Board of Trustees
January 12, 2023
The North Arkansas College Board of Trustees met in regular session on Thursday, 12 January 2023 in JPH conference center. Chair McNew called the meeting to order at 3:00 p.m. Trustees Kevin Cheri, Pam Henry, Linda Pledger, Debbie Johnson, Luke Feighert, Sarah Newman, Don Tomlinson, Scott Miller were present.
North Arkansas College personnel attending included Richard Stipe, Dr. Rodney
Arnold, Brandon Cone, Micki Somers, Ryan Hoffman, Melissa Bray, Nell Bonds, Tavonda Brown, Kris Greening, Dr. Matt Cardin, Chad Johnson, Cindy Dollard, Dusty Domino, Judy Kay Harris, Amy Roberts, Dr. David Mason, and Jeff Dezort from Harrison Daily Times.
Approval of Agenda
Chair McNew asked if there were any changes to the agenda as presented. Trustee Pledger asked to add a discussion on policies of Student Housing under new business. Chair McNew asked for a motion to add the discussion of policies on Student Housing. A motion was made by Trustee Pledger, seconded by Trustee Tomlinson, and unanimously approved.
Finance Report—Richard Stipe shared E&G and Auxiliary budget activities through December 2022.
In the E&G fund, Richard Stipe stated total revenue for the month was $1,702,711 and the year-to-date was $11,031,311. The expenditures for the month were $1,655,901 and the year-to-date was $8,644,204, which is in trend with previous months. He said at this time, they are still looking at the outcome of enrollment.
Auxiliary: Revenue for the current month ended at $186,185 with a year-to-date total of $1,179,243. Expenditures current month total ended at $111,952 and a year-to-date total of $1,140,120. There was a net gain for the month of $74,233. Richard stated the revenue and expenditures were tracking slightly ahead, mainly due to student housing and grill activities. Trustee Tomlinson asked how the College Grill was profiting. Richard stated it is too early to tell because of the front costs and waiting for more of a track record. Trustee Tomlinson asked if there are plans to have a grill at the North campus. Richard stated they are looking in that direction. He said they are currently selling some food items in the college store at the north campus.
President's Report—Dr. Massengale stated the Student Semester Credit Hours were 15,607 and the Headcount was 1527 for the spring 2023 semester. He said Spring classes are in full swing and the Associates in Hospitality, Sports Management, and the HVAC technical certificate will be voted on at the ADHE meeting. Installation on our new paint booth at the north campus is in progress. Dr. Massengale spoke about the first Fall Commencement and congratulated Bergman student, Charles Klepper receiving his Associates degree while in high school. He said it was exciting to see him complete this accomplishment.
Trustee Tomlinson asked if the paint booth located on the North campus was due to toxicity. Richard Stipe said the technical center received a grant towards this project. Scott Howie stated the old booth did not allow the waterborne paint which is industry standard.
The Consent Agenda included the December regular meeting minutes and replacement position, Assistant Director (Adult Education grant funded) Chair McNew asked for a motion to approve the Consent Agenda. A motion was made by Trustee Henry, seconded by Trustee Johnson, and unanimously approved.
Richard Stipe presented the Increase reserves; improve efficiencies report. Richard reported an overview of the affordability section of the past strategic objectives that included, Fund balance, Expenditures per FTE, Tuition & Fees, and Program Grants & Awards. He said his report also includes the new strategic plan objectives.
He stated the fund balance is an important measure our financial health for the college to maintain cash reserves at a certain minimal level. Typically, it can range for two months of annual operating expenditures for what a minimal target would be, and it can depend what pier institutions, the state legislature, and public would expect in terms of managing the college’s resources. One complicated factor is the impact of the net pension liability. He said this changed a few years ago on an accounting standpoint, that includes measuring the liability that effects the fund balance.
Northark has made progress in our fund balance as percent of revenue with Governmental Accounting Standards Board (GASB) pension & OPEB liability. Richard presented the fund balance as percent of revenue with and without GASB pension and OPEB liability. Richard explained the factors that affect the expenditures per FTE, Instruction, Academic Support, Student Services, Institutional support, Physical Plant, and scholarships. Richard expressed his appreciation of our program grants & awards received.
Northark’ s tuition rates are slightly above in-state ATYC average due to the increase of tuition last year. Richard discussed the comparison chart and Northark is listed at sixth affordable two-year college in- district. Mr. Stipe stated the two-year college’s tuition rates are not funded with state funds on equitable field. He said this is not necessary a negative because some schools have different programs, but it does impact the tuition decisions. Every effort is made to keep Northark at a reasonable cost. Trustee Miller mentioned that Taney county is across the line and asked if they were in the out-of-state column. Richard said we do have a county rate for Stone, Taney, Ozark, and Berry. He stated there is a reduction of the rate.