merged area (education) v community college ... - iowa …

MERGED AREA (EDUCATION) V COMMUNITY COLLEGE DISTRICT IOWA CENTRAL COMMUNITY COLLEGE

ONE TRITON CIRCLE FORT DODGE, IA 50501

AGENDA FOR THE REGULAR MEETING OF THE BOARD OF DIRECTORS

Triton Café-Warren Hunt Conference Center, Room 100-101 December 10, 2019

5:00 PM

1 Return to Agenda

I. Call to OrderII. Approve AgendaIII. Recognition of Groups

A. Men’s and Women’s Cross Country and Half Marathon Teams

IV. Consent AgendaA. Minutes pgs. 4-7

November 12, 2019 regular Board meeting

B. Bills and Claims for Payment pgs. 8-19For the month ending November 30, 2019.

C. CommunicationsHiresMisty L. Stenzel:Business Office Coordinator; effective December 2, 2019; with salary at the annual rateof $34,464.00

ResignationsJacob R. Bennett:Enrollment/Recruiting Specialist; effective December 9, 2019Kerry J. Jacobson:Distance Learning Enrollment Coordinator; effective December 30, 2019.September F. Harris:Custodian; effective December 13, 2019.

TerminationsAshley R. Faiferlick:Health Sciences Associate; effective December 31, 2019.Lori L. Walton:Academic Resource Center Director; effective December 31, 2019.Nicklaus W. Sesker:Carpentry Program Construction Technician and Adjunct Instructor; effective December 31, 2019.

V. Adjournment of the Outgoing Board

VI. Call to Order of the New Board and Determination of a Quorum

VII. Oath of Office Filed by Newly Elected Board Members

VIII. New Board OrganizationA. Elections Appointments and Establishment of date and time for regular meetings:

1. Elect President2. Elect Vice President3. Appoint representative to Iowa Association of Community College Trustees4. Appoint alternate representative to Iowa Association of Community College

Trustees5. Appoint representative to Iowa Central Community College Foundation6. Appoint Secretary-Treasurer for 2019-2020 and establish bond for Secretary-

Treasurer7. Receive Oath of Office for Secretary-Treasurer8. Establish a date and time for regular Board meetings

IX. President’s Reports1. 2019-2020 Audit Report

The College Audit Report for 2018-2019 will need to be accepted, approved, and placedon file.

2. Resolution on Determination and Notification on Contract TerminationsIt may be necessary to have staff changes and possible cut backs for the 2020-2021year. A resolution must be in Board minutes permitting the necessary consideration andnotifications.

3. 2019-2020 Retirement Incentive ProgramThe Board is asked to approve the 2019-2020 Retirement Incentive Program.Information is attached.

4. Strategic Planning GoalsThe Board will be asked to approve the 2020-2023 Institutional Strategic Plan Goals

5. Foundation UpdateLarry Hecht will give an update on the Foundation Board

6. IACCT UpdateDarrell Determann will provide an update on the November Trustee’s meeting

7. Possible Closed Session on LitigationA closed session may be necessary to discuss litigation.

8. Possible Closed Session on Negotiations StrategyA closed session may be necessary to discuss negotiations strategy.

2 Return to Agenda

pgs. 42-43

pgs. 44-132

pg. 133

pg. 134

pg. 135

D. Secretary ReportsFinancial Reports: pgs. 20-41Attached are the General, Auxiliary, Plant, Agency, Scholarship, and Loan fund reports for the month ending November 30, 2019.

9. Possible Closed Session on PersonnelA closed session may be necessary to discuss personnel.

10. Possible Closed Session on Real EstateA closed session may be necessary to discuss real estate.

X. Board CommunicationA. Events, Notes, Etc.

XI. Unfinished Business

XII. New Business

XIII. Adjournment

The next regular meeting of the Board is scheduled for Tuesday, January 14, 2020.

3 Return to Agenda

pgs. 136-139

MERGED AREA (EDUCATION) V COMMUNITY COLLEGE DISTRICT IOWA CENTRAL COMMUNITY COLLEGE

ONE TRITON CIRCLE FORT DODGE, IOWA 50501

MINUTES FOR THE REGULAR MEETING OF THE BOARD OF DIRECTORS

Tuesday, November 12, 2019

The Board of Directors of Merged Area (Education) V Community College District (IOWA CENTRAL COMMUNITY COLLEGE) met in regular session at 5:00 p.m., Tuesday, November 12, 2019 in the Warren Hunt Conference Center of the Triton Café, One Triton Circle, Fort Dodge, Webster County, Iowa.

I. Call to Order The meeting was called to order by the President of the Board. The following members were found to be present: Tom Chelesvig, Mark Crimmins, Darrell Determann, Larry Hecht, Deb Loerch, Doug McDermott, Bennett O’Connor. Absent: Terri Wessels and Connie Smith. Also present for the meeting were President, Dr. Dan Kinney; Vice Presidents, Tom Beneke, Dr. Stacy Mentzer, Jim Kersten, and Angie Martin, Mary Ludwig; and Secretary, Ally Walter.

II. Approve Agenda Moved by Bennett O’Connor and seconded by Larry Hecht to approve, with addition of one hire. Motion carried unanimously.

III. Approve Consent Agenda 1. Approve Minutes

A. October 8, 2019, regular meeting and October 22, 2019, special meeting.

2. Approve bills and claims for payment A. For the month ending October 31, 2019

3. Communications

A. Accept Resignation(s):

Emily J. Holtapp: Student Records Coordinator; effective November 15, 2019.

4 Return to Agenda

Tracy Crippin-Haake: Advising and Success Coach; effective November 14, 2019.

4. Financial Reports:

For the General, Auxiliary, Plant, Agency, Scholarship, and Loan funds for the month ending October 31, 2019.

Moved by Darrell Determann and seconded by Tom Chelesvig to approve, as attached. Motion carried unanimously.

5. Added the following Hire to the agenda at the meeting. A. Accept Hire:

Gabrielle M. Sullivan: Housing Coordinator and Assistant Volleyball Coach; effective January 2, 2020; with salary at the annual rate of $30,630.00.

Moved by Larry Hecht and seconded by Deb Loerch to approve. Motion carried unanimously.

IV. President

1. General Obligation Refunding School Bonds: Not Needed.

2. 2019-2020 Retirement Incentive Program:

Moved by Tom Chelesvig and seconded by Larry Hecht to approve. Motion carried unanimously. 3. Program Closures:

The Board was asked to approve the closure of the following programs. A. Supply Chain Management B. Administrative Specialist C. Recreation and Facilities Management D. Digital Mass Communication E. EMT courses will be changed to non-credit courses.

Moved by Larry Hecht and seconded by Deb Loerch to approve. Motion carried unanimously.

4. Degree Approval:

The Board was asked to approve the following for degree options. A. Integrated Digital Arts B. Cyber Security

5 Return to Agenda

Moved by Bennett O’Connor and seconded by Tom Chelesvig to approve. Motion carried unanimously.

5. Enrollment Management Plan:

Presented

6. Holiday Dinner RSVP: Presented

7. ACCT Annual Congress Update:

Updated. 8. Possible Closed Session on Negotiations Strategy:

A closed session may be necessary to discuss negotiations strategy. Not needed.

9. Possible Closed Session on Personnel:

A closed session may be necessary to discuss personnel. Not needed.

10. Possible Closed Session on Litigation:

A closed session may be necessary to discuss litigation. Not needed.

11. Possible Closed Session on Real Estate:

A closed session may be necessary to discuss real estate. Not needed.

B. Board Communication A. Events, notes, etc.

Presented.

C. Unfinished Business None.

D. New Business None.

E. Adjournment Moved by Doug McDermott and seconded by Tom Chelesvig to approve. Motion carried unanimously.

6 Return to Agenda

Next Meeting The next regular meeting of the Board is scheduled Tuesday, December 10, 2019, at 5:00 p.m.

