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MESSAGES FROM THE PRESIDENT AND VICE PRESIDENT FOR BUSINESS AND FINANCE

Our world has changed in ways that few of us could have predicted just one year ago. Yet, in spite of these uncertain times, Oakton continues to thrive. The pages of this President’s Report to theCommunity document significant progress in realizing the goals and objectives set forth in ChangeMatters, the strategic plan for 2008 -2012.

Through the tireless work of faculty, staff, administrators, and students, Oakton moved forward with a number of initiatives that show a renewed emphasis on student success—from launching theReboot program for recently unemployed members of our community to opening an EnrollmentCenter at the Ray Hartstein Campus in Skokie. The College entered a new partnership with theUniversity of Illinois that enables students to enroll at Oakton for one or two years, and then transfer

to the Urbana-Champaign campus. And, following a two-year collaboration between Information Technology and CollegeAdvancement, Oakton unveiled a brand new Web site that truly captures our dynamic and inspired learning environment.

Serving students well is the core of our mission and the goal of the efforts documented in this annual report. This is a time tobe glad of heart and justifiably proud that community colleges finally are being recognized for the importance of the missionthat is ours and the difference that we can make for the better in our country and in our world. In the words of Gordon Gee,president of The Ohio State University, “Truly the drivers of our future will be this nation’s community colleges.”

Margaret B. Lee, President

Oakton’s Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2009, provides a snapshot of Oakton’s financial performance and major initiatives as well as an overview of trends inthe local economy. Above all, the report represents the College’s commitment to inform members ofthe community about the College’s finances.

The financial information contained in this report derives from the 2009 Comprehensive AnnualFinancial Report (CAFR), prepared in conformity with Generally Accepted Accounting Principles(GAAP). This report does not replace the CAFR, but includes important details relevant to theCollege’s fiscal condition. Audited by Sikich, the CAFR received an unqualified opinion.

As you review our Financial Statement beginning on page 16, I invite you to share any questions, concerns, or recommendations. For those seeking a deeper understanding of the College’s finances, a copy of the CAFR and additional financial information are available at www.oakton.edu/resource/fin.

Carl F. Costanza, Vice President for Business and Finance

Community colleges are essential to our nation’s higher education mission and uniquelyable to address the needs of our communities.

— Jill Biden

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G O A L

ACADEMIC EXCELLENCE

O B J E C T I V E

We will uphold the preeminence of academic excellence as the engine that drives decision-making at Oakton.

P R O G R E S S

Assessment Priorities The Oakton Program for Assessmentand Learning (OPAL) provides leadership and guidance for assessment at Oakton. With input from faculty andadministrators across the institution, the group continues tofocus on general education, career and technical education,and transfer courses, and has developed a vigorous initiativeto ensure that reviews take place at the course, program, andinstitutional levels. In April 2009, Oakton’s CurriculumCommittee, Council of Chairs and Coordinators, andAcademic Council approved learning objectives establishedby OPAL’s General Education team in four areas—criticalthinking, communication, literacy, and responsibility.

Engaging Students Nearly 1,000 Oakton students partici-pated in the Community College Survey of StudentEngagement (CCSSE), which focuses on the extent to whichstudents engage in activities that research shows to highlycorrelate with student learning and retention. It was the thirdtime this decade that Oakton has taken part in CCSSE,which registered more than 650 com-munity college participants in 2009.

Professional Recognition Constance Churchill, Ph.D., profes-sor of chemistry, is the inauguralrecipient of the “Award of Distinction”from the Oakton chapter of the American Association of Women inCommunity Colleges. The honor is

bestowed ona faculty orstaff memberwho hasmade signifi-cant contributions to the advance-ment of women, students, and the community. This national orga-nization is dedicated to changingwomen’s lives through leadership and education.

Jay Cohen, accounting chair, wascited as an outstanding faculty mem-ber by both the Illinois Community

College Trustee Association and Illinois Community College

Faculty Association. These awards are presented to those whoinspire enthusiasm in their subject area; demonstrate theability to take a personal interest in students; and serve theirinstitutions above and beyond classroom responsibilities.Cohen joined Oakton as an associate professor in 2002 andwas promoted to professor and department chair in 2005.

He received similar recognition fromthe Illinois CPA Society in 2008.

Pamela Hegg, professor of computerinformation systems, earned the 2009Outstanding e-Learning FacultyAward from the InstructionalTechnology Council. For more thanthree decades the council has providedleadership and resources to enhancedistance learning through the effectiveuse of technology. Award judges identified Hegg as a “pioneer who hasgenerously shared knowledge andenthusiasm with colleagues.”

New Degrees and Certificates Oakton reinforced its position as a leader in RFID training and education with the addition of the Associate in Applied Science Degree.New certificate programs include CNC Operations andProgramming Preparation; General Design; Global BusinessTechnical; Green Marketing Preparation; HorticulturalTherapy; Microsoft Office Specialist; Microsoft ProjectManagement Preparation; Transportation, Warehousing andLogistics; Windows Certified Enterprise Administrator; andWindows Desktop Support Technician.

