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CERTIFICATION OF
COMPLIANCE |
QUALITY ENHANCEMENT PLAN |
REFERENCE ROOM [Compliance Report Index] [Core Requirements] [Comprehensive Standards] [Federal Requirements]
Core Requirement - 2.11 The institution
has a sound financial base and demonstrated financial stability, and
adequate physical resources to support the mission of the institution and
the scope of its programs and services. Judgment of Compliance: Compliance Narrative/Justification for Judgment of Compliance:
The College has also been afforded the opportunity to set aside amounts exceeding 6 million dollars from general operating funds to support local plant fund projects and equipment replacements. This has allowed the College to spend 3.1 million dollars over the past three years in telecommunication, motor pool and print shop equipment replacements; physical plant renovations/additions; and information technology equipment replacements and infrastructure upgrades [1]. Planned projects for the current fiscal year total $2,525,000. A balance of $11,602,708 in total plant funds is projected for Fiscal Year ending June 30, 2004. Southwest’s physical facilities are deemed to be adequate as current academic programs, student services and all administrative offices are accommodated in existing College facilities. Improvements for current facilities have been identified in the College’s Master Plan [2] which was completed in 2003. Implementation of the Master Plan is dependent upon State funding. The Governor’s budget for Fiscal Year 2004-2005 includes funding for the planning phase of a third major campus. A request has also been made by the College for the addition of a new library/academic facility on the Macon Cove Campus. However, by relocating the College’s Computer Resource Center, Southwest was able, by use of local plant funds, to renovate this space adjacent to the library on the Macon Cove Campus and expand this facility by 30%. Additional College priorities for building and infrastructure improvements include the acquisition of additional parking spaces for the Union Avenue Campus and a new Nursing and Biotechnology Facility. College staff are currently reviewing the possibility of acquiring a building adjacent to or near the Union Avenue Campus for this facility. The Nursing/Biotech facility is a main focus of the College’s current major gifts campaign. (a) Annual audits are conducted by the State of Tennessee Comptroller of the Treasury, Division of State Audit, as required by State statute. These audits are conducted in accordance with generally accepted governmental auditing standards in conformance with Audits of College and Universities published by the American Institute of Certified Public Accountants. The audit encompasses all institutional funds, internal controls, administrative controls, and compliance testing. Audits of financial aid programs and the College’s Foundation are included in the state audits. The most recent two years are audited biannually. (See following action plan for completion of current state audits.) In addition to external audits, the College’s internal auditing staff is responsible for reviewing the College’s financial and internal controls in accordance with procedures and standards set forth in the Tennessee Board of Regents Manual for Internal Auditors, TBR Guideline B-050 [3] and Southwest Policy # 1:00:00:00/5 [4] - Internal Auditing. Southwest’s audit of Fiscal Years 2001-2002 and 2002-2003 is in progress. (b) The College is required by State law to prepare annual comprehensive financial statements [5, 6 & 7]. These statements are prepared in accordance with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board (GASB) and guidelines set forth in the Financial Reporting for Tennessee Public Colleges and Universities issued by the State Department of Finance and Administration, Comptroller of the Treasury, and the Tennessee Higher Education Commission (THEC). The statement of changes in net assets is provided as required by governmental accounting standards. Additional statements include the Statement of Revenues, Expenses, and Changes in Net Assets as well as the Statement of Cash Flows. Southwest also publishes a supplemental financial report detailing revenues, expenditures, and schedules of changes in the College’s various funds. (c) Detailed budgets [8 & 9] are submitted to the TBR for its approval three times a year. The proposed budget is prepared in the spring for the fiscal year to begin July 1. This budget is the product of deliberations by campus personnel in support of the College’s five-year strategic goals in light of anticipated revenues and external constraints. In October, the College submits a revised budget taking into consideration actual fall enrollments, faculty appointments, and other estimated costs and closing balances. The spring estimated budget, submitted concurrently with the proposed budget, provides the control totals for the current fiscal year against which final year-end expenditures are compared. In addition to the provisions of TBR Policy # 4:01:00:00, Budget Control [10], the TBR issues specific guidelines to its member institutions for the preparation and presentation of annual budget proposals. Consistent with Southwest Policy # 4:00:00:00/2, Budget Policies and Procedures [11], the College budget is built upon the resource needs of College units as defined by their departmental missions and annual goals. Through this strong link between planning and budgeting, focus is placed on the allocation of resources based upon missions, goals and priorities. All operational plans and budgets are developed by unit managers and are submitted via the College’s internal WEB site “I.E. Planning and Budgeting System”. [12] Budgeting serves as a tool for program management and improvement. The TBR staff reviews the budget before its annual presentation to the full Board for approval at its June meeting. Approval of Tennessee’s annual budget by the State legislature constitutes final budgetary approval for appropriate implementation. The Revised Budget is presented to the Board at its December meeting for approval. The College receives written notification of approval from TBR staff. Approved budget documents are filed in the College’s libraries for public review. Southwest’s unrestricted and approved budget, as of October 31, 2003, is as follows:
The Director of Financial Planning is charged with the continuous monitoring and review of the College’s overall financial position during the course of the fiscal year. Action Plan: Southwest complies with all aspects of this standard with the exception of an institutional audit for the most recent fiscal year. State audits are conducted on a biannual basis. Annual audits for the previous two years are conducted at this time. Due to Southwest’s SACS visitation in 2004, the Division of State Audit agreed to perform the audits earlier than scheduled. [13] Fieldwork for State Audits for the College’s fiscal years 2002 and 2003 commenced December 1, 2003. [13] The fieldwork will be completed in April 2004, and the preliminary reports will be available for College management’s review and response May, 2004. Completed audits will be available summer 2004. [Compliance Report Index] [Core Requirements] [Comprehensive Standards] [Federal Requirements] |