Allyson Walter Secretary ATTEST: Mark R. Crimmins President

7 Return to Agenda

VENDOR NAME ID TOTAL AMT

RDG Media Inc. 0303677 995.00

1st Avenue Chiropractic PC 0035731 78.00

A Plus Auto Glass 0226654 96.44

A Ware Software Inc 0000673 1350.00

ALPHAMEDIA USA LLC 0320599 2000.00

AP Truck Parts 0126499 67.00

ASA Excavation LLC 0329237 2000.00

AT&T 0000710 12.56

AT&T 0072904 210.56

ATR 0066749 450.00

Access Systems 0001908 2996.41

Advanced Systems Inc 0000720 5158.58

Advanced Systems Inc 0000721 2904.24

Advanced Waste Solutions 0305364 820.00

Advancing Productivity LLC 0314104 1125.15

Airgas USA LLC 0000729 5267.30

Allers Associates Architects, Pc 0260158 2426.93

Alliant Energy 0000736 490.21

Amazon.com 0019571 4007.22

American Solutions for Business 0000745 1646.26

Anderson, Brenda 0000037 283.05

Anderson, Justin 0303550 216.05

Andrews, Randall 0299931 20.00

Angelus Pacific Co. Inc. 0296231 696.59

Aramark Uniform Services 0108657 5618.15

Arklie, Anne 0044313 642.00

Arnold Motor Supply 0000765 6018.40

Arnold Motor Supply 0000766 230.71

Artisans, Inc. 0310904 932.00

Asics America 0161097 718.00

Assad, Ahmed 0320745 83.33

Augustana College 0025067 330.00

Automatic Door Group Inc 0031621 2000.00

B&H Photo Video 0000785 10382.16

Baker Electric of Fort Dodge 0154241 383.66

Barnes PRCA Rodeo 0314513 480.00

Bazyr, Ethan 0329413 20.00

Bear Graphics Inc 0000790 5105.50

Becker Florist, Inc. 0000812 256.00

Becker, Christel 0017201 200.00

1 of 12

IOWA CENTRAL COMMUNITY COLLEGEACCOUNTS PAYABLE TRANSACTIONS

November 2019

12/5/2019 2:30:46 PM

8 Return to Agenda


Beissers Inc 0000816 11241.82

Bennett, Jacob 0209668 14.00

Benton, Alexjuandra 0273430 249.00

Berens Tate Counsulting Group 0002721 2000.00

Bergman Plumbing Inc 0000821 1250.00

Best Co LLC 0254702 4773.60

Bice, Jim 0002295 200.00

Billups, Derek 0326763 170.00

Black Hills Energy 0077485 414.26

Bloomquist, Paul 0067021 125.00

Blue Ribbon Waters 0068362 745.00

Bluespace Creative 0320864 23219.39

Boelter, Douglas 0000091 288.00

Bomgaars 0000839 745.01

Boscotronics 0312251 500.00

Brady, Tyler 0208030 380.00

Branderhorst, Marlo 0002298 100.00

Bromeland, Tom 0304476 190.00

Brown, Daniel 0008555 99.00

Brushy Creek Area Honor Flight 0329995 1650.00

Buena Vista University 0000862 495.31

Bunting, Brad 0109747 185.00

Burkholder, Jordan 0298773 876.75

Burton, Kelly 0003381 190.00

C & J Bus Repair Inc 0231780 4508.38

C H McGuiness Co Inc 0029337 125.28

CENGAGE Learning 0002094 130650.00

CNH Industrial Capital Productivity Plus Account 0100130 5.92

CNOS Foundation 0327502 3000.00

Campbell Supply Company 0000909 170.63

Carlson Auto 0112017 113.30

Carpet World Flooring America 0000913 250.00

Carrel, Travis 0003370 190.00

Casady Bros Implement Inc 0003712 462.31

Caseys General Store 0208133 391.00

Cemstone Concrete Materials, LLC 0000746 3951.10

Central Iowa Distributing 0000926 22933.49

Central Iowa Water Inc 0000927 592.00

CenturyLink 0001846 313.70

Certifed Testing Services, Inc 0274401 1864.00

2 of 12


November 2019

12/5/2019 2:30:46 PM

9 Return to Agenda


Certified Laboratories 0002268 142.18

Chalfant, Lynne 0236400 36.85

Chief Automotive Technologies LLC 0098632 993.00

Choice Printing 0002192 5310.87

City of Fort Dodge 0000949 200.00

City of Storm Lake 0000947 97.58

City of Webster City 0000951 2996.52

Clark Richardson & Biskup ConsultingýEngineers Inc 0309127 1000.00

Cleveland, Christopher 0120699 158.40

College House 0000962 290.50

Collins, Joel 0000145 5.00

Communications Engineering Company 0232381 270.00

Community and Family Resources 0000985 880.00

Condon, Jennifer 0000146 164.16

Consulting & Marketing Assn 0000994 1450.00

Crawford County Treasurer 0022741 279.75

Crescent Electric Supply Co 0001013 136.55

Culligan Water Conditioning 0001017 27.02

Curry, Lynn 0065909 260.00

D & K Products 0001021 485.00

Daily Freeman Journal 0001034 49.00

Dake-Division of JSJ CorporationýAttn Bob Van Bemmelen 0003298 2.46

Daniel Tire Company 0001037 1447.04

Daniel, Darius 0095091 190.00

Danielson, Cynthia 0045700 1706.95

DataVizion LLC 0326304 9074.25

Dayton Lumber Co 0262803 8990.98

Dehrkoop, Michael 0224824 90.00

Dellinger, Lisa 0284952 345.60

Dencklau, Dawn 0019600 134.40

Dennis Supply Co 0154491 531.23

Department of Education AWG 0002404 353.90

Determann, Darrell 0028206 74.37

Diamond Vogel Paints 0001070 321.60

Dominos Pizza 0001079 1160.29

Doolittle Oil Co. 0001080 1165.20

Dotson, William 0261519 380.00

Douglas, Clifton 0276967 48.33

Douglas, Dylan 0306237 83.33

Douglas, Tamala 0286416 26.36

3 of 12


November 2019

12/5/2019 2:30:46 PM

10 Return to Agenda


Doyle, Susan 0053175 54.40

Duet Resource Group 0233004 900.00

Dunbar Power Equipment 0008533 90.31

Dunne, Donna 0329409 20.00

Eagle Grove Area Chamber of Commerce 0052402 338.00

Eagle Grove Mun. Utilities 0001113 201.37

Echo Group 0095788 9196.86

Ecolab 0001119 124.95

Educational Testing Services (ETS) 0245117 719.00

Ehlers, Chris 0329636 190.00

Ekel, Nicholas 0301363 63.82

El Paso Community College 0028771 980.00

Electrical Materials 0001131 56.27

Ellsworth, Shelbey 0260050 85.00

Ellucian Company LP 0001039 4243.75

Engquist Lumber Co Inc 0052891 992.75

Europa Sports Products 0089673 733.05

Eustice, Danielle 0329992 3264.28

FBG Service Corporation 0318947 229.00

Faith, Beth 0329472 51.00

Farm News 0001187 375.00

Fastenal Company 0001191 820.37

Fastpitch Headquarters 0299097 750.00

Federal Express Corporation 0001193 436.08

Feld Fire 0001122 44.00

Ferguson Enterprises Inc 0001194 39.75

Fidelity Security Life 0322743 2678.14

Field, Gregory 0328679 120.00

Fink, Shelby 0274983 34.50

Fire Service Training Bureau 0037572 250.00

Fisher Scientific Education 0002720 740.76

Fjetland, Candace 0001306 94.00

Fleagle, Mark 0329635 190.00

Florida State Disbursement Unit 0137475 912.00

Food Service Solutions Inc 0130294 1695.00

Force America 0001209 337.45

Fort 8 Theater 0009739 1242.00

Fort Dodge Asphalt Co 0001156 69.28

Fort Dodge Community Schools 0001164 28674.00

Fort Dodge Ford Lincoln Toyota 0001166 182.13

4 of 12


November 2019

12/5/2019 2:30:46 PM

11 Return to Agenda


Fort Dodge Parks and Rec 0224670 1936.25

Fort Dodge Senior High School 0001170 45.00

Fort Dodge Tennis Club Inc 0287888 408.00

Fort Dodge Transmission 0001173 56.82

Fort Dodge Water Department 0001174 16137.73

Foth, Christina 0070698 108.24

Frontier Communications 0001221 4640.55

Fusco, Nicole 0007432 25.69

Gadberry, Randall 0326764 170.00

Garbage Hauling Service 0001237 82.75

George, Ryan 0271449 190.00

Goetze Dental 0318470 1237.10

Goldfield Access Network 0055342 39.95

Goodwin Tucker Group 0001256 678.35

Great Western Dining Services 0001260 248820.30

Greater Fort Dodge Growth Alliance 0150846 8450.00

Grissom, Brittany 0234948 291.00

Gronbach, Mary 0000240 146.50

Grove, Megan 0005530 154.79

Gudmonson Services & Marsh Concrete 0066790 600.00

HE Holdings LLC 0326503 4250.00

Hackbarth, Jill 0076438 155.52

Haden, Gregg 0056121 2424.50

Hagie Manufacturing 0019909 3698.80

Haila Architecture Structure Planning 0314198 9366.65

Haley, Wes 0317990 1500.00

Hamilton Redi Mix 0046777 4583.00

Hanner, Lyle 0327239 20.00

Hauge Associates 0001302 2220.97

Hauswirth, Jena 0286526 260.00

Hawley, MaKenzie 0227702 64.00

Hecht, Larry 0002320 158.80

Heck, Donald 0046002 276.98

Helle, Chad 0000274 642.33

Henry Schein 0042725 2744.42

Henry Schein Practice 0163155 7.50

Hewitt, Tara 0298454 172.72

Hiway Truck Equipment 0001316 66.03

Hotsy Equipment Company 0025549 175.00

Huang, Mei-Hsuan 0247618 250.00

5 of 12


November 2019

12/5/2019 2:30:46 PM

12 Return to Agenda


Humboldt Motor Sales 0029777 815.00

Humboldt Newspapers 0002757 113.00

Hy Vee 0001350 268.08

Ida County Board of Supervisors 0329777 359.71

Image Sells 0051287 2011.67

Inland Truck Parks & Service 0213684 125.40

Interstate All Battery Center 0001446 375.60

Iowa Central Bookstore 0249291 7174.62

Iowa Central Comm Col Foundation 0001359 2669.20

Iowa Central Community College 0000015 688.00

Iowa Comm College Athletic Conference 0001401 290.00

Iowa Communications Network 0001361 13640.43

Iowa Dept of Inspections & Appeals 0237739 400.00

Iowa Dept of Natural Resources 0106650 95.00

Iowa Motor Truck Assn 0001363 1000.00

Iowa State University 0018699 8850.00

Iowa State University Extension 0001425 105.00

Iowa Western Comm College 0002408 454.15

J P Byson Oil Company 0000873 373.50

JP Gasway Paper Company 0221990 3390.47

JRG Veterinary Supply 0030037 416.01

Jacobus, Reilly 0326762 170.00

James, Kimberlie 0260953 500.00

Janssen Pest Solutions 0230759 5149.26

Japenga, Mark 0329917 90.00

Jefferson Telecom 0001469 72.90

Jensen Builders, Ltd 0001472 86440.50

Jenson, Brianna 0283866 245.44

Johnson, Eric 0016030 35.00

Johnson, Martez 0329414 200.00

Johnston Autostores 0001391 549.60

Johnstone Supply 0001485 472.61

Julius Cleaners 0002932 34.00

K C Nielsen 0001493 119.98

Kadner, Jim 0003374 190.00

Kamara, Duval 0325584 170.00

Kehrberg, Scott 0109553 260.00

Kemna Auto of Fort Dodge 0086124 1608.98

Kephart, Carrie 0026714 627.43

Kersten, James 0000335 403.07

6 of 12


November 2019

12/5/2019 2:30:46 PM

13 Return to Agenda


Keystone Automotive Industries Inc 0079260 809.05

Kimball Midwest 0119964 997.90

Kingston, Garrett 0314162 170.00

Kinney, Daniel 0120331 278.40

Klingensmith, Ed 0329110 100.00

Knight, James 0088785 120.00

Koch, Joe 0329406 83.33

Kolacia Construction, Inc 0024907 441969.45

Koslowski, Courtney 0303992 324.00

Kramer, Jared 0286195 190.00

Kraushaar, Joshua 0267417 481.13

Kruger, Kelvin 0281027 923.25

Kruse, Wyatt 0283093 561.15

Laguna Tools 0320180 11452.10

Lance, Jonnie 0329889 5.00

Landus Cooperative 0002228 75.00

Larsen Electric Motor Service 0001549 247.63

Larson, Mike 0306879 223.81

Laurens Plumbing Services 0326982 125.68

Lentsch, Bobby 0018979 3180.80

Lifeworks Community Services 0001398 467.50

Loerch, Deborah 0002350 66.00

Logan Contractors Supply Inc 0154467 3513.20

Lombard, Sharisse 0025942 56.00

Loux, Brittany 0071199 176.00

Ludwig, Mary 0061416 35.00

Lynch, Chris 0329868 190.00

MCI Residential Service 0001571 14.75

MPH Auto Repair 0147307 205.99

MSC Industrial Supply Co 0021790 2284.25

Mad Rabbit Design 0297977 509.00

Magellan Pipeline Company 0140206 1315.00

Marasco, Renee 0329888 20.00

Marco 0162745 237.03

Marjorie Hubel Scholarship Fund 0253950 1000.00

Martin Bros Distributing Inc 0313547 467.14

Martin Marietta Aggregates Inc 0001589 4330.94

Martin, Angela 0000390 70.40

Martin, Joseph 0001590 4129.20

Martin, Rick 0148298 260.00

7 of 12


November 2019

12/5/2019 2:30:46 PM

14 Return to Agenda


Mason, Kerstan 0060392 171.20

Maxwell Medals & Awards 0030038 245.00

Mayer, Harry 0070245 43.82

McAnally, Denise 0035122 38.06

McCann, Angela 0269172 337.50

McCormick, William 0324965 142.00

McDermott, Douglas 0002343 90.80

McGraw Hill Education Inc 0001602 25380.00

McGregor, Stephanie 0148159 132.16

McGuire, Kiersten 0123097 110.00

McMaster Carr 0002955 9934.13

Mediacom 0001605 5076.25

Medical Enterprises Inc. 0008541 50.00

Menards 0001606 7120.54

Mentzer, Stacy 0086491 446.80

Mid America Publishing Corp 0001111 810.00

Mid Country Machinery Inc 0001623 315.31

Mid West 3D Solutions LLC 0205908 245.00

MidAmerican Energy 0001632 61931.12

Midas Council of Governments 0001633 2722.95

Midstate Plumbing & Htg 0001634 8050.00

Midwest Alarm Services 0001635 414.00

Midwest Breathing Air LLC 0287665 836.30

Modern Sound Engineering Inc 0003697 4592.92

Moffitt, Lucas 0019587 4078.38

Mohr, Sarah 0064568 75.00

Moody's Investors Service 0002261 29750.00

Moore, Brian 0272721 190.00

Morrison, Bob 0272865 190.00

Murphy, Amanda 0069740 166.97

NAPA Auto Supply 0001682 8700.61

NCS Pearson Inc 0001674 1093.68

Nantulya, Kevin 0029329 380.00

National Coatings & Supplies 0023371 4755.09

Nebraska Community Foundation 0329698 1500.00

Nee, David 0307294 190.00

Nels Pederson Company Inc 0001698 10593.35

Norsolv Systems 0001712 1842.50

North Central IA Regional Solid Waste Agency 0001871 230.00

Northern Lights Distributing 0001723 769.45

8 of 12


November 2019

12/5/2019 2:30:46 PM

15 Return to Agenda


Nurse, Jim 0106753 90.00

O'Connor, Bennett 0239803 52.40

O'Halloran International 0078042 1216.03

O'Reilly Automotive Inc 0001736 2999.13

Okoboji Wines 0151847 336.75

OnMedia 0100277 1000.00

Oswald, Joel 0002348 190.00

Ottinger, Cliff 0036070 43.00

Otto, Branden 0031690 192.00

PCM-G 0002043 4614.46

Paine, Jeremy 0030590 380.00

Palmer Mutual Telephone Co 0114035 44.95

Paper Direct Inc 0001756 196.37

Pat Miner 0226524 3600.00

Patterson Dental 0061258 859.68

Paul Electric Supply Co 0001757 100.80

Pederson Sanitation 0001776 2592.00

Pengo Corporation 0001779 11995.47

Pepsi Beverages Company 0001782 498.67

Performance Foodservice 0329610 7402.19

Perkins, Fred 0024318 90.00

Peterson, Elizabeth 0315881 93.20

Pingel, Kayla 0056250 162.50

Plane, Joseph 0278664 280.00

Plumb Supply Company 0001798 3118.29

Poolman, Keith 0003694 200.00

Potts, Glenn 0329412 10.00

Power Lift 0099153 3699.00

Powers, Lynelle 0086988 156.48

Practical Farmers of Iowa 0242903 390.00

Prairie Lakes Area Education Agency 8 0000767 736.56

Praxair Distribution 0253749 301.00

Pray, Mark 0328682 69.00

Prestage Foods of Iowa 0319145 53317.48

Printing Services Inc 0001829 125.46

Privit Inc 0329997 1833.00

Protection Specialists 0121972 2740.00

R & J Material Handling 0001853 699.32

RR Donnelley 0104742 607.13

Raccoon Valley Radio 0001496 247.92

9 of 12


November 2019

12/5/2019 2:30:46 PM

16 Return to Agenda


Ramco Innovations 0088751 17257.92

Ramirez, Julyssa 0269360 800.00

Ramos, Fernando 0226863 330.00

Randall, Keith 0326761 170.00

Ranniger, Royce 0300505 190.00

Rapids Reproductions, Inc 0212038 567.37

Rasch Construction 0045796 71322.20

Reach Network, Inc 0297134 9300.00

Redwood Toxicology Laboratory 0001869 297.50

Reed, Ryan 0329890 75.00

Rees Truck & Trailer Inc 0009943 33.50

Riddell - All American Sports Corp 0001883 22590.00

Ringgerberg, Geri 0329408 10.00

Rittman, Dave 0003392 170.00

Rockwell City Chamber & Development 0232364 75.00

Rogers Tire Service LC 0001893 3200.00

Rosedale Water Store 0312868 216.00

Sadler, Todd 0329631 190.00

Safety Kleen Corp 0001920 856.48

Salazar Acra, Fernando 0311114 750.00

Schimberg Company 0278370 638.40

Schmidt, Amy 0099631 192.00

Schnurr & Company, LLP 0001931 23500.00

Schumacher Elevator Company 0001936 3093.59

Seehusen, Amy 0285290 260.00

Seehusen, Jason 0130956 190.00

Sherwin Williams 0001949 469.24

Shivers, Jennifer 0000642 200.00

Shred it USA 0319948 105.00

Signal Vine, Inc 0328893 6500.00

Site Services Inc 0329873 128650.00

Slaughter, Jason 0300506 190.00

Smith, Connie 0002359 94.00

Smith, Jeremy 0071554 450.00

Smith, LeRoy 0329410 125.00

Snap on Industrial 0001973 252.62

Snap on Tools 0064103 2990.40

Snyder & Associates 0299728 9217.50

Soukup, Richard 0207928 190.00

Southwest Research Institute 0162617 3651.50

10 of 12


November 2019

12/5/2019 2:30:46 PM

17 Return to Agenda


Specialized Turf & Irrigation Systems 0002872 4986.59

Speer Financial 0282090 22450.00

Stanphill, Zachary 0329869 190.00

Steinkoenig, Tom 0001944 770.00

Stern-Domek, Amy 0003452 120.96

Stewart, Donald 0220816 60.98

Stinson LLP 0220891 19258.65

Storey Kenworthy/Workspace Inc 0002004 4508.20

Storm Lake Hydraulics 0084940 214.24

Storm Lake Rotary Club 0056026 125.00

Stroner, Noel 0218669 186.50

Svoboda, Shane 0150519 190.00

Sysco Food Serv of Iowa 0002030 3246.16

TEAM Services Inc 0054834 1958.26

Tasler, Kenneth 0031716 338.56

The Aftermarket Parts Co Inc 0316377 2104.57

The Graphic Edge 0002069 28476.22

The Iowa Outdoors Store 0253863 42.47

The Messenger 0002076 4100.00

The Trash Man 0002088 300.50

Townsell, Joey 0032699 380.00

Tranquillo, Alyvia 0280932 227.50

TriMark Foodservice Equipment 0061688 113.30

Trinity Health Foundation 0066130 2700.00

Trinity Regional Medical Center 0038428 506.00

ULINE 0085138 71.55

United Extreme Bling 0237297 873.00

United Parcel Service 0002157 929.79

United Registrar of Systems Ltd 0272968 1350.00

UnityPoint Health 0002132 12284.85

UnityPoint Health Trinity Regional Medical Center 0002126 227.00

University of Iowa Recreational Services 0329437 360.00

Us Department of Treasury 0284957 234.78

Valeriano, Adriana 0094691 24.59

Van Meter Industrial, Inc. 0002179 2195.27

Varsity Group 0299173 20000.00

Varsity Spirit Fashions 0025029 280.00

Verizon Wireless 0002186 2980.74

Vermeer, Cassidy 0056811 900.00

Vital Source 0206346 9534.66

11 of 12


November 2019

12/5/2019 2:30:46 PM

18 Return to Agenda


Vogt, Melanie 0108046 9.20

Vorrie, Melissa 0095433 51.32

Vratny, Richard 0254605 50.00

WI SCTF 0146652 246.12

Walsh Door & Security 0228701 102704.50

Walters Sanitary Service Inc 0115169 4641.96

Waugh, Brad 0033158 50.00

Webster Calhoun Coop Telephone Assn 0207534 222.88

Webster City True Value 0066766 59.15

Wells Fargo Card Services 0002225 51.01

Wellsaw Inc 0009087 73.19

Wessels Oil Co Inc 0066261 23929.78

Williams, LC 0329411 48.33

Windstar Lines Inc 0098691 3404.00

Windstream 0001429 429.47

Windstream Enterprise 0001599 201.49

Wirtz, Garrett 0286098 380.00

WnB Services, LLC 0276699 13516.76

Woodman Controls 0002237 3087.55

Wright, Nicole 0060006 300.48

YouVisit LLC 0293029 2080.00

Zimco Supply 0000020 1575.00

GRAND TOTAL $2,249,086.01

Allyson WalterBoard Secretary

Dr. Dan KinneyPresident

12 of 12


November 2019

12/5/2019 2:30:46 PM

19 Return to Agenda

20 Return to Agenda

21 Return to Agenda

22 Return to Agenda

23 Return to Agenda

24 Return to Agenda

25 Return to Agenda

26 Return to Agenda

27 Return to Agenda

28 Return to Agenda

29 Return to Agenda

30 Return to Agenda

31 Return to Agenda

32 Return to Agenda

33 Return to Agenda

34 Return to Agenda

35 Return to Agenda

36 Return to Agenda

37 Return to Agenda

38 Return to Agenda

39 Return to Agenda

40 Return to Agenda

41 Return to Agenda

42 Return to Agenda

43 Return to Agenda

IOWA CENTRAL COMMUNITY COLLEGE

INDEPENDENT AUDITOR’S REPORTS

BASIC FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION

SCHEDULE OF FINDINGS AND

QUESTIONED COSTS

June 30, 2019

44 Return to Agenda

TABLE OF CONTENTS

Page

Officials 1

Independent Auditor’s Report 2-4

Management’s Discussion and Analysis 5-12

Basic Financial Statements: Exhibit

Statement of Net Position A 13-14

Statement of Revenues, Expenses and Changes in Net Position B 15-16

Statement of Cash Flows C 17-18

Notes to Financial Statements 19-39

Required Supplementary Information:

Schedule of the College’s Proportionate Share of the Net Pension Liability 40

Schedule of College Contributions 41

Notes to Required Supplementary Information – Pension Liability 42

Schedule of Changes in the College’s

Total OPEB Liability, Related Ratios and Notes 43

Supplementary Information: Schedule

Note to Supplementary Information 44

Budgetary Comparison Schedule of Expenditures - Budget to Actual 1 45

Balance Sheet – All Funds 2 46-47

Schedule of Revenues, Expenditures and Changes in Fund Balances –

All Funds 3 48-49

Unrestricted Fund:


Education and Support 4 50-51


Auxiliary Enterprises 5 52


Restricted Fund 6 53

Schedule of Changes in Deposits Held in Custody for Others 7 54

Schedule of Credit and Contact Hours 8 55

Schedule of Tax and Intergovernmental Revenues 9 56

Schedule of Current Fund Revenues by Source

and Expenditures by Function 10 57

Schedule of Expenditures of Federal Awards 11 58-59

45 Return to Agenda

TABLE OF CONTENTS

(Continued)

Page

Independent Auditor’s Report

on Internal Control over Financial Reporting

and on Compliance and Other Matters Based on

an Audit of Financial Statements Performed in

Accordance with Government Auditing Standards 60-61

Independent Auditor’s Report

on Compliance for Each Major Federal Program

and on Internal Control Over Compliance

Required by the Uniform Guidance 62-63

Schedule of Findings and Questioned Costs 64-65

46 Return to Agenda

1


OFFICIALS

Term

Name Title Expires

Board of Directors

Mark Crimmins President 2021

Larry Hecht Vice President 2021

Thomas Chelesvig Member 2019

Darrell Determann Member 2019

Deborah Loerch Member 2019

Douglas McDermott Member 2019

Bennett O’Connor Member 2021

Connie Smith Member 2019

Terri Wessels Member 2021

Community College

Dr. Daniel Kinney President

Thomas Beneke Vice President

James Kersten Vice President

Mary Ludwig Executive Director

Angie Martin Vice President

Dr. Stacy Mentzer Vice President

Allyson Walter Board Secretary/Treasurer

47 Return to Agenda


48 Return to Agenda

2

SCHNURR & COMPANY, LLP

Certified Public Accountants and Consultants

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors of

Iowa Central Community College

Fort Dodge, Iowa

Report on the Financial Statements

We have audited the accompanying financial statements of Iowa Central Community College, Fort Dodge,

Iowa, and its discretely presented component unit as of and for the year ended June 30, 2019, and the related

Notes to Financial Statements, which collectively comprise the College’s basic financial statements listed in the

table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance

with U.S. generally accepted accounting principles. This includes the design, implementation and maintenance

of internal control relevant to the preparation and fair presentation of financial statements that are free from

material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our

audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial

audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the

financial statements are free from material misstatement. The financial statements of the component unit were

not audited in accordance with Government Auditing Standards.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the

risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk

assessments, the auditor considers internal control relevant to the College’s preparation and fair presentation of

the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for

the purpose of expressing an opinion on the effectiveness of the College’s internal control. Accordingly, we

express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and

the reasonableness of significant accounting estimates made by management, as well as evaluating the overall

presentation of the financial statements.

