Finance and Audit Committee Meeting Packet - 05.19 · a. June Meeting - Budget and Truth and...

Board of Governors Finance and Audit Committee

Meeting Notice and Agenda* Friday, May 19, 2017

9:00am District Office, D225

General Matters

1. Call to Order

Action Items

2. Approval of Minutes from April 21, 2017

3. Internal Audit Follow-up

4. RBC Update

5. Facilities Master Plan Presentation

6. June Board Meeting - Finance and Audit Committee Report a. Finalize Year-end Summary and Plan

7. Finance and Audit Committee Web Page

a. List of member names

Reports and Feedback 8. CFO Update (David Bea)

a. June Meeting - Budget and Truth and Taxation Hearing b. Audit and Compliance Functions

Effectiveness Discussion

Information Items 9. Future Agenda Items

a. Enrollment Update - June b. Strategic Plan Update - June c. Financial Aid Update d. Health Plan Self-Insurance e. Update on Local Employers f. Competency-Based Education

Adjournment

Next Meeting Friday, June 16, 2017 District Office, D225

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https://www.pima.edu/meeting-notices-support/2017-docs/201703-20-preliminary-educational-facilities-master-plan.pdf

*Option to recess into executive session – Pursuant to A.R.S. 38-431.03(A)(2) the Committee may vote to go into executive session for discussion or consideration of records exempt by law from public inspection, including the receipt and discussion of information or testimony that is specifically required to be maintained as confidential by state or federal law. **Additional Information – Additional information about the above agenda items is available for review on the College’s website. **The Committee reserves the right to change the order of agenda items. **To request a reasonable accommodation for individuals with disabilities, a minimum of five (5) business days before the event is requested. Contact Phone: (520) 206-4539 Fax: (520) 206-4567. Members of the Committee may participate by telephone, video, or internet conferencing.

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https://www.pima.edu/about-pima/board-of-governors/board-committees/finance-audit-committee/agendas-minutes.html

Governing Board’s Finance and Audit Committee

Friday, April 21, 2017

9:00am

District Office, D225

Meeting Minutes

In Attendance:

Tracy Nuckolls (Chair), David Bea (Ex-Officio), Demion Clinco, Scott Odom, Marie Nemerguth, David

Ortega, Adrianne Regrutto (via telephone), Sylvia Lee (Co-Chair), Clarence Vatne, Terry Quest

(Ex-Officio), Ina Lancaster (Ex-Officio)

Unable to Attend:

Bert Landau, Jesus Manzanedo

General Matters

1. Call to Order Chair Tracy Nuckolls called the meeting to order at 9:04am, noting that eight members were present

and therefore the quorum was met.

Action Items

2. Approval of Minutes from March 3, 2017 Chair Nuckolls asked the attendees if there were any comments regarding the draft minutes from

the last meeting. The members in attendance did not have any changes. A motion was made to

approve the minutes.

Motion No. 201704-01: Approve Minutes from March 3, 2017

First: Clarence Vatne

Second: Sylvia Lee

Vote: All Committee members present voted “aye” by voice vote. Motion Carried.

3. Budget Update and Possible Levy and Debt Issuance Recommendation (David Bea) Dr. Bea brought the committee’s tuition recommendation to increase tuition by $3.00 per unit to

the March Governing Board meeting. The vote was tabled and later approved during the April Board

meeting. The remaining variables to be determined for the budget are salary increases, the amount

of debt to issue, and the tax levy.

Dr. Bea presented a budget model that allowed the members to see the impact of various potential

enrollment, salary, and levy increases on the budget. After extensive discussion and variations of

increases, the committee agreed to recommendations regarding salary, tax levy, an increased

DRAFT

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budget to address enrollment, and a salary market study. Chair Nuckolls will prepare a statement for

the Governing Board meeting on May 10, 2017.

Motion No. 201704-02: Motion to issue a statement at the May Board meeting in support

of: a two percent salary stipend; a three percent increase in the primary tax levy; one

million dollars to assist in marketing for a target increase in enrollment of five percent

within the next 18 months, as well as funding a market compensation comparison for

salaries; and working towards adopting a pay-for-performance based model.

First: Sylvia Lee

Second: Marie Nemerguth

Vote: All Committee members present voted “aye” by voice vote. Motion Carried.

4. Policies and Procedures for Review (David Bea,)

a. BP 4.06 - College Travel b. AP 4.06.01 - College Travel c. AP 4.01.01 - Financial Controls and Institutional Budget d. AP 4.01.04 - Grants

The committee briefly reviewed the policies and procedures listed above.

5. June Board Meeting - Finance and Audit Committee Report

The committee will review the report and send comments to Keri Hill and Denise Dudoit.

6. Meeting Schedule

a. Internal Audit Follow-up: Additional Meeting in May (19th or 26th) Committee members requested a Doodle Poll with additional options be conducted to

determine the next meeting date.

Reports

7. CFO Update (David Bea)

a. Investment Guidelines - Legal Opinion

i. An update will be provided at a later time; questions regarding equity investments

remain.

b. Policy Review Update

i. The College is continuing to review personnel policies and procedures.

c. Strategic Planning Process

i. Nic Richmond, Assistant Vice Chancellor for Planning and Institutional Research,will

provide an update during the June meeting.

Information Items

8. Future Agenda Items a. KPIs/Strategic Plan b. Financial Aid Update c. Enrollment Update d. Health Plan Self-Insurance

Finance and Audit Committee Minutes 2

April 21, 2017

DRAFT

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e. Update on Local Employers f. Competency-Based Education

Effectiveness Discussion

9. Meeting Materials No discussion

Adjournment

The meeting concluded at 11:52am.

