This policy describes the Governing Board approved financial oversight process.
Scope and Applicability
The policy applies to the governing board, the college president, faculty, and staff participating in the financial oversight of the college.
The policy sets out the responsibilities of the board members, the college president, faculty and staff members in the financial review and oversight of the institution.
SFCC shall establish two committees to provide financial oversight:
- The Governing Board shall meet as a committee of the whole.
- The president shall, annually, convene a committee with representatives appointed by the president, the Faculty and Staff Senates, and the Student Government Association.
- Academic Support (Exhibit 11) Funds that provide support services for the College’s primary missions. This includes academic administration, libraries, galleries, ancillary support, academic personnel development and course and curriculum development.
- Auxiliaries Are entities that provide a service to students, faculty or staff and that charge a fee directly related to, but not necessarily equal to, the cost of the service. Auxiliary enterprises are managed as essentially self-supporting operations, such as a bookstore and food services.
- Capital Projects Are for major and minor projects that generally will increase the College’s investment in the plant account. Funds are allocated by action of the Governing Board, by appropriation or by a third-party funding source.
- Debt Service Includes revenues, transfers and expenditures associated with the repayment of bond issues or the retirement of other institution’s debt.
- Expenditures for Instruction (Exhibit 10) Funds for activities that are part of the instructional program: credit and noncredit courses; academic, vocational and technical instruction; remedial and tutorial instruction; community education; adult education; contract training; and regular, special and extension sessions and faculty and chairs compensation, as long as their primary duties are instruction.
- Institutional Support (Exhibit 13) Funds for executive-level activities concerned with management and long-range planning for the entire College, such as the Governing Board (planning, programming, legal services) and fiscal operations, and offices such as Governing Board, President, Foundation, Marketing and Public Relations, Planning and Institutional Research, Human Resources, Safety and Security, Financial Services.
- I & G Expenditures (Instructional and General) Represent general operating costs, including compensation.
- I & G Revenues Funds received by the College from tuition and fees, state appropriations, local mil levy appropriations, and other sources intended to support I & G expenditures.
- Operation and Maintenance of Plant (Exhibit 14) Funds for the operation and maintenance of the physical plant, such as services and maintenance related to landscaping and grounds, facilities, utilities, fire protection, property insurance, physical plant administration, building maintenance, custodial services, and utilities. It does not include expenditures from the institutional plant fund accounts.
- Public Service Funds include revenues and expenditures for organizational units that are established primarily to provide non-instructional services that are beneficial to individuals and groups external to the institution: television and radio stations, general advisory services (e.g. the Small Business Development Corporation), health care and social services (early childhood center), consulting, and similar non-instructional services (conference center).
- Renewal and Replacement Are expenditures for major maintenance or renewal and replacement of existing plant assets, including buildings, campus infrastructure and equipment that do not increase the institution’s investment in plant.
- Student Aid and Grants Financial assistance provided to students in the form of outright grants, tuition and fee waivers and remissions trainee stipends, and gifts and prizes, either awarded by and/or administered through the College.
- Student Services (Exhibit 12) Funds for activities that contribute to the student’s emotional and physical well-being, such as counseling, career guidance and student aid administration and offices such as Enrollment, Registrar, Financial Aid, Counseling Services, Career Services, Student Services administration, etc.
- Student Social and Cultural Are funds for activities whose primary purpose is to contribute to students’ emotional and physical well-being and to their intellectual, cultural and social development outside the context of the formal instruction program, such as student government, student leadership, student organizations and clubs, and student activities.
The Governing Board shall meet as a Finance Committee of the whole to review financial statements and proposed budgets.
1. Only the Governing Board has the authority to approve budgets, budget adjustments and financial statements.
2. The Board may request reports from any or all of the topic related teams to be presented at the Board Finance Committee meeting.
B. Each year, the college president shall convene a Financial Oversight Committee.
1. The Faculty Senate, the Staff Senate and the president shall each appoint five members and the Student Government Association shall appoint two members to serve on the Committee.
2. Monthly Duties:
a. The Financial Oversight Committee shall review the college’s monthly financial statements prior to each Governing Board meeting.
b. Appropriate financial staff shall attend the meeting to explain the statements and answer questions.
c. Any issues or concerns not adequately addressed by the college’s financial staff should be communicated to the college president and through the president, the concerns will be shared with the Governing Board.
3. Budget Duties:
a. During the budget process, the Financial Oversight Committee shall break into five topic-driven teams (subcommittees):
i. I & G Revenues
ii. I & G Expenditures
iii. Student Social & Cultural, Public Services, Student Aid & Grants, Auxiliary
iv. Capitol/ Renewal & Debt Service
v. Budget Overview/Cash Balances
b. Each team shall review all materials relevant to the development of its part of the annual budget including revenue assumptions, current and anticipated expenses and other issues. Each team’s findings and any concerns shall be communicated to the full Financial Oversight Committee.
c. The Financial Oversight Committee shall review the institutional budget prior to presentation to the full Governing Board and communicate its findings to the college president and the Governing Board.
Statement of Accountability and Responsibility
The Governing Board, president, and those faculty and staff responsible for financial review and oversight are responsible for the implementation and enforcement of this policy. They will work together with the different departments and offices to comply with this policy and develop procedures that will enforce this policy regarding awareness, prevention, and remediation.
SFCC Governing Board approved: 9/23/15