New Faculty Among Oakton’s accomplished and dedicatednew faculty are: Anita Cotton, associate professor ofaccounting, M.B.A., University of Chicago, M.A.Ed.,Concordia University, B.S., Illinois State University; DonnaDickson, assistant professor of basic nurse assistant training,B.S.N., Bradley University; Christine Feighery, associateprofessor of nursing, M.S.N., Northern Illinois University,B.S.N., Loyola University Chicago; Nicole Perry, associateprofessor of biology, Ph.D., Northwestern University, B.S.,University of Wisconsin-Madison; and Winifred Sitt, associate professor of nursing, M.S.N., Rush University,B.S.N., Loyola University Chicago.

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G O A L

INNOVATIVE LEARNING FOR LOCAL AND GLOBAL CITIZENSHIP

O B J E C T I V E

We will evaluate and change Oakton’s academic programs and learning opportunities to foster local and global citizenship and to meet clearly identified student and community needs.

P R O G R E S S

Career ‘Reboot’ With unemployment hovering around 10percent in Illinois, Oakton partnered with the WorkforceBoard of Northern Cook County to help those who foundthemselves suddenly out of work. Eligible individuals seekingjob training education received assistance in applying for federal stimulus funds that may be used to pay for classes in more than 60 College programs. Among the two-yeardegrees and certificates eligible for funding by the Workforce

Investment Act andAmerican Recovery andReinvestment Act areRadio FrequencyIdentificationTechnology, Electronicsand ComputerTechnology, Computer-Aided Design, GraphicDesign, andManufacturingTechnology. The programexpands an earlier

initiative that provided complete tuition relief for more than100 unemployed students in five select programs during thespring semester.

Future Employment Needs Representatives from Oakton,Harper College, and the Workforce Board of Northern CookCounty considered the future employment needs of the com-munity at a May Stimulus Summit. Based on ideas generatedduring the meeting, the College and Workforce Board hopeto develop training programs and educational opportunitiesthat will best meet local needs and help business ownersprosper in the changing economy.

Peace in the Classroom Inspired by the work of MahatmaGandhi and Martin Luther King Jr., the Peace and SocialJustice Studies Program at Oakton promotes alternatives to violence and encourages social consciousness among students. The College offered 10 cross-listed courses in fall2009—the program’s first semester—with plans to add ethicscourses as curriculum options in the future.

In summer 2008, a Fulbright-Hays Group Projects Abroadgrant allowed Madhuri Deshmukh, program coordinator,and Katherine Schuster, coordinator of the Global StudiesProgram, to travel to India to study the contemporary relevance of Gandhi. Upon their return, Oakton hosted a two-day conference dedicated to the legacies of Gandhi and King. With enthusiastic support from the Board of Trustees, faculty, and administration, the Peace and Social Justice Studies Programhelps students develop a sense of aware-ness about themselves, their actions, and how those actions impact society and the world.

Gender Inequality No Mystery Author Sara Paretsky revolutionized the world of mystery fiction with her series of books starring private detective V. I. Warshawski, a strongfemale character who uses her wits as well as her fists.Society, however, “still has a distance to travel” regardingequal pay and domestic violence, Paretsky told an audienceattending Chicago Feminisms: Past, Present, and Future. Theconference, sponsored by the Oakton Women’s and GenderStudies Program, also featured numerous workshops.

Artistic Youth Elementary students demonstrated their creativity in two events sponsored by Studio 3, Oakton’senrichment program to inspire youth in the visual, written,and performing arts. More than 300 art aficionados attendedthe opening night reception for an exhibition showcasing the work of 130 students from Des Plaines, Glenview, Niles,

Northbrook,Park Ridge, andSkokie. At theWinter PoetryEvent, severaldozen middleschool studentsrecited originalpoems that alsowere bound intoa keepsake book.

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Jiang Dynasty For most audiences, viewing the complex inkbrush paintings of Shanghai-born artist Qigu Jiang “is like

reading a poem in translation,” accordingto James Elkins, Jiang’s colleague at theSchool of the Art Institute of Chicago.Jiang generously donated one of hisworks, After Michelangelo #4, to Oakton’spermanent collection at the end of hisKoehnline Museum of Art exhibition,which bridged the gap between threecenturies of Chinese tradition and post-Renaissance Western figurative painting.

Turning Up Volumes Oakton joined with the Des PlainesPublic Library in July and August to present the travelingdisplay, John Adams Unbound, organized by the BostonPublic Library and the American Library Association.Oakton was one of only 20 institutions chosen to host thefree exhibition, which was augmented by lectures, a screen-ing of the eponymous HBO miniseries, and a performanceby historical actress Leslie Goddard, as Abigail Adams.The National Endowment for the Humanities providedfunding for the display.

Chicago Writers Series The Chicago Writers Series presentsauthors and works that reflect a variety of personal experiencesfrom around the world. Nami Mun, a Korean-Americanauthor whose writing mirrors her unorthodox life, kicked offthe 2009 season, followed by youth participants of theLouder Than A Bomb poetry festival; hip hop artist IdrisGoodwin; poet Tania Runyan (Delicious Air); and JelenaBankovic, professor of English, whose “epistolary novel,”Deus Aderit, seeks meaning—and miracles—in everyday life.The Chicago Writers Series is made possible by generousgrants from the Oakton Educational Foundation andStudent Government Association.