Next Meeting:

Friday, May 19, 2017

District Office, D225

Finance and Audit Committee Minutes 3

April 21, 2017

DRAFT

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Automotive Audit Final Report March 23, 2017

DISTRIBUTION: Lee Lambert, Chancellor Board of Governors Finance and Audit Committee Jeff Silvyn, General Counsel Greg Wilson, Dean, Business, Occupational, and Professional Programs David Stephenson, Lead Faculty, Automotive Technology David Dore, Campus President Lamata Mitchell, Vice President of Instruction

Completed By: Lori Cox, Director, Internal Audit

Kurt Weirich, Senior Auditor

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Office of the Internal Auditor Automotive Audit Report March 23, 2017 Page 1 of 5

Automotive Audit, Final Report AUD.FY16-07

EXECUTIVE SUMMARY TheOfficeoftheInternalAuditor(InternalAudit)hascompletedanAutomotiveProgramOperationsAudit;thisauditwasaspecialmanagementrequestfromtheProvost’sOffice.Thepurposeofthisauditistodetermineifcontrolsandprocessescurrentlyinplaceareadequateandfunctioningasintended,andifprocessesareperformedefficientlyandeffectivelyinthefollowingareas;inventorycontrols,buildingsecuritycontrols,purchasingcontrols,travelauthorizations,andFacultyLoadcalculationsandauthorizations.WeexpressourappreciationtotheAutomotiveProgramadministrationandstafffortheirtimeandcooperationduringthisaudit.BACKGROUND ThePimaCommunityCollegeAutomotiveProgram,includingtheAutomotiveLab,islocatedontheDowntownCampus.ThehighlightsfortheAutomotiveProgramarelistedbelow. TheAutomotiveProgramgrantsassociatesdegreesandAutomotivecertificatestostudents. Theprogramhasbeeninexistenceforapproximatelyforty(40)years.Asofthespring2016

semester449studentswereenrolledintheAutomotiveProgram. AnAutomotiveLabisavailableforstudentsforactualhands‐onexperiencesrepairing

automobiles.Facultyandstaffinthelabareavailabletoassiststudentswithautomotiverepairquestions.

TheAutomotiveProgramhasaprimaryemphasisuponaself‐pacedlearningapproachwithstudentsworkingatseparatelearningstationswithcomputerequipmentandautomobileequipment.

Duringthefall2016semestertheMOPAR(FiatChryslerAutomobiles)trainingprogramwaslaunchedforthefirsttimeattheAutomotiveProgram.Thisnewtrainingprogram,workingcloselywiththeautomobileindustry,willprovidestudentswithstateofthearttrainingandmanypotentialnewjobopportunitieswithChrysler/Jeep/Dodgeautomobiledealerships.

AUDITRESULTSOverall,InternalAuditfoundsignificantissueswiththefollowing: TheAutomotivebuildingwasnotsecuredtopreventunauthorizedaccess(contributingto

incidentsoftheftandvandalism). AcompleteandcurrentAutomotivePrograminventorylistingisnotavailable.Inaddition,studentjobplacementratesandtrendinganalysisprocesseshavenotbeendevelopedforallAutomotiveProgramstudentsresultinginincompletedataforidentifyingemploymenttrendsandprovidingstudentswithaccurateemploymentexpectationsaftergraduation.Otherareasreviewedwerefoundtobeoperatingeffectively:purchasingtransactionsandtravelauthorizationsweredeterminedtobeincompliancewithCollegepolicies,andAutomotiveAdministrationutilizesappropriateCollegeFacultyPersonnelpolicieswhendeterminingtheirfacultyloadingratesCONCLUSIONThedetailedfindings(pages2through5)includemanagement’sresponse.AutomotiveProgramAdministrationshouldcontinueeffortstofullyaddressallfindingsbycompletingcorrectiveactionplansoridentifyingalternativesolutionstofullyaddressthefindings.InternalAuditwillfollow‐uponissuesidentifiedinthisauditandwillreportback.InternalAuditisavailabletoprovideassistance,guidanceortoansweranyquestionsduringthisprocess.

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Automotive Audit, Final Report FY16-07

DETAILED RESULTS AUDITSCOPEANDMETHODOLOGYTodetermineifcontrolsandprocessescurrentlyinplaceareadequateandfunctioningasintended,andifprocessesareperformedefficientlyandeffectivelyInternalAuditperformedthefollowing: interviewedapplicableAutomotiveProgramstaffandadministration,Collegeinventory

PropertyControl;PCCPolicesenioradministration;InformationTechnologysenioradministrationandDowntownCampusITpersonnel;Facilitiespersonnelresponsibleforbuildingaccesscontrols;andEnvironmentalHealth&Safetystaff.

reviewedbuildingsecuritycontrol. reviewedAutomotivePrograminventorycontrols,recordsandinventorydocuments. reviewedPurchasingCard(PCard)purchasesandtravelauthorizedbyAutomotiveProgram

staff. examinedvariousAutomotiveProgramdocumentsandprocedures. observedandconductedanonsitevisitofAutomotiveProgramLab,includinginventory

controlsandbuildingphysicalaccesscontrols. performedphysicalinventoryauditofselectedAutomotivecapitalassets(over$5,000)totaling

$169,423. obtainedandrevieweddocumentationfromDowntownCampusBusinessOffice;PCCPolice,

Facilities;CollegeinventoryPropertyControl;FacultyPersonnelPolicies;FiatChryslerAutomobiles‐MOPARautomotivetraining;electronicbuildingarchitecturaldrawingsforproposednewAutomotivecampus;andDowntownCampusandDistrictOfficeInformationTechnologydivisions;andCollegeEnvironmentalHealth&Safetyhazardouswastedocuments.

recalculatedtheAutomotiveProgramFacultyLoadspreadsheetformulasfordataaccuracyanddeterminedcompliancewithCollegeFacultyPersonnelPolicies.

OVERVIEWTheconditionsidentifiedduringtheauditaredetailedbelow;otheritemsoflesssignificanceorriskwerediscussedverballywithmanagementandstaff.

AUD.FY16‐07–Condition1Automotivebuildingwasnotsecuredtopreventunauthorizedaccess.

MaintainingstrongbuildingphysicalaccesscontrolsisrequiredtoprotectCollegeassets,students,faculty,staffandvisitors.Thelackofstrongphysicalaccesscontrolshasledtovandalismofweldingequipment,unauthorizedaccesstothebuilding,andstudentsfromotherdepartmentswalkingthroughtheAutomotivelabforconvenience.Inaddition,alackofstrongphysicalaccesscontrolscouldleadtophysicalharmtostudents,staff,facultyorvisitors.

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RECOMMENDATIONSWerecommendthatAutomotiveProgramadministrationworkscloselywithFacilitiesMaintenanceandSecuritytoaddresstheAutomotiveProgrambuildingaccesscontrols.AutomotiveProgramfacultyandstaffshouldregularlychecktoensurethebuildingissecuredappropriately.Trainingshouldbeprovidedtostaffandfacultyinawarenessandimportanceofaccesscontrolstoprotectinventoryandstaff.

