Presentation Budget 2014-1 2014-155

Presentation Budget 2014-15

Community College District 535

1600 East Golf Road, Des Plaines, Illinois

esentation Budget Pr esentation Budget esentation Budget 51-4102 esentation Budget Pr esentation Budget esentation Budget 514102





Annual Budget for the

Fiscal Year Ended June 30, 2015

Board of Trustees Community College District No. 535

County of Cook 1600 East Golf Road, Des Plaines, Illinois 60016

www.oakton.edu

To the Board of Trustees:

With great pleasure, I present to you and to the residents of District 535 the Annual Budget for the fiscal year ending June 30, 2015. This document sets forth the College’s financial plan for operations during the coming year. Successfully serving students and their learning objectives form the core of Oakton’s mission. We are committed to equipping our students for work and continued learning in a world where change remains the only

constant. Our success is measured in the lives we change.

In developing the budget for fiscal year 2015, we have carefully considered revenues from the State of Illinois and evaluated our tax rates on district residents and businesses. For this academic and budget year, tuition was increased to $103.25 per credit hour, an increase of 8.30%. Oakton’s per credit hour tuition and property tax rates continue to be among the lowest in the State of Illinois. We have examined expenditures closely and have prepared this budget mindful of the need to equip, support, and enhance the programs and services that form the core of our mission. Oakton continues as a participant in “Achieving the Dream.” This national network comprised of over 200 colleges has a common goal to increase community college student persistence and degree attainment. Key components of the fiscal year 2015 budget directed towards student success include investments in new programs for Workforce Development, Nano Technology and Diesel Technology. Ongoing classroom enhancements include Lecture Capture Stations on both campuses allowing faculty to record high quality video, audio and podcast resources for student use outside the classroom. Additionally, expanded orientation, student to student mentoring, financial literacy training and many other student programs provide tools for students to achieve their certificate, degree or transfer objectives. This budget contains $16 million of expenditures for the Facilities Master Plan. In October 2014, a new integrated student services center will open at the Des Plaines campus. The opening of the new LEED-certified Science and Health Careers Center in January 2015 will feature sophisticated labs, flexible and light-filled classrooms, enhanced technology, and abundant lab preparation and storage space. As approved by the Board of Trustees in December 2010, these capital improvements will be funded through a combination of net asset balances and a College’s Series 2014 Limited Tax Bonds.

Oakton Community College is equally committed to responsible financial stewardship. We are proud of maintaining one of the lowest tax and tuition rates in the State of Illinois and even more proud of the quality education we provide to some 36,000 credit and non-credit students each year. We are grateful for the communities who support us, the communities we serve. Oakton is, indeed, the community’s college. Margaret B. Lee, Ph.D. President and Professor of English

iii

-10

40

90

140

190

FY 06

FY 07

FY 08

FY 09

FY 10

FY 11

FY 12

FY 13

FY 14

FY 15

Master Plan

Debt Repayment

Ongoing Operations

(000,000) Total Budgeted Expenditures (000,000)

Total Budgeted Expenditures

To: President Lee, Members of the Board of Trustees, and Citizens of Oakton Community College, District No. 535: SUMMARY Oakton Community College, Community College District 535’s Annual Budget for Fiscal Year 2014-2015 was presented to and approved by the Board of Trustees on June 24, 2014. Several significant factors guided the development of this year’s budget including:

• Multiple initiatives in the areas of graduation rates, assessment, and student success, • Execution of the 2012-2017 Connecting What Matters strategic plan, • Ongoing implementation of the current five-year Facilities Master Plan, • Ongoing uncertainty about funding to be received from the state of Illinois as well as

proposals to shift responsibility for current state-funded retirement contributions to local governments such as community colleges,

• External economic impacts including property tax uncertainties and limitations and low rates of return on investments, and

• Declining student enrollment trends throughout the country and at Oakton. All Funds The budget contains a total of $144,947,905 in revenues (a decrease of 1.8%) and $166,544,495 in expenditures (a decrease of 10.5%). Projected expenditures exceed revenues by $21,596,590, largely attributable to funding of Capital Improvement projects

arising from the Facilities Master Plan, budgeted costs of the Liability, Protection and Settlement Fund exceeding anticipated revenues and interfund transfers, and budgeted costs of ALLiance, Athletics, Bookstore and Early Childhood Education Lab School Auxiliary Fund

operating costs exceeding anticipated revenues. As discussed in detail in the Capital Expenditures section, execution of the College’s Facilities Master Plan project is underway. Master Plan projects totaling $16,895,000 have been included in the FY2015 budget. While carrying out the Master Plan components, the College has committed to maintaining its physical space and infrastructure. In FY2015, key capital projects include remaining construction of the Science and Health Careers (SHC) Building and Enrollment Center at Des Plaines Campus, building automation at both

Vice President for 1600 East Golf Road Business and Finance Des Plaines, Illinois 60016 847.635.1876 Fax 847.635.1764

iv

campuses, parking lot improvements, remodeling of vacated space and relocation of administrative offices displaced by the Enrollment Center, and a lavatory remodeling project. Budget monies have also been designated for projects in the aftermath of flooding-related seepage experienced in April 2013. A plan to upgrade the generator system and evaluate the underground drainage will enhance the ability to withstand future flooding events. These planned projects drive the budgeted deficits in each of the Education Fund, Operations and Maintenance Fund and the Operations and Maintenance (Restricted) Fund. A transfer of $4,850,000 from the Education Fund is budgeted to the Operations and Maintenance (Restricted) Fund in support of Master Plan and other projects. In conjunction with the FY2015 budgeting process, fewer property tax revenues were directed towards the Audit and the Liability, Protection and Settlement Funds. This chosen alignment of the FY2013 tax levy and corresponding revenues results in a deliberate reduction of the Audit and the Liability, Protection and Settlement Fund balances. Budgeted expenditures exceed revenues in the Operations and Maintenance (Restricted) Fund by $17,564,510. With a transfer of $4,850,000 from the Education Fund, a total budgeted deficit of $12,714,510, will result in the Operations and Maintenance (Restricted) Fund. Lastly, budgeted expenditures significantly exceed revenues for certain Auxiliary Fund programs contributing to the overall budgeted $5.1 million excess of expenditures over revenues. Support of athletic programs is a significant commitment on the part of the College. Historical data reports that combined mentoring/athletic programs lead to a greater degree of student success – particularly for economically disadvantaged students. Also within the Auxiliary Fund, the Alliance for Lifelong Learning (“ALLiance”) provides significant services to the community for a variety of continuing education programs including GED programs and adult courses for Literacy and English as a Second Language. Despite uncertainties about state funding in FY2015, ALLiance will endeavor to serve an equivalent number of students as prior years. The Bookstore and Early Childhood Education (ECE) Centers are budgeted to incur deficits as student textbook buying shifts to both the internet and rental programs and required staffing required in the ECE operations challenge financial results in periods of varying enrollment. Budgeted total personnel costs (salaries and benefits) for the institution, which represent 54% of budgeted expenditures, increased by 3.3% (compared with an 11% increase budgeted for FY 2014 and 5.4% decrease for FY 2013). The FY2015 overall increase is a combination of multiple factors including the addition of new Staff positions focused on Student Success and Maintenance for the new Science and Health Careers (SHC) Building. Salaries are also expected to rise in conjunction with contractual obligations. The budget reflects an overall increase in employee benefit costs of 6.6% from the FY2014 budget. Beginning January 1, 2014, as a result of the negotiation of the Adjunct Faculty union contract, approximately 70 Affiliated Adjunct Faculty members became eligible to participate in the College’s medical insurance programs in conjunction with the Affordable Care Act. FY2015 will experience an entire year of these additional healthcare costs. In addition, this increase is largely attributable to increases in contributions made by the State of Illinois on behalf of Oakton employees. Contributions made by the State of Illinois relating to the State University Retirement Systems (“SURS”) and College Insurance Plan (“CIP”) on behalf of the College’s employees are recognized, but never received, by the College as revenues and expenses in the Restricted Purposes Fund. In FY2014, such actual contributions were $14.9 million (as compared to $19.7 million budgeted) and in FY2013,

v

such contributions were $16.5 million (as compared to $12.0 million budgeted). The State does not provide information to participating organizations about the amount of contributions made on behalf of employees until approximately two months following the end of the applicable fiscal year. Contributions have varied significantly over the last several years and Oakton has been unable to closely estimate such amounts for budgeting purposes due to the lack of available information. For FY2015, Oakton budgeted $22.0 million – an increase of 11.7% as compared to the FY2014 budgeted amount. It is important to note that such amounts have no cash flow impact to the College. Budgeted expenditures for both contractual services and conferences and meetings have increased 8.4% and .8%, respectively. Budgeted expenditures for general materials and supplies have increased .6%. As compared to FY2014, greater contractual services have been budgeted in the Education, Operations and Maintenance, and Operations and Maintenance (Restricted) Funds. Contractual services increases in the Operations and Maintenance Fund is due to increased building and grounds maintenance services for FY2015. In the Education Fund, the increase in contractual services is primarily attributable to an increase in personnel recruiting costs due to the retirement of President Margaret Lee. Greater contractual service spending in the Operations and Maintenance (Restricted) Fund is budgeted for services related to the slab remediation of the SHC Building discussed below. In fiscal year 2015, student success initiatives and participation in “Achieving the Dream” will continue. Expenditures for these programs are expected to remain at amounts similar to FY2014, for conferences and meetings, travel, and employee training. “Achieving the Dream” is a national network comprised of over 200 colleges and state policy teams with a common goal to increase community college student persistence and degree attainment. Oakton was accepted into the Achieving the Dream program during FY2013. The principles that focus colleges on student success include: 1) a student-centered vision, 2) equity & excellence, and 3) evidence-based decision-making. These increased expenditures, including membership fees for Achieving the Dream, are budgeted in the Education Fund. Custodial equipment and supplies for the SHC Building represent the increased general materials and supplies budget in the Operations and Maintenance Fund. An increase of $83,800 for will provide for various tools and equipment for maintenance and repair of the SHC and other Des Plaines Campus buildings. Monies budgeted for the SHC Building also includes furniture for public spaces and administrative offices. The Auxiliary Enterprise Fund contains budgeted monies for significant new IT equipment including replacement of the 10 year old Bookstore point of sale system (budgeted in FY2014 but not purchased). Additionally, the College is continuing a Document Imaging project, initiated in FY2014, expanded mobile applications for students and lecture capture systems for Nursing and other curriculums. Utility charges are budgeted to decrease 2.4% after a budgeted increase of 7.4% in FY2014. In FY2014, the College applied for and was awarded energy-savings related grant for the SHC building. The expected savings from significant recent upgrades to more efficient Central Plant equipment and Building Automation Systems on both campuses will be partially offset by market rate fluctuations and issuance of delivery charges. Based on these investments, energy costs are not expected to increase as the new building is brought on line for the Spring semester of FY2015.

vi

Expenditures for capital outlay have decreased by 58.6%, reflected by the planned completion of various Master Plan projects during FY2015. In FY2015, $1.2 million is budgeted for renovation of the softball fields which includes: re-grading, installation of drainage and underground sprinklers systems, reconstruction of the infields and outfields, and rebuilding of the field dugouts and backstops. Also, renovation of the athletic locker rooms is planned for the new fiscal year. In FY2015, the repayment of $14.5 million of Debt Certificates, Series 2014 is budgeted. Additionally, ongoing principal and interest payments on the 2014 Debt Certificates and the 2011 and 2014 Limited Bonds are budgeted for FY2015. As described more fully in the Capital Expenditures portion of this document, in addition to Master Plan projects, a variety of IT equipment, replacement vehicles and upgrading the generator system for the Des Plaines campus are part of the FY2015 Capital Outlay budget. Other expense, which is primarily comprised of financial aid, is budgeted to decrease 7.7% to $13.7 million. This compares to a .35% increase between the budgets for fiscal years 2013 and 2014. Changes in the economic climate, decreasing amounts available from State of Illinois programs and changes in Pell grant guidelines are expected to keep financial aid levels moderately lower. These monies are provided by the State and Federal government and distributed by Oakton; there is no net cash impact to Oakton and students who successfully complete their classes do not need to repay these awards. Presidential Search With the impending retirement of President Margaret B. Lee after 30 years of exemplary service, Oakton’s Board of Trustees has launched a national search for a new president. After a survey and meetings with stakeholders across the college community, a College-wide committee will begin the search process with the goal of selecting a candidate by the end of April 2015. Budgeted expenditures for personnel recruitment have been increased in FY2015 by $100,000 for selection process costs. Operating Funds The Operating Funds, which are those funds used for the primary instruction and general support functions of the College, show revenues of $72,144,940 and expenditures of $69,327,940 for the fiscal year, plus fund transfers of $4,850,000 to the Operations and Maintenance Fund (Restricted), $946,000 (net) to the Auxiliary Enterprises Fund, $510,000 to the Liability/Settlement Fund, $100,000 to the Restricted Purposes Fund, $940,000 to the Social Security/Medicare Fund, and $29,000 from the Working Cash Fund. This leaves a net, planned deficit for the Operating Funds of $4.5 million; thus revenues plus interfund transfers in less expenditures plus interfund transfers out are projected to decrease fund balance by approximately $4.5 million for this fiscal year, as compared to a projected net planned deficit of $7.1 million for the Operating Fund budget in FY 2014. Greater than budgeted collections of property taxes and state credit hour reimbursement funding combined with an decrease in expenditures that was less than amounts budgeted contributed to a FY 2014 operating net surplus of $1.3 million in contrast to the $7.1 million deficit budgeted. (These amounts exclude depreciation which is not budgeted. Refer to the “Finance and Accounting” section of this document for additional information.) The $4.5 million budgeted deficit for FY2015 is primarily comprised of the contribution being transferred from the Operating Funds to the Operations and Maintenance (Restricted) Fund. As outlined in the Capital Expenditures section of this document and as further discussed in the Finance and Accounting section, the College’s Board of Trustees has established policy with respect to the amount and appropriate use of Net Assets within the budget. The Board has approved the

vii

investment of $20 million of Operating Fund Net Position in the current Five-Year Facilities Master Plan. The FY2015 contribution of $4.5 million represents the third installment of that investment for the fiscal years 2013 through 2016. Transfers from the Operating Funds and their purpose are summarized in the following table. At the same time, the FY2015 budget includes the transfer of $288,000 in royalty proceeds associated with a lease of airwaves owned by the College (“ITFS Lease”) into the Operating Funds. These monies are designated to support instructional programs.

Inter Fund Transfers FY14 Budget

FY14 Actual FY15 Budget

Auxiliary Enterprises Fund: ALLiance for Lifelong Learning $222,000 222,000 $304,000 Information Technology 912,000 912,000 930,000 Royalties from Airwave Lease (850,000) (850,000) (288,000) Operations and Maintenance (Restricted) Fund:

Remodeling and Infrastructure Projects Master Plan Projects

350,000

6,800,000

350,000

6,800,000

350,000

4,500,000 Liability/Settlement Fund: Tort 400,000 400,000 510,000 FICA/Medicare-Medicaid 780,000 780,000 940,000 Restricted Purposes Fund: Return of Unspent Strategic Initiative

Monies

(460,000)

(460,000)

Student Scholarships 100,000 100,000 100,000 Working Cash Fund: Interest Allocation

(32,000) -

(32,000) -

(29,000)

Net Operating Funds Transfers

$8,222,000

$8,222,000

$7,317,000

Annually, the Education Fund contributes monies towards funding the operations of the Alliance for Lifelong Learning. Additional transfers to the Auxiliary Enterprises Fund represent funding for the student and financial information technology systems. The transfers to the Operations and Maintenance (Restricted) Fund reflects the College’s commitment towards utilizing Net Position to partially fund the Master Plan and the ongoing utilization of net position for remodeling/infrastructure projects that are outside of the Master Plan. The College is evaluating the method it uses to fund liability, workers compensation and unemployment insurances along with employer payments of FICA and Medicare/Medicaid. Rather than levying taxes specifically for such obligations, FY2015 costs have been budgeted to be paid from transfers out of the Operating Funds. In fiscal year 2011, Oakton implemented an increase in tuition of $5 per credit hour. In conjunction with this increase, it was agreed that fifty cents of this increase (estimated to total $100,000 for the year) would be given to the Student Government Association to assist students with financial need. This practice continues in FY2015.

viii

The financial plan predicts total Operating Fund revenues will increase by 3.9%, in contrast to a 2.3% increase in the last budget. Among the Chicago collar county community colleges, Oakton’s combined tuition and credit hour fee rate is the lowest for FY2015. In February 2014, Oakton’s Board of Trustees approved a tuition increase for FY2015 and 2016. With the adoption of tuition increases for these years, Oakton will continue to be almost 23% lower than the current State-wide and peer group maximum tuition/fee rates. For FY2015, this represents a $9.71 increase to the previous rate of $95.34. Overall tuition and fees are projected to be comparable to FY2014 considering the impact of a tuition rate increase, and volume decreases anticipated for both tuition and fees. Overall tuition and fee are projected to increase by $1.1 million compared to FY2013, despite the elimination of the graduation fee. The graduation fee was eliminated to encourage a greater number of students to complete an Associate Degree or Certificate prior to transferring to a four-year college. A small ($18,000) increase has been assumed in credit hour funding collected from the state. The increase is not attributable to an increase in reimbursable credit hours, but rather to variation in the mix of credit hours and the rates at which the different types of courses are reimbursed. Due to uncertainties about the receipt of such funding, Oakton has continued to establish a reserve for potentially uncollectible state funding approximating 25% of amounts due. It should be noted that Oakton has established such reserves in preceding years, but did ultimately collect 100% of the College’s credit hour funding grant for FY2012 through 2014. Oakton’s budgeted credit hour grant funding has been nearly level at $5.6 to $5.3 million the last three years in contrast to rising costs during that period. (Of this total credit hour grant funding, in FY2015, $3.3 million is attributed to the Operating Funds and the remainder to the Auxiliary Enterprises Fund.) Property taxes are budgeted to increase $1.6 million from FY2014, consistent with the rate of inflation and statutory limitations on such increases. Local government revenues (property taxes and chargebacks) account for more than 63% of all Operating Fund revenues in this budget, the exact percentage budgeted in FY2014, and a reflection of steady enrollment trends and the corresponding impact on tuition and fees. State funding remains relatively consistent at 5.1% of budgeted operating fund revenues in FY 2015, compared to 5.2% for both FY2013 and FY2014. Other sources of revenue, including investment income, are expected to increase by 12% due to interest rates on those invested assets and the planned transfer of $4.5 million of Operating Fund net position to the Operations and Maintenance (Restricted) Fund for use in the Facilities Master Plan. Operating Funds budgeted expenditures are budgeted to increase by 1.5% or approximately $1.03 million, as compared to a FY2014 increase of 3.0% and the .17% increase for FY 2013. While the overall increase is modest, it is comprised of fluctuations in a variety of line items. Contractual salary increases along with the authorization of additional Staff positions account for the bulk of the increase. Salary expense is budgeted to increase approximately $180,000 (or .4%) in FY2015. Employee benefit costs for medical insurance plans and

Revenues

Operating Funds

Local Government 63.41%

Other Sources 0.72%

State Government

5.10%

Student Tuition and Fees 30.77%

ix

Expenditures

All Other 6.39%

Salaries and Benefits 78.73%

Contractual Services 8.28%

General Materials and Supplies

6.60%

Operating Funds Operating Funds

retirement benefits are budgeted to decrease 1.3% in FY15. The decrease arose due to a lower demand for benefits as a result of the Faculty and Staff retirements in 2014. This decrease is somewhat offset by the budgeted participation of Affiliated Adjunct faculty in the health insurance plan effective January 1, 2014. As should be expected in a service organization, the majority of the expenditures are for salaries (69.4%) and benefits (9.4%). Of the non-personnel categories contractual services (8.3%) and general materials and supplies (6.6%) constitute the other major expenditure areas. These categories are budgeted

to increase (6.5% and 5.4%, respectively) in FY15, this follows an increase of 6.0% for contractual services and an increase of 13.4% in materials and supplies between the fiscal year 2013 and 2014 budgets. The contractual services change is largely attributable to an increase in building and grounds maintenance and instructional contracts for the Fire Science program. Increased material and supply budgets are largely attributable to equipping the new SHC Building. Net Position The total net position for the College’s budgeted funds is $108.3 million at June 30, 2014 based on preliminary year end data. (Inclusive of all funds and account groups, the total net position is $168.4 million at June 30, 2014.) It is budgeted to decline $21.6 million or 19.1% by June 30, 2015. Two funds are budgeted to experience a reduction in fund balance of more than 10% during FY2015. The decrease of 32.5% budgeted for the Auxiliary Fund reflects a conscious intent to utilize a portion of monies that were accumulated during positive economic times to fund operations and initiatives, and provide improvements to specified athletic facilities. As discussed earlier, the reduction of the Education and the Operations and Maintenance Fund Net Position is equivalent to the contribution being transferred to the Operations and Maintenance (Restricted) Fund plus the projected net cost of Affiliated Adjunct participation in the College’s medical insurance plan effective January 1, 2014. The Board has approved the investment of $20 million of Operating Fund Net Position in the current Five-Year Facilities Master Plan; the FY2015 contribution of $4.5 million represents the third installment of that investment. Historical experience indicates a reasonable possibility that cost savings and supplemental revenues may decrease the amount of budgeted net position reductions. In either case, these net position reductions are not anticipated to alter Oakton’s overall strong financial standing or Aaa general obligation bond rating. The Auxiliary Enterprises Fund begins the fiscal year with a net position of $15.8 million. For FY2015, a portion of this net position (via a budgeted contingency) may be utilized to continue operating Adult Education and Literacy programs of the Alliance for Lifelong Learning in the event that State funding cuts occur. If budgeted expenditures are fully realized, the net position of the Auxiliary Enterprises fund would decline to $10.7 million. Net position of the Auxiliary Enterprise Fund will also be reduced by budgeted expenditures

x

20 35 50 65 80 95

110 125 140

2005

2007

2009

2011

2013

2015

(Excl. Inv. in Plant)

NET POSITION (000,000)

in excess of revenues for the ALLiance, ECE Lab Schools, and Athletics. In preparing the budget, ALLiance anticipated revenues will decrease as a result of both reduced tuition from enrollment trends and reduced state funding. As enrollment has declined and state funding has been subject to greater question, ALLiance has closely monitored staffing and other expense levels achieving small contributions to net position despite budgeted deficits. However, certain fixed costs remain and, facing potential cuts in State funding for Adult Education and Literacy programs, some costs historically paid by grants were budgeted in contingency for the Auxiliary Fund (reported as part of “Other Operations” within this fund) based upon the College’s commitment to offer these programs. As noted above, utilizing Auxiliary Fund monies to support the cost of Athletic programs is a key component of Oakton’s commitment to Student Success based upon historical evidence that mentoring/athletic programs lead to a greater degree of student success. The Early Childhood Education Lab Schools on Oakton’s Des Plaines and Ray Hartstein campuses have historically incurred expenses in excess of revenues however; the programs provide a valuable teaching tool for the Early Childhood Education degree program. Required staff, Oakton student and child classroom ratios are components of the net expense structure. The Restricted Purposes Fund is used to account for grant and other monies that have

restrictions regarding their use. Generally, the Restricted Purposes Fund is budgeted to have a net revenue, expense and interfund transfer result of zero. For many years, the Restricted Purposes Fund has carried a net position that appears to have originated primarily from indirect cost allocations associated with certain grants and interest on idle monies. At June 30, 2015, the Restricted Purposes Fund is budgeted to have a net position of $109,000.

Budgeted revenues of the Audit Fund and of the Liability, Protection and Settlement Fund exceed anticipated expenditures and interfund transfers. In conjunction with the FY2015 budgeting process, fewer property tax revenues were directed towards these Funds. Revenues that were previously levied for these funds will support student success and related initiatives in the Education Fund. This chosen alignment of the FY2014 and FY2015 tax levies and corresponding revenues results in a deliberate reduction of the Audit Fund and Liability, Protection and Settlement Fund net positions. The main component of the College’s Master Plan is the construction of a new $42 million, state of the art Science and Health Careers (SHC) Building. Construction of the SHC Building began in calendar year 2012 with build-out of all three floors being substantially completed by the end of January 2014. In November 2013 it was discovered that the first floor’s concrete slab-on-grade on the west side of the building (an area of approximately 8,300 square feet of the building’s total square footage of approximately 93,000) had begun to settle resulting in numerous cracks and uneven surfaces. As a result, final build-out of Division 1 offices as well as the outfitting of equipment and installation of furniture throughout the building, were put on hold.

xi

Relative Salaries

Administrator 6..83%

Student 2.78%

Staff 31.75%

Faculty 58.64%

(Operating Funds)

The projected cost of the remediation plan, scheduled for completion in late November 2014, is currently $4.1 million. The College has agreed to initially fund the costs of the remediation work without waiving any claims and has reserved its rights to pursue such claims against all potentially responsible entities for recovery of those costs. All parties have agreed to this process. By virtue of its excellent financial position and more than adequate reserves, the College is well positioned to manage cash flow for the remediation work. Salaries and Employees For fiscal year 2015 the College has added four new full time staff positions and three new part-time staff positions. Within the Administrator group, two positions were modified – one was upgraded to administrator and one was increased from part-time to full-time. One new position will provide HVAC maintenance for the new SHC Building. The number of authorized Full Time Faculty positions remains consistent. In the last several years there have been a significant number of Full Time Faculty retirements and 17 more are scheduled through August of 2017. Consistent with prior years, part-time faculty counts will vary in accordance with enrollment levels. The contractual agreement with the College’s part-time faculty was approved by the Board of Trustees in September 2013 and extends through August 2017 with an average annual salary increase of 3.2%. The current Full-Time faculty agreement extends to August 2016 and includes an annual salary increase of 3.04% in year one, 2.98% in year two and 2.95% in year three. Depending on the CPI-U, the increase in year four will be at least 2.6% but will not exceed 3.9%. Faculty at the top step will receive 1.25% raises for years 1-3. Their increase in year 4 may be up to 3% depending on economic conditions. The contract contains retirement-related incentives to those who declare their intent under specified guidelines. The current contract with Public Safety Officers extends to June 2016 and included a significant equity adjustment in the first year followed by an average annual salary increase of 2.75% over the remaining three years. The current contract with the Classified Staff extends to December 2016 and includes an annual salary increase of 3.04 in year one, 2.98% in year two, and 2.95% in years three and four. As the College continually examines its future needs through budget staffing requests and ongoing administrative review, a few positions may remain unfilled and there may be shifting of approved positions as the institution continues to refine its structure to meet the needs of the students and other operational necessities.

xii

210

220

230

240

250

FY 05

FY 06

FY 07

FY 08

FY 09

FY 10

FY 11

FY 12

FY 13

FY 14

Enrollment Trend Credit Hours

FY 06 FY 08 FY 10 FY 12 FY 14

Baccalaureate

Occupational

Relative Credit Hour Trends

Values adjusted for comparative purposes

Enrollment and Credit Hours Total institutional enrollment for Fiscal Year 2014 was 213,443 credit hours. These hours

represent a 4.3% decrease from 223,072 in 2013 and comparing to 227,393 in 2012 and 232,788 in 2011. In comparing the institutional credit hours for FY2014 and FY2013, it is also important to consider the composition of credit hours between Oakton credit related hours and ALLiance continuing education hours. Oakton credit-related hours in FY2014 of 180,626 declined 4.6% as compared with FY2013 credit-related hours of 189,405; this change is generally consistent what the experience of other area community colleges. A decrease in credit hours

occurred for ALLiance whose hours fluctuated to 32,817 in FY2014 from 33,667 hours in FY2013. ALLiance credit hours are predominantly restricted hours that are not eligible for reimbursement through state funding. It was assumed that Oakton enrollment would decline by approximately 4,000 credit hours (or 2%) in FY2015. Initial data is reflecting a 1.3% decrease in credit hours from the Fall Semester 2014 to Fall 2013. These fluctuations are being felt by other Chicago area community colleges as well. For FY2015, ALLiance does not expect enrollment to significantly increase. In several of the recent years, significant credit hour growth occurred consistent with negative changes in the economy. Consistent with other community colleges, Oakton anticipated this would level off with economic improvements. Additionally, there is anecdotal evidence that recent/potential community college students who have experienced longer term unemployment may be fully focused on job search efforts and choosing not to invest limited financial resources on continued education at this point in time. Economic factors, such as recent lay-offs by some major companies, should also be considered as the employees upgrade skills and look for training for career changes. It is likely that, for some students, the significant price differential between four-year college tuition and fees and those of the community college is a deciding factor in their college of choice. In the current economic environment, a more consistent level of enrollment is expected. Given the historical and comparative relative economic stability of the district, dramatic enrollment fluctuations are not anticipated. For the period 2008 through 2014, the relative relationship between baccalaureate course enrollment (77% of total enrollment) and vocational course enrollment at 23% has also remained steady. In baccalaureate offerings, computer science and engineering have experienced more growth than any other program – at least a 40% increase in credit hours

xiii

between fiscal years 2009 and 2014. Global business studies, modern languages, historical policy studies, and music experienced declines greater the 20% in that same period. Among vocational programs real estate and architecture/ construction management programs decreased significantly and those programs have been dropped. While fire science, paralegal studies and automobile technology courses have shown a substantial increase, electronics technology, early childhood education, and mechanical design have declined. Oakton continually reviews and refines its educational offerings to more closely meet the needs of the district residents and local businesses and continues its efforts to improve its enrollment posture through recruitment, partnerships and expanded marketing approaches. The College continues to carefully manage resources through financial control, investment in capital projects providing long-term benefit to the College’s student population, and reduction of expenditures where possible without affecting the quality and viability of the educational programs. The College’s financial goal of maintaining a healthy fiscal position through development of new and additional resources and through the wise allocation and use of available resources in support of the educational goals and mission of the College remains unchanged and was affirmed by the Aaa bond rating received from Moody’s in both August 2011 and August 2014. Overall, we believe that Oakton Community College presents an extremely vibrant educational and financial picture, in spite of the current state and federal grant funding questions. The College is confident it will be able to wisely manage our available resources and support our mission in the future. Budgetary Performance The following comments address certain variations between budgeted amounts and preliminary actual amounts for FY2014. Comparison of these figures is an indication of the assumptions and accuracy with which the budget was prepared and monitored. Amounts presented for the 2014 budget are not adjusted for subsequent budget transfers. Overall revenues were 10.6% under budget. Collections of property taxes and personal property replacement taxes were 9.0% less than budgeted amounts. Revenues from state government sources varied negatively from budget by more than 13% due to variances experienced with revenues reported for SURS contributions made by the State on behalf of Oakton employees that were $4.8 million less than budgeted. These deficits are also explained by other state grants and financial aid budgeted for but not ultimately received. Primarily due to unrealized grants, Federal government revenues were 33% (or $4.7 million) less than budgeted. Student tuition and fee revenues were approximately $209,000 (or 0.9%) less than budgeted. The revenue from other sources, primarily interest revenue and unrealized gains/losses on investments, was less than expected by 7.0%. Declining bookstore sales also contributed to this budget variance. For all funds, expenditures were greater than revenues by $4,559,741 and under budget by $49.5 million, or 26.6%. The largest components of this variance occurred in Salaries, Employee Benefits, General Materials and Supplies, Fixed Charges, Capital Outlay, and Other. Salary expenditures budgeted for $57,714,444 compared to actual expense of $53,519,637. These fluctuations are attributable to full-time faculty retirements and salaries that were compensated by grants, capital improvement projects that progressed at a quicker pace than expected in FY2013, and staff positions that were unfilled or delayed prior to

xiv

filling. Employee benefit expenditures were $25,624,925 as compared to budgeted amounts of $29,083,833. The favorable variance is mostly due to the over estimation of contributions to SURS from the State of Illinois during FY 2014. Expenditures for Capital Outlay were $27,309,313 as compared to $44,796,380 budgeted. This fluctuation has two primary components: $4.4 million was not incurred due to the speed of construction experienced towards the end of FY2013 and an unspent amount of $2.1 million caused by unrealized grants. Actual Operating Funds revenues were greater than budgeted by 2.50%. A negative variance in other sources (primarily interest income and fair market value adjustments) was offset by greater than budgeted property tax and personal property replacement tax collections in the Operating Funds. Additionally, all credit hour grant revenues from the State have been recognized as compared to the 75% reserve that Oakton had established in its budget for possible nonpayment; subsequent to year end, Oakton received the remaining payments due. Operating fund expenditures were less than budgeted by 9.7%. The largest savings was in salaries due to a combination of full time faculty retirements, salaries that were compensated by grants, ongoing efforts to optimize classes, unspent sign interpreter monies and staff positions that were unfilled or delayed prior to filling. Additionally, substantially all Contingency monies budgeted were not utilized.

Operations and Maintenance Fund (Restricted) expenditures were significantly less ($26,611,486) than planned ($46,157,849). This fluctuation is primarily attributable to the timing of expenditures related to the Five Year Master Plan. Major site and construction work was completed for the SHC Building; however, due to the cracks and uneven surfaces discovered in the concrete slab-on-grade and resulting remediation, a portion of remaining construction was delayed. Due to this delay in completion of the SHC Building a major portion of capital funds were unspent. In addition, expenditures budgeted in FY2014 for other projects were not incurred due to the speed of construction towards the end of FY2013. However, some of the unplanned surplus in the O&M Restricted Fund was offset due the majority of work for the Des Plaines campus Enrollment Center postponed during FY2013 and, therefore incurred during FY2014. Spending occurred for various other Master Plan projects including the relocation of the Northwest Municipal Conference, the last phase of Classroom Remodeling, a portion of the HVAC and Building Automation Systems Improvements, Phone upgrades, and nearly half of the Parking Lot improvements. Also, no work occurred in FY2014 for Lavatory Upgrades (re-budgeted for $500,000 in FY2015). Auxiliary Enterprises Fund expenditures were less than planned by 16.7%, due primarily to significant savings in Capital Outlay, Salaries and Contingency. The positive variance in Capital Outlay is attributable to IT – primarily from unspent monies and items that were ultimately charged to General Materials and Supplies as the purchases did not meet Oakton’s capitalization policy. Salaries varied from budget due to unfilled vacancies in IT, ALLiance and Athletics. Both the Bookstore and ALLiance carefully managed salary expense relative to decreases in revenue. Additionally, substantially all Contingency monies budgeted were not utilized. Other Information The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to Oakton Community College,

xv

Illinois for the Annual Budget beginning July 1, 2013. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. Oakton Community College also received the Certificate of Achievement for Excellence in Financial Reporting and the Award for Outstanding Achievement in Popular Finance Reporting for the fiscal year ended June 30, 2013. Miscellaneous Everyone is strongly encouraged to read the Introduction section of this budget presentation. It contains additional significant information on the goals, policies and processes which helped to define and shape this year’s budget and includes important supplementary information which will be of interest to the reader. Although for the purposes of publication organization it is a separate section, the information that the Introduction section contains may be considered an extension of this addendum. We have chosen to place the material in that section in order to be able to develop the information in greater detail and breadth. Robert J. Nowak Vice President for Business and Finance

xvi

The Government Finance Officers Association Of the United States and Canada (GFOA)

Presented a

Distinguished Budget Presentation

Award

to

Oakton Community College, Illinois

for its Annual Budget for the fiscal year beginning July 1, 2013

In order to receive this award, a governmental unit must publish

a budget document that meets program criteria as a policy document, as an operations guide,

as a financial plan, and as a communications device.

