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3.10.1 Financial Stability

The institution’s recent financial history demonstrates financial stability.

   
Judgment of Compliance
 
Compliance
   
Narrative/Justification for Judgment of Compliance
 

Hillsborough Community College has a sound financial base, has demonstrated financial stability, and possesses adequate physical resources to support our mission and the scope of our programs and services.  The financial base and stability of the College and our ability to provide adequate physical resources is reflected in HCC financial statements and in the annual audits of the College’s financial statements and management letters conducted by the State of Florida Auditor General's Office for fiscal years 2003, 2004, and 2005 (State of Florida Auditor General Financial Report 2002-2003, the State of Florida Auditor General Financial Report 2003-2004, and the State of Florida Auditor General Financial Report 2004-2005). HCC has experienced continuous growth in enrollment, resulting in a 40% increase over the past five academic years. HCC funding is provided by revenues from the State of Florida, student tuition, auxiliary sales, and interest. HCC's total revenues increased by 7% in fiscal year 2003, 19% in fiscal year 2004, and 8% in fiscal year 2005.  These funding sources are adequate to provide financial stability for the College, as demonstrated by the annual financial statements filed by the College in the past three fiscal years.  These reports, for 2003, 2004, and 2005, show an increase in net assets each year.

Hillsborough Community College’s programs are fully funded each year based on College initiatives and budget allocations.  HCC’s Budget over the last four fiscal years has been adequate and has exceeded expenditures (HCC Budget 2002-2003; 2003-2004; 2004-2005; 2005-2006 ). The total budgeted revenues and expenditures have increased each of the past three years; for example, in the fiscal year ending June 30, 2005, HCC experienced a $10 million dollar increase in current assets, a $6 million dollar increase in capital assets, and a $1 million dollar decrease in total liabilities.

On a monthly basis, HCC's actual expeditures are compared to the College Budget, and the reports are reviewed by College management and the HCC District Board of Trustees.  HCC has not experienced major changes in unrestricted revenues and expenditures nor any unusual financial conditions.  In the event of such rare circumstances, the College provides a mechanism for amending the Budget to compensate.  As an example, during the 2003-2004 fiscal year, the State Legislature adopted an appropriation plan that increased the proportion of funding from student fees to offset a decrease in appropriations in that year.  HCC’s Board of Trustees, within its authority, adopted the tuition increases in order to provide for stable revenue in that year. 

The primary source of funding for HCC's Capital Improvement Program (please refer to Comprehensive Standard 3.10.7 – Physical Facilities) is State appropriation, but this funding is supplemented by local sources including private donations, the Capital Outlay and Debt Service fees and bond proceeds there from, and the student Capital Improvement Fee. The Board of Trustees was recently authorized by the State to use the student Capital Improvement Fee as security for bond issues for facilities projects, providing another major source of funding to HCC’s facilities resource needs.  Within HCC’s annual Operating Budget, a recurring base budget is provided to the campuses for renewal and replacement of equipment.  In addition, through the Planning Process, special initiatives provide for HCC's additional capital expenditures.  For example, in HCC's 2005-2006 Budget cycle, $1.8 million dollars was earmarked for capital upgrades of classroom furnishings and educational equipment.  Additional capital investments for new and expanded program needs are made largely through special funding such as grants and construction funds.

Hillsborough Community College maintains no endowment funds within College funds.  The College is benefits from funds endowed through the HCC Foundation, Inc.  The Foundation is registered with the State of Florida as a 501(c)3 non-profit organization, and the Executive Director of the Foundation reports directly to the College President. In the past three years, HCC has enjoyed increased public and private donations to its endowment program to support student scholarships (HCC Foundation Summary of Endowments for 2003, 2004 and 2005). Endowment funds increased by 3.5% in 2003, 14% in 2004, and 26% in 2005, with a planned spending rate of 5%.

The Foundation has adopted the HCC Foundation Investment Policy and has engaged an Investment Manager, SunTrust Bank, to ensure the Foundation’s assets are invested according to the guidelines of the Policy.  The Budget, Audit, and Investment Committee meets three to four times annually to review investment statements and meets periodically with the Investment Manager. The Investment Manager notifies the Foundation if he has recommendations regarding Policy modification or if HCC's investment portfolio nears the allocation thresholds noted in the Investment Policy.

Hillsborough Community College employs qualified staff to manage and sustain the College’s financial stability.  These administrators, whose qualifications are included in Comprehensive Standards 3.2.8 Qualified Administrators, are supported by the professional staff listed in the Summary of Financial Staff Qualifications.

   
Supporting Documentation
 

 

Comprehensive Standards

3.1.1 Institutional Mission
3.2.1 Selection of CEO
3.2.2 Legal Authority & Operating Control
3.2.3 Gov. Board: Conflict of Interest
3.2.4 Gov. Board: Undue Influence
3.2.5 Gov. Board: Dimissal
3.2.6 Gov. Board: Distinction of Duties
3.2.7 Organizational Structure
3.2.8 Qualified Administration
3.2.9 Appointment & Employment
3.2.10 Evaluation of Administrators
3.2.11 CEO: Intercollegiate Athletics
3.2.12 CEO: Fund Raising
3.2.13 Foundation
3.2.14 Ownership of Materials
3.3.1 Institutional Effectiveness
3.4.1 Program Approval & Lrng. Outcomes
3.4.2 Continuing Education Programs
3.4.3 Admissions Policies
3.4.4 Policies for Academic Credit
3.4.5 Dissemination of Academic Policies
3.4.6 Practices for Awarding Acad. Credit
3.4.7 Consortial & Contractual Programs
3.4.8 Acad. Credit for Non-Credit Work
3.4.9 Support Services
3.4.10 Definition/ Gen. Ed. Requirements
3.4.11 Security of Student Acad. Records
3.4.12 Faculty Responsibility/ Curriculum
3.4.13 Program Coordination
3.4.14 Use of Academic Technology
3.5.1 Attainment / Gen. Ed. Competencies
3.5.2 Credit Earned at Institution
3.6.1 Advanced Academic Contents
3.6.2 Independent Learning
3.6.3 Credit Earned at Institution
3.7.1 Faculty: Qualifications
3.7.2 Faculty: Evaluation
3.7.3 Faculty: Professional Development
3.7.4 Faculty: Academic Freedom
3.7.5 Faculty: Policies on Responsibility
3.8.1 Library: Facilities and Services
3.8.2 Library: Access
3.8.3 Library: Staff
3.9.1 Student Rights & Responsibilities
3.9.2 Security of Student Affairs Records
3.9.3 Qualified Student Affairs Personnel
3.10.1 Financial Stability
3.10.2 Financial Statements
3.10.3 Financial Aid Audits
3.10.4 Control of Financial Resources
3.10.5 Control of Sponsored Research
3.10.6 Healthy, Safe, Secure Environment
3.10.7 Physical Facilities