MANAGEMENTCORRECTIVEACTIONPLANSincetheAutomotiveProgramislocatedintheSTWestbuildingthatsharesaccesswiththeWelding,Machining,andBuilding&Constructionprogramswithnoobstaclesbetweeneachlabspace,itisdifficulttopreventunauthorizedaccesswhenclassisinsession.Tominimizetheftandvandalism,thetoolsassociatedwiththetestingstationsforeachAutomotivecoursearekeptinlockedcabinets.Thecabinetsfeaturelabelstoidentifyeachtoolandoutlinesofeachtooltoaidincorrectplacementwithinthecabinetandeasyidentificationofmissingtools.Additionally,specificpiecesofautomotiveequipment,alllaptops,andallmonitorsassociatedwiththeprogramaresecuredbylockingcablemechanisms.Facultyandstaffwillcontinuetolockgatesandcloseroll‐downdoorsafterclassesandpayattentiontopeoplewalkingthroughthelabspace.Withregardtolong‐termsecurityissues,theAppliedTechnologydivisionwillmeetwithFacilitiestodiscussanddevelopacomprehensivesecurityplanwhichmayincludesecuritycameras,doors,gates,locks,andotherfeaturestosecuretheSTWestbuildingandtheAutomotive,Welding,Machining,andBuilding&Constructionprograms.CurrentlyonecanpassfromoneprogramtothenextwithoutobstructionbywalkingthroughtheSTWestbuilding.Thebackgateonthenorthsideofthecampusdoesnotmeettheground,soapersoncouldcrawlunderneathtoaccesstheareaundertheawning.Accountablegroups:DeanofAppliedTechnology,andMaintenance&SecurityrepresentativesTimeframeforcorrections:January31,2017,andonwardforcontinuingtosecuredoors,locktoolcabinets,closeandlockgates,andmaintaindailyvigilanceofpersonswithinthelabs.December31,2018toMarch31,2019BasedonrecentsecurityplanningfortheCollege’sAviationTechnologyCenter,thecostofsuggestedimprovementswillrequirecapitalfundswhichwillbeavailableforrequestinfall2017withfundsavailableonJuly1,2018.

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AUD.FY16‐07–Condition2AcompleteandcurrentAutomotivePrograminventorylisting–includingallautomotiveparts,supplies,andhandtools–isnotavailable.

Standardinventorycontrolsandprocesses,includingacompleteandcurrentinventorylisting,arecriticaltoensureCollegeassetsareproperlyaccountedfor.Thelackofstronginventorycontrolsandprocessescouldleadto: Theftofitemsgoingundetected. Purchasingofadditionalitemsthatareactuallyinstock,

butnotincludedontheinventorylist. Runningoutofneededinventoryitemsandpotential

delaysandadditionalcostsforexpensiverushorderstoobtainitemsquickly.

RECOMMENDATIONSWerecommendthatAutomotiveProgramadministrationandstaffperformafullinventoryofallAutomotivePrograminventoryitemsandgenerateacompletelist.Also,werecommendthatinventorybeaccuratelymaintainedandupdatedasnecessary.MANAGEMENTCORRECTIVEACTIONPLANTheAppliedTechnologydivisionwilldevelopacompleteinventorylisttoaccountforallequipment,tools,andsupplieswithintheAutomotivelab.Accountablegroups:DeanofAppliedTechnology,AutomotiveDepartment,potentialpartnershipwithGrainger,currentlyundercontractwiththeCollege.Timeframeforcorrection:December31,2017.

AUD.FY16‐07–Condition3AutomotivejobplacementrateinformationisnotconsistentlymaintainedoranalyzedforallAutomotivestudents.

Aprocessin placetoconsistentlymaintainjobplacementratesandperformtrendinganalysisforallAutomotivestudentsisnecessarytohelpensurethattheprogramismeetingtheneedsofstudentsandtheautomotiveindustry.Thelackofafulljobplacementrateandtrendinganalysiscouldleadto: Aprogramthatdoesnotmeettheemploymentneedsofthe

automotiveindustry; Studentsbecomingdiscouragedorfeelingmisleadabout

employmentopportunitiesaftergraduation;and Inaccurateorincompletemeasuresofprogram

effectivenesswithoutcompleteemploymentandtrendingdata.

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RECOMMENDATIONS DevelopaprocesstoensurejobplacementratesandtrendinganalysisisperformedforallAutomotivestudents.ConsiderworkingwithCollegeInstitutionalResearchandCareerServicesstafftodevelopthisnewprocess.MANAGEMENT CORRECTIVE ACTION PLAN Automotivefacultymembersmaintainalistofseveralhundredstudentsthathavesecuredapositionwithlocalemployers.TheAppliedTechnologydivisionwilldevelopajobplacementtrackingprocesstoanalyzejobplacementofallAutomotivestudents.Accountablegroups:DeanofAppliedTechnology,AutomotiveDepartment,potentialpartnershipwithInstitutionalResearchandCareerServices.Timeframeforcorrection:December31,2017.

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i

Aviation Center Controls Follow-Up Audit Final Report March 28, 2017

DISTRIBUTION: Lee Lambert, Chancellor Board of Governors Finance and Audit Committee Jeff Silvyn, General Counsel Greg Wilson, Academic Dean, Business, Occupational and Professional

Programs David Dore, Campus President Lamata Mitchell, Vice President of Instruction Jason Bowersock, Academic Director, Aviation Technology Center



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OfficeoftheInternalAuditorAviationCenterControlsFollow‐UpReportMarch28,2017Page1of3

EXECUTIVE SUMMARY

TheOfficeoftheInternalAuditor(InternalAudit)hascompletedathirdAviationCenterControlsfollow‐upaudit.TheInstituteofInternalAuditors(IIA)InternationalStandardsfortheProfessionalPracticeofInternalAuditing(Standards)requirethatInternalAuditfollow‐upregardingthedispositionofmanagement’sactionstoaddressrisksidentifiedandcommunicatetheresultsoftheauditengagement.Thepurposeofthisthirdfollow‐upauditistodetermineifthefindingsidentifiedintheSeptember22,2014auditwereaddressedandtocommunicatetheimplementationstatusofManagement’sCorrectiveActionPlans.Twopreviousfollow‐upauditsofAviationCenterControlswereissuedonJune9,2015andMay5,2016.WeexpressourappreciationtotheAviationCenteradministrationandstafffortheirtimeandcooperationduringthisfollow‐upaudit.STATUSSUMMARYThenewAviationAcademicDirectorandDean,Business,OccupationalandProfessionalProgramsareworkingdiligentlytoaddressfindingsastheywerenotinvolvedinprioraudits.Overall,twoofsixauditfindingsarenotyetfully‐addressed;howeversubstantialprogresshasbeenmade(seedetailbelow).Allotherpriorauditfindingshavebeenaddressed. ComprehensiveCashHandlingProcedures

ComprehensivecashhandlingproceduresforsupplementalincomeforfeeschargedbyfacultyforFAAcertificationexaminationshasnotbeenfully‐addressed.AcommitteeofstakeholderswasestablishedinJanuary2017todevelopcashhandlingproceduresandnewpaymentprocesses.Creditcardpaymenttransactionswillbeprocessedthroughthe“PCCMarketplace”forFAAcertificationfeesresultinginimprovedcashcontrolsandproperaccounting.NewcashhandlingproceduresandpaymentprocessingwillbefullyimplementedbyMay18,2017.

