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HomeMy WebLinkAboutDel Mar College - Public Financial Report101 BALDWIN BLVD. CORPUS CHRISTI, TX 78404 3 President’s Letter 4 2020-2021 Board of Regents 5 INSTITUTIONAL HIGHLIGHTS 8 FINANCIALS: FISCAL HIGHLIGHTS 9 FINANCIALS: Financial Report 11 FINANCIALS: Revenues by Source 12 FINANCIALS: Financial Aid & District Tax 13 FINANCIALS: Expenses by Type The financial information provided in this document is derived from information found in Del Mar College’s Annual Comprehensive Financial Report (ACFR). To view the Annual Comprehensive Financial Report, which contains more detailed information, please visit www.delmar.edu/offices/cfo/ To request a printed copy of the ACFR, please email colrel@delmar.edu 14 FINANCIALS: Expenses by Cost PRESIDENT’S MESSAGE3 The past academic year was a dynamic one at Del Mar College, to say the least. While we continued to adapt to the ongoing challenges of the COVID-19 pandemic, there was much to celebrate on other fronts. For example, the College was honored in November 2020 to be named a Governor’s Volunteer Award recipient by Texas First Lady Cecilia Abbott and the OneStar Foundation for the Rebuild Texas Carpentry Skills Training Program. Through the program, DMC offered free carpentry training to over 250 participants seeking to rebuild after Hurricane Harvey or simply to gain marketable job skills. We also reached a milestone last year when we were notified that the College successfully achieved reaffirmation of accreditation by the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC). This means our accreditation is secure for the next 10 years. Congratulations to all! In another exciting development, the College adopted new campus names, logo and colors in a sweeping rebranding initiative to update the institution’s image. The timing is perfect as the College’s two existing campuses – Heritage and Windward – undergo major renovations and the Oso Creek Campus nears completion. These are just a few of the accomplishments detailed in this report. Please read further to see more highlights from the 2020-2021 academic year. Thank you, Mark Escamilla, Ph.D. President and CEO mescamilla@delmar.edu (361) 698-1203 BOARD OF REGENTS 4 Carol A. Scott Chair William “Bill” J. Kelly Dr. Nicholas A. Adame First Vice Chair Susan Hutchinson Second Vice Chair Ed Bennett Rudy Garza, Jr. Dr. Laurie Turner Libby Averyt Secretary Dr. Linda P. Villarreal Southern Association of Colleges and Schools Commission on Colleges Votes to Reaffirm DMC Accreditation College officials received news from the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) Board of Trustees reaffirmed accreditation for the next 10 years. The College’s next reaffirmation is scheduled for 2031. Additionally, the Commission had no recommendations for any follow-up actions related to the reaffirmation. Del Mar College was required to demonstrate the extent of its compliance with 74 SACSCOC standards, which are based on best practices for institutional excellence in higher education. The College’s reaffirmed accreditation is the second under President Escamilla’s leadership. As part of the reaffirmation process, the College was required to develop a Quality Enhancement Plan, or QEP, focused on a key aspect of student success. Del Mar College’s QEP, GPS: Goals + Planning = Success, centers on the College’s advising efforts and strives to improve student success by tying the Quality Enhancement Plan to its Guided Pathways and Project SENDA (Student Engaged in Direct Advising) initiative. “Academic advising is an essential service that we offer to help students both find and stay on their educational pathways. Our Quality Enhancement Plan is integrated within the College’s Strategic Plan and is aligned with other strategic efforts to ensure maximum, long-term impact on student success.” Dr. Kristina Ramirez Wilson, Associate Vice President of Planning & Institutional Effectiveness and SACSCOC Liaison. These initiatives are designed to increase the number of certificates and degrees awarded, increase graduation rates, decrease the average time students