Financial Issues Facing the College of Marin

By Diana M. Conti

These are some key issues we have addressed and will address in my next term

Here are some highlights:

Financial Stability -- COM is financially sound.

We have implemented a five year plan to fully pay the unfunded liability for retiree health benefits. I am proud that COM is the first agency in the county to have implemented such a plan.

We have also implemented a multi-year plan to eliminate a structural deficit caused by reductions in property taxes and State categorical funding.

Fundraising

COM recently established a new internal Advancement Office (fundraising department) that has raised nearly $500,000 to date. Efforts continue to raise major donor funds from individuals, organizations, and grants.

The College of Marin Foundation (COMF)

The extremely unfortunate issues with the College of Marin Foundation, (a separate organization from COM) will be resolved soon.

The College of Marin Foundation has always been a separate, 501c3 organization not under the control of the College of Marin. The President of COM and the President of the COM Board of Trustees had an ex-officio, but non-voting spot on the COMF Board. I was President of the COM Board when all members of the COMF Board resigned en mass in September, 2012. That is how Dr. David Wain Coon, Superintendent/President of COM, and I ended up as the only two COMF Board members left.

We obtained bank statements that showed there was no money left for ongoing operations.

We discovered that the previous board had ceased all efforts to complete its financial statements. We spent countless hours delving into records and files to determine the current status of COMF. We also discovered that all insurance had been cancelled, making it not feasible to add new people to the board. We had no choice but to use COM resources to pay for completion of the financial statements. An independent audit of COMF was conducted as part of the annual COM audit (COMF has been part of the COM audit for many years).

The audit showed that the former COMF Board inappropriately spent $464,464 of restricted donor funds for unbudgeted and unapproved expenses.

The result was that all funds that were restricted to be used only for specific programs were depleted with unbudgeted administrative expenses. The only funds remaining were those that were endowed (the principal amount is protected and only interest earned can be spent). Vital resources for COM programs were squandered, and there are no funds available to continue to operate COMF.

The good news is that the scholarship funds were endowed and we are able to continue to grant scholarships. $3.8 million in endowed funds remain intact.

We are working out details for the Marin Community Foundation to manage the remaining funds. We have informed the State Attorney General's Office (AG) and we await their review in order to complete a transition process.

For more details refer to this link on the COM web site:

Community Responsiveness and Partnerships

COM has vastly improved its processes to engage the community in issues that matter to them. Community groups are now involved in all aspects of planning for the new academic center. We meet on an ongoing basis with neighbors and other groups to assure that building designs and construction protocols are responsive to their needs and concerns.

Many community groups came forward to express the importance of the track for both students and the larger community. We were able to allocate bond funds to renovate COM's track with high quality, durable materials. The new track is being enjoyed by many community groups.

Several years ago, cuts to categorical funding for disabled students threatened our ability to continue to serve students with disabilities related to brain injuries. We formed a successful partnership with the Marin Brain Injury Network and were able to preserve all services through the collaborative efforts.

COM is doing extensive outreach to high schools to determine student needs and it has developed improved procedures for high school students taking college courses. Collaborations continue with businesses in many occupational fields.

Future Vision

The future of COM appears solid -- leading me to the following vision of its success over time:

The bond-funded projects should be completed in 2014, with greatly improved campuses.
Our fundraising efforts will continue to yield increasing donations. Scholarships will continue to assist students whose needs have grown due to increased State tuition fees.
The remaining facilities will incrementally be upgraded according to the master plan as part of multi-year budget planning.
Student success rates will continue to climb.
COM will continue its prudent financial management.
COM will continue to respond to the needs of life-long learners.
COM will increase its community presence as a resource for higher education, culture, and community involvement.
Develop a long term vision for IVC working closely with the Novato Community
Build greater partnerships with businesses