Reserve funds used to offset Victoria College deficit
Nov. 18, 2013 at 5:18 a.m.
Updated Nov. 19, 2013 at 5:19 a.m.
Unexpected costs spurred by state-level insurance charges and a decrease in enrollment have been offset by Victoria College's reserve funds.
"We were able to cover this expenditure with our reserves," said Tom Butler, VC president. "We were also able to be in the board's policy on the amount of reserve that we always want to hold."
VC trustees discussed the cause of the college's deficit from last year, its 2012-13 final audit report and its incoming Emerging Technology Complex at a regular board meeting Monday afternoon.
A calculation change made by the Legislature caused a decrease in funds allocated to colleges for employee insurance, Butler said.
"The community colleges across the state disagreed with that change," Butler said. "Until it was all resolved, we did not pay those funds because we were advised by our attorneys at the state level that it was potentially unconstitutional."
Those charges, along with a 6.5 percent decrease in credit-course revenue, put the college in a $769,003 deficit for the 2012-13 fiscal year.
However, because of its reserve funds, the college was able to satisfy last year's deficit.
In other financial news, the college received a good rating in its annual audit report presented by Carlos Pecero of Pattillo, Brown and Hill, a certified public accountants and business consultants firm from Waco.
"We have for a number of years had an excellent audit report," Butler said. "A lot of the credit goes to our staff here in the college for maintaining things in good order."
During his presentation, Pecero said, "... the results were very good, just like last year, pretty much the best results that can come from an auditor's point-of-view."
More financial news regarding the college's incoming Emerging Technology Complex came from VC trustee Robby Burdge in his facilities and programs report.
Thirteen of the 35 subcontractors hired for the construction of the 115,000 square-foot training complex are local companies, Burdge said.
Of the $18.2 million budgeted for subcontractors, about 50 percent, or $9.2 million, will be spent locally, Burdge said.
The college will also spend $900,000 less than anticipated for Columbus-based Drymalla Construction Company, the center's main contractor.
The price of the building was finalized after the college made its third bid to Drymalla, guaranteeing the maximum price charged.