take to earn their certificate or degree and encourage student persistence semester to semester. Del Mar College is experiencing a ‘Viking Proud’ moment, and the seal of approval from the SACSCOC Board of Trustees reflects the institution’s strength and integrity as we continue serving our communities into the future with total confidence. Dr. Mark Escamilla, DMC President and Chief Executive Officer HI G H L I G H T S Hurricane Harvey’s destruction across South Texas’ Coastal Bend region was devastating. The next step was to rebuild. Del Mar College Continuing Education’s Rebuild Texas Carpentry Skills Training Program, made possible by an initial $879,000 grant from the Rebuild Texas Fund started by the Michael & Susan Dell Foundation and the OneStar Foundation, became one answer to change lives and communities impacted by the storm’s wrath. The nine-week carpentry skills training program included 19 cohorts between May 2019 and December 2020, enrolled 273 participants overall with 260 completing all training. The grant stipulated that DMC train at least 120 individuals at no cost to participants. The program and its results did not go unnoticed. Texas First Lady Cecilia Abbott and the OneStar Foundation announced in November the 2020 Governor’s Volunteer Awards and named Del Mar College as the Higher Education Community Impact–Community College Award recipient for providing workforce training and service learning to “rebuild” the Coastal Bend. Del Mar College Named 2020 Governor’s Volunteer Award Recipient for Rebuild Texas Carpentry Skills Training Program Memorandum of Agreement Between DMC and TAMUK Expands Educational Opportunities for Coastal Bend Students Del Mar College and Texas A&M University– Kingsville marked a new partnership era to benefit students attending both institutions. The impact is tremendous with the expansion of educational opportunities for Coastal Bend and South Texas students. DMC and TAMUK leadership signed a five-year Memorandum of Agreement that accomplishes three things, including establishing a: • Joint Admissions Program allowing students to identify themselves as a student at both institutions with access to facilities and programs offered by both, • Reverse Transfer permitting matriculated students attending TAMUK prior to completing their associate’s degree to transfer coursework from the university back to the college to complete their DMC degree program, and • Non-Academic Consortium Agreements providing students benefits with departments and offices at both institutions––such as admissions, financial aid, distance education and career services––exploring opportunities and developing consortium agreements that facilitate transfer, reverse transfer, concurrent enrollment and other partnership areas that expand access to higher education and students’ success at both institutions. • Texas Mutual Insurance Company awarded an eighth $100,000 grant to fund Del Mar College’s (DMC) Safety Institute and other training initiatives focused on workforce development and safety. The College’s programs provide workplace safety courses for community employers, workers and the general public. • Texas Mutual is the state’s leading provider of workers’ compensation insurance, and Del Mar College was among 11 Texas institutions to receive the grant in 2021. Two DMC divisions offer the safety training courses, including Workforce Programs & Corporate Services and Continuing Education & Off-Campus Programs. • The Texas Reskilling Support Fund Grant Program is a $175 million fund originating from the U.S. Department of Education’s Administration of The Education Stabilization Fund in the CARES Act of 2020 and was provided to the Texas Higher Education Coordinating Board (THECB) from the Governor’s Emergency Educational Relief (GEER) fund established to provide essential emergency educational support, including tuition and fees, to students significantly impacted by the COVID-19 pandemic and aid in the continuation of their education and economic recovery. Specifically, the grant is intended to support displaced Texas workers who need to reskill or upskill to re-enter the