All the World’s a Stage Hoping to see their work performedon stage, more than a dozen Oakton students submittedoriginal plays for the inaugural Play On competition and festival. Initiated by Kate Tillotson, senior EducationalFoundation assistant, Play On encourages aspiring play-wrights to develop one-act plays for consideration. Six playsdebuted in the Studio One theater, with each one directed by a different Oakton student. Because of its success, theprogram will be open to all Illinois community college students in 2010.

G O A L

WISE STUDENT SERVICES

O B J E C T I V E

We will involve all employee groups in developing, enhancing, and delivering services that Welcome, Inform, Support, and Engage our students.

P R O G R E S S

E-Z Enrollment The opening of a 10,000-square footEnrollment Center at the Skokie campus enhances, stream-lines, and individualizes the enrollment process at Oakton.The center provides a “one stop” location for offices mostutilized by students—Registrar Services, Admission,Financial Aid, and Advising and Counseling. The conceptwill soon be adopted at the Des Plaines campus.

Pathway to the U of I A new partnership with theUniversity of Illinois enables students to enroll at Oakton for one or two years, and then transfer to the Urbana-Champaign campus. The U of I—Oakton Pathway to the Bachelor’s Degree maximizes efficiency and affordabilityas students can start their college career at Oakton and complete their baccalaureate at the U of I. Oakton is one of only a few community colleges to participate in this initiative.

Intelligent Design One “intelligent” feature of Oakton’s redesigned Web site provides students with 24/7 access

to quick, accurate, and thorough information about theCollege. Launched in October, IntelliResponse enables any-one to submit an Oakton-related question via the Internet,and receive an appropriate response within seconds.

Phone First Oakton’s Call Center, a vital resource duringpeak registration times, handled more than 8,000 calls duringa two-week period in fall 2009, dramatically reducing phonetraffic in many busy offices. The year-old initiative enablesthree to five agents to provide answers to general questionsregarding the admission process. The service also frees up key staff members for in-person appointments.

Pitching In Providing community service is second natureto Oakton athletes, some of whom provided assistance at theChicago Breast Cancer 3-Day Walk in August. During thefirst leg of the 60-mile trek, the College hosted hundreds ofweary walkers for an overnight stay. Players from the men’sand women’s soccer team braved inclement conditions topitch tents in the parking lot and help blistered walkers settlein for the evening.

Virtual Reality As colleges and universities continue todefine and refine their use of “social media” tools, Oaktonengaged the online community through official pages on theincreasingly popular networking sites Facebook and Twitter.Social media sites allow the College to post event updatesand receive immediate feedback from students and the community, thereby establishing stronger relationships, trust,and loyalty among “fans” and “followers.” Instructors andstudents alike are embracing these new ways to connect.

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Peace Award Krystal Mapolo-Eichie received the 2009Wadhwa Foundation Gandhi-King Peace Award, which recognizes students who exemplify the beliefs and practicesof Mahatma Gandhi and Martin Luther King Jr. In an effortto support the practices of non-violence and tolerance, JodyWadhwa, a veteran Board of Trustees member, generouslyprovided the funding for this honor presented during the2009 commencement. The first honoree was TasmeeraChowdhury in 2008.

Inner Beauty All My Children actor J.R. Martinez promotedthe importance of recognizing “inner beauty” as part of aLeadership Series sponsored by Oakton’s Student GovernmentAssociation. In 2003, while serving in Iraq with the U.S. military, Martinez was caught in a land mine explosion andsuffered severe burns to more than 40 percent of his body.Having survived dozens of surgeries and skin grafts, Martineztoday is a popular motivational speaker who shows audienceshow to make the most of any situation.

Access, Equity, and Diversity Oakton continued its missionto overcome racism and other forms of bias by creating theOffice of Access, Equity, and Diversity. Gregory James, assistant vice president for student affairs, will oversee thecentralized office devoted to programs that celebrate diversepeople and ideas, inclusiveness, global perspectives, and astrong sense of community. A key role of the office will be to provide mediation services and resolve harassment and discrimination complaints.

G O A L

ANTI-BIAS COLLEGE

O B J E C T I V E

We will continue to transform Oakton’s practices, curricula, and ways of engaging with oneanother in order to overcome racism and other forms of bias.

P R O G R E S S

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G O A L

GREEN COLLEGE

O B J E C T I V E

We will respect, conserve, and improve the environment through our academic offerings, learning opportunities, and ecologically sound practices.

P R O G R E S S

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Greening the Curriculum In spring 2009, Oakton intro-duced two new courses: Green Marketing and Green EventPlanning. Green Marketing examines how businesses, nonprofits, and government agencies are striving to meet the growing demand for eco-friendly products and services.Green Event Planning demonstrates how to create andimplement special events with a green theme. Other new“green” offerings include a 12-credit hour HorticultureTherapy certificate in cooperation with the Chicago BotanicGarden, and Overview of Alternative Energy Resources,which teaches students how to power a household applianceusing a renewable energy source.Courses in Architectural Technology,Construction ManagementTechnology, Electronics andComputer Technology, andRefrigeration and Air Conditioningalso introduced green-themed topics.