We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

49 Return to Agenda

3

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective

financial position of Iowa Central Community College and its discretely presented component unit as of June

30, 2019, and the respective changes in its financial position and, where applicable, its cash flows thereof for the

year then ended in accordance with U.S. generally accepted accounting principles.

Other Matters

Required Supplementary Information

U.S. generally accepted accounting principles require Management’s Discussion and Analysis, the Schedule of

the College’s Proportionate Share of the Net Pension Liability, the Schedule of College Contributions and the

Schedule of Changes in College’s Total OPEB Liability, Related Ratios and Notes on pages 5 through 12 and 40

through 43 be presented to supplement the basic financial statements. Such information, although not a part of

the basic financial statements, is required by the Governmental Accounting Standards Board which considers it

to be an essential part of financial reporting for placing the basic financial statements in an appropriate

operational, economic or historical context. We have applied certain limited procedures to the required

supplementary information in accordance with U.S. generally accepted auditing standards, which consisted of

inquiries of management about the methods of preparing the information and comparing the information for

consistency with management’s responses to our inquiries, the basic financial statements and other knowledge

we obtained during our audit of the basic financial statements. We do not express an opinion or provide any

assurance on the information because the limited procedures do not provide us with sufficient evidence to

express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively

comprise Iowa Central Community College’s basic financial statements. We previously audited, in accordance

with the standards referred to in the third paragraph of this report, the financial statements for the nine years

ended June 30, 2018 (which are not presented herein) and expressed unmodified opinions on those financial

statements. The supplementary information included in Schedules 1 through 11, including the Schedule of

Expenditures of Federal Awards required by Title 2, U.S. Code of Federal Regulations, Part 200, Uniform

Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance),

is presented for purposes of additional analysis and is not a required part of the basic financial statements.

The supplementary information is the responsibility of Iowa Central Community College’s management and

was derived from and relates directly to the underlying accounting and other records used to prepare the basic

financial statements. Such information has been subjected to the auditing procedures applied in the audit of the

basic financial statements and certain additional procedures, including comparing and reconciling such

information directly to the underlying accounting and other records used to prepare the basic financial

statements or to the basic financial statements themselves, and other additional procedures in accordance with

U.S. generally accepted auditing standards. In our opinion, based on our audit and the procedures performed as

described above, the supplementary information is fairly stated, in all material respects, in relation to the basic

financial statements taken as a whole.

50 Return to Agenda

4

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 27, 2019

on our consideration of Iowa Central Community College’s internal control over financial reporting and on our

tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other

matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial

reporting and compliance and the results of that testing and not to provide an opinion on the effectiveness of the

College’s internal control over financial reporting or on compliance. That report is an integral part of an audit

performed in accordance with Government Auditing Standards in considering Iowa Central Community

College’s internal control over financial reporting and compliance.

Fort Dodge, Iowa November 27, 2019

51 Return to Agenda


52 Return to Agenda


MANAGEMENT’S DISCUSSION AND ANALYSIS

5

Iowa Central Community College provides this Management’s Discussion and Analysis of its annual financial statements. This narrative overview and analysis of the financial activities is for the fiscal year ended June 30, 2019. We encourage readers to consider this information in conjunction with the College’s financial statements, which follow.

2019 FINANCIAL HIGHLIGHTS

• Operating revenues decreased in fiscal year 2019. The decrease in revenues is primarily attributable to

decreases in Iowa Industrial New Jobs Training Program revenue, tuition and fees, and sales and

services. The majority of the decrease in auxiliary enterprise revenues was due to the decrease in

bookstore revenues and fuel lab revenues.

• Operating expenses increased in fiscal year 2019 due to a moderate increase in salary and benefits.

Areas that had increases in expenses were career and technical, adult education, student services,

learning resources, scholarships and grants, administrative and collection costs, auxiliary enterprises,

physical plant and general institution. The maintenance and repair of older buildings that have been

deferred in prior years, as well as the addition of new buildings, continues to cause higher physical plant

expenditures.

USING THIS ANNUAL REPORT

The annual report consists of a series of financial statements and other information, as follows:

Management’s Discussion and Analysis introduces the basic financial statements and provides an analytical

overview of the College’s financial activities.

The Basic Financial Statements consist of a Statement of Net Position, a Statement of Revenues, Expenses

and Changes in Net Position and a Statement of Cash Flows. These provide information about the activities

of the College as a whole and present an overall view of the College’s finances.

Notes to the Financial Statements provide additional information essential to a full understanding of the

data provided in the basic financial statements.

Required Supplementary Information presents the College’s proportionate share of the net pension liability

and related contributions, as well as presenting the Changes in College’s total OPEB liability, related ratios

and notes.

Supplementary Information provides detailed information about the individual funds. The Budgetary

Comparison Schedule of Expenditures – Budget to Actual further explains and supports the financial

statements with a comparison of the College’s budget for the year. The Schedule of Expenditures of

Federal Awards provides details of various federal programs benefiting the College.

53 Return to Agenda


6

REPORTING THE COLLEGE’S FINANCIAL ACTIVITIES

The Statement of Net Position

The Statement of Net Position presents financial information on all of the College’s assets, deferred outflows of

resources, liabilities and deferred inflows of resources, with the difference reported as net position. The

Statement of Net Position is a point-in-time financial statement. The purpose of this statement is to present a

fiscal snapshot of the College to the readers of the financial statements. The Statement of Net Position includes

year-end information concerning current and non-current assets, deferred outflows of resources, current and

non-current liabilities, deferred inflows of resources and net position. Over time, readers of the financial

statements will be able to determine the College’s financial position by analyzing the increases and decreases in

net position. This statement is also a good source for readers to determine how much the College owes to

outside vendors and creditors. The statement also presents the available assets that can be used to satisfy those

liabilities.

2019 2018

Current and other assets 70,706,908 $ 74,085,763 $

Capital assets, net of accumulated depreciation 69,873,821 67,789,566

Total assets 140,580,729 141,875,329

Deferred outflows of resources 3,689,183 3,606,081

Current liabilities 14,894,014 14,507,620

Noncurrent liabilities 68,781,698 71,273,171

Total liabilities 83,675,712 85,780,791

Deferred inflows of resources 9,670,509 11,335,576

Net position:

Net investment in capital assets 44,983,821 41,259,566

Restricted 6,871,366 5,812,318

Unrestricted (931,496) 1,293,159

Total net position 50,923,691 $ 48,365,043 $

June 30,

Net Position

54 Return to Agenda


7

REPORTING THE COLLEGE’S FINANCIAL ACTIVITIES (CONTINUED) Comparison of Net Position The largest portion of the College’s net position (88%) is invested in capital assets (e.g., land, buildings, intangibles and equipment), less the related debt. The net investments in capital assets increased approximately $3,700,000 over the prior year, primarily due to a land and building acquisition and construction in progress related to building construction. The debt related to the capital assets is liquidated with resources other than capital assets. The restricted portion of the net position (13%) includes resources subject to external restrictions, constitutional provisions or enabling legislation on how they can be used. The remaining net position (-1%) is the unrestricted net position, which can be used to meet the College’s obligations as they come due. Statement of Revenues, Expenses and Changes in Net Position Changes in total net position presented in the Statement of Net Position are based on the activity presented in the Statement of Revenues, Expenses, and Changes in Net Position. The purpose of the statement is to present the revenues earned by the College, both operating and non-operating, the expenses incurred by the College, both operating and non-operating, and any other revenues, expenses, gains and losses received or spent by the College.

55 Return to Agenda


8

REPORTING THE COLLEGE’S FINANCIAL ACTIVITIES (CONTINUED) Comparison of Net Position (Continued) Statement of Revenues, Expenses and Changes in Net Position (Continued) In general, a public college, such as Iowa Central Community College, will report an operating loss since the financial reporting model classifies state appropriations and property tax as non-operating revenues. Operating revenues are received for providing goods and services to the students, customers and constituencies of the College. Operating expenses are those expenses paid to acquire or produce the goods and services provided in return for the operating revenues and to carry out the mission of the College. Non-operating revenues are revenues received for which goods and services are not provided. The utilization of capital assets is reflected in the financial statements as depreciation, which allocates the cost of an asset over its expected useful life.

2019 2018

Operating revenue:

Tuition and fees 15,320,428 $ 15,737,746 $

Federal appropriations 1,840,549 1,744,724

Iowa Industrial New Jobs Training Program 718,323 2,932,879

Auxiliary 16,493,338 16,214,424

Sales and services 1,250,203 2,645,727

Miscellaneous 291,964 603,698

Total operating revenue 35,914,805 39,879,198

Total operating expenses 68,654,434 67,717,453

Operating (loss) (32,739,629) (27,838,255)

Non-operating revenues (expenses):

State appropriations 15,431,793 15,224,300

Pell grant 9,219,713 9,297,419

Property tax 10,941,317 7,903,930

Interest income on investments 1,306,087 492,209

Gain on sale of capital assets 4,357 -

Interest on indebtedness (1,604,990) (921,966)

Net non-operating revenues 35,298,277 31,995,892

Change in net position 2,558,648 4,157,637

Net position beginning of year 48,365,043 44,207,406

Net position end of year 50,923,691 $ 48,365,043 $

Changes in Net Position

Year ended June 30,

The Statement of Revenues, Expenses and Changes in Net Position reflects an increase of 5.3%, or approximately $2,560,000, in net position at the end of the fiscal year.

56 Return to Agenda


9

REPORTING THE COLLEGE’S FINANCIAL ACTIVITIES (CONTINUED) Comparison of Net Position (Continued) Statement of Revenues, Expenses and Changes in Net Position (Continued)

In fiscal year 2019, operating revenues decreased as a result of the following:

• Decrease in tuition and fees.

• Decrease in Iowa Industrial New Jobs Training Program revenue.

• Decrease in Bookstore revenue.

• Decrease in Fuel Lab revenue.

• Decrease in sales and services revenue.

2019 2018

Education and support:

Liberal arts and sciences 6,856,468 $ 7,966,562 $

Career and technical 9,185,621 8,856,412

Adult education 3,496,829 3,331,597

Cooperative services 538,139 3,370,182

Administration 1,839,303 2,432,474

Student services 6,050,822 5,784,131

Learning resources 96,151 94,737

Physical plant 5,761,480 5,089,406

General institution 10,715,196 8,167,248

Auxiliary enterprises 17,087,491 17,025,097

Scholarships and grants 1,796,466 1,387,981

Administrative and collection costs 2,389,063 1,330,433

Depreciation 2,841,405 2,881,193

Total 68,654,434 $ 67,717,453 $

Year ended June 30,

Operating Expenses

57 Return to Agenda


10

REPORTING THE COLLEGE’S FINANCIAL ACTIVITIES (CONTINUED)

In fiscal year 2019, operating expenses increased as a result of the following:

• Moderate salary and benefit increases.

• Increase in scholarships and grants.

• Increase in health claim payments in the College self-funded health plan.

• Increase in student housing expense.

• Increased expenses in education and support area. (Career and technical, adult education, student

services, learning resources, administrative and collection costs, physical plant and general institution.)

Statement of Cash Flows

The Statement of Cash Flows is an important tool in helping users assess the College’s ability to generate future

net cash flows, its ability to meet its obligations as they come due, and its need for external financing. The

Statement of Cash Flows presents information related to cash inflows and outflows, summarized by operating,

non-capital financing, capital and related financing and investing activities.

2019 2018

Cash provided by (used in):

Operating activities (28,031,667) $ (26,370,775) $

Non-capital financing activities 34,328,913 38,470,120

Capital and related financing activities (7,736,586) 12,515,705

Investing activities 1,306,087 492,209

Net increase (decrease) in cash (133,253) 25,107,259

Cash beginning of year 51,183,064 26,075,805

Cash end of year 51,049,811 $ 51,183,064 $

June 30,

Cash Flows

Cash used by operating activities includes tuition, fees, operating grants and contracts, net of payments to

employees and to suppliers. Cash provided by non-capital financing activities includes state appropriations, Pell

grant, local property tax received by the College and the receipt and disbursement of federal direct loan program

proceeds. Cash used by capital and related financing activities represents the proceeds from debt, the principal

and interest payments on debt and the purchase of capital assets. Cash provided by investing activities includes

investment income received.

58 Return to Agenda


11

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At June 30, 2019, the College had approximately $69.9 million invested in capital assets, net of accumulated

depreciation of approximately $39.2 million. Depreciation charges totaled $2,841,405 for fiscal year 2019.

Details of the capital assets are shown below:

2019 2018

Land 4,189,418 $ 2,342,870 $

Buildings 58,642,244 59,912,173

Construction in progress 1,944,101 69,753

Improvements other than buildings 2,656,983 2,874,715

Equipment and vehicles 2,441,075 2,590,055

69,873,821 $ 67,789,566 $

Capital Assets, Net, at Year-End

June 30,

Major capital expenditures for the fiscal year ending June 30, 2019 included purchase of land in Storm Lake,

purchase of property adjacent to Woodruff Housing, parking ramp repairs, and Eagle Grove Career Academy

upgrades.

Planned capital expenditures for the fiscal year ending June 30, 2019 and beyond include, Crimmins Building remodel, parking lot replacements, parking ramp stairs, Decker Auditorium remodel, relocate Fuel Testing Center, new Greehey Family Student Success Center, Liberal Arts Building repairs, current Student Support Services Building renovations, safety improvements, Science building renovations, Industrial Training Center in Storm Lake, Storm Lake Center building repairs and Webster City Center building repairs and Sport Shooting Clubhouse. More detailed information about the College’s capital assets is presented in Note 4 to the financial statements.

Debt

At June 30, 2019, the College had approximately $52.5 million in debt outstanding, a decrease of $2.5 million

from June 30, 2018. The table below summarizes these amounts by type.

2019 2018

Certificates payable 10,930,000 $ 11,915,000 $

Capital loan note payable 5,418,609 4,635,000

Bonds payable 36,104,328 38,478,503

52,452,937 $ 55,028,503 $

Outstanding Debt

June 30,

More detailed information about the College’s outstanding debt is presented in Note 5 to the financial

statements.

59 Return to Agenda


12

ECONOMIC FACTORS

Iowa Central Community College continued to improve its financial position during the current fiscal year. Maintaining the current good condition of the economy in the state and maintaining student enrollment are a concern for College officials. Some of the realities that may potentially become challenges for the College to meet are:

• State General Aid (SGA) increased from 2018-2019 to 2019-2020. In 2018-2019, State General Aid

represented 31.5% of the general fund revenue. Changes in and adequate funding of state general aid are

a concern in meeting and maintaining the education needs of our students.

• Anticipated increase in expenses for fiscal year 2020 will be due to salary and benefit increases, increases

in costs of professional services and costs of materials and supplies.

• The College will continue to look at ways to expand distance learning opportunities in fiscal year 2020

and beyond and is involved with school districts in the operation of Charter Schools.

• The start-up of new programs is expensive. No new programs were started in fiscal year 2019. New

programs that are anticipated to begin in fiscal year 2020 and beyond are Cyber Security program,

Surgical Technician program, as well a new EMS certificate, Computer Programming Language

certificate and Apple Swift certificate.

• As Iowa Central continues to grow the cost of new facilities and aging facilities at the College require

constant maintenance and upkeep. The increase in the number of building creates increased utility costs,

maintenance and upkeep expenses.

• Technology continues to expand and current technology becomes outdated, presenting an ongoing

challenge to maintain up-to-date technology at a reasonable cost.

• Property tax revenue to support the College operating fund for 2019-2020 is anticipated to increase 5.9%.

The College anticipates the current fiscal year will be much like the last and will monitor resources to maintain the College’s ability to react to unknown issues.

CONTACTING THE COLLEGE’S FINANCIAL MANAGEMENT

This financial report is designed to provide our customers, taxpayers in the community college district and our

creditors with a general overview of the College’s finances and to demonstrate the College’s accountability for

the resources it receives. If you have questions about the report or need additional financial information, contact

Iowa Central Community College, One Triton Circle, Fort Dodge, IA 50501.

60 Return to Agenda

BASIC FINANCIAL STATEMENTS

61 Return to Agenda

13

IOWA CENTRAL COMMUNITY COLLEGE Exhibit A

Primary Component

Government Unit

Assets

Current assets:

Cash and pooled investments 51,049,811 $ 1,543,318 $

Receivables:

Accounts 2,060,251 -

Capital campaign, net of allowance of $229,877 - 1,056,959

Property tax:

Delinquent 71,029 -

Succeeding year 9,079,137 -

Due from other governments 469,666 -

Inventories 675,538 -

Prepaid expenses 641,549 -

Total current assets 64,046,981 2,600,277

Noncurrent assets:

Receivables:

Iowa Industrial New Jobs Training Program 6,659,927 -

Investments - 7,601,226

Land 4,189,418 1,919,000

Construction in progress 1,944,101 -

Capital assets, net of accumulated depreciation 63,740,302 483,340

Total noncurrent assets 76,533,748 10,003,566

Total assets 140,580,729 12,603,843

Deferred Outflows of Resources

OPEB related deferred outflows 719,268 -

Pension related deferred outflows 2,969,915 -

3,689,183 -

STATEMENT OF NET POSITION

June 30, 2019

(Continued on next page)

62 Return to Agenda

14

IOWA CENTRAL COMMUNITY COLLEGE Exhibit A

(Continued)

Primary Component

Government Unit

Liabilities

Current liabilities:

Accounts payable 878,761 $ 3,105 $

Salaries and benefits payable 1,416,461 -

Interest payable 126,575 -

Advances from grantors 6,324,448 -

Compensated absences 554,859 -

Deposits held in custody for others 642,910 -

Certificates payable 1,340,000 -

Capital loan note payable 850,000 -

Bonds payable 2,760,000 -

Total current liabilities 14,894,014 3,105

Noncurrent liabilities:

Certificates payable 9,590,000 -

Capital loan note payable 4,568,609 -

Bonds payable 33,344,328 -

Net pension liability 10,660,332 -

Total OPEB liability 10,618,429 -

Total noncurrent liabilities 68,781,698 -

Total liabilities 83,675,712 3,105

Deferred Inflows of Resources

Unavailable property tax revenue 9,079,137 -

Pension related deferred inflows 591,372 -

9,670,509 -

Net position

Net investment in capital assets 44,983,821 2,402,340

Restricted:

Nonexpendable:

Scholarships and fellowships - 5,615,789

Expendable:

Capital campaign - 1,050,159

Scholarships and fellowships 38,020 -

Loans 562 -

Cash reserve 319,603 -

Other 6,513,181 338,251

Unrestricted (931,496) 3,194,199

Total net position 50,923,691 $ 12,600,738 $

See Notes to Financial Statements.

