The Navajo County Community College Governing Board convened Tuesday, May 16. Prior to the regular meeting, the governing board held a public hearing to review the Truth in Taxation (TNT) notice associated with the proposed budget for fiscal year 2023-2024. Under the state’s TNT statutes, the college district is requesting an increase in primary property taxes of $587,915 or 3.7%. According to the TNT formula, the primary property tax for an owner-occupied residence with an assessed valuation of $100,000 would increase from $169.18 to $175.36. Northland Pioneer College (NPC) does not have a secondary tax rate to pay for any improvement bonds or budget overrides. There was no public comment.

The board also held a public hearing in regard to the proposed 2023-2024 budget. The preliminary budget was approved by the governing board on April 18, in the amount of $39 million for total resources for the budget year. The budget can be reduced but cannot be increased. Staff anticipates the expenditure limit will be breached in fiscal year 2024, but carry-forward balances will be used to cover any overage. The current available carry-forward amount is $32 million. There was no public comment at the meeting.

After, the board held a special meeting in which they approved the 2023-2024 primary property tax rate of $1.7536 generating a tax levy of $17,000,000. They also approved the 2023-2024 budget and the 2024-2026 proposed capital budget.

During the regular meeting, the board received a presentation on cultural studies in higher education and how it positively impacts students by Curriculum Coordinator Dr. Michael Broyles.

In a written report from NPC Friends & Family (NPCFF) Betsyann Wilson, she announced that the Summit Healthcare Foundation provided 10 new $1,000 scholarships for students in the nursing program. The scholarships are available to both first and second-year students beginning Tuesday, June 13.

Other open scholarships are the $1,500 Taking Flight Scholarship in memory of Dr. Eric B. Henderson and the $3,000 AndyVon Baccalaureate Bound Scholarship for students who are graduating from NPC on May 13 and going on to earn a bachelor’s degree.

Wilson also stated that Pedal the Petrified registration has now been opened to anyone interested in taking part.

During the construction update, Director David Huish stated the White Mountain Campus Skills Center is moving along and currently being painted and laying down of the concrete should be completed by the end of the week.

Northland Pioneer College (NPC) President Dr. Chato Hazelbaker provided a report and explained that reviews are being done on the last year’s strategic initiatives for the college and what should be added and worked on in the upcoming year.

One example of what will be worked on in the upcoming year is narrowing the scope down and focusing. “Last year, we had too many strategic initiatives and priority actions. There are just too many things we’re trying to work on. So, as we go into this year’s planning process, one of the things that we’re really trying to hit with people is prioritization.” Hazelbaker also hopes to improve the conciseness of project plans and clear timelines.

Director Judy Yip-Resey provided a written quarterly report on the Office of Institutional Effectiveness as well as a report from Director of Financial Services Russel Kupfer on the financial ratios used by the Higher Learning Commission to track an institution’s financial health.

In other business, the board accepted the Single Audit Report conducted by the Arizona Auditor General (AG) for the fiscal year ended June 30, 2022. The audit opinion for the report was “unmodified,” which is positive.

NPC issues two separate audit reports, the Annual Comprehensive Financial Report (ACFR) and the Single Audit. The ACFR was reviewed with the District Governing Board in January 2023 and the Single Audit report will be reviewed this month.

ACFR focuses on the financial audit and financial condition of the college and includes the financial statements of Northeast Arizona Training Center (NATC) and the NPC Friends and Family. Two findings were identified related to information technology resources and risk management, for which a corrective action plan has been deployed to address over the next year.

The Single Audit Report focuses on compliance with federal financial awards. One finding was identified related to disbursement of Higher Educational Emergency Relief Fund (HEERF) funds. Students were required to consent prior to applying any emergency financial assistance to outstanding account balances, which was not done in three of 30 cases in the college. “The district should determine if the students agree with that discharge, or if they want direct payment of those monies and make any necessary adjustments. The district reported that it anticipates fully correcting these deficiencies by June 30,” stated AG staff.

Also in new business, the board:

* Approved the purchase of two hard drive arrays and support services from SHI International Corp for a total cost of $68,865. Funds for the purchase were included in the fiscal year 2023 Technology Advancement and Support budget.

* Approved the purchase of an exhaust make-up air unit by United Metal Products (UMP) in the amount of $121,373. UMP was chosen based on the lowest price and the best value product for the college. The quote includes a $1,000 freight charge and a 9.43% sales tax. Federal HEERF funding will be used to pay for this product.