This award is valid for a period of one year only. We believe our current budget

continues to conform to program requirements, and we are submitting it to GFOA

to determine its eligibility for another award.

SECTION PAGE

Letter from the President iAddendum to the President's Letter iiiDistinguished Budget Award xviTable of Contents xviii

Introduction Section

Chart of Organization - Community College District No. 535 2Listing of Principal Officials 3Our Vision, Mission and Values 5Goals and Objectives 16Capital Expenditures 22Finance and Accounting 30Budget Process 46Notes on Preparation and Conventions 53

Budget Section

Comparison of Budgeted Fund Revenue and Expenditure Relationships 55Comparison of Revenues and Expenditures - All Funds 56Summary of Revenues and Expenditures - All Fund Groups 58Chart of Organization - President 60Chart of Organization - Academic Affairs 61Chart of Organization - Information Technology 63Chart of Organization - Student Affairs 64Chart of Organization - Business and Finance 65

xviii

OAKTON COMMUNITY COLLEGE Community College District No. 535

Annual Budget Fiscal Year 2015 Table of Contents

Comparison of Revenues and Expenditures - Operating Funds 67Comparison of Revenues and Expenditures - Education Fund 68Comparison of Revenues and Expenditures

Operations and Maintenance Fund 69Comparison of Revenues and Expenditures - Auxiliary Enterprise Fund 70Comparison of Revenues and Expenditures

Auxiliary Enterprise Fund by Program 72Comparison of Revenues and Expenditures

Bond and Interest Fund 76Comparison of Revenues and Expenditures

Liability, Protection, and Settlement Fund 77Comparison of Revenues and Expenditures

Audit Fund 77Comparison of Revenues and Expenditures - Restricted Purposes Fund 78Comparison of Revenues and Expenditures

Operations and Maintenance Fund (Restricted) 79Comparison of Capital Expenditures 80

Statistics Section

History of Actual Revenues and Expenditures - Operating Funds 83Comparison of Audited Operating Revenues by Source 85Comparison of Audited Operating Expenditures by Object 86Comparison of Audited Operating Expenditures by Function 87Comparison of Full-time Faculty Assignments 88Comparison of Instructional Faculty and Administrators 90Comparison of Classified Staff Assignments 92Comparison of Classified Staff 93Comparison of Total Reimbursable Credit Hours

by Instructional Categories 94Total and Reimbursable Credit Hours by Instructional/Funding Category 96History of ICCB Credit Hour Grant Rates by Instructional Category 98Enrollment Statistical Data 100Comparison of Student Enrollment Information

Fall Term Student Headcount 102History of Academic Awards 103History of Tuition and Fee Charges 104History of Financial Aid to Students 105Comparison of Property Tax Rates and Tuition and Fee Rates 106Ten Year History of Tax Rates and Assessed Valuations 108

xix

Typical History of Property Tax Rates - Overlapping Governments 109Comparison of Facilities and Use - Square Footage Data 110History and Comparison of Utility Costs 112

Appendix Section

Description of Functional Areas and Programs 114Degrees and Certificates Awarded by the College 134Agenda Item 12/12-8 consisting of:

Adoption of Resolution Setting Forth Tax Levies for 2012 136Certificate of Tax Levy filed with the County Clerk 138Certificate of Compliance with Truth in Taxation 139

Agenda Item 6/13 - 8b Resolution to Adopt FY14 Annual Budget 140(Legal Budget omitted)

Land Use Summary 143Neighboring Community College Districts Map 144District 535 and Surrounding Area Map 145Des Plaines Campus Map 146Ray Hartstein Campus Map 147Glossary 148Acknowledgements 160

xx

INTRODUCTION SECTION

2

VICE PRESIDENT FOR

ACADEMIC AFFAIRS

ASSOCIATE VICE PRESIDENT

FOR CONTINUING

EDUCATION, TRAINING & WORKFORCE DEVELOPMENT

VICE PRESIDENT FOR

BUSINESS AND

FINANCE

VICE PRESIDENT FOR

TECHNOLOGY AND DATA ANALYTICS

ASSISTANT VICE PRESIDENT

FOR OFFICE OF ACCESS,

EQUITY & DIVERSITY

EXECUTIVE DIRECTOR

FOR HUMAN RESOURCES

EXECUTIVE DIRECTOR OF COLLEGE

ADVANCEMENT VICE PRESIDENT

FOR STUDENT AFFAIRS

3


Listing of Principal Officials

Members of the Board of Trustees (with term expiration)

Mr. William Stafford - 2015

Chairman, Board of Trustees

Ms. Patricia N. Harada - 2017 Vice Chairman, Board of Trustees

Ms. Ann E. Tennes - 2019

Secretary, Board of Trustees

Ms. Theresa Bashiri-Remetio - 2015 Member, Board of Trustees

Dr. Joan W. DiLeonardi - 2019

Member, Board of Trustees

Mr. Kyle Frank - 2019 Member, Board of Trustees

Mr. Jody Wadhwa - 2017

Member, Board of Trustees

Mr. Daniel J. Alferes - 2015 Student Member, Board of Trustees

Emeritus Members of the Board of Trustees

Mrs. Joan B. Hall

Mr. Ray Hartstein

4


Listing of Principal Officials (Continued)

Principal Administration Officials

Dr. Margaret B. Lee President

Dr. Michael Anthony

Assistant Vice President for Access, Equity and Diversity

Dr. Michael Carr Assistant Vice President for Academic Affairs

Dr. Thomas Hamel

Vice President for Academic Affairs

Dr. Merrill Irving Associate Vice President for Continuing

Education, Training and Workforce Development

Ms. Bonnie Lucas Vice President for Technology and Data Analytics

Ms. Mum Martens

Executive Director for Human Resources

Mr. Robert Nowak Vice President for Business and Finance

Dr. Joianne Smith

Vice President for Student Affairs

5


Our Vision, Mission and Values

Oakton’s vision, mission and values are based on long-standing and fundamental principles guiding the College’s work and the relationships among all those who work and study at Oakton, as well as members of the community and professional colleagues throughout the nation. The vision, mission and values were formally ratified by the Board of Trustees on October 20, 1998. They were reaffirmed by the Board on October 15, 2002. 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.

6

History Founded in 1969, Oakton Community College opened its doors to 832 students in fall 1970. The “campus” consisted of four factory buildings at the intersection of Nagle Avenue and Oakton Street in Morton Grove. Search for a new site began almost immediately, but four years elapsed before the College purchased 170 acres of land between the Des Plaines River and a county forest preserve on the far western edge of the district. Site development began in 1975, and the first students walked through the doors of the new building for summer school classes in June 1980. Major additions were completed in 1983 and 1995. Also in 1980, the College leased, and subsequently purchased, Niles East High School in Skokie, in the eastern part of the district. The College eventually demolished the high school and opened a brand new facility in 1995. In 2006, the Ray Hartstein Campus (RHC) in Skokie opened the Art, Science, and Technology Pavilion. In 2012 the College broke ground for a new Science and Health Careers (SHC) Building on the Des Plaines campus. The first classes are scheduled in the SHC Building for the Spring 2015 Semester. Extensive remodeling will take place in spaces vacated on the Des Plaines campus as programs move to the new building.

Educational Programs and Services In accordance with the Illinois Community College Act, Oakton provides, at a minimum, the following educational programs and services: Baccalaureate and general education for students planning to transfer to four-year

colleges and/or to earn an associate degree in the liberal arts, science, engineering, or fine arts.

Occupational education to provide students with career training suitable for obtaining

employment or enhancing occupational skills.

General or developmental studies for students requiring additional preparation before they can begin college-level education.

Continuing education for residents, employers, and employees of the community

desiring classes without having to enroll in formal college-level courses.

Public service activities to meet specialized needs of the community; such activities may include workshops, seminars, and customized employee training programs offered on or off campus.

Student services, such as counseling and advisement, testing, and tutoring.

7

About Oakton

Oakton’s external environment is shaped by trends and characteristics of residents, businesses, educational institutions, public agencies and governments, other organizations and the economy. The external environment provides the setting within which the College develops and offers programs and services that respond to student, employer, and community needs. The external environment also affects resources available to the College. To learn about the external environment, Oakton holds numerous conversations with local, state, and national leaders; convenes meetings with employers; reviews public and professional literature; and analyzes data and information about the area, the state, and the global economy. Based on the above studies, the College identifies these important characteristics: Geographic Location Oakton Community College includes Maine, Evanston, New Trier, Niles, and Northfield Townships and serves an estimated population of approximately 440,000 living in the communities of Des Plaines, Evanston, Glencoe, Glenview, Golf, Kenilworth, Lincolnwood, Morton Grove, Niles, Northbrook, Northfield, Park Ridge, Skokie, Wilmette, and Winnetka. The College also serves one square mile of Wheeling township and small portions of Norwood and Leyden townships. With campuses in Des Plaines and Skokie, Oakton also offers continuing education classes at locations throughout the district and distance learning courses via the Internet and interactive television. Both campuses are conveniently located, close to major roadways leading into Chicago as well as to all parts of the Chicago metropolitan area, Wisconsin, and Indiana. Students also have access to public transportation including Metra commuter trains and Pace bus routes. The College's educational neighbors include College of Lake County to the north, William Rainey Harper College to the west, and Triton College and City Colleges of Chicago to the south. Population Stable in terms of size, the College’s district population is not expected to change significantly. However, the area is becoming increasingly diverse with respect to ethnicity, race, nation of origin, culture, religion, educational background, English language competency, and household composition (for example, single-parent families and multiple generation households). For the most part, district residents are well-educated and upper middle class. For example, 51 percent of adults age 25 and above have a college degree, compared to 30 percent statewide and 27 percent nationally. According to the 2010 U.S. Census the estimated 2008 median household income in Oakton’s district was $83,100 compared to $56,853 statewide and $53,046 nationally.

8

The population is white (72 percent), Asian (14 percent), Hispanic/Latino (8 percent), Black or African-American (5 percent), and all other groups including two or more races (1 percent). The decade from 2000 to 2010 saw an increase in Asian, Hispanic/Latino, and ‘other’ or ‘two or more races’ residents. Education K-12 public school systems are strong, and Oakton’s feeder high school students are the most recruited college-bound students in the country. As many as 97 percent of high school graduates pursue postsecondary education. The district also contains a number of private and parochial schools that offer all levels of education through high school. K-12 officials report an increasing number of students with special needs, including students with physical, emotional, and/or learning disabilities. The number of school-age children is stable, and schools do not anticipate significant growth. Shifting national perceptions about higher education as a private good to benefit individuals, rather than a public good to benefit society, play out in reduced public financing of higher education and greater reliance on student tuition and fees. Oakton’s good fortune to have a strong tax base buffers the College from the most dramatic effects of reduced state funding, but concerns remain that the state may change its funding formula, threatening the ability of colleges in districts like Oakton’s to benefit from robust local tax bases. An additional concern centers on the taxpayers, who, faced with reduced home values and increased property taxes, may resist supporting public institutions as taxes rise and as assessed valuations fall due to the tax cap “guaranty.” This “guaranty” allows the College to levy at the previous year’s amount plus 5% or inflation (whichever is lower) regardless of (any) decline in assessed valuation. Explicit state and national mandates call for more college graduates. Shortly after the presidential election in 2008, the Obama administration set a goal for five million more degrees/certificates by 2020 as compared to 2010. The State of Illinois has set a goal that 60 percent of Illinois adults will have a college degree or certificate by 2025, compared to the current 43 percent. Technology continues to evolve and expand, with what seems to be a never-ending array of new applications, equipment, and uses. Colleges and universities approach technology from multiple directions: as a tool to enhance learning and teaching; as the subject of study; and as a means to improve efficiency and effectiveness in managing the organization and delivering services to multiple constituencies. Online education has exploded in the number of colleges and universities offering distance learning courses and the number of students taking them. At the same time, social media has transformed the way people communicate for personal, educational, and professional reasons. Business and Industry Employers indicate the need for employees who not only have technical skills, but also the ability to communicate, work in teams, think critically, solve problems, and demonstrate responsibility. A new development focused on nanotechnology and

9

biotechnology recently opened in the Illinois Science and Technology Park, providing the College opportunities for partnerships with the Village of Skokie, North Suburban Educational Region for Vocational Education and Forest City Enterprises, the major developer associated with nanotechnology in the country. The economic base and labor markets within Oakton’s district comprise a diverse array of businesses, industries, and service providers. At the same time, the financial turmoil during the recent years has led to increased home foreclosures, high unemployment, and economic uncertainty for many district residents. Identifying jobs for which to retrain workers, with confidence they will be able to obtain employment remains challenging. Fields in which job opportunities exist, such as manufacturing, appear not to be aligned with the interests of district residents. The Area With the area’s largely developed geographical base, minimum potential exists for added housing. Recently, many communities have again witnessed older housing being demolished and replaced with new single family or multiple family residences. This “teardown” activity had slowed significantly as the economy shrank and housing prices declined. The district’s local public governments, as well as library and park districts, have traditions of high-quality service and relative autonomy. An increasing number of schools, organizations, and commercial vendors are offering education and training to residents and employees through distance education, in traditional classroom settings, and at the workplace. More than 50 postsecondary institutions lie within easy driving distance of Oakton with many others offering online classes to district residents. Financial Base The assessed value of taxable property in Oakton’s district is $18.9 billion. This reflects a decline from assessed values of $21.6 billion in tax levy year 2012 and a high of $28.5 billion in tax levy year 2009. The Property Tax Extension Limitation Law (PTELL) limits the increase in property tax extensions to five percent, or the percent increase in the national Consumer Price Index (CPI) for the prior year, whichever is less. Adjustments are made for annexations, mergers, disconnections, new construction, and increases approved by taxpayer referendum. Oakton’s district houses more than 25,000 businesses of all sizes. The labor market includes substantial numbers of employees in service, financial, health care, and related occupations at all levels. Economic Modeling Specialists, Inc, a national labor market research company, estimates Oakton’s district has more than 400,000 full-and part-time jobs. Until the last couple of years, unemployment has been low. Illinois is experiencing serious financial issues, and support for higher education remains problematic. Oakton’s revenue from the state continues to be uncertain as to both the amount and reliability of state funding for higher education, including the availability of the Illinois MAP (Monetary Award Program) grant for student financial assistance. Given

10

its significant deficit, Illinois’ financial health undoubtedly will not improve substantially over the next several years. The fiscal situation at the federal level also is creating uncertainties regarding grant funding for special programs such as those supported through the National Science Foundation and the Department of Education. Additionally, grant applications and requirements for reports on grants received are becoming more complex and time consuming. Students are graduating from college with high debt and poor job prospects, prompting prospective students to begin questioning the value of postsecondary education. Doubts about qualifying for student financial assistance; e.g., the federal Pell grant and the Illinois MAP grant, place additional financial pressure on students and their families. At the same time, state agencies, legislators, accreditation agencies, the federal government, and the public demand more accountability from schools at all levels, including colleges and universities. Employees More than 50 full-time faculty and 65 staff retired in the period 2010-2014. New faculty and staff will provide fresh ideas and build on Oakton’s history of employee engagement and institutional loyalty. Thinking more creatively, the College now recruits more broadly for employee replacements, especially for full-time faculty, and includes provisions for seeking full-time faculty from adjuncts/part-time faculty. Accreditation Oakton Community College is accredited by The Higher Learning Commission of the North Central Association of Colleges and Schools (230 South LaSalle Street, Suite 7-500, Chicago, IL 60604; 312.263.0456; www.ncahlc.org). The College is recognized by the Illinois Community College Board and is a member of the American Association of Community Colleges, as well as numerous professional organizations.

Facilities and Services One College, Four Campuses As noted above, Oakton Community College maintains physical campuses in Des Plaines and Skokie. Occupying 193 total acres, the College’s properties include 25 acres of lake and drainage, 30 acres of athletic fields, 29 acres of parking lots, a two-acre prairie restoration area with the balance occupied by buildings.

11

Oakton’s scenic Des Plaines campus at 1600 East Golf Road, surrounded by woodlands and prairie, includes a 410,000 square foot main building and a 7,300 square foot grounds maintenance building. The main building will also house the new Enrollment Center which integrates student services for admission, advising and counseling, financial aid, and registration and records functions in one convenient location. At approximately 13,800 square feet, the enrollment center also incorporates all functions now scattered across the Des Plaines building into a facility that is modeled after the successful design implemented at the RHC. The College houses 61 classrooms, 64 labs, 285 offices, and a 9,500 square foot gymnasium. Other facilities include a Performing Arts Center, with a 285-seat theater; the Koehnline Museum of Art; an Early Childhood Demonstration Center; and a Fitness Center. (See Capital Expenditures for additional information about the Science Health Center) Currently, a new Science and Health Careers Center is under construction on the Des Plaines campus which will meet contemporary and emerging science and health career educational standards, and will house the College’s anatomy and physiology, biology, chemistry, earth science, medical laboratory technology, nursing, physics, and physical therapy assistant programs. The Center broke ground in April 2012. Located on the northeast side of the existing campus, 93,000-square-foot facility will feature sophisticated labs; flexible, light-filled classrooms; enhanced technology; and abundant lab preparation and storage space. The building is scheduled for completion in November 2014 and classes are scheduled for Spring 2015. The RHC in Skokie, situated on 21 acres at 7701 North Lincoln Avenue, is home to 34 classrooms, 34 labs, and 86 offices. In 2006, the College constructed the Art, Science, and Technology Pavilion which houses Oakton’s programs in art and graphic design, computer networking and systems, computer technology and information systems, electronics, engineering, and manufacturing. The Pavilion’s architect, Ross Barney, earned a “citation of merit” in the Distinguished Building category from the Chicago chapter of the American Institute of Architects. A $75,000 Illinois Clean Energy Fuel Foundation grant enabled the firm to incorporate numerous energy efficient features into the Pavilion design, including building materials that reduce heat transfer; occupancy sensors for lighting and temperature control; low flow technologies to reduce water consumption; and bamboo flooring and other sustainable materials. With rapidly changing technologies putting a new emphasis on alternative course delivery, Oakton offers an “electronic” campus, with distance learning and online education. The College has been at the forefront of this digital revolution, developing a wide variety of quality, innovative, online courses to serve the needs of an increasingly diverse student body. Nearly all general education requirements for the Associate in Arts or Associate in Science degrees can be completed entirely through online courses at Oakton. In the Fall 2013 semester, 9% of students took courses exclusively online and 13% of students took a combination of on-campus and online courses.

12

The College also provides a “neighborhood” campus represented by the Continuing Education, Training, and Workforce Development programs delivered through the Alliance for Lifelong Learning and the Business Institute. Historically an Illinois leader in adult and continuing education, Oakton’s noncredit program serves more than 38,000 people annually, with 19,600 in noncredit courses and workshops and at least 8,700 more in community service offerings. Through a unique partnership with all but one of the local high school districts and other community groups, the Alliance for Lifelong Learning currently offers courses at more than 150 locations. Educational Services Approximately 53,000 students enroll in Oakton’s credit and noncredit courses each year, including both courses approved by the Illinois Community College Board (ICCB) and personal interest courses that do not require state approval. Of the enrolled students, more than 15,000 take Oakton credit courses annually, with fall term enrollments of more than 10,300. Many other individuals connect with Oakton by attending an array of special programs, athletic competitions, and cultural events, or by participating in the activities sponsored by outside groups that lease Oakton’s facilities. Students enroll at the College for a variety of reasons. Forty-five percent of Oakton’s students register in transfer programs, while 35 percent pursue career and technical education (CTE) programs, and 20 percent remain undecided. However, students are not always clear about the distinction between transfer and CTE programs, particularly in fields such as business. For example, a student who wants to earn a baccalaureate degree in marketing may indicate a marketing major at Oakton, though the College’s marketing program falls into the CTE domain, and the A.A.S. does not transfer to baccalaureate colleges of business. (It is important to note the courses taken by this student do transfer to baccalaureate colleges of business.) Dedication to quality and innovation characterizes the entire scope of Oakton’s credit course offerings and programs. The College’s 21 baccalaureate departments offer associate degrees in liberal arts (A.A.), science (A.S.), engineering (A.S.E.), art or music (A.F.A.) and education (A.A.T.). In addition, more than 100 certificates are available through 36 career programs. Oakton participates in the Illinois Articulation Initiative (IAI), an agreement among Illinois public and private colleges and universities to identify freshman and sophomore level courses in a number of majors and honor a general education core curriculum. To facilitate ease of transfer for interested students, Oakton has negotiated articulation, 2+2, and dual admission agreements with more than 20 four-year colleges and universities. A substantial number of students enter Oakton unprepared for college. Many may lack knowledge about how to navigate higher education or be unable to overcome the economic challenge to pay for their education. Others need additional academic skills to succeed in college-level courses. For example, 30 percent of recent high school graduates place into developmental writing, and 66 percent place into developmental math, including intermediate algebra. These figures comport with those found at

13

community colleges across the nation. In Fall 2013 Oakton joined Achieving the Dream, a national initiative to improve student success, especially the success of minority and low-income students. The associate’s degree appears to be less appealing than a bachelor’s degree, as evidenced by the significant number of students who transfer prior to earning the associate’s degree and the large cadre of students who take CTE courses but do not complete a degree or certificate. Moreover, except in selected fields such as health care careers, students can enter the labor market without earning an official credential. More students from other countries enroll with different cultural and family expectations and a lack of understanding about higher education in the United States. They experience cross-pressures to assimilate, and at the same time, honor the culture with which they identify. A substantial number of Oakton students enroll part time, and even full-time students often take less than 15 credit hours per semester, thereby extending the time to earn a degree well beyond two years after entry. Student Services The College also provides other services to insure that students enjoy a successful, well-rounded, and supportive college experience. College initiatives to improve student success are underway (e.g., the reorganization of developmental mathematics known as RoadMATH; expanded orientation for new full-time, traditional-aged students; and recommendations for a variety of support services from the Student Success Working Group). Preliminary data about the success of the new initiatives show much promise. Achieving the Dream initiatives will expand and refine the Student Success Working Group projects. The Learning Center helps students who want to develop, improve, and refine their learning skills. The Center offers tutoring in a multitude of subject areas, as well as workshops focused on grammar, writing mechanics, and research papers. Staff place special emphasis on helping English as a Second Language students through tutoring, conversation groups, and workshops and provide assistance with academic counseling, financial aid, and registration. Students also may take College 108, a success seminar that enhances academic skills, interpersonal adjustment, cultural understanding, and career awareness. All students must take assessment tests in English, mathematics, and certain other subject areas. The College is witnessing increased numbers of students with documented disabilities (physical, emotional, learning), and they and their families have differing expectations for Oakton to serve them. These requests range from sign language interpreters, to more time for test taking, to classroom note taking and other services.

14

Other services also foster student development, including special programs for adults and older returning students. Career Services provides information about work-study, internships, apprenticeship programs, government jobs, volunteer opportunities, and current employment opportunities within the greater Chicago area. Career Services also manages all student employees. Counselors and Academic Advising offer professionally trained staff who help students with education and career planning as well as those with issues that might interfere with personal and academic growth. Also available are a robust range of student activities such as clubs and organizations, intercollegiate and intramural athletics, and student government, which represents student interests to the administration, faculty, and Board of Trustees. An elected student represents the Student Government Association by serving as an advisory-voting member of the Board of Trustees. The Office of Student Life also supports social and entertainment events for the campus and the College community.

Student Demographics During the past decade, the Oakton student has become part of an increasingly diverse population. In credit programs, younger students (through age 24) constitute 61 percent of the student body. Fifty-one percent of enrolled students are women. Fifty-one percent are White non-Hispanic, 19 percent are Asian, 14 percent are Hispanic, 6 percent are African American, and the remaining 10 percent have chosen not to identify themselves with any one of the standard ethnic categories. Approximately 40 percent of students indicate that their native language, or that the language spoken at home, is not English. Spanish, Polish, Korean, Urdu, and Assyrian are languages identified by the largest number of students, although Oakton students speak more than 50 different languages. In spite of the relative affluence of Oakton’s district, 37 percent of students receive some type of grant, loan, work, or scholarship assistance. Each year the College offers increased scholarship and grant programs, and students take advantage of these educational opportunities. Drawing from respondents to the Fall 2012 Current Student Survey, data indicated 39 percent of students were first-generation (neither parent had attended any college in the United States. More than 15 percent of all current students have a bachelor’s degree or higher. Forty-five percent of respondents to the Fall 2012 Current Student Survey indicate their main objective at Oakton is to prepare to transfer to a four-year college or university, with 66 percent of younger and just 16 percent of older students having this objective. Conversely, 69 percent of older and just 16 percent of younger students are focused on career preparation. Nearly half (46%) of current students have attended another college or university.

15

Oakton students largely transfer to two-year and four-year colleges or universities in the Chicago area. Respondents to the 2012 Baccalaureate Alumni Survey1

went to these institutions in the largest numbers: Northeastern Illinois University, the University of Illinois at Chicago, DePaul University, Loyola University, Roosevelt University and the University of Illinois-Urbana.

Thirty-three percent of Fall 2012 Current Student Respondents reported working full-time outside the home, 46 percent work part-time, and 21 percent reported not working outside the home.

1 This survey is for students who earned at least 30 credits or an associate degree in a transfer program and have been away from Oakton for one or three years. It is conducted annually. The College strives to obtain 300 responses from each group (away one or three years).

16


Goals and Objectives Strategic Goals and Objectives Adopted by the Oakton Community College Board of Trustees April 17, 2012 Oakton is … connecting what matters.

Connecting students with the college community and the curriculum with student goals. Connecting the curriculum with the demanding, ever-changing requirements of our world and workplaces. Connecting employees with one another and with the mission, vision and values of the College.

Oakton Community College is proud to share Connecting What Matters, its strategic plan for 2013‐2017. Ideas from numerous members of the College community, and the local, state, and national agendas that have made college completion and student success paramount priorities for all colleges and universities inform the goals and objectives of the plan. Connecting What Matters builds on and evolves from previous strategic plans. Working together, Oakton has met many of its previous goals, and continues the commitment to their spirit and intent, recognizing they laid a firm foundation for excellence, change, and meeting the expectations of multiple stakeholders, both internal and external to the College. These and the following commitments have been made, work is in progress, and the College fully expects them to continue and grow stronger.

• The College adopted a Facilities Master Plan in 2010 that now guides the construction of new facilities, as well as renovations of existing classrooms and service areas.

• The College will continue to invest in anti‐bias strategies with programs, services, and curricula to make Oakton a more inclusive institution for students and employees.

• Green initiatives have made sustainability a priority in a wide range of institutional

practices, academic offerings, and in the use of the grounds and internal environment.

17

• Professional development opportunities, both internal and external, continue to support employees in meeting the College’s strategic goals and objectives, and in meeting their responsibilities to maintain and develop a high level of currency and competence in their work.

• Investments in technology catalyze teaching and learning, as well as enhance

administrative services, communication, outreach, and the management/operations of the College.

• The College’s financial health is strong. Oakton continually monitors changes in funding

and expenditures to ensure financial stability.

Moving into the next five years, the College identifies three overarching goal areas for special emphasis, along with several specific objectives to be implemented for each. We stand together and look forward. Goal: Student Success Oakton will demonstrate renewed commitment to student success. The College will cultivate and engage in practices that foster the attainment of academic, career, and personal outcomes determined and developed through collaboration between the student and the College. Oakton expects extra‐ and co‐curricular activities and programs to support these efforts. Oakton will identify specific obstacles to student success and develop innovative, effective strategies to help students overcome these obstacles. In addition to students’ goals, Oakton acknowledges that success is tied to College, state, and national priorities relating to completion and transfer.

• The number of Oakton degrees and certificates earned by students will increase at least 15 percent by 2017, an additional 950 credentials.

Fiscal Year Performance FY13 (2.3%) FY14 4.2%

• There will be a 15 percent improvement in students’ success in developmental and college level gateway courses by 2017.

Fiscal Year Performance FY13 0.5% FY14 1.3%

• The College will require Orientation for all new full time students and strongly encourage

participation for new part-time students, especially those for whom Oakton is their first college.

18

• Oakton will support multiple pathways, including social media, through which current and prospective students can access information, transact business (e.g., register, pay bills, access grades), and attend Oakton.

• The College will expand opportunities for students to earn credit for prior learning.

• Oakton will champion initiatives that foster a sense of belonging and engagement in the life of the College and in its programs and activities.

• Oakton will increase connections with its district schools, especially around issues of

mutual interest such as aligning curricula, improving students’ readiness for college, and providing opportunities for students to earn college credit prior to high school graduation through dual credit and other approaches.

• Oakton will strengthen connections with other colleges and universities to promote

transfer. Goal: Academic Excellence Oakton will deepen its tradition of being recognized for academic excellence. Courses, curricula, and programs – both credit and noncredit – will reflect current and emerging content, creative and effective pedagogy, and learning environments that support multiple modes of delivery and student engagement. Recognizing that learning in classes and courses is central to the student’s experience and success at Oakton, the College will pursue enhanced student success and academic excellence in traditional and emerging learning venues.

• All programs will use the results of learning outcomes assessments to improve teaching and learning.

• Every Oakton credit class will provide Web based information, resources, and support to students by Fall 2014.

• Oakton will offer hybrid sections in at least 40 different courses across disciplines by Spring 2017.

Fiscal Year Performance – Number of Courses FY13 18 FY14 18

• Oakton will encourage faculty to develop and deliver innovative content, materials, and

pedagogy.

• Oakton will expand opportunities for students, inside and outside of class, to participate in activities that engage them with issues that confront local and global society.

19

• Oakton will strengthen career program advisory committees and linkages with business and industry to respond to changing and emerging workforce development needs.

• The College will enhance opportunities for students to have workplace experiences

through expanded internships, practica, clinicals, service learning, and other activities.

• Oakton will use the College campuses as living laboratories for courses and activities that emphasize the study and practice of sustainability.

Goal: Connected Communities Oakton values all members of the College community. Oakton will continue to transform its practices to combat all forms of exclusion and bias, working to assure that diversity of culture, race, class, gender expression, sexual orientation, religion, ability, and age is reflected in and valued by administration, faculty, staff, and students, and in curricula, programming, and institutional policies and procedures. Oakton will continue to be responsive to the needs and interests of community members and area businesses and organizations for transfer, career, and continuing education and for programs that support the intellectual and cultural life of the community. The College will foster a culture of employee engagement that includes philanthropy, service, and support for programs and activities.

• Oakton will offer a coordinated array of programs and training to strengthen the anti-bias perspective and cultural competence of employees, and 80 percent of employees will participate in at least three programs over the life of this plan.

• The Professional Development Teams will provide new and innovative opportunities aimed at building community among employees across the College.

• The College will explore options for designated space that will contribute to building,

nurturing, and sustaining the spirit of community within and among employee groups.

• The College will continue to build and enhance partnerships with business, civic, and community organizations.

• The College will actively encourage the participation of employees in College-sponsored

events and activities including, but not limited to, speakers, athletics, performing arts productions and Oakton Educational Foundation benefits, with a target that 50 percent of employees will do so each year.

20

Strategic Planning Process Specific activities comprising strategic planning included the following: Fall 2011 – Spring 2012 President Margaret B. Lee initiated the process for a new strategic plan in Fall 2011. In keeping with Oakton’s approach to developing a strategic plan, the College engaged both internal and external constituencies through the first seven months of the academic year. Beginning in September with an open invitation to think together about the future in a modified “World Café” model, the Strategic Planning Committee crafted a plan that not only builds on Change Matters, the strategic plan for 2008-2012, but also responds to current and emerging priorities for the College. In December 2011, the Committee scheduled Town Hall meetings at both campuses, providing the opportunity for faculty, staff, administrators, and students to comment on the first draft and the proposed goals. A second round of Town Hall gatherings, as well as an all-faculty meeting, enabled faculty to comment on the second draft, which included both broad goals and more specific objectives. The Committee also sought comments on the draft from more than 300 external stake holders who included members of advisory committees, local elected and appointed officials, K-12 leaders, and Oakton Educational Foundation Directors. In addition, the student representative asked for input from students. After considering all suggestions and ideas, the Strategic Planning Committee recommended a final plan. The Board of Trustees adopted the plan on April 17, 2012. Year 2017 Develop a new strategic plan. Affirmation or revision of Oakton’s vision, mission, and values will take place as appropriate.

Implementation of Goals Making Progress on Goals and Objectives Existing departments and committees of the College are taking the lead in developing and implementing plans, programs, services, and activities to meet Connecting What Matters goals and objectives. Some objectives require the appointment of cross-institutional teams to collaborate on achieving goals and objectives. Financial Support Financial support for implementing Connecting What Matters comes from several sources. First, many activities are being funded through the College’s annual operating budget. Second, special projects that advance the attainment of strategic goals and objectives which require funding beyond the College’s operating budget will be approved as part of the regular budget cycle. Third, external grants and support from the Oakton Educational Foundation will be sought as appropriate.

21

Monitoring and Reporting Progress Those identified as the leads for each goal and objective will compile information annually about progress, and the President will prepare an annual report the College and the Board of Trustees.

Special Funding Initiatives – FY 2015

In support of the College’s 2013 -2017 Strategic Plan the following initiatives are included in Operating Fund expenditures and recommended for funding in the Fiscal Year 2015 Budget:

Description Funding

Student Success Focused – includes ongoing expansion of in-person Orientation and jOURney Mentor programs, ¡Andale! programming, a Summer 2014 Bridge program for 86 Evanston, Niles and Maine Township HS students, in-house testing for students with potential learning disabilities and representative attendance at the 2015 DREAM Institute. Monies are also designated for Achieving the Dream initiatives at President Lee’s discretion

$273,600

Connecting What Matters Focused – includes a Financial Literacy/Debt Management component to Orientation and College 101, Advanced Manufacturing Expo attracting 350 to 400 district HS students, Career Program Advisory Committee Recognition dinner, Anti-Racism team development, updates to 2004 exterior signage on both campuses and various community outreach efforts

$184,000

Master Plan Focused – funding for the Sustainability (Resource) Center fostering educational events for student, faculty, staff and community organizations with a focus on Green Initiatives. Will also fund activities required by Oakton’s commitment to the Illinois Governor’s Sustainability Compact. Also includes funding for an accessibility audit of both exterior door and internal public areas of both campuses.

$88,200

Other – funding for the Presidential Search including consulting firm services, advertising, travel reimbursement and related costs

Total FY2015 Funding

$121,200

$667,000

22

Capital Expenditures Definition The College defines Capital Expenditures (also “capital equipment” and “capital outlay”) to include site acquisition and improvement, office equipment, instructional equipment, and service equipment. Generally expenditures in this category cost more than $10,000 and would not normally be purchased from general materials and supplies. Building projects, remodeling projects, vehicles, computer servers and related equipment, and laboratory equipment would be typical examples of items included in this category.