workforce and Texas students who “stopped out” of higher education without completing a post-secondary credential. Del Mar College and Texas A&M University-Corpus Christi (TAMU-CC) partner to share a $650,000 Texas Reskilling Support Fund Grant expected to support 250 students each at DMC and TAMU-CC. • The programs and degrees directly correlate with high employment demands in six career areas including business, healthcare, occupational health and safety, engineering/computer science, public service and professional skills/ trade industry. Moreover, according to Texas Labor Market Intelligence reports, significant growth is forecasted through 2028 in these areas of study. • During fiscal year 2021, the College received the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for DMC’S 2020 Annual Comprehensive Financial Report (ACFR). The annual ACFR and GFOA’s award represent Del Mar College’s adherence to the highest level of financial reporting. FINANCIAL REPORT9 ASSETS Current assets are those resources reasonably available within one year. Unlike other forms of assets, cash and equivalents, such as checking account balances and demand deposits, can be used immediately for current operational needs, such as meeting the payroll or paying vendors. Short-term investments represent the College’s holdings in allowable financial instruments due within one year. Receivables represent those monies due to the College but not yet available for use: examples include property taxes not yet paid and accrued interest. Noncurrent assets are the College’s long-term financial and plant resources. Restricted cash is the College’s endowed scholarship funds transferred to the Foundation in 2020. Plant and equipment account for the College’s equity in land, buildings, real estate improvements (such as roads and security lighting) and capital equipment expenditures such as computer network servers and digital projectors. LIABILITIES Current liabilities are short-term obligations. Accrued payroll, accounts payable and other accrued liabilities represent amounts due to employees or vendors for services, supplies or equipment provided to the College. Unearned revenues include property taxes and student tuition billed for the fall term and not yet earned. Noncurrent liabilities represent long-term obligations, usually due over a number of years. NET POSITION Net position is the accumulated resources invested in plant and equipment. PROPERTY TAXES The local property owners provide almost 54% of total resources for the fiscal year 2021. However, for a typical homeowner, Del Mar’s 2021 rate of 0.289 dollars per $100 assessed valuation represents only 11.6% of the tax bill. This compares with a local school district rate of about 1.24 dollars and the City of Corpus Christi rate of 0.646 dollars per $100 assessed valuation. Property taxes are a significant source of revenue for all Texas community colleges. Del Mar College remains fiscally sound. A complete financial condition and history based on assets, liabilities and net assets for all funds and account groups is detailed extensively for each of these years in the College’s Popular Annual Financial Report and Annual Comprehensive Financial Report for 2021. FINANCIAL REPORT FINANCIAL REPORT 10 IN THOUSANDS 2021 2020 2019 2018 2017 CURRENT ASSETS Cash & Cash Equivalents $33,946 $35,372 $35,243 $38,854 $42,015 Short-Term Investments 45,666 38,959 29,787 21,652 6,784 Accounts Receivable 8,126 9,535 11,227 8,722 8,769 Taxes Receivable 1,857 2,009 1,753 1,694 1,658 Other 960 2,934 849 2 1 NONCURRENT ASSETS Endowment Cash & Equivalents $112,672 $176,445 $127,275 $160,937 $86,302 Bond Issuance Cost Net ----- Capital Assets Net 359,063 296,614 255,950 212,640 185,179 Deferred Loss on Refunding Bonds 929 1,377 1,845 2,367 2,920 Deferred Outflow Related to Pensions 8,647 9,361 10,665 2,967 3,790 Deferred Outflow Related to OPEB 1,218 2,083 2,059 TOTAL ASSETS $573,084 $574,689 $476,653 $451,897 $337,418 CURRENT LIABILITIES Accounts Payable &Accrued Liabilities $10,831 $16,690 $13,195 $5,808 $5,945 Retirement Incentive Payable ----- Funds Held for Others 2,103 1,966 1,561 