Dyersburg State Community College (DSCC) defines having a sound financial base and demonstrated financial stability to support the mission of the institution and the scope of its programs and services as the ability to provide "leadership in public service activities, workforce development projects, and educational collaborations" [Ref 1].

Proof of financial stability is demonstrated in the table below. DSCC has maintained a 5 percent reserve of total unrestricted Educational and General Revenue and unallocated balance.

The Vice President for Finance and Administrative Services is primarily responsible for compliance with this principle [Ref 2].

Financial Statements

DSCC’s financial statements and related documents are audited biennially by the State of Tennessee Comptroller of the Treasury, Division of State Audit as required by State statute [Ref 3]. These audits are conducted in conformance with Audits of Colleges and Universities published by the American Institute of Certified Public Accountants and in accordance with generally accepted accounting principles.

The audit for FY2005 and FY2006 is to be completed in Spring 2007. Documentation will be submitted as soon as it is available. In addition to audited financial statements, State Audit provides an accompanying management letter that references audit findings as well as items discussed at the field exit conference. Based on the field exit conference on February 12, 2007, DSCC anticipates receiving the state audit report with no findings by mid-April 2007 [Ref 4].

Unaudited Statement of Net Assets

DSCC provides a Statement of Net Assets in accordance with governmental accounting standards. As of the last completed financial audit of June 30, 2006, financial statements and related documents, the institution's unrestricted net assets of $2,796,651.44 are 14% of total operating expenses of $19,696,499.90 [Ref 5]. Current assets of $4,918,736.76 are greater than current liabilities of $2,399,200.45 [Ref 6].

Annual Budget

Financial Budgets are submitted to TBR three times per fiscal year for approval. A proposed budget is submitted in the spring for the upcoming fiscal year, which begins July 1. The budget is prepared in accordance with TBR Policy on Budget Control [Ref 7] and annual Budget Guidelines prepared by TBR, which incorporate legislative or executive branch requirements [Ref 8]. A separate, revised budget is submitted in the fall, outlining adjustments due to enrollment and daily operations. Finally, an estimated budget is submitted in the spring, finalizing budget revenue and expenditures for the current fiscal year.

DSCC prepares a proposed annual budget that is based upon sound planning. Each year, with its budget request, each department submits a report with objectives for the ensuing year and explaining the department’s strategies to achieve those goals as well as in support of the overall College mission and goals. It also submits a report describing the status of achievement of the current year’s objectives [Ref 9]. These reports are considered by the President, Vice President for Finance and Administrative Services and the Budget Advisory Committee, and allocations are made accordingly [Ref 10]. The original budget for the new fiscal year is submitted for approval to TBR [Ref 11]. The DSCC budget for 2006-07 was approved at the June 2006 TBR Board Meeting [Ref 12].

Once the appropriation funding is awarded to the College, the Vice President for Finance and Administrative Services prepares the final budget information and makes it available online to budget managers. Budget managers have the ability to access their budget transaction activities electronically in the budgetary control system. The budgetary control system incorporates budgets, encumbrances, and expenditures that provide current available balances. Budget changes are initiated by an account manager or vice president and require the approval of the President [Ref 13]. Some budget changes also require the approval of the TBR Chancellor [Ref 14].

All revenues are monitored against anticipated revenues, including state appropriations, tuition and other sources of income. In the event there are conditions significant enough to impact the operations of the College, appropriate changes to the budget are agreed upon by the Vice Presidents and the President. Subsequently, a budget change is submitted and implemented upon approval by the appropriate parties as directed by TBR policy [Ref 15].