desert community college district regular … · cod alumni association ... attended the art...

DESERT COMMUNITY COLLEGE DISTRICT REGULAR BOARD MEETING

CRAVENS STUDENT SERVICES BUILDING MULTI-PURPOSE ROOM FRIDAY NOVEMBER 19 2010

MINUTES I CALL TO ORDER ndash PLEDGE OF ALLEGIANCE The meeting was called to order at 935 am by Board Chair Marman COD Alumni Association Executive Director Gene Marchu led the Pledge of Allegiance II ROLL CALL Trustees Becky Broughton John Marman Michael OrsquoNeill and Student Trustee Aries Jaramillo were present Trustee Bonnie Stefan was present via teleconference Trustee Charles Hayden was attending the Community College League of California Conference and was excused III CONFIRMATION OF AGENDA

A motion was made by Trustee OrsquoNeill seconded by Trustee Broughton to approve the agenda as presented Motion carried unanimously with one absent IV PUBLIC COMMENTS (All Items) None V APPROVE THE MINUTES There were no corrections to the minutes of the September 30 2010 Retreat or the October 15 2010 regular Board meeting and they stand approved VI REPORTS

A Governing Board Trustee Broughton reported on or attended the following

Attended the Homecoming BBQ and game She thanked Gene Marchu and the Alumni Association

Visited the Mecca Thermal Campus and was pleased to see the computer lab full There was also a math tutor present and she was told there is an English tutor there 2 days a week

Attended a performance of Flea in her Ear Attended the Alumni Pie Social Reminded everyone that ASCOD was collecting food items for FIND

Trustee OrsquoNeill reported on or attended the following

Attended the Deanrsquos Tea Commended Terri Alm and Wade Ellis for their hard work on the employee insurance

plan switch Trustee Stefan reported on or attended the following

Attended the Art Exhibit at the Marks Art Center Attended International Day

Student Trustee Jaramillo reported on or attended the following

ASCOD smoking survey will be available next week on the website for the campus community to take

Spoke at the COD Foundation Auxiliary Luncheon Volunteered at the Foundation Street-Fair booth on November 13 Visited both the EVC and MTC on November 10

Trustee Marman reported on his activities and in the interest of time kept his remarks brief

Attended a dozen activities on behalf of the College Attended a 2 + 2 meeting with Desert Sands Unified School District

B ASCOD Tony Aguilar President ASCOD was present and gave his report C ALUMNI ASSOCIATION

Mr Gene Marchu Executive Director COD Alumni Association was present and gave a brief report D ACADEMIC SENATE

Dr Rey Ortiz President Academic Senate was present and gave a brief report E Faculty Association Mr Chuck Decker President CTA was present and gave a brief report F CODAA Ms Cathy Levitt Vice President of CODAA was present and gave a brief report G Dr Edwin Deas honored the outgoing Citizensrsquo Bond Oversight Committee members

John Fort Student Juan Gonzalez Al McCandless and Ken Feenstra Both Mr McCandless and Mr Feenstra were present and presented with Certificates of Appreciation by the Board Chair John Marman

H CSEA

Ms Mary Lisi President CSEA was present and gave a brief report I FOUNDATION Ms Joanne Padgham Foundation Director of Development was present and gave a report on the Foundation Audit J ADMINISTRATIVE REPORTS

President Patton introduced Dr Kelly Hall Assistant Professor of Business and acknowledged her contributions to College of the Desert Mr Farley Herzek Vice President Academic Affairs introduced Dr C Douglas Kroll Associate Professor History who presented his sabbatical report which was a book titled ldquoA Coast Guardsmenrsquos History of the Coast Guardrdquo Student Trustee Jaramillo reported every year ASCOD hosts an advisors luncheon and club members are asked to write letters to ASCOD with nominations for faculty of the year award Dr Kroll was awarded the 2010 Faculty of the Year award for his work with the student veterans organization Dr Edwin Deas Vice President Business Affairs introduced Kris Kay and Jeff Fuller from GKK Works who presented a Power Point on the new campus in Indio Student Trustee Jaramillo requested a copy of the Power Point to show to the student senate Mr Farley Herzek Vice President Academic Affairs presented the Educational Master Plan A copy of the plan was distributed to each member on a zip drive He explained this is a culmination of a yearrsquos work of the College Planning Council Included in the plan is for every campus to include Basic Skills and ESL along with a strong general education program which includes transfer and degree and CTE The plan includes an outstanding external scan of the Coachella Valley and itsrsquo needs as well as an extensive faculty staff and student survey The plan clearly articulates the programming for West Valley Mecca-Thermal and Indio campusrsquo and includes recommendations for possible new programs and programs that may need to be strengthened on the Palm Desert campus This plan will be revisited used and updated often Trustee Broughton asked Mr Herzek to work with Pam LiCalsi and Bina Isaac to find some dashboard indicators that the board could be updated on every couple months Ms LiCalsi explained that one of the processes already in place as part of the institutional effectiveness and planning is updates 3 times a year November February and May The Board will receive these updates via email President Patton reported briefly on the state budget and itsrsquo impact on the college Mr Herzek updated the Board on where College of the Desert is with SB 1440 which is the new associate degree transfer curriculum To date the community college system working alongside CSU has developed 5 model curriculum that are in draft form Students with a 20 GPA who complete 60 units at the community college are guaranteed admittance to a CSU in a

