1-31: Board Financial Oversight

Policy Overview

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.

Policy Statement

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:

  1. The Governing Board shall meet as a committee of the whole.
  2. The president shall, annually, convene a committee with representatives appointed by the president, the Faculty and Staff Senates, and the Student Government Association.


Instruction and General “I & G” as defined by the New Mexico Higher Education Department, include these exhibits:

  1. Exhibit 10 – Expenditures for Instruction

This category should include funds expended for activities that are part of the institution’s instructional program. Expenditures for 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 are reported in this category. Example of expenditures for Instruction include faculty and chairs compensation, as long as their primary duties are instruction.

  1. Exhibit 11 – Academic Support

This category should include funds expended to provide support services for the institution’s primary missions. This includes academic administration, libraries, galleries, ancillary support, academic personnel development and course and curriculum development.

  1. Exhibit 12 – Student Services

This category should include funds expended for activities that contribute to the student’s emotional and physical well-being. This includes expenditures for counseling and career guidance and student aid administration. This category consists of these offices: Enrollment, Registrar, Financial Aid, Counseling Services, Career Services, Student Services administration, etc.

  1. Exhibit 13 – Institutional Support

This category should include funds expended for central executive-level activities concerned with management and long-range planning for the entire institution, such as the Governing Board, its planning, programming and legal services; and fiscal operations. This category consists of these offices; Governing Board, President, Foundation, Marketing and Public Relations, Office of Planning and Institutional Research, Human Resources, Safety and Security, Financial Services.

  1. Exhibit 14 – Operation and Maintenance of Plant

This category should include all expenditures of current operating funds expended for the operation and maintenance of the physical plant. It includes all expenditures for operations established to provide services and maintenance related to grounds and facilities. Also included are utilities, fire protection, property insurance and similar items. It includes expenditures for physical plant administration, building maintenance, custodial services, landscaping and grounds maintenance and utilities. It does not include expenditures made from the institutional plant fund accounts.

These components are expendable for the purpose of performing the primary missions of instruction.

  1. “I & G Revenues” are Instructional and General revenues received by the College from tuition and fees, state appropriations, local mil levy appropriations and other sources intended to support I & G expenditures.
  2. “I & G Expenditures” represent general operating costs, including compensation, of the College.
  3. “Student Social & Cultural” as defined by NMHED are funds that are expended 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. Activities included are student government, student leadership, student organizations and clubs and student activities. These funds are reported to NMHED in exhibit 15.
  4. “Public Service” as defined by NMHED 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. Activities included here are television and radio, general advisory services (SBDC), health care and social services (early childhood center), consulting and similar non-instructional services (conference center). These funds are reported to NMHED in exhibit 17.
  5. “Student Aid and Grants” as defined by NMHED includes all financial assistance provided to students in the form of outright grants, trainee stipends, and prizes, either awarded by and/or administered through the institution. Included in this category are tuition and fee waivers and remissions and all gifts and prizes to students that are outright grants. These funds are reported to NMHED in exhibit 19.
  6. “Auxiliaries” as defined by NMHED 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. Examples of Auxiliary Enterprises include the bookstore and food services. These funds are reported to NMHED in exhibit 20.
  7. “Capital Projects” are expenditures that are for both major and minor projects that generally will increase the institution’s investment in the plant account. Funds are allocated by action of the Governing Board, by appropriation or by a third-party funding source.
  8. “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.
  9. “Debt Service” is revenues, transfers and expenditures associated with the repayment of bond issues or the retirement of other institution’s debt.

Policy Process

A. 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