Green Events TheCollege hosted numer-ous “enviro-events”throughout the year.U.S. Representative Jan Schakowsky andChicago Alderman Manuel Flores were keynotespeakers at “Green Collar Jobs and Building a High-Tech Green Economy.” The one-dayconference featured expert panelists on economic development, new technologies,research, and education.

The Ecology Club sponsored nature walks, a cleanup of theDes Plaines River, and a work day to remove invasive shrubsand small trees. For Earth Day, the club hosted more than70 people who participated in planting 150 trees and shrubsat the Des Plaines campus. Club members also mounted bat houses and planted seeds of native plants in the woodsadjacent to the Des Plaines campus.

UNICEF at Oakton hosted a “Re-Fashion Show” inNovember, to bring attention to the green aspects of buyingand wearing vintage and recycled clothing.

Transportation Alternatives The Department of PublicSafety purchased a 2010 Ford Escape Hybrid for officerswho patrol the College campuses. Named “MostEnvironmentally Friendly Truck of the Year” at the inaugural2009 Earth, Wind and Power Awards, the Escape Hybridhouses a four-cylinder engine, in combination with an electric engine powered by a battery pack. The fuel efficientvehicle earns a maximum 34 miles per gallon. The EscapeHybrid replaces a six-cylinder 2002 Chevy Blazer that averaged 14 mpg.

The College also continued its shuttle bus service betweenthe Des Plaines and Skokie campuses. Each gallon of gasoline saved through the use of the shuttle bus since it was introduced in 2007 saves 20 pounds of CO2 from beingreleased into the atmosphere.

Air and Water Improvements In October, Solar Service,Inc., of Niles, Illinois, installed a solar hot water system—including an array of 20 photovoltaic panels—at the DesPlaines campus. The project is expected to provide approxi-mately one-third of the campus’ hot water needs and reduceelectricity consumption by 85,000 kilowatt hours, for anestimated savings of $8,000 annually. The project was funded by grants totaling more than $200,000 from theIllinois Clean Energy Foundation and Illinois Department of Commerce and Economic Opportunity.

Earlier in the year, the College began upgrading its air-handling system. The improvements will reduce Oakton’s carbon footprint by approximately 263,000 pounds of CO2

annually and save an additional 250,000 kilowatt hours ofelectricity.

Lighting Solutions The College continues to replace incandescent light bulbs with compact fluorescent bulbs.CFLs use 75 percent less energy and have a longer life spanthan incandescent bulbs. The facilities team also modifiedlighting at the Des Plaines campus gym to be more effectiveand energy efficient. Increased use of motion detectors and digital timers throughout the campus reduces powerconsumption during inactive periods.

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Clean and Green The College adopted new, environmentally-friendly procedures and practices regarding campus aestheticsand operations. Gone are paints containing volatile organiccompounds that can emit toxic vapors and gases. Outside,campus grounds are maintained with organic fertilizers whenever possible. In addition, “green-certified” paper towelsand toilet paper are now the standard at both campuses, as are non-toxic cleaning products.

Recycling bins are now in all classrooms and labs. Every tonof recovered paper saves 3.3 cubic yards of landfill space.

Techno Trash The College collected more than 750 poundsof “techno trash” for recycling and disposal during a springcampaign sponsored by the Employee Development andCommunity Outreach Subcommittee. Techno trash includesprinter cartridges, media discs, computer supplies, and otherobsolete electronics and accessories.

Float Like a Butterfly Located on the west side of the Des Plaines campus, theButterfly Garden opened its gates to reveal avariety of blooming botanicals including daisyfleabane, climbing rose, monarda, prairie cinquefoil, andpalm-leaved coreopsis. The Cook County Forest Preserve isconsidering a plan to offer native plant identification classesat the garden.

Community Garden With the success and popularity of theButterfly Garden, a Community Garden was established atthe Skokie campus. Students, faculty, staff, and even theyoung denizens of the Early Childhood Education Centerplanted and nurtured more than a dozen 24-square-footplots. Although the pumpkin and corn crops did not farewell, there was a substantial first-year harvest of tomatoes,cucumbers, peppers, eggplant, and various herbs.

Fourth Campus After 18 months of com-prehensive research, design, and develop-ment, Oakton unveiled a brand new Website. When the College’s Web site firstappeared in the early years of the Internet,Oakton was the only community college inIllinois to be “wired.” Within a short periodof time, the site became an integral part ofthe learning and working environment—and a key marketing tool for Oakton. Tokeep pace with the dramatic technology revolution, the College recognized the needto undertake a complete overhaul of the site.As Oakton’s “fourth campus,” the improvedWeb site provides visitors with a rich andengaging interface that not only conveys thespirit of the College but also provides dynamic content fordiverse audiences. Check out the new look by visitingwww.oakton.edu.

On the Move Oakton expanded the presence of its computer-aided design program at the Art, Science, andTechnology Pavilion in Skokie by taking advantage ofincreased partnership opportunities with the College’s architecture and manufacturing classes. Students now areable to utilize the 3D printer (a device that turns computerdesigns into actual resin models) and CAD equipment at

the Pavilion. In addition, Industrial DesignEngineering (CAD 105) and Industrial Design Engineering Techniques (CAD 210)moved to Skokie in the fall, and will be joined in 2010 by the electronics (ELT) andengineering (ENG) programs. Animationcourses also were relocated to the Pavilion in spring, to more fully utilize the facility’s lab space.