like major Our faculty now has an opportunity to review this draft and decide if they are the appropriate courses for COD VII CONSENT AGENDA All items on the Consent Agenda will be considered for approval by a single vote without discussion Any Board member may request that an item be pulled from the Consent Agenda to be discussed and considered separately in the Action Agenda There was a request to pull item B 9 Travel and discuss it under the Action Agenda A motion was made by Trustee Broughton seconded by Trustee OrsquoNeill to approve the consent agenda with the change noted The motion carried unanimously with one absent to approve the consent agenda with the change noted

A BUSINESS AFFAIRS ndash Human Resources 1 Classified - Appointments 2 Classified ndash Working Out of Class 3 Classified ndash Reduction in Hours 4 Classified ndash Reclassification of Position 5 Classified ndash Leave of Absence 6 Leadership ndash Appointments 7 Confidential ndash Appointment 8 Leadership - Retirement 9 DCCD amp CTA ndash 2nd Reading - Article XIII amp Retirement Incentive 10 DCCD amp CTA ndash 1st Reading - Appendix K 11 DCCD amp CTA ndash 1st Reading ndash Article XXIX 12 DCCD amp CODAA ndash 1st Reading ndash Article XXII 13 Hourly Personnel - Student Workers Substitutes amp On-Call Employees 14 Employment Agreements

B BUSINESS AFFAIRS ndash Business Services Fiscal Services 1 Change Order 1 ndash Cravens Student Services Center Project ndash Caston Plastering

amp Drywall 2 Change Order 1 ndash Cravens Student Services Center Project ndash Pro-Craft

Plumbing 3 Change Order 2 ndash Cravens Student Services Center Project ndash Brudvik Electric 4 Change Order 2 ndash Cravens Student Services Center Project ndash EMS Construction 5 Change Order 2 ndash Cravens Student Services Center Project ndash RVH Constructors

Bid Package 12 6 Approval of Contracts 7 GiftsDonations to the District 8 Payroll 4 9 To ApproveRatify Out-of-StateCountry Travel Moved to Action Agenda 10 Approval of Warrant Lists

VIII ACTION AGENDA

A BUSINESS AFFAIRS ndash Business Services Fiscal Services 9 Travel

A motion was made by Trustee Broughton seconded by Trustee Stefan to approve the travel as presented Discussion followed Trustee OrsquoNeill requested additional information on the item relative to the dollars involved The Boardrsquos copy does not reflect that staff development funds of $800 were requested The remaining costs will be paid out-of-pocket Trustee OrsquoNeill requests that total costs be reflected on the agenda item including facultystaff development funds and out-of-pocket expenses The motion carried unanimously with one absent

B BOARD OF TRUSTEES

1 Annual Organization meeting date

A motion was made by Trustee Broughton seconded by Student Trustee Jaramillo to approve the organization meeting date as presented Motion carried unanimously with one absent

C BUSINESS AFFAIRS ndash Fiscal Services Facilities Services

1 Notice of Completion ndash Nursing Building Renovation Project ndash Western Audio Visual

A motion was made by Trustee Stefan seconded by Student Trustee Jaramillo to approve the notice of completion as presented Motion carried unanimously with one absent

2 Receive the CCFS311 Annual Budget Report A motion was made by Student Trustee Jaramillo seconded by Trustee Broughton to receive the annual budget report as presented Wade Ellis Director of Fiscal Services reviewed the report with the members Motion carried unanimously with one absent 3 Approve Resolution 211 ndash Authorize Participation in the SISC Flex Plan A motion was made by Trustee OrsquoNeill seconded by Student Trustee Jaramillo to receive the report as presented A roll call vote was taken with all members voting aye with one absent 4 Receive 2009-2010 Audit Report for the College of the Desert Foundation A motion was made by Trustee Broughton seconded by Student Trustee Jaramillo to receive the 2009-2010 audit report for the College of the Desert Foundation as presented Motion carried unanimously with one absent

IX SUGGESTIONS FOR FUTURE AGENDAS

1 Trustee Stefan asked if there could be a discussion in the future on a Board of Trustees

fund to assist students that have books stolen 2 Trustee Stefan would like an update on the Child Development Center 3 Re Zerryl Beckerrsquos FLEX presentation on equivalency Trustee OrsquoNeill requested an

update on whether the college is moving forward with this process 4 Trustee Marman reported that Trustee Hayden would like the Board to review Board

Policy 2725 Board Member Compensation

X ITEMS OF INFORMATION

1 Revised Board Policy 11001 Desert Community College District 2 Revised Board Policy 2100 Board Elections 3 Revised Board Policy 2305 Annual Organizational Meeting 4 MOU Concurrent Enrollment 5 Review of Draft Accreditation Report Ms Pam LiCalsi updated the members on the process and timeline A hard copy of the report is to be mailed to the Board in the next couple of weeks for their review prior to their approval in December