June 30, 2019

STATEMENT OF NET POSITION

63 Return to Agenda

15

IOWA CENTRAL COMMUNITY COLLEGE Exhibit B

Primary Component

Government Unit

Operating revenues:

15,320,428 $ -$

Federal appropriations 1,840,549 -

Iowa Industrial New Jobs Training Program 718,323 -

16,493,338 -

1,250,203 -

- 135,425

Miscellaneous 291,964 -

Contributions and pledges - 565,928

Total operating revenues 35,914,805 701,353

Operating expenses:


Liberal arts and sciences 6,856,468 -

Career and technical 9,185,621 -

Adult education 3,496,829 -

Cooperative services 538,139 -

Administration 1,839,303 -

Student services 6,050,822 -

Learning resources 96,151 -

Physical plant 5,761,480 -

General institution 10,715,196 -

Auxiliary enterprises 17,087,491 -

Scholarships and grants 1,796,466 349,936

Administrative and collection costs 2,389,063 -

Depreciation 2,841,405 11,740

Farm expenses - 162,414

Management and general expenses - 125,392

Total operating expenses 68,654,434 649,482

Operating income (loss) (32,739,629) 51,871


Sales and services

Farm income

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

Year Ended June 30, 2019

Tuition and fees, net of scholarship allowances of $6,302,264

Auxiliary enterprises, net of scholarship

allowances of $2,738,384

64 Return to Agenda

16

IOWA CENTRAL COMMUNITY COLLEGE Exhibit B

(Continued)

Primary Component

Government Unit

Non-operating revenues (expenses):

State appropriations 15,431,793 $ -$

Pell grant 9,219,713 -

Property tax 10,941,317 -

Interest and dividend income from investments 1,306,087 -

Gain on sale of capital assets 4,357 -

Interest on indebtedness (1,604,990) 159,851

Realized/unrealized gain on investments - 265,997

Net non-operating revenues (expenses) 35,298,277 425,848

Change in net position 2,558,648 477,719

Net position beginning of year 48,365,043 12,123,019

Net position end of year 50,923,691 $ 12,600,738 $


STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION


65 Return to Agenda

17

IOWA CENTRAL COMMUNITY COLLEGE Exhibit C

Cash flows from operating activities:

Tuition and fees 15,131,301 $

Federal appropriations 2,629,978

Iowa Industrial New Jobs Training Program 1,162,513

Payments to employees for salaries and benefits (34,370,793)

Payments to suppliers for goods and services (17,964,330)

Payments to NJTP recipients (382,452)

Scholarships (12,273,389)

Auxiliary enterprises 16,493,338

Other receipts 1,542,167

Net cash (used by) operating activities (28,031,667)

Cash flows from non-capital financing activities:

State appropriations 15,431,793

Pell grant 9,219,713

Property tax 10,913,824

Agency Fund receipts 14,423,967

Agency Fund disbursements (14,340,637)

Interest paid on debt (334,747)

Principal paid on debt (985,000)

Net cash provided by non-capital financing activities 34,328,913

Cash flows from capital and related financing activities:

Acquisition of capital assets (4,932,420)

Proceeds from sale of capital assets 11,117

Interest paid on debt (1,224,717)

Proceeds from issuance of debt 1,495,130

Principal paid on debt (3,085,696)

Net cash (used by) capital and related financing activities (7,736,586)

Cash flows from investing activities:

Interest on investments 1,306,087

Net cash provided by investing activities 1,306,087

Net (decrease) in cash (133,253)

Cash and pooled investments, beginning of year 51,183,064

Cash and pooled investments, end of year 51,049,811 $

STATEMENT OF CASH FLOWS



66 Return to Agenda

18

IOWA CENTRAL COMMUNITY COLLEGE Exhibit C

(Continued)

STATEMENT OF CASH FLOWS

Reconciliation of operating (loss) to

net cash (used by) operating activities:

Operating (loss) (32,739,629) $

Adjustments to reconcile operating (loss) to

net cash (used by) operating activities:

Depreciation 2,841,405

Changes in assets and liabilities:

Increase in accounts receivable (189,127)

Decrease in NJTP receivable 751,391

Decrease in due from other governments 544,278

Increase in inventories (13,187)

Decrease in prepaid expenses 340,858

Decrease in accounts payable (862,710)

Increase in salaries and benefits payable 226,703

Decrease in advances from grantors (62,050)

Increase in total OPEB liability 1,405,292

Increase in compensated absences 65,595

Decrease in pension liability (431,199)

Decrease in OPEB-related deferred inflows (39,856)

Increase in pension-related deferred inflows 213,671

Increase in OPEB-related deferred outflows (461,622)

Decrease in pension-related deferred outflows 378,520

Total adjustments 4,707,962

Net cash (used by) operating activities (28,031,667) $



67 Return to Agenda


NOTES TO FINANCIAL STATEMENTS

19

Note 1. Summary of Significant Accounting Policies

Iowa Central Community College is a publicly supported school established and operated by Merged Area V

under the provisions of Chapter 260C of the Code of Iowa. The College offers programs of adult and

continuing education, lifelong learning, community education, and up to two years of liberal arts, pre-

professional or occupational instruction partially fulfilling the requirements for a baccalaureate degree but

confers no more than an associate degree. Iowa Central Community College also offers up to two years of

career and technical education, training or retraining to persons who are preparing to enter the labor market.

Iowa Central Community College maintains campuses in Fort Dodge, Webster City, and Storm Lake, Iowa, and

has its administrative offices in Fort Dodge. Iowa Central Community College is governed by a Board of

Directors whose members are elected from each director district within Merged Area V.

The College’s financial statements are prepared in conformity with U.S. generally accepted accounting

principles as prescribed by the Governmental Accounting Standards Board.

A. Reporting Entity

For financial reporting purposes, Iowa Central Community College has included all funds, organizations, agencies, boards, commissions and authorities. The College has also considered all potential component units for which it is financially accountable and other organizations for which the nature and significance of their relationship with the College are such that exclusion would cause the College’s financial state-ments to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization’s governing body and (1) the ability of the College to impose its will on that organization or (2) the potential for the organization to provide specific benefits to or impose specific financial burdens on the College.

These financial statements present Iowa Central Community College (the primary government) and its component unit. The component unit discussed below is included in the College’s reporting entity because of the significance of its operational or financial relationship with the College. Certain disclosures about the component unit are not included because the component unit has been audited separately and a report has been issued under separate cover. The audited financial statements are available at the College.

Discrete Component Unit

Iowa Central Community College Foundation is a legally separate not-for-profit foundation. The Foundation was organized to receive and manage bequests, gifts, donations, and contributions made to or for the use of Iowa Central Community College. The Foundation is governed by a Board of Directors who are appointed by the College. Although the College does not control the timing or amount of receipts from the Foundation, the majority of the resources held are used for the benefit of Iowa Central Community College and its students. The address of the Foundation is One Triton Circle, Fort Dodge, Iowa.

68 Return to Agenda

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

20

Note 1. Summary of Significant Accounting Policies (Continued)

Discrete Component Unit (continued)

The Foundation is a non-profit organization which reports under accounting standards established by the Financial Accounting Standards Board (FASB). The Foundation’s financial statements were prepared in accordance with the provisions of ASC Topic 958 – Not-for-Profit Entities. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. No modifications have been made to the Foundation’s financial information in the College’s financial reporting for these differences. The Foundation reports net assets, which is equivalent to net position reported by the College. Copies of the Foundation’s financial statements may be obtained by contacting the Foundation

B. Basis of Presentation

GASB Statement No. 35, establishes standards for external financial reporting for public colleges and universities and requires resources to be classified for accounting and reporting purposes into the following net position categories/components:

Net Investment in Capital Assets - Capital assets, net of accumulated depreciation and outstanding debt obligations attributable to the acquisition, construction or improvement of those assets.

Restricted Net Position

Nonexpendable – Net position subject to externally-imposed stipulations that they be maintained permanently by the College, including the College’s permanent endowment funds.

Expendable – Net position whose use by the College is subject to externally-imposed stipulations that can be fulfilled by actions of the College, pursuant to those stipulations or that expire by the passage of time.

Unrestricted Net Position - Net position not subject to externally-imposed situations. Resources may be designated for specific purposes by action of management or by the Board of Directors or may otherwise be limited by contractual agreements with outside parties. Substantially all unrestricted net position is designated for academic and general programs of the College.

GASB Statement No. 35 also requires the Statements of Net Position, Revenues, Expenses and Changes in Net Position, and Cash Flows be reported on a consolidated basis. These basic financial statements report information on all of the activities of the College. For the most part, the effect of interfund activity has been removed from these statements.

C. Measurement Focus and Basis of Accounting

For financial reporting purposes, the College is considered a special-purpose government engaged only in business-type activities as defined in GASB Statement No. 34. Accordingly, the basic financial statements of the College have been prepared using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property tax is recognized as revenue in the year for which it is levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

69 Return to Agenda


21

D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position

Cash and Pooled Investments – Investments are stated at fair value.

For purposes of the Statement of Cash Flows, all short-term cash investments that are highly liquid are considered to be cash equivalents. Cash equivalents are readily convertible to known amount of cash and, at the day of purchase, have a maturity date no longer than three months.

Due from Other Governments – This represents state aid, grants and reimbursements due from the State of Iowa and grants and reimbursements due from the Federal government.

Inventories – Inventories are valued at lower of cost (first-in, first-out method) or market. The cost is recorded as an expense at the time individual inventory items are consumed.

Property Tax Receivable – Property tax receivable is recognized on the levy or lien date, which is the date the tax asking is certified by the Board of Directors to the appropriate County Auditors. Delinquent property tax receivable represents unpaid taxes from the current and prior years. The succeeding year property tax receivable represents taxes certified by the Board of Directors to be collected in the next fiscal year for the purposes set out in the budget for the next fiscal year. By statute, the Board of Directors is required to certify its budget to the County Auditor by June 1 of each year for the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following fiscal year becomes effective on the first day of that year. Although the succeeding year property tax receivable has been recorded, the related revenue is reported as a deferred inflow of resources and will not be recognized as revenue until the year for which it is levied.

Receivable for Iowa Industrial New Jobs Training Program (NJTP) – This represents the amount to be remitted to the College for training projects entered into between the College and employers under the provisions of Chapter 260E of the Code of Iowa. The receivable amount is based on expenditures incurred through June 30, 2019 on NJTP projects, including interest incurred on NJTP certificates, less revenues received to date.

Capital Assets – Capital assets, which include land, buildings and improvements, equipment and vehicles, are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value. Acquisition value is the price that would have been paid to acquire a capital asset with equivalent service potential. The costs of normal maintenance and repair that do not add to the value of the asset or materially extend asset lives are not capitalized.

Reportable capital assets are defined by the College as assets with an initial, individual cost in excess of the following thresholds and estimated useful lives in excess of two years:

Asset Class Amount

Land, buildings and improvements $ 5,000 Equipment and vehicles 5,000

Depreciation is computed using the straight-line method over the following estimated useful lives:

Asset Class Years

Buildings and improvements 25-50 Equipment and vehicles 5-10

The College does not capitalize or depreciate library books. The value of each book falls below the capital asset threshold and the balance was deemed immaterial to the financial statements.

70 Return to Agenda


22


D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position (Continued) Deferred Outflows of Resources: Deferred outflows of resources represent a consumption of net position applicable to a future year(s) which will not be recognized as an outflow of resources (expenses) until then. Deferred outflows of resources consist of unrecognized items not yet charged to pension and OPEB expense and contributions from the College after the measurement date but before the end of the College’s reporting period. Salaries and Benefits Payable – Payroll and related expenses for teachers with annual contracts corresponding to the current school year, which are payable in July and August, have been accrued as liabilities.

Advances from Grantors – Grant proceeds which have been received by the Community College, but will be spent in a succeeding fiscal year.

Compensated Absences – College employees accumulate a limited amount of earned but unused vacation and sick leave hours for subsequent use or for payment upon termination, death or retirement. Amounts representing the cost of compensated absences are recorded as liabilities. These liabilities have been computed based on rates of pay in effect at June 30, 2019.

Pensions – For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the fiduciary net position of the Iowa Public Employees’ Retirement System (IPERS) and additions to/deductions from IPERS’ fiduciary net position have been determined on the same basis as they are reported by IPERS. For this purpose, benefit payments, including refunds of employee contributions, are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Total OPEB Liability – For purposes of measuring the total OPEB liability, deferred outflows of resources related to OPEB, and OPEB expense, information has been determined based on Iowa Central Community College’s actuary report. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms.

Deferred Inflows of Resources – Deferred inflows of resources represent an acquisition of net position applicable to a future year(s) which will not be recognized as an inflow of resources (revenue) until that time. Deferred inflows of resources in the Statement of Net Position consists of succeeding year property tax receivable that will not be recognized as revenue until the year for which it is levied, unrecognized items not yet charged to pension and the unamortized portion of the net difference between projected and actual earnings on pension plan assets.

Auxiliary Enterprise Revenues – Auxiliary enterprise revenues primarily represent revenues generated by the bookstore, dormitories, Fuel Lab, Willow Ridge Restaurant and Golf Course, Health and Fitness Center, self-insurance program and athletics.

Summer Session – The College operates summer sessions during May, June and July. Revenues and expenses for the summer sessions are recorded in the appropriate fiscal year. Tuition and fees are allocated based on the load study distributions supplied by the College Registrar.

Tuition and Fees – Tuition and fees revenues are reported net of scholarship allowances, while stipends and other payments made directly to students are presented as scholarship and fellowship expenses.

71 Return to Agenda


23


D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position (Continued) Operating and Non-operating Activities – Operating activities, as reported in the Statement of Revenues, Expenses and Changes in Net Position, are transactions that result from exchange transactions, such as payments received for providing services and payments made for services or goods received. Non-operating activities include state appropriations, Pell grants, property tax and interest income.

E. Scholarship Allowances and Student Aid Financial aid to students is reported in the financial statements under the alternative method, as prescribed by the National Association of College and University Business Officers (NACUBO). Certain aid (loans, funds provided to students as awarded by third parties and Federal Direct Lending) is accounted for as third party payments (credited to the student’s account as if the student made the payment). All other aid is reflected in the financial statements as operating expenses or scholarship allowances, which reduce revenues. The amount reported as operating expenses represents the portion of aid that was provided to the student in the form of cash. Scholarship allowances represent the portion of aid provided to the student in the form of reduced tuition. Under the alternative method, these amounts are computed on a total College basis by allocating the cash payments to students, excluding payments for services, on the ratio of all aid to the aid not considered to be third party aid.

Note 2. Cash and Pooled Investments

The College’s deposits in banks at June 30, 2019 were entirely covered by federal depository insurance or by the

State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional

assessments against the depositories to insure there will be no loss of public funds.

The College is authorized by statute to invest public funds in obligations of the United States government, its

agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured

depository institutions approved by the Board of Directors; prime eligible bankers acceptances; certain high

rated commercial paper; perfected repurchase agreements; certain registered open-end management investment

companies; certain joint investment trusts; and warrants or improvement certificates of a drainage district.

At June 30, 2019, the College had the following investments:

Investment Fair Value

Goldman Sachs Financial Square Fund 1,133,032 $

The College uses the fair value hierarchy established by generally accepted accounting principles based on the

valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets

for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are significant

unobservable inputs.

The recurring fair value measurement for the Goldman Sachs Financial Square Fund of $1,133,032 was

determined using the last quoted market price on the exchange. (Level 1 inputs)

72 Return to Agenda


24

Note 2. Cash and Pooled Investments (Continued)

Component Unit – The Iowa Central Community College Foundation (Foundation) categorizes its fair value

measurements within the fair value hierarchy established by generally accepted accounting principles. The

Foundation has the following recurring fair value measurement as of June 30, 2019:

Investment Fair Value Level 1 Level 2

Cash and cash equivalents 1,267,270 $ 1,267,270 $ -$

Equities 4,120,352 4,120,352 -

Real estate investment trusts and fund 683,648 683,648 -

Alternative investments 477,724 477,724 -

Fixed income 1,052,232 755,677 296,555

Total 7,601,226 $ 7,304,671 $ 296,555 $

Level 1 inputs are quoted prices in active markets for identical assets. Level 2 inputs are significant other

observable inputs. Level 3 inputs are significant unobservable inputs.

Interest rate risk – The College’s investment policy limits the investment of operating funds (funds expected to

be expended in the current budget year or within 15 months of receipt) to instruments that mature within 397

days. Funds not identified as operating funds may be invested in investments with maturities longer than 397

days, but the maturities shall be consistent with the needs and use of the College.

