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Section 3: Comprehensive Standard 3.10.1
The institution’s recent financial history demonstrates financial stability.
Statement of Compliance: Dyersburg State Community College is in compliance with Comprehensive Standard 3.10.1.
Rationale for Judgment of Compliance:
Dyersburg State Community College (DSCC) defines acceptable financial stability as the ability to pay debts within a reasonable time, to consistently generate more revenue than expenses, to maintain adequate reserves for an extended number of years, and to financially support the mission of the College.
DSCC has maintained prudent management of its funds despite a consistent deficiency in state appropriations for the past several years. Numerous steps have been taken to ensure continuous operations, to fund faculty and staff salaries, and to enable students to complete their preferred educational programs.
DSCC’s Annual Financial Reports for Fiscal Year Ended (FYE) 2004 through FYE 2006 [Ref 1] [Ref 2] [Ref 3] indicate the College is in good financial standing showing positive net assets and fund balances for five consecutive years. The audit report for FYE 2004 has been completed [Ref 4]. The onsite audit of fiscal years 2005 and 2006 has been completed. The field exit conference was held on February 12, 2007, and the audit report with no findings is expected in mid-April 2007. Additional evidence of good financial standing is indicated by the 5 percent reserve of total unrestricted Educational and General Revenue and unallocated balances for FYE 2004 through FYE 2006. The evidence is reflected in the table below.
|
Year |
Reserve |
% of Total Unrestricted Educational and General Revenue |
| 2001-02 |
$375,420 |
3.88% |
| 2002-03 |
$482,495 |
4.80% |
| 2003-04 |
$557,518 |
5.00% |
| 2004-05 |
$588,593 |
5.00% |
| 2005-06 |
$611,806 |
5.00% |
DSCC has maintained financial stability. Economic factors identified in the Management’s Discussion and Analysis for the fiscal year ending June 30, 2006 indicate DSCC will continue to maintain financial stability with an expected headcount enrollment increase and additional facilities coming on line beginning spring 2007 [Ref 5] [Ref 6] [Ref 7].
Authored by Ms. Velma Travis in coordination with the SACS Leadership Team
Documentation:
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Full PDF Version of Reference Source |
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Reference 1:
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Reference 2:
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Reference 3:
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Reference 4:
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State of Tennessee Annual Audit Letter for Years Ended June 30, 2003 and June 30, 2004 |
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Reference 5:
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2006 Management’s Discussion and Analysis (MD&A)
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Reference 6:
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Reference 7:
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