Capital Expenditures are handled as a separate component of the budgeting process and then integrated into the final budget document. In addition to Capital Expenditures related to the Five Year Facilities Master Plan, described more fully below, each administrator is asked to submit requests for special and capital equipment and for remodeling projects. In this context, special and capital equipment is defined loosely as non-recurring items which would not normally be procured through the regular operating supplies and materials budget category. Although the capitalization threshold for the College is $10,000, there is no minimum dollar amount prescribed for these requests (and budgeted amounts are not carried over from year to year); the word "capital" is used in its generic sense here. These items might include computers or printers, replacement classroom sets of equipment for labs, or new College vehicles or tractors. Requests are submitted electronically to the Budget Office, which compiles a master request list. The President's Council, working with the other administrators, approves final equipment determinations. The Budget Office prepares a final equipment request list which serves as the basis for individual equipment purchases in the new fiscal year and as authority for integrating capital equipment funds into the final budget. The process requires difficult choices because there are simply never enough resources to satisfy every program's needs and desires. Specific remodeling requests are evaluated by the Director of Facilities for costing, feasibility, and over-all compatibility with the College's general and continuing maintenance program prior to being integrated into the budget. Capital equipment and remodeling requests apply only to the current budget determinations and revert to zero for the next budget cycle. Capital Improvement Management Policy In December 2010, Oakton adopted a formal Capital Improvement Management Policy. Within this policy, capital improvements are defined as physical assets, constructed or purchased, such as buildings, grounds and related infrastructure. General principles the College will employ for the overall management of capital improvements include utilization of capital improvements in the ongoing fulfillment Oakton’s vision, mission and values, to maintain and maximize the useful life of capital improvements and to update the Comprehensive Facilities Master Plan every five years including an assessment of the College’s infrastructure.

23

The policy states that sources of funding for capital improvement projects will be evaluated from a variety of alternatives including:

• Current revenues • Debt financing • RAMP monies • Donor financing • Capital fundraising activities • Grant funding • Net position (fund balance) • Net surplus (revenues in excess of expenditures and interfund transfers) from an

individual fiscal year Donor-financed capital projects and other capital fund-raising activities will generally follow the priorities determined by the strategic planning process rather than by donors. However, in certain instances, donor-specified projects that are consistent with the College’s mission and enhance the academic mission will be undertaken. Facilities Master Plan In December 2010, Oakton’s Board of Trustees approved a Comprehensive Five-Year Facilities Master Plan. The Five Year Master Plan guides the College in replacing aging facilities and improving the campuses to reflect trends in higher education. The core focus of the Master Plan is providing a campus environment to offer students opportunities for success and an improved student experience.

Enhanced facilities will provide a state of the art Science and Health Careers Building, flexible and spacious classrooms for all instructional disciplines, student gathering spaces for students to use in a variety of ways outside of the classroom and a single, centralized location to go to for enrollment, registration, advising and counseling and other key student services on the Des Plaines campus. Underlying these student focused improvements there is an updated, reliable infrastructure aspect of the Master Plan that is being implemented in a manner consistent with Oakton’s commitment to sustainability. Following is a brief summary of the key components of the project and timing.

Science and Health Careers Instructional Building - 2011 to 2015

The current Des Plaines campus science labs are 30 years old; they are showing their age and much wear and tear. Possibly even more important are external factors such as changes in pedagogy, changes in the fields of science and increases in enrollment that have compromised the effectiveness of science and health careers teaching spaces. The nature of health career programs and job trends are indicating continued demand for such programs result in the need to bring current spaces up to contemporary and emerging standards.

24

The main component of the College’s Master Plan is the construction of a new $42 million, state of the art Science and Health Careers (SHC) Building. The building will approximate 93,000 square feet with three stories and is raised above the flood hazard zone. Construction of the SHC Building began in calendar year 2012 with build-out of all three floors being substantially completed by the end of January 2014. In November 2013, it was discovered that the first floor’s concrete slab-on-grade on the west side of the building (an area of approximately 8,300 square feet of the building’s total square footage of approximately 93,000) had begun to settle resulting in numerous cracks and uneven surfaces. As a result, final build-out of Division 1 offices as well as the outfitting and installation of furniture throughout the building, were delayed.

The College assembled the building’s external design team (architectural firm and construction manager), College staff, and other outside consultants (structural and soil engineers) to evaluate the situation with the goal of enabling the design team to develop a long-term permanent fix. The projected cost of the remediation plan, scheduled for completion in late November 2014, is currently $4.1 million. The College has agreed to initially fund the costs of the remediation work without waiving any claims and has reserved its rights to pursue such claims against all potentially responsible entities for recovery of those costs. All parties have agreed to this process. By virtue of its excellent financial position and more than adequate reserves, the College is well positioned to manage cast flow for the remediation work.

The remediation plan is being implemented and substantial completion of remedial measures is scheduled for late November 2014. The first classes in the SHCC are scheduled for the Spring 2015 Semester. The Science and Health Careers Center will meet contemporary and emerging science and health career educational standards, and will house the College’s anatomy and physiology, biology, chemistry, earth science, medical laboratory technology, nursing, physics, and physical therapy assistant programs. The facility will feature sophisticated labs; flexible, light-filled classrooms; enhanced technology; and abundant lab preparation and storage space.

25

Enrollment Center at the Des Plaines Campus - 2013 to 2015

Every student participates in the enrollment process at Oakton. The Enrollment Center is the physical location that provides integrated student services for admission, advising and counseling, financial aid, registration, and records functions. The Enrollment Center will be a convenient and welcoming environment for prospective students, current students and community members. Providing a welcoming environment is necessary to creating positive first impressions that will enhance a student's early connections to the College.

This project has incorporated all enrollment functions now scattered across the Des Plaines building into a facility that is similar in organization and function to the successful Enrollment Center at the Ray Hartstein campus.

The Des Plaines Enrollment Center will be located near the busiest entrance to the College and has involved significant renovation of existing space. Construction for this project is complete and the Enrollment Center will be open to students for Spring 2015 registration.

Classrooms - 2011 to 2016

During development of the Master Plan, interviews with Faculty clearly identified improvement opportunities for classrooms on the Des Plaines campus. A significant majority of College credit instruction is offered in traditional face to face classroom settings and the College is committed to providing learning environments that serve the contemporary needs of student and teachers and will adapt for issues of the future. Space utilization analysis further confirmed the need for larger and differently configured classrooms. Issues identified through these interviews and Oakton's 2008 Classroom Task Force Report included:

• Appropriate space for number of students • Limited distance from seating to White Board/Projection Screens • Outdated/Undersized Furniture • Lighting • Technology

Approximately 50 classrooms at the Des Plaines campus have been remodeled in a phased approach through the summer of 2013. Technology innovations will be replicated in classrooms on the Ray Hartstein campus. In the final years of the current Master Plan, it is anticipated that 10-12 large classrooms will be created out of space vacated when the science and health careers academic programs are relocated to their new Instructional building.

Student Gathering Center – 2015 to 2016

Research shows that students who are comfortable in their collegiate environment are more successful. Numerous studies have further demonstrated that students engaged in the life of their College persist to graduation at higher rates. Building a sense of connection and community is challenging on a commuter campus such as Oakton where students lives are full of balancing the responsibilities of work, family and learning.

26

The objective of this project is to remodel existing space, bring student leadership offices and programs together in a common area, provide informal space for student gathering, adapt student space to technology needs and centralize the opportunity for student engagement in the heart of the Des Plaines campus.

The selected area, across Student Street from the current location of the cafeteria, provides significant continuous space related to Student Life. This space will provide the opportunity to centralize student-related activities that currently take place in a variety of locations. Additionally, this space possesses floor to ceiling windows overlooking Oakton's lake – a view that will further enhance students' positive image of the campus. This project is currently planned for 2015 to 2016.

Infrastructure Projects – 2011 to 2016

Infrastructure is a major component of the Master Plan. Projects will occur over the entire Five Year Master Plan time frame and will include a variety of site work, communications technology and equipment upgrades, as well as public and facilities space within the buildings of both the Des Plaines and Ray Hartstein campuses. The project list and individual budgets will continue to be refined as the project advances. Currently identified projects include:

• HVAC Systems (in progress) • Building Automation Systems (in progress) • Telephone System Conversion to VOIP (complete) • Ubiquitous WiFi (complete) and Cell Phone Access • Washrooms and Gym Locker Room • Parking Lot Improvements (in progress) • Remodeling Vacated Spaces (in planning phase) • Des Plaines Campus Grounds Sustainability Plan

A summary of projected investment and funding for the Facilities Master Plan is as follows:

Investment Science and Health Careers Instructional Building $39,000,000 Classroom Upgrades 3,500,000 Enrollment Center at Des Plaines Campus 3,400,000 Student Center/Gathering Space 1,900,000 Student Related Remodeling 3,700,000 Infrastructure Improvements 17,000,000 Total $68,500,000 Funding General Obligation Limited Bonds $45,500,000 Reserve/Net Assets 20,000,000 Student Reserve/Fees 3,000,000 Total $68,500,000

27

Funding and project budgeting support total projected costs of $68.5 million with the majority of the budget (76.6%) allocated to support student success.

Summary of Capital Expenditures Budgeted for Fiscal Year 2015 Following are the capital expenditures budgeted for fiscal year 2015 by fund:

Education Fund $156,915 Operations and Maintenance Fund 543,450 Operations and Maintenance (Restricted) Fund

15,899,145

Auxiliary Enterprises Fund 1,551,130 Restricted Purposes Fund 407,450

Total $18,558,090

Supplementary Capital Expenditure Data for Fiscal Year 2015 The following provides additional information about the capital expenditure plans for the fiscal year. Education Fund The most significant portion of capital expenditures ($121,500) in the Education Fund will provide for a digital polarimeter, simulation manikin, and Snap-On scanner for the Chemistry, Nursing, and Automotive Technology programs, respectively. Since these purchases are primarily for replacement purposes, they are not expected to significantly impact operating expenses in the future. Though not meeting the definition of Capital Expenditures due to individual purchase prices of less than $10,000, additional expenditures of $867,000 are budgeted in the Education Fund specifically to equip instructional labs in the SHC Building. Operations and Maintenance Fund The most significant portion of capital expenditures in the Operations and Maintenance Fund is for the acquisition of a four-wheeled utility vehicle for support of the SHC Building, industrial-sized drain snake, a/c unit for server rooms, carpet extractor, top dresser for athletic fields, loader with snow plow, replacement truck with salt spreader, two passenger vans, replacement of multiple rooftop compressors at the RHC campus ($65,000), and a patrol vehicle. These items, budgeted for $286,845, are intended for support of the SHC Building and to replace equipment for the existing physical plant.

28

Operations and Maintenance (Restricted) Fund Projects comprising capital expenditure from the Operations and Maintenance (Restricted) Fund are listed below for the Des Plaines (DP) or Ray Hartstein (RHC) campuses:

Description

Campus Amount

Facilities Master Plan Projects: Science and Health Careers Instructional Building DP $9,400,000 HVAC and Building Automation Systems DP/RHC 1,000,000 Enrollment Center DP 2,700,000 Parking Lot Improvements DP 1,500,000 Central Plant Improvements DP 245,000 Lavatory Remodeling – MP DP 500,000 Relocation of Displaced Administrative Offices DP 1,000,000 IT and Data Center Reconfiguration Analysis DP 250,000 Generator System Replacement DP 300,000

Total $16,895,000

Of the total capital expenditures above for the Operations and Maintenance (Restricted) Fund, approximately $996,000 is budgeted for furniture and equipment for the Enrollment Center and the SHC Building. This amount explains the discrepancy between the capital expenditures of $16,895,000 above and the amount of $15,899,145, on page 27. Auxiliary Enterprises Fund Significant capital expenditures for the Auxiliary Enterprises Fund will provide for Athletic Field improvements and renovation of athletic locker rooms. Other ancillary items are budgeted for replacement flooring for the Fitness Center, purchase of a Point of Sale (P.O.S) system for the bookstore (budgeted in FY14 but not purchased), and replacement of a grill and register system in the cafeteria. None of these expenditures are expected to impact future ongoing expenditures. Restricted Purposes Fund Capital expenditures budgeted in the Restricted Purposes Fund include potential grant expenditures for various projects. None of these monies will be expended unless the potential grants are received by Oakton. Grants which Oakton has applied for or anticipates applying for over the course of FY2015 include a healthcare-related grant from the State of Illinois Department of Labor and a federal grant related to the expansion of a nanotechnology instructional program and laboratory recently established on Oakton’s Ray Hartstein campus. Additionally Oakton is seeking funding for various green and/or energy efficient aspects of the Facilities Master Plan such as the use of permeable pavers in existing or new parking areas and various energy efficient heating and cooling equipment. The College regularly monitors granting agencies and opportunities to participate in such programs.

29

Impact of Master Plan on Expenditures on Current and Future Years Operating Budgets and Services Provided When the Science and Health Careers Instructional Building is occupied in FY2015, Oakton estimates the following increases to Operating Expenses:

• Housekeeping staff consisting of one head custodian and two full time custodians will be added. In fiscal year 2015 and future years, such new staff will increase current salary and benefits by $123,000. In addition, a Public Safety Officer, HVAC Mechanic and a General Maintenance employee will translate into an additional $64,000 for six months of FY15.

• The fiscal year 2015 budget includes $83,800 in supplies to initially stock the instructional laboratories and custodial maintenance supplies. Thereafter, such supplies and contractual services are expected to increase 20% for the expanded facilities.

• Originally, Oakton had estimated an increase of $160,000 in annual utility costs; this estimate was based upon current costs per square foot less anticipated savings for more eco-friendly and energy-efficient equipment. However, the latest engineering data about the HVAC project underway indicates that the savings associated with new infrastructure for the current Des Plaines campus facility will more than fully offset energy costs for the new Science and Health Careers Instructional Building resulting in a FY15 decrease of 2.4% for utility costs.

• Fiscal year 2015, insurance costs are anticipated to increase $20,000 per year attributable to the new building

The remodeled classrooms, Enrollment Center and Student Gathering Space are not expected to result in significant increases to operating expenses as these spaces represent the re-location and renovation of existing facilities. The current or future year impact on Operating Budgets for potential projects outlined in the Restricted Purposes Fund cannot be reasonably estimated until such grants are awarded and more specific information is available. The various infrastructure projects are anticipated to result in decreased operational and repair/maintenance costs. However, until further information is available about the specific equipment to be installed or services to be acquired, such decreases are not quantifiable. Non-Routine Capital Expenditures Other than the projects described in the Operations and Maintenance (Restricted) Fund and the Auxiliary Fund sections above, there are no other individually significant non-routine capital expenditures budgeted for FY2015. As previously acknowledged in the discussion about budgeted contingency monies, Oakton’s Des Plaines campus was seriously impacted by flooding in April of 2013. While minimal water entered the building, flooded parking lots, roads and surrounding areas prevented occupation of the building for more than a week. The College continues to assess infrastructure issues arising from the flood and preventive actions to minimize the impact of likely future flooding. The outcome of these assessments may result, subject to Board of Trustee approval, in the expenditure of additional capital monies in FY2015 and may be part of the FY2016 capital expenditure budget.

30


FINANCE AND ACCOUNTING

ORGANIZATION The College has a fully integrated financial structure with a Vice President for Business and Finance who also, at the discretion of the Board, serves as the Treasurer of the Board of Trustees. The Treasurer is the custodian of all funds and, by College policy, the Treasurer also has the authority to invest funds belonging to the College. Such investments are made with the guidance of state statutes and Board of Trustees policies on investments. The Treasurer makes monthly reports of the financial activities of the College and quarterly reports of investments to the Board of Trustees. A summary of financial activities is produced monthly and distributed to appropriate offices throughout the College. Other financial reports are produced on an as needed basis. Most areas of the College have access to electronic financial data as appropriate. The Business and Finance area is organized into an Office of the Vice President, Budget and Accounting Services, Business Services, Facilities and Public Safety. Budget and Accounting Services handles the preparation of the budget, preparation of the tax levy, development of strategic special reports, the instructional cost report, budget transfers, the Resource Allocation Management Plan (RAMP), and other activities relating to financial analysis and reporting. In addition, this office accounts for the receipt and disbursement of funds, the recording of the financial transactions of the College, provides financial guidance to the various elements of the College community and prepares the Comprehensive Annual Financial Report (CAFR). Business Services manages the functional auxiliary and procurement activities of the College. These activities include purchasing, shipping and receiving, printing services, food service, and the bookstore. Project and equipment bidding activities are managed through the Business Services office. Facilities includes the construction, maintenance, housekeeping, and groundskeeping functions for the College. Public Safety is responsible for campus safety, emergency planning, and various state and federal reports relating to campus crime. BASIS OF BUDGETING AND ACCOUNTING The College maintains accounting records using the accrual basis of accounting and economic resources measurement focus in accordance with General Accepted Accounting Principles (GAAP) and as accepted in the United States applicable to colleges and universities as well as those prescribed by the Illinois Community College Board (ICCB). Under the accrual basis, revenues are recognized when earned, and expenses are recorded when incurred. To insure consistency in financial reporting and economy of effort in financial operations and analysis, the College budgets and accounts for its financial operations on the same basis as the CAFR with a few exceptions. One exception is that capital asset purchases are budgeted as expenses and corresponding depreciation is not budgeted. For financial

31

reporting purposes, capital assets are defined by the College as assets with an initial unit cost of $10,000 or more and an estimated useful life in excess of two years. Such amounts are capitalized and depreciated using the straight-line method over the estimated useful life. Depreciation is recorded in the general ledger in the Investment in Plant Fund. A second exception is that internal revenue and expense charges are budgeted, reported in the general ledger, and reported in order to more accurately calculate instructional costs. In the CAFR, these revenues and expenses are eliminated in the Statement of Revenues, Expenses and Changes in Net Position. As part of its budgetary organization and controls, instituted to insure compliance with legal provisions embodied in the Annual Budget and Comprehensive Annual Financial Report approved by the Board of Trustees, the College has established the following fund groups to facilitate financial planning and reporting. Fund Group Fund Fund Code Current Unrestricted Education 01 Operations and Maintenance 02 Auxiliary Enterprises 05 Current Restricted Bond and Interest 04 Restricted Purpose 06 Working Cash 07 Audit 11 Liability, Settlement, and Protection 12 Staff Insurance Pool 17 Social Security/Medicare 18 Plant Operation and Maintenance (Restricted) 03 Investment in Plant (General Fixed Assets) 08 Debt Long-Term Obligations (General LT Debt) 09 Investment Investment Pool 19 Loan Loan 20 Agency Trust and Agency 10 (Fund numbers above 18 are not recognized by the ICCB.) Agency funds represent courtesy accounting services to other entities and are not assets of the College. All of the remaining funds are budgeted funds except Investment in Plant, Long Term Obligations, Staff Insurance Pool and Loan; all, however, are audited to insure compliance with budgetary controls and financial accountability. Investment in Plant serves only as a fund to record the value of plant assets and does not have either true revenues or expenditures. Long Term Obligations serves only as a fund to record

32

long term general obligation debt and does not have either true revenues or expenditures. The Staff Insurance Pool Fund tracks monies dedicated for a portion medical insurance costs of classified staff employees and is reported as part of the Education Fund in the College’s CAFR and for uniform financial reporting. The Loan Fund is a shadow fund and was established to segregate student loan programs from other restricted funds and is reported as a separate entity in the College’s CAFR. It is combined with the Restricted Purpose Fund for uniform financial reporting. The College also maintains two other shadow funds in order to simplify the bookkeeping process: Investment Pool Fund (IPF) and Social Security/Medicare Fund (SSM). The IPF records all of the transactions of the College’s investments and maintains its audit trail. At the end of the reporting period, all assets are reassigned to the other funds prorated by each fund’s share of the investment pool. The SSM records the College’s Social Security and Medicare tax levy and payments therefrom. Its purpose is to maintain separate accounting and net position balances for this tax levy distinct from the liability tax levy. Since it is not a fund defined by the ICCB, it is combined with the Liability, Settlement, and Protection Fund for budget and uniform financial reporting (UFRS) purposes. The level of budgetary control (the level at which expenditures cannot exceed the appropriated amount) is established for each individual fund rather than the fund group and within the fund by object and function (which is the legal budget organization). Managers at all levels are charged with continuously monitoring expenditures within their programs. While the exact legal limits on expenditures are established by the amounts in the legal budget (within the ten percent transfer limitation), the usual management practice is to monitor expenditures by program and by line item within the program. Minor unfavorable variances may be permitted on a case-by-case basis after appropriate review; significant variances require prior approval and may be compensated through budget transfers. The Budget Office monitors expenditures to insure compliance with the legal budget requirements and limitations and with College policy on fiscal management. Oakton defines a balanced budget as one in which budgeted revenues and fund transfers in are equal to or greater than the sum of budgeted expenditures and fund transfers out. The College also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at the end of each year.

PROPERTY TAXES The County Assessor is responsible for assessment of all taxable real property within Cook County, except for certain railroad property which is assessed directly by the state. Reassessment is conducted on a three year schedule established by the Assessor. The County Clerk computes the annual tax for each parcel of real property and prepares tax books used by the County Collector as the basis for issuing tax bills to all taxpayers in the county.

33

The County Assessor is responsible for appraising the value of all real property and railroad property not used for transportation purposes. Railroad property used for operations and pollution control equipment are assessed by the Illinois Department of Revenue. In Cook County, property has historically been classified for assessment into six categories with various percentages of fair market value as detailed below.

Property Class Assessment Percentage

Commercial 25% Industrial 25% Rental-Residential 16% Miscellaneous 10% Residential 10% Unimproved Land 10%

The Assessors' valuations are subject to appeal by the taxpayer and then to equalization by the Illinois Department of Revenue. The purpose of equalization is to develop a common level of assessments among counties to provide a uniform basis for the distribution of state aid to schools and other state grant-in-aid programs. Equalization is accomplished by means of multipliers assigned to each county. A multiplier is applied to all assessments in a county except farm assessments (which are based upon productivity and sales) and state assessed property. The objective of adjusting assessments in this manner is to produce state-wide conformity in property assessments. Property taxes are collected by the County Collector and are submitted to the County Treasurer, who remits to the governmental units their respective share of the collections. Taxes levied in one year (generally in December) become due and payable in two installments during the following year, generally on March 1st and on/about August 30th. The first installment is an estimated bill and is 55% (recently changed from one-half) of the prior year's tax bill. The second installment is based upon the current levy, assessment, equalization, certificate to limit levy, and other factors. Changes from the prior year will be reflected in the second installment bill. The tax levy submitted to the county must be approved by the Board of Trustees and reported to the County Clerk on or before the last Tuesday in December for the following collection year. The levy becomes a retroactive enforceable lien against the property as of January 1st of the year in which the levy is passed. Taxes may be levied for a variety of purposes or funds. The following table lists the tax categories the College has used and the present status of each. Data is from the Tax Year 2013 Agency Tax Rate Report, commonly termed the rate card, issued by the Office of the County Clerk. The 2013 report is the most recently available data; this report is typically received by the College in mid-September after all property valuations have been completed and final rates can be calculated.

34

Current Statutory Tax Category Rate Maximum Education Fund 0.1964 0.7500 Operation/Maintenance Fund 0.0419 0.1000 Audit Fund 0.0005 0.0050 Life Safety 0.0000 0.1000 Liability/Settlement/Protection Fund 0.0000* None Social Security/Medicare 0.0000* None Bond and Interest Fund 0.0171 ** Total 0.256

* Tax levy amount ($100) rounds to 0.0000. **The rate depends on the value of the bond issue; no maximums are imposed. The College issued General Obligation Limited Tax bonds in September 2011 and September 2014 and which are payable solely from the Debt Service Extension Base (“DSEB”) of Oakton’s District. The DSEB is an amount equal to that portion of the extension for the District for the 1994 levy year constituting an extension for payment of principal of and interest on bonds issued by the District without referendum increased each year commencing with the 2009 levy year, as described below under Property Tax Limitations. For the 2013 tax year, such amount is $3,224,047. The Current Rate in the table above is the levy rate from the 2013 tax levy. The Statutory Maximum is the highest tax rate permitted by state law. The term “None” means no maximum is imposed. Other applicable tax categories include Building Bonds, Teachers Orders, and Public Building Commission Operation and Maintenance Fund, none of which the College currently uses. PROPERTY TAX LIMITATIONS The Property Tax Extension Limitation Law (PTELL) requires that tax levy calculations be based on the prior year’s EAV and limits the increase in property tax extensions to the lesser of 5% or the percent increase in the national Consumer Price Index (CPI) for the prior year. For the 2013 levy year, on which the current budget is partly based, the change is measured from December 2011 to December 2012; this change was 1.7%, so the cap for the 2013 levy year is 1.7%. Therefore, for calculating and testing the 2013 aggregate tax levy, which was acted on by the Board of

35

Trustees in December 2013 and which will provide revenues for the second half of Fiscal Year 2014 and the first half of Fiscal Year 2015, it is necessary to use the EAV from 2012 and the CPI from December 2012 to verify compliance with applicable tax laws. The Office of the County Clerk, Cook County, automatically reduces the aggregate levy if it exceeds the PTELL; however, the College can specify how the reduction will be applied to the individual tax levies if other than a proportional basis reduction is appropriate; for example, the College can instruct the County Clerk, by resolution, to apply all of any reduction due to PTELL to a specific levy, say for the Education Fund, and leave the other levies intact. The general effect of PTELL is to limit revenue growth from property taxes to the rate of inflation plus an allowance for new property; however, taxpayers are still allowed to grant additional growth to a taxing district through referendum. The cap applies to the total, or aggregate, extension for a taxing district (excluding certain types of bonds, including Oakton’s Series 2011 and 2014 bonds), so an increase in the tax extension for one fund can be offset by a decrease in the extension for another fund because the cap applies to the total extension for the receiving taxing district, not to the individual levies or to the rates. Furthermore, the cap does not prevent or limit increases on individual tax bills, which can increase from other factors, such as new construction or additions to the property, for example. New additions to the tax base are exempted from the cap in the first year and become part of the base the following year. While this discussion provides a reasonable general overview of tax limitation, the law itself is somewhat more complex and should be consulted for a more detailed analysis; such analysis will also specify limitation exceptions and exclusions. TRUTH IN TAXATION The Cook County Truth in Taxation Law imposes procedural processes and limitations on the District's real estate taxing powers. The law requires that not less than twenty days prior to the adoption of its aggregate levy, the District shall determine the amounts of money estimated to be necessary to be raised by taxation for that year upon the taxable property in the District. If the estimated aggregate levy exceeds 105% of the prior year’s aggregate tax extension (not the prior year’s levy, which may be more or less than the tax extension), the District must publish notice and hold a public hearing on its intent to adopt such a levy. The notice, with specified statutory form, is required to be published not less than seven nor more than fourteen days prior to the public hearing date, which is set by statute as the first Friday in December for community colleges (other taxing districts are assigned different first in December days) if there is no regularly scheduled Board of Trustees meeting in December. Truth in taxation is independent of and unaffected by the property tax extension limitation laws.

36

DEBT MANAGEMENT Working Cash Bonds By statute the College is allowed to issue working cash bonds for up to 75% of operating funds property tax revenues and 75% of the Commercial Personal Property Replacement Tax allocation. The College’s only working cash bond issue was fully paid as of December 1, 1996. The College has no plans in fiscal year 2015 to issue future working cash bonds. General Obligation Limited Bonds Below are the bonds issued to finance the construction of the Science and Health Careers Instructional Building and other infrastructure improvements, pursuant to the College’s five-year Facilities Master Plan.

• Limited Tax Bonds, Series 2011 On August 24, 2011, the College issued General Obligation Limited Tax Bonds, Series 2011 in the amount of $27,245,000. The principal and interest payments began on June 1, 2012 with the final payment due December 1, 2024. The Bonds maturing on or after December 1, 2022 are subject to optional redemption prior to maturity. The principal and interest payments will be made annually and semiannually, respectively. The proceeds were used to pay the $30.1 million Debt Certificates, Series 2011 originally issued on June 1, 2011. The initial Debt Certificates were issued for the purpose of financing the construction of the Science and Health Careers Instructional Building pursuant to the College’s $68.5 million five-year Facilities Master Plan. Moody’s Investors Service, Inc. assigned a rating of Aaa to the Bonds.

• Limited Tax Bonds, Series 2014

On September 4, 2014, the College issued General Obligation Limited Tax Bonds, Series 2014 in the amount of $13,970,000. The principal and interest payments will begin on December 1, 2014 with the final payment due December 1, 2026. The Bonds maturing on or after December 1, 2025 are subject to optional redemption prior to maturity. The principal and interest payments will be made annually and semiannually, respectively. The proceeds were used to pay the $14.53 million Debt Certificates, Series 2014 originally issued on May 7, 2014. The initial Debt Certificates were issued for the purpose of financing the construction and remodeling of various campus buildings and infrastructure improvements pursuant to the College’s $68.5 million five-year Facilities Master Plan. Moody’s Investors Service, Inc. has assigned a rating of Aaa to the Bonds.

37

Debt Service By law the College is permitted to incur regular debt up to 2.875% of the district’s assessed valuation; at the present time that limit calculates to $543.6 million on an assessed valuation of $18.9 billion, leaving the College’s total current debt at 7.6% of limit.

Levy Year

Series 2011 Debt Service

Series 2014 Debt Service

Total Debt Service on

Non-Referendum

Bonds

Debt Service Extension

Base

Unused Debt Service

Extension Base

2013 3,075,435 - 3,075,435 3,224,031 148,596 2014 3,076,035 - 3,076,035 3,272,392 196,357 2015 3,073,235 195,525 3,268,760 3,272,392 3,632 2016 2,657,335 198,525 2,855,860 3,272,392 416,532 2017 2,657,035 587,525 3,244,560 3,272,392 27,832 2018 2,658,913 587,525 3,246,438 3,272,392 25,954 2019 2,655,913 587,525 3,243,438 3,272,392 28,954 2020 2,658,163 587,525 3,245,688 3,272,392 26,704 2021 2,659,913 587,525 3,247,438 3,272,392 24,954 2022 2,655,913 587,525 3,243,438 3,272,392 28,954 2023 1,643,663 587,525 2,231,188 3,272,392 1,041,204 2024 - 1,612,525 1,612,525 3,272,392 1,659,867 2025 - 3,271,525 3,271,525 3,272,392 867 2026 - 3,270,275 3,270,275 3,272,392 2,117 2027 - 3,272,275 3,272,275 3,272,392 117 2028 - 3,257,075 3,257,075 3,272,392 15,317 2029 - 1,295,200 1,295,200 3,272,392 1,977,192

38

The 2011 and 2014 Bonds constitute valid and legally binding general obligations of the District, and all taxable property in the District is subject to the levy of ad valorem taxes to repay the bonds without limitation as to rate. The amount of said taxes that will be extended to pay the Bonds is limited pursuant to the Property Tax Extension Limitation Law, as amended, 35 Illinois Compiled Statutes 200/18-185 et seq. (the “Limitation Law”). The Debt Reform Act provides that the Bonds are payable solely from the debt service extension base of the District (the “Base”), which is an amount equal to that portion of the extension for the District for the 1994 levy year constituting an extension for payment of principal of and interest on bonds issued by the District without referendum increased each year, commencing with the 2009 levy year, by the lesser of 5% or the percentage increase in the Consumer Price Index. The Limitation Law further provides that the annual amount of taxes to be extended to pay the Bonds and all other limited bonds hereafter issued by the District shall not exceed the Base. The Bonds constitute the only series of limited bonds of the District that are payable from the Base. The District is authorized to issue from time to time additional limited bonds payable from the Base, as permitted by law, and to determine the lien priority of payments to be made from the Base to pay the District’s limited bonds. In the Bond Resolution the District covenanted that no additional limited bonds may be issued with a lien status superior to the security of the Bonds and the District will not issue bonds the debt service of which, when aggregated with other bonds payable from the Base, would exceed the amount of the Base. Oakton adopted a Debt Management Policy in December 2010. This policy states that the College may incur debt to maintain and enhance the physical plant and infrastructure though capital projects with economic/useful lives of the assets of greater than five years. The amount of external debt that the College has at any given time will be a function of its ability to service that debt without diminishing the resources necessary for general operating expenses and other non-capital priorities and the desire to maintain a high-quality credit rating while sustaining overall financial health. The general principles the College will employ for the overall management of debt include the following:

• Long-term debt will not be used to finance current operations • The term of bonds issued will not be more than the economic/useful lives of the

underlying assets which they finance • The College will seek to maintain an acceptable balance between interest rate risk

and the long-term cost of capital • The College’s debt portfolio will be evaluated in the context of all of its assets and

liabilities. Diversification within the debt portfolio may be used to balance risk and liquidity across the College

• The College will consider the use of capital and operating leases, especially for the acquisition of equipment, to the extent such transactions are compatible with and help achieve its overall objectives concerning the use of debt

39

The College’s debt limitations will be evaluated and determined by the considerations of its legal authorizations and limitations and credit considerations including the College’s credit rating. The College seeks to maintain long-term bond ratings in the “investment grade” category. Established financial ratios are as follows: Debt Burden Indicators -

• Debt as a percentage of the fair market/equalized assessed value of taxable property in the College’s district. Target range: 0.15% to 0.4%

• Debt per capita. Target range: $100 to $250 • Debt per capital as a percentage of personal income per capita target range:

0.25% to 0.75% • Debt Applicable to Legal Debt Margin. Target range: 5% to 13.5%

Debt Service Indicators –

• Debt service as a percentage of (all) property tax revenue. Target range: 8% to 22%

• Debt Service as a percentage of budgeted operating expenditures. Target range: 5% to 20%

In evaluating its capacity for external debt, the College will also consider what revenue sources might be available specifically to pay debt service. Property tax levies and student activity, facility and other fees will be considered when planning for capital projects and debt associated with these income streams. In general, the College will consider the level of self-support and external revenue support associated with capital projects in assessing debt affordability within the College’s budget. Historically, the College’s practice has been to incur debt as little as possible. Prior to the General Obligation Limited Tax Bonds, Series 2011, the College had assumed debt only twice in its thirty-four year history. These two instances were the working cash bonds (referred to above) and a non-interest bearing installment contract purchase of the Niles East High School, both of which have long since been paid. All of the College’s other financial obligations have been met on a pay-as-you-go basis, and even the installment purchase could have been completed using fund balances for a single payment had there been a compelling financial advantage in doing so. Prior to the current Five Year Facilities Master Plan, capital expansion has been funded entirely from College reserves and, at times, with the assistance of state support. There is little capital vulnerability to the College’s financial health.

