Core Requirement 2.11.1

 

The institution has a sound financial base and demonstrated financial stability to support the mission of the institution and the scope of its programs and services. The member institution provides the following financial statements: (1) an institutional audit (or Standard Review Report issued in accordance with Statements on Standards for Accounting and Review Services issued by the AICPA for those institutions audited as part of a system wide or statewide audit) and written institutional management letter for the most recent fiscal year prepared by an independent certified public accountant and/or an appropriate governmental auditing agency employing the appropriate audit (or Standard Review Report) guide; (2) a statement of financial position of unrestricted net assets, exclusive of plant assets and plant-related debt, which represents the  change in unrestricted net assets attributable to operations for the most recent year; and (3) an annual budget that is preceded by sound planning, is subject to sound fiscal procedures, and is approved by the governing board. Audit requirements for applicant institutions may be found in Commission policy “Accreditation Procedures for Applicant Institutions.” (Financial Resources)

 

COMPLIANCE

 

Narrative:

 

The institution has a sound and stable financial base as indicated by a number of measures. The institution has an annual audit conducted by an independent certified public accountant that reports directly to the Board of Trustees. The annual audit is conducted on all funds of the institution and includes a single audit of all financial aid programs. In terms of the annual operating budget, the three main sources of revenue are strong and stable to growing as reported in the independent audit for the year ended August 31, 2007 (see Statistical Supplement 2). Tuition and fees net of scholarship allowances and discounts have grown from $1,322,519 in 2002 to $2,198,299 in 2007. During the same period state appropriations were stable reporting $6,845,150 in 2002 and in 2007 $6,948,017. In 2007 local ad valorem tax receipts were $2,036,614 and $2,077,901 in 2002. The number of students attending the institution is increasing as well. Student headcount enrollment in credit programs have increased by 10.7% over the last five years (see Statistical Supplement 15).

 

The annual audit for the year ended August 31, 2007 also reported in Statistical Supplement 2 that the operating and non-operating revenue increased from $15,908,843 to $18,293,384 respectively for years 2002 to 2007. Corresponding expenditures increased from $14,878,026 in 2002 to $17,858,035 in 2007, as reported in Statistical Supplement 3. Sound budget planning preceded by strong strategic and annual planning has allowed the institution to grow the net assets, net of related debt, by 43.8% from 2002 to 2007 ($5,090,355 to $7,318,720) as reported in the annual audit for August 31, 2007 (see Statistical Supplement 1).

 


Documentation

 

1.    2007 Vernon College Annual Audit

2.    Statistical Supplement 2, Revenue by Source

3.    Statistical Supplement 15, Enrollment Details

4.    Statistical Supplement 3, Program Expenses

5.    Statistical Supplement 1, Net Assets by Component