AviationCenterBuildingPhysicalAccessSecurity

AviationCenterbuildingphysicalaccesssecurityhasnotbeenfully‐addressed.Someactionshavebeentakenincludingsignificantlyrestrictingbuildingmasterkeysissuedtofacultyandstaff.Inaddition,a“keytrap”boxthatrequiresasign‐inandsign‐outofkeysprovidesadocumentedaudittrail.TheplannednewAviationCenterbuildingsecuritysystem,includingkeylessaccessandsurveillancecameras,isnotyetcompleted.AvendorproposalwasreceivedonDecember21,2016andfundinghasbeenallocated.Thenewsecuritysystemwillhelpprovidestrongerbuildingphysicalaccesssecurityresultinginreducedriskoftheftofinventoryitems,includingthecriticalFAAregulatedAviationpartsandspecializedtools.ThenewsecuritysystemwillbeinstalledandfullyoperationalbyNovember17,2017.

CONCLUSIONAviationCenterAdministrationshouldcontinuewithplanstofullyaddressthetworemainingfindings.InternalAuditisavailabletoprovideassistance,guidanceortoansweranyquestionsduringthisprocess.

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Office of the Internal Auditor Aviation Center Controls Follow-Up Report March 28, 2017 Page 2 of 3

Aviation Center Controls Follow-Up Audit Report AUD.FY17-03

DETAILEDRESULTSTodetermineifthefindingsintheSeptember2014auditwereaddressedandassesstheimplementationstatusofManagement’sCorrectiveActionPlansInternalAudit: interviewedapplicableAviationCenterstaffandadministration, reviewedvendorproposaldocumentsforAviationCenterbuildingsecuritysystem, reviewedAviationCenterinventoryrecordsandinventoryaudits, reviewedCollegeConflictofInterestformsforAviationstaff, examinedAviationCenterdocumentsandprocedures.AUDITFINDINGSSTATUSSUMMARY*OriginalAuditFinding FindingStatus

Addressed SubstantiallyComplete>50%

PartiallyComplete≤50%

NoProgress

AUD.FY14‐01–Finding#1–Inventorycontrolsareinadequate:asaresult,thereislittleassurancethatinventoryisaccountedfor,trackedandnotmisused.

AUD.FY14‐01‐Finding#2–Buildingphysicalaccesssecurityisinadequate.

*AUD.FY14‐01–Finding#3–Studentinformationcontrolsareinadequate.

*AUD.FY14‐01‐Finding#4–Eventandvolunteercontrolsareinadequate.

AUD.FY14‐01‐Finding#5–Conflictofinterestdisclosureisinadequateresultinginnon‐compliancewithStateofArizona’sConflictofInterestLawandCollegepolicies.

AUD.FY14‐01‐Finding#6–WrittencashhandlingproceduresandcontrolsregardingsupplementalincomeareincompletepotentiallyresultingincashnotbeingaccountedforproperlyandinconsistentfeeschargedtostudentsforFAAtestingbyfaculty.

LEGEND

‐Currentfollow‐upauditstatus. ‐StatusasofMay5,2016follow‐upaudit. ‐StatusasofJune9,2015follow–upaudit.IMPLEMENTATIONSTATUSCLASSIFICATIONS

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Office of the Internal Auditor Aviation Center Controls Follow-Up Report March 28, 2017 Page 3 of 3

Aviation Center Controls Follow-Up Audit Report AUD.FY17-03

Theimplementationofeachcorrectiveactionisclassifiedintooneofthefollowingfour(4)statuscategoriesbelow:FindingStatusClassifications DescriptionsAddressed Implementedat100%orrisk/issueaddressed.SubstantiallyComplete>50% Substantiallycompletewithmorethan50%

completion;butlessthan100%.PartiallyComplete≤50% Partiallycompletewithlessthan50%

completion;butmorethan0%.NoProgress Noprogressobservedoractiontaken.*NotethatauditfindingAUD.FY14‐01#3andauditfindingAUD.FY14‐01#4wereaddressedduringthepreviousfollow‐upsaudit(issuedMay5,2016andJune9,2015).

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Center for International Education and Global Engagement Follow-Up Audit Final Report April 21, 2017

DISTRIBUTION: Lee Lambert, Chancellor Governing Board Finance and Audit Committee Jeff Silvyn, General Counsel Ricardo Castro-Salazar, Vice President of International Development Lisa Nutt, Associate Director Morgan Phillips, Campus President



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OfficeoftheInternalAuditorCenterforInternationalEducationandGlobalEngagementFollow‐Up,ReportApril21,2017Page1of4

Center for International Education and Global Engagement Follow-Up Audit Report AUD.FY17-02