Custodial Credit Risk – The College has no policy in place regarding custodial credit risk and deposits with

financial institutions, however, deposits are insured by the state sinking fund, which provides for additional

assessments against depositories to avoid loss of public funds.

Note 3. Inventories

The College’s inventories at June 30, 2019 are as follows:

Type Amount

Merchandise held for resale 675,538 $

73 Return to Agenda


25

Note 4. Capital Assets

Capital assets activity for the year ended June 30, 2019 is as follows:

Balance

Beginning

of Year Additions Deletions

Balance

End of

Year

Capital assets not being depreciated:

Land 2,342,870 $ 1,846,548 $ -$ 4,189,418 $

Construction in progress 69,753 1,874,348 - 1,944,101

Total capital assets not

being depreciated 2,412,623 3,720,896 - 6,133,519

Capital assets being depreciated:

Buildings 81,935,305 300,000 - 82,235,305

Improvements other than buildings 6,891,772 - - 6,891,772

Equipment and vehicles 13,423,246 911,524 (485,684) 13,849,086

Total capital assets

being depreciated 102,250,323 1,211,524 (485,684) 102,976,163

Less accumulated depreciation for:

Buildings 22,023,132 1,569,929 - 23,593,061

Improvements other than buildings 4,017,057 217,732 - 4,234,789

Equipment and vehicles 10,833,191 1,053,744 (478,924) 11,408,011

Total accumulated depreciation 36,873,380 2,841,405 (478,924) 39,235,861

Total capital assets

being depreciated, net 65,376,943 (1,629,881) (6,760) 63,740,302

Capital assets, net 67,789,566 $ 2,091,015 $ (6,760) $ 69,873,821 $

74 Return to Agenda


26

Note 5. Long-Term Liabilities

A summary of changes in long-term liabilities for the year ended June 30, 2019 is as follows:

Certificates

Payable

Capital

Loan

Notes

Payable

Bonds

Payable

Net

Pension

Liability

Net OPEB

Liability Total

Balance,

beginning

of year 11,915,000 $ 4,635,000 $ 38,478,503 $ 11,091,531 $ 9,213,137 $ 75,333,171 $

Additions - 1,495,130 - - 1,405,292 2,900,422

Reductions (985,000) (711,521) (2,374,175) (431,199) - (4,501,895)

Balance, end

of year 10,930,000 $ 5,418,609 $ 36,104,328 $ 10,660,332 $ 10,618,429 $ 73,731,698 $

Due within

one year 1,340,000 $ 850,000 $ 2,760,000 $ -$ -$ 4,950,000 $

Bonds payable listed on the Statement of Net Position include unamortized premium of $162,356 and

unamortized deferred charges of $29,419.

Certificates Payable:

In accordance with agreements dated between July 1, 2006 and June 28, 2018, the College issued certificates

totaling $18,170,000 with interest rates ranging from 0.50% to 5.55% per annum. The debt was incurred to

fund the development and training costs incurred related to implementing Chapter 260E of the Code of Iowa,

Iowa Industrial New Jobs Training Program (NJTP). NJTP’s purpose is to provide tax-aided training for

employees of industries that are new to or are expanding their operations within the State of Iowa. Interest is

payable semiannually, while principal payments are due annually. The certificates are to be retired by proceeds

from anticipated job credits from withholding tax, incremental property tax, budgeted reserves and, in the case

of default, from standby property tax.

The certificates will mature as follows:

Principal Interest Total

2020 1,340,000 $ 330,018 $ 1,670,018 $

2021 1,395,000 295,548 1,690,548

2022 1,440,000 258,054 1,698,054

2023 1,330,000 217,857 1,547,857

2024 1,370,000 178,627 1,548,627

2025-2028 4,055,000 346,275 4,401,275

Total 10,930,000 $ 1,626,379 $ 12,556,379 $

Year Ending June 30

75 Return to Agenda


27

Note 5. Long-Term Liabilities (Continued)

Note Payable:

The College has issued notes for the purchase and construction of College properties as allowed by

Section 260C.19 of the Code of Iowa. Details of the College’s outstanding capital loan notes payable at June

30, 2019 is as follows:

Interest

Rate Principal Interest Total

2020 2.60% 730,000 $ 127,193 $ 857,193 $

2021 2.75 755,000 108,212 863,212

2022 3.00 785,000 87,450 872,450

2023 4.00 815,000 63,900 878,900

2024 3.50-4.00 845,000 31,300 876,300

Total 3,930,000 $ 418,055 $ 4,348,055 $

Year Ending June 30,

Note Issuance of September 19, 2011

Interest Principal Interest Total

2020 4.00% 120,000 $ 57,400 $ 177,400 $

2021 4.00 125,000 52,600 177,600

2022 4.00 130,000 47,600 177,600

2023 4.00 135,000 42,400 177,400

2024 4.00 140,000 37,000 177,000

2025-2029 4.00 785,000 96,800 881,800

Total 1,435,000 $ 333,800 $ 1,768,800 $


Note Issuance of December 6, 2018

Bonds Payable:

The College issued bonds for the construction of College properties as allowed by Section 260C.19 of the Code

of Iowa. Details of the College’s June 30, 2019 bonded indebtedness are as follows:

Interest


2020 2.30% 330,000 $ 7,590 $ 337,590 $

Bond Issuance of March 5, 2012


76 Return to Agenda


28


Bonds Payable (continued):

Interest


2020 2.30% 325,000 $ 80,110 $ 405,110 $

2021 2.50 330,000 72,635 402,635

2022 2.65 345,000 64,385 409,385

2023 2.63 350,000 55,243 405,243

2024 2.85 360,000 46,055 406,055

2025-2027 3.00-3.20 1,160,000 73,290 1,233,290

Total 2,870,000 $ 391,718 $ 3,261,718 $


Bond Issuance of March 5, 2012

Interest


2020 2.00% 275,000 $ 127,933 $ 402,933 $

2021 2.20 280,000 122,433 402,433

2022 2.40 285,000 116,273 401,273

2023 2.60 290,000 109,433 399,433

2024 3.10 300,000 101,893 401,893

2025-2029 3.10-3.25 1,645,000 362,587 2,007,587

2030-2032 3.25-3.50 1,120,000 79,275 1,199,275

Total 4,195,000 $ 1,019,827 $ 5,214,827 $


Bond Issuance of June 1, 2012

Interest


2020 1.30% 60,000 $ 85,010 $ 145,010 $

2021 1.30 65,000 84,230 149,230

2022 1.80 65,000 83,385 148,385

2023 1.80 65,000 82,215 147,215

2024 1.80 65,000 81,045 146,045

2025-2028 2.50 3,195,000 203,000 3,398,000

Total 3,515,000 $ 618,885 $ 4,133,885 $


Bond Refunding of December 28, 2012

77 Return to Agenda


29


Bonds Payable (continued):

Interest


2020 1.35% 985,000 $ 108,771 $ 1,093,771 $

2021 1.55 995,000 95,474 1,090,474

2022 1.75 1,010,000 80,051 1,090,051

2023 1.90 1,030,000 62,376 1,092,376

2024 2.10 1,050,000 42,806 1,092,806

2025-2028 2.25-2.38 910,000 31,325 941,325

Total 5,980,000 $ 420,803 $ 6,400,803 $


Bond Refunding of February 20, 2013

Interest


2020 2.00% 130,000 $ 63,698 $ 193,698 $

2021 1.50 135,000 61,098 196,098

2022 1.50 135,000 59,073 194,073

2023 1.50 135,000 57,048 192,048

2024 2.00 140,000 55,023 195,023

2025-2029 2.00-2.25 740,000 230,975 970,975

2030-2034 3.00 845,000 133,650 978,650

2035-2036 3.00 375,000 16,950 391,950

Total 2,635,000 $ 677,515 $ 3,312,515 $


Bond Refunding of June 30, 2016

Interest


2020 3.00% 655,000 $ 531,169 $ 1,186,169 $

2021 3.00 670,000 511,519 1,181,519

2022 3.00 695,000 491,419 1,186,419

2023 3.00 715,000 470,569 1,185,569

2024 3.00 735,000 449,118 1,184,118

2025-2029 3.00 4,015,000 1,901,494 5,916,494

2030-2034 3.13-3.38 4,675,000 1,242,138 5,917,138

2035-2038 3.50 4,340,000 391,925 4,731,925

Total 16,500,000 $ 5,989,351 $ 22,489,351 $


Bond Issuance June 28, 2018

78 Return to Agenda


30

Note 6. Operating Leases

The College has leased various facilities within the area to house different divisions of the College and

equipment. These leases have been classified as operating leases and, accordingly, all rents are expensed as

incurred. The leases expire between July 2018 and July 2023 and require various minimum annual rentals.

Certain leases are renewable for additional periods. Some of the leases also require the payment of normal

maintenance and insurance on the properties. In most cases, management expects that the leases will be

renewed or replaced by other leases. The following is a schedule by year of future minimum rental payments

required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year

as of June 30, 2019:

Amount

2020 171,026 $

2021 99,798

2022 91,822

2023 89,907

Total 452,553 $

Year Ending June 30

Rents for the year ended June 30, 2019 for all operating leases, except those with terms of a month or less which

were not renewed, totaled $359,639.

Note 7. Iowa Public Employees Retirement System (IPERS)

Plan Description: IPERS membership is mandatory for employees of the College except for those covered by

another retirement system. Employees of the College are provided with pensions through a cost-sharing

multiple employer defined benefit pension plan administered by IPERS. IPERS issues a stand-alone financial

report which is available to the public by mail at P. O. Box 9117, Des Moines, Iowa 50306-9117 or at

www.ipers.org.

IPERS benefits are established under Iowa Code Chapter 97B and the administrative rules thereunder. Chapter

97B and the administrative rules are the official plan documents. The following brief description is provided for

general informational purposes only. Refer to the plan documents for more information.

Pension Benefits: A regular member may retire at normal retirement age and receive monthly benefits without

an early-retirement reduction. Normal retirement age is age 65, any time after reaching age 62 with 20 or more

years of covered employment, or when the member’s years of service plus the member’s age at the last birthday

equals or exceeds 88, whichever comes first. These qualifications must be met on the member’s first month of

entitlement to benefits. Members cannot begin receiving retirement benefits before age 55. The formula used to

calculate a Regular member’s monthly IPERS benefit includes:

• A multiplier based on years of service.

• The member’s highest five-year average salary, except members with service before June 20, 2012 will

use the highest three-year average salary as of that date if it is greater than the highest five-year average

salary.

79 Return to Agenda


31

Note 7. Iowa Public Employees Retirement System (IPERS) (Continued)

If a member retires before normal retirement age, the member’s monthly retirement benefit will be permanently

reduced by an early-retirement reduction. The early-retirement reduction is calculated differently for service

earned before and after July 1, 2012. For service earned before July 1, 2012, the reduction is 0.25% for each

month the member receives benefits before the member’s earliest normal retirement age. For service earned on

or after July 1, 2012, the reduction is 0.50% for each month the member receives benefits before age 65.

Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same for the

rest of the member’s lifetime. However, to combat the effects of inflation, retirees who began receiving benefits

prior to July 1990 receive a guaranteed dividend with their regular November benefit payments.

Disability and Death Benefits: A vested member who is awarded federal Social Security disability or Railroad

Retirement disability benefits is eligible to claim IPERS benefits regardless of age. Disability benefits are not

reduced for early retirement. If a member dies before retirement, the member’s beneficiary will receive a

lifetime annuity or a lump-sum payment equal to the present actuarial value of the member’s accrued benefit or

calculated with a set formula, whichever is greater. When a member dies after retirement, death benefits depend

on the benefit option the member selected at retirement.

Contributions: Contribution rates are established by IPERS following the annual actuarial valuation which

applies IPERS’ Contribution Rate Funding Policy and Actuarial Amortization Method. State statute limits the

amount rates can increase or decrease each year to 1 percentage point. IPERS Contribution Rate Funding Policy

requires the actuarial contribution rate be determined using the “entry age normal” actuarial cost method and the

actuarial assumptions and methods approved by the IPERS Investment Board. The actuarial contribution rate

covers normal cost plus the unfunded actuarial liability payment based on a 30-year amortization period. The

payment to amortize the unfunded actuarial liability is determined as level percentage of payroll based on the

Actuarial Amortization Method adopted by the Investment Board.

In fiscal year 2019, pursuant to the required rate, Regular members contributed 6.29% of covered payroll and

the College contributed 9.44% of covered payroll, for a total rate of 15.73%.

The College’s contributions to IPERS for the year ended June 30, 2019 were $1,229,026.

80 Return to Agenda


32


Net Pension Liability, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources

Related to Pensions: At June 30, 2019, the College reported a liability of $10,660,332 for its proportionate share

of the net pension liability. The net pension liability was measured as of June 30, 2018 and the total pension

liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The

College’s proportion of the net pension liability was based on the College’s share of contributions to IPERS

relative to the contributions of all IPERS participating employers. At June 30, 2018, the College’s proportion

was 0.168456%, which was an increase of 0.001948% from its proportion measured as of June 30, 2017.

For the year ended June 30, 2019, the College recognized pension expense of $1,390,018. At June 30, 2019, the

College reported deferred outflows of resources and deferred inflows of resources related to pensions from the

following sources:

Deferred

Outflows of

Resources

Deferred

Inflows of

Resources

Differences between expected and actual experience 58,449$ 240,941$

Changes of assumptions 1,520,762 -

Net difference between projected and actual earnings

on IPERS' investments - 292,912

Changes in proportion and differences between College

contributions and the College's proportionate share

of contributions 161,678 57,519

College contributions subsequent to the measurement date 1,229,026 -

Total 2,969,915$ 591,372$

$1,229,026 reported as deferred outflows of resources related to pensions resulting from College contributions

subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year

ending June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of

resources related to pensions will be recognized in pension expense as follows:

Year Ending June 30, Total

2020 734,550$

2021 427,621

2022 (27,947)

2023 19,571

2024 (4,278)

1,149,517$

There were no non-employer contributing entities to IPERS.

81 Return to Agenda


33


Actuarial Assumptions: The total pension liability in the June 30, 2018 actuarial valuation was determined

using the following actuarial assumptions applied to all periods included in the measurement:

Rate of inflation

(effective June 30, 2017) 2.60% per annum.

Rates of salary increase 3.25 to 16.25% average, including inflation.

(effective June 30, 2017) Rates vary by membership group.

Long-term investment rate of return 7.00% compounded annually, net of

(effective June 30, 2017) investment expense, including inflation.

Wage growth 3.25% per annum, based on 2.60% inflation

(effective June 30, 2017) and 0.65% real wage inflation.

The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an economic

assumption study dated March 24, 2017 and a demographic assumption study dated June 28, 2018.

Mortality rates used in the 2018 valuation were based on the RP-2014 Employee and Healthy Annuitant Tables

with MP-2017 generational adjustments.

The long-term expected rate of return on IPERS’ investments was determined using a building-block method in

which best-estimate ranges of expected future real rates (expected returns, net of investment expense and

inflation) are developed for each major asset class. These ranges are combined to produce the long-term

expected rate of return by weighting the expected future real rates of return by the target asset allocation

percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of

return for each major asset class are summarized in the following table:

Asset Class

Domestic equity 22.0 % 6.01 %

International equity 15.0 6.48

Global smart beta equity 3.0 6.23

Core plus fixed income 27.0 1.97

Public credit 3.5 3.93

Public real assets 7.0 2.91

Cash 1.0 ( 0.25 )

Private equity 11.0 10.81

Private real assets 7.5 4.14

Private credit 3.0 3.11

100.0 %

Asset Allocation

Long-term Expected

Real Rate of Return

82 Return to Agenda


34


Discount Rate: The discount rate used to measure the total pension liability was 7.00%. The projection of cash

flows used to determine the discount rate assumed employee contributions will be made at the contractually

required rate and contributions from the College will be made at contractually required rates, actuarially

determined. Based on those assumptions, IPERS’ fiduciary net position was projected to be available to make

all projected future benefit payments of current active and inactive employees. Therefore, the long-term

expected rate of return on IPERS’ investments was applied to all periods of projected benefit payments to

determine the total pension liability.

Sensitivity of the College’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate:

The following presents the College’s proportionate share of the net pension liability calculated using the

discount rate of 7.00%, as well as what the College’s proportionate share of the net pension liability would be if

it were calculated using a discount rate 1.0% lower (6.00%) or 1.0% higher (8.00%) than the current rate.

1%

Decrease

(6.0%)

Discount

Rate

(7.0%)

1%

Increase

(8.0%)

College's proportionate share of the net pension liability 18,092,726$ 10,660,332$ 4,425,659$

IPERS Fiduciary Net Position: Detailed information about IPERS’ fiduciary net position is available in the

separately issued IPERS financial report which is available on IPERS’ website at www.ipers.org.

Payables to IPERS: At June 30, 2019, the College reported payables to IPERS of $104,060 for legally required

College contributions and $69,337 for legally required employee contributions withheld from employee wages

which had not yet been remitted to IPERS.

Note 8. Teachers Insurance and Annuity Association (TIAA)

The College contributes to the TIAA retirement program, which is a defined contribution pension plan. TIAA

administers the retirement plan for the College. The defined contribution retirement plan provides individual

annuities for each plan participant. As required by the Code of Iowa, all eligible College employees must

participate in a retirement plan from the date they are employed.