Learning Outreach The Emeritus Programexpanded its efforts to reach “lifelong”learners throughout the College’s district.Programs at Covenant Village in Northbrook,Classic Residence by Hyatt in Glenview, and the Glencoe Park District joined existing

classes at the Chicago Botanic Garden to create uniqueopportunities for many in the northern suburbs.

Experts including John Mearsheimer, Ph.D., professor ofpolitical science and co-director of the Program inInternational Security Policy at the University of Chicago,accepted an invitation to participate in “Saturday Scholars,”a series designed for individuals who work during the week.Mearsheimer visited the Skokie campus in November to discuss “offensive realism” and other concepts from his best-selling book, The Tragedy of World Politics.

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G O A L

ONE COLLEGE, FOUR CAMPUSESDes Plaines, Skokie, In the Neighborhood, On the Web

O B J E C T I V E

We will make high quality learning available at multiple locations and via multiple delivery systems.

P R O G R E S S

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‘Nomadic Mural’ A distinctive tapestry by EvelynAnselevicius (1925-2003), one of the United States’ mostprominent textile artists, now hangs in the east lobby of the Des Plaines campus. Anselevicius studied with nativeweavers in Mexico as well as Joseph Albers, a former teacherat the Bauhaus, an influential German art and design school.Commissioned by Harris Bank in the 1970s, the 40-footwide tapestry featuring geometric earth tone shapes was on display for decades at the bank’s headquarters in down-town Chicago.

Candid Camera A $60,000 grant from the Urban AreaSecurity Initiative for Nonprofit Organizations funded the

purchase of interior and exterior security cameras for bothcampuses. These cameras reinforce Oakton’s commitment toprovide a safe working and learning environment.

Mediation Matters The Oakton Community College StaffAssociation earned kudos from the American Federation ofTeachers at a national conference in Baltimore. The StaffAssociation received the Paraprofessionals and School-RelatedPersonnel Union Builders Award, presented annually to chapters that effectively represent its members in contractnegotiations. In 2008, Oakton’s Classified Staff ratified a four-year contract without any reduction or elimination of previously won benefits.

G O A L

MODEL WORK ENVIRONMENT

O B J E C T I V E

We will develop a model work environment to attract and retain a diverse work force that is best able to serve Oakton students and the community.

P R O G R E S S

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G O A L

REINVENTED PHYSICAL SPACE AND INFRASTRUCTURE

O B J E C T I V E

We will reinvent and maintain Oakton’s physical space and infrastructure in ways that build an environment conducive to learning and creating community.

P R O G R E S S

Pardon Our Dust Construction of the 10,000-square-footEnrollment Center at the Skokie campus (see page 6) resultedin repurposing more than 4,000 square feet of office space.The Enrollment Center features 10 individual offices withworkstations and a conference room with six mobile tablesand seating to accommodate 20. Also included is a largeopen space with six staffed and four self-service kiosks.

Future Plans To facilitate the creation of a Master Plan—a working document designed to support Oakton’s strategic,enrollment, academic, and capital objectives—College officialsengaged the services of Legat Architects. The Chicago firm will study space utilization for classrooms, science labs, offices,athletic facilities, and other student gathering spaces; define a location for the Des Plaines campus Enrollment Center;improve campus appearance and “first impressions”; and develop an energy conservation plan.

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G O A L

FINANCIAL STEWARDSHIP

O B J E C T I V E

We will use our resources to advance our mission and goals while maintaining adequate reserves for the future.

P R O G R E S S

Scholarships In the past fiscal year, the College awardedapproximately $6 million in financial aid to 2,400 students,including Educational Foundation and institutional scholarships and Student Government Association grants.The Foundation secured two new endowments: Marilyn L.Fischer Prize in the Creative Arts and Sylvia Footlik STEMScholarship. Other new scholarships include the AnnetteDewett Nursing Scholarship, Oakton Chapter AmericanAssociation of Women in Community Colleges Scholarship,Oakton Gold Scholarship, and Francis and Anne SpechtMemorial Scholarship.

Grants Oakton continues to seek grants to supplement programming and student support services, and receivednearly $2.3 million in federal, state, private, corporate, andcompetitive funding during the last fiscal year.

External grant funding from federal, state, and private sourcescontinues to be an important component of Oakton’s strategic goals. The American Recovery and ReinvestmentAct has created many new programs in workforce trainingand development. In partnership with the Workforce Boardof Northern Cook County, Oakton is responding to the dis-trict’s needs for workforce training in light of increasedunemployment. One result has been to form a consortiumwith Harper College in Palatine to seek funding jointly and provide training for dislocated and incumbent workers.