CASH MANAGEMENT For the purpose of overall investment of excess funds, the College is governed by the Illinois Public College Act (Chapter 110. of Illinois Compiled Statutes Act 805) and the Illinois Public Funds Investment Act (Chapter 30. of Illinois Compiled Statutes Act 235). The fiduciary responsibility for the investments is entrusted to the College Board of Trustees, which has delegated that function to the Treasurer of the College.

40

In keeping with existing Board policy, all investments of excess funds are to be made in a prudent, conservative, and secure manner and in accordance with the guidelines detailed in the College Investment Policy No. 3003. Designation of depositories of College funds is approved by the Board of Trustees. In FY 2014 the College’s investments from current funds generated $965,804, in investment income. The College’s average rate of return before fair value adjustments was 0.86% in fiscal year 2014. The following table summarizes the College’s investment position as of June 30, 2014.

Investments (000) % GNMA Bonds $ 3,294 2.9% Illinois Funds Money Market 22,141 19.2% Certificates of Deposit 16,900 14.7% Illinois Metropolitan Investment Fund 36,101 31.4% Treasury Notes 14,618 12.7% High Yield Money Market 22,011 19.1% Total $ 115,065 100%

Investment interest revenues are allocated from the College’s investment pool to the various funds based upon each fund’s contribution to the investment pool’s assets. INVESTMENT IN PLANT Investment in Plant consists of those assets of long-term character which are intended to continue to be held or used, such as land, buildings, improvements other than buildings, machinery, and equipment. A comparison of Investment in Plant values is presented in the following table. The amounts represent actual and estimated original costs of the assets. Depreciation is also recorded in the College’s Investment in Plant Fund. This is not a budgeted fund.

Accumulated Cost Depreciation Net in millions in millions in millions June 30, 2012 June 30, 2013

$89.5 $115.5

$33.4 $34.1

$56.1 $81.4

June 30, 2014 $142.3 $36.5 $105.8

41

The College uses the depreciation schedules below for assets acquired in FY2009 or later, amounts in parentheses for assets acquired prior to FY2009 : 1. Buildings 50 years (47 years) 2. Building improvements 8 years (7 years) 3. Land improvements 8 years (6 years) 4. Equipment 8 years (7 years) 5. Computer Technology 4 years (4 years) CONTINGENCY FUNDS Contingency funds are those expenditures budgeted but not assigned to any direct expenditure category to be used for emergencies or unforeseen expense requirements. A typical reason for accessing these monies might be to cover the cost of additional faculty salaries or laboratory supplies for an instructional discipline in which the enrollment has increased dramatically or for unanticipated repairs to College facilities. A portion of the contingency funds may be utilized to continue operating Adult Education and Literacy programs of the Alliance for Lifelong Learning in the event of State funding cuts. Contingency funds may not be expensed directly; they are used only by budget transfer to other expenditure categories. This insures that all expenditures are recorded directly in the programs to which they belong and avoids the later problem of having to separate salaries from supplies in order to make accurate budget analyses and financial comparisons. Because budget transfers change the original budgeted amount, budget to budget comparisons of contingency funds have no meaning once the budget transfers have been applied. For FY2015 the College has budgeted $1,090,000 in contingency for operating funds, $500,000 for the Operations and Maintenance (Restricted) Fund, $849,710 for the Auxiliary Enterprises Fund, and an additional $50,000 in contingency for the Liability, Protection, and Settlement Fund. INTERIM BORROWINGS No Tax Anticipation Warrants or Notes have ever been issued. FINANCIAL RESOURCE MANAGEMENT As indicated by the financial and statistical data, the College continues to meet its responsibilities for sound financial management. The total fund balance of all funds, including the Working Cash Fund, will show an estimated positive net balance of $86.7 million at the end of the fiscal year. Some individual funds are projected to show a decrease in fund balance, including the Operation and Maintenance Fund (Restricted). A detailed discussion of fund balance reductions is contained in the “Addendum to the President’s Letter.” Fund Balances Oakton adopted an Operating Funds Net Asset Policy in December 2010. This policy provides direction on management of the Net Assets (or Net Position) in the Education and the Operations and Maintenance Funds – referred to as the “Operating Funds.” The College intends to maintain a strong financial grounding and to mitigate current and

42

future risks and to ensure stable tax rates. The general principles the College will employ in the management of net position include:

• The use of Operating Funds net position to finance current operations will not be permitted except to cover extraordinary circumstances

• Bond ratings and credit implications will be considered • Targeted financial ratios will be utilized • Net position may be used to support long tem capital improvement plans and/or

initiatives in fulfillment of the College’s mission and strategic objectives • When both restricted and unrestricted resources are available for use, restricted

resources will be used first and then unrestricted resources • The College’s dependence on its property tax base and its vulnerability to the

state’s financial condition, student enrollment and its ability to charge tuition and fees will be considered

• Factors to be considered will include the relative significance and timing of both property taxes and state funding revenues to the Operating Funds. It is noted that property taxes are collected by Cook County (only) two times per year and there are current uncertainties surrounding both the timing and receipt of state monies

Established financial ratios are as follows:

• The Operating Funds will maintain unrestricted net position in an amount greater than or equal of 50% of annual budgeted Operating Fund expenditures plus anticipated state apportionment funding. Such amount approximates 200 days of working capital and shall take the form of cash and short-term investments

• The College will strive to maintain, restricted and unrestricted net position in the amount of $35 million for working cash in recognition of the potential for delays and/or non receipt of state funding for recurring programs such as scholarships, credit hour reimbursement and adult education. This amount would also provide resources in the event of a natural disaster or operating emergency.

The College may use net surpluses as follows:

• Maintain net position in an amount projected necessary to maintain a strong financial grounding and to provide for operating contingencies that might arise from unforeseen circumstances

• Fund capital improvement projects • Reduce (any) outstanding debt, to the extent permitted by underlying debt

agreements Should unrestricted net position of the Operating Funds fall below these targeted financial ratios, the Vice President of Business and Finance must present to the Board for approval to adopt a plan to restore this balance. The College will periodically assess the allocation of (any) net surplus or revenues over expenditures and interfund transfers between additions to net position and designation for specified purposes such as capital improvements.

43

Strategic Plan In April of 2012 Oakton Community College’s Board of Trustees approved a new strategic plan for 2013-2017. The new five year strategic plan called “Connecting What Matters” includes three overarching goals and twenty-one objectives which are necessarily broad and comprehensive, but also include a range of measurable outcomes. Overall, the College shows a very healthy positive net balance for all funds, in spite of extraordinary expenditures for recent and future new construction, remodeling necessary to meet the educational needs of the district, and a substantial commitment to an enhanced information technology infrastructure. RISK MANAGEMENT The College participates in the Illinois Community College Risk Management Consortium (Consortium) which was established in 1981 by several Chicago area community colleges as a means of reducing the cost of general liability insurance. The Consortium is a public entity risk pool currently operating as a common risk management and insurance program for the member colleges. The main purpose of the Consortium is to jointly self-insure certain risks up to an agreed upon retention limit and to obtain excess catastrophic coverage and aggregate stop-loss reinsurance over the selected retention limit. Excess coverage, including underlying policies, includes $26 million for general liability, student practices liability, auto liability, campus security liability, educators’ legal liability, employee benefits liability; $21.7 million for workers’ compensation; $22 million for foreign liability; $250,000 for crisis response; $100 million for boiler and machinery; $1 million for identity protection and crime; and $301 million for property. No settlement has exceeded coverage since establishment of the Consortium. In Fiscal Years 2014 and 2013 the College paid $677,105 and $721,874, respectively, to the Consortium for property, liability and worker's compensation protection and received $73,859 and $30,842, respectively, in dividends due to favorable loss experience in prior years. Since the Consortium requests initial payments to cover substantially any losses to be incurred for that policy year, the College anticipates no future liabilities for incurred losses. In July of 2011 the College joined the Community College Health Consortium. (CCHC) The members include the College of DuPage, Moraine Valley Community College, and Oakton. These Colleges joined together in an effort to reduce health insurance costs through reduced administrative costs and stop loss coverage. Each College is allowed its own individual plan design with individual premiums based on their design and experience. The CCHC covers about 2,000 employees and claims in area of $30,000, 000 for its current members. Oakton has about 450 employees covered and has budgeted approximately $6.9 million for this expenditure in FY2015. Gallagher Benefit Services (GBS) is the CCHC’s broker and consultant. The CCHC hopes to leverage GBS’ expertise in reducing overall health insurance costs especially in the area of prescription drugs. Blue Cross and Blue Shield is the insurance provider and third party administrator for the CCHC. The CCHC hopes to enroll additional community colleges, increasing the size of the pool and further reducing costs.

44

OTHER FINANCIAL INFORMATION Management of the College is responsible for establishing and maintaining internal controls designed to protect the assets of the College, prevent loss from theft or misuse and to provide that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. FINANCIAL REPORTING State statutes require an annual audit of the College’s financial operations by independent certified public accountants. The accounting firm of Sikich LLP, Certified Public Accountants, has been selected for this purpose by the College’s Board of Trustees. The auditors’ report on the most recent financial statements and schedules is unmodified and is included in the financial section of the Comprehensive Annual Financial Report for the year ending June 30, 2014. Additionally, each college is required to publish a financial statement, in a form prescribed by the Illinois Community College Board, in a newspaper of general circulation in the district prior to November 15 of each year. This statement contains pertinent financial data, including tax rates and extensions, assessed valuation, bonded debt, and summaries of revenues and expenditures supported by tax funds. As an additional service to the district residents, the College publishes the presentation budget (this document). It includes financial summaries, comparative analyses, and statistical information relating to the College and its educational and financial operations. The College also publishes the President’s Report to the Community, which contains a summary of the College operations and activities during the past year. It contains, also, limited summary financial information. This report most closely corresponds to a corporate annual report with a significant emphasis on financial activities. The ICCB also requires from all colleges electronic submission of financial data at the end of the fall semester, at the first close of the fiscal year data, and when final audited financial data are available. This information, a response to statutory requirement, provides on-line comparative data to the colleges and assists the ICCB in budget development and in responding to legislative inquiries. Internally the College makes available on-line monthly financial information summaries in a variety of standard and custom formats to assist administrators in managing their programs. EMPLOYEE RELATIONS The District has three union affiliations with four bargaining units. The Illinois Education Association - National Education Association (IEA-NEA) represents the full-time faculty with a four year contract that expires in August, 2016. The IEA-NEA also represents the adjunct faculty who teach six credit hours or more with a contract which expires in August, 2017. The Illinois Federation of Teachers - American Federation of

45

Teachers (IFT-AFT) represents the classified staff bargaining unit with a contract that expires December 31, 2016. The public safety officers are represented by the Fraternal Order of Police with a contract which expires in June, 2016. EDUCATIONAL FOUNDATION The Oakton Community College Educational Foundation is a legally separate, private not-for-profit 501(c)3 organization that is a component unit of the College. The Foundation acts primarily as a fund-raising organization to supplement the resources that are available to the College in support of its programs. The 24-member board of the Foundation is self-perpetuating and consists of friends of the College. Although the College does not control the timing or amount of receipts from the Foundation, the majority of resources, or income thereon, which the Foundation holds and invests are restricted to the activities of the College by the donors. The restricted resources held by the Foundation can only be used by, or for the benefit of, the College. The Foundation is reported in separate financial statements because of the difference in its reporting model.

The Foundation establishes its own budget and expenditure priorities independently of the College. As a courtesy the College does provide some financial support, services and assistance to the Foundation.

46


Budget Process

Budget Formulation The budgeting process is centered in the College’s strategic plan. Connecting What Matters, Oakton’s strategic plan for 2013 – 2017, provides a framework for the Board of Trustees and the President’s Council to make recommendations for the future of the College, its goals, and directions. These goals and priorities are set forth in the “Goals and Objectives” section of this Budget document, Program Review reports, the Facilities Master Plan and the Resource Allocation Management Plan (RAMP) the College prepares and sends to the Illinois Community College Board (ICCB) on an annual basis. Program Review, a process of self-evaluation, critically analyzes all of the programs of the College on a cyclical basis. The Five Year Facilities Master Plan was approved by the Board of Trustees in December 2010 and is discussed in the Capital Expenditures section of this document. RAMP is the basic planning document for capital expansion and is used by the ICCB for developing capital requests as part of the ICCB budget request to the Illinois Board of Higher Education and the state for funding. Long- range planning, however, is a continuous process that occurs at the various management levels of the College and involves administrators, faculty, and staff in a coordinated effort to constantly improve the College’s ability to best serve our students and the residents of the District. Ultimately the Board of Trustees, operating through the President’s Council, establishes the final guidelines necessary for preparing the budget. The Vice President for Business and Finance takes responsibility for insuring that the process is completed properly and in a timely manner. Responsibility for preparing the final budget document lies with the Budget Office, an office of the Vice President for Business and Finance. In addition to preparing financial portions of state-required reports, the instructional cost report, tax levy documents and resolutions for Board approval, and other budget-related financial and credit hour grant documents, the Budget Office serves as a focal point for activities related to establishing the new budget for the coming fiscal year. These activities include coordinating controllable expense requests; publishing various budget documents; performing the financial studies necessary to determine appropriate non-controllable expense allocations; and compiling all of the disparate parts into a unified budget document for presentation to the Board of Trustees, the College, and the residents of the District. The process begins in December with a memo to all administrators documenting the schedule and due dates for budget submissions. The President's Council, in conjunction with the other administrators and at the direction of the Board of Trustees, establishes the general allocations of available resources and the general expenditure determinations necessary to meet the specific educational goals of the College.

47

The Budget Office coordinates the activities of the schedule and prepares a preliminary budget which the Vice President for Business and Finance presents to the Board for review, comments, and suggestions. Final changes, revisions, and corrections are then made to the budget document. At least 30 days before the final budget is approved by the Board, the Budget Office publishes the legal budget and makes the document available for public inspection, as required by state law. Oakton uses a modified centralized form of budget procedure. Some portions of the budget are predetermined and other portions are set by the responsible administrator in consultation with his/her faculty and staff, all within certain guidelines established by the Board of Trustees and the President’s Council. (For example, general supplies may not increase unless compensated by a decrease in some other controllable area.) This procedure enables the College to monitor and direct the budget process while still allowing administrators the control and authority they need to best develop their programs and functions in a manner consistent with the overall mission and needs of the College. All revenue projections derive from studies conducted by the Budget Office and are based upon enrollment projections, state credit hour grant funding levels, tax levies, anticipated grant awards, and other applicable information. Expenses are finalized in several different ways. Certain expenses are considered “controllable,” that is, within limits, each administrator has the ability to control the level of expenditures, such as contractual services, printing costs, and travel. “Non-controllable” expenditures, not generally subject to unilateral change by the administrator, include salaries (which are set contractually), benefits costs, and other charges established on a pro-rata or College-wide basis. Controllable expenditures are integrated into the budget through the balance-of-budget requests submitted by the area administrators after review by the appropriate vice president. Non-controllable expenditures are integrated into the budget based upon financial and statistical studies that generally conform to previously defined limits and guidelines. Four categories of expenditures are handled separately: personnel, remodeling, special and capital equipment requests, and special funding initiatives. Each of these general areas is budgeted individually and then integrated into the final budget document. The process is best illustrated by examining the procedures used for determining special and capital equipment expenditure levels. Each administrator may submit requests for special and capital equipment, defined loosely as non-recurring items that normally would not be procured through the regular operating supplies and materials budget category. Although the capitalization threshold for the College is $10,000, no minimum dollar amount is prescribed for these requests, and budgeted amounts are not carried over from year to year. (The word “capital” is used in its generic sense here.) These items might include computers or printers, replacement equipment for labs, or new College vehicles or tractors.

48

Administrators submit their requests electronically to the Budget Office, which compiles a master request list. The President’s Council, in collaborating with the other administrators, approves final equipment determinations. The Budget Office prepares a final equipment request list which serves as the basis for individual equipment purchases in the new fiscal year and as authority for integrating capital equipment funds into the final budget. The process requires difficult choices, as resources are limited and cannot satisfy every program’s needs and desires. Staffing and special funding initiative requests follow a similar process. The Director of Facilities evaluates specific remodeling requests for costing, feasibility, and over-all compatibility with the College’s general and continuing maintenance program prior to being integrated into the budget. Note that approved staffing requests affect future budgets; equipment and remodeling requests apply only to the current budget determinations and revert to zero for the next budget cycle. Whether a special funding initiative is carried forward to future years or reverts to zero for the next budget cycle depends on the nature and status of each individual initiative. As a final step in the process, the Budget Office distributes the proposed legal budget to the Board of Trustees, and places the document on public display in the office of the Vice President for Business and Finance. Once approved by the Board, the legal budget appears on the College’s Web site. Copies of the legal budget also are sent to the ICCB and the county clerk’s office to conform with state law. Public Participation As a public entity, substantially financed by funds from taxpayers, the College has a responsibility to communicate with the residents of the District. Consequently, Oakton publishes financial documents such as the Comprehensive Annual Financial Report and the Annual Budget and announces financial events and pending decisions of public importance in local area newspapers. Additionally, Oakton publishes an annual President’s Report to the Community providing significant qualitative and quantitative information about the College. The College welcomes public participation at meetings of the Board of Trustees. At least 30 days prior to the time the Board takes final approval action on the budget, the College places an announcement in local newspapers serving the District, noting the preparation of the legal budget and setting the time and location of the scheduled meeting to consider its approval. Residents are always welcome to comment on financial matters by speaking at Board meetings or by contacting the members of the Board. During the approval process at the Board meeting, time is allotted for public comment and discussion concerning the proposed budget. Oakton officials are occasionally asked to address various groups and meetings in the District on matters which concern the College’s financial plans and the impact of those plans on local residents and businesses. This open communication assures that interested

49

District residents are kept informed about the College’s progress in meeting its educational and financial goals and at the same time makes the College aware of the needs and concerns of District residents. Important financial reports and documents such as the Comprehensive Annual Financial Report, Presentation Budget, President’s Report to the Community, etc. are available at any time on the College’s website. Budget Modification Subsequent to the adoption of the budget for a particular fiscal year, it may be necessary to permit transfers of budget amounts between object and functional designations within a fund. For example, faculty salaries are budgeted based in large part upon previous teaching loads and upon projected program enrollments. If a program suddenly becomes more popular and enrollment increases substantially, more faculty resources will be necessary to cover the increased loads. Excess funds in one program may be reassigned to cover the shortfall in the other program. As another example, if labor negotiations are not finished and salary issues are uncertain, careful management dictates that a reserve be set aside to cover possible salary increases, usually budgeted in some type of contingency account. When the actual raises have been determined, the contingency funds can be transferred to the appropriate salary accounts. Accounting controls depend, in part, upon monitoring spending levels against budget levels. Monies budgeted for one purpose should not be spent for another; that is to say, faculty should not be paid from equipment accounts. Spending in some accounts may stop unnecessarily only because funds are not budgeted sufficiently in those accounts or because extenuating circumstances arise, such as the need to replace a major piece of vital equipment. Auditing the status of the funds is also easier if budget amounts have been amended to reflect appropriate levels of spending authorization. Procedurally, the budget, once published in the form of the legal budget, may not be changed until acted upon by the Board of Trustees. At the time of initial approval, and at any time thereafter, the Board may make changes to the legal budget by Board resolution within the limits established by law. Some changes are initiated automatically, such as those which transfer funds between salary line items to account for contract approvals. The Budget Office prepares these routine adjustments and writes the resolution upon which the Board acts. The non-routine changes must originate from an administrator who sends a budget transfer request to the Budget Office through the area Vice President. The request includes the amounts to be transferred and the specific accounts to be debited and credited together with a rationale for the transfer. After administrative approval, the request is included in a resolution to the Board. After the resolution has been passed, the budget amounts are adjusted accordingly. State law, as an additional control on financial matters, places restrictions on budget transfers. The law recognizes legal and non-legal types of transfers. (The word “legal” as used here refers to a transfer which would make a change to the legal budget.) Non-legal,

50

or internal, transfers are those made within the same function and within the same object group. There is no limit on the number or amount of non-legal transfers which may be made, and non-legal transfers may be made without formal Board approval by resolution. An example of a non-legal transfer would be transferring funds from the staff salary account to the part-time faculty salary account in the biology program. Legal transfers, however, are transfers between functions and/or object groups, require formal Board approval, and are limited by law to not more than 10 percent of the fund total. An example of a legal transfer would be moving funds from the Art program faculty salary account to the Student Recruitment and Outreach capital equipment account. A cumulative record of all legal transfers is included in a summary section of each budget transfer resolution acted upon by the Board of Trustees to insure appropriate compliance. The following chart details current legal transfer limits for each of the funds. FY 2015

Total Budgeted

Expenditures

Legal

Transfer Limit (10%)

Fund Current – Unrestricted Education $60,185,615 $6,018,561 Operations and Maintenance 9,142,325 914,232 Auxiliary Enterprises 18,815,320 1,881,532 Current - Restricted Bond and Interest $18,397,035 $1,839,703 Liability, Settlement, Protection 1,383,460 138,346 Audit 99,700 9,970 Working Cash 0 0 Restricted Purposes $32,276,480 $3,227,648 Plant Operations and Maintenance - Restricted $ 19,244,560 $ 1,924,456 The law places an additional restriction on transfers between funds after the Board of Trustees has approved the legal budget. Such transfers are prohibited unless the College undertakes the entire budget approval process again, including the publication of a public notice, a public hearing, and Board of Trustees approval by resolution. Typical General Schedule – Significant Budget Events The following details a typical generalized schedule of the budgeting process. Specific action dates may change from year to year and therefore are not included.

51

Publication of the budget schedule to all administratorsAdoption of tax levy by Board of Trustees

Submission of remodeling requests

Submission of Special Funding Initiative requestsDistribution of preliminary capital equipment request lists

Approval of staffing requestsDistribution of preliminary Special Funding Initiative request listsReview of budget draft by President’s Council

Approval of Special Funding Initiative requestsIncorporation of remodeling requestsPublication of public notice of meeting to address budgetPublication of legal budget for public participationDistribution of tentative legal/line item budget

Final publication of legal budget prior to Board actionApproval of legal budget by Board of Trustees

Budget Schedule

Submission of balance of budget worksheets

Approval of final capital equipment requests

Public hearing on budget

Publication of presentation budget

October

November

Preliminary estimate of tax levy by Board of Trustees

Submission of approved legal budget to ICCB

August

September

October

Revision/updating of Budget Request Procedures book

Distribution of balance of budget data to administrators

Submission of capital equipment requests

Submission of requests for additional/revised staffing

February

March

April

May

June

July

December

January

52

Use and Tracking While the presentation budget is primarily a communications document, sharing the College’s financial plans to the residents of the District in a reasonably compact, but informative format, the line item budget document is primarily a controlling document. By comparing the line item budget with corresponding entries in the periodic accounting summaries, responsible officials can monitor the progress of expenditures in their areas and make adjustments, such as curtailing expenditures or requesting budget transfers, as necessary. Being able to track spending rates and levels through the line item budget gives administrators better control over their expenditures and programs. Oakton has consistently been awarded the Government Finance Officers Association Distinguished Presentation Award.

53


Notes on Preparation and Conventions Used in the Budget

Mathematical Conventions

Except as otherwise noted in the documents, dollar amounts are rounded off to the nearest dollar using standard mathematical rounding techniques. As a matter of style, dollar signs ($) are not used to indicate dollar amounts unless their exclusion would cause confusion. Negative numbers are shown in two ways: the accounting convention of indicating negative values with a parenthesis, such as (1,000), and the mathematical convention of using a negative sign, such as -1,000. Generally, parentheses are used in tables, while negative signs are used in charts and for percentages. Both forms are equivalent. Percentages are indicated with the percent sign (%). Percentages are rounded off to two decimal places using standard mathematical rounding techniques. All calculations involving percentages are carried out to sixteen decimal places before rounding. In a few cases, it may be observed that the printed percentages will add up to slightly more or less than 100.00% (99.99% or 100.01%, for example). This phenomenon is a quirk of rounding, not of mathematical inaccuracy, and no attempt has been made to adjust rounded percentages. It will appear most frequently in charts and graphs and may safely be ignored. Another convention with percentages involves the percent increase or decrease of a category. By mathematical definition the percent increase from $0.00 to any amount not equal to $0.00 is undefined (i.e., from $0.00 to $10,000). This percent increase will be arbitrarily shown as 100.00%. Decreases are shown as negative increases (i.e., -45.00%). Thus, a decrease in funds of .94% would be shown as -0.94%. All percentages less than 1.00% are shown with a leading zero.

Preparation/Publishing Although occasionally source documents may be indicated for emphasis on a particular page or chart, unless otherwise noted to the contrary, all information has been developed from College records, particularly past year audit reports and current and past year budget documents. The notation "ICCB Data and Characteristics" used as a source indicator refers to Data and Characteristics of the Illinois Public Community College System, published annually by the Illinois Community College Board.

54

The phrase “local area average” used in the comparative charts and graphs refers to the local community colleges which Oakton considers to be its geographical peers: 1. DuPage 6. Morton 2. Elgin 7. Oakton 3. Harper 8. Prairie State 4. Lake County 9. South Suburban 5. Moraine Valley 10. Triton The College has decided that the goal of clear communication and readability is of sufficient importance that a standard page would be an unacceptable limitation. Therefore, instead of forcing data, tables, and charts onto a portrait-oriented page just for the sake of consistency, it was decided to let the page fit the data to be presented in order to produce the clearest and most readable document. Unless otherwise indicated, all comparative data used in this presentation should be considered the latest available data. The budget was prepared by the Office of the Vice President for Business and Finance, Oakton Community College. The responsible administrator is Mr. Robert J. Nowak, Vice President for Business and Finance with Karen Epps, Director of Budget and Accounting Services and Sandy Huffman, Budget Office Assistant. We welcome your ideas on how we may improve our presentation of financial information to the community; please address your comments and suggestions to Mr. Nowak.

BUDGET SECTION

57

Local Government

44.84%

State Government 20.87%

Federal Government 9.01%

Student Tuition & Fees 17.80%

Other Sources 7.48%

Salaries 35.23%

Employee Benefits 18.61%

Contractual Services 5.18%

General Materials & Supplies

7.13% Conferences &

Meetings 0.47%

Fixed Charges 11.36%

Utilities - 1.16%

Capital Outlay - 11.14%

Other - 8.23%

Contingency 1.49%

Fiscal Year 2015 Expenditures

Fiscal Year 2015 Revenues


Comparison of Revenues and Expenditures

All Funds

58

FY 14 toPreliminary FY 15

FY 13 FY 14 FY 14 (1) FY 15 BudgetActuals Budget Actuals Budget % Change

Current Unrestricted Funds GroupEducation Fund

Total Revenues 62,015,770 61,471,620 63,339,685 64,228,560 4.48%Total Expenditures 53,967,690 60,157,910 54,247,379 60,185,615 0.05%Net Transfer In (Out) (9,632,115) (5,222,000) (5,222,000) (7,317,000) 40.12%

Operations and Maintenance FundTotal Revenues 7,864,175 7,936,380 7,841,396 7,916,380 -0.25%Total Expenditures 7,356,518 8,135,090 7,416,361 9,142,325 12.38%Net Transfer In (Out) 41,115 (3,000,000) (3,000,000) 0 -100.00%

Auxiliary Enterprises FundTotal Revenues 13,089,084 13,036,825 12,522,542 12,727,260 -2.37%Total Expenditures 12,988,899 16,835,027 14,016,782 18,815,320 11.76%Net Transfer In (Out) 572,000 284,000 284,000 946,000 233.10%

Current Restricted Funds GroupLiability, Protection, and Settlement Fund

Total Revenues (10,474) 9,300 (15,493) 9,200 -1.08%Total Expenditures 1,323,997 1,381,699 1,210,073 1,383,460 0.13%Net Transfer In (Out) 605,000 1,180,000 1,180,000 1,450,000 22.88%

Audit FundTotal Revenues 46,499 89,255 88,339 101,940 14.21%Total Expenditures 86,147 110,000 97,024 99,700 -9.36%

Bond and Interest FundTotal Revenues 3,136,922 14,369,835 3,222,522 18,970,035 32.01%Total Expenditures 2,785,735 13,833,150 3,047,966 18,397,035 32.99%

Working Cash FundTotal Revenues 36,000 32,000 32,000 29,000 -9.38%Total Expenditures 0 0 0 0 0.00%Net Transfer In (Out) (36,000) (32,000) (32,000) (29,000) -9.38%

Restricted Purposes FundTotal Revenues 29,352,549 39,394,000 29,752,175 39,285,480 -0.28%Total Expenditures 29,545,588 39,384,000 29,821,285 39,276,480 -0.27%Net Transfer In (Out) 100,000 (360,000) (360,000) 100,000 >100.00%

Plant Funds GroupOperation and Maintenance Fund (Restricted)

Total Revenues 615,459 11,213,120 15,125,449 1,680,050 -85.02%Total Expenditures 27,208,752 46,157,849 26,611,486 19,244,560 -58.31%Net Transfer In (Out) 8,350,000 7,150,000 7,150,000 4,850,000 -32.17%

Fund Group Summary

Total Revenues - All Funds 116,145,984 147,552,335 131,908,615 144,947,905 -1.77%Total Expenditures - All Funds 135,263,326 185,994,725 136,468,356 166,544,495 -10.46%(1) Amounts are reported from the preliminary year end close and do not reflect any audit adjustments that may arise.


Summary of Revenues and Expenditures - All Fund Groups The table below summarizes the revenues and expenditures for all budgeted funds. The table also contains the budgeted and actual amounts from previous years to allow for comparison of revenue and expenditure levels over time.

59

Operation/Maintenance 5.46%

Education 44.31%

Auxiliary Enterprise 8.78%

Audit 0.07%

Liability 0.01%

Restricted Purposes 27.10%

O&M (Restricted)

1.16%

Education 36.14%

Operation/Maintenance 5.49%

Auxiliary Enterprise

11.30%

Audit 0.06%

Liability Restricted Purpose 23.58%

O&M (Restricted)

11.55%



All Funds by Fund

Fiscal Year 2015 Revenues

Fiscal Year 2015 Expenditures

Working Cash 0.02%

Bond & Interest 11.05%

Bond & Interest 13.09%

PRESIDENT

MARGARET B. LEE

VICE PRESIDENTFOR

TECHNOLOGY ANDDATA ANALYTICS

BONNIE LUCAS

VICE PRESIDENTFOR

STUDENTAFFAIRS

JOIANNE SMITH

VICE PRESIDENTFOR

BUSINESSAND

FINANCE

ROBERT NOWAK

VICE PRESIDENTFOR

ACADEMICAFFAIRS

THOMAS HAMEL60

EXECUTIVEDIRECTOR

MUM MARTENS

FORHUMAN

RESOURCES

66


Notes

OAKTON COMMUNITY COLLEGE - START HERE

PreliminaryFY 13 FY 14 FY 14 (1) FY 15Actual Budget Actual Budget

Local Government 35,880,817 36,332,940 37,012,821 37,929,135State Government 4,648,800 3,673,165 4,980,542 6,676,800Federal Government 0 0 0 0

Student Tuition and Fees(2) 21,399,980 21,119,415 21,056,169 22,200,025Other Sources 86,173 346,100 290,153 422,600

TOTAL REVENUES: 62,015,770 61,471,620 63,339,685 67,228,560

Program % of FY 15FY 13 FY 14 FY 14 (1) FY 15 Personnel Total Other TotalActual Budget Actual Budget Costs Costs Costs Budget

Services to StudentsBaccalaureate/Instruction 22,020,095 23,138,452 22,101,700 23,994,198 21,546,348 89.80% 2,447,850 23,994,198Vocational/Instruction 10,457,321 11,252,895 10,552,879 10,646,745 8,813,345 82.78% 1,833,400 10,646,745Instructional Support/Admin. 14,658,448 17,173,540 15,039,151 17,102,032 13,355,467 78.09% 3,746,565 17,102,032

Total Services to Students: 47,135,864 51,564,887 47,693,730 51,742,975 43,715,160 84.49% 8,027,815 51,742,975

Public Service 756,359 767,612 671,482 741,090 471,025 63.56% 270,065 741,090

Other Programs 6,075,467 7,825,411 5,882,167 7,701,550 4,718,345 61.26% 2,983,205 7,701,550

TOTAL EXPENDITURES: 53,967,690 60,157,910 54,247,379 60,185,615 48,904,530 81.26% 11,281,085 60,185,615

Transfers In (Out) (9,632,115) (5,222,000) (5,222,000) (7,317,000)

(1) Amounts are reported from the preliminary year end close and do not reflectany audit adjustments that may arise.

(2) Historically 24-25% of such amounts are paid by scholarship allowances.

68

OAKTON COMMUNITY COLLEGE Comparison of Revenues and Expenditures

Education Fund The following table compares Education Fund revenues by source and

expenditures by program. Baccalaureate

Programs 39.87%

Vocational Programs 17.69%

Instructional Support/Admin

28.41%

OTHER 14.03%

SERVICES TO STUDENTS 85.97%

69


FY 13 FY 14 FY 14 (1) FY 15 BudgetActual Budget Actual Budget % Chg

REVENUESLocal Government (Property Taxes) 7,626,629 7,821,380 7,772,649 7,821,380 0.00%State Government 42,807 0 0 0 0.00%Other Sources (Investment Income) 194,739 115,000 68,747 95,000 -17.39%

TOTALS: 7,864,175 7,936,380 7,841,396 7,916,380 -0.25%

EXPENDITURES:Operations and Maintenance of PlantSalaries 3,911,805 4,359,015 3,811,378 4,635,915 6.35%Employee Benefits 1,073,199 1,131,625 1,127,950 1,038,700 -8.21%Contractual Services 545,199 477,555 727,486 570,090 19.38%General Materials and Supplies 666,134 486,590 496,635 696,400 43.12%Conference and Meeting Expenses 6,645 18,725 6,770 20,725 10.68%Fixed Charges (9,468) 14,390 (18,392) 16,460 14.38%Utilities 1,017,633 1,126,850 1,234,653 1,241,285 10.16%Capital Outlay 141,934 138,500 24,996 543,450 >100.00%Other 3,437 6,840 4,885 4,300 -37.13%Contingency 0 375,000 0 375,000 0.00%

TOTALS: 7,356,518 8,135,090 7,416,361 9,142,325 12.38%

NET TRANSFER: In (Out) 41,115 (3,000,000) (3,000,000) 0 >100.00%



Comparison of Revenues and Expenditures Operations and Maintenance Fund

The Operation and Maintenance Fund records the revenues and expenditures for the improvement, minor remodeling, maintenance, and repair of buildings and properties, including fixtures and interior decoration, payment of utilities costs, and other related expenditures, such as grounds maintenance and snow removal. These activities include facility and construction planning support consistent with educational plans and objectives.

