Comprehensive Standard 3.10.1

 

The institutionís recent financial history demonstrates financial stability. (Financial Stability)

 

COMPLIANCE

 

Narrative:

 

Student tuition and fees rates are set by the local Board of Trustees. Tuition and fees rates have been rising as well as student credit headcount. These two factors have assisted the institution in generating additional operating revenue from student tuition and fees. State appropriations are generated from student class hours in each program area. The State approves a specific hourly rate to pay community/junior colleges for each teaching unit (contact hour in class) when the Legislature meets. Appropriations are approved by Legislative action for a two year period. In recent years the appropriations for each of the two years has been the same. Because student headcount has been on a slight to steady increase, state support has grown in the last three years. The third and last major source of revenue for the institution is local ad valorem taxes. Each community/junior college in Texas has local taxing authority. Taxing authority is granted by a vote of the taxpayers in each districtís service area. The institution has local ad valorem taxes levied in Wilbarger County, the site of the original campus. The total local taxes assessed have been very constant in dollars for many years. The Board of Trustees has the authority to set the rate per $100 property valuation on an annual basis. The rate is set along with approving an annual budget in August of each year.

 

The institutionís recent financial history as demonstrated in the annual audit for the year ended August 31, 2007 is very strong. Total net assets as reported on the Statement of Net Assets on page 13 reported an increase of $494,027 ($12,461,871 to $12,955,898) from 2006 to 2007. Statistical Supplement 1 on page 39 reports a change in net assets less related debt from 2006 to 2007 as $467,581. Schedule A, Schedule of Operating Revenues reported an increase from the prior year as well. Statistical Supplement 2, page 40 reports an increase of $719,117 in operating revenues from 2005 to 2007. The positive change in net assets was generated due to continued budget planning taking advantage of the Strategic Plan, Annual Plan, technology plan, and the facilities plan of the institution. Planning is an integral part of the financial processes and sound budgeting and spending procedures assist the institution in demonstrating and improving financial stability.

 

Documentation

1.    2007 Vernon College Annual Audit

2.    Statement of Net Assets

3.    Statistical Supplement 1, Net Assets by Component

4.    Statistical Supplement 2, Revenue by Source

5.    Schedule A, Schedule of Operating Revenues