1,778 1,499 Deferred Revenue 13,630 15,155 14,832 12,744 12,077 Current Portion of Noncurrent Liabilities 14,723 13,251 11,000 10,060 9,947 NONCURRENT LIABILITIES Accrued Compensated Liabilities $7,006 $6,471 $6,470 $5,965 $5,636 Retirement Incentive Payable ----- Net Pension Liability 22,030 20,572 21,955 12,190 14,013 Net OPEB Liability 59,193 58,371 55,755 Bonds & Notes Payable 307,845 323,456 242,995 256,045 156,632 Deferred Inflows Related to Pensions 2,870 3,452 1,203 1,865 808 Deferred Inflows Related to OPEB 16,264 22,019 31,448 TOTAL LIABILITIES $456,495 $481,403 $400,414 $397,411 $206,557 NET POSITION Net Investment in Capital Assets $140,284 $126,543 $120,406 $100,961 $95,287 Restricted for Debt Service 8,176 8,431 8,161 11,922 12,343 Unrestricted (31,871)(41,688)(52,328)(58,722)23,231 TOTAL NET POSITION $116,589 $93,286 $76,239 $54,486 $130,861 REVENUES BY SOURCE11 REVENUES BY SOURCE Operating revenues increased by $562 million from 2020 to 2021: Items having the largest impact on this increase included local grant funds received from Gulf Coast Growth Ventures and the City of Corpus Christi who each contributed approximately $1 million respectively for the process technology pilot plant project. In addition, revenue from net tuition and fees decreased by $651 thousand due to a 10.75% enrollment decline caused by the ongoing pandemic. Due to the continued circumstances directly related to COVID-19 which forced the closure of most on-campus instruction, the college auxiliary services sustained losses of $588 thousand. The decrease in general operating revenues of $677 thousand was due largely to a decrease in indirect costs and administration fees earned on contract instruction and grants. Net Non-Operating revenues increased by $7.3 million from 2020 to 2021: Key factors attributable to this was an increase in debt service property taxes of $4 million to pay for the additional debt requirement created by the issuance of the Limited Tax Bond Series 2020A and 2020B. The increase in Federal Revenue of $6.8 million was largely due to COVID-related funding received to support students and provide the institution with funds needed for expanded virtual learning capabilities. Fund received totaled $2.1 million. In addition, the PELL grants to students increased by $1.8 million. The decrease in investment income of $2.3 million directly resulted from a reduction in the average yield of investment from 2.68% to 1.5%. In addition, bond fund of $43.2 million were spent on capital during the year. The $2.3 million increase in interest on capital debt resulted from the issuance of the tax bonds referred to above. IN THOUSANDS 2021 2020 2019 2018 2017 OPERATING REVENUE Student Tuition and Fees Gross $28,403 $30,335 $29,153 $28,755 $28,243 Scholarship Allowance (16,513)(17,794)(16,579)(16,227)(15,487) Federal Grants and Contracts 2,181 2,183 2,103 3,181 3,268 State Grants and Contracts 2,647 2,129 2,399 2,342 3,718 Local Grants and Contracts 3,761 1,800 1,404 524 548 Auxilary Enterprises Net 492 1,079 1,675 1,390 1,248 General Operating Revenue 2,248 2,925 3,606 2,188 1,768 Total Operating Revenue $23,219 $22,657 $23,761 $22,153 $23,306 Total Operating Expense ($124,142)($122,505)($112,273)($112,413)($110,228) Operating Loss ($100,923) ($99,848)($88,512)($90,260)($86,922) NON-OPERATING REVENUE AND EXPENSE State Appropriation $23,517 $25,500 $23,437 $22,928 $20,176 Operating Property Taxes 57,023 58,319 54,449 51,689 47,179 Debt Service Property Taxes 23,200 19,158 18,706 13,423 12,387 Federal Revenue 27,236 20,413 16,860 16,237 16,715 Investment Income 726 3,442 5,755 2,308 1,108 Interest of Capital Debt (10,457)(8,095)(8,951)(5,285)(5,075) Other Non-Operating Expenses (180)(1,929)(34)(1,025)(602) Other Non-Operating Revenue 3,161 87 43 28 11 Total Non-Operating Revenue $124,226 $116,895 $110,265 $106,613 $91,965 Increase in Net Position $23,303 $17,047 $21,753 $9,933 $5,043 12 Based on 100% of market value of property. All percentages are rounded off. 2020-2021 UNDUPLICATED HEADCOUNT 7,078 Grants LOANS Employment Scholarships AID TYPE 82% 11% 6% 2019-2020 UNDUPLICATED HEADCOUNT 9,098 DISTRICT TAX $20,880,956 Total distributed to eligible students in 20-21. FISCAL YEAR TAX YEAR TAX RATE NET ASSESSED VALUATION PERCENTAGE OF VALUATION CHANGE 2016-17 16 .246159 $24,865,880,433 8.98 2017-18 17 .259163 $25,668,882,133 3.23 2018-19 18 .281885 $27,225,706,264 6.07 2019-20 19 .280665 $28,973,089,341 6.42 2020-21 20 .288600 $29,052,187,360 0.27 FINANCIAL AID & DISTRICT TAX FINANCIAL AID Grants LOANS Employment Scholarships Federal/State/ Institutional Grants Federal/State/ Institutional Loans Scholarships Employment <1% 80% 13% 6% AID TYPE Federal/State/ Institutional Grants Federal/State/ Institutional Loans Scholarships Employment 1% 13 EXPENSES BY TYPE EXPENSES BY TYPE $124,142,232 Total expenses by type The cost of instruction includes those activities that deal directly with, or aid in, the teaching process. Instruction expenditures include not only personnel costs and supplies but also the personnel and materials required to plan, implement and manage the instructional programs. Academic support comprises those programs that directly support the instruction process, such as tutoring, library operations and instructional media services. Student services include registration and records, financial aid, counseling and other activities that provide non- academic support services to students. Operation and maintenance costs relate to those maintenance, housekeeping, public safety and other costs necessary for the proper and safe operation of the physical plant of the College. General institutional support encompasses general regulation, direction and administration, as well as those costs applicable to the College on an institution-wide basis, such as Commencement and accreditation activities. Auxiliary enterprises are those activities that charge a fee for service, such as the food services and other business-type activities. Depreciation represents the financial acknowledgement of the costs of fixed assets prorated over their estimated useful service lives. IN THOUSANDS 2021 2020 2019 2018 2017 Instruction $47,091 $48,349 $46,483 $46,536 $43,909 Public Service 151 95 155 151 129 Academic Support 7,202 7,914 7,531 7,734 7,189 Student Services 19,211 17,319 15,349 15,662 16,487 Institutional Support 23,299 23,607 21,195 20,888 19,430 Plant Operation and Maintenance 7,572 9,860 9,023 8,786 10,128 Scholarships 12,005 6,668 5,939 5,826 5,906 Auxiliary Services 1,073 1,587 1,228 1,400 1,484 Depreciation 6,538 7,106 5,370 5,430 5,566 TOTAL $124,142 $122,505 $112,273 $112,413 $110,228 14EXPENSES BY COST EXPENSES BY COST $124,142,232 Total expenses by cost As with any service organization, personnel costs — salaries and benefits — make up the largest single cost category at 62.8%. Salaries alone represent 48% of total costs. Benefits, including health, unemployment and Medicare insurance costs, constitute 14.8% of total expenditures. Supplies and service expenditures account for 22.4% of operating expenditures. They include services provided by outside agencies, as well as instructional and administrative supplies. Scholarships, mostly funded by federal financial aid, represent almost 9.7%. IN THOUSANDS 2021 2020 2019 2018 2017 Salaries $59,547 $60,690 $56,996 $56,528 $55,334 Benefits 18,439 20,094 18,712 21,459 18,630 Utilities 2,829 3,254 3,176 3,069 3,332 Supplies and Services 24,784 24,693 22,079 20,101 21,476 Scholarships 12,005 6,668 5,940 5,826 5,890 Depreciation 6,538 7,106 5,370 5,430 5,566 TOTAL $124,142 $122,505 $112,273 $112,413 $110,228 Del Mar College is an Equal Opportunity/Affirmative Action Employer and Educational Institution. The College takes affirmative action to endeavor that no person shall be denied the benefits of equal employment or be subjected to discrimination in employment or educational programs and activities of Del Mar College on the basis of race, color, sex (including pregnancy, gender identity/transgender status, sexual orientation), age, national origin, religion, disability, or any other constitutionally or statutorily impermissible reason. This report and other financial documents can be found online at delmar.edu © 2022 Del Mar College. All rights reserved.