Salaries 50.71%

Benefits - 11.36%

Contractual Services - 6.23%

Supplies - 7.62%

Meetings - 0.23%

Utilities 13.58% Capital

5.94%

Contingency 4.10%

FY 15 Budgeted Expenditures

Fixed Charges - 0.18%

Other 0.05%

70



REVENUESLocal Government 111,568 100,000 114,841 100,000 0.00%State Government 977,985 483,195 676,061 426,260 -11.78%Student Tuition and Fees 2,864,727 2,853,520 2,735,421 3,204,805 12.31%Sales Service Fees 8,914,552 9,261,235 8,685,984 8,662,820 -6.46%Facilities Revenue 38,611 105,700 164,389 120,700 14.19%Other Sources 181,641 233,175 145,846 212,675 -8.79%

TOTALS: 13,089,084 13,036,825 12,522,542 12,727,260 -2.37%

Net Fund Transfers In (Out) 572,000 284,000 284,000 946,000 >100.00%GRAND TOTAL 13,661,084 13,320,825 12,806,542 13,673,260 2.65%

EXPENDITURES:By ObjectSalaries 6,405,225 7,396,861 6,972,061 7,768,440 5.02%Employee Benefits 1,253,966 1,352,830 1,351,820 1,180,370 -12.75%Contractual Services 831,589 1,161,026 946,239 1,377,940 18.68%General Materials and Supplies 3,760,876 5,013,977 4,044,406 5,321,665 6.14%Conference and Meeting Expenses 92,974 122,770 82,576 123,020 0.20%Fixed Charges 291,346 347,808 301,165 358,995 3.22%Utilities 233,121 228,895 224,403 210,700 -7.95%Capital Outlay 46,746 283,000 36,400 1,551,130 >100.00%Other 73,056 73,150 57,712 73,350 0.27%Contingency 0 854,710 0 849,710 -0.58%

TOTALS: 12,988,899 16,835,027 14,016,782 18,815,320 11.76%



Comparison of Revenues and Expenditures Auxiliary Enterprise Fund

The Auxiliary Enterprise Fund records the revenues and expenditures for college services which require fees be charged to students/staff. College services/programs in this group include the student bookstore, the child development center, certain community services, intercollegiate athletics, computer services, food services, and the Alliance for Lifelong Learning.

71



Auxiliary Enterprise Fund

Fiscal Year 2015 Budgeted Revenues

Fiscal Year 2015 Budgeted Expenditures

Local 0.79%

State 3.35%

Tuition/Fees 25.18%

Sales and Service 68.06%

Facilities Revenue 0.95%

Other 1.67%

Salaries 41.29%

Benefits 6.27% Contractual Services

7.32%

Supplies 28.28%

Meeting 0.65%

Fixed Charges 1.91%

Utilities 1.12%

Capital 8.25%

Other 0.39%

Contingency 4.52%

Prelim Prelim PrelimFY 14 (1) FY 15 FY 14 (1) FY 15 FY 14 (1) FY 15

REVENUES Actual Budget Actual Budget Actual BudgetLocal Government 0 0 0 0 0 0State Government 0 0 0 0 0 0Federal Government 0 0 0 0 0 0Student Tuition and Fees 0 0 0 0 0 252,740Sales Service Fees 302,309 311,600 2,578,452 3,128,600 46,758 45,000Facilities Revenue 0 0 0 0 0 0Investment Income 0 0 0 0 0 0Other Sources 0 0 (30,306) (32,000) (49) (175)

TOTALS: 302,309 311,600 2,548,146 3,096,600 46,709 297,565

EXPENDITURES:Salaries 155,478 168,400 424,353 429,495 90,204 133,270Employee Benefits 31,000 27,000 93,000 75,870 18,900 17,825Contractual Services 19,351 21,895 47,692 61,180 37,515 217,600General Materials/Supplies 48,772 77,325 2,080,732 2,486,400 7,261 12,350Conference/Meetings 0 0 0 1,225 1,995 1,650Fixed Charges 139,737 162,000 0 0 0 0Utilities 1,645 1,325 75,905 74,195 7,370 1,640Capital Outlay 0 0 0 115,180 0 0Other 0 0 49,168 42,400 0 0

TOTALS: 395,983 457,945 2,770,850 3,285,945 163,245 384,335

Fund Transfers 0 0 0 0 0 0

Program Net: (93,674) (146,345) (222,704) (189,345) (116,536) (86,770)(1) Amounts are reported from the preliminary year end close and do not reflect any audit adjustments that may arise.

72

Bookstore Copy Center Business Institute


Comparison of Revenues and Expenditures by Program Auxiliary Enterprise Fund

Comparison Between Fiscal Year 2014 Actuals and Fiscal Year 2015 Budget

Prelim Prelim PrelimFY 14 (1) FY 15 FY 14 (1) FY 15 FY 14 (1) FY 15

REVENUES Actual Budget Actual Budget Actual BudgetLocal Government 0 0 114,841 100,000 0 0State Government 0 0 676,061 426,260 0 0Federal Government 0 0 0 0 0 0Student Tuition and Fees 0 0 704,384 859,750 (14,338) 0Sales Service Fees 520,555 455,320 51,619 58,100 526,401 495,200Facilities Revenue 0 0 13,300 0 0 0Investment Income 0 0 75,122 11,000 0 0Other Sources 0 0 125 75,350 0 0

TOTALS: 520,555 455,320 1,635,452 1,530,460 512,063 495,200

EXPENDITURES:Salaries 169,961 178,450 1,510,539 1,764,335 542,880 563,715Employee Benefits 39,000 36,000 358,850 310,345 153,830 133,830Contractual Services 24,611 51,745 181,672 230,100 46,662 68,900General Materials/Supplies 4,965 9,550 275,835 305,550 17,422 18,255Conference/Meeting Expenses 0 2,100 26,436 34,250 983 2,700Fixed Charges 0 0 57,270 83,000 0 0Utilities 39,814 43,550 15,000 15,000 9,410 7,570Capital Outlay 0 0 0 0 0 0Other 0 0 0 95,000 0 0

TOTALS: 278,351 321,395 2,425,602 2,837,580 771,187 794,970

Fund Transfers 0 0 222,000 304,000 0 0

Program Net: 242,204 133,925 (568,150) (1,003,120) (259,124) (299,770)(1) Amounts are reported from the preliminary year end close and do not reflect any audit adjustments that may arise.

73

Telecommunications ALLiance ECE Lab School


Comparison of Revenues and Expenditures by Program

Comparison between Fiscal Year 2014 Actuals and Fiscal Year 2015 Budget

Information Technology ITFS LEASE Other Operations

Prelim Prelim Prelim PrelimFY 14 (1) FY 15 FY 14 (1) FY 15 FY 14 (1) FY 15 FY 14 (1) FY 15

REVENUES Actual Budget Actual Budget Actual Budget Actual BudgetLocal Government 0 0 0 0 0 0 0 0State Government 0 0 0 0 0 0 0 0Federal Government 0 0 0 0 0 0 0 0Student Tuition and Fees 2,092,315 2,092,315 0 0 0 0 (46,940) 0Sales Service Fees 3,560,647 3,560,650 3,315 4,000 919,121 432,850 176,806 171,500Facilities Revenue 0 0 12,300 15,000 0 0 152,089 105,700Investment Income 0 0 0 0 0 0 45,779 75,000Other Sources 0 0 (8,277) 0 0 0 50,153 83,500

TOTALS: 5,652,962 5,652,965 7,338 19,000 919,121 432,850 377,887 435,700

EXPENDITURES:Salaries 3,354,306 3,719,185 512,501 578,600 12,251 23,000 199,588 209,990Employee Benefits 571,490 498,000 54,750 54,500 0 0 31,000 27,000Contractual Services 303,774 374,530 74,637 77,278 22,837 66,000 187,488 208,710General Materials/Supplies 1,409,235 2,164,710 99,310 156,890 45,386 47,500 55,487 43,135Conference/Meeting Expenses 1,243 11,115 50,843 67,195 0 0 1,076 2,785Fixed Charges 0 0 102,892 109,495 0 0 1,266 4,500Utilities 47,125 39,125 5,470 6,245 0 0 22,665 22,050Capital Outlay 36,400 63,000 0 1,317,950 0 0 0 55,000Other 0 0 0 0 0 13,000 8,545 772,661

TOTALS: 5,723,573 6,869,665 900,403 2,368,153 80,474 149,500 507,115 1,345,831

Fund Transfers 912,000 930,000 0 0 (850,000) (288,000) 0 0

Program Net: 841,389 (286,700) (893,065) (2,349,153) (11,353) (4,650) (129,228) (910,131)(1) Amounts are reported from the preliminary year end close and do not reflect any audit adjustments that may arise.

74

Athletics


Comparison of Revenues and Expenditures by Program

Comparison between Fiscal Year 2014 Actuals and Fiscal Year 2015 Budget

75



Auxiliary Enterprise Fund by Program

Bookstore 24.33%

Business Institute 2.34%

Information Technology 44.42%

ECE Lab School 3.89%

Athletics 0.15%

Other Operations 3.42%

Bookstore 17.46%

Business Institute 2.04%

Information Technology 36.51% ECE Lab School

4.23%

Athletics 12.59%

Other Operations 7.15%

Fiscal Year 2015 Budgeted Expenditures

Fiscal Year 2015 Budgeted Revenues

Copy Center 2.45%

Telecommunications 3.58%

ALLiance 12.02%

Copy Center 2.43%

Telecommunications 1.71%

ALLiance 15.08%

ITFS Lease 3.40%

ITFS Lease 0.80%

76


FY 13 FY 14 FY 14 (1) FY 15 BudgetActual Budget Actual Budget % Change

REVENUESLocal Government(3) 3,131,432 14,365,265 3,217,845 18,961,035 31.99%Investment Revenue 5,490 4,570 4,677 9,000 96.94%

TOTALS: 3,136,922 14,369,835 3,222,522 18,970,035 32.01%

EXPENDITURES: (By Object)Bond Principal Retired(2) 1,705,000 12,030,000 2,030,000 16,640,000 38.32%Interest on Bonds 1,080,735 1,552,250 1,013,084 1,530,235 -1.42%Debt Issuance Costs 0 250,000 4,482 225,000 100.00%Other 0 900 400 1,800 100.00%

TOTALS: 2,785,735 13,833,150 3,047,966 18,397,035 32.99%

TRANSFER: In (Out), Net 0 0 0 0 0.00%

Net of Revenues, Expenditures, 351,187 536,685 174,556 573,000 and Transfers

(1) Amounts are reported from the preliminary year end close and do not reflect

any audit adjustments that may arise.

(2) Repayment of $30.1 million Debt Certificates, Series 2011 and

$13.9 million Debt Certificate in fiscal year 2014.

(3) Includes proceeds from issuance of General Obligation Bonds, Series 2011 and

fiscal year 2014 $13.9 million General Obligation Bond issuance.


Comparison of Revenues and Expenditures Bond and Interest Fund

The Bond and Interest Fund is used to account for payment of principal, interest and related charges on the College's Series 2011 and 2014 General Obligation bonds. It is supported by a property tax levy which monies may not be used for any other purpose. The fiscal year 2014 budget anticipates the issuance of additional General Obligation Bonds in the amount of $13.9 million.

77



REVENUESLocal Government (19,379) 200 (19,768) 200 0.00%Investment Income 8,905 9,100 4,275 9,000 -1.10%

TOTALS: (10,474) 9,300 (15,493) 9,200 -1.08%Net Fund Transfers In (Out) 605,000 1,180,000 1,180,000 1,450,000 22.88%

GRAND TOTAL 594,526 1,189,300 1,164,507 1,459,200 22.69%

EXPENDITURESInsurance Costs

Salaries 5,700 0 0 0 0.00%Employee Benefits 1,195,462 1,212,599 1,207,242 1,214,805 0.18%Contractual Services 46,892 60,000 6,526 45,000 -25.00%General Supplies/Materials 0 0 0 0 0.00%Fixed Charges 75,943 59,100 (3,695) 73,655 24.63%All Other Expenditures 0 50,000 0 50,000 0.00%

TOTALS: 1,323,997 1,381,699 1,210,073 1,383,460 0.13%

REVENUESLocal Government 45,626 87,955 87,762 100,940 14.76%Investment Income 873 1,300 577 1,000 -23.08%

TOTALS: 46,499 89,255 88,339 101,940 14.21%

EXPENDITURESSalaries 0 0 0 0Contractual Services 86,147 110,000 97,024 99,700 -9.36%

TOTALS: 86,147 110,000 97,024 99,700 -9.36%(1) Amounts are reported from the preliminary year end close and do not reflect

any audit adjustments that may arise.


Comparison of Revenues and Expenditures Liability, Settlement, and Protection Fund

The Liability, Settlement, and Protection Fund is used for recording the financial activities in connection with liability and associated legal costs and certain mandated insurance programs such as worker's compensation insurance, medicare, and social security. It is supported by two separate property tax levies which are accounted for separately in the general ledger and combined for reporting purposes. Funds from these levies may not be used for other than their intended purposes.

Comparison of Revenues and Expenditures Audit Fund

The law requires an annual audit conducted by an external agency and a comprehensive annual financial report on the use of public funds. The Audit Fund is used for recording revenues and expenditures for those audits and related financial reports. It is supported by a separate tax levy. Audit funds may not be used for other purposes.

78


FY 13 FY 14 FY 14 (1) FY 15 BudgetActuals Budget Actuals Budget % Change

REVENUESLocal Government 187,500 520,000 62,500 75,000 -85.58%State Government 18,595,139 23,154,550 18,834,495 24,909,000 7.58%Federal Government 9,601,126 14,602,450 9,571,110 13,057,500 -10.58%Investment Income 0 10,000 3,733 9,000 -10.00%Other Sources 968,784 1,107,000 1,280,337 1,234,980 11.56%

TOTALS: 29,352,549 39,394,000 29,752,175 39,285,480 -0.28%

Net Fund Transfers In (Out) 100,000 (360,000) (360,000) 100,000 >100.00%GRAND TOTAL 29,452,549 39,034,000 29,392,175 39,385,480 0.90%

EXPENDITURES: By ObjectSalaries 1,885,638 2,301,246 1,797,156 2,726,510 18.48%Employee Benefits 16,641,015 19,922,079 17,062,299 22,090,750 10.89%Contractual Services 113,529 495,510 43,911 196,650 -60.31%General Materials and Supplies 311,066 1,083,056 277,230 456,130 -57.88%Conference and Meeting Expenses 34,856 168,809 43,253 98,310 -41.76%Fixed Charges 74,227 120,039 129,576 144,350 20.25%Utilities 150 200,000 4,315 84,590 -57.71%Capital Outlay 319,188 744,000 700,999 407,450 -45.24%Other (Primarily financial aid) 10,165,919 14,349,261 9,762,546 13,071,740 -8.90%

TOTALS: 29,545,588 39,384,000 29,821,285 39,276,480 -0.27%

(1) Amounts are reported from the preliminary year end close and do not reflect any audit adjustments that may arise.


Comparison of Revenues and Expenditures Restricted Purposes Fund

The Restricted Purposes Fund records the revenues and expenditures for monies which have restrictions regarding their use. Such monies include state and federal government grants and private grants restricted to specific purposes. Additionally in fiscal years 2012 through 2014, the College accounted for the costs of its Strategic Initiatives in the Restricted Purposes Fund as these monies were designated to this purpose. Examples of such grants include TRIO grants and Perkins grants. All of the various programs use self-balancing accounts within the fund.

Salaries - 6.94%

Benefits 56.24% Contract

Service 0.50%

Supplies 1.16%

Conference 0.25%

Fixed - 0.37%

Capital - 1.04%

Other 33.28%

Utilities - 0.22%

79

Preliminary FY 14 toFY 13 FY 14 FY 14 (1) FY 15 FY 15Actual Budget Actual Budget % Change

REVENUESLocal Government (2) 0 10,000,000 14,530,000 0 -100.00%State Government 0 741,300 125,000 1,241,300 67.45%Tuition and Fees 418,028 431,820 404,291 393,750 -8.82%Investment Income 135,426 40,000 66,158 45,000 12.50%Other Sources 62,005 0 0 0 0.00%

TOTALS: 615,459 11,213,120 15,125,449 1,680,050 -85.02%

Transfer In (Out): 8,350,000 7,150,000 7,150,000 4,850,000 -32.17%

NET WITH TRANSFERS: 8,965,459 18,363,120 22,275,449 6,530,050 -64.44%

EXPENDITURES:By ObjectSalaries 85,364 113,970 88,416 89,250 -21.69%Employee Benefits 14,381 15,500 15,500 13,500 -12.90%Contractual Services 54,232 734,820 72,127 1,163,255 58.30%General Materials and Supplies (124,937) 1,358,879 53,712 1,519,410 11.81%Fixed Charges 0 0 0 0 0.00%Utilities 810 50,000 0 60,000 20.00%Capital Outlay 27,178,902 43,384,680 26,361,732 15,899,145 -63.35%Other 0 500,000 20,000 500,000 0.00%

TOTALS: 27,208,752 46,157,849 26,611,487 19,244,560 -58.31%

(1) Amounts are reported from the preliminary year end close and do not reflect any audit adjustments that may arise.(2) Fy 14 budgeted issuance of Debt Certificates


Comparison of Revenues and Expenditures Operations and Maintenance Fund (Restricted)

The Operations and Maintenance Fund (Restricted) records the revenues and expenditures related to the acquisition or construction of major capital facilities. Major remodeling activities are also recorded in this fund. Monies may not be transferred out of this fund to be used for other purposes such as faculty salaries or instructional supplies. This fund includes Protection, Health and Safety revenues and expenditures which are accounted separately within the fund.

80

FY 14 toFY 15

Program FY 13 FY 14 FY 14 (1) FY 15 BudgetActual Budget Actual Budget % Chg

Education Fund

InstructionBaccalaureate 51,118 50,000 37,912 18,970 -62.06%

Vocational 38,014 169,700 126,349 102,585 -39.55%

Total Instruction: 89,132 219,700 164,261 121,555 -44.67%

Academic Support: 0 0 0 15,110 0.00%

Public Services: 19,126 26,500 20,925 0 -100.00%

Total Education Fund: 108,258 246,200 185,186 151,665 -38.40%

Operations and Maintenance Fund

Total Operations/Maintenance Plant: 141,935 138,500 24,996 543,450 >100.00%

Operations and Maintenance (Restricted) Fund

State Pass Through 0 564,345 0 0 -100.00%Funded by Oakton 27,178,902 42,820,335 26,361,732 15,899,144 -62.87%

Total Operations/Maintenance (Restricted) 27,178,902 43,384,680 26,361,732 15,899,144 -63.35%


Comparison of Capital Expenditures

The College defines Capital Expenditures (also “capital equipment” and “capital outlay”) to include site acquisition and improvement, office equipment, instructional equipment, and service equipment. Generally expenditures in this category cost more than $10,000 and would not normally be purchased from general materials and supplies. Remodeling projects, vehicles, computer servers and related equipment, and laboratory equipment would be typical examples of items included in this category.

81

FY 14 toFY 15

Program FY 13 FY 14 FY 14 (1) FY 15 BudgetActual Budget Actual Budget % Chg

Auxiliary Enterprises Fund

Academic Support:** 21,771 186,000 36,400 63,000 -66.13%

Public Services: 0 0 0 0 0.00%

Auxiliary Services: 24,975 97,000 0 1,488,130 >100.00%

Operations/Maintenance Plant: 0 0 0 0 0.00%

General Administration: 0 0 0 0 0.00%

General Institutional 0 0 0 0 0.00%

Total Aux Enterprises Fund: 46,746 283,000 36,400 1,551,130 >100.00%

Restricted Purposes FundTotal Restricted Purposes 319,188 744,000 700,999 407,450 -45.24%

Total Capital Expenditures:

Total: 27,795,029 44,796,380 27,309,313 18,552,839 -58.58%

(1) Amounts are reported from the preliminary year end close and do not reflect any audit adjustments that may arise.

NOTE: This comparison of costs does not include the following equipment expenditures: a. Equipment purchased by College clubs. b. Equipment purchased by the OCC Foundation. Equipment from the Foundation comes in the form of a gift; private donations and grants fund the Foundation, not public or tuition funds. The Foundation has its own accounting procedures totally unconnected with the legal budget of the College. c. Employee computer equipment plan purchases.

** The equipment requested by Instructional Technology is used in computer labs or the academic network; where possible, equipment budget costs have been assigned to instructional programs. Equipment which cannot be assigned directly to programs is budgeted in this category.

82


Notes


STATISTICS SECTION

PreliminaryActual Actual Actual Actual Actual Actual

Revenues: FY 09 FY 10 FY 11 FY 12 FY 13 FY 14Property Taxes 35,961,020 37,361,126 38,996,718 40,598,232 42,438,034 43,673,783Pers Prop Repl Tax 865,093 863,610 1,065,352 939,611 994,492 1,042,235State Grants 4,482,333 4,566,268 4,488,733 4,789,492 4,691,606 4,980,543Federal Grants 0 199,338 0 0 0 0Local Grants/Contract 0 0 0 0 0 0Chargeback 130,624 117,427 103,876 95,150 74,920 69,451Student Tuition/Fees 19,584,738 20,650,771 22,055,308 21,459,471 21,399,980 21,056,169Sales/Service Revenue 18,446 17,676 14,755 8,710 11,155 8,480Facilities Revenue 0 0 0 0 0 0Investment Income 1,498,391 1,809,405 919,077 891,228 133,555 321,256Other Revenue 24,054 30,756 15,519 55,306 136,203 29,164

Total Revenues: 62,564,699 65,616,377 67,659,338 68,837,200 69,879,945 71,181,081Total Budgeted 59,773,560 64,392,124 64,317,448 67,917,276 67,871,936 69,408,000Amount Over (Under) 2,791,139 1,224,253 3,341,890 919,924 2,008,009 1,773,081% Over (Under) 4.67% 1.90% 5.20% 1.35% 2.96% 2.55%

83


History of Actual Revenues and Expenditures - Operating Funds

This table shows the history of the actual revenues and expenditures, both by program and by object, for the Operating Funds, which are a combination of the Education Fund (Fund 01) and the Operations and Maintenance Fund (Fund 02). Fund transfers between funds are not included in order to standardize comparisons.

PreliminaryActual Actual Actual Actual Actual Actual

Expenditures: FY 09 FY 10 FY 11 FY 12 FY 13 FY 14By FunctionInstruction 32,529,042 34,728,630 35,593,938 36,884,527 36,488,399 36,792,142Academic Support 4,176,573 4,217,223 4,000,872 4,458,098 4,436,538 4,453,390Student Services 5,784,875 5,816,110 5,742,672 6,195,720 6,210,927 6,448,197Public Service 863,770 878,775 850,566 842,366 756,359 671,482Operation/Maint of Plant 6,432,725 6,356,170 6,529,848 6,945,954 7,356,518 7,416,361General Administration 4,137,452 4,094,600 4,111,075 4,365,856 4,567,516 4,567,478Institutional Support 739,932 708,190 1,486,090 1,220,463 1,507,951 1,314,690

Total Expenditures: 54,664,369 56,799,698 58,315,061 60,912,984 61,324,208 61,663,740Expenditures:

By ObjectSalaries 40,579,992 42,932,872 44,502,591 45,322,368 44,949,724 44,662,005Employee Benefits 5,180,762 4,814,471 5,109,589 5,819,680 5,832,340 5,988,066Contractual Services 3,517,278 3,709,090 3,806,228 4,592,331 4,808,939 5,172,760Materials and Supplies 3,358,447 3,323,925 3,041,862 3,209,185 3,498,243 3,422,267Conferences/Meetings 247,149 182,395 162,139 199,037 232,962 284,086Fixed Charges (27,677) (15,976) 2,186 (864) 139,892 145,676Utilities 1,563,692 1,512,316 1,446,019 1,484,843 1,404,771 1,611,077Capital Outlay 57,782 64,633 46,768 121,697 250,192 210,182Other 186,944 275,972 197,679 164,707 207,145 167,621

Total Expenditures: 54,664,369 56,799,698 58,315,061 60,912,984 61,324,208 61,663,740Total Budgeted 57,611,763 62,121,315 63,626,498 66,165,223 66,280,936 68,293,000Amount Over (Under) (2,947,394) (5,321,617) (5,311,437) (5,252,239) (4,956,728) (6,629,260)% Over (Under) -5.12% -8.57% -8.35% -7.94% -7.48% -9.71%

84


History of Actual Revenues and Expenditures - Operating Funds (cont)

85

LocalArea State State State Average

REVENUE CATEGORY Oakton Average Highest Lowest Average % ChangeLocal Taxes/Chargebacks 62.22% 47.64% 62.22% 12.06% 36.47% 1.08%Student Tuition 27.23% 36.99% 53.57% 27.19% 37.11% 0.71%Student Fees 3.44% 4.45% 10.16% 0.00% 4.52% 0.31%ICCB Grants 6.72% 9.82% 44.75% 5.06% 18.44% 1.10%Other State 0.00% 0.08% 18.80% 0.00% 0.58% 39.88%Federal 0.00% 0.01% 2.20% 0.00% 0.13% 798.41%Other 0.39% 1.01% 14.85% 0.07% 2.75% 14.01%

Percent Change Total Revenue 1.55% 2.49% 7.90% -15.19% 1.54% 1.71%

SOURCE: ICCB Data and Characteristics


Comparison of Audited Operating Revenues By Source (Education and Operating & Maintenance Funds)

Fiscal Year 2013 The table below compares FY 2013 audited operating revenues by source, the latest available comprehensive data. Operating revenues include the Education Fund revenues and Operations and Maintenance Fund revenues only. Three colleges rely on state funding as the primary revenue source; 22 colleges rely on tuition and fees as the primary revenue source; and 14 colleges, including Oakton, rely on local taxes as the primary revenue source. Direct federal revenues contribute little to community college operating funding in Illinois but provide for substantial restricted fund grants, as is recorded elsewhere. Twenty colleges (twenty-one in FY 2011), including Oakton, get more than eighty percent of their revenues from combined tax and tuition/fees.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Local Taxes Tuition/Fee Total State Total Federal Total Other

Oakton Local Area State Average

86

LocalArea State State State State

OBJECT CATEGORY Oakton Average Highest Lowest Average % Change

Salaries 74.20% 65.28% 74.20% 51.53% 61.93% 1.80%

Benefits 8.40% 10.84% 30.07% 1.24% 10.81% 7.12%

Contract Services 7.90% 7.25% 12.85% 2.22% 6.22% 2.49%

General Materials 5.77% 5.68% 12.00% 3.55% 6.33% -2.33%

Conference and Meeting 0.42% 0.83% 1.73% 0.34% 0.97% 5.26%

Fixed Charges 0.44% 0.89% 3.30% 0.12% 1.05% 4.22%

Utilities 2.32% 2.79% 5.01% 1.95% 3.31% -6.03%

Capital Outlay 0.41% 2.13% 10.75% 0.00% 1.93% 2.25%

Other 0.13% 4.31% 23.27% 0.13% 7.44% 21.76%

Percent Increase Total Expenditures -0.54% 1.55% 11.96% -6.94% 3.01% 3.01%



This table compares audited operating expenditures by object across the state for Fiscal Year 2013, the latest available comprehensive data. While salaries and benefits generally comprise the highest educational costs, contractual services can also be high for those colleges which contract for services such as custodial and maintenance services.

Comparison of Audited Operating Expenditures By Object (Education and Operation & Maintenance Funds)

Fiscal Year 2013

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Salaries Benefits Contract Materials All Other


87

LocalArea State State State State

OBJECT CATEGORY Oakton Average Highest Lowest Average % Change

Instruction 54.06% 42.56% 59.11% 34.71% 43.64% 1.15%Academic Support 13.94% 7.63% 13.94% 1.64% 7.02% -2.68%Student Services 10.14% 9.48% 15.45% 3.84% 8.70% 5.44%

Total Direct Services to Students 78.15% 59.66% 78.15% 44.20% 59.37% 4.83%

Public Service 0.91% 1.33% 14.09% 0.00% 1.91% 5.79%Independent Operations 0.00% 0.30% 2.68% 0.00% 0.09% 190.21%Operations/Maintenance 12.14% 13.59% 23.22% 7.82% 12.38% 3.05%Institutional Support 8.60% 21.99% 40.65% 6.10% 21.73% 4.47%Scholarships, Grants, Waivers 0.21% 3.12% 21.91% 0.00% 4.53% 14.92%

Total Other 21.85% 40.34% 55.80% 21.85% 40.63% 5.72%

Percent Change Total Expenditures 361.95% 157.35% 361.95% 88.95% 157.95% 5.19%



Comparison of Audited Operating Expenditures By Function Fiscal Year 2013

The table below compares audited operating expenditures by function for Fiscal Year 2013, the latest available comprehensive data. The College's percentages of expenditure by function compare favorably with both the local area colleges and the state as a whole. The bulk of the expenditures are used for those programs which directly or indirectly deal with students: Instruction, Academic Support, and Student Services. On a percentage basis, Oakton's services to students expenditures are the highest in the state and Institutional Support program costs are the lowest in the state; Operations and Maintenance costs remain in the lower half statewide.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Instruction Academic Sppt Student Svc Total Other


88

%Total

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FacultyDiscipline Budget Budget Budget Budget Budget FY 15

BACCALAUREATEArt 5.00 5.00 5.00 5.00 5.00 3.21%Behavioral/Social Studies 13.00 12.50 12.60 13.70 12.75 8.17%Biology 10.85 10.65 10.70 10.70 12.90 8.27%Business 3.80 3.20 2.50 2.60 1.90 1.22%Chemistry 4.00 5.00 4.00 5.00 5.00 3.21%Computer Science 0.60 0.25 0.60 0.60 1.25 0.80%Earth Science 2.00 2.00 2.00 2.00 2.00 1.28%Engineering 0.85 1.05 0.90 0.90 0.90 0.58%English 18.45 19.30 15.60 16.50 18.40 11.79%Global Business Studies 0.50 0.50 0.50 0.40 0.55 0.35%Historical/Policy Studies 4.60 5.00 4.70 4.70 4.70 3.01%Humanities/Philosophy 6.60 6.25 7.80 6.90 8.50 5.45%International Trade 0.00 0.00 0.00 0.00 0.00 0.00%Mathematics 11.30 11.10 12.85 12.85 13.25 8.49%Modern Languages 3.00 3.20 3.20 3.20 3.30 2.12%Music 1.80 1.80 0.80 0.80 0.80 0.51%Physical Education 1.00 1.00 1.00 1.00 1.00 0.64%Physics 2.00 2.00 2.00 2.00 2.00 1.28%Speech/Theater 3.90 4.10 4.20 4.20 3.70 2.37%

Total Baccalaureate: 93.25 93.90 90.95 93.05 97.90Baccalaureate as a % of Total: 60.55% 60.97% 61.45% 62.45% 62.76%

VOCATIONALAccounting Technology 3.90 3.90 4.00 4.00 3.80 2.44%Air Cond/Heating/Refrigeration 0.90 0.90 1.90 1.00 1.00 0.64%Architecture Technology 1.10 1.00 0.00 0.00 0.00 0.00%Automobile Technology 1.00 1.00 1.00 1.00 1.00 0.64%BNAT Nursing 4.00 4.00 4.00 4.00 4.00 2.56%Computer Networking Systems 0.90 0.80 1.05 1.05 0.80 0.51%Computer Tech & Info Systems 7.10 6.90 6.05 5.05 4.60 2.95%


Comparison of Full Time Faculty Assignments

The following analysis compares budgeted full-time faculty teaching loads. The loads are projected to disciplines based on FTE loads reported during the current year, thereby making the current year's actual assignments the following year's budgeted loads. Other changes represent adjustments in course assignments and teaching loads.

89

%Total

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FacultyDiscipline Budget Budget Budget Budget Budget FY 15

Early Childhood Education 2.00 2.00 2.00 2.00 3.00 1.92%Electronics Technology 1.45 1.30 1.10 1.10 1.10 0.71%Facilities Management/Engineer 0.10 0.10 0.10 0.00 0.00 0.00%Fire Science Technology 0.00 0.05 1.05 1.05 1.00 0.64%Health Information Technology 3.00 3.00 3.00 3.00 3.00 1.92%Horticulture Therapy 0.00 0.10 0.10 0.10 0.10 0.06%Law Enforcement 2.00 2.00 1.00 1.00 1.00 0.64%Management/Supervision 0.50 0.20 0.20 0.20 1.10 0.71%Manufacturing 0.05 0.30 1.00 1.00 1.70 1.09%Marketing 1.20 2.10 1.80 1.80 1.55 0.99%Mechanical Design 1.40 1.25 0.30 0.30 1.30 0.83%Medical Lab Technology 1.85 1.80 1.85 1.85 1.80 1.15%Paralegal Studies 0.00 0.00 0.00 1.00 0.90 0.58%Pharmacy Technician 0.15 0.20 0.15 0.15 0.20 0.13%Physical Therapist Assistant 3.00 2.90 2.90 2.90 2.90 1.86%Registered Nursing 13.00 13.00 13.00 13.00 13.00 8.33%

Total Vocational: 48.60 48.80 47.55 46.55 48.85Vocational as a % of Total: 31.56% 31.69% 32.13% 31.24% 31.31%

OTHER ASSIGNMENTSCouncil of Deans 0.10 0.10 0.00 0.00 0.00%Cultures Week 0.00 0.00 0.00 0.00 0.00%Faculty Development 0.00 0.00 0.70 0.70 0.50 0.32%Global Studies 0.20 0.20 0.20 0.20 0.20 0.13%Great Books 0.10 0.10 0.10 0.10 0.10 0.06%Honors Program 0.80 0.80 0.80 0.80 0.80 0.51%Academic Administration 0.75 0.70 0.60 0.60 0.65 0.42%Library 4.00 4.00 4.00 4.00 4.00 2.56%Mens Program 0.10 0.20 0.00 0.00 0.00%Service Learning 0.20 0.20 0.10 0.00 0.00%Student Affairs 5.70 5.00 3.00 3.00 3.00 1.92%Television Production Services 0.00 0.00 0.00 0.00 0.00%Women's and Family Programs 0.20 0.00 0.00 0.00 0.00%

Total Other: 12.15 11.30 9.50 9.40 9.25Other as a % of Total: 7.89% 7.34% 6.42% 6.31% 5.93%

Grand Total: 154.00 154.00 148.00 149.00 156.00 100.00%

90

LocalArea State State State

Oakton Average Highest Lowest AverageADMINISTRATORS

Full Time 34 36.9 79 12 33.6

Part-time FTE 1 0.2 5 0 0.4

Total Administrator FTE 35 37.1 81 13 34.0

Total Administrator Headcount 35 37.2 83 12 34.1

Credit Hours per 6,168 6,266.9 13,210 1,104 4,792.1Administrator FTE

INSTRUCTIONAL FACULTY

Full Time 144 148.0 271 35 108.6

Part-time FTE 270 260.8 644 30 138.3

Total Instructional FTE 414 408.8 915 65 246.9

Total Instructional Headcount 820 720.3 1,497 103 437.7

Credit Hours per 514 569.1 882 299 603.6Instructional Faculty FTE

Credit Hours per Headcount 259 323.0 446 166 343.7

Ratio Full-time to Part-time FTE 0.53 0.57 2.33 0.31 1.05

Ratio Instructional Faculty FTE 12.0 11.0 20.0 1.5 8.0to Administrator FTE

NOTE: Chicago City Colleges are excluded from state high, low, and average.NOTE: Latest available data.SOURCE: ICCB Data and Characteristics


Comparison of Instructional Faculty and Administrators Fall Semester 2013 (FY 2014)

The following tables analyze administrator staffing levels and various combinations of full time and part time faculty by FTE (full time equivalent) and headcount to each other and to reimbursable credit hours. Care should be taken when making direct comparisons. Colleges with large numbers of lab classes compared to lecture classes, for example, may require more faculty for a given number of credit hours. Credit hours are FY 2013 total reimbursable hours.