EXECUTIVE SUMMARY TheOfficeoftheInternalAuditor(InternalAudit)hascompletedafollow‐upauditoftheCenterforInternationalEducationandGlobalEngagement.(CIEGE).TheInstituteofInternalAuditors(IIA)InternationalStandardsfortheProfessionalPracticeofInternalAuditing(Standards)requiresthatInternalAuditfollow‐upregardingthedispositionofmanagement’sactionstoaddressrisksidentifiedandcommunicatetheresultsoftheauditengagement.Thepurposeofthisfollow‐upauditwastodetermineifthefindingsidentifiedintheMay2016auditwereaddressedandtocommunicatetheimplementationstatusofManagement’sCorrectiveActionPlans.AnauditoftheCenterforInternationalEducationandGlobalEngagement(formerlyknownastheInternationalStudentServicesOffice)wascompletedinMay2012.TheMay2016auditincludedfollow‐upon2012issuesaswellasnewauditstepsandareas.WeexpressourappreciationtotheCenterforInternationalEducationandGlobalEngagement(CIEGE)administrationandstafffortheirtimeandcooperationduringthisfollow‐upaudit.CONDITIONSSUMMARYOverall,theCIEGEadministrationandstaffhavemadesignificantprogresstoaddressconditionsidentifiedinthepreviousaudit.Oftheelevenconditions(findings),ninewereaddressed,onewassubstantiallycomplete,andonewaspartiallycomplete.Oftheconditionsnotfullyaddressed,theCollege’sagreementfortheBecalosprogramwasofmostconcern.TheBecalosProgramisanagreementbetweentheCollegeandMexicanorganizationstoprovideMexicanstudentsexposuretoUnitedStatesculture,Science,Technology,EngineeringandMathematics(STEM)disciplinesandEnglishasaSecondLanguageclasses.SeventyinternationalstudentsfromMexicoparticipatedinthefallsemester2016BecalosProgram.AsprioragreementsfortheBecalosprogramwereprimarilyverbal,wecommendtheCIEGEfordevelopingamoreformalwrittenproposal.Thewrittenproposalagreementforthefall2016semesterBecalosProgramwasnotreviewedbyCollegeGeneralCounselthusincreasingtheriskofliability,exposure,andreputationalissuesforterms,conditions,andresponsibilitiesnotaddressedintheagreement.Inaddition,theVicePresidentforInternationalDevelopment(VPID)signedtheagreementonbehalfoftheCollege;currentCollegepoliciesandproceduresdonotdelegateauthoritytotheVPIDtosignsuchagreements.

CONCLUSIONManagementandstaffhaveandcontinuetoworkdiligentlytoaddressconditions.WerecommendtheCIEGEleadershipworkwithGeneralCounseltodevelopastandardtemplatetousewithfutureBecalosagreementstostreamlinetheprocessandensurethenecessarytermsandconditionsareincludedtolimittheCollege’sliabilityandexposure.Additionalfollow‐upauditdetailsareprovidedonpages2through4ofthisreport.Tofacilitateanadditionalfollow‐upaudit,werequestthatCIEGEnotifyInternalAuditastheremainingconditionsareaddressedandprovidetheappropriatesupportingdocumentationforreview.InternalAuditisavailabletoprovideassistance,guidanceortoansweranyquestionsduringthisprocess.

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DETAILED RESULTS FOLLOW‐UPAUDITSCOPEANDMETHODOLOGYTodetermineifthefindingsintheMay2016auditwereaddressedandassesstheimplementationstatusofManagement’sCorrectiveActionPlansInternalAudit: interviewedapplicableCenterforInternationalEducationandGlobalEngagementstaffand

administration. examinedCenterforInternationalEducationandGlobalEngagementdocumentsand

procedures. reviewedBecalosProgramproposaldocuments. reviewedinternationalstudenthousingcontractforBecalosProgram.OVERVIEWTheCIEGEworkeddiligentlytoaddressconditionsnotedontheMay2016audit,fullyaddressing9conditionsandsubstantiallyorpartiallyaddressingtwoconditions.Toaddressconditions,andtoworkaroundpostponementinthedevelopmentofautomatedITtoolstoaidinaddressingsomeconditions,CIEGEmanagementandstaffdevelopedalternativemanualprocessesandcontrolsforinternationalapplicationpaymentprocessingandreceipts,visacoding,andmonitoringofinternationalstudentswhomayinappropriatelyutilizedomesticstudentapplications.Ofthefindingsnotyetfullyaddressed,theBecalosProgramagreementistheprimaryriskarea(seepage1).Theremainingcondition–writtendepartmentoperatingprocedures–hasbeensubstantiallyaddressed.Inadditiontostandardoperatingprocedures,CIEGEplanstoincorporateprocessesforDACAand/orstudentswithalackofimmigrationdocumentation.CIEGEwillproceedtocompleteoperatingproceduresoncetheProvost’sOfficeobtainsapprovalfromtheExecutiveLeadershipTeam(ELT)regardingnewproceduresrelatedtodegreeseekingimmigrantinternationalstudents(thetargetdateisApril/May2017).AUDITFINDINGSSTATUSSUMMARYOriginalAuditFinding FindingStatus

Addressed SubstantiallyComplete>50%


NoProgress

REPEATCONDITIONS(ALSOFINDINGSONTHEFY12AUDIT)AUD.FY16‐01–Finding#1WrittenISSOdepartmentaloperatingproceduresdonotexist.

AUD.FY16‐01‐Finding#2PriortoAugust2015,InternationalJ1visastudentswerenotprovidedwiththerequiredon‐campusemploymentinformationdelineatingwherethestudentcanwork.

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OriginalAuditFinding FindingStatusAddressed Substantially

Complete>50%


NoProgress

AUD.FY16‐01–Finding#3PriortoAugust2015theInternationalStudentServicesOfficedidnothaveaprocessinplacetomonitoracademicprogressofinternationalstudents.

CURRENTCONDITIONSAUD.FY16‐01‐Finding#4PriortoAugust2015theInternationalStudentServicesOfficedidnothaveaprocess/systeminplacetoperiodicallyreviewallBannersystemrecordsforchangesinvisastatus.

AUD.FY16‐01‐Finding#5PriortoAugust2015noprocesswasinplacetoensurethatallinternationalstudentshaveprovidedacurrentaddressandtelephonenumber,asrequired.

AUD.FY16‐01‐Finding#6Recordsofstudentapplicationfeesarenotconsistentlymaintainedforstudentswithvisasissuedbyotherschoolsorstudentswithnon‐F1Visas.

AUD.FY16‐01‐Finding#7–VisacodesintheBannersystemarenotalwaysaccuratelyappliedbyISSOstaff.

AUD.FY16‐01‐Finding#8–AprocessisnotinplacetoidentifyorpreventinternationalstudentsfrombypassingtheISSOinternationalstudentapplicationandutilizingadomesticstudentapplication.

AUD.FY16‐01‐Finding#9–Awrittencontractforthefall2015Becalosprogram(sponsoredbytheMexicangovernment)doesnotexist.

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OriginalAuditFinding FindingStatusAddressed Substantially

Complete>50%


NoProgress

AUD.FY16‐01‐Finding#10–Collegeemailsystemsutilizedtocollectinternationalstudentdatawerenotsecure(unencryptedemail).

AUD.FY16‐01‐Finding#11–NoISSOrecordsdisposalcomplianceplanexistedpriortoNovember24,2015.