Benefit terms, including contribution requirements, for TIAA are established and specified by the plan with

TIAA and in accordance with the Code of Iowa. For each employee in the pension plan, the College is required

to contribute 9.44% of annual salary, including overtime pay, to an individual employee account. Each

employee is required to contribute 6.29%. Contributions made by both the College and employees vest

immediately. For the year ended June 30, 2019, employee contributions totaled $426,722 and the College

recognized pension expense of $640,422.

At June 30, 2019, the College reported payables to the TIAA of $0 for legally required College contributions

and $0 for legally required employee contributions, which had been withheld from employee wages but not yet

remitted to TIAA.

83 Return to Agenda

http://www.ipers.org/


35

Note 9. Other Postemployment Benefits (OPEB)

Plan Description - The College administers a single-employer health benefit plan, which provides medical and

prescription drug benefits for employees, retirees and their spouses. Group insurance benefits are established

under Iowa Code Chapter 509A.13. No assets are accumulated in a trust that meets the criteria in paragraph 4 of

GASB Statement No. 75.

OPEB Benefits: Individuals who are employed by the College are eligible to participate in the group health plan

and are eligible to continue healthcare benefits upon retirement. Retirees under age 65 pay the same premiums

for medical and prescription drug benefits as active employees, which results in an implicit rate subsidy and an

OPEB liability.

Retired participants must be age 55 or older at retirement. At June 30, 2019, the following employees were

covered by the benefit terms:

Inactive employees or beneficiaries currently receiving benefit payments 27

Active employees 322

349

Total OPEB Liability: The College’s total OPEB liability of $10,618,429 was measured as of June 30, 2019,

and was determined by an actuarial valuation as of that date.

Actuarial Assumptions: The total OPEB liability in the June 30, 2019 actuarial valuation was determined using

the following actuarial assumptions and the entry age normal actuarial cost method, applied to all periods

included in the measurement.

Rate of inflation


Rates of salary increase


Discount rate 3.15% compounded annually,

(effective June 30, 2019) including inflation.

Healthcare cost trend rate


Discount Rate: The discount rate used to measure the total OPEB liability was 3.15% which reflects the index

rate for 20-year municipal bonds with an average rating of AA as of the measurement date.

Mortality rates are from the RP 2014 Annuity Mortality Table (2/3 female/1/3 male). Annual retirement

probabilities are based on varying rates by age and turnover probabilities mirror those used by IPERS.

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial

experience study with dates corresponding to those listed above.

84 Return to Agenda


36

Note 9. Other Postemployment Benefits (OPEB) (Continued)

Changes in the Total OPEB Liability:

Total OPEB

Liability

Total OPEB liability beginning of year, as restated 9,213,137$

Changes for the year:

Service cost 859,211

Interest 330,124

Changes in assumptions 473,603

Benefit payments (257,646)

Net changes 1,405,292

Total OPEB liability end of year 10,618,429$

Changes of assumptions reflect a change in the discount rate from 3.72% in fiscal year 2018 to 3.15% in fiscal

year 2019.

Sensitivity of the College’s Total OPEB Liability to Changes in the Discount Rate: The following presents the

total OPEB liability of the College, as well as what the College’s total OPEB liability would be if it were

calculated using a discount rate that is 1% lower (2.15%) or 1% higher (4.15%) than the current discount rate.

1%

Decrease

(2.15%)

Discount

Rate

(3.15%)

1%

Increase

(4.15%)

Total OPEB liability 11,776,370$ 10,618,429$ 9,590,177$

Sensitivity of the College’s Total OPEB Liability to Changes in the Healthcare Cost Trend Rates: The

following presents the total OPEB liability of the College, as well as what the College’s total OPEB liability

would be if it were calculated using healthcare cost trend rates that are 1% lower (5.00%) or 1% higher (7.00%)

than the current healthcare cost trend rates.

1%

Decrease

(5.00%)

Healthcare

Cost Trend

Rate

(6.00%)

1%

Increase

(7.00%)

Total OPEB liability 9,059,644$ 10,618,429$ 12,520,187$

85 Return to Agenda


37

Note 9. Other Postemployment Benefits (OPEB) (Continued)

OPEB Expense and Deferred Outflows of Resources Related to OPEB: For the year ended June 30, 2019, the

College recognized OPEB expense of $1,199,552. At June 30, 2019, the College reported deferred outflows of

resources related to OEPB from the following resources:

Deferred

Outflows of

Resources

Contributions between measurement date and reporting date 257,646$

Changes in assumptions 461,622

Total 719,268$

The amount reported as deferred outflows of resources related to OPEB will be recognized as OPEB expense as

follows:

Year ending June 30, Total

2020 269,627$

2021 11,981

2022 11,981

2023 11,981

2024 11,981

Thereafter 401,717

719,268$

Note 10. Risk Management

Iowa Central Community College carries commercial insurance purchased from insurers for coverage associated

with torts; theft, damage to and destruction of assets; errors and omissions; injuries to employees; and natural

disasters. Settled claims from these risks have not exceeded commercial insurance coverage in any of the past

three fiscal years.

Note 11. New Jobs Training Programs

The College administers the Iowa Industrial New Jobs Training Program (NJTP) in Area V in accordance with

Chapter 260E of the Code of Iowa. NJTP’s purpose is to provide tax-aided training or retraining for employees

of industries that are new to or are expanding their operations within the State of Iowa. Certificates are sold by

the College to fund approved projects and are to be retired by proceeds from anticipated jobs credits from

withholding taxes, incremental property tax, budgeted reserves and in the case of default, from standby property

tax. Since inception, the College administered 113 projects, with 14 currently receiving project funding. The

remaining 99 projects have been completed and the certificates have been paid. In cases where projects exceed

the budgeted amounts, the college intends to obtain additional withholding revenue from the companies.

86 Return to Agenda


38

Note 12. Self-Funded Insurance Program

Effective July 1, 2000, the College has a self-funded insurance program for hospitalization and medical

coverage for its employees. The College limits its losses through the use of stop-loss policies from insurers.

Specific individual losses for claims are limited to $100,000 per year. The College’s aggregate annual loss

limitation is based on a formula that considers, among other things, the total number of employees and was

limited to $5,748,071 in claims as of June 30, 2019. For the year ended June 30, 2019, the College paid

$5,124,023 under the program, which includes health and dental claims, and administrative costs.

Note 13. Subsequent Events

Subsequent events have been evaluated through November 27, 2019, which is the date the financial statements were available to be issued. Events occurring after that date have not been evaluated to determine whether a change in the financial statements would be required.

Note 14. Construction Commitments

The College has entered into contracts and other costs totaling $11,826,827 for the Greehey Student Success

Center, Storm Lake training center and improvement projects. As of June 30, 2019, costs of $1,944,101 had

been incurred against the contracts. The balance of $9,882,726 remaining at June 30, 2019 will be paid as work

on the project progresses.

Note 15. Tax Abatements

Governmental Accounting Standards Statement No. 77 defines tax abatements as a reduction in tax revenues

that results from an agreement between one or more governments and an individual or entity in which (a) one or

more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or

entity promises to take a specific action after the agreement has been entered into that contributes to economic

development or otherwise benefits the governments or the citizens of those governments.

College Tax Abatements

The College provides tax abatements for industrial new jobs training projects with the tax increment financing

as provided for in section 403.19 of the Code of Iowa and/or state income tax withholding as provided for in

section 260E.5 of the Code of Iowa. For these types of projects, the College enters into agreements with

employers which require the College, after employers meet the terms of the agreements, to pay the employers

for the costs of on-the-job training not to exceed 50% of the annual gross payroll costs for up to one year of the

new jobs. No other commitments were made by the College as part of these agreements.

For the year ended June 30, 2019, the College had no abatements of property tax and $1,162,512 of state income

tax withholding under the projects.

87 Return to Agenda


39

Note 15. Tax Abatements (Continued)

Tax Abatements of Other Entities

Property tax revenues of the College were reduced by the following amounts for the year ended June 30, 2019

under agreements entered into by the following entities:

Entity Tax Abatement Program

Amount of

Tax Abated

City of Storm Lake Urban renewal and economic development projects 17,373$

City of Webster City Urban renewal and economic development projects 3,806

City of Humboldt Urban renewal and economic development projects 2,996

City of Renwick Urban renewal and economic development projects 968

Ida County Urban renewal and economic development projects 34,887

City of Lake View Urban renewal and economic development projects 1,874

City of Fort Dodge Urban renewal and economic development projects 7,934

Webster County Urban renewal and economic development projects 43,728

City of Clarion Urban renewal and economic development projects 1,110

City of Lorhville Urban renewal and economic development projects 1,538

City of Jewell Urban renewal and economic development projects 432

City of Kamrar Urban renewal and economic development projects 37

88 Return to Agenda

REQUIRED SUPPLEMENTARY INFORMATION

89 Return to Agenda


90 Return to Agenda

SHARE OF THE NET PENSION LIABILITY

Iowa Public Employees' Retirement System

For the Last Five Years*

(In Thousands)


2019 2018

College's proportion of the net pension liability 0.168456% 0.166508%

College's proportionate share of the net pension liability 10,660$ 11,092$

College's covered payroll 12,661$ 12,429$

College's proportionate share of the net pension liability as a

percentage of its covered payroll 84.20% 89.24%

IPERS' net position as a percentage of the total pension liability 83.62% 82.21%

* In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined

as of June 30 of the preceding fiscal year.

See accompanying Independent Auditor's Report.


SCHEDULE OF THE COLLEGE'S PROPORTIONATE

NOTE: GASB Statement No. 68 requires ten years of information to be presented in this table. However,

until a full 10 year trend is compiled, the College will present information for those years for which

information is available.

91 Return to Agenda

40

2017 2016 2015

0.163709% 0.162918% 0.165689%

10,303$ 8,099$ 6,706$

11,743$ 11,235$ 11,082$

87.74% 72.09% 60.51%

81.82% 85.19% 87.61%

92 Return to Agenda


SCHEDULE OF COLLEGE CONTRIBUTIONS

Iowa Public Employees' Retirement System

For the Last Ten Years

(In Thousands)


2019 2018 2017 2016

Statutorily required contribution 1,229$ 1,131$ 1,110$ 1,049$

Contributions in relation to the

statutorily required contribution (1,229) (1,131) (1,110) (1,049)

Contribution deficiency (excess) -$ -$ -$ -$

College's covered payroll 13,019$ 12,661$ 12,429$ 11,743$

Contributions as a percentage of

covered payroll 9.44% 8.93% 8.93% 8.93%


93 Return to Agenda

41

2015 2014 2013 2012 2011 2010

1,003$ 990$ 973$ 860$ 711$ 645$

(1,003) (990) (973) (860) (711) (645)

- - - - - -

11,235 11,082 11,227 10,651 10,235 9,700

8.93% 8.93% 8.67% 8.07% 6.95% 6.65%

94 Return to Agenda


NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – PENSION LIABILITY

Year ended June 30, 2019

42

Changes of benefit terms:

Legislation enacted in 2010 modified benefit terms for Regular members. The definition of final average salary

changed from the highest three to the highest five years of covered wages. The vesting requirement changed from

four years of service to seven years. The early retirement reduction increased from 3% per year measured from

the member’s first unreduced retirement age to a 6% reduction for each year of retirement before age 65.

Changes of assumptions:

The 2018 valuation implemented the following refinements as a result of a demographic assumption study dated

June 28, 2018:

• Changed mortality assumptions to the RP-2014 mortality tables with mortality improvements modeled

using Scale MP-2017.

• Adjusted retirement rates.

• Lowered disability rates.

• Adjusted the probability of a vested Regular member electing to receive a deferred benefit.

• Adjusted the merit component of the salary increase assumptions.

The 2017 valuation implemented the following refinements as a result of an experience study dated March 24,

2017:

• Decreased the inflation assumption from 3.00% to 2.60%.

• Decreased the assumed rate of interest on member accounts from 3.75% to 3.50% per year.

• Decreased the discount rate from 7.50% to 7.00%.

• Decreased the wage growth assumption from 4.00% to 3.25%.

• Decreased the payroll growth assumption from 4.00% to 3.25%.

The 2014 valuation implemented the following refinements as a result of a quadrennial experience study:

• Decreased the inflation assumption from 3.25% to 3.00%.

• Decreased the assumed rate of interest on member accounts from 4.00% to 3.75% per year.

• Adjusted male mortality rates for retirees in the Regular membership group.

• Moved from an open 30-year amortization period to a closed 30-year amortization period for the UAL

(unfunded actuarial liability) beginning June 30, 2014. Each year thereafter, changes in the UAL from plan

experience will be amortized on a separate closed 20-year period.

The 2010 valuation implemented the following refinements as a result of a quadrennial experience study:

• Adjusted retiree mortality assumptions.

• Modified retirement rates to reflect fewer retirements.

• Lowered disability rates at most ages.

• Lowered employment termination rates.

• Generally increased the probability of terminating members receiving a deferred retirement benefit.

• Modified salary increase assumptions based on various service duration.

95 Return to Agenda

43

For the Last Two Years


2019 2018

Service cost 859,211 $ 778,745 $

Interest cost 330,124 338,052

Changes in assumptions 473,603 (43,292)

Benefit payments (257,646) (326,310)

Net change in total OPEB liability 1,405,292 747,195

Total OPEB liability beginnning of year, as restated 9,213,137 8,465,942

Total OPEB liability end of year 10,618,429 $ 9,213,137 $

Covered-employee payroll 18,327,703 $ 18,443,559 $

Total OPEB liability as a percentage of covered-employee payroll 57.94% 49.95%

Changes in benefit terms:

There were no significant changes in benefit terms.

Changes in assumptions:

Year ended June 30, 2019 3.15%




NOTE: GASB Statement No. 75 requires ten years of information to be presented in this table. However,

until a full 10 year trend is compiled, the College will present information for those years for which

information is available.


SCHEDULE OF CHANGES IN THE COLLEGE'S

TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES

Changes in assumptions and other inputs reflect the effects of changes in the discount rate each period.

The following are the discount rates used in each period.

Notes to Schedule of Changes in the College's Total OPEB Liability and Related Ratios

96 Return to Agenda

SUPPLEMENTARY INFORMATION

97 Return to Agenda


NOTE TO SUPPLEMENTARY INFORMATION

June 30, 2019

44

Supplementary information of the College is presented on the basis of funds, each of which is considered to be a

separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-

balancing accounts that comprise its assets, liabilities, fund balance, revenue and expenditures. The various

fund groups and their designated purposes are as follows:

Current Funds – The Current Funds are utilized to account for those economic resources that are expendable

for the purpose of performing the primary and supporting missions of the College and consist of the

following:

Unrestricted Fund – The Educational and Support subgroup of the Unrestricted Fund accounts for the

general operations of the College.

The Auxiliary Enterprises subgroup accounts for activities which are intended to provide non-

instructional services for sales to students, staff and/or institutional departments, and which are

supplemental to the educational and general objectives of the College.

Restricted Fund – The Restricted Fund is used to account for resources that are available for the operation

and support of the educational program but which are restricted as to their use by donors or outside

agencies.

Loan Funds – The Loan Funds are used to account for loans to students, and are financed primarily by the

federal government.

Plant Funds – The Plant Funds are used to account for transactions relating to investment in the College

properties, and consist of the following self-balancing accounts:

Unexpended – This account is used to account for the unexpended resources derived from various sources

for the acquisition or construction of plant assets.

Investment in Plant – This account is used to account for the excess of the carrying value of plant assets

over the related liabilities.

Agency Funds – The Agency Funds are used to account for assets held by the College in a custodial

capacity or as an agent for others. Agency Funds’ assets equal liabilities.

The Budgetary Comparison Schedule of Expenditures – Budget to Actual provides a comparison of the budget

to actual expenditures for those funds and/or levies required to be budgeted. Since Iowa Central Community

College uses Business-Type Activities reporting, this budgetary comparison information is included as

supplementary information.

Schedules presented in supplementary information are reported using the current financial resources

measurement focus and the accrual basis of accounting with modifications for depreciation and other items

included in the adjustments column. The schedule of revenues, expenditures and changes in fund balances is a

schedule of financial activities related to the current reporting period. It does not purport to present the results

of operations or net income or loss for the period as would a statement of income or a statement of revenues and

expenses.

98 Return to Agenda

45

IOWA CENTRAL COMMUNITY COLLEGE Schedule 1


Funds/Levy

Original

Budget

Amended

Budget Actual

Variance

Between

Actual and

Amended

Budget

Unrestricted 37,050,000 $ 37,050,000 $ 33,990,857 $ 3,059,143 $

Restricted 14,758,270 14,758,270 5,376,877 9,381,393

Unemployment 30,000 30,000 31,048 (1,048)

Tort liability 560,000 560,000 590,430 (30,430)

Insurance 1,400,000 1,400,000 1,250,571 149,429

Early retirement 3,200,000 3,200,000 3,147,638 52,362

Equipment replacement 900,000 900,000 210,940 689,060

Total restricted 20,848,270 20,848,270 10,607,504 10,240,766

Plant 12,230,000 17,200,000 9,678,240 7,521,760

Bonds and interest 1,716,711 1,716,711 772,891 943,820

Total 71,844,981 $ 76,814,981 $ 55,049,492 $ 21,765,489 $

BUDGETARY COMPARISON SCHEDULE OF EXPENDITURES -

BUDGET TO ACTUAL

Note to Budgetary Reporting:

The Board of Directors annually prepares a budget designating the proposed expenditures for operation of the

College on a basis consistent with U. S. generally accepting accounting principles. Following required public

notice and hearing, and in accordance with Chapter 260C of the Code of Iowa, the Board of Directors certifies

the approved budget to the appropriate county auditors and then submits the budget to the State Board of

Education for approval. The budget may be amended during the year utilizing similar statutorily prescribed

procedures. Formal and legal budgetary control is based on total operating expenditures.