Partnerships with other community colleges drive additional grant projects. The College teamed up with LaramieCommunity College in Wyoming to obtain funding throughthe National Science Foundation (NSF) for a wind energyplanning grant. In the transportation and logistics field,Oakton’s Radio Frequency Identification (RFID) program ispart of a nationwide effort to secure NSF funding to developenhanced curriculum that can be shared with other colleges.Oakton also is supporting efforts by the Metropolitan ChicagoHealthcare Council and the American Health InformationManagement Association to obtain stimulus funding for nursing and health information technology programs.

New and exciting this year is a $125,000, two-year grantfrom the Department of Education’s Title VI UndergraduateInternational Studies and Foreign Language program thatwill open up “Pathways to South Asia” for Oakton students.

Collaborating with the South Asia Center at the Universityof Wisconsin-Madison, faculty members will bring newcourses and modules to the College’s Global Studies programthat explores the history, culture, economics, religion, politics,and environment of India, Pakistan, and other South Asiannations. The grant allows Oakton to add Hindi and Urdu toits curriculum, bringing to 13 the number of modern lan-guages taught at the College. Students and faculty also willhave the opportunity to study in India. This grant followslast year’s Fulbright-Hays Group Projects Abroad award thatsent a cohort of 14 Illinois community college, university,and high school faculty members to study Gandhi’s legacyand non-violence education in India.

Oakton’s Center for Promoting Science, Technology,Engineering and Mathematics (STEM) received funding forthe remaining two years of its grant after a review by theNational Science Foundation. The Center offers strong academic support, mentoring, career, and social activities for students interested in pursuing careers in STEM areas.The NSF-funded APEX Scholarship program, which pro-vides need-based scholarships to full-time STEM students,disbursed more money than originally available to respond to student needs. This five-year grant has a total of $500,000in scholarships to award, and expects to provide nearly$150,000 in scholarships in the upcoming year, including$20,000 in “APEX Plus” awards to students who have trans-ferred to four-year baccalaureate programs. Oakton’s uniqueUndergraduate Research in Chemistry partnership with CityColleges of Chicago and Harper College, also fundedthrough the NSF, has branched into a study of invasive plantspecies, sending students to the Chicago Botanic Garden,Illinois State University, University of Illinois at Chicago,and Northwestern University for summer research projects.

The Federal Mediation and Conciliation Service awardedOakton a grant totaling almost $60,000 through its Labor-Management Cooperation Grant Program. The funds support efforts to improve labor-management relationshipsand organizational effectiveness. WOW! (Working onOakton’s Wellness) is designed to improve employee healthand welfare; reduce the College’s controllable health carecosts; and facilitate better labor-management communication.

Assets Current assets are those resources reasonably available within one year. Unlike other forms of assets, cash and equivalentssuch as checking account balances can be used immediately for current operational needs, such as meeting the payroll or payingvendors. Short-term investments represent the College’s holdings in allowable financial instruments due within one year, such asthe State Treasurer’s Pool. Receivables represent those monies due to the College but not yet available for use; examples includeproperty taxes not yet paid for the remainder of the current levy and half of the estimated levy for the coming year and accruedinterest. Other assets include prepaid expenses and bookstore inventory.

FINANCIAL REPORT

Oakton remains fiscally sound. A complete financial condition and history based on assets, liabilities, and net assets for all funds and account groups is detailed extensively in the College’s Comprehensive

Annual Financial Report for each of these years (www.oakton.edu/resource/fin).

Condensed Statement of Net Assets and History as of June 30

FY 05 FY 06 FY 07 FY 08 FY 09(000) (000) (000) (000) (000)

Current AssetsCash and Cash Equivalents $3,370 $1,653 $464 $308 $3,114Short-term Investments 37,905 46,054 58,573 53,169 66,348Property Tax Receivable, net 32,075 34,076 35,641 38,405 39,750Student Tuition and Fees, net 3,380 3,479 3,717 5,938Other Accounts Receivable 1,513 3,046 1,833 1,480 4,795Inventory 1,373 1,124 2,005 1,545 1,796

Noncurrent AssetsRestricted Cash and Cash Equivalents 2,897 2,461 2,291 1,898Long-term Investments 27,520 21,167 18,318 32,922 20,173Property Tax Receivable 16,345 17,109 17,998 18,964 19,500Student Loans 20 17 3 3 122Capital Assets 88,602 88,224 87,529 88,180 88,066Less Accumulated Depreciation (27,526) (25,916) (25,481) (27,158) (29,314)

TOTAL ASSETS 184,094 192,395 202,653 213,433 220,288

Current LiabilitiesAccounts Payable 819 748 520 1,449 2,069Accrued Payroll 1,939 1,167 1,522 838 861Other Accrued Liabilities 1,366 1,209 1,064 983 925Unearned Revenues 34,503 39,697 42,292 45,255 48,434

Noncurrent LiabilitiesAccrued Compensated Absences 903 956 1,096 1,191 1,315Other Accrued Liabilities 3,292 5,278 5,705 5,696 6,351Unearned Property Tax Revenues 16,345 17,109 17,998 18,964 19,110

TOTAL LIABILITIES 59,167 66,164 70,197 74,376 79,065

Net AssetsInvested in Capital Assets 61,076 62,309 62,049 61,022 58,752Restricted 24,676 22,138 21,746 22,456 22,671Unrestricted 39,175 41,784 48,662 55,579 59,800

