million short  Bookkeeping error wasn't the first at college Bookkeeping error wasn't the first at college  College Program Under Scrutiny -- Audit Questions Use Of XXXX Kitchen College Program Under Scrutiny -- Audit Questions Use Of XXXX Kitchen

16 General College Health  Have an audit before or right after you are hired.  Request audits, whistleblower complaints for last five years. Issues or problems?  Facilities master plan? Severe problems; how immediate are they?  Current capital projects? Risk of going over budget?  Relationship with the City; impacts on building projects?  Pending lawsuits?

17 Budget Thermometer  How are you funded? What revenue can you count on? Where is risk?  Contracts sustainable?  Budget balanced? Reserves used?  How are reserves?  Overall debt? How solid is the source of funds paying it down?  Self-supporting programs/services? Risk?  Over-expenditures?

18 Three Pieces of Advice about Fund-Raising  If possible, establish an interdependent foundation (501 (c) 3) with the sole purpose of raising money for the college.  Hire a fund development expert to run the foundation and make that person an integral part of the college.  Develop a fund development plan in which the strategic directions of the college are reflected.

19 Three Pieces of Advice about Fund-Raising  Cultivate stages of giving  Understand that we must give to get  Build partnerships  Know it’s about business

20 Questions?

21 Fund-Raising Exercise


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