Budgets are not required to be adopted for the Auxiliary Enterprises subgroup, Workforce Improvement Act,

Scholarships and Grants Accounts, Loan Funds, Endowment Funds and Agency Funds.

For the year ended June 30, 2019, the College’s expenditures did not exceed the amount budgeted.

See accompanying Independent Auditor’s Report.

99 Return to Agenda


BALANCE SHEET - ALL FUNDS

June 30, 2019

Loan

Unrestricted Restricted Funds

Assets and Deferred Outflows of Resources

Assets:

Cash and pooled investments 16,980,275 $ 15,866,531 $ 562 $

Receivables:

Accounts 2,029,828 30,423 -

Property tax:

Delinquent 10,754 38,398 -

Succeeding year 1,750,569 3,306,891 -

Iowa Industrial New Jobs Training - 6,659,927 -

Due from other funds 1,320,258 - -

Due from other governments - 379,976 -

Inventories 675,538 - -

Prepaid expenses 83,048 558,501 -

Capital assets:

Land - - -

Buildings - - -

Construction in progress - - -

Improvements other than buildings - - -

Equipment and vehicles - - -

Accumulated depreciation - - -

Total assets 22,850,270 26,840,647 562

Deferred Outflows of Resources

OPEB related deferred outflows - - -

Pension related deferred outflows - - -

- - -

Total assets and deferred

outflows of resources 22,850,270 $ 26,840,647 $ 562 $


Current Funds

100 Return to Agenda

46

Schedule 2

Investment Agency

Unexpended in Plant Funds Adjustments Total

17,517,179 $ -$ 685,264 $ -$ 51,049,811 $

- - - - 2,060,251

21,877 - - - 71,029

4,021,677 - - - 9,079,137

- - - - 6,659,927

- - - (1,320,258) -

- - 89,690 - 469,666

- - - - 675,538

- - - - 641,549

- 4,189,418 - - 4,189,418

- 82,235,305 - - 82,235,305

- 1,944,101 - - 1,944,101

- 6,891,772 - - 6,891,772

- 13,849,086 - - 13,849,086

- - - (39,235,861) (39,235,861)

21,560,733 109,109,682 774,954 (40,556,119) 140,580,729

- - - 719,268 719,268

- - - 2,969,915 2,969,915

- - - 3,689,183 3,689,183

21,560,733 $ 109,109,682 $ 774,954 $ (36,866,936) $ 144,269,912 $

Plant Funds



BALANCE SHEET - ALL FUNDS

June 30, 2019

Loan


Liabilities, Deferred Inflows of Resources

and Fund Balances

Liabilities:

Accounts payable 878,761 $ -$ -$

Salaries and benefits payable 1,416,461 - -

Interest payable 33,877 27,502 -

Due to other funds - 163,314 -

Advances from grantors 782,312 5,542,136 -

Compensated absences 554,859 - -

Deposits held in custody for others - - -

Certificates payable - 10,930,000 -

Capital loan note payable - - -

Bonds payable - - -

Net pension liability - - -

Total OPEB Liability - - -

Total liabilities 3,666,270 16,662,952 -

Deferred inflows of resources

Succeeding year property tax 1,750,569 3,306,891 -

Pension related deferred inflows - - -

1,750,569 3,306,891 -

Fund balances:

Net investment in capital assets - - -

Restricted:

Expendable:

Scholarships and fellowships - 38,020 -

Loans - - 562

Cash reserve - 319,603 -

Other - 6,513,181 -

Auxiliary enterprises 12,562,020 - -

Unrestricted 4,871,411 - -

Total fund balances 17,433,431 6,870,804 562

Total liabilities, deferred inflows

of resources and fund balances 22,850,270 $ 26,840,647 $ 562 $

Current Funds


47

Schedule 2

(Continued)

Investment Agency

Unexpended in Plant Funds Adjustments Total

-$ -$ -$ -$ 878,761 $

- - - - 1,416,461

65,196 - - - 126,575

1,024,900 - 132,044 (1,320,258) -

- - - - 6,324,448

- - - - 554,859

- - 642,910 - 642,910

- - - - 10,930,000

655,000 4,710,000 - 53,609 5,418,609

15,845,000 20,180,000 - 79,328 36,104,328

- - - 10,660,332 10,660,332

- - - 10,618,429 10,618,429

17,590,096 24,890,000 774,954 20,091,440 83,675,712

4,021,677 - - - 9,079,137

- - - - -

- - - 591,372 591,372

4,021,677 - - 591,372 9,670,509

- 84,219,682 - (39,235,861) 44,983,821

- - - - 38,020

- - - - 562

- - - - 319,603

- - - - 6,513,181

- - - (433,724) 12,128,296

(51,040) - - (17,880,163) (13,059,792)

(51,040) 84,219,682 - (57,549,748) 50,923,691

21,560,733 $ 109,109,682 $ 774,954 $ (36,866,936) $ 144,269,912 $

Plant Funds




Loan


Revenues:

General:

State appropriations 11,512,519 $ 3,446,887 $ -$

Tuition and fees 21,622,692 - -

Property tax 1,658,140 5,911,890 -

Federal appropriations 46,638 11,013,624 -

Sales and services 698,878 352,148 -

Interest on investments 602,746 302,560 -

Iowa Industrial New Jobs

Training Program - 718,323 -

Increase in plant investment due to plant

expenditures, including $718,243 of

expenditures in current funds - - -

Increase in plant investment due to

retirement of debt - - -

Miscellaneous 194,018 109,063 -

36,335,631 21,854,495 -

Auxiliary enterprises:

Tuition and fees 694,248 - -

Sales and services 18,248,315 - -

Miscellaneous 245,427 - -

19,187,990 - -

Total revenues 55,523,621 21,854,495 -

Expenditures:


Liberal arts and sciences 6,989,823 - -

Career and technical 7,991,208 966,844 -

Adult education 2,129,189 1,359,305 -

Cooperative services - 1,206,369 -

Administration 1,802,894 339,844 -

Student services 5,831,416 - -

Learning resources 94,617 - -

Physical plant 3,854,302 1,250,571 -

General institution 5,297,408 5,484,571 -

Total education and support 33,990,857 10,607,504 -

Current Funds

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

ALL FUNDS


48

Schedule 3

Investment

Unexpended in Plant Adjustments Total

472,387 $ -$ -$ 15,431,793 $

- - (6,302,264) 15,320,428

3,371,287 - - 10,941,317

- - - 11,060,262

199,177 - - 1,250,203

400,781 - - 1,306,087

- - - 718,323

- 4,932,420 (4,932,420) -

- 3,075,000 (3,075,000) -

- - (11,117) 291,964

4,443,632 8,007,420 (14,320,801) 56,320,377

- - - 694,248

- - (2,738,384) 15,509,931

- - 43,732 289,159

- - (2,694,652) 16,493,338

4,443,632 8,007,420 (17,015,453) 72,813,715

- - (133,355) 6,856,468

- - 227,569 9,185,621

- - 8,335 3,496,829

- - (668,230) 538,139

- - (303,435) 1,839,303

- - 219,406 6,050,822

- - 1,534 96,151

- - 656,607 5,761,480

- - (66,783) 10,715,196

- - (58,352) 44,540,009

Plant Funds





Loan


Expenditures (Continued):

Auxiliary enterprises 17,465,241 $ -$ -$

Scholarships and grants - 10,837,114 -

Administrative and collection costs - - -

Plant asset acquisitions - - -

Retirement of indebtedness - - -

Disposal of plant assets - - -

Depreciation - - -

(Gain) on sale of capital assets - - -

Interest on indebtedness - - -

Total expenditures 51,456,098 21,444,618 -

Excess (deficiency) of revenues

over (under) expenditures 4,067,523 409,877 -

Transfers:

Non-mandatory transfers (2,645,439) 649,171 -

Total transfers (2,645,439) 649,171 -

Net 1,422,084 1,059,048 -

Fund balances, beginning of year 16,011,347 5,811,756 562

Fund balances end of year 17,433,431 $ 6,870,804 $ 562 $


Current Funds

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

ALL FUNDS


49

Schedule 3

(Continued)

Investment

Unexpended in Plant Adjustments Total

-$ -$ (377,750) $ 17,087,491 $

- - (9,040,648) 1,796,466

2,389,063 - - 2,389,063

4,214,177 - (4,214,177) -

3,075,000 - (3,075,000) -

- 485,684 (485,684) -

- - 2,841,405 2,841,405

- - (4,357) (4,357)

772,891 - 832,099 1,604,990

10,451,131 485,684 (13,582,464) 70,255,067

(6,007,499) 7,521,736 (3,432,989) 2,558,648

3,475,000 (1,435,000) (43,732) -

3,475,000 (1,435,000) (43,732) -

(2,532,499) 6,086,736 (3,476,721) 2,558,648

2,481,459 78,132,946 (54,073,027) 48,365,043

(51,040) $ 84,219,682 $ (57,549,748) $ 50,923,691 $

Plant Funds



UNRESTRICTED FUND

EDUCATION AND SUPPORT


Liberal

Arts and Career and Adult Cooperative

Sciences Technical Education Services

Revenues:

State appropriations 6,354,105 $ 4,197,838 $ 917,560 $ -$

Tuition and fees 12,913,297 6,786,773 1,586,353 -

Property tax - - - -

Federal appropriations - - - -

Sales and services 17,165 36,577 242,477 -

Interest on investments - - - -

Miscellaneous 3,201 (89,280) 230,020 -

19,287,768 10,931,908 2,976,410 -

Allocation of support services 1,731,359 1,051,219 356,967 -

Total revenues 21,019,127 11,983,127 3,333,377 -

Expenditures:

Salaries and benefits 6,550,860 6,997,113 1,387,273 -

Services 353,833 118,220 411,478 -

Materials and supplies 73,052 840,966 214,936 -

Travel 12,078 18,009 15,183 -

Plant asset acquisitions - - 72,983 -

Loan cancellation and bad debts - - 27,336 -

Scholarships - - - -

Miscellaneous - 16,900 - -

Total expenditures 6,989,823 7,991,208 2,129,189 -

Allocation of support services 9,309,138 5,652,169 1,919,330 -

Total expenditures 16,298,961 13,643,377 4,048,519 -

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES --

Education


50

Schedule 4

Education

General and

Adminis- Student Learning Physical General Support

tration Services Resources Plant Institution Total

43,016 $ -$ -$ -$ -$ 11,512,519 $

- 28,885 - - 307,384 21,622,692

1,658,140 - - - - 1,658,140

- 46,638 - - - 46,638

5,282 19,789 123 98,633 278,832 698,878

602,746 - - - - 602,746

45,000 77 - 5,000 - 194,018

2,354,184 95,389 123 103,633 586,216 36,335,631

(2,354,184) (95,389) (123) (103,633) (586,216) -

- - - - - 36,335,631

1,022,392 5,442,076 87,771 2,423,240 2,719,105 26,629,830

268,454 193,856 242 564,001 1,496,389 3,406,473

10,445 164,801 5,650 731,614 522,248 2,563,712

57,470 30,323 954 2,412 89,880 226,309

- - - 133,035 30,347 236,365

434,318 - - - - 461,654

- - - - 201,769 201,769

9,815 360 - - 237,670 264,745

1,802,894 5,831,416 94,617 3,854,302 5,297,408 33,990,857

(1,802,894) (5,831,416) (94,617) (3,854,302) (5,297,408) -

- - - - - 33,990,857


Support



UNRESTRICTED FUND

EDUCATION AND SUPPORT


Liberal

Arts and Career and Adult Cooperative

Sciences Technical Education Services

Excess (deficiency) of

revenues over (under)

expenditures 4,720,166 $ (1,660,250) $ (715,142) $ -$

Transfers:

Non-mandatory transfers - (67,946) 8,915 -

Total transfers - (67,946) 8,915 -

Net 4,720,166 $ (1,728,196) $ (706,227) $ -$

Fund balance beginning of year

Fund balance end of year


Education



51

Schedule 4

(Continued)

Education

General and

Adminis- Student Learning Physical General Support

tration Services Resources Plant Institution Total

-$ -$ -$ -$ -$ 2,344,774 $

- 19,531 - 12,957 (1,958,642) (1,985,185)

- 19,531 - 12,957 (1,958,642) (1,985,185)

-$ 19,531 $ -$ 12,957 $ (1,958,642) $ 359,589

4,511,822

4,871,411 $

Support



UNRESTRICTED FUND

AUXILIARY ENTERPRISES


Athletics Self-

Career and Student Insurance

Bookstore Education Organizations Program

Revenues:

Tuition and fees -$ -$ 546,353 $ -$

Sales and services 1,754,931 545,164 221,315 5,903,603

Miscellaneous - - 50,287 -

Total revenues 1,754,931 545,164 817,955 5,903,603

Expenditures:

Salaries and benefits 192,645 - 24,955 -

Services 19,799 42,304 666,626 5,302,021

Materials and supplies 97,000 108,673 809,111 -

Travel - 4,109 753,017 -

Plant asset acquisitions - - 11,855 -

Interest on indebtedness - - - -

Cost of goods sold 984,222 200,803 - -

Scholarships - - 1,316,358 -

Total expenditures 1,293,666 355,889 3,581,922 5,302,021


over (under) expenditures 461,265 189,275 (2,763,967) 601,582

Transfers:

Non-mandatory transfers (801,634) 63,481 2,812,649 (3,754)

Net (340,369) 252,756 48,682 597,828

Fund balances beginning of year 3,289,426 (559,361) 895,488 2,020,463

Fund balances end of year 2,949,057 $ (306,605) $ 944,170 $ 2,618,291 $




52

Schedule 5

Dormitories Miscellaneous Total

122,400 $ 25,495 $ 694,248 $

7,788,560 2,034,742 18,248,315

67,136 128,004 245,427

7,978,096 2,188,241 19,187,990

636,830 914,898 1,769,328

2,620,776 713,677 9,365,203

328,113 433,883 1,776,780

1,250 2,228 760,604

- 92,553 104,408

446,794 - 446,794

- 136,786 1,321,811

603,955 - 1,920,313

4,637,718 2,294,025 17,465,241

3,340,378 (105,784) 1,722,749

(2,934,750) 203,754 (660,254)

405,628 97,970 1,062,495

5,336,729 516,780 11,499,525

5,742,357 $ 614,750 $ 12,562,020 $



RESTRICTED FUND


Scholarships

and Equipment

Grants Replacement Insurance

Revenues:

State appropriations 656,325 $ 19,121 $ 40,087 $

Property tax - 737,074 1,400,943

Federal appropriations 9,465,009 - -

Sales and services - - -

Interest on investments - - -


Training Program - - -


Total revenues 10,230,407 756,195 1,441,030

Expenditures:

Salaries and benefits - - -

Services - 17,438 1,250,571

Materials and supplies - 113,429 -

Travel - - -

Plant asset acquisitions - 80,073 -

Interest on indebtedness - - -

Awards to subrecipients - - -

Federal Pell Grant program 9,219,713 - -

Federal Supplemental Educational

Opportunity Grant 245,296 - -

Iowa College Student Aid Commission 655,951 - -


Total expenditures 10,837,114 210,940 1,250,571


over (under) expenditures (606,707) 545,255 190,459

Transfers:

Non-mandatory transfers 604,799 - -

Net (1,908) 545,255 190,459

Fund balance beginning of year 39,928 909,408 743,361

Fund balance end of year 38,020 $ 1,454,663 $ 933,820 $


SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES


53

Schedule 6

Iowa Industrial

Early Unemployment Cash Tort New Jobs

Retirement Compensation Reserve Liability Training Program Miscellaneous Total

21,667 $ 403 $ -$ 15,534 $ -$ 2,693,750 $ 3,446,887 $

3,184,480 29,555 - 559,838 - - 5,911,890

- - - - - 1,548,615 11,013,624

- - - - - 352,148 352,148

- - - - - 302,560 302,560

- - - - 718,323 - 718,323

- - - - - (10) 109,063

3,206,147 29,958 - 575,372 718,323 4,897,063 21,854,495

3,147,638 31,048 - - - 3,085,247 6,263,933

- - - 590,430 382,452 802,988 3,043,879

- - - - - 328,058 441,487

- - - - - 30,411 30,411

- - - - - 297,397 377,470

- - - - 335,871 - 335,871

- - - - - 30,347 30,347

- - - - - - 9,219,713

- - - - - - 245,296

- - - - - - 655,951

- - - - - 84,106 800,260

3,147,638 31,048 - 590,430 718,323 4,658,554 21,444,618

58,509 (1,090) - (15,058) - 238,509 409,877

- - - - - 44,372 649,171

58,509 (1,090) - (15,058) - 282,881 1,059,048

704,217 72,012 319,603 528,767 - 2,494,460 5,811,756

762,726 $ 70,922 $ 319,603 $ 513,709 $ -$ 2,777,341 $ 6,870,804 $



AGENCY FUNDS


Athletics Federal Direct

and Student Student Loan

Organizations Program

Balances beginning of year 254,020 $ -$

Additions:

Tuition and fees 77,113 -

Federal and state appropriations - 13,583,623

Sales and services 365,222 -

Interest on investments - -


Total additions 540,358 13,583,623

Deductions:

Salaries and benefits - -

Services 28,755 13,583,623

Materials and supplies 210,737 -

Travel 119,700 -

Scholarships 103,536 -


Total deductions 471,561 13,583,623

Transfers:

Non-mandatory transfers (43,732) -

Balances end of year 279,085 $ -$


SCHEDULE OF CHANGES IN DEPOSITS HELD IN CUSTODY FOR OTHERS


54

Schedule 7

Miscellaneous Total

305,560 $ 559,580 $

2,100 79,213

234,532 13,818,155

46,619 411,841

16,735 16,735

- 98,023

299,986 14,423,967

- -

9,418 13,621,796

227,418 438,155

- 119,700

- 103,536

4,885 13,718

241,721 14,296,905

- (43,732)

363,825 $ 642,910 $



SCHEDULE OF CREDIT AND CONTACT HOURS *

Period Ended August 14, 2019

Eligible Not Eligible

Category for Aid for Aid Total

Arts and Sciences 69,665 - 69,665

Career and Technical Education 38,701 - 38,701

Adult Education/Continuing Education - - -

Cooperative Programs/Services - - -

108,366 - 108,366

** Includes 240 hour adjustment of 8,376 hours.


Credit Hours

* The schedule of credit and contact hours is presented on an academic year basis rather than on the

fiscal year in accordance with reporting requirements required by the Iowa Department of Education.