IMPLEMENTATIONSTATUSCLASSIFICATIONSTheimplementationofeachcorrectiveactionisclassifiedintooneofthefollowingfourstatuscategoriesbelow:FindingStatusClassifications DescriptionsAddressed Implementedat100%orrisk/issueaddressed.SubstantiallyComplete>50% Substantiallycompletewithmorethan50%

completion;butlessthan100%.PartiallyComplete≤50% Partiallycompletewithlessthan50%

completion;butmorethan0%.NoProgress Noprogressobservedoractiontaken.TICKMARKLEGEND ‐Currentfollow‐upauditstatus. ‐StatusasofMay2016audit.

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RBC Global Asset Management (U.S.) Inc.Minneapolis | Boston | Chicago800.553.2143 | us.rbcgam.com

Pima County Community College

Finance and Audit Committee Presentation

May 19, 2017

John UtterManaging Director, Head of Institutional Client Service – U.S.

Scott CabalkaVP, Institutional Portfolio Manager

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2

Table of Contents

I. Market Update

II. Portfolio Review

III. Appendix

I. Professionals & Bios

II. Glossary of Investment Terms

III. Investment Policy Statement

22

3

Economy & Market Review

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4

Overview

Issues impacting growth and the US bond market

• Gridlock in Washington

– Pro-growth policies hard to implement

– Anti-growth policies more unilateral in nature

• Notable headwinds to higher rates

• Expect 2% domestic growth

• Fed to raise rates but very cautiously

Updated as of April 2017

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5

New Administration – Elevated Volatility & Uncertainty

• Fiscal stimulus – positive for growth

Tax Reform

Infrastructure Spending

Possible without budget neutrality?

• Immigration and Trade – negative for growth

Reduced supply of labor

Tariffs or other reductions in free trade

Timing & scale of implementation are uncertain but both policy outcomes

will put upward pressure on inflation

As of 3.31.17

Source: Philadelphia Federal Reserve

0

50

100

150

200

250

300

1981 1987 1993 1999 2005 2011 2017

Fed Partisan Conflict Index

Obama

Trump

25

6

What is influencing rates?

Updated as of March 2017

Slo

wer

Gro

wth

Lo

w R

ate

s

Strong US Dollar

Geopolitics - Nationalism, Populism, Rogue States (North Korea, Syria)

Potential for Trade Wars

Accommodative Central Banks (ECB, BOJ) –0% 10yr JGB

Pensions De-Risking

Cyclical Expectations (Longest recovery in decades)

Shifting Demographics, Reduced Productivity

US Growth Expectations

US Inflation Expectations

Hig

her

Rate

s

Str

on

g U

SD

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7

Domestic Economy looking healthy ~2% GDP

As of 4.30.17

Source: Bloomberg

• Jobs growth continue to be strong

• Consumer confidence is high

• Equity markets are at all time highs

• New and existing home sales continue to

improve

-100

-50

0

50

100

150

200

250

300

350

400

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017

Payro

lls C

han

ge (

000's

)

Nonfarm Payrolls Change MoM

0

20

40

60

80

100

120

140

Apr 2012 Apr 2013 Apr 2014 Apr 2015 Apr 2016 Apr 2017

Consumer Confidence

200

700

1200

1700

2200

2700

Apr 2012 Apr 2013 Apr 2014 Apr 2015 Apr 2016 Apr 2017

S&P 500 Index

27

8

U.S. Treasury Rates

As of 4.30.17

Source: Bloomberg

• Rates spiked following the

election

• Have leveled off and gone

sideways since December

• The short end of the

curve has become

unanchored

• Bear flattener as Fed

gets aggressive?

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

1m 6m 12m 2yr 3yr 5yr 7yr 10yr 30yr

Yie

ld

04/30/17 12/31/16 03/31/16

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Yie

ld

2-Yr Treasury 5-Yr Treasury 10-Year Treasury

28

9

Expected Path of Fed Funds

As of 4.30.17 Source: Bloomberg, The Federal Reserve, RBC GAM-US. Past performance is not indicative of future results.

Fed Dots: Each quarter, FOMC participants are asked to assess appropriate monetary policy. Each “blue dot” indicates the average value (rounded to the nearest 1/8 percentage point) for all FOMC

participants judgment of the midpoint of the appropriate target range for the federal funds rate at the end of the specified calendar year or over the longer run. Weighted average of FOMC participant

responses at the previous FOMC meeting (http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm).

RBC GAM-US Expectations / Model Rates are based on projected economic, geo-political and market conditions. Views of RBC Global Asset Management are as of the date of publication and are

subject to change without notice. The information is not a guarantee of future rates and actual results may differ materially from those described as a result of various factors.

RBC GAM-US Expectations

Fed Fund Futures

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

JUN 17 SEP 17 DEC 17 MAR 18 JUN 18 SEP 18 DEC 18 MAR 19 JUN 19 SEP 19 DEC 19 MAR 20

Fed Dots Dec 2015

Fed Dots Sep 2016

Fed Dots Dec 2016

Fed expectations of rate hikes have dropped sharply over the last 2 years, but rebounded in

29

10

Economic Outlook

Previous outlook may be revised higher… but is contingent upon stimulus initiatives preceding geo-political or trade war event

Outlook

• Domestic Growth: 2.0% - 2.25% Real U.S. GDP in 2017

• Economy: Continues to be healthy

• Inflation: Expectations on the rise

• Monetary Policy: Fed is looking to tighten but headwinds will keep them slow

• Market Volatility: High for near future

Risks to Outlook

• Deterioration of geo-political issues - Global populism rising

• Monetary policy error by the Fed (should they move too fast)

• Growth accelerates with Trump, Fed is behind and rates spike further

Updated as of March 2017

30

11

Portfolio Review

31

12

• General Objectives

• Safety of Principal

• Liquidity

• Return

• Suitable and Authorized Investments

• Diversification

• Maximum Maturity

• Credit Quality

• Quarterly Reporting

Compliance with

Investment Principles

Investment Policy Compliance

32

13

YTD 2017

1Q2017

4Q2016

3Q 2016

2Q2016

1Year

3 Years

Since Inception (7.1.12)

Total Portfolio(Gross of Fees)

0.32 0.32 -0.46 0.04 0.48 0.39 0.91 0.80

Total Portfolio(Net of Fees)

0.31 0.31 -0.48 0.03 0.47 0.32 0.84 0.73

BofAML 1-3 Year Tsy & Agy Index 0.26 0.26 -0.43 -0.10 0.52 0.26 0.73 0.64

Portfolio PerformancePima County Community College – 1-3 Year Portfolio

As of 3.31.17

Source: RBC GAM, BofAML

All returns for periods greater than one year are shown on an annualized basis. Past performance is not indicative of future results.