91

0 250 500 750 1,000 1,250

Oakton

State Average

State Lowest

Local Area Average

State Highest


Credit Hours per Instructional Faculty FTE

Reimbursable Credit Hours

Credit Hours per Administrator FTE

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

Oakton

Local Area Average

State Average

State Lowest State Highest


92

FY 2012 FY 2013 FY 2014 FY 2015Budget Budget Budget Budget

Instruction 18.7 18.0 19.2 19.4Instructional Administration 28.6 28.2 27.2 26.8Academic Support 37.8 36.1 37.1 37.2Student Services 52.0 57.0 57.4 58.8Public Services 6.0 5.3 4.4 4.4General Administration 33.8 34.6 34.5 35.3General Institutional 7.8 8.3 8.3 8.3

Total Education Fund 184.7 187.5 188.0 190.1

Operations and Maint. of Plant 79.7 81.0 80.6 85.9

Site Expenditures 1.6 1.6 1.6 1.0

ALLiance 22.0 20.6 21.6 23.8

Auxiliary EnterprisesInformation Technology 37.6 37.6 38.6 38.6ECE Lab Schools 12.2 12.2 12.2 11.8Bookstore 7.0 7.0 5.6 5.6Institute Bus/Pro Development 6.7 6.0 6.7 5.6Other 9.2 8.7 10.9 11.6

Total Staff FTE 360.7 362.2 365.9 374.0

The following table compares classified staff assignments to educational and support programs for the last four fiscal years. Staff counts are listed on a full-time equivalent (FTE) basis. Student employees and individuals hired on a contractual service basis are excluded, as are grant-funded positions. FTE totals may vary as some positions change funding between Current Funds and Restricted Purpose Funds, which are not catalogued below.


Comparison of Classified Staff Assignments

93

LocalArea State State State

Oakton Average Highest Lowest AverageCLASSIFIED STAFF

Full Time 144 157 238 24 92

Part-time FTE 41 72 289 0 47

Total Classified Staff FTE 185 229 407 24 139

Total Staff Headcount 227 282 579 24 173

Credit Hours per 1,150 1,014 2,744 585 889Classified Staff FTE

Faculty FTE per 2.24 1.78 6.58 0.92 6.57Classified Staff FTE

Staff FTE per Admin FTE 5.36 6.18 15.96 0.78 4.10

NOTE: Latest available dataNOTE: Chicago City Colleges are excluded from state high, low, and average.SOURCE: ICCB Data and Characteristics

Reimbursable Credit Hours per Classified Staff FTE


Comparison of Classified Staff - Fall Semester 2013 (FY 2014)

The following tables examine professional staff and classified staff personnel staffing levels compared to faculty and credit hours. Care should be taken in making direct comparisons without additional analysis. For example, some colleges provide their own custodial, cafeteria, and public safety services while others contract for these services; contracted service personnel, not being direct employees of the college, are not counted in these data. Furthermore, job definitions can vary significantly: a faculty position at one college may be a professional classified staff position at another college. Under ICCB personnel classifications; professional staff includes librarians and counselors (faculty positions at Oakton) as well as certain classified staff positions. ICCB classifications do not conform to Oakton policy or definitions. The data below is based on ICCB reporting definitions.

0 1,000 2,000 3,000 4,000

Oakton

Area Average

State Average

State Lowest

State Highest

94

Local % ChangeArea State State State State Total

CATEGORY Oakton Average Highest* Lowest* Average* Hours

Baccalaureate 128,424 141,093 296,011 21,570 87,017 -2.61%Business 17,367 16,113 46,789 862 10,385 -3.16%Technical 10,922 18,313 63,177 2,458 16,455 -0.68%Health 13,844 15,263 29,449 2,819 12,028 -4.96%Remedial 17,273 21,763 33,839 1,517 12,695 -6.24%ABE/ASE 24,953 20,112 34,650 807 10,127 0.14%

Total Enrollments: 212,782 232,658 482,331 34,734 148,707% Change Prior FY: -2.12% -3.82% 3.71% -6.51% -4.38% -2.68%% Change 5 Years: -2.11% 3.33% 2.02% -16.79% 0.59% 2.61%% Change 10 Years: 1.42% 7.78% -3.25% -10.08% 4.79% 4.48%

Percent of each instruction category compared to total reimbursable credit hoursBaccalaureate 60.35% 59.83% 70.81% 40.86% 57.65%Business 8.16% 6.56% 13.86% 2.48% 6.77%Technical 5.13% 7.25% 33.84% 3.83% 11.30%Health 6.51% 6.65% 20.96% 5.13% 9.31%Remedial 8.12% 10.40% 18.27% 2.13% 8.47%ABE/ASE 11.73% 9.31% 21.22% 0.86% 6.50%

*Chicago City Colleges are excluded from state high, low, and average.

SOURCE: ICCB Data and CharacteristicsNOTE: Latest available data.


Comparison of Total Reimbursable Credit Hours by Instructional Categories - FY 2013

Reimbursable credit hours form the basis upon which credit hour grants are awarded by the state. Generally speaking, a credit hour is defined by the ICCB as an expected 45 hours of combined classroom/laboratory/study time during a semester. Each course generates a certain number of credit hours per student, and it is the aggregate of these credit hours which determine the total credit hours for the institution. Not all credit hours the College generates are necessarily reimbursable. Certain restrictions concerning repeatability of a course, residency of the student, approval by the ICCB, and other factors will serve to reduce the total number of credit hours which an institution may claim for reimbursement. Credit hours are classified by instructional category and reimbursement rates for each of the categories are different. The percentage table below shows the contribution each instructional category makes to the total reimbursable credit hours for the institutions. For example, there is a community college for which baccalaureate hours represent only 40% of the college's total reimbursable credit hours, while the state-wide baccalaureate average for all community colleges is 58%.

95

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000

Oakton

State Average

State Lowest

Local Area Average

State Highest


Comparison of Baccalaureate Credit Hours


Comparison of Percent Changes in Credit Hour Totals

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00% 10 YEARS 5 YEARS PRIOR YEAR

OAKTON Local Area State Average


FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013Funding CategoryBaccalaureate 114,312 114,508 113,407 114,743 122,522 134,939 135,457 130,082 128,424Business Occupational 14,408 13,930 12,523 12,437 14,287 15,341 15,938 16,833 17,367Technical Occupational 11,645 10,582 10,468 11,185 11,639 12,824 11,551 11,054 10,922Health Occupational 18,233 21,785 19,492 19,368 21,718 18,240 17,274 15,540 13,844Remedial Developmental 16,627 16,598 14,964 16,361 16,592 17,482 17,417 18,191 17,273Adult Basic/Secondary 31,580 31,394 28,743 29,661 30,611 30,704 23,917 25,685 24,953Total Reimbursable 206,803 208,797 199,595 203,755 217,369 229,530 221,553 217,385 212,782

Non-reimbursable 12,109 11,690 14,292 13,253 12,658 12,029 11,236 10,008 10,28996 Total Credit Hours 218,912 220,486 213,887 217,008 230,027 241,559 232,788 227,393 223,071% Change over Pr ior Year -0.48% 0.72% -2.99% 1.46% 6.00% 5.01% -3.63% -2.32% -1.90%

Reimbursable Credit Hours by Term % Change % of TotalSummer Fall Spring FY 2014 for for

2013 2013 2014 Total FY 2014 FY 2014Funding CategoryBaccalaureate 20,818 50,671 50,161 121,650 -6.48% 56.99%Business Occupational 2,943 6,973 7,399 17,315 2.86% 8.11%Technical Occupational 1,078 4,396 5,082 10,555 -4.52% 4.94%Health Occupational 2,269 5,749 5,711 13,728 -11.66% 6.43%Remedial Developmental 1,603 8,670 5,897 16,170 -11.11% 7.58%Adult Basic/Secondary 1,865 9,193 12,965 24,022 -6.47% 11.25%Total Reimbursable 30,575 85,651 87,214 203,439 -6.42% 95.31%Total Non-reimbursable 1,791 3,970 4,243 10,004 -0.04% 4.69%Total Credit Hours 32,365 89,621 91,457 213,443 -6.13%

NOTE: Does not include chargeback credit hours


Total and Reimbursable Credit Hours by Instructional/Funding Category

97

170,000

180,000

190,000

200,000

210,000

220,000

230,000

240,000

250,000

FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14


Total Credit Hours


Comparisons of Credit Hours Information

History of Reimbursable/Total Credit Hours

Fiscal Year 2014 Reimbursable Credit Hours by Instructional Category

Baccalaureate 59.80%

Business 8.51%

Technical 5.19%

Health 6.75%

Developmental 7.95%

Adult Basic/Secondary 11.80%

98

FiscalYear Baccalaureate Business Technical Health Remedial ABE/ASE

2005 21.72 27.90 59.26 94.88 18.68 56.872006 19.31 27.02 61.05 89.33 13.82 46.372007 19.06 23.62 59.36 91.58 15.78 56.232008 18.61 22.98 61.65 97.19 16.01 51.422009 20.04 23.00 55.31 94.09 16.49 51.972010 19.41 29.96 55.39 90.56 14.40 56.452011 13.13 46.98 49.45 101.94 9.51 80.272012 NA (1) NA (1) NA (1) NA (1) NA (1) NA (1)2013 (2) 21.26 34.96 30.96 58.91 7.03 58.712014 21.98 35.66 31.80 54.87 9.66 57.492015 22.46 32.25 33.24 54.24 9.96 65.99

(1) For FY2012, total reimbursed dollars were frozen at FY2011 levels; thus Oakton's total credit hour grant was $5.6 million, the same amount Oakton was granted in FY2011. (2) For FY2013, the above rates were published in the Fall of calendar 2012. State funding available to all Illinoiscommunity colleges was reduced for FY13. The ICCB reviewed funding of all programs and allocated amountsso as to maintain credit hour and equalization grant funding relatively "whole" for each of the colleges. Othergrant programs were adjusted to enable such funding and the grant rates by instructional category reported abovewere derived as a function of total available funding, general maintenance of funding levels by college, actual credit hours by college and relative instructional costs.

SOURCE: ICCB Reports and College records


History of ICCB Credit Hour Grant Rates By Instructional Category

Community colleges receive Base Operating Grants (also called apportionment allocations) based upon credit hours generated by students who are residents of the State of Illinois. Credit hour rates for each instructional category are established by General Assembly legislative action based upon recommendations from various agencies beginning with the ICCB and ending with the Governor's office. Rates vary from year to year within each category. Categories are not proportionally linked (so that all rise or fall in unison). Grant rates are applied to credit hours earned by the college two fiscal years previously, (i.e., credit hours earned in Fiscal Year 2011 were reimbursed at the Fiscal Year 2013 credit hour grant rates in each instructional category).

99


Notes


100

Oakton FTE Enrollment by Program FY 12 FY 13 FY 14

Baccalaureate Programs 4,979 4,890 4,639Percent Baccalaureate 77.60% 77.45% 77.06%

Vocational Programs 1,437 1,423 1,381Percent Vocational 22.40% 22.54% 22.94%

Total FTE 6,416 6,314 6,020

ALLiance Enrollment by Program FY 12 FY 13 FY 14

Continuing Ed. for Health Professionals 9,875 7,819 7,939 ESL 3,839 3,614 3,474 General Programs 2,975 2,734 2,710 Business Institute 933 586 658 GED 906 1,024 850 Evening High School 370 342 283 Co-Listed Programs 414 440 361 NIPSTA 1,731 1,854 2,171 Literacy 1,300 1,203 1,125

Total Enrollments 22,343 19,616 19,571


Enrollment Statistical Data

The Oakton enrollment by program statistical data is based upon full-time equivalents for all three semesters. Enrollment data reported here is consistent with mid-term enrollments, in student credit hours, as reported to the ICCB. One full-time equivalent (FTE) student is defined as 30 student semester credit hours.

The ALLiance enrollment by program statistical data is based upon total fiscal year headcount and includes duplicated counts of students.

101

Community Service Program Participation FY 12 FY 13 FY 14

6 Piano Ensemble 570 570 570 Academic Skills 918 774 596 All Student Gathering 168 130 100 Emeritus Humanities Festival 56 82 37 Emeritus Seminars 1,003 1,174 1,118 Futures Unlimited 304 370 322 Math Awards Ceremony 60 50 80 Math Competition 93 85 120 Oakton STEM Camp: - 15 42 OCC Annuitant Association 250 235 238 Passages Lectures 479 290 268 Passport to the World 622 647 679 Shakespeare Festival 66 - - SIT-SIMs 68 68 68 STEM Speaker Series 202 245 490 Other Community Service Programs* 9,463 3,998 8,831

Total Participation 14,322 8,733 13,559

*Based on voluntary submissions of data for a variety of college events. Significant fluctuations may occur due to the number of events held and the availability of data


Enrollment Statistical Data (cont.)

Community service programs make available to students and district residents services and cultural events not otherwise provided by the College. Programs include lecture series, special events and non-credit classes and seminars.

102

** Excludes Chicago City CollegesNOTE: Latest available data.SOURCE: ICCB Data and Characteristics

FiscalFall Local Select Total % Increase

Term Area State** State** State** State StateFY OAKTON Average Highest Lowest Average Average Average

2004 11,212 13,204 29,854 2,077 7,879 9,313 -0.50%2005 11,040 12,805 27,117 1,975 7,741 9,047 -2.86%2006 10,597 12,625 26,032 2,032 7,708 8,987 -0.66%2007 10,805 12,569 25,768 2,049 7,641 8,905 -0.92%2008 10,747 12,919 25,668 2,124 7,828 9,158 2.84%

2009 12,087 13,658 27,083 2,118 8,389 9,845 7.50%2010 11,837 13,521 26,722 1,906 8,338 9,737 -1.10%2011 11,175 13,290 26,209 1,966 8,192 9,553 -1.89%2012 11,402 12,853 26,156 1,883 7,844 9,194 -3.76%2013 10,866 12,579 28,627 1,784 7,650 9,015 -1.95%

Prev Yr -4.70% -4.31% 9.45% -28.86% -4.11% -3.99%10 Year -3.09% -4.83% 52.96% -46.06% -3.22% -3.26%


Comparison of Student Enrollment Information Fall Term Student Headcount

The public community colleges in Illinois enroll more that fifty percent of all students enrolled in undergraduate higher education in the state. The fall term student headcount is the opening enrollment for the fall term as of the tenth day of the term, which is approximately when regular registration for classes ends (regular plus late registration). This count does not include students who register for classes which may start later in the term. It does not directly relate to credit hour grant claims of enrollment because some students will later drop courses for which they were enrolled on the tenth day. It is interesting to note that approximately sixty-two percent of the enrollments are for part-time students. Headcount figures are also informative because of the requirements the number of students place on the systems which support direct instruction; there is a distinct difference in support requirements between one student taking five classes and five students taking one class each. (See reimbursable credit hour comparison).

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

OAKTON Area Avg Select State Avg

103

Associate Associate AssociateAssociate in Associate in in

in Fine in Science AppliedYear Arts Arts Science Engineering Science Diploma Certificate TOTAL

79 - 80 130 3 150 7 71 36180 - 81 162 11 121 5 100 39981 - 82 190 14 141 4 128 47782 - 83 207 9 174 2 132 52483 - 84 195 14 278 12 153 65284 - 85 240 18 259 171 68885 - 86 245 7 272 136 66086 - 87 251 11 230 152 64487 - 88 246 12 199 160 61788 - 89 321 16 178 126 64189 - 90 315 17 171 190 69390 - 91 309 19 175 149 65291 - 92 293 12 179 193 67792 - 93 319 8 193 125 64593 - 94 222 17 183 163 58594 - 95 240 9 244 218 71195 - 96 222 14 262 207 70596 - 97 205 24 211 224 66497 - 98 220 16 190 169 59598 - 99 234 1 11 180 212 63899 - 00 201 2 5 138 252 59800 - 01 217 0 4 159 242 62201 - 02 183 1 7 158 246 59502 - 03 255 2 17 155 429 85803 - 04 275 2 14 201 535 1,02704 - 05 258 0 16 214 856 1,34405 - 06 251 0 10 6 216 639 1,12206 - 07 266 2 7 4 249 605 1,13307 - 08 269 1 8 4 228 507 1,01708 - 09 267 1 5 4 227 674 1,17809 - 10 286 0 14 2 220 705 1,22710 - 11 335 2 5 9 222 741 1,31411 - 12 306 2 11 2 244 671 1,23612 - 13 365 4 13 5 226 682 1,29513 - 14 569 2 8 8 225 740 1,552

TOTAL 9,069 22 406 44 7,072 30 11,703 28,346


History of Academic Awards

Fiscal Years 1980 - 2014

This table shows the number of Academic Awards students have earned each fiscal year in the past 35 years of the College.

PerPer Credit Hour ** One- Proof of Per Class Credit Hour Per

In Out of Out of time Residency Semester Late Change/ Returned Student Credit HourFiscal District District State Application Submission Registration Registration Reinstatement Check Activities Transcript ConstructionYear Tuition Tuition Tuition Fee Late Fee Fee Fee Fee Fee Fee Fee Fee

93 - 94 30.00 110.00 125.00 15.00 10.00 25.00 25.00 25.00 1.25 3.0094 - 95 32.00 114.00 129.00 15.00 15.00 25.00 25.00 25.00 1.25 3.0095 - 96 33.00 118.00 133.00 25.00 15.00 25.00 25.00 25.00 1.2596 - 97 35.00 128.00 153.00 25.00 15.00 25.00 25.00 25.00 1.2597 - 98 37.00 138.00 173.00 25.00 15.00 25.00 25.00 25.00 1.2598 - 99 39.00 148.00 193.00 25.00 15.00 25.00 25.00 - 50.00^ 25.00 1.2599 - 00 42.00 126.00 168.00 25.00 15.00 25.00 25.00 - 50.00^ 25.00 1.2500 - 01 45.00 135.00 180.00 25.00 15.00 25.00 25.00 - 50.00^ 25.00 1.2501 - 02 50.00 150.00 200.00 25.00 15.00 25.00 25.00 - 50.00^ 25.00 1.8002 - 03 54.00 150.00 200.00 25.00 15.00 25.00 25.00 - 50.00^ 25.00 2.6003 - 04 58.00 174.00 216.00 25.00 15.00 25.00 25.00 - 50.00^ 25.00 2.6004 - 05 62.00 183.00 247.00 25.00 27.00 - 52.00 15.00 25.00 - 50.00 25.00 - 50.00^ 25.00 2.6005 - 06 69.00 204.80 263.50 25.00 27.00 - 52.00 15.00 25.00 - 50.00 25.00 - 50.00^ 25.00 2.6006 - 07 75.00 225.00 283.30 25.00 27.00 - 52.00 15.00 25.00 - 50.00 25.00 - 50.00^ 25.00 2.6007 - 08 82.00 233.86 296.59 25.00 27.00 - 52.00 15.00 25.00 - 50.00 25.00 - 50.00^ 25.00 2.60 3.00 - 10.0008 - 09 84.00 261.46 317.30 25.00 27.00 - 52.00 15.00 25.00 - 50.00 25.00 - 50.00^ 25.00 2.60 3.00 - 10.0009 - 10 86.00 272.00 329.00 25.00 27.00 - 52.00 15.00 25.00 - 50.00 25.00 - 50.00^ 25.00 2.60 3.00 - 10.0010 - 11 91.00 287.88 348.16 25.00 27.00 - 52.00 15.00 25.00 - 50.00 25.00 - 50.00^ 25.00 2.60 3.00 - 10.0011 - 12 91.00 287.88 348.16 25.00 27.00 - 52.00 15.00 25.00 - 50.00 25.00 - 50.00^ 25.00 2.60 10.00 - 20.00 2.0012 - 13 93.75 287.88 348.16 25.00 27.00 - 52.00 15.00 25.00 - 50.00 25.00 - 50.00^ 25.00 2.60 10.00 - 20.00 2.0013 - 14 95.34 287.88 370.05 25.00 27.00 - 52.00 15.00 25.00 - 50.00 25.00^^ 25.00 3.00 10.00 - 20.00 2.0014 - 15 103.25 288.00 366.00 25.00 27.00 - 52.00 15.00 25.00 - 50.00 25.00^^ 25.00 3.00 10.00 - 20.00 2.00

**Open computer lab fees are now included in tuition. FY94 - FY98 a separate $25 fee was required.^For students dropped for non-payment, the exact fee is based on the date the student requests reinstatement; there is no fee for course/class changes.^^A fee of $25.00 is charged each time a student is dropped by the College for non-payment of tuition and fees and wishes to register again for the same term/session:This fee was renamed Re-Registration fee in 2013.Note: A parking fee of $2.50 in FY 91 and $10.00 FY 92 - FY 01 was charged. This fee was discontinued beginning FY 02

104

This table shows the history of the tuition rates and various fixed fee charges. Individual class fees are excluded (i.e., lab fee for biology classes). All amounts are in dollars.


History of Tuition and Fee Charges - Fiscal Years 1994 - 2015

FY 2010 FY 2011 FY 2012 FY 2014 Recipients Dollars Recipients Dollars Recipients Dollars Recipients Dollars Recipients Dollars

Federal Pell Grant 2,552 7,543,966 2,860 8,436,694 2,843 7,996,995 2,718 7,669,514 2,615 7,553,881Federal Supplemental Educational Opportunity Gran 289 143,200 236 119,700 254 130,100 417 210,614 284 143,200G.I. Bill (Veterans Chapters 30, 33, 1606, 1607) 174 N/A 186 N/A 189 N/A 166 N/A 173 N/A G.I. Bill (Veterans Chapter 911) N/A N/A 109 328,987 169 343,695 121 318,370 138 178,400G.I. Bill (Veterans Dependents) 8 N/A 18 N/A 7 N/A 9 N/A 12 N/A G.I. Bill (Veterans Vocational Rehabilitation) 5 47,987 4 23,193 6 12,417 0 0 1 1,063Illinois Veterans Grant 100 171,190 69 134,698 50 86,232 53 113,970 50 109,688Illinois Department of Vocational Rehabilitation 5 47,978 4 23,193 6 12,417 0 0 1 1,063Illinois State Monetary Award 1,344 1,283,262 1,207 1,161,960 1,213 1,047,220 1,124 987,626 996 905,223Illinois National Guard Grant 9 16,294 7 17,099 6 21,306 4 9,967 9 13,910Illinois POW/MIA Scholarship 2 4,088 1 2,620 3 4,205 7 7,753 2 1,867Federal Stafford Loan 466 818,727 484 960,609 317 1,014,358 265 700,180 237 646,212Military Tuition Assistance (Active Duty Personnel) 8 7,906 9 12,315 4 3,194 1 1,125 4 2,819OCC Foundation & Institutional Scholarship 284 343,248 478 479,262 560 597,375 560 556,895 437 463,350Student Government Association Grant 201 152,172 281 240,420 296 246,268 279 243,715 277 247,333Workforce Investment Act (WIA) 78 85,190 80 81,321 48 45,482 24 23,826 14 12,457Private/Organizational Scholarships 100 90,237 112 116,798 200 179,118 96 100,326 103 107,079Federal Work Study Program 27 61,695 30 61,690 34 61,245 30 61,272 33 63,300

TOTAL (Duplicated student count) 5,652 10,817,140 6,175 12,200,559 6,564 11,801,627 5,874 11,005,153 5,386 10,450,845

TOTAL (Unduplicated student count) 3,477 3,991 4,006 3,764 3,538Average Federal Pell Grant Award $2,956 $2,950 $2,813 $2,822 $2,889Maximum Federal Pell Grant Award $5,350 $5,550 $5,550 $5,550 $5,645

FY 2013

105


History of Financial Aid to Students - Fall Semester Comparative Data

The following data is based on an academic year. The data reflects the history of the number of students receiving financial aid awards through the College. The information includes federal grants, loans, state grants, institutional grants, and private scholarships. As the data clearly shows, financial aid is increasingly important in supporting students in their educational objectives. In FY 2010, 3,477 students received some type of financial assistance compared to 3,538 students in FY 2014

106

LocalArea* State State State°

Oakton Average Highest Lowest Average

PROPERTY TAX RATES Tax Levy Year 2012 Collected in 2013**

Education Fund 16.61 19.46 37.29 ^ 12.00 20.53Operation/Maintenance Fund 3.67 6.35 10.00 ^ 2.50 6.27

Total Operating Funds: 20.28 25.81 44.79 ^ 16.00 26.81Liability, Protect, Settle Fund 0.00 1.11 15.68 ^ 0.00 4.94Bond and Interest Fund 1.49 4.69 29.31 ^ 0.00 9.97Audit Fund 0.04 0.16 0.50 ^ 0.01 0.26All Other 0.00 1.26 13.30 ^ 0.00 3.41

Total All Funds: 21.81 33.02 77.74 ^ 19.00 45.37Percent change for 2012 11.45% 9.43% 36.68% # -3.08% 4.24%

TUITION AND FEE RATES

Fiscal Year 2014 Tuition 95.34 103.20 140.00 ^ 77.00 102.08Fiscal Year 2014 Fees*** 5.00 14.36 32.85 ^ 0.00 10.85Total Fiscal Year 2014 100.34 117.56 140.00 ^ 92.00 112.65

Fiscal Year 2015 Tuition 103.25 108.87 145.00 ^ 77.00 106.83Fiscal Year 2015 Fees*** 5.00 16.56 35.85 ^ 0.00 11.94Total Fiscal Year 2015 108.25 125.43 145.00 ^ 92.00 118.77

Dollar Increase FY 2015 7.91 7.87 18.00 0.00 6.12Percent Increase FY 2015 7.88% 7.11% 17.48% # 0.00% 5.48%

5 Year % Increase 25.00% 39.99% 75.36% # 14.17% 42.50%10 Year % Increase 86.64% 117.55% 153.19% # 78.33% 119.37%

*Local Area Colleges included in the average are DuPage, Elgin, Harper, Lake County, Moraine Valley,Morton, Oakton, Prairie State, South Suburban, and Triton.**Rates are cents per $100.00 of Equalized Assessed Valuation, calendar year basis.^ Data is for individual colleges and is not cumulative. ***Average fee rate per credit hour.°For tax rates, includes all 40 colleges even if levy is zero. # Data is for individual college totals.SOURCE: ICCB Data and Characteristics and other ICCB reports


Comparison of Property Tax Rates and Tuition and Fee Rates

107

* Oakton (at 21.81) is one of the lowest in the state

0.00 20.00 40.00 60.00 80.00

Oakton*

Local Area Average

State Highest

State Lowest

State Average


Property Tax Rates - Tax Levy Year 2012

Tax Rate in Cents per $100.00 EAV

0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00

State Average

Oakton

Local Area Average

State Highest State Lowest

Tuition and Fee Rates Fiscal Year 2015

Combined Tuition and Fees per Credit Hour

108

Tax Levy CategoryOperation/ Liability/ Bond & Total

Tax Education Maintenance Protection Audit Interest Other TotalYear Fund Fund Fund Fund Fund Taxes Rate

2003 .1411 .0381 .0025 ^ .0006 .0000 ^ .0031 ^ .1852004 .1211 .0327 .0031 ^ .0006 .0000 ^ .0026 ^ .1602005 .1190 .0317 .0028 ^ .0006 .0000 ^ .0031 ^ .1572006 .1250 .0330 .0034 ^ .0006 .0000 ^ .0031 ^ .1652007 .1068 .0279 .0027 ^ .0004 .0000 ^ .0026 ^ .1402008 .1073 .0275 .0025 ^ .0001 .0000 ^ .0026 ^ .1402009 .1071 .0271 .0025 ^ .0004 .0000 ^ .0027 ^ .1402010 .1266 .0298 .0028 ^ .0004 .0000 ^ .0000 ^ .1602011 .1480 .0336 .0000 .0001 .0139 .0000 .1962012 .1661 .0367 .0000 .0004 .0149 .0000 .2182013 .1964 .0419 .0000 .0005 .0171 .0000 .256

% Change32.70% 24.70% 0.00% 400.00% 23.02% 0.00% 22.56%

OCC Tax Rate Ceiling.7500 .1000 None .0050 N/A None

2011 State Average.2053 .0627 .0494 .0026 .0997 .0269 .4537

^For comparative purposes, assumed to be at maximum; see PROPERTY TAXES discussion.

Assessed Cap Exempt Estimated Levy % Valuation % Property Value % % Actual ValueYear Equalizer Change (000,000) Change (000,000) of Total Change (000,000) Notes2003 2.4598 -0.37% 16,730 1.01% 168 1.00% 3.47% 50,1902004 2.5757 4.71% 19,683 17.65% 187 0.95% 11.35% 59,049 (1)2005 2.7320 6.07% 21,252 7.97% 423 1.99% 126.57% 63,7572006 2.7076 -0.89% 21,383 0.61% 354 1.66% -16.38% 64,1482007 2.8439 5.03% 26,373 23.34% 405 1.54% 14.46% 79,120 (1)2008 2.9786 4.74% 28,093 6.52% 290 1.03% -28.32% 84,2792009 3.3700 13.14% 28,516 1.51% 372 1.30% 28.12% 85,5492010 3.3000 -2.08% 25,888 -9.22% 182 0.70% -51.08% 77,665 (1)2011 2.9706 -9.98% 23,302 -9.99% 100 0.43% -45.05% 69,9052012 2.0856 -29.79% 21,609 -7.27% 133 0.62% 33.00% 64,8272013 2.6621 27.64% 18,909 -12.49% 80 0.42% -39.85% 56,726

(1) Reassessment of the total district.Source: Cook County Clerk's Office and College recordsNOTE: Latest available data.


The tables below show the history of the tax rates and assessed valuations for property in the College district. Refer to the PROPERTY TAXES portion of the FINANCE AND ACCOUNTING section for a discussion of taxes and rates. The ceiling rate is calculated using ceilings only for those levy categories actually in use.

Ten Year History of Tax Rates and Assessed Valuations

Tax Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 %Taxing Bodies IncrCook County (Incl Health) .630 .593 .533 .500 .446 .415 .394 .461 .461 .530 .560 5.66%Cook County Forest Preserve .059 .060 .060 .057 .053 .051 .049 .051 .057 .063 .069 9.52%Metropolitan Water Reclamation District .361 .347 .315 .284 .263 .252 .261 .274 .319 .370 .417 12.73%Suburban T.B. Sanitarium .004 .001 .005 .005 .000 .000 .000 .000 .000 .000 .000Consolidated Elections .029 .000 .000 .000 .012 .000 .021 .000 .025 .000 .031 100.00%City of Park Ridge (Incl Library) 1.000 .902 .887 .915 .793 .761 .780 .870 .985 1.089 1.354 24.39%Park Ridge Recreation and Park District .338 .299 .331 .337 .286 .278 .279 .307 .344 .391 .554 41.83%Maine Township .079 .071 .084 .073 .065 .064 .067 .075 .084 .096 .120 25.65%Maine Township General Assistance .016 .015 .015 .016 .015 .015 .016 .018 .020 .023 .029 26.64%Maine Township Road and Bridge .040 .036 .036 .038 .034 .033 .034 .038 .043 .048 .061 26.56%Northwest Mosquito Abatement .010 .009 .009 .009 .008 .008 .008 .009 .010 .011 .013 21.50%School District 64 2.829 2.526 2.582 3.016 2.850 2.685 2.686 2.951 3.284 3.658 4.572 24.98%Maine Township HS Dist 207 2.012 1.795 1.757 1.826 1.602 1.577 1.617 1.782 1.995 2.215 2.722 22.89%Sub-total Overlapping Rate 7.407 6.654 6.614 7.076 6.427 6.139 6.212 6.836 7.627 8.493 10.502 23.66%

Oakton Community College .186 .161 .157 .165 .141 .140 .140 .160 .196 .218 .256 17.38%

Total Rate 7.593 6.815 6.771 7.241 6.568 6.279 6.352 6.996 7.823 8.711 10.758 23.50%

Oakton Percentage of Total 2.450% 2.360% 2.322% 2.280% 2.147% 2.230% 2.204% 2.287% 2.500% 2.504% 2.380% -4.96%

* Tax rates are assessed in dollars per hundred at equalized assessed value (EAV).NOTE: Tax rates displayed are representative for property within the district and are based on the latest available data.Source: A local taxpayer's property tax bill.

109


Typical History of Property Tax Rates - Overlapping Governments* Taxes are Actually Collected the Year After

Latest Available Data

110

LocalArea* State** State** State**

Use Category Oakton Average Highest Lowest Average

Educational Uses 206,445 293,412 563,423 53,685 204,344% Education /(NASF) 48.71% 50.90% 60.64% 16.80% 48.89%Administration 129,566 149,447 283,507 27,135 105,597Athletics/Physical Education 17,003 23,507 59,983 0 26,604Theater/Auditorium 9,908 18,375 55,333 0 13,132Special Use 5,112 10,727 29,092 0 8,689Other General 55,802 100,633 535,844 13,358 57,256

Net Assignable Square Feet (NASF) 423,836 596,100 1,425,141 126,339 423,437% Assignable 69.23% 64.73% 76.03% 54.49% 66.19%

Gross Square Feet (GSF) 612,225 912,634 2,012,722 186,419 641,733

NASF/Credit Hour 1.9 2.4 4.8 1.4 3.0GSF/Credit Hour 2.8 3.8 8.4 2.4 4.6NASF/Enrollment^ 39.0 48.6 121.8 29.5 64.8GSF/Enrollment^ 56.3 75.6 183.2 48.2 98.1O & M Costs/NASF 17.36 15.21 20.83 6.34 11.29Percent O & M Costs Change 5.95% 1.31% 114.25% -18.29% 3.55% from Previous FY

*Local Area Colleges included in the average are DuPage, Elgin, Harper, Lake County, Moraine Valley,Morton, Oakton, Prairie State, South Suburban, and Triton.**Excludes Chicago City Colleges^Fall term headcount enrollment.SOURCE: ICCB Data and Characteristics


This table compares various characteristics of physical plant facilities. Educational space is a combination of classrooms, labs, and study space. The administration category is a combination of office, support, and health facilities. Other general square footage consists of general use and unclassifiable space. The remaining categories are single categories as defined by the ICCB. The data clearly shows that Oakton compares favorably with other community colleges in economical credit hour/student/space utilization ratios. The economy of space is also reflected in reduced utility costs, efficient operations and maintenance (O & M) costs, and lower total physical plant investment dollars per student. (All data in square feet except O & M costs in dollars.)