XI BOARD COMMENTS Trustee OrsquoNeill was encouraged and impressed with Chancellor Scottrsquos remarks recently sent to the Trustees by President Patton He also expressed his disappointment with Vision 2020 although there were some good points made Trustee Stefan reported she hears from faculty members about how wonderful Dean Juan Lujan is The faculty are unanimous in their comments that he goes above and beyond She would like the college to honor him Trustee Broughton said that while the Board has tried to set an example by limiting its travel she encouraged Trustee OrsquoNeill to attend the CCLC Conference in January Trustee OrsquoNeill said he is already registered for this conference and is looking forward to it Trustee Marman in interested in spring registration and suggested a presentation on whatrsquos different and what new things wersquore doing Mr Herzek distributed the spring 2011 class schedule Ms LiCalsi explained there are several changes to the format inside one of which is a section specifically for online classes Schedules were not mailed this time but there were 63000 postcards announcing the schedules are available online and where someone could find a hard copy There was additional discussion about various aspects of the schedule XII CONVENE CLOSED SESSION

1 CONFERENCE WITH LABOR NEGOTIATOR Pursuant to Section 549576 unrepresented groups amp labor unions on campus include CTA CODAA and CSEA Agency Designated Representative Dr Edwin Deas

2 PUBLIC EMPLOYEEIGOVERNMENT CODE SECTION 54957 DisciplineDismissalReleaseEvaluation of a Public Employee

3 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Name of Case or specify whether disclosure would jeopardize service of process or existing settlement negotiations

4 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Specify number of potential cases

XIII RECONVENE PUBLIC MEETING

There was no reportable action taken in closed session

XIV ADJOURN

A motion was made by Trustee ONeill to adjourn Meeting adjourned at 310 pm

Combined Financial Statements

College of the Desert Foundation For the Year Ended June 3020 10 with Comparative

Totals for the Yeas Ended June 302009

Maryanov Madsen Gordon amp Campbell CERTIFIED PUBLIC ACCOUNTANTS - A Professional Corporation


INDEPENDENT AUDITORS REPORT

Board of Directors College of the Desert Foundation Palm Desert California

We have audited the accompanying combined statements of financial position of College of the Desert Foundation (a California Community College Auxiliary Organization) as of June 30 201 0 and 2009 and the combined statements of activities and changes in net assets and cash flows for the years then ended These financial statements are the responsibility of the Foundations management Our responsibility is to express an opinion on these financial statements based on our audits

We conducted our audits in accordance with auditing standards generally accepted in the United States of America Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation We believe that our audits provide a reasonable basis for our opinion

In our opinion the financial statements referred to above present fairly in all material respects the financial position of College of the Desert Foundation as of June 30 2010 and 2009 and the results of its operations and changes in its net assets and cash flows for the years then ended in conformity with auditing standards generally accepted in the United States of America

October 27201 0

801 E Tahquitz Canyon Way Suite 200 Palm Springs CA 92262 tel 7603206642 fax 7603276854 M wmmgcCPAcom

COLLEGE OF THE DESERT FOUNDATION

COMBINED STATEMENTS OF FINANCIAL POSITION FOR THE YEAR ENDED JUNE 302010 WITH COMPARATIVE TOTALS

FOR THE YEAR ENDED JUNE 302009

General Expendable Endowment Totals

ASSETS Cash and cash equivalents Investments Accrued interest receivable Pledges receivable net Other receivables Property and equipment net Donated assets Assets held in trust Other assets

TOTAL ASSETS

Operating ~estricted Restricted (Memorandum Only) Fund Fund Fund 201 0 2009

LIABILITIES Accounts payable and accrued liabilities $ 105516 $ 75968 $ 5919 $ 187403 $ 288999 Deferred contribution income 1 I 08777 1 I 08777 1283029

Total liabilities

NET ASSETS Unrestricted

Undesignated Board designated

Temporarily restricted Permanently restricted

Total net assets

TOTAL LIABILITIES AND NET ASSETS $ 1145285 $ 3601485 $ 17219928 $ 21966698 $ 19036325

The accompanying notes are an integral part of these financial statements

2


COMBINED STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30201 0 WITH COMPARATIVE TOTALS


General Expendable Endowment Totals Operating ~ks t r ided Restricted (Memorandum Only)

Fund Fund Fund 201 0 2009 - -- ~ ---- REVENUE AND SUPPORT

Memberships donations and grants $ 1000677 $ 989526 $ 1961755 $ 3951958 $ 4754008 Income on investments - net 21715 306885 1 12690 441290 463971 Special events net of costs of direct benefits

to donors of $50484 and $194862 during the years ended June 30201 0 and 2009 respective1 y 85898 85898 308929

Net unrealizedlrealized gain (loss) on investments 34625 583204 180249 798078 ( I 295845)

Other income 2274 396274 398548 233573

Total revenue and support

EXPENDITURES Wages and benefits Recognition and awards Professional fees Materials and supplies Printing and postage Depreciation Loss on sale of assets Other operating expenses and services