33

14

YTD 2017

1Q2017

4Q2016

3Q 2016

2Q2016

1Year

3 Years

Since Inception (5.1.12)

Total Portfolio(Gross of Fees)

0.13 0.13 0.10 0.12 0.18 0.53 0.34 0.28

Total Portfolio(Net of Fees)

0.11 0.11 0.08 0.11 0.17 0.46 0.27 0.21

BofAML 91 Day T-Bill Index 0.10 0.10 0.08 0.10 0.07 0.36 0.17 0.14

Portfolio PerformancePima County Community College – Cash Management Portfolio

As of 3.31.17

Source: RBC GAM, BofAML

All returns for periods greater than one year are shown on an annualized basis. Past performance is not indicative of future results.

34

15

92.2

0.0

7.8

16.1

49.7

34.2

0% 20% 40% 60% 80% 100%

Treasury

Securitized

Gov't Related

Pima County Community College - 1-3 Yr BofAML 1-3 Yr Tsy & Agy

CharacteristicsPima County Community

College – 1-3 YrBofAML 1-3 Yr Tsy & Agy

Effective Duration 1.86 years 1.89 years

Market Yield 1.58% 1.28%

Average Quality AAA AAA

Portfolio CharacteristicsPima County Community College – 1-3 Year Portfolio

Sector Distribution

As of 3.31.17Source: RBC GAM, BofAML, Sector and Duration distribution charts is excluding cash & equivalents

Duration Distribution

3.1

96.9

0.0

20.9

67.6

11.5

0% 20% 40% 60% 80% 100%

Less Than1 Year

1-3 Years

3-5 Years

Pima County Community College - 1-3 Yr BofAML 1-3 Yr Tsy & Agy

35

16

100.0

0.0

68.2

31.8

0% 20% 40% 60% 80% 100%

Treasury

Gov'tRelated

Pima County Community College - Cash Management

BofAML 91 Day T-Bill

CharacteristicsPima County Community

College – Cash ManagementBofAML 1-3 Yr Tsy & Agy

Effective Duration 0.50 years 0.24 years

Market Yield 0.94% 0.75%

Average Quality AAA AAA

Portfolio CharacteristicsPima County Community College – Cash Management Portfolio

Sector Distribution

As of 3.31.17Source: RBC GAM, BofAML, Sector and Duration distribution charts is excluding cash & equivalents

Duration Distribution

100.0

100.0

0% 20% 40% 60% 80% 100%

Less Than1 Year

Pima County Community College - Cash Management

BofAML 91 Day T-Bill

36

17

Holdings as of March 31, 2017Pima County Community College

37

18


38

19


39

20


40

21


41

22


42

23


43

24


44

25

Appendix

45

26

The Fixed Income Team

Focus and Integration

Investment team

empowered to excel

through research-

focused, sector-team

structure

Institutional Portfolio

Managers provide

continuous review and

client communication

Lead Portfolio

Managers

and Sector Teams

average 20 years of

experience

Lead Portfolio Managers

Institutional Portfolio Managers / Client Service

Scott Kirby

Senior Portfolio Manager

Eric Hathaway, CFAPortfolio Manager

Valinie DayaljeeJunior Analyst

Karen LyJunior Analyst

Joshua Howard, CFADirector of Investment Risk

Sector Teams

Brian Svendahl, CFACo-Head, U.S. Fixed Income

Brandon Swensen, CFACo-Head, U.S. Fixed Income

Municipal

Research

Raye Kanzenbach, CFA

Senior Portfolio Manager

Laurie MountAnalyst

Jake Rath, CFA

Portfolio Manager

James Weinand, CFAPortfolio Manager

Alexey Baskakov, CFASenior Analyst

John Northup, CFAAnalyst

Matt Mueller, CFA Analyst

Credit ResearchGovernment & Mortgage

Research

Mike Lee, CFAChief Executive Officer, President & Chief Investment Officer

Risk Management

Edith Lotterman, CFASenior Performance Analyst

Tiffany Knutson

Senior Performance Analyst

Steven AzarSenior Investment Risk Analyst

Joshua SchettleSenior Investment Risk Analyst

Patrick SonmeneInvestment Risk Analyst

Sydney SeydelInvestment Risk Analyst

John UtterHead of InstitutionalClient Service – U.S.

Chris BoppreAssociate Portfolio Manager

Scott CabalkaInstitutional Portfolio Manager

Joe TaffeOperational Risk Analyst

As of 5.1.17

Investment Policy Compliance

Stacy Johnson, CFAInstitutional Portfolio Manager

Bridget TompkinsClient Service Manager

Eric SmithManager, Operations

Garrett McConnachSenior Investment Policy Analyst

Tracy HubertSenior Reference Data Analyst

Jennifer Sutton

Senior Investment Policy Analyst

Amy CarlsonAssociate Portfolio Manager

Randy Harrison, CFAInstitutional Portfolio Manager

46

27

Professionals

John A. UtterManaging Director, Head of Institutional Client Service – U.S.

John Utter is responsible for developing and implementing industry leading client service practices and leads the firm's client service efforts,

including the development of asset allocation solutions for ultra high net worth and off-shore clients. He joined RBC GAM-US in 2010 from

RiverSource Investments, where he was a divisional sales director leading a sales team that helped clients with investment solutions ranging from

traditional equities and fixed income to portable alpha and absolute return strategies. Before that, John spent 15 years in institutional sales assisting

banks, insurance companies and hedge funds in the U.S. and Europe with their fixed income investments. He began his career in the investment

industry in 1988. John earned a BA from St. Lawrence University, holds FINRA Series 7, 24 and 63 licenses and is registered as an Associated

Person with the National Futures Association.

Scott CabalkaVice President, Institutional Portfolio Manager

Scott Cabalka is responsible for client service coverage of the RBC Money Market Funds, local government investment pools, and other short fixed

income solutions. Scott provides guidance on investment policy and implementation for all of our short mandates. In addition, he leads our

communication with clients invested in our short fixed income strategies and ensures that they receive the most appropriate solutions and service.

