The Board moved to approve the Consent Agenda. President Breuder made a comment to change a financial statement in the Board Packet. Tom Glazer and Lynn Sapata spoke at the microphone regarding the definition of liquidity. He stated COD has more than a year’s worth of operating expenses on hand in cash, which could be used if there is some sort of disaster. He did not describe any disaster scenarios. He stated in response to Trustee Hamilton that the board, because it does not meet very often, could see reports regularly. Hamilton stated what the College has been using is a net worth calculation and it’s a little more sophisticated in relying on the administration to point us to the 50% of revenue for defining the fund balance. So Hamilton stated this way we get a chance to compare the old liquidity measurement versus the newer policy. Hamilton stated that in the end the reason why we didn’t use what is in the Board manual is because it didn’t fit the strategic needs of the administration. Hamilton says we as board members get a more fundamental sense of how much is in our account and how much we’ll spend. But the administration looks at it in a more sophisticated sense. Hamilton is excited about this, and we can look at liquidity and board policy, but I think we’ll find that one will track the other. When we look at liquidity we don’t want to turn that into policy because that would tie the hands of the people running the college. We don’t want to do that but it’s great to be able to see this and understand our finances better and make great decisions.
Trustee McGuire was happy to see the calculations both ways.
Hamilton said we’ve discussed if it’s based on disbursements or revenue and there’s a difference.
Breuder stated these reports are “companions” and we need to continue to report in the traditional way.
Hamilton stated the difference between the two accounts is you take out the auxiliary accounts.
Secretary O’Donnell read the consent agenda items up for approval.