Total expenditures

EXCESS OF REVENUE AND SUPPORT OVER EXPENDITURES BEFOREOTHEREXPENSES 365359 2275889 2254694 4895942 3506247

OTHEREXPENSES Contributions to Desert Community

College District 1679245 10476 1689721 1227907 Bad debt 100000

Total other expenses

INCREASE IN NET ASSETS BEFORE OPERATING f RANSFERS 365359 596644 2244218 3206221 2178340

OPERATING TRANSFERS

CHANGE IN NET ASSETS 355359 623720 2227142 3206221 2178340

NET ASSETS Beginning of year

End of year



COMBINED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED JUNE 302010 WITH COMPARATIVE TOTALS


General Expendable Endowment Totals Operating ~estricted Restricted (Memorandum Only)

Fund Fund Fund 2010 2009 INCREASE (DECREASE) IN CASH

CASH FLOWS FROM OPERATING ACPIVITIES Cash received from donors $ 1051350 $1234542 $ - $ 2285892 $ 1494789 Cash paid to suppliers and employees (748373) (877187) (78985) (1704545) (3748947) interest received 21650 306950 111195 439795 455899

Net cash provided (used) by operating activities 324627 664305 32210 1021142 (1798259)

CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (1712) Proceeds from sale of asset 1480 Investments (888862) (2159946) (3048808) (46095)

Net cash used by investing activities

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from contributions restricted for

investment in endowment funds - 2127736 2127736 752426

Net increase (decrease) in cash 324627 (224557) 100070 (1092160)

Cash at beginning of year 753395 1059245 1812640 2904800

Cash at end of year

Continued


4


(Continued)




RECONCILIATION OF CHANGE IN NET ASSETS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

Change in net assets

Adjustments to reconcile change in net assets to net cash provided (used) by operating activities

Depreciation Loss on sale of assets In-kind donations to the College Uncollectable promises to give Contributions restricted for long-term purposes (Increase) decrease in assets Accrued interest receivable Pledges receivable Other receivables Assets held in trust Other assets

Increase (decrease) in liabilities Accounts payable and accrued liabilities Deferred contribution income

Total adjustments

Operating ~kstricted Restricted (Memorandum Only) Fund Fund Fund 2010 2009

Net cash provided (used) by operating activities $ 324627 $ 664305 $ 32210 $ 1021142 $ (1798259)


5


NOTES TO COMBINED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 302010 WITH COMPARATIVE

TOTALS FOR THE YEAR ENDED JUNE 302009

SUMMARY OF SIGNIFICANT ACCOLINTING POLICIES

Organization

College of the Desert Foundation (the Foundation) is a non-profit auxiliary organization of Desert Community College District The Foundation was formed July 27 1983 The purpose of the Foundation is to solicit receive invest and disburse funds for the benefit of the College of the Desert The Foundation operates primarily in the Coachella Valley of Southern California It receives substantially all of its revenues from residents of this area and is subject to economic factors which may affect charitable giving in Southern California

Accountinsr Policies and Procedures

The accounting policies and procedures used by the College of the Desert Foundation are those recommended by the California Community College manual of Auxiliary Organizations and Requirements for Accounting Reporting and Auditing prepared pursuant to the California Administrative Code Title 5 Section 59270

Basis of Accountinq

The financial records of the Foundation are maintained and the financial statements are prepared on the modified accrual basis of accounting The modified accrual basis of accounting recognizes revenues when both measurable and available Measurable means the amount can be determined Available means collectable within the current period or soon enough thereafter to pay current liabilities Also under the modified accrual basis of accounting expenditures are recorded when the related fund liability is incurred

Assets Held in Trust

Assets held in trust are recorded as deferred contribution income because no amounts are currently available for use by the Foundation These deferred corttributions consist primarily of various irrevocable charitable remainder annuity and unitrusts at their fair market values when available Revocable trusts are not recorded although irrevocable trusts with a revocable beneficiary are recorded according to the discretion of the Foundation based upon the probability of receipt

Pledges Receivable and Promises to Give

Unconditional pledges are recognized as revenues or gains in the period received and as assets decreases of liabilities or expenses depending on the form of the benefits received Conditional promises to give are recognized only when the conditions on which they depend are substantially met and the promises become unconditional

Continued


NOTES TO COlVlBlNED FINANCIAL STATENIENTS FOR THE YEEAR ENDED JUNE 302010 WITH COMPARATIVE

TOTALS FOR THE YWR ENDED JUNE 302009

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Estimates

The process of preparing financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions regarding certain types of assets liabilities revenues and expenses Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements Accordingly upon settlement actual results may differ from estimated amounts

Cash and Cash Equivalents

For purposes of the statement of cash flows the Foundation considers all highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents

Investments

investments consisting of securities and other interest bearing accounts are stated at fair market value Realized and unrealized gains and losses on investments are recognized as changes in net assets in the periods in which they occur

lm~lementation of FSP FAS 1 17-1

In August 2008 the Financial Accounting Standards Board issued FASB Staff Position No FAS 1 17-1 Endowments of Not-for-Profit Organizations Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act and Enhanced Disclosures for All Endowment Funds (FSP FAS 117-1)) FSP FAS 117-1 provides guidance on the net asset classification of donor-restricted endowment funds for a nonprofit organization that is subject to an enacted version of the Uniform Prudent Management of Institutional Funds Act of 2006 (UPMIFA) FSP FAS 117-1 also requires additional disclosures about an organizations endowment funds (both donor-restricted endowment funds and board- designated endowment funds) whether or not the orgar~ization is subject to UPMIFA

The State of California enacted UPMIFA effective December 15 2008 the provisions of which apply to endowment funds existing on or established after that date The Foundation has adopted FSP FAS 117-1 for the year ending June 30 2009 The Board of Directors has determined that the majority of the Foundations permanently restricted net assets meet the definition of endowment funds under UPMIFA

Continued





Description of Funds

General Operating Fund

The General Operating Fund is used to account for those financial transactions that are not required to be accounted for in any other fund In addition this fund is used to account for unrestricted revenue and expenditures for general administration and overhead support of transactions that cannot be charged to other funds

Expendable Restricted Fund

The Expendable Restricted Fund is used to account for monies which may only be expended for specific purposes as designated by the donor

Endowment and Annuitv Fund

The Endowment and Annuity Fund is used to account for monies contributed to the Foundation for the general benefit of the College its students or a group affiliated with the Coliege Generally only the income produced by the endowment may be expended

Donated Services and Noncash Assets

A substantial number of volunteers have donated significant amounts of their time to the Foundations program services and its fund raising activities The value of the contributed time is not measurable and accordingly is not reflected in the accompanying financial statements Contributions of donated noncash assets are recorded at their fair values in the period received

Continued


NO-~ES TO COMBINED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 302010 WITH COMPARATIVE


SUMMARY OF SIGNIFICANT ACCOUNIING POLICIES (Continued)

Property and Equipment

The Foundations property and equipment are recorded at cost and are depreciated using the modified accelerated cost recovery method over the estimated useful lives of five years

Donated Occupancy

The Foundation occupies office space on the College of the Desert Campus No estimate of fair market value has been attached to the use of this property and therefore has not been reflected in these financial statements

Income Taxes

The Foundation is exempt from income tax under Internal Revenue Code Section 501(c)(3) and operates as public charity The Foundation is also exempt from California income taxes under similar state statutes

Memorandum Onlv Totals

Memorandum Only captions on the combined statements mean the totals for the prior year are presented for overview informational purposes only and do not fairly present the financial position or the results of operations and changes in its net assets for the Foundation in conformity with generally accepted accounting principles

Reclassifications

Certain reclassifications have been made to the prior year financial statements to conform to current year presentation These changes have no effect on net assets

Date of Management Evaluation

Management has evaluated subsequent events through October 27 2010 the date on which the financial statements were issued


NOTES TO COMBINED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 302010 WITH COMPAMTIVE


NOTE 1 CASH AND INVESTMENTS

Cash consists of checking savings and money market accounts held in federally insured financial institutions

lnvestments at June 30 201 0 are comprised of the following

Unrealized Fair Market Gain(Loss) on

Value Cost Basis Investments

Certificates of deposit $ 3793018 $ 3771000 $ 22018 US Government securities 531363 51 8754 12609 Corporate bonds 41 16244 3940262 175982 Common stocks 5315703 5709202 (393499) Preferred stocks 501095 451457 49638 Mutual funds 980806 963566 17240

Total investments $15238229 $15354241 $ (1 160121

Income on investments for the year ended June 30 2010 is comprised of the following

Interest income Broker fees

Unrealized and realized gains for the year ended June 30 201 0 are as follows

Unrealized gains Realized gains


NOTES TO CONlBlNED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 302010 WITH COMPARATIVE


NOTE 2 FAIR VALUE MEASUREMENTS

Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820 Fair Value Measurements and Disclosures provides a framework for measuring fair value The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) The three levels of the fair value hierarchy under FASB ASC 820- 10 are described as follows

Level 1 inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Foundation has the ability to access

Level 2 inputs to the valuation methodology include the following - Quoted prices for similar assets or liabilities in active markets - Quoted prices of identical or similar assets or liabilities in inactive markets - Inputs other than quoted prices that are observable for the asset or

liability - lnputs that are derived principally from or corroborated by observable

market data by correlation or other means

If the asset or liability has a specified (contractual) term the level 2 input must be observable for substantially the full term of the asset or liability

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement

The assets or liabilitys fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs

Following is a description of the valuation methodologies used for assets measured at fair value There have been no changes in the methodologies used at June 30 2010 and 2009

US Government securities and common stock Valued at the closing price reported in the active market in which the individual security is traded Corporate bonds Certain corporate bonds are valued at the closing price reported in the active market in which the bond is traded Other corporate bonds traded in the over-the-counter market and listed securities for which no sale was reported on the last business day of the plan year are valued at the average of the last reported bid and asked prices For certain corporate bonds that do not have an established fair value the Foundations board of trustees has established a fair value based on yields currently available on comparable securities of issuers with similar credit ratings