Comparison of Facilities and Use - Fiscal Year 2013 Square Footage Data

111

200

400

600

800

1000

1200

1400

1600

1800

2000

Education Use Net Assignable Square Feet Gross Square Feet

Oakton Local Area State Highest Lowest Average

(000)


Comparison of Facilities and Use - Fiscal Year 2013 Square Footage Data

Comparison of Education, Net Assignable, and Gross Square Footage

NASF/Credit Hour NASF/Enrollment^ O & M Costs/NASF

Oakton Local Area State Highest Lowest Average

(Adjusted relative values)

Comparison of Square Footage Data to Enrollment/Cost Data

112

LocalArea* State State State

Fiscal Year Oakton Average Highest Lowest Average

History of Utility Costs per Gross Square FootFY 2003 1.59 1.70 2.77 0.60 1.53FY 2004 1.45 1.66 2.25 0.73 1.55FY 2005 1.45 1.77 2.53 0.73 1.61FY 2006 1.75 2.03 2.99 1.22 1.84FY 2007 1.93 2.09 2.89 1.10 1.86FY 2008 2.11 2.29 2.98 1.22 2.09FY 2009 2.14 2.43 3.32 1.24 2.12FY 2010 2.05 2.22 2.81 0.89 1.94FY 2011 1.94 2.11 3.10 0.83 1.90FY 2012 1.95 1.86 3.34 0.81 1.72FY 2013 1.68 1.68 3.15 0.85 1.5910 Year Average 1.85 2.01 2.60 1.02 1.82

Additional Utility ComparisonsFY 13 Cost/Credit Hour 5.43 6.86 12.78 4.73 7.56FY 13 Cost/Student Headcount 108.62 134.47 326.00 87.63 160.93

SOURCE: ICCB Data and Characteristics and other ICCB reports

NOTE: Latest available data.


History and Comparison of Utility Costs These tables present a ten history of utility costs among the community colleges and selected additional analysis. Costs include fuels, electricity, water, and sewage services. Utility costs can vary significantly based upon climatic conditions and factors such as age of the facility, number of buildings, rentals, and type of fuel used, so conclusions about energy efficiency should be drawn with care. Analysis indicates no significant difference in energy costs by geographic location. The ten year average mediates weather extremes but does not account for inflation or other factors.

0.25

0.75

1.25

1.75

2.25

2.75

3.25

3.75

FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13

Oakton Area Average State Average Highest Lowest

APPENDIX SECTION

114


Functional Areas and Programs

The College’s structural organization reflects that of most community colleges; similar functions and programs are grouped to facilitate coordination and control of activities to further the College’s mission. The financial structure generally follows this functional organization concept. For specific information, refer to the various organization charts. The information provided below, with the exception of the Office of the President, generally follows the College’s chart of accounts structure used by the budget and the general ledger. Individual instructional programs are not included. Note: Those interested in descriptions of instructional programs and/or classes should refer to the current College Catalog at http://www.oakton.edu/about/instpubs/catalog2014-15.pdf

http://www.oakton.edu/about/instpubs/catalog2014-15.pdf�

115

Current Unrestricted Funds Group

Education Fund Office of the President The President provides leadership, direction, and guidance for all aspects of the College’s activities and operations and provides administrative focus for the academic programs, student development, community services, and business services of the College within policies approved by the Board of Trustees. The President implements and emphasizes continuous program evaluation and coordinates strategic planning for the College as a whole. In addition to the Vice Presidents, the Executive Director for Human Resources; Executive Director of Education Foundation; and Assistant to the President report directly to the President. Instructional Administration

FY13 Actual FY14 Budget

FY14 Actual (1)

FY15 Budget

Baccalaureate/Instruction $22,020,095 $23,138,452 $22,101,700 $23,994,198 Vocational/Instruction 10,457,321 11,252,895 10,552,879 10,646,745 Instructional Support/Administration

14,658,448

17,173,540

15,039,151

17,102,032

Total $47,135,864 $51,564,887 $47,693,730 $51,742,975 (1) Amount reported from the preliminary year end close and does not reflect any audit adjustments that may arise.

Instructional administration encompasses the functions of establishing, conducting, and evaluating the entire instructional program at the College. Responsibilities include reviewing and expanding curricula; managing the articulation process; coordinating academic strategic planning within the College; assessing, developing, and implementing special instructional services to selected students within the general student population (e.g., the Honors Program, Global Studies, Great Books and Alternative Education). The Office of the Vice President for Academic Affairs is included in the budget category of instructional administration. This office coordinates and implements the functions of instructional administration. Included in instructional administration are the offices of the four academic deans, each with responsibility for coordinating the instructional program areas assigned to their respective divisions. Activities include providing administrative support to the faculty and classes; supervising and evaluating faculty performance, training, and professional development; and coordinating, implementing, and reviewing specific classes and disciplines. The academic divisions include Science and Health Careers; Mathematics and Technologies; Languages, Humanities, and the Arts; and Social Sciences and Business. The Assistant Vice President of Academic Affairs/Dean of the Ray Hartstein Campus provides site supervision of the educational programs at the Skokie campus and oversees the assessment function – assessing student outcomes in both academic achievement and personal development.

116

Strategic Goals for Instructional Administration – Academic Excellence: • All programs will use the results of learning outcomes assessments to improve

teaching and learning • Oakton will offer hybrid sections in at least 40 different courses across disciplines

by spring 2017 • Oakton will encourage faculty to develop and deliver innovative content,

materials and pedagogy • Oakton will expand opportunities for students, inside and outside the classroom,

to participate in activities that engage them with issues that confront local and global society

• Oakton will strengthen career program advisory committee and linkages with business and industry to respond to changing and emerging workforce development needs

• The College will enhance opportunities for students to have workplace experiences through expanded internships, partica, clinical, service learning, and other activities

• Oakton will use the College campuses as living laboratories for courses and activities that emphasize the study and practice of sustainability

This function also includes assisting in curriculum development and strategic planning, overseeing staffing, and providing administrative support for faculty at this campus. The Research function includes developing, designing, implementing, analyzing, and presenting research relating to instructional and support program evaluations. Research also is responsible for coordinating and managing the academic details of the College’s strategic planning process. The Honors Program provides opportunities for academically talented students to take challenging courses in preparation for transfer to a four-year college or university. With small classes and the enriched curricula, the Honors Program creates a sense of community among the students. Global Studies helps students understand the complex interrelationships among nations and peoples within the global society. The program establishes a unique foundation for students to pursue varied majors and careers, from liberal arts to social sciences to business. The Center for Professional Development provides administrators, faculty, and staff with opportunities to acquire new skills or to improve old ones. The CPD allows employees to broaden their perspectives in both the theoretical and practical developments in their fields. The Office of Alternative Education offers media-based and Internet-based course delivery options that may not require physical attendance during the regular week. Distance Learning courses require as much or more work than traditional on-site courses, but offer students the flexibility of studying each week at a schedule, place, and time convenient for them.

117

Profile: Achieving the Dream In Fall 2013, Oakton Community College was accepted into the Achieving the Dream network. This national network comprised of over 200 colleges and state policy teams has a common goal to increase community college student persistence and degree attainment. The principles that focus colleges on student success include: 1) a student-centered vision, 2) equity & excellence, and 3) evidence-based decision-making. In pursuit of the Achieving the Dream objectives, Oakton has gathered student data to obtain a success baseline and begin discussions on possible barriers in a student’s academic path. Our current data collection and analysis involves cohort-level tracking for students who were new to Oakton in fall terms 2008, 2009, and 2010. Oakton has a total of 10,464 students in the cohort database, including 3,405 in fall 2008, 3,535 in fall 2009, and 3,524 in fall 2010. Oakton will analyze the data using the five indicators of success outlined by Achieving the Dream. These include:

1. Successfully complete developmental coursework and advance to credit-bearing courses.

2. Enroll in and successfully complete gateway courses 3. Complete all courses with grades of C or higher

4. Persist from one term to the next 5. Complete degree or certificate, as well as transfer and workforce placement

In addition, all of the above indicators of success will be disaggregated to ensure no achievements gaps are present across different populations of students. The indicators will be disaggregated by:

Academic support functions include activities that directly support instruction, but are not instructional per se (e.g., library services and instructional media services). Library services include circulating materials; updating and maintaining the library’s collection of books, periodicals, and other materials; and classifying all resident reference materials. Library services also include some electronic reference capabilities such as CD-ROM and on-line database searches. Instructional Media Services maintains, schedules, and distributes equipment, both on and off campus. Another major responsibility is helping faculty and students select, preview, order, and use instructional media materials. Library and Media Services Administration is responsible for developing, implementing, and coordinating activities within these two functional areas. Of particular importance is the continuing emphasis on implementing technological enhancements to serve the College.

118

1. Gender 2. Age at the time of cohort- 22 or under, 23 or over 3. Race/ethnicity – White, Black, Latino, Asian, Other/No Info 4. Socioeconomic status – as indicated by Pell grant status

The first year includes a review of the data with Oakton’s Achieving the Dream Coaches to help guide college-wide discussions on increasing student success. The Achieving the Dream leadership coach, David Hartleb, is a retired college president from Northern Essex Community College. The Achieving the Dream data coach, Brad Phillips Ph.D., is the President of the Institute for Evidence-Based Change.

Student Affairs Student Affairs supports students outside the classroom and enhances and facilitates their personal development within the College community. Functions include Athletics; Enrollment Services; Registrar Services; Student Life; Student Recruitment and Outreach; Learning Center, Access and Disability Resource Center, Student Success and Access, Equity and Diversity office. The Office of Access, Equity, and Diversity provides vital leadership to the College in celebrating diverse people and ideas, inclusiveness, global perspectives, and a strong sense of community. Key roles include enriching Oakton’s learning and working environments by attracting and supporting a more diverse faculty, staff, and student body; and helping students, faculty, staff, and visitors resolve complaints about harassment and/or discrimination. Other activities include teaching student government leaders and student orientation team leaders about equity issues; training campus police; delivering special presentations to classes about social justice and human rights; and overseeing health and wellness activities.

119

Athletics provides opportunities for students to participate in intercollegiate and intramural sports. The College is a member of the NJCAA and Skyway Community College Athletic Conference. (See Auxiliary Enterprises) Enrollment Services oversees the operations related to enrollment, including admission, registration, and student financial assistance. Key responsibilities include planning and administering the financial aid program and supervising the Enrollment Centers at the Des Plaines and Ray Hartstein campuses. The College offers federal, state and institutional financial aid to students. Participation in these financial aid programs enhances the College’s ability to provide students entry into higher education. Financial aid may be in the form of a grant, scholarship, loan, or on-campus employment. According to the federal Department of Education, the past two years have seen the largest increases in the history of the federal student aid programs. Record numbers of students are seeking access to funds in order to boost their chances of enrolling in college. Oakton’s financial aid data mirrors the national trend. In 2012-13 approximately one-third of its students received some type of financial assistance. The College is aware of the fiduciary responsibilities associated with managing federal and state funds. Each year the work of the financial aid office is audited as part of the federal A-133 audit process. In the last three years, the College has not had any audit findings that have resulted in the need to return federal or state financial aid funds. Registrar Services has overall responsibility for scheduling classes, processing class lists and grade sheets, maintaining academic records (grades and transcripts), and conducting graduation audits. Student Life provides experiences for cultural, social, and intellectual individual growth to augment classroom experiences. This office also develops and coordinates student organizations and special interest groups within the framework of College policies and procedures. Student Recruitment and Outreach activities include planning, organizing, coordinating, and implementing recruiting efforts in high schools, businesses, and other organizations throughout the College’s district. The Access and Disability Resource Center offices provides support and academic accommodations for students with documented disabilities, including sign language interpreters, adaptive equipment, books on tape, note-taking and reader services, enlarged printed materials, tutoring and academic advising.

Student Success oversees academic advising, career services, TRiO, new student orientation, and retention. Student Success also oversees the Learning Center which helps students become successful college students and independent lifelong learners. Services provided include the College Success Seminar Series and support and academic accommodations for non-native students. The Learning Center also operates the Reading and Writing Lab, Testing Center, and Tutoring functions.

120

Profile: Student Success Goals and Objectives Oakton will demonstrate a renewed commitment to student success. The College will cultivate and engage in practices that foster the attainment of academic, career, and personal outcomes determined and developed through collaboration between the student and the College. New Student Orientation Oakton continues its commitment to establishing the support services necessary to help our students be successful. The Director of Student Success works across the College to establish a college-wide approach to supporting students. Because Oakton recognizes that orientation and academic advising are critical components for student success, the Director (with administrative responsibilities for orientation and academic advising) implemented a redesigned orientation for new traditional-age students during summer 2013. Another significant aspect of this redesign involved assigning new students to an academic advisor who follows them throughout their Oakton career. Students met their advisor at the new student orientation and received regular communication and follow-up advising from the same advisor. As Oakton continues to move forward with its student success endeavors, the College is closely studying the data above to determine the causes of a reduced number of students attending orientation and/or meeting with their academic advisor at new student orientation. Past experience has shown that orientation and advising is much more comprehensive and effective if greater information is available about the student’s assessment test results. Guidelines requiring students to complete testing and other requirements prior to attending orientation and related events may have initially impacted the quantity of students who participated. However, persistence of those students who did participate (as outlined in greater detail below) indicate these students may ultimately experience greater success. It is important to note that students who do not participate in orientation, may still meet with academic advisors on an independent basis. In summer 2011, Oakton's New Student Orientation Board created the Oakton jOURney program. Whereas before Orientation was conceptualized as a one-day session prior to the start of students' first semester, Oakton’s new approach identifies orientation as an ongoing process that lasts throughout students' first year. To help students navigate their first year journey, all new traditional age students who participated in summer orientation were issued an Oakton orientation passport. This passport aimed to accomplish the following: to provide a list of campus resources, services, programs, and events to complement classroom instruction; to encourage students to build relationships with all members of the campus community; to help students recognize their contributions to the diversity of the College; and to help students understand their role in their own success. Student success related events from across campus were compiled, marketed, and new students were invited to participate in Oakton orientation events during their first semester.

121

Public Services FY13 Actual FY14

Budget FY14 Actual

(1) FY15

Budget Public Service $756,359 767,612 671,482 741,090

1) Amount reported from the preliminary year end close and does not reflect any audit adjustments that may arise.

Strategic Goals for Student Affairs – Student Success:

• The number of Oakton degrees and certificates earned by students will increase at least 15 percent by 2017, an additional 950 credentials

• The College will recognize at 15% improvement in students’ success in developmental and college-level gateway courses by 2017

• The College will require orientation for all new full-time students and strongly encourage participation for new part-time students, especially those for whom Oakton is their first college

• Oakton will support multiple pathways, including social media, through which current and prospective students can obtain information, transact business (e.g, register, pay bills, access grades) , and attend Oakton

• The College will expand opportunities for students to earn credit for prior learning

• Oakton will champion initiatives that foster a sense of belonging and engagement in the life of the College and in its programs and activities

• Oakton will increase connections with its district schools, especially around issues of mutual interest such as aligning curricula, improving students’ readiness for college, and providing opportunities for students to earn college credit prior to high school graduation through dual credit and other approaches

• Oakton will strengthen connections with other colleges and universities to promote transfer

122

The Koehnline Museum of Art focuses community attention on the visual arts with displays of student artwork as well as exhibitions by professional artists from the Midwest and throughout the country. Community Services coordinates and develops programs and services that meet the needs of the community such as the Emeritus Program and the Oakton Community College Alumni Association. The Performing Arts Center, a multi-purpose facility, promotes all aspects of the performing arts, with an emphasis on developing, housing, staffing, and maintaining a variety of events as well as hosting specialized meetings, seminars, and practical workshops. General Administration

FY13 Actual

FY14 Budget

FY14 Actual (1)

FY15 Budget

General Administration and General Institutional Functions

$6,075,467 7,825,411 5,882,167 7,701,550


General Administration includes those activities devoted to the general regulation, direction, and daily operation of the College. Although not functionally a part of General Administration as such, the Office of the President is budgeted in this program category. The Office of Grants and Alternative Funding is responsible for coordinating College efforts to apply for, secure, and administer federal, state, and other grants in accordance with College objectives. The Office of the Vice President for Business and Finance manages the business, finance, public safety and facility areas of the College. The Vice President also serves as the Treasurer of the Board of Trustees and oversees the Budget Office. Accounting Services is responsible for receiving and disbursing funds and recording the financial transactions of the College. This office provides financial guidance to the various segments of the College community and prepares the Comprehensive Annual Financial Report. Business Services manages the functional business service activities of the College and includes purchasing, shipping and receiving, printing services, the current cafeteria food service vendor, and the Bookstore.

Annual Objectives: • To maintain the College’s strong financial position • To improve collections of accounts of accounts receivable • To have prepared and review standard monthly financial statements and budget-to-

actual results • To oversee execution of the Operations and Maintenance capital projects • To oversee Emergency Planning and Preparedness • To maintain safety on campus

123

Human Resources manages a comprehensive system of personnel administration, including compensation, benefits, training and development, diversity initiatives and labor relations. The office is a resource for everyone except student employees with respect to personnel-related issues.

Profile: Recruiting and Hiring Staff and Faculty Demonstrating Key Multicultural Competencies During the 2012 fiscal year the College implemented additional programs to meet its goal of recruiting and hiring staff and faculty who demonstrate key multicultural competencies to serve the increasingly diverse student population. One of those key programs involves an assessment and analysis of current Oakton faculty search committee practices. The goal of the analysis is to develop and implement training for members of faculty and professional staff search committees to enable them to better identify cultural competencies within candidates. It will result in the new hires possessing core competencies for creating an inclusive campus community for students, community members and employees. Focus groups were used to gather feedback from recent hires and search committee members about the search process and their suggestions for improvement. Information from the focus groups was analyzed and synthesized for use in creating the training for members serving on the faculty search committees for the 2012 and 2013 academic years.

124

College Advancement serves a dual function: to inform the community about College programs and services and to raise funds through the Educational Foundation for compelling initiatives not supported by the College budget or other grants. In keeping with the College’s mission to support “excellence in teaching and learning,” College Advancement develops and implements marketing strategies – advertising, direct mail, print and electronic publications, public and media relations, special events, and Web sites – that seek to inform the community about programs and services and encourage participation in them. The office also produces and

The objectives of the focus groups: • To identify barriers to attracting, hiring, selecting and retaining diverse faculty

and staff • To identify potential cultural biases in the search and hire process and their

impacts • To understand the role that search committees and the college culture play in the

recruitment, hiring and retention of culturally competent and/or diverse faculty and staff.

Outcomes:

• Lack clear understanding of cultural competence and why it is an Oakton Community College imperative.

• Culturally the College has a visual awareness but lacks shared understanding of the implications for faculty staffing.

• In interview teams there was confusion about cultural competency and “hiring qualified candidates.”

• Awareness of issues in selection and hiring of full-time faculty differs among demographic groups.

As a result of the outcomes of the focus groups, a training program for faculty search committees was developed. The objective of the “Search Committee Cultural Competency Training” included:

• Exploring and defining the concepts of culture, race, ethnicity and cultural competence.

• Clarifying the need for personal and organizational commitment to cultural competence especially in the hiring and selection process at Oakton.

• Recognizing behavioral event interviewing as the key to identifying culturally competent applicants.

All faculty, administrators and staff who were selected to serve on a faculty search committee were required to participate in a half-day search committee Cultural Competency Training. A summary of the evaluation showed participants rated the workshop effectiveness at a 4.3 on a 5.0 effectiveness scale. The College looked to hire faculty for 18 positions for the 2012-13 academic year. The Affirmative Action Plan goals for faculty hires during the 2011-12 plan year included a goal of hiring five non Caucasians to fill the 18 anticipated faculty vacancies. If achieved the percentage of Full-Time Faculty from underrepresented groups would increase from 14.0% to 17%.

125

distributes a variety of publications and sponsors a number of special and fundraising events each year. General Institutional The General Institutional category includes costs and activities not readily assignable to other organizational categories or which apply to the institution as a whole. Included are Board of Trustees costs, Commencement, search committee and Trustee election expenses, and costs associated with preparing for the North Central Association accreditation visit. The Board of Trustees, elected by the people of District 535, exercise legal control of the College under the laws of the State of Illinois. Trustees set the policies which govern the College, authorize all significant financial transactions, and approve the financial plan. Institutional Memberships/Accreditation include memberships in professional and educational associations maintained for recognition and accreditation of the institution as a whole. Central Services, which provides general institutional support to College offices, includes shipping and receiving, central supplies services, and mailroom functions. Other institutional expenses include expenses which are distributed throughout the institution but recorded in a central account for budgetary control. Included are a series of accounts recording some fringe benefit expenses and allocation of those expenses to all areas of the College. The Commencement program records the costs of the Commencement ceremony in May when graduates receive their diplomas and certificates. Chargebacks and Contingency include the cost of district students attending other community colleges for programs not offered by Oakton. Contingency funds are set aside for unforeseen expenses occurring during the academic year. Operations and Maintenance of Plant Fund The Operations and Maintenance of Plant Fund includes activities that maximize the life of the physical facility in an economical manner and provide the facility planning and maintenance management necessary to meet the institutional educational objectives. Also included are building and grounds maintenance. The fund records receipts of rental property and property insurance costs, along with utilities costs such as gas, water, and electricity. The Transportation program maintains and schedules College vehicles for athletic events, field trips, and other College activities. Operations and Housekeeping maintain the cleanliness and sanitation of the campus buildings, a function that directly affects the morale of users, student achievement, and the ability to market the College to potential students and other campus visitors. The Public Safety function also falls into this fund.

126

Profile: Facilities Master Plan Goals and Objectives In December 2010, Oakton’s Board of Trustees approved a Five Year Master Plan for Facilities that will guide the College in replacing aging facilities and improving the campuses to reflect trends in higher education. The core focus of the Master Plan is providing a campus environment to offer students opportunities for success and an improved student experience. Enhanced facilities will provide a state of the art Science and Health Careers instructional building, flexible and spacious classrooms for all instructional disciplines, student gathering spaces for students to use in a variety of ways outside of the classroom and a single, centralized location to go to for enrollment, registration, advising and counseling and other key student services. Underlying these student focused improvements will be an updated, reliable infrastructure aspect of the Master Plan that will be implemented in a manner consistent with Oakton’s commitment to sustainability. Funding and project budgeting support total projected costs of $68.5 million with the majority of the budget (76.6%) allocated to support student success.

Oakton Facilities Master Plan - Sources and Uses of Funding Sources of Funding: General Obligation Bonds $40 million Reserve/Fund Balance $20 million Student Reserves and Fees $3 million State Grants $2 million Federal Grants $1 million Private Grants/Foundation Capital Campaign $2.5 million Total Funding Required $68.5 million Uses/Investment of Funding: Science and Health Career Building $39 million Classroom Upgrades $3.5 million Enrollment Center at the Des Plaines Campus $3.4 million Student Center/Gathering Space $1.9 million Student Related Remodeling $3.7 million Infrastructure $17 million Total Investment Required $68 5 million

127

In Spring 2011, Oakton issued $30.1 million of Debt Certificates as the initial step in issuance General Obligations Bonds. Such Bonds were issued in September 2011 and will be used to substantially fund construction of the Science and Health Careers building and bond proceeds were used to repay the Debt Certificates. In September 2014, the College issued a second series of General Obligation Bonds for $13.9 million. Proceeds from this second bond issue will be used to fund remaining capital projects of the Master Plan. A more detailed discussion of the bonds and other financing strategies is provided in the Capital Expenditures section of this Presentation Budget. Key investments of the Master Plan are as follows: Science and Health Careers Instructional Building Over the last 30 years, external factors such as changes in pedagogy, changes in the fields of science and increases in enrollment have compromised the effectiveness of science and health careers teaching spaces. The nature of health career programs and job trends indicating continued demand for such programs result in the need to bring current spaces up to contemporary and emerging standards.

A new Science and Health Careers Instructional Building is under construction to the east of the Des Plaines campus building. It is anticipated the building will approximate 93,000 square feet with three stories and it will be raised above the flood hazard zone. The Building will feature sophisticated labs; flexible, light-filled classrooms; enhanced technology; and abundant lab preparation and storage space.

With a planned completion for late Fall 2014, the new building will be brought on line for the Spring semester of FY2015.

128

Classrooms Classrooms at the Des Plaines Campus built in 1980 and 1983 have never been remodeled. As part of the College’s Master Plan all 40 of these classrooms have been remodeled. During winter break, December 2011/January 2012 four classrooms were remodeled with 4 different finishes, 4 different desks, 4 different chairs and 2 different teaching podiums and instructional technology. Instructors and students were then asked to complete surveys concerning what they thought were the best finishes, furniture and instructional technology equipment to enhance teaching and learning. Surveys were tallied and the highest rated finishes, furniture, and instructional technology equipment were selected as the standard for Oakton’s classroom remodeling initiative. The task chair selected is fully adjustable and cushioned, manufactured by Steelcase. The table selected will be used by two students and is manufactured by Herman Miller. Both the tables and chairs are equipped with casters so the furniture can be easily moved around and repositioned for collaborative learning assignments in the classroom. Lecterns are manufactured by Computer Comforts and provide the necessary functionality to support state of the art computer, video, audio and presentation technology. Light fixtures and light levels were improved, carpet and ceiling tiles replaced, and each classroom was painted with a colored accent wall. The College believes and there is growing evidence the quality of the learning environment improves teaching and learning thus upgrading a student’s educational experience. This concept of improving the student experience in all areas and activities of the College is the driving force of Oakton’s Five Year Master Plan. It is estimated that each classroom will cost $80,000 to remodel. This number includes $65,000 per classroom for construction and $15,000 for furniture and instructional technology. The newly remodeled classrooms will accommodate 27 students and this number includes one station for a special needs student.

129

Enrollment Center at the Des Plaines Campus Every student participates in the enrollment process at Oakton. The Enrollment Center is the physical location that provides integrated student services for admission, advising and counseling, financial aid, registration and records functions. The Enrollment Center needs to be a convenient and welcoming environment for prospective students, current students and community members. Providing a welcoming environment is necessary to creating positive first impressions that will enhance a student's early connections to the College. This project will incorporate all enrollment functions now scattered across the Des Plaines building into a facility that is similar in organization and function to the successful Enrollment Center at the Ray Hartstein campus.

It is anticipated that the Des Plaines Enrollment Center will be located near the busiest entrance to the College. The Enrollment Center will be a combination of renovation and new construction. It will be open to students for Spring 2015 registration. Student Gathering Center Research shows that students who are comfortable in their collegiate environment are more successful. Numerous studies have further demonstrated that students engaged in the life of their College persist to graduation at higher rates. Building a sense of connection and community is challenging on a commuter campus such as Oakton where students lives are full of balancing the responsibilities of work, family and learning. The objective of this project is to remodel existing space, bring student leadership offices and programs together in a common area, provide informal space for student gathering, adapt student space to technology needs and centralize the opportunity for student engagement in the heart of the Des Plaines campus. The selected area, across Student Street from the current location of the cafeteria, provides significant continuous space related to Student Life. This space will provide the opportunity to centralize student-related activities that currently take place in a variety of locations. Additionally, this space possesses floor to ceiling windows overlooking Oakton's lake – a view that will further enhance students' positive image of the campus.

130

This project is currently planned for 2015 and 2016. Infrastructure Projects Infrastructure is a major component of the Master Plan. Projects will occur over the entire Five Year Master Plan time frame and will include site work, communications technology and equipment upgrades, as well as public and facilities space within the buildings of both the Des Plaines and Ray Hartstein campuses. The project list and individual budgets will continue to be refined as the project advances. Currently identified projects include:

• HVAC Systems • Building Automation Systems • Telephone System Conversion to VOIP • Ubiquitous WiFi and Cell Phone Access • Electrical Delivery System Upgrade • Washrooms and Gym Locker Room • Parking Lot Improvements • Remodeling Vacated Spaces • Campus Grounds Sustainability Plan

Professional Partners Oakton has engaged Legat Architects to lead in the implementation of key components of the Master Plan, including the Science and Health Careers Instructional Building, Classroom Remodeling, Enrollment Center at the Des Plaines campus and the Student Gathering Center. Beginning in November 2009, Legat Architects assisted the College in developing the Master Plan accumulating a great deal of critical institutional knowledge during this process. In designing the Science and Health Careers Instructional Building, Legat Architects is joined by consulting architects Harley Ellis Deveraux. Recently, Harley Ellis Deveraux has utilized their science lab expertise in projects at San Diego City College, Wayne State University, Baylor University, University of Michigan and University of Cincinnati. Turner Construction serves as construction manager for the major components of the Master Plan. During the last decade, Turner has built more than five million square feet of higher education facilities in Illinois. Environmental Systems Design, Inc. (ESD) has been engaged to perform commissioning of the Science and Health Careers Instructional Building and the HVAC and Building Automation System projects. ESD will perform functional testing of all related systems in advance to ensure they are functioning as designed and expected, thereby reducing project and financial risks.

http://www.legat.com/�

131

Auxiliary Enterprises Fund The Auxiliary Enterprises Fund encompasses those programs other than instruction which charge a fee for the use of the services or products or which engage in buying and selling as intrinsic activities. Programs include the Alliance for Lifelong Learning, Bookstore, Business Institute, Copy Center, Early Childhood Education Centers, Information Technology, Intercollegiate Athletics, and Telecommunications. The Alliance for Lifelong Learning, a joint program, operates under an agreement between Oakton Community College District 535, Evanston Township High School District 202, Maine Township High School District 207, Niles Township High School District 219, and Northfield Township High School District 225. ALLiance serves the community by offering conveniently scheduled non-credit courses, and other educationally and culturally enriching activities such as seminars, symposiums, workshops, concerts, and films. As required by state law, ALLiance’s revenues and expenditures are both included in Oakton’s budget because the College is, by agreement, the Administrative District for ALLiance. The Bookstore provides materials and supplies necessary for learning, making them available to students at minimal cost. The Bookstore also offers ancillary materials to students such as College-related clothing items, magazines, cards, and other sundries. The Business Institute provides credit and non-credit (continuing education) courses, seminars, workshops, and conferences for business, industry, and government to help these organizations solve their critical employee training needs and stimulate economic development. Through the Business Institute, business, industry, and government organizations have access to all of the College’s resources and services. The Copy Center provides printing services to all areas of the College, as well as printing and production advice and guidance to College personnel. The Early Childhood Education Centers provide child care services to College employees and the general public. These model programs at both campuses are an integral part of the early childhood education academic program and foster a developmentally appropriate, play-based curriculum to support children’s social, emotional, physical, cognitive, and creative development. Information Technology

FY13 Actual

FY14 Budget

FY14 Actual (1)

FY15 Budget

Internal Service Fee Revenues

$5,558,471

5,652,965

5,652,962

$5,652,965

Expenses 5,203,199 6,489,855 5,723,573 6,869,665 Interfund Transfers In 900,000 912,000 912,000 930,000 Information Technology, Net

$1,255,272

75,110

841,389

$(286,700)


132

The Vice President for Information Technology provides administrative leadership across the College in matters of computing and technology. This includes planning, directing and organizing all hardware, software, network and systems acquisition, installation and support for the academic and administrative units of the College. The VP for IT helps institutional leaders understand the complexities of information resources, service delivery, technologies and the information demands of the community, and recommends institutional policy for information technology. IT is committed to developing a rich and robust computing environment that promotes accessibility and service for students, faculty and staff. In a fiscally responsible manner, IT balances technology needs with other needs of the college in support of Oakton’s strategic goals and objectives.

Annual Objectives

• Complete the hiring of the three open positions in IT – the Software Developer, Security Analyst and IT Program Specialist

• Complete the Ubiquitous Wireless implementation, so that wireless access is available to all areas of the college, at both the Des Plaines and Ray Hartstein campuses

• To complete the IP telephony implementation, which will replace existing phone service at both campuses and assimilate Telecommunications into the IT area

• Implement GradesFirst, the Early Alert software system , which will provide tools so faculty and staff can identify students whose behavior suggests they are heading toward academic problems

• Implement a mobile version of Oakton’s website, so important college information is easily available to view and access on smart phones and other mobile devices.

• Implement Touchnet Web Marketplace so the college can securely process web donations, and develop a method for web conference and event registration and payments

• Implement a new enterprise wide backup system for all college data

• Implement a new document imaging solution for the college

• Provide leadership and technical support to expand and enhance the use of Desire2Learn, the college’s learning management software.

• Ensure the technology infrastructure – desktops, servers, networks, -- continues to support and enhance the college’s endeavors.

Intercollegiate Athletics promotes the total development of the individual by providing the opportunity to participate in a comprehensive athletics program. Student athletes learn to exercise leadership, cooperation, and fair play – all valuable assets in today’s global society. The Fitness Center also is a part of this program. Telecommunications services include monitoring and operating the internal telephone system as well as the switchboard which services calls coming into the College. Oversight of Telecommunications recently moved to IT from Facilities.

133

Other programs included under Auxiliary Enterprises are the employee computer purchase plan, teleconferencing productions, and miscellaneous small programs. Each has a very specific purpose and narrowly defined program definition.

134

Anthropology General Business/Business Administration Physical EducationArt General Science PhysicsBiology Geography Political ScienceChemistry History PsychologyComputer Science Humanities Social ScienceEarth Science Liberal Arts SociologyEconomics Mathematics SpeechEducation Modern Languages TheaterEngineering MusicEnglish Philosophy

Accounting Associate Human ServicesAir Conditioning, Heating, and Refrigeration Technology Law EnforcementAutomotive Technology (Apprenticeship) Management and SupervisionComputer Applications for Business Manufacturing TechnologyComputer Networking and Systems Marketing ManagementComputer Programmer Mechanical Design/CADComputers and Information Systems Mechatronics TechnologyEarly Childhood Education Medical Laboratory TechnologyElectronics and Computer Technology Network Security AdministrationFacilities Energy Systems Technology NursingFacilities Management Paralegal StudiesFire Science Technology Physical Therapist AssistantGraphic Design Radiologic TechnologyHealth Information Technology Substance Abuse Counseling

ASSOCIATE DEGREES

Associate in Arts Associate in Science

Associate of Science in Engineering Associate in Fine Arts - Music

Associate in Fine Arts - Art Associate of Arts in Teaching - Secondary Mathematics

Associate of Arts in Teaching - Special Education Associate of Arts in Teaching - Early Childhood Education

Associate in Applied Science

Each degree program has distributive general education and general elective or career curricula requirements which provide the special emphases unique to each program. In the Associate in Arts, Associate in Science, Associate of Science in Engineering, Associate in Fine Arts, and Associate of Arts in Teaching, the distributive general education courses and their compliance with Illinois Articulation Initiative models are particularly important. This core of general education courses is designed to provide all students with a common academic experience to equip each individual to live effectively as an educated person in our society.


Degrees and Certificates Awarded by the College

Courses from the following disciplines can be selected to satisfy the elective education requirements according to each student's interest and intended major at the bachelor's degree level.