TOTAL NET ASSETS $124,927 $126,231 $132,457 $139,057 $141,223

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Total Assets Net Assets

Growth of AssetsFiscal Years 2005-2009

FY 05 FY 06 FY 07 FY 08 FY 09

250

200

150

100

50

0

(000,000)

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Noncurrent assets are the College’s long-term financial and plant resources. Restricted cash is the College’s escrow contributionto the state-supported construction at the Skokie campus. Long-term investments represent the College’s holdings in allowablefinancial instruments due in more than one year, such as T-Bonds and GNMAs. Plant and equipment account for the College’sequity in land, buildings, real estate improvements (such as roads and security lighting), and capital equipment expenses suchas computer network servers and digital projectors. Property tax receivable includes the second half of the estimated levy for thecoming year. Student loans are the outstanding balances due for loan programs. Depreciation is the recovery of the costs ofplant and equipment over their expected useful lives.

Liabilities Current liabilities are short-term obligations. Accrued payroll, accounts payable, and other accrued liabilities represent amounts due to employees or vendors for services, supplies or equipment provided to the College. Unearned rev-enues include property taxes from the current levy and half the estimated future levy legally collectible but not income untilafter the end of the fiscal year.

Noncurrent liabilities represent long-term obligations, usually due over a number of years. These include: estimated amountsof accrued compensated absences; net other post-employment health care benefits (OPEB) liabilities that will not be paidwithin the next fiscal year; and property tax levies accrued that are restricted to fiscal years beyond the next fiscal year.

Net Assets Net assets are either the accumulated resources invested in plant andequipment or resources available with or without restriction; the latter generallyis available for payment of future expenses.

Property Taxes The local property owner has provided almost 45 percent of totalresources over the last five years. However, for a typical homeowner, Oakton’s2008 rate of 0.140 dollars per $100 assessed valuation represents only 2.23 percentof the tax bill, compared with a high school rate more than 10 times higher, or thecombined county rate more than five times higher.

Property taxes are a significant source of revenue for all Illinois community colleges. Based on the latest available state-wide comparative data (2007 levy),Oakton has the lowest property tax rate in the state. In that year, Oakton’s totalrate was 0.140; the average total rate for the 10 local community college peergroup was 0.260; the highest rate in the state was 0.805; and the average rate forall community colleges in the state was 0.414.

2008 Property Tax Rates for a typical homeowner in Oakton’s district

Taxing Body Rate* %Total

County 0.726 11.56%

City 1.031 16.55%

Township 0.112 1.78%

Grade School 2.685 42.76%

High School 1.577 25.12%

Oakton 0.140 2.23%Total Rate 6.279 100.00%

*In dollars per $100 of equalized assessed valuation

240,000

190,000

140,000

The success in maintaining total credit hour enrollment over the last 10years represents the College’s efforts to meet the educational requirementsof the community by providing quality instruction, superior facilities, andcourse offerings that accommodate student needs.

‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09

Credit Hour Enrollment HistoryFiscal Years 2000-2009

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Revenues by Source Local residential and business property owners continue as the primary source of revenues for the College, followed in order by student tuitionand fees, state grants and contracts, and auxiliary enterprises. However, the propertytax cap law will limit increases from this revenue stream in the future, and willrequire the College to actively seek other avenues of funding to support educationaland community services to students and District residents. The increase in operatingrevenue of $1.0 million is primarily attributed to the following: tuition fees increasedby $1.5 million as a result of a $2 per credit hour increase in the tuition fee and the increase in student enrollment. Auxiliary revenue decreased by $500,000 due to a decline in the noncredit hour contract course enrollment and reduced sales in the bookstore.

The increase in non-operating revenues of $2.2 million is primarily attributed to the following: state grant funding increase of $530,000 primarily from “on-behalf ” payments for employee pension obligations; federal and local grant funding increaseof $1.2 million primarily from Federal Pell Grants (student financial aid); propertyand replacement tax increase of $1.9 million due to an increase in the tax levy; andinvestment income decrease of $975,000 due to a decline in interest rates.

Revenues for the years ended June 30

FY 05 FY 06 FY 07 FY 08 FY 09(000) (000) (000) (000) (000)

OPERATING REVENUEStudent Tuition and Fees $11,342 $11,486 $12,897 $14,716 $16,161Chargeback Revenue 80 98 58 86 130Auxiliary Enterprises 10,040 9,425 9,419 8,206 7,669Other Sources 163 252 138 191 240Total Operating Revenues 21,625 21,261 22,512 23,199 24,200Total Operating Expenses 66,742 68,067 69,833 76,478 82,946Operating Loss (45,117) (46,806) (47,321) (53,279) (58,746)

NON-OPERATING REVENUEProperty Taxes 31,159 33,118 34,905 36,488 38,361Local Grants and Contracts 254 303 320 853 409State Grants and Contracts 12,513 9,282 10,158 13,150 13,680Federal Grants and Contracts 3,675 3,662 3,928 4,424 5,620Investment Income Earned 2,429 1,745 4,236 3,818 2,843Total Non-operating Revenues 50,030 48,110 53,547 58,733 60,913Increase in Net Assets $4,913 $1,304 $6,226 $5,454 $2,167