Continued

COLLEGE OF THE DESERT FOUNDAl7ON



NOTE 2 FAIR VALUE MEASUREMENTS (Continued)

Mutual funds Valued at the closing price reported in the active market in which the individual security is traded Certificate of deposit Valued at amortized cost which approximates fair value

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values Furthermore although the Foundation believes its valuation methods are appropriate and consistent with other market participants the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date

The following table sets forth by level within the fair value hierarchy the Foundations assets at fair value as of June 30 2010 and 2009

Assets at Fair Value as of June 30 2010 Level 1 Level 2 Level 3 Total

Certificates of deposit $ - $ 3793018 $ - $ 3793018 US Government securities 531363 - - 53 1 363 Corporate bonds - 4116244 - 4116244 Common stocks 5315703 - - 5315703 Preferred stocks 501095 - - 501095 Mutual funds 980806 - - 980806

Total assets at fair value $7328367 - S 15238229


Certificates of deposit $ - $3139752 $ - $ 13139752 US Government securities 826494 - - 826494 Corporate bonds - 3345740 - 3345740 Common stocks 3943440 - 3943440 Preferred stocks 364125 - - 364125 Mutual funds 569868 - - 569868

Total assets at fair value $5703927 $6485492 $ - $ 12189419


NOTES TO COMBINED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 302010 WITH COMPAWVVE


NOTE 3 PLEDGES RECEIVABLE

Pledges receivable at June 30 201 0 are comprised of the following

General operating fund $ 27500 Expendable restricted fund 193334 Endowment and annuity fund (due in 1-8 years) 3473141

Less Amortization of discount

Pledges receivable net

Pledges receivable of $193334 in the expendable restricted fund relate to the Institute of Real Estate Development and Nursing A pledge of $1400000 in the endowment and annuity fund is to be used to maintain the nursing building This pledge will be collected in seven annual installments of $200000 A pledge of $1600000 in the endowment and annuity fund is to be used to maintain the Public Safety Academy This pledge will be collected in four annual installments of $400000 A pledge of $315000 in the endowment and annuity fund is to be used to maintain the student center This pledge will be collected in nine annual installments of $35000

NOTE 4 DONATED ASSETS

Donated assets held at June 30 2010 are comprised of the following

General Operating

Fund

Oil paintings Jewelry

All of the above assets were donated to the Foundation prior to 1990 and were valued at market value at the date of donation

NOTE 5 PROPERTY AND EQUIPNIENT NET

Property and equipment at cost Less accumulated depreciation

Property and equipment net




NOTE 6 ASSETS HELD IN TRUST

The Foundation is the beneficiary of various irrevocable charitable remainder trusts and charitable gift annuities The assets are held in various stocks bonds real estate and other assets in the names of the individual donor trusts and are accounted for in the endowment and annuity fund These donations are recorded at their fair market value as assets held in trust and deferred contribution income since no amounts are currently available for use by the Foundation The Foundation carries no fiduciary responsibility or liability for these trusts

The donor beneficiaries of the assets held in trust are entitled to stated amounts from these assets during the lifetimes of the designated beneficiaries At various times College of the Desert Foundation is named as the trustee As trustee the Foundation is responsible for the trusts investments collections on notes and paying the designated beneficiaries Upon terrr~ination of the trust the assets become available to the Foundation

A summary of the changes in assets held in trust for the year is summarized as follows

Balance at June 302009 $ 1283029

Assets transferred to Foundation (250000)

Assets transferred into new trusts or annuities

Net changes in current fair market values

Balance at June 302010 (valuation based on current fair market values)

NOTE 7 POOLED INCOME FUND

College of the Desert Foundation maintains a pooled income fund which is included in the assets held in trust in the endowment annuity These funds are divided into units and the contributions of many donors life income gifts are pooled and invested as a group Donors are assigned a specific number of units based on the proportion of the fair value of their contributions to the total fair value of the pooled income fund upon the date of the donors entry to the pooled fund Until a donors death the donor is paid the actual income Upon the donors death the value of these assigned units transfers to the Foundation The Foundation originally records the donations as deferred contribution income since no amounts are currently available for use The fair market value of the pooled income fund at June 30 2010 is $80891 These funds are held in trust at a bank and managed and administered by the Community College League of California

14


NOTES TO COMBINED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 302010 WITH COMPAWTIVE


NOTE 8 PROMISES TO GIVE

The Foundation has a conditional promise to give as of June 30 2010 The promise is for $315 million to be held by the Foundation as restricted endowment funds The funds will be received upon the death of the surviving donor The income from these endowment funds will be used for the repair and maintenance of the Student Services Center

NOTE 9 RELATED PARTIES

Certain members of the Foundations Board of Directors or their family members perform investment management services for the Foundation Management represents that these services are provided at arms-length and reasonable compensation is paid to the companies that employ these Board members or their family members