135

A+ Computer Diagnostic Specialist Income Tax PreparationAccounting Associate Industrial/Commercial Electrical MaintenanceAdministrative Assistant Industrial Design EngineeringAdvanced Early Childhood Education Internet and Computer Core (IC3)Advanced Infant Toddler Law EnforcementAdvanced Substance Abuse Counseling Leadership ExcellenceAdvanced Web Site Development Management of Information Systems (MIS)Animation and Multimedia Manufacturing TechnologyApplied Business Marketing CommunicationsAutomation and Controls Marketing ManagementAutomotive Technology (Apprenticeship) Mechanical Design/CADAutomotive Technology Driveline Mechatronics Supply Chain TechnicianBasic Early Childhood Education Mechatronics TechnologyBasic Infant Toddler Medical BillingBasic Nurse Assistant Training (BNAT) Medical CodingBasics of Fire Fighting Microsoft Office Advanced SpecialistBookkeeping Microsoft Office SpecialistBusiness Security Management Microsoft Office UserCAD Interior Design Microsoft Project Management PreparationCisco Certified Network Associate (CCNA) Network SecurityCNC/CAM Programming Network Security AdministratorCNC Operations and Programming Preparation Nursing Practice ReviewCommercial Buildings Energy Systems Office AssistantComputer-Aided Design Oracle Database Administrator (DBA)Computer Programmer Organization ManagementComputer Technology Paralegal StudiesComputer User PC Support SpecialistCreative Software Master Person-Centered Elder SupportCreative Software Specialist Pharmacy TechnicianCustomer Service PhlebotomyDigital ERP Using SAP PhotographyEarly Childhood Education Administration Preparatory Substance Abuse CounselingElectronics Computer Technician Professional Accounting - CPA PreparationElectronics Technology Residential Comfort ControlEmergency Medical Technician-Paramedic Residential Comfort Systems InstallerExecutive Administrative Professional Revit – Building Information Modeling (BIM) CertificateFacilities Energy Systems Technology SolidWorksFacilities Management Stationary Engineer License PreparationFinancial Services/Investment Analysis Technical CommunicationFire Science Technology Transportation, Warehousing and LogisticsGeneral Design UNIXGeneral Office Web Graphic Page DesignGlobal Business Web Site DeveloperGlobal Business Technical Web Site Support and MaintenanceHome/Office Technology Integrator Windows Certified Enterprise AdministratorHorticultural Therapy Windows Desktop Support TechnicianHuman Resource Specialist Windows Server AdministrationHuman Services Windows Support Technician

CERTIFICATES

AGENDA ITEM 12/13-8

1 of 4 Adoption of Resolution Setting Forth Tax Levies for 2013 This Resolution sets forth the levy recommended at the October 15, 2013, Board meeting and represents a 4.87% increase over the extended 2012 tax levy. President's Recommendation: That the Board adopt the following resolution: "Be it resolved by the Board of Trustees of Community College District No. 535, County of Cook and State of Illinois, as follows:

SECTION 1; That the following sums be and hereby are levied as taxes for the year 2013 (to be collected in 2014) for the purposes set forth below, on the equalized assessed value of the taxable property of Community College District No. 535: the sum of Thirty-Eight Million and Four Hundred Forty-Nine Thousand and Eight Hundred Dollars ($38,449,800) as a tax for Educational purposes; and the sum of Seven Million Seven Hundred Thousand Dollars ($7,700,000) as a tax for Operations and Maintenance purposes; and the sum of One Hundred Dollars ($100) as a special tax for Local Governmental and Governmental Employees Tort Immunity Act purposes; and the sum of One Hundred Dollars ($100) as a special tax for Social Security and Medicare purposes; and the sum of One Hundred Thousand Dollars ($100,000) as a special tax for Financial Audit purposes. SECTION 2: That the Secretary of the Board of Trustees of Community College District 535, County of Cook and State of Illinois, is hereby authorized and directed to file a Certificate of Tax Levy in substantially the form that is attached hereto with the County Clerk of Cook County, Illinois, before the last Tuesday of December 2013. SECTION 3: That this resolution shall be in full force and effect from and after its passage, approval and filing, as provided by law. SECTION 4: That the Chairman is authorized to execute the attached Certificate of Compliance with the Truth in Taxation Law."

136

140

AGENDA ITEM 6/14-8b

2 of 19

RESOLUTION OF THE BOARD OF TRUSTEES OF COMMUNITY COLLEGE DISTRICT 535, COUNTY OF COOK

AND STATE OF ILLINOIS, ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2014 AND ENDING JUNE 30, 2015

WHEREAS, on May 23, 2014, the College administration and the Treasurer of the

BOARD made such tentative budget as prepared by them conveniently available to the

public for inspection for at least thirty days prior to final action thereon; and

WHEREAS, on June 24, 2014, a public hearing was held by the BOARD as to

such tentative budget, notice of said hearing having been given at least thirty days prior

thereto by publication in a newspaper published in the District, and all other legal

requirements having been complied with;

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF

COMMUNITY COLLEGE DISTRICT 535, COUNTY OF COOK AND STATE OF

ILLINOIS AS FOLLOWS:

That the final budget in the form attached hereto which contains an estimate of the

amounts available in each fund, separately, and of expenditures from each, and which the

BOARD deems necessary to defray all necessary expenses and liabilities of such District

for the fiscal year, be and the same hereby is adopted as the budget of this District for the

fiscal year beginning July 1, 2014, and ending June 30, 2015.

143

TotalEducational Areas Campus

Acreage

Buildings and Attached Structures 8Physical Education and Athletic Fields 30Other Instructional Areas 62Experimental Plots (Prairie) 1.7

Sub-Total 101.7

Other Areas

Landscaped Grounds 24.5Parking Lots 31.8

Total Number of On-Campus Parking Spaces 3,151Roadways 7Retention Pond and Drainage 27

Sub-Total 90.3

Total Acres 192

Number of Acres Reimbursed or Acquired by the State 147


LAND USE SUMMARY The following information details the combined land use for both campus sites of the College. Of special note is the Prairie Project. The Forest Preserve District of Cook County, with the aid of Sierra Club volunteers, College employees, Students and other friends, are working on the restoration of this 100+ year old natural prairie land. Oakton students have the fortunate use of these lands for some of the courses offered at the College. Due to construction, parking spaces may vary.

148


GLOSSARY NOTE: Terms which relate to FUND, OBJECT, PROGRAM, and REVENUES have been grouped under those general headings within the glossary in order to emphasize those relationships and financial groupings. All entries are listed alphabetically except for ACRONYMS, which, for convenience, are listed at the end of the glossary section. ACADEMIC PROGRAMS (See PROGRAMS) ACADEMIC SUPPORT (See PROGRAMS) ACADEMIC TERM An academic term is any period of time in which course work is offered by the institution and for which students seek enrollment. The term may include a regular session or a special session or both. The College uses the semester system, which consists of the summer, fall and spring semesters. ALLiance uses a four period system consisting of summer, fall, winter, and spring semesters. In both cases, although the summer term begins at the end of one fiscal year, it is budgeted for and accounted for as if it occurred wholly in the following fiscal year. ACCOUNT NUMBER An account number is a defined code for recording and summarizing financial transactions. ACCOUNTING PERIOD The accounting period is a period at the end of which and for which financial statements are prepared. (See FISCAL YEAR) ACCRUAL BASIS Accrual basis accounting is an accounting system that records revenues when earned, but not necessarily received, and expenditures when a liability is created, regardless of the accounting period in which cash payment is actually made. An encumbrance system may be used in conjunction with an accrual basis accounting system. ACCRUED EXPENSES Expenses which have been incurred and have not been paid as of a given date are accrued expenses. ACCRUED INTEREST Interest earned between interest dates but not yet paid is accrued interest. ACCRUED LIABILITIES Amounts owed but not yet paid are accrued liabilities. ACCRUED REVENUE Accrued revenue is revenue earned and not yet collected regardless of whether due or not. APPROPRIATION An appropriation is an authorization that enables the College to make expenditures and incur obligations for a specific purpose. ASSESSED VALUATION The assessed valuation is the value on each unit of property for which a prescribed amount must be paid as property taxes. AUDIT An audit is an examination of the financial records of the College to obtain reasonable assurance that the financial statements prepared by the College are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It further includes an assessment of the accounting principles and procedures used and of the significant financial estimates made by management.

149

AUDIT FUND (See FUND) AUXILIARY ENTERPRISES FUND (See FUND) BALANCED BUDGET Oakton defines a balanced budget as one in which budgeted revenues are equal to or greater than the sum of budgeted expenditures and fund transfers. BOND A bond is a written promise to pay a specific sum of money, called the face value or principle amount, at a specified date (or dates) in the future, called the maturity date, and with periodic interest at a rate specified in the bond. A bond is generally issued for a specific purpose or project, such as construction of a new facility. BOND AND INTEREST FUND (See FUND) BONDED DEBT Bonded debt is the part of the College debt which is covered by outstanding bonds. BUDGET The budget is a controlled plan to be used in implementing the philosophy and the objectives of the College. Its development should involve maximum participation and, therefore, the aims and objectives of the College should be reflected at each level. The budget is a legal document once it has been approved by the Board. BUILDING BOND PROCEEDS FUND (See FUND) CASH (See REVENUES) CAPITAL EQUIPMENT (See OBJECT) CONFERENCE AND MEETING EXPENSES (See OBJECT) CONTINGENCY (See OBJECT) CONTRACTUAL SERVICES (See OBJECT) CORPORATE PERSONAL PROPERTY REPLACEMENT TAX The CPPR tax is collected by the Illinois Department of Revenue as a replacement for the personal property tax. COST BENEFIT Cost benefit analyses are those studies which provide the means for comparing the resources to be allocated to a specific program with the results likely to be obtained from it, or the analyses which provide the means for comparing the results likely to be obtained from the allocation of certain resources toward the achievement of alternate or competing goals. COURSE A course is defined as an educational unit within the instructional programs dealing with a particular subject and consisting of instructional periods and one or more instructional delivery systems. Courses are generally classified by the discipline they belong to and the level of instruction. For example, EGL 101 would be a first level (year) English course and MAT 250 would be a second level (year) mathematics course. COURSE CREDIT The number of credits that will be earned by the student for successful completion of a course is the course credit. It is generally measured in credit hours and will vary from institution to institution depending upon the type of academic term system used. CREDIT HOUR GRANT Credit hour grants are received for courses for each semester credit hour or equivalent for students who were certified as being in attendance at midterm of the semester during the fiscal year and who meet other criteria. There are no special restrictions on the use of these funds.

150

CURRENT ASSETS Cash or anything that can be readily converted into cash is considered to be in the category of current assets. CURRENT EXPENSES Any expenditures except for capital outlay and debt service are considered current expenses and include total charges incurred, whether paid or unpaid. Capital equipment expenditures assigned to programs, such as the purchase of instructional equipment, computers, or copiers, are considered to be part of current expenses. CURRENT FUNDS Current funds account for those moneys received during the current fiscal year from revenue which can be used to pay obligations currently due and surpluses reappropriated for the current fiscal year. CURRENT LIABILITIES Debts which are payable within a relatively short period of time, usually no longer than a year, are classed as current liabilities. DEBT SERVICE Debt service includes expenditures for the retirement of debt and expenditures for interest on debt, except principal and interest on current loans, which are loans payable in the same fiscal year in which the money was borrowed. DEFERRED CHARGES Deferred charges include expenditures which are not chargeable to the fiscal year in which they are made but are carried over on the asset side of the balance sheet pending amortization or some other disposition. Deferred charges differ from prepaid expenses in that they usually extend over a long period of time and may or may not be regularly recurring costs of operation. DEFICIT A deficit is a shortfall of revenues under expenditures and transfers. DEPRECIATION In accounting, the process of deducting some portion of the acquisition cost of property over time, as an expense, to reflect the fact that the property is becoming less valuable and will eventually require replacement. Depreciation is also recorded in the College’s Investment in Plant Fund. This is not a budgeted fund. DIRECT COSTS Direct costs are those elements of cost which can be easily, obviously, and conveniently identified with specific programs or activities, as distinguished from those costs incurred for several different activities or programs and whose elements are not readily identified with specific activities. An example of direct costs would be the faculty salaries paid from the Biology account to those faculty who teach biology courses. (See also INDIRECT COSTS.) DISBURSEMENTS These are the actual payment of cash by the College. (See also CASH.) EDUCATION FUND (See FUND) EMPLOYEE BENEFITS (See OBJECT) ENCUMBRANCES Encumbrances are actual or anticipated liabilities provided for by an appropriation which is recognized when a contract, purchase order, or salary commitment is made. It reduces the appropriation to avoid expenditure of funds needed to pay anticipated liabilities or expenditures. For example, if a purchase order for $100.00 is written and chargeable against a supply account, the available balance in that account is reduced by $100.00 even though the supplies might not have been received and no payment made from the account. EXPENDITURES Expenditures are decreases in net financial resources. Expenditures include current operating expenses, debt service, capital outlay, and any other liability which has been paid. FACILITIES REVENUE (See REVENUES)

151

FEDERAL GOVERNMENT SOURCES (See REVENUES) FINANCIAL STATEMENT A financial statement is a formal summary of accounting records setting forth the District's financial condition. FISCAL YEAR The fiscal year is the period over which the College budgets its spending. It consists of a period of twelve months, not necessarily concurrent with the calendar year, with reference to which appropriations are made and expenditures are authorized and at the end of which accounts are made up and the books are balanced. The College's fiscal year is the period July 1 to June 30 of the following calendar year inclusive. FIXED ASSETS Fixed assets are those assets essential to continuance of proper operation of the College. They include land, buildings, machinery, furniture, and other equipment which the College intends to hold or continue to use over a long period of time. FIXED CHARGES (See OBJECT) FULL-TIME EQUIVALENT For students the full-time equivalent indicator is the statistical student unit calculated by dividing all credit hours (both certificate and degree) generated at the College by fifteen credit hours for any given academic term. To determine the annual full-time equivalent student, the total credit hours for the year are divided by thirty credit hours. This is not to be confused with a full time student, which is a student who is enrolled for twelve or more credit hours per semester. For faculty the full-time equivalent is thirty instructional hour equivalents per year (lab classes are treated differently than lecture classes). For classified staff personnel the full-time equivalent is forty hours (for budgeting) of work per week. FUND A fund is an accounting entity with a self-balancing set of accounts for recording assets, liabilities, a fund balance, and changes in the fund balance. Separate accounts are maintained for each fund to insure observance of limitations and restrictions placed on the use of resources. For accounting and reporting purposes, funds of similar characteristics may be combined into fund groups. Funds are established and organized for budgeting, accounting, and reporting purposes in accordance with activities and objectives as specified by donors of resources, in accordance with regulations, restrictions, or limitations imposed by sources outside the College, or in accordance with directions issued by the Board of Trustees. The funds are listed by fund number.

EDUCATION FUND (Fund 01) The Education Fund is used to account for the revenues and expenditures of the academic and service programs of the college. It includes the cost of instructional, administrative, and professional salaries; supplies and equipment; library books and materials; maintenance of instructional and administrative equipment; and other costs pertaining to the educational program of the college. The local board of trustees may make a determination within the budget for the distribution of unrestricted revenues other than local property taxes among the operating funds, i.e., the Education Fund and the Operations and Maintenance Fund. Oakton's currently authorized maximum rate is seventeen and one-half cents per $100. Increases in the local maximum rate must be approved by the electorate of the college district. OPERATIONS AND MAINTENANCE FUND (Fund 02) The Operations and Maintenance Fund is used to account for expenditures for the improvement, maintenance, repair, or benefit of buildings and property, including the cost of interior decorating and the installation, improvement, repair, replacement, and maintenance of building fixtures; rental of buildings and property for community college purposes; salaries of janitors, engineers, or other custodial employees; all costs of fuel, lights, gas, water, telephone service, custodial supplies, and equipment; and professional surveys of the condition of college buildings. The statutory maximum tax rate is set at ten cents per $100 of equalized assessed valuation for community college districts in cities with less than 500,000 inhabitants. Oakton's currently authorized maximum rate is five cents per $100.

152

OPERATIONS AND MAINTENANCE FUND (Restricted) (Fund 03) The Operations and Maintenance Fund (Restricted) fund is used to account for monies restricted for building purposes and site acquisition. This fund is also referred to as the Site and Construction Fund. Life Safety revenues and expenditures are recorded in this fund. BOND AND INTEREST FUND (Fund 04) The Bond and Interest Fund is used to account for payment of principal, interest, and related charges on any outstanding bonds. Debt service for each bond issue must be accounted for separately using a group of self-balancing accounts within the fund. AUXILIARY ENTERPRISES FUND (Fund 05) The Auxiliary Enterprises Fund accounts for college services where a fee is charged to students/staff. Each enterprise/service should be accounted for separately using a group of self-balancing accounts within the fund. Examples of accounts in this fund include food service, bookstore, and intercollegiate athletics. Only monies over which the institution has complete control should be included in this fund. RESTRICTED PURPOSES FUND (Fund 06) The Restricted Purposes Fund is used for the purpose of accounting for monies that have restrictions regarding their use. Each specific grant or project should be accounted for separately using a complete group of self-balancing accounts within the fund. ICCB grants which should be accounted for in this fund include the Workforce Development Grant. WORKING CASH FUND (Fund 07) The Working Cash Fund is used to enable the district to have on hand at all times sufficient cash to meet the demands of ordinary and necessary expenditures. This fund is used to account for the proceeds of working cash bonds. By making temporary transfers, the Working Cash Fund is used as a source of working capital by other funds. Such transfers assist operating funds in meeting demands during periods of temporary low cash balances. Payment for the principal or interest of working cash bonds should be made from the Bond and Interest Fund. GENERAL FIXED ASSETS ACCOUNT GROUP (Fund 08) The General Fixed Assets Account Group is used to record the value of plant assets. The Account Group is not budgeted. GENERAL LONG-TERM DEBT ACCOUNT GROUP (Fund 09) The General Long-term Debt Account Group is used to record long-term liabilities. The Account Group is not budgeted. TRUST AND AGENCY FUND (Fund 10) The Trust and Agency Fund is used to receive and hold funds when the college serves as a custodian or fiscal agent for another body. The funds are not subject to College control and the College has no fiscal stake in them other than accounting accuracy. This Fund is not budgeted. AUDIT FUND (Fund 11) The Audit Fund is used for recording the payment of auditing expenses. The audit tax levy is recorded in this fund and monies in this fund should be used only for the payment of auditing expenses. LIABILITY, PROTECTION, AND SETTLEMENT FUND (Fund 12) Tort liability, property insurance, unemployment insurance, and worker's compensation levies should be recorded in this fund. Monies in this fund, including interest earned on the assets of the fund, should be used for payment of tort liability property, unemployment, or worker's compensation insurance or claims.

153

BUILDING BOND PROCEEDS FUND (Fund 13) Proceeds from construction bonds may be recorded in the Building Bond Proceeds Fund. Expenditures are governed by the districts building bond indenture(s). The College has no building bond debt and therefore does not use this fund. PUBLIC BUILDING COMMISSION RENTAL FUND (Fund 14) PUBLIC BUILDING COMMISSION OPERATIONS AND MAINTENANCE FUND (Fund 15) The College has no facilities built by the Public Building Commission and therefore does not use either of the Public Building Commission funds. STAFF INSURANCE POOL FUND (Fund 17) This unbudgeted fund tracks monies dedicated for a portion medical insurance costs of classified staff employees and is reported as part of the Education Fund in the College’s CAFR and for uniform financial reporting. SOCIAL SECURITY/MEDICARE FUND (Fund 18) This fund was set up to insure discrete accounting in the general ledger for tax levy revenues levied for social security and Medicare purposes and to discriminate more easily associated fund balances associated therewith. For almost all reporting purposes it is combined with Fund 12. INVESTMENT POOL FUND (Fund 19) This fund accounts for all of the transactions involving the College's investments. At the close of each accounting period accrued interest is allocated to each of the several funds on the basis of its fund balance. This is a shadow fund established to make accounting for the College's investment instruments easier and more flexible. It is not an ICCB reportable fund and is not a budgeted fund. LOAN FUND (Fund 20) The Loan Fund accounts for all transactions involving student loans. It is a separate reported element in the CAFR and is combined with restricted purpose funds for most other purposes. It is not a budgeted fund and is not separately reported to the ICCB.

GENERAL ADMINISTRATION (See PROGRAM) GENERAL MATERIALS AND SUPPLIES (See OBJECT) INDEPENDENT OPERATIONS (See AUXILIARY ENTERPRISES FUND) INDIRECT COSTS Indirect costs are those elements of cost necessary in the provision of a service which are of such nature that they cannot be readily or accurately identified with the specific service. (See also DIRECT COSTS) INSTRUCTIONAL ADMINISTRATION (See PROGRAM) INSTITUTIONAL SUPPORT (See PROGRAM) INSTRUCTION Instruction includes those activities which deal directly with teaching or aid in the teaching process. Instruction costs include not only salaries and benefits for instructional personnel but also the personnel, materials, equipment, and other costs which are necessary to plan, implement, and manage the instructional program. INTERFUND TRANSFERS Interfund transactions are for transfer of monies between funds. Monies may not be transferred between funds except by the same procedure as that used to approve the budget, including public notification, publication, inspection, and comment. Interfund transfers are usually part of the overall budget plan and are built into the budget at the time of its approval by the Board of Trustees.

154

INTERNAL CONTROL The purpose of internal control is to safeguard the use of public funds and to protect the public trust on behalf of the College. Internal controls are those activities and organizational preparations designed to insure effective accounting control over assets, liabilities, revenues, expenditures and any other activities associated with the finance and accounting actions of the College. Some of the precautions instituted by internal control are insuring that no single individual can perform a complete cycle of financial operations and that procedures of the finance and accounting system are specific and monitored. Internal control also requires designated levels of authorization for all actions under the system. INVESTMENT POOL FUND (See FUND) INVESTMENT REVENUE (See REVENUES) INVESTMENTS Investments are securities or other properties in which money is held, either temporarily or permanently, in expectation of obtaining revenues. Legal investments for community college funds are governed by state statute, which allow current operating funds, special funds, interest and sinking funds, and other funds belonging to or in the custody of the College, including restricted and non-restricted funds, to be invested. Bonds, treasury bills, certificates of deposit, and short-term discount obligations issued by the Federal National Mortgage Association are some of the types of investments which are permitted by law. LOAN FUND (See FUND) LOCAL GOVERNMENT SOURCES (See REVENUES) MODIFIED ACCRUAL BASIS ACCOUNTING Modified accrual basis accounting is any accounting system that records revenue when susceptible to accrual both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay the liabilities of the current period. Expenditures other than interest on long-term debts generally are recognized when the related fund liability is incurred. An encumbrance system may be used with a modified accrual basis accounting system. NET EXPENDITURE A net expenditure is the actual cost incurred by the College for some service or object after the deduction of any discounts, rebates, reimbursements, or revenue produced by the service or activity. NET POSITION The net position is the balance of a fund after all liabilities have been deducted from the assets of the fund. NET REVENUE Net revenue is defined as the balance remaining after deducting from the gross revenue for a given period all expenditures during the same period. NON GOVERNMENTAL GIFTS, GRANTS, AND BEQUESTS (See REVENUES) OBJECT The term object applies to expenditure classifications and designates materials or services purchased. Expenditures are grouped by major objects, such as salaries, supplies, or capital outlay, and are further divided as needed for cost accounting and control purposes. The term function may also be used to refer to object classifications.

CAPITAL EQUIPMENT Also termed capital outlay, the capital equipment object group includes site acquisition and improvement, office equipment, instructional equipment, and service equipment. Generally expenditures in this category cost more than $10,000 and would not normally be purchased from general materials and supplies. Vehicles, computer servers and related equipment, and laboratory equipment would be typical examples of items included in this category.

155

CONFERENCE AND MEETING EXPENSES The category of conference and meeting expenses includes expenses associated with conference registration and fees, costs for hosting or attending meetings, and related travel costs, whether local or otherwise. CONTINGENCY Contingency funds are those appropriations set aside for emergencies or unforeseen expenditures. Contingency funds are used only by budget transfers and may not be expensed directly. A small amount of the capital equipment authorization is set aside for emergency use (i.e., to replace lost or stolen equipment) and may be used directly without budget transfer. CONTRACTUAL SERVICES Contractual service costs are those monies paid for services rendered by firms and individuals under contract who are not employees of the College. (See also SALARIES.) EMPLOYEE BENEFITS Employee benefit costs are for all benefits which employees accrue through continued employment with the College. Benefits include health insurance coverage (except that portion paid by the employee), sabbatical leave salaries, tuition reimbursement, life insurance, early retirement contributions assignable to the College, and others. FIXED CHARGES The fixed charges object category includes charges for rentals of facilities and equipment, payment of debt interest and principal, general insurance charges, installment payments for lease/purchase agreements, and property/casualty insurance. GENERAL MATERIALS AND SUPPLIES The general materials and supplies category includes the cost of materials and supplies necessary for the conduct of the College's business. Business forms, envelopes, postage costs, printing costs, and handouts to students typically fall into this category. (See also CAPITAL EQUIPMENT.) OTHER EXPENDITURES The other expenditures object category includes expenditures not readily assignable to another object category. Examples include student grants and scholarships, tuition chargebacks, charges and adjustments, and student loans. SALARIES Salaries are monies paid to employees of the College for personal services rendered to the College. Full time, part-time, and temporary employees, whether administrators, faculty, or staff, are paid wages or salaries established by contract with the Board of Trustees. (See also CONTRACTUAL SERVICES.) UTILITIES The utilities object account covers all utility costs necessary to operate the physical plant and other on-going services, including gas, water, sewage, telephone, and refuse disposal.

ORGANIZED RESEARCH (See PROGRAM) OPERATING FUNDS Operating Funds refers to the combination of the Education Fund and the Operations and Maintenance Fund (Funds 01 and 02). OPERATION AND MAINTENANCE FUND (See FUND) OPERATION AND MAINTENANCE FUND (Restricted) (See FUND) OPERATION AND MAINTENANCE OF PLANT (See PROGRAM) OTHER EXPENDITURES (See OBJECT) OTHER REVENUES (See REVENUES)

156

PROGRAM A program is defined as a level in the program classification structure hierarchy representing the collection of program elements serving a common set of objectives that reflect the major institutional missions and related support objectives. The program classification structure, established by the ICCB, is a means of identifying and organizing the activities of the College in a program-oriented manner. Examples of programs are biology, nursing, and academic support.

ACADEMIC PROGRAMS The academic programs include all of the instructional programs of the College. Some programs contain only a single discipline, such as mathematics or biology. Some programs contain multiple disciplines, such as modern languages, which includes all of the language disciplines (i.e., Spanish, French, and German). ACADEMIC SUPPORT Academic support includes those programs which directly support the instruction process and academic programs, including tutoring and instructional assistance. These programs include library operations, instructional support services, television production services, audiovisual services, and instructional technology administration. This last program provides instructional technology support to the academic programs of the College, including maintenance of the academic computer network and operation of the computer labs. Instructional technology operation and equipment costs are allocated on a pro rata basis to the academic programs which use the academic computer services. This consolidated effort provides considerable economy of effort, expertise, and resources. GENERAL ADMINISTRATION General administration includes those activities devoted to the general regulation, direction, and day-to-day operation of the College. The Office of the President, college advancement, business administration/Treasurer, accounting services, business services, human resources, and community relations are included in general administration. Typical services provided include purchasing for the entire college, printing services, shipping and receiving services, and financial services. The annual audit and the annual budget are produced by offices of general administration. INSTITUTIONAL SUPPORT Also called general institutional, this category includes those costs and activities not readily assignable to another category or which apply to the College on an institution-wide basis. The Board of Trustees' costs, institutional membership and accreditation costs, commencement, and certain institutional expenses, such as bank service charges and some benefit costs are assigned to this category. INSTRUCTIONAL ADMINISTRATION Instructional administration has overall responsibility for establishing, conducting, and evaluating the entire instructional program at the College. This includes coordinating the recruiting, supervising, and maintaining the quality of the teaching faculty. OPERATION AND MAINTENANCE OF PLANT Operation and maintenance of plant includes those activities necessary for the proper and safe operation of the physical plant of the College, including buildings, grounds, and roadways. Public safety, transportation, maintenance services, and housekeeping are part of operation and maintenance of plant. ORGANIZED RESEARCH Organized research includes separately budgeted research projects other than institutional research (which is included under instructional administration). The College does not engage in independent research projects. PUBLIC SERVICE Public service includes services provided to the general college community and residents by making college facilities and expertise available to the public outside of the academic realm. It includes college-sponsored seminars, workshops, forums, lecture series, cultural events and exhibits, and other non-academic services to the residents of the District. STUDENT SERVICES Student services include those activities which provide direct support services to students other than academic support services. These activities include registration and

157

records, financial aid, counseling, placement testing, career placement assistance, health services, and student activities.

PROPERTY TAXES In general, property taxes are those taxes levied on real property for the purpose of providing service for the public good. In the case of the College, property taxes are levied on the real property of the District for the purpose of fulfilling the goal of educational service to the District as specified by the College's mission statement. Legal authorities for the various property taxes which the College has levied in the district are as follows: Education ILCS Ch 110, Act 805, Sec 3-1 Operations & Maintenance ILCS Ch 110, Act 805, Sec 3-1 Bond & Interest ILCS Ch 110, Act 805, Sec 3-33.2 Audit ILCS Ch 50, Act 310, Sec 9 Liability, Settlement, Protection ILCS Ch 745, Act 10, Sec 9-107 Social Security / Medicare ILCS Ch 40, Act 5, Sec 21-110 and Sec 21-110.1 Life Safety ILCS Ch 110, Act 805, Sec 3-20.3.01 PUBLIC BUILDING COMMISSION OPERATIONS AND MAINTENANCE FUND (See FUND) PUBLIC BUILDING COMMISSION RENTAL FUND (See FUND) PUBLIC SERVICE (See PROGRAM) REIMBURSABLE CREDIT HOUR A reimbursable credit hour is an ICCB-certified instructional credit hour used as the basis for distributing selected ICCB grants. RETIREES HEALTH INSURANCE GRANT The state retirees health insurance grant is provided to fund part of the health insurance costs for certain qualifying College retirees. REVENUES Revenues are additions to assets which do not increase any liability, do not represent the recovery of an expenditure, or do not represent the cancellation of certain liabilities without a corresponding increase in other liabilities or a decrease in assets. Revenues are classified by the source of the funds, which roughly corresponds to the object classification for expenditures. It can also serve as a program classification as well.

CASH The cash source category includes currency, coin, checks, money orders, and bank drafts on hand or deposit with the official or agent designated as custodian of cash or in demand deposit accounts. Petty cash funds, change funds, and other imprest cash funds are recorded in the cash object. FACILITIES REVENUE Facilities revenue accrues from the use of College facilities, such as building/space rentals, data processing charges, and equipment rentals. FEDERAL GOVERNMENT SOURCES The category of federal government revenue sources includes all revenues which originate with federal agencies and are paid directly to the College or administered by pass-through agencies for the federal government. Department of Education grants and certain vocational education grants are recorded in this category. INVESTMENT REVENUE The investment revenue source category records revenues from investments. LOCAL GOVERNMENT SOURCES Revenues from local government sources accrue from district taxes (property taxes), from chargebacks, and from all governmental agencies below the state level.

158

NON-GOVERNMENTAL GIFTS, GRANTS, AND BEQUESTS The category of non-governmental gifts, grants, and bequests records revenues from private persons, firms, foundations, or other non-governmental entities in the form of restricted or unrestricted gifts, bequests, or grants for specific projects. OTHER REVENUES Other revenues are those which do not fall into an established specific revenue source category. Typical examples would include parking and library fines, commissions, and sales of surplus property. SALES AND SERVICE FEES The sales and service fees source category includes all student fees and charges for other than education and general purposes. Examples would be bookstore sales, student organization fees, and admissions charges to athletic events. STATE GOVERNMENT SOURCES State government revenues accrue from all state governmental agencies. Typical examples include credit hour grants, ICCB grants, ISBE grants, and the Department of Veterans Affairs. STUDENT TUITION AND FEES The student tuition and fees category includes all student tuition and student fees assessed against students for educational and general purposes. Tuition is the amount per credit hour times the number of credit hours charged a student for taking a course at the college. Fees include laboratory fees, application fees, transcript fees, and similar charges not covered by tuition. Student tuition and fees may not exceed one-third the per capita cost as defined in the chargeback reimbursement calculation.

SALARIES (See OBJECT) SALES AND SERVICE FEES (See REVENUES) STATE GOVERNMENT SOURCES (See REVENUES) STUDENT CHARGEBACK The student chargeback is the fee paid for a student of one community college district attending a community college in another district to pursue a curriculum not offered in the college of her/his home district. The home community college pays the college which the student attends a chargeback at the rate established in the chargeback calculations for each college. STUDENT SERVICES (See PROGRAM) STUDENT TUITION AND FEES (See REVENUES) SURPLUS A surplus is an excess of revenues over expenditures and transfers. TAX ANTICIPATION WARRANTS Tax anticipation warrants are issued by the governmental body in anticipation of collection of taxes, usually can be retired only from tax collections and frequently only from the tax collections anticipated with issuance. The proceeds of tax anticipation notes or warrants are treated as current loans if they are paid back from the tax collections anticipated with the issuance of the notes. TRUST AND AGENCY FUND (See FUND) UTILITIES (See OBJECT) WORKING CASH FUND (See FUND)

159

ACRONYMS ABE Adult Basic Education ASE Adult Secondary Education FASB Financial Accounting Standards Board FTE Full-time Equivalent GAAP Generally Accepted Accounting Principles GASB Government Accounting Standards Board GFOA Government Finance Officers Association IBHE Illinois Board of Higher Education ICCB Illinois Community College Board IMET Illinois Metropolitan Investment Fund IPTIP Illinois Public Treasurers Investment Pool ISBE Illinois State Board of Education NACUBO National Association of College and University Business Officers NCGA National Council on Governmental Accounting OCC Oakton Community College, Community College District No. 535

160


Acknowledgments

The Budget Office would like to thank the following people without whose assistance, this document would not have been possible:

(in no particular order)

Peg Lee

Bruce Bennett, ICCB Ann Marie Barry

Mum Martens Bonnie Lucas

Gloria Liu Bruce Oates

Robert Nowak Cheryl Warmann

Valerie Green Joan Phillips Tamara Laws Marilyn Davis Nancy Sidlin

Nancy Prendergast Susan Kruczinski

Maya Evans Vicki Bialek

Jill Mawhinney Mary Gipson

Thomas Hamel Joianne Smith Robyn Bailey

Faina Vilk Aneta Tamraz

Robert Sompolski Sebastian Contreras, Jr.

Jamie Petersen Jesse Ivory

Merrill Irving Jean Neal

Karen Epps, Pat Cunniffe and Sandy Huffman

Presentation Budget 2014-1 2014-155

Documents

Transcript of Presentation Budget 2014-1 2014-155