ACCJC SPECIAL REPORT DUE TO FINANCIAL REVIEW CONTACT: DR. VICTOR JAIME, ED.D DUE: APRIL 15, 2014

ACCJC Required & Progressive Reports 1. Follow-Up Report – when the institution must provide evidence that demonstrates it has addressed recommendations and resolved deficiencies identified Due on specific to Planning, SLOs, and Finances 2. Special Report – when significant concerns are raised, the institution must provide information and evidence to address the specifics listed in a formal letter Due on specific to Financial Status * These are two separate Reports, the commission will act on each of these independently at the June 4 – 6, 2014 Meeting.

Accreditation Actions  Full Accreditation  Accreditation with a Follow-up  Warning * IVC is currently on Warning Status  Probation  Show-Cause - when an institution must demonstrate why its accreditation should not be withdrawn

Special Report to the Commission  “At its meeting of January 8 – 10, 2014, ACCJC acted to direct that IVC provide a Special Report to the Commission by April 15, 2014”  The Report must address the required elements of the Financial Reviewer Panel Report of September 12 – 13, 2013  The Commission will consider the College’s Special Report at its meeting of June 4 – 6, If conditions warrant, the Commission may act on the accredited status of the College

Special Report Purpose is…  To provide current information about our compliance with Accreditation Standards.  Address required elements of Financial Reviewer Panel Permanent fixed costs resulting from mandated entitlements in collective bargaining contracts. Financial planning, sound financial practices, and financial stability. Specific Standards: III.D.1.a, III.D.1.b, III.D.2, III.D.3, and III.D.4

Why the Special Report is Required ACCJC has stated in it’s report 1. IVC as “Does not appear to be a going concern” Financial term indicating the District does not have the ability to make enough money to stay afloat or avoid bankruptcy 2. “Unless significant modifications occur the college will be insolvent. The Commission should monitor this situation to determine actions taken to reduce the permanent fixed cost structure as described.”

Standard III D – Financial Resources  Financial resources are sufficient to support student learning programs and services and to improve institutional effectiveness.  The distribution of resources supports the development, maintenance, and enhancement of programs and services.  The institution plans and manages its financial affairs with integrity and in a manner that ensures financial stability.  The level of financial resources provides a reasonable expectation of both short-term and long-term financial solvency.  Financial resources planning is integrated with institutional planning at both college and district/system levels in multi- college systems.

III.D. Specifics that Must be Addressed III.D.1: The institution’s mission and goals are the foundation for financial planning. a: Financial planning is integrated with and supports all institutional planning. b: Institutional planning reflects realistic assessment of financial resource availability, development of financial resources, partnerships and expenditure requirements.

III.D. Specifics that Must be Addressed III.D.2: To assure the financial integrity of the institution and responsible use of its financial resources, the internal control structure has appropriate control mechanisms and widely disseminates dependable and timely information for sound financial decision making.

III.D. Specifics that Must be Addressed III.D.3: The institution has policies and procedures to ensure sound financial practices and financial stability. III.D.4: Financial resource planning is integrated with institutional planning. The institution systematically assesses the effective use of financial resources and uses the results of the evaluation as the basis for improvement of the institution.

Specifics that Must be Addressed  High Permanent Fixed Costs: Staff  Classified support staff salary schedules 15 step increments per track 5% increase per step

Specifics that Must be Addressed  High Permanent Fixed Costs: Enrollment Management  Low minimum enrollment for a class to go with a provision that classes cannot be cancelled for low enrollment

Specifics that Must be Addressed  High Permanent Fixed Costs: Faculty  “Significant amounts of release time to complete administrative work”  “Nearly 50% over the FON required by the state.” Required number is 108 and IVC is 158.  “Additional contract days up to 199 from 177 for a number of faculty who work as coordinators”  “Faculty paid at 100% of their full-time rate for overload and intersession teaching assignments”

Specifics that Must be Addressed  High Permanent Fixed Costs:  Child Development Center Fund Unrestricted general fund is paying for shortages occurring in the Child Development Center Fund College has not acted to control costs when revenue was reduced College paid or subsidized by augmenting with funds to pay all costs incurred Taking a priority status that has not been discussed

Specifics that Must be Addressed  High Permanent Fixed Costs: Categorical Programs  Categorical Programs or other programs that recevie categorical or specially restricted revenue from the State to provide specific additional services to students who meet eligibility requirements College has not acted to control costs when revenue was reduced College paid or subsidized by augmenting with funds to pay all costs incurred. Taking a priority status that has not been discussed

Specifics that Must be Addressed  Declining Revenues: Reserves  “Rapidly declining fund balance caused by lack of action to address imbalance between revenue and expenditures” Ending Reserves6,877,8555,038,5782,776,9633,296,7002,781,7612,488,710 % of Budget18.68%13.0%7.2%8.9%8.02%7.45%

Specifics that Must be Addressed  Declining Revenues: Enrollment (FTES)  “Enrollment is also declining rapidly” Actual FTES7,0867,4267,1327,2906,1196,219 Funded FTES6,8007,2066,9297,1026,5596,219 Total Revenue35,245,29437,789,82436,531,54237,511,10934,177,46033,594,368

The College’s Response to the Special Report  Highlight areas in which the college has addressed:  Negotiated progress with Represented and Non- Represented groups as recommended by FCMAT  Progress in implementing other FCMAT Recommendations  Board Resolutions to address Long-Term Financial Stability (Reserve Level, etc)  Demonstrate that the Budget matches On- going Revenue with On-going Expenses

Timeline of Events February 7, 2014 ACCJC Special Report letter received by Dr. Jaime March 15, 2014 Follow-up Report is due March 15 – May 31, 2014 Follow-up Visit by ACCJC Team April 15, 2014 Special Report must be received by ACCJC June 4-6, 2014 ACCJC reviews Follow-up Report & Special Report to: 1. Accept the Reports and grant full Accreditation 2. Continue the College’s Warning Status 3. Act to move the College to a more severe sanction July, 2014 College is notified of the Commission’s Action

Special Report: More to Come  March 15, 2014 Board of Trustees Retreat will have a presentation and Facilitated Discussion regarding the Special Report Response  We are All in this Together, this is the time when we must all work together!