NOTE 10 MANAGEMENT SERVICES

A two percent transfer of funds from certain restricted net assets to the general operating fund of the Foundation is made annually Management services during the year ended June 302010 and 2009 were $316551 and $295640 respectively

NOTE 11 ENDOWMENT FUNDS

Board-designated Endowment

As of June 30 2010 the Board of Directors had designated $500000 of unrestricted net assets as a general endowment fund to support the salary of the Director of the Nursing program and the COD Foundation Auxiliary has designated $100000 for the nursing building emergency medical technician room Since these amounts resulted from internal designations and are not donor-restricted they are classified and reported as unrestricted net assets

Continued

COLLEGE OF THE DESERT FOLINDATION



NOTE I I ENDOWMENT FUNDS (Continued)

The Foundation has adopted an investment policy for asset growth and capital preservation that attempts to generate an on-going increase in assets invested while emphasizing capital preservation Endowment assets are invested in a well diversified asset mix which includes 0-50 domestic and international equities 45-95 investment grade fixed income and 5-55 cash and cash equivalents Cash reserves may be utilized from time to time to provide liquidity or to implement some types of investment strategies Cash reserves shall be held in the investment managers money market fund short-term maturity Treasury securities or high quality money market instruments Risk tolerance should be low not to exceed the 3 and 5 year standard deviations of the applicable benchmarks The portfolios return is expected to exceed the average annual return of the applicable benchmark index with a lower than benchmark volatility over a three to five year rolling time period

Donor-designated Endowments

The Foundations endowment includes both donor-restricted funds and funds designated by the Board of Directors to function as endowments As required by generally accepted accounting principles net assets associated with endowment funds including funds designated by the Board of Directors to function as endowments are classified and reported based on the existence or absence of donor- imposed restrictions

The Board of Directors of the Foundation has interpreted the State enacted Uniform Prudent Management of Institutional Funds Act (UPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor- restricted endowment funds absent explicit donor stipulations to the contrary As a result of this interpretation the Foundation classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment (b) the original value of subsequent gifts to the permanent endowment and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Foundation in a manner consistent with the standard of prudence prescribed by UPNIIFA In accordance with UPNIIFA the Foundation considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds (I) the duration and preservation of the various funds (2) the purposes of the donor-restricted endowment funds (3) general economic conditions (4) the possible effect of inflation and deflation (5) the expected total return from income and the appreciation of investments (6) other resources of the Foundation and (7) the Foundations investment policies

Continued





lnvestment Return Objectives Risk Parameters and Strategies The Foundation has adopted an investment policy approved by the Board of Directors for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment funds while also maintaining the purchasing power of those endowment assets over the long-term Therefore the Foundation expects its endowment assets over time to exceed the average annual return of the applicable benchmark index with a lower than benchmark volatility over a three to five year rolling time period Actual returns in any given year may vary from this expectation lnvestment risk is measured in terms of the total endowment fund investment assets and allocation between asset classes and strategies are managed to not expose the fund to unacceptable levels of risk

Endowment net asset corr~position by type of fund as of June 30 2010 is as follows

General Expendable Endowment Total Net Operating Restricted Restricted Endowment

Fund Fund Fund Assets

Donor-restricted endowment funds $ $ 3525517 $16105232 $ 19630749 Board-designated endowment funds 600000 600000

Total funds $ 6 0 0 0 0 0 - m

Changes in endowment net assets as of June 30 2010 are as follows



Endowment net assets beginning of year $ 575000 $ 2901797 $ 13878090 $17354887

Contributions 1385800 1961755 3347555 Additional Board designations 25000 25000 Investment income 306885 1 12690 41 9575 Net investment appreciation 583204 180249 763453 Amounts appropriated for

expenditures (1679245) (10476) (1689721) Operating transfers 27076 (1 7076) 10000

Endowment net assets end of year $ $517 $16105232 $20230749




NOTE 12 CONTRIBUTIONS TO DESERT COMMUNlrY COLLEGE DISTRICT

Contributions to the Desert Community College District are made at the discretion of the Board of Directors The following contributions were made to the District during the year ended June 30 201 0

5oth Anniversary Scholarship Alex amp Lila Dare Scholarship Alumni Campus Work Study Alumni High SchoollPathways Alumni Projects Alumni Student Scholarships Athletic facility Bighorn CC Scholarships Cardenas Scholarship Child Development Center Dorothy Grant Scholarships Dumont Foundation Scholarship Edgar McCoubrey Scholarship Even Start Grant Food for Low Income Students Health Sciences HospitallNursing Program Joy Post Presidential Scholarship Judy Roth Scholarships Leadership Assistance Fund Lenore Morris Scholarship Man About Town Marrianne Timmons Memorial Scholarship Michelle Gaines Theatre Arts Miscf3llaneous Contributions Miscellaneous Scholarships Mrs Nell Smith Scholarship Nina Vairo Nursing Scholarship Fund Nursing Osher Foundation Scholarships Palm Desert Womens Club Nursing Pass-through Scholarships Presidents Fund Public Safety Academy Rancho Mirage Womens Club SAT-MathlSocial Science Walter Marks Center for the Arts

