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Local News

January 23, 2014

Fiscal year 2013 audit

Iowa’s state auditor on Jan 10 released an audit report for Indian Hills Community College for the year ended June 30, 2013.

IHCC’s primary government operating revenues totaled $26,678,255 and operating expenses totaled $59,056,268. Non-operating revenues totaled $30,094,015 and non-operating expenses totaled $453,213.

IHCC’s net position decreased for the year ended June 30, 2013 by $2,737,211 or 4.3 percent from the prior fiscal year.

According to the audit, the college’s net position decrease was due primarily “to increased operational costs and planned renovation expenditures.”

Operating revenues like tuition, fees and money from the federal government and auxiliary enterprises decreased by less than 1 percent while operating expenses like salaries, benefits, materials, supplies and services increased by 6 percent over the prior year.

Non-operating revenues include money from the state, Pell grants, property taxes and scholarships. Non-operating expenses include primarily interest on indebtedness.

The audit states IHCC saved approximately $103,500 in aggregate debt service payments when they redeemed outstanding Series 2005 and 2006 callable certificates payable totaling $1,155,000 in June of 2013.

Operating and non-operating revenues from state and federal government appropriations and Pell grant awards at IHCC decreased by a combined 34.3 percent from FY 2012 to FY 2013 for a net loss of $2,794,000. Operating and non-operating revenues from tuition and fees at IHCC increased by 1.5 percent from FY 2012 to FY 2013 for a net increase of $201,000.

The audit offers the following as explanations for the changes in FY 2013 operating expenses.

Salaries, wages and benefits increased by 3.6 percent and planned incented retirement costs; scholarships and grant expenses decreased due to a decline in credit hour enrollment and the number of qualifying student recipients and plant operations increased due to planned renovation expenditures.

IHCC completed $1.7 million in projects and renovations to include a dental lab within the Rural Health Education Center for the Dental Assistant program renovations in multiple student service areas.

Projects still in progress as of June 30, 2013 include construction of a regional business incubator facility and renovation of the John Pothoven Academic Success Center and renovation and expansion of the Tom Arnold Net Center.

IHCC maintains campuses in Ottumwa, Centerville and at the Ottumwa Industrial Airport. IHCC’s administrative offices are located in Ottumwa.

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The Iowegian wants readers to think about the solicitation ordinance that will prevent groups or individuals from entering a roadway to solicit money. The Centerville City Council in June by a 5-0 vote passed the first reading of just such an ordinance. Public pressure and during a subsequent special meeting, the council voted 3-2 to table the ordinance. A second special meeting to discuss the solicitation ordinance is scheduled for 5:30 p.m. Thursday, Aug. 7 at City Hall. So, the question of the week is, "Do you or do you not support the ordinance to prevent solicitation of funds in city streets?"

A. I support the ordinance
B. I do not support the ordinance
C. Not sure
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