55

Schedule 8

Eligible Not Eligible

for Aid for Aid Total

1,368,022 - 1,368,022

930,568 - 930,568

254,469 158,660 ** 413,129

- 5,181 5,181

2,553,059 163,841 2,716,900

Contact Hours



SCHEDULE OF TAX AND INTERGOVERNMENTAL REVENUES


2019 2018 2017 2016

Local (property tax) 10,941,317 $ 7,903,930 $ 8,653,885 $ 6,193,931 $

State 15,431,793 15,224,300 15,491,690 15,751,285

Federal 11,060,262 11,042,143 11,642,495 11,691,978

Total 37,433,372 $ 34,170,373 $ 35,788,070 $ 33,637,194 $



56

Schedule 9

Year Ended June 30,

2015 2014 2013 2012 2011 2010

6,518,778 $ 6,309,581 $ 5,647,340 $ 5,740,825 $ 6,138,495 $ 5,490,706 $

15,790,624 15,205,498 12,558,759 10,482,371 11,118,078 9,705,796

13,461,596 13,063,176 13,262,726 13,708,947 14,886,911 13,289,803

35,770,998 $ 34,578,255 $ 31,468,825 $ 29,932,143 $ 32,143,484 $ 28,486,305 $




2019 2018 2017 2016

Revenues:

State appropriations 14,959,406 $ 14,768,725 $ 15,008,128 $ 15,180,753 $

Tuition and fees 21,622,692 22,443,948 22,755,039 22,415,153

Property tax 7,570,030 5,305,908 5,801,741 3,374,607

Federal appropriations 11,060,262 11,042,143 11,642,495 11,691,978

Sales and services 1,051,026 2,451,502 1,048,482 814,194

Interest on investments 905,306 443,866 206,143 123,563


Training Program 718,323 2,932,879 1,057,007 253,817

Auxiliary enterprises 19,187,990 18,846,872 18,116,878 17,299,778

Miscellaneous 303,081 603,698 453,929 348,604

Total 77,378,116 $ 78,839,541 $ 76,089,842 $ 71,502,447 $

Expenditures:

Liberal arts and sciences 6,989,823 $ 7,843,271 $ 8,202,147 $ 8,517,433 $

Career and technical 8,958,052 8,677,785 8,642,645 7,991,736

Adult education 3,488,494 3,261,116 2,972,615 3,444,414

Cooperative services 1,206,369 3,499,049 1,500,792 503,379

Administration 2,142,738 2,399,983 2,273,121 1,733,202

Student services 5,831,416 5,603,180 5,556,137 5,007,592

Learning resources 94,617 93,487 113,557 124,000

Physical plant 5,104,873 5,541,143 5,068,734 5,159,053

General institution 10,781,979 8,049,262 9,621,551 8,621,133

Auxiliary enterprises 17,465,241 17,560,480 17,344,219 15,833,927

Scholarships and grants 10,837,114 10,772,728 11,103,065 11,434,318

Workforce Investment Act - - - -

Total 72,900,716 $ 73,301,484 $ 72,398,583 $ 68,370,187 $


SCHEDULE OF CURRENT FUND REVENUES BY SOURCE

AND EXPENDITURES BY FUNCTION


57

Schedule 10

Year Ended June 30,

2015 2014 2013 2012 2011 2010

15,336,180 $ 14,105,499 $ 11,868,116 $ 10,427,406 $ 10,363,645 $ 9,596,735 $

22,873,961 22,524,072 23,773,215 22,660,862 22,102,687 19,758,110

3,758,608 3,623,819 2,946,266 3,098,839 3,540,602 3,002,851

13,461,596 13,063,176 13,262,726 13,708,947 14,886,911 13,289,803

962,129 518,801 558,397 918,308 1,251,525 1,112,727

84,453 78,074 73,452 65,123 65,424 72,115

386,073 1,109,189 484,668 763,740 908,341 979,649

17,417,490 16,089,916 15,224,153 14,520,539 13,015,025 11,771,531

749,628 348,322 418,760 262,903 160,997 154,113

75,030,118 $ 71,460,868 $ 68,609,753 $ 66,426,667 $ 66,295,157 $ 59,737,634 $

9,096,736 $ 9,220,044 $ 9,406,584 $ 8,601,990 $ 8,496,731 $ 7,574,233 $

7,650,607 7,261,605 7,591,126 7,281,811 7,129,584 6,391,435

3,162,936 2,670,432 2,509,545 2,358,489 2,417,605 2,312,987

626,002 1,703,469 1,034,094 1,400,502 1,696,712 2,236,022

1,926,478 1,797,246 1,501,064 1,663,080 1,428,079 1,554,076

4,406,785 6,150,735 6,093,499 5,309,594 4,883,545 4,510,205

449,395 527,686 562,775 579,986 571,816 443,646

5,373,543 4,884,126 5,009,228 5,243,191 4,860,216 4,497,508

9,538,064 7,841,983 7,490,520 7,959,589 8,912,742 8,300,325

15,560,159 12,272,079 12,577,310 12,841,603 10,413,435 9,613,638

13,203,316 12,518,203 12,507,525 12,011,007 12,173,416 9,533,501

- - - 68,633 102,334 109,075

70,994,021 $ 66,847,608 $ 66,283,270 $ 65,319,475 $ 63,086,215 $ 57,076,651 $


58


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Pass-Through

Entity New Loans

CFDA Identifying Program and New Loan

Grantor/Program Number Number Expenditures Guarantees

Direct:

U.S. Department of Education:

Student Financial Assistance Cluster:

Federal Supplemental Educational

Opportunity Grants 84.007 245,296 $ -$

Federal Direct Student Loans 84.268 - 13,583,623

Federal Work-Study Program 84.033 192,101 -

Federal Pell Grant Program 84.063 9,219,713 -

Total Student Financial 9,657,110 13,583,623

TRIO Student Support Services 84.042 P042A150572 246,825 -

Total Direct 9,903,935 13,583,623

Indirect:

U.S. Department of Education:

Iowa Department of Education:

Adult Education -

Basic Grants to States 84.002 FY19 210,171 -

Career and Technical Education -

Basic Grants to States 84.048 90184 582,777 -

Iowa Vocational Rehabilitation Services:Rehabilitation Services-Vocational

Grants to States 84.126 17-VRIN-05 75,768 -

Hawkeye Community College:

Trade Adjustment Assistance

Community College and

Career Training 17.282 FY19 13,103 -

Iowa Department of Corrections:

Title I Corrections 84.013 FY19 43,400 -

925,219 -



59


(Continued)

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Pass-Through

Entity New Loans

CFDA Identifying Program and New Loan

Grantor/Program Number Number Expenditures Guarantees

Indirect (Continued):

U.S. Department of Labor:

Iowa Workforce Development:

WIA/WIOA Adult Program 17.258 17-W-05-WI-OA 128,750 $ -$ WIA/WIOA Dislocated Worker Formula

Grants 17.278 17-W-05-WI-OA 145,409 -

Total Workforce Investment

Act Cluster 274,159 -

Total Indirect 1,199,378 -

Total 11,103,313 $ 13,583,623 $

Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the

federal award activity of Iowa Central Community College under programs of the federal government for the

year ended June 30, 2019. The information in this Schedule is presented in accordance with the requirements of

Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and

Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected

portion of the operations of Iowa Central Community College, it is not intended to and does not present the

financial position, changes in financial position or cash flows of Iowa Central Community College.

Summary of Significant Accounting Policies – Expenditures reported in the Schedule are reported on the

modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained

in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to

reimbursement. Iowa Central community College made no subrecipient payments.

Indirect Cost Rate – Iowa Central Community College has elected not to use the 10% de minimis indirect cost

rate as allowed under the Uniform Guidance.

See accompanying Independent Auditor’s Report.


60



INDEPENDENT AUDITOR'S REPORT

ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON

AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS



Fort Dodge, Iowa

We have audited in accordance with U.S. generally accepted auditing standards and the standards applicable to

financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United

States, the financial statements of Iowa Central Community College and the discretely presented component unit

as of and for the year ended June 30, 2019, and the related Notes to Financial Statements, which collectively

comprise the College’s basic financial statements, and have issued our report thereon dated November 27, 2019.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Iowa Central Community

College’s internal control over financial reporting to determine the audit procedures appropriate in the

circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of

expressing an opinion on the effectiveness of Iowa Central Community College’s internal control. Accordingly,

we do not express an opinion on the effectiveness of Iowa Central Community College’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or

employees, in the normal course of performing their assigned functions, to prevent or detect and correct

misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in

internal control such that there is a reasonable possibility a material misstatement of Iowa Central Community

College’s financial statements will not be prevented or detected and corrected on a timely basis. A significant

deficiency is a deficiency, or a combination of deficiencies, in internal control which is less severe than a

material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was

not designed to identify all deficiencies in internal control that might be material weaknesses or significant

deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified.


61

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Iowa Central Community College’s financial

statements are free of material misstatement, we performed tests of its compliance with certain provisions of

laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material

effect on the determination of financial statement amounts. However, providing an opinion on compliance with

those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The

results of our tests disclosed no instances of noncompliance or other matters that are required to be reported

under Government Auditing Standards.

Comments involving statutory and other legal matters about the College’s operations for the year ended June 30, 2019 are based exclusively on knowledge obtained from procedures performed during our audit of the financial statements of the College. Since our audit was based on tests and samples, not all transactions that might have had an impact on the comments were necessarily audited. The comments involving statutory and other legal matters are not intended to constitute legal interpretations of those statutes.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing and not to provide an opinion on the effectiveness of the College’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the College’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Fort Dodge, Iowa

November 27, 2019


62



INDEPENDENT AUDITOR’S REPORT

ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE

REQUIRED BY THE UNIFORM GUIDANCE



Fort Dodge, Iowa

Report on Compliance for Each Major Federal Program

We have audited Iowa Central Community College’s compliance with the types of compliance requirements described in U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. Iowa Central Community College’s major federal programs are identified in Part I of the accompanying Schedule of Findings and Questioned Costs.

Management’s Responsibility

Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of Iowa Central Community College’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with U.S. generally accepted auditing standards, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the audit requirements of Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether non-compliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Iowa Central Community College’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on Iowa Central Community College’s compliance.

Opinion on Each Major Federal Program

In our opinion, Iowa Central Community College complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019.


63

Report on Internal Control Over Compliance

The management of Iowa Central Community College is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Iowa Central Community College’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the audit procedures appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Iowa Central Community College’s internal control over compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct non-compliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance such that there is a reasonable possibility material non-compliance with a type of compliance requirement of a federal program will not be prevented or detected and corrected on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Fort Dodge, Iowa

November 27, 2019


64


SCHEDULE OF FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2019

Part I: Summary of the Independent Auditor’s Results

(A) An unmodified opinion was issued on the financial statements prepared in accordance with U.S.

generally accepted accounting principles.

(B) No material weaknesses in internal control over financial reporting were disclosed by the audit of

the financial statements.

(C) The audit did not disclose any non-compliance that is material to the financial statements.

(D) No material weaknesses in internal control over major programs were disclosed by the audit of the

financial statements.

(E) An unmodified opinion was issued on compliance with requirements applicable to each major

program.

(F) The audit disclosed no audit findings that were required to be reported in accordance with the

Uniform Guidance, Section 200.516.

(G) Major programs were as follows:

▪ Student Financial Assistance Cluster

▪ Workforce Investment Act Cluster

(H) The dollar threshold used to distinguish between Type A and Type B programs was $750,000.

(I) Iowa Central Community College qualified as a low-risk auditee.

Part II: Findings Related to the Financial Statements:

INSTANCES OF NONCOMPLIANCE:

No matters were reported.

INTERNAL CONTROL DEFICIENCIES:


Part III: Findings and Questioned Costs for Federal Awards:

INSTANCES OF NON-COMPLIANCE:


INTERNAL CONTROL DEFICIENCIES:



65

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)

YEAR ENDED JUNE 30, 2019

Part IV: Other Findings Related to Required Statutory Reporting:

IV-A-19 Certified Budget - Expenditures for the year ended June 30, 2019 did not exceed the amounts

budgeted.

IV-B-19 Questionable Expenditures - No expenditures we believe did not meet the requirements of public

purpose as defined in an Attorney General’s opinion dated April 25, 1979 were noted.

IV-C-19 Travel Expense - No expenditures of Community College money for travel expenses of spouses of

Community College officials or employees were noted. No travel advances to Community

College officials or employees were noted.

IV-D-19 Business Transactions - Business transactions between the Community College and Community

College officials or employees are detailed as follows:

Name, Title and Business Connection Transaction Description Amount

Terri Wessels, Board Member,

Shareholder, Wessels Oil Company, Inc. Supplies 172,982 $

IV-E-19 Bond Coverage - Surety bond coverage of Community College officials and employees is in

accordance with statutory provisions. The amount of coverage should be reviewed annually to

ensure the coverage is adequate for current operations.

IV-F-19 Board Minutes - No transactions were found that we believe should have been approved in the

Board minutes but were not.

IV-G-19 Publication - The College published a statement showing the receipts and disbursements of all

funds, including the names of all persons, firms or corporations to which disbursements were

made, as required by Section 260C.14(12) of the Code of Iowa.

IV-H-19 Deposits and Investments - No instances of non-compliance with the deposit and investment

provisions of Chapters 12B and 12C of the Code of Iowa and the College’s investment policy

were noted.

IV-I-19 Credit/Contact Hours - Eligible credit and contact hours reported to the Iowa Department of

Education by the College for the period ended August 14, 2019 were supported by detailed

records maintained by the College.


IOWA CENTRAL COMMUNITY COLLEGE Fort Dodge, Iowa

RESOLUTION

December 10, 2019

In order to comply with the Master Agreement between Iowa Central

Community College and the Iowa Central Community College Education

Association, and between Iowa Central Community College and the Iowa

Central Community College Classified Employees Association, the Board

of Directors of Iowa Central Community College determines that financial

difficulties may arise from possible cuts in appropriations, uncertainty of

future appropriations, and reduction in enrollment and programs, and that

there is a distinct possibility of the need to reduce staff for the 2020-2021

year. The President is hereby instructed to implement any necessary

procedures in anticipation of such a reduction.


IOWA CENTRAL COMMUNITY COLLEGE Retirement Incentive Program

For Employees Retiring during the Fiscal Year 2019-2020

A Retirement Incentive Program is established for employees who retire on or before

June 30, 2020 and meet the guidelines stated below.

1. Employee must submit written resignation to the College President no later than 4:30pm,

Monday, January 13, 2020, as to retirement on or before June 30, 2020.

2. Employee must be at least 55 years of age on the date of retirement.

3. Employee may apply for a retirement allowance under Chapter 97B, Code of Iowa.

4. Employee has not previously agreed to a Retirement Incentive with the College.

5. Employee must be employed on the date of Board of Directors’ approval of the Retirement

Incentive Program. Employee must have provided eight (8) or more continuous years of

service on the date of retirement and have been covered by the group health insurance plan of

the College during those eight years and be covered by the group health insurance plan on the

date of retirement.

6. Employee’s group health insurance coverage (as approved by the Board on an annual basis)

shall be continued through the month previous to the month the employee becomes eligible

for full Medicare benefits not related to a disability. The College will make the same monthly

Board contribution payment as the retirement year unless the monthly Board contribution

provided for those continuing employment in the retiree’s employment classification changes.

7. Employee shall continue to pay the excess between the required monthly premium and the

Board’s contribution prior to the 15th of the month proceeding the month of coverage.

8. When the employee’s spouse becomes eligible for full Medicare benefits not related to a

disability and the employee is not yet eligible for full Medicare benefits not related to a

disability, group health insurance coverage (as approved by the Board on an annual basis)

shall end for the spouse the end of the month previous to the month the spouse becomes

eligible for full Medicare benefits not related to a disability.

9. When the employee becomes eligible for full Medicare benefits not related to a disability or

dies prior to becoming eligible for full Medicare benefits not related to a disability, group

health insurance coverage (as approved by the Board on an annual basis) may be continued

for the employee’s spouse, if the spouse was covered under the Employee’s group health

insurance, through the month previous to the month the spouse becomes eligible for full

Medicare benefits not related to a disability with the employee/spouse paying the amount of

the total insurance premiums monthly by submitting the appropriate amount to the College

prior to the 15th of the month preceding the month of coverage.


merged area (education) v community college ... - iowa …

Documents