Total contributions to college

Attended the Deanrsquos Tea Commended Terri Alm and Wade Ellis for their hard work on the employee insurance

plan switch Trustee Stefan reported on or attended the following

Attended the Art Exhibit at the Marks Art Center Attended International Day

Student Trustee Jaramillo reported on or attended the following

ASCOD smoking survey will be available next week on the website for the campus community to take

Spoke at the COD Foundation Auxiliary Luncheon Volunteered at the Foundation Street-Fair booth on November 13 Visited both the EVC and MTC on November 10

Trustee Marman reported on his activities and in the interest of time kept his remarks brief

Attended a dozen activities on behalf of the College Attended a 2 + 2 meeting with Desert Sands Unified School District

B ASCOD Tony Aguilar President ASCOD was present and gave his report C ALUMNI ASSOCIATION

Mr Gene Marchu Executive Director COD Alumni Association was present and gave a brief report D ACADEMIC SENATE

Dr Rey Ortiz President Academic Senate was present and gave a brief report E Faculty Association Mr Chuck Decker President CTA was present and gave a brief report F CODAA Ms Cathy Levitt Vice President of CODAA was present and gave a brief report G Dr Edwin Deas honored the outgoing Citizensrsquo Bond Oversight Committee members

John Fort Student Juan Gonzalez Al McCandless and Ken Feenstra Both Mr McCandless and Mr Feenstra were present and presented with Certificates of Appreciation by the Board Chair John Marman

H CSEA









VIII ACTION AGENDA



B BOARD OF TRUSTEES





















XIV ADJOURN












October 27201 0







TOTAL ASSETS



Total liabilities




Total net assets



2









Other income 2274 396274 398548 233573



Total expenditures






OPERATING TRANSFERS



End of year















Cash at end of year

Continued


4


(Continued)









Total adjustments




5





Organization




Basis of Accountinq






Continued





Estimates




Investments





Continued














Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m























VIII ACTION AGENDA



B BOARD OF TRUSTEES





















XIV ADJOURN












October 27201 0







TOTAL ASSETS



Total liabilities




Total net assets



2









Other income 2274 396274 398548 233573



Total expenditures






OPERATING TRANSFERS



End of year















Cash at end of year

Continued


4


(Continued)









Total adjustments




5





Organization




Basis of Accountinq






Continued





Estimates




Investments





Continued














Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m

















B BOARD OF TRUSTEES





















XIV ADJOURN












October 27201 0







TOTAL ASSETS



Total liabilities




Total net assets



2









Other income 2274 396274 398548 233573



Total expenditures






OPERATING TRANSFERS



End of year















Cash at end of year

Continued


4


(Continued)









Total adjustments




5





Organization




Basis of Accountinq






Continued





Estimates




Investments





Continued














Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m





























XIV ADJOURN












October 27201 0







TOTAL ASSETS



Total liabilities




Total net assets



2









Other income 2274 396274 398548 233573



Total expenditures






OPERATING TRANSFERS



End of year















Cash at end of year

Continued


4


(Continued)









Total adjustments




5





Organization




Basis of Accountinq






Continued





Estimates




Investments





Continued














Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m

























October 27201 0







TOTAL ASSETS



Total liabilities




Total net assets



2









Other income 2274 396274 398548 233573



Total expenditures






OPERATING TRANSFERS



End of year















Cash at end of year

Continued


4


(Continued)









Total adjustments




5





Organization




Basis of Accountinq






Continued





Estimates




Investments





Continued














Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m




















TOTAL ASSETS



Total liabilities




Total net assets



2









Other income 2274 396274 398548 233573



Total expenditures






OPERATING TRANSFERS



End of year















Cash at end of year

Continued


4


(Continued)









Total adjustments




5





Organization




Basis of Accountinq






Continued





Estimates




Investments





Continued














Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m























Other income 2274 396274 398548 233573



Total expenditures






OPERATING TRANSFERS



End of year















Cash at end of year

Continued


4


(Continued)









Total adjustments




5





Organization




Basis of Accountinq






Continued





Estimates




Investments





Continued














Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m




























Cash at end of year

Continued


4


(Continued)









Total adjustments




5





Organization




Basis of Accountinq






Continued





Estimates




Investments





Continued














Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m
















(Continued)









Total adjustments




5





Organization




Basis of Accountinq






Continued





Estimates




Investments





Continued














Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m



















Organization




Basis of Accountinq






Continued





Estimates




Investments





Continued














Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m



















Estimates




Investments





Continued














Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m




























Continued







Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m





















Donated Occupancy


Income Taxes




Reclassifications
































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m











































Continued

























General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m







































General Operating

Fund




















14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m





























14













Continued









Continued










Total funds $ 6 0 0 0 0 0 - m



























Continued









Continued










Total funds $ 6 0 0 0 0 0 - m























Continued










Total funds $ 6 0 0 0 0 0 - m
























Total funds $ 6 0 0 0 0 0 - m















desert community college district regular … · cod alumni association ... attended the art...

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