On Jan. 17, the Navajo County Community College District Governing Board reviewed finances for Northland Pioneer Community College from the first months of this fiscal year and the cumulative previous year, which ended in June 2016.
Every year in May, the college provides financial statements to the State of Arizona Office of the Auditor General (OAG) for audit, and results of the previous years were revealed at the meeting. According to Jay Zsorey, financial audit director with the OAG, for the first time since 2010, there were “no recommendations for the board this year.”
As further evidence of its financial reliability, the college has been awarded consecutive Certificates of Achievement for Excellence in Financial Reporting for the last two years by the Government Finance Officers Association of the United States and Canada.
In a news release, NPC President Jeanne Swarthout highlighted the significance of the achievements, noting, “While this award recognizes the hard work and diligence of NPC’s financial services staff, it also assures Navajo County taxpayers that revenue and expenditures are properly handled, with appropriate policies and oversight in place.”
At the board meeting, Interim Vice President for Administrative Services, Maderia Ellison pointed out increases in total revenues of nearly $1 million and a decrease in expenses of nearly $1.2 million. Approximately six percent, or $623,000, of that decrease resulted from cost saving practices, with most of the remainder associated with staffing vacancies in executive level, information services department and instruction positions.
Ongoing funding challenges still persist for the college. Over the last eight years, the state cut more than 50 percent of its operating aid, and last year the college also lost $147,386 in revenue from primary tax levy funding from Apache and Navajo counties following a historic loss in property value which reduced tax revenues.
In response to decreasing funds, NPC adopted policies in prior years that have set aside up to $20 million in reserves to preserve the college’s stability and provide capital for future growth.
According to a statement by Dr. Swarthout, “NPC’s conservative expenditure policies have allowed us to build up a reserve that will allow us to continue to provide services to our students at current levels for at least a couple more years while we pursue other revenue avenues.”
Board Chairman Frank Lucero asked when the college could expect to see another decrease in the primary tax levy revenues due to property value loss.
Ellison replied, “We’d all like to know.”
In other activity, the board appointed Lucero as chairman and retained Daniel Peaches as secretary for another year.
The board also gave approval for staff to begin the search process for a new president to replace Swarthout when she retires in June 2018.
In addition, the board was updated on the state of the NPC Friends and Family program by Executive Director Betsy Wilson. The program, which assists students in obtaining scholarships, raises money for need-based student scholarships through several key fundraising activities and plans to add a new disc golf tournament to the events this year. During the 2016 fiscal year the program distributed $63,439 in student aid.
The board also approved the external hearing officers list for 2017, a list of attorneys willing to serve if called on.