Before joining RBC GAM-US in 1993, Scott was an account executive at Merrill Lynch, where he focused on short strategies for institutional

investors. He has specialized in short fixed income since he began working in the investment industry in 1980. Scott earned a BS and an MBA in

Finance from the University of Minnesota Carlson School of Management and holds a FINRA Series 7 license.

47

28

Glossary of Investment Terms

Total Return The sum of all investment income plus the changes in the capital

valuation in the portfolio.

Market Value The current face amount of the security multiplied by the market price.

Market Yield The portfolio's overall yield, as measured by the market valuations of

the portfolio holdings.

Book Yield The yield to maturity of a security, as calculated at the time of purchase.

Duration The measure of interest rate sensitivity which estimates the price

change of a security (or a portfolio of securities) resulting from a

change in interest rates.

Duration may also be considered to be a measure of the "average

maturity" of a stream of payments associated with a bond. It reflects a

weighted average of the lengths of time until the remaining payments

are made from a bond (or portfolio).

Convexity A measure of interest rate sensitivity, used along with duration, which

estimates the incremental price change resulting from the change in

interest rates.

OAS Option-Adjusted Spread (OAS) is a measure of a security's extra return

over the return of a comparable risk-free security.

Spread Duration The measure of the sensitivity of a security's price to changes in

spreads, relative to U.S. Treasuries (a risk-free security).

Wider (or more narrow) spreads will cause the price of the securities to

fall (rise).

Amortized Cost The price paid for the security, plus or minus adjustments for any

purchase discounts of premiums associated with the purchase.

The gain/loss that would be recognized from selling an asset, as

compared to the reported amortized cost. Unrealized Gain,

Unrealized Loss

48

29

IPS

49

30

IPS

50

31

Arizona Statutes

51

32

Arizona Statutes

52

33

Disclosures

This document (the “Presentation”) is being provided by RBC Global Asset Management to institutional investors. This Presentation is subject to change without

notice and is qualified by these disclosures and the disclosures and definitions contained, may not be reproduced in whole or part, and may not be delivered to any

other person without the consent of RBC Global Asset Management. This Presentation is not a solicitation of any offer to buy or sell any security or other financial

instrument or to participate in any investment strategy and should not be construed as tax or legal advice.

RBC Global Asset Management is the name used in the United States for certain investment advisory subsidiaries of the Royal Bank of Canada. RBC Global Asset

Management (U.S.) Inc. (“RBC Global Asset Management – US” or “RBC GAM-US”) is a federally registered investment adviser founded in 1983.

Past performance is not indicative of future results. There can be no guarantee that any investment strategy discussed in this Presentation will achieve its investment

objectives. As with all investment strategies, there is a risk of loss of all or a portion of the amount invested. With respect to goals, targets, objectives, expectations

and processes discussed in the presentation, there is no guarantee that such goals, targets, objectives or expectations will be achieved or that the processes will

succeed. Any risk management processes discussed refer to efforts to monitor and manage risk but should not be confused with and does not imply no or low risk.

The use of diversification within an investment portfolio does not assure a profit or guarantee against loss in a declining market. No chart, graph, or formula can by

itself determine which securities an investor should buy or sell or which strategies should be pursued.

This Presentation contains the opinions of RBC Global Asset Management as of the date of publication and is not intended to be, and should not be interpreted as, a

recommendation of any particular security, strategy or investment product. Not all products, services or investments described herein are available in all jurisdictions

and some are available on a limited basis only, due to local regulatory and legal requirements. Unless otherwise indicated, all information and opinions herein are as

of March 31, 2017 and are subject to change without notice.

These materials may contain information collected from independent third party sources. For purposes of providing these materials to you, neither RBC nor any of its

affiliates, subsidiaries, directors, officers, or employees, has independently verified the accuracy or completeness of the third-party information contained herein.

Although RBC GAM-US is registered as an investment adviser with the SEC, such registration in no way implies that the SEC has reviewed or approved the

investment portfolio and does not imply that RBC GAM-US has achieved a certain level of skill or training.

RBC Global Asset Management (“RBC GAM”) is the asset management division of Royal Bank of Canada (“RBC”) which includes RBC GAM-US, RBC Global Asset

Management Inc., RBC Global Asset Management (UK) Limited, BlueBay Asset Management LLP, BlueBay Asset Management USA LLC, and the asset

management division of RBC Investment Management (Asia) Limited, which are separate, but affiliated corporate entities. ®/™ Trademark(s) of Royal Bank of

Canada. Used under license. © 2016 RBC Global Asset Management (U.S.) Inc.

53

PimaCountyCommunityCollegeDistrict

Governing Board 4905C East Broadway/Tucson, Arizona 85709-1010

INFORMATION ITEM

Meeting Date: 06/14/17 Item Number:

Item Title Contact Person Finance and Audit Committee 2016-2017 Report Dr. David Bea

Executive Vice Chancellor for Finance and Administration

(206-4519)

Information: As part of the College’s continued improvements in financial accountability and transparency, the Governing Board approved the creation of its Finance and Audit Committee (“Committee”) in November 2013. In compliance with the Committee’s Charter, the Finance and Audit Committee presents the following update to the Board. 2016-2017 Activities The Committee held seven meetings in fiscal year 2017, covering a range of topics and activities. A summary is provided below:

• Reviewed the 2016-17 Draft Audit Plan and Risk Assessment with the Internal Auditor • Discussed the College’s long-range financial projections • Participated in HLC activities related to re-accreditation efforts • Updated on IT Security and Privacy • Reviewed and discussed the College Compliance Program with General Counsel • Reviewed and discussed the Contract Process • Reviewed and discussed the College’s Investment Guidelines and created an Investment

Subcommittee • Reviewed and discussed the Finance and Audit Committee Charter • Reviewed the College’s FY16 Comprehensive Annual Financial Report and met with

auditors • Reviewed the College’s cash reserves policy and recommended BP 4.07 to move forward • Reviewed and discussed Budget Scenario Planning, 2017-18 Budget Outlook, and Tuition

and Service Fees and made recommendations at the March and May Governing Board meetings

Potential Topics for 2017-2018 As the Committee enters its fourth year, future topics may include:

• Enrollment Update • KPIs/Strategic Plan Update • Financial Aid Update • Health Plan Self-Insurance • Update on Local Employers

54

• Competency-Based Education • College Investments

Approvals Contact Person________________________________

David Bea, Ph.D. Chancellor____________________________________

Lee D. Lambert, J.D.

55

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