January 2020 Meeting Minutes

January 2020 Meeting Minutes

Board of Trustees

12 January 2020

The North Arkansas College Board of Trustees met in regular session on Thursday, 12 January 2020, in the Bennie Ellis Board Room on the South Campus. Chair R.G. Earnest called the meeting to order at 2:57 p.m. Trustees Kevin Cheri, Bill Lovell, David Evans, Scott Miller, Sarah Newman, and were present.

North Arkansas College personnel attending included Ricci Dillon, Mandy Kilbourn, Micki Somers, Rodney Arnold, Brandon Cone, Don Sugg, Kris Greening, Tavonda Brown, Kim Potts, Karsten Leigvold, and Dr. Rick Massengale, and Dr. Randy Esters.

Before moving into official business, Chair Earnest handed the meeting to Dr. Esters to present Bill Lovell with the Board of Trustees Chair plaque. Thanking him for his service to Northark and looking for the best interest to the college.  Trustee Bill Lovell thanked everyone for the plaque and stated that Northark’s board is united.

Approval of Agenda

Chair Earnest asked if there were any changes to the agenda as presented. There being none, the agenda stood approved.

Regular Reports

Finance Report—Don Sugg shared financials through 31 December 2019.

In the E&G fund, we are still in spring registration and the finances are tentative, but are compared to the same point of last year. As recalled, we increased the tuition rate to $3 per credit hour. The status comparison shows at 98% from last year, which is after the tuition rate increase and stated we are down some in student semester credit hours.  We are 6% down from last year in revenue but we did lower our budget target giving us on budget.

Expenses are on target for salary and benefits. As a whole, expenses are always slightly higher at the beginning of the academic year due to start-up costs. Overall, revenue is ahead of previous years and expenses are trending in line with previous years. Salaries are less than 50% at this time and we are trending well.

Auxiliary is not as positive, but is still doing well. The discontinued rentals has helped with inventory and when you combine the rental/sales we are still ahead with this year’s sales. Don mentioned the majority of sales of purchases take place in early to mid-January.  Salaries and Operating Expenses are little below at this time of year. The College Store had a net profit gain of 9% last year, but they cannot carry expenses on their own.

President’s Report—Dr. Esters shared that the Governor named Dr. Rick Massengale to the Cybersecurity Task, being the first Northark employee to receive this opportunity.  Coach Hunter took the men’s basketball team to the Reunion tower and the Dallas Mavericks game. Coach Howard took the Lady Pioneers to Eunice, Louisiana with Dr. Esters as the tour guide and he is proud of our student athletes. The spring convocation was held Thursday, January 10th. Scott Miller complimented the convocation stating the positive energy and unity at the service. The Science building is wrapping up and have one classroom left to finish. Dr. Messengale briefly went over Northark’s new Dean of Health Profession, Dr. Josephine Kershaw. She went over her credentials and finds she will be a great fit for Northark and comes across very genuine. She has been awarded over 8.1 million dollars in grants. She is well adverse and found she is excited to be part of the Northark family. She is a great opportunity for Northark to have her on our team.

Karsten Leigvold shared an overview of the recruitment prospects, new freshman enrollment, factors to contributing to lower enrollment, recent improvements, and planned improvements. He mentioned that some of the underlying factors contributing to lower enrollment are the number of high school students, the decreasing in Arkansas college rate, record low unemployment rate, competition for students being at high factor, and student housing challenges. He attends to educate the students about scholarships and grants that can take a release off debt. He stated we are going toward the right direction with our campus housing coming in the future. He intends to grow enrollment by visiting businesses to gain students, coordinating with Academics to create programs to attract out-of-state students. Leigvold is investigating options to compete with Missouri’s A+ program.  He listed his planned improvements, including developing a recruitment taskforce, improve recruitment materials, communicate Northark’s brand and opportunities to high schools. He stated students want to see the “wow” factor at our college and students no longer only focus on academics, but also want do we have to offer that is fun. He would like to focus on student lounging areas through the college. He wants to get more student interaction outside of classroom.  He closed with discussing the exploration of an ambassador program.

Consent Agenda

The Consent Agenda included the December Regular Meeting Minutes; Policies: Investments, Certification of Solvency, and Replacement Position- Dean of Health Professions.

 Chair Earnest asked for a motion to approve the Consent Agenda. A motion was made by Trustee Lovell, seconded by Trustee Evans, and unanimously approved.

Monitoring Report -Funding Formula

Mandy Kilbourn discussed the 2020/2021 budget and the breakdown of the funding formula. She gave an overview of the formula and the productivity being the Effectiveness and Affordability. Effectiveness taking a huge portion. She stated the percent change from the baseline then determines the distribution of funding. Mandy stated our funding base $7,925,968.00. The change in outcomes index of 6% loss is capped by state at 1.5%. The total change in funding loss of $118,890. She stated the biggest impact is credentials awarded. We are down 156 points; accounts for approximately $75,500. Chair Earnest asked about the cap by state of 1.5%. She stated the next cycle it will change to 2%.

New Business

Board Comments

Trustee Lovell moved to adjourn the meeting. Trustee Cheri seconded the motion, which was then unanimously approved.