Expenses by Type of Service Instruction includes those activities that deal directlywith or aid in the teaching process. Instruction expenses include not only personnelcosts and supplies but also the personnel and materials required to plan, implement,and manage the instructional programs. Academic support comprises those programsthat directly support the instruction process, such as tutoring, library operations, andinstructional media services. Student services include registration and records, financialaid, counseling, and other activities that provide non-academic support to students.Operation and maintenance costs relate to those maintenance, housekeeping, publicsafety, and other costs necessary for the proper and safe operation of the physical plant of the College. General institutional support encompasses general regulation,

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Revenues by Source

1. Property Tax 45.0% 2. Local 0.5% 3. State 16.1% 4. Federal 6.6% 5. Investments 3.3% 6. Students 19.0% 7. Chargebacks 0.2% 8. Auxiliary Enterprises 9.0% 9. Other 0.3%

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direction, and administration, as well as those costs applicable to the College on aninstitution-wide basis, such as Commencement and accreditation activities. Auxiliaryenterprises are those activities that charge a fee for service, such as the bookstores, foodservices, the Early Childhood Education Centers, the Business Institute, and otherbusiness-type activities. Depreciation represents the financial acknowledgement of the costs of fixed assets prorated over their estimated useful service lives. The increasein operating expenses of $6.4 million is primarily attributed to the following: salary expense increase of $1.6 million due to normal annual salary increases andenrollment growth; employee benefit costs increase of $2.2 million, mainly attributedto a $1.3 million increase in the State’s “on behalf ” payment toward employees’ pension obligation followed by normal increase in benefit costs; financial aid increaseof $700,000 is due to an increase in the number of student financial aid awards; anddepreciation expense increase of $1 million as a result to changes in the estimateduseful life of depreciable assets.

Use of Resources by Type of Service for the years ended June 30

FY 05 FY 06 FY 07 FY 08 FY 09(000) (000) (000) (000) (000)

Instruction $28,677 $28,615 $30,616 $29,585 $33,201Academic Support 4,162 4,576 4,076 8,459 9,398Student Services 8,558 8,482 9,733 10,665 10,473Operations and Maintenance 5,020 5,460 5,649 6,732 7,276General Institutional Support 7,497 8,393 7,783 6,255 6,793Auxiliary Enterprises 9,816 9,430 9,213 11,601 11,569Depreciation 3,012 3,111 2,763 3,181 4,236Total Expenses $66,742 $68,067 $69,833 $76,478 $82,946

Use of Resources by Type of Cost for the years ended June 30

FY 05 FY 06 FY 07 FY 08 FY 09(000) (000) (000) (000) (000)

Personnel Costs $48,908 $48,262 $51,710 $56,053 $59,854Supplies and Services 12,249 13,137 11,796 12,466 13,636Utilities 1,406 1,543 1,662 1,797 1,412Other Expenses 4,179 5,125 4,665 6,162 8,044Total Expenses $66,742 $68,067 $69,833 $76,478 $82,946

Expenses by Type of Cost As with any service organization, personnel costs—salaries and benefits—make up the largest single cost category at 72.2 percent. Salaries alone represent 57.0 percent of total costs. Benefits, includinghealth, unemployment, and Medicare insurance costs, constitute 15.2 percent of total expenses.

Supplies and service expenses account for nearly 17 percent of operating expenses.They include services provided by outside agencies, as well as instructional andadministrative supplies. Other expenses include depreciation and miscellaneousexpenses. Depreciation accounts for most of this category.

Expenses by Type of Cost

1. Personnel 72.2% 2. Supplies and Services 16.4% 3. Utilities 1.7% 4. Other 9.7%

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Expenses by Type of Service

1. Instruction 40.0% 2. Academic Support 11.3% 3. Student Services 12.6% 4. Operations and

Maintenance of Plant 8.8% 5. General Institutional

Support 8.2% 6. Auxiliary Enterprises 14.0% 7. Depreciation 5.1%

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OUR VISION, MISSION AND VALUES

We are the Community’s College. ■ We are dedicated, first, to excellence in teaching and learning. ■ We challenge our students to experience the hard work and satisfaction of learning that

leads to intellectual growth and we support them academically, emotionally, and socially. ■ We encourage them to entertain and question ideas, think critically, solve problems, and

engage with other cultures, with one another, and with us. ■ We expect our students to assume responsibility for their own learning, to exercise

leadership, and to apply ethical principles in their academic, work, and personal lives. ■ We demand from ourselves and our students tolerance, fairness, responsibility,

compassion, and integrity.

We are a Community of Learners.■ We provide education and training for and throughout a lifetime. ■ We seek to improve and expand the services we offer in support of the people in the

communities we serve. ■ We promote a caring community of staff and faculty members, students, administrators,

and trustees who, in keeping with our values, work together to fulfill our mission.

We are a Changing Community.■ We recognize that change is inevitable and that education must be for the future. ■ We respond to change informed by our values and our responsibility to our students and

our communities. ■ We challenge our students to be capable global citizens, guided by knowledge

and ethical principles, who will shape the future.

Ratified by the Board of Trustees, October 20, 1998