President’s Reportto the Community

2014

Connectingwhat

Board of TrusteesWilliam Stafford, Chair

Patricia N. Harada, Vice Chair

Ann E. Tennes, Secretary

Theresa Bashiri-Remetio

Joan W. DiLeonardi

Kyle Frank

Jody Wadhwa

Daniel J. Alferes, Student Trustee

Margaret B. Lee, President

matters

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To everything there is a season, and a time for every purpose under heaven . . .

As I write this letter for the annual report—for which this is the season—I come to thetask with a perspective that looks back not only over the year just ending, but of the end

of my 30th and final year at the College where I have spent nearly half of my life. I have been privileged to be a part of the community of learners at Oakton Community

College, where we work to equip all of our students for lives of work and learning. This President’sReport provides an update on the College’s progress toward the goals of our current strategicplan, Connecting What Matters. We have been mindful of those goals: connecting students withthe College community; connecting the curriculum with student goals and the demanding,

ever-changing requirements of our world and workplaces; connecting employees with one another and with the mission, vision, and values of the College; and connecting the College with the communities we serve.

At the opening of the academic year, we focused on the importance of being connected for our students. Lego® toysin various shapes and sizes were the visual image of building structures of support for student success. We saw thefaces and heard the voices of a number of students collected in a video that exemplified the findings of the recentPurdue-Gallup study on what makes college students thrive in their lives and in their work. Findings derived fromthat survey of 30,000 students five years after graduation revealed that the single most important factor in a student’sundergraduate experience was not the ranking of the institution but the connection of the student with someone atthe college who cared. I am proud and thankful that our college community is committed to such connection.

I am also very proud of the progress on the Facilities Master Plan with teaching and learning spaces in redesignedclassrooms, an integrated student services enrollment center, and state-of-the-art learning spaces in the new Scienceand Health Careers Center. I am confident that Oakton will continue to be faithful to the core commitments of themission to be the community’s college, to be a community of learners, and to be a changing community.

What better words with which to conclude than those of the poet Rainer Maria Rilke?Who’s turned us round like this, so that we always, do what we may, retain the attitudeof someone who’s departing? Just as he,on the last hill, that shows him all his valleyfor the last time, will turn and stop and linger,we live our lives, forever taking leave.

Margaret B. Lee, Ph.D., President

Oakton’s Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2014,provides a snapshot of Oakton’s financial performance and major initiatives as well as

an overview of trends in the local economy. Above all, the report represents the College’s commitment to informing members of the community about Oakton’s finances.

The financial information contained in this report derives from the 2014 ComprehensiveAnnual Financial Report (CAFR), prepared in conformity with Generally AcceptedAccounting Principles (GAAP). This report does not replace the CAFR, but includes important details relevant to the College’s fiscal condition. Audited by Sikich, the CAFRreceived an unmodified opinion.

As you review the Financial Statement beginning on page 16, I invite you to share anyquestions, concerns, or recommendations. For those seeking a deeper understanding of the College’s finances, a copyof the CAFR and additional financial information are available at www.oakton.edu/resource/fin.

Robert Nowak, Vice President for Business and Finance

Messages from the President and Vice President for Business and Finance

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Center for Promoting STEMInamullah Sharif held his breath as Oakton’s “lunabot,” dubbed Oaktimus Prime, trundled across the arena at Florida’s John F. Kennedy Space Center and began scoopingup simulated lunar dirt. He and his engineering team had spent months building therobot for NASA’s 2014 Robotic Mining Competition, but it was the last place heexpected to find himself. Sharif came to Oakton with a simple plan: take a few classes,earn an associate of science in engineering degree, and transfer. Designing a robot?“Not on the radar,” he laughs. That changed when Sharif discovered the College’sCenter for Promoting STEM (science, technology, engineering, and math). Now anelectrical engineering major at the University of Illinois at Chicago, he credits Oaktonwith expanding his horizons. “I learned more through hands-on research projects thanI ever would have picked up in the classroom alone,” Sharif says.

Since its inception in 2006, the Center has inspired hundreds of students to explorenew fields, make connections, and launch promising careers in technology and the sciences. “Our goal is to support the national Educate to Innovate initiative, which seeksto move American students up the ladder of STEM achievement” notes Gloria Liu,Center coordinator.

Oakton offers more than 100 STEM-related courses each semester, but what sets theCollege apart is its unique STEM learning opportunities. Consider Oaktimus Prime:built on a shoestring budget of less than $5,000, the robot collected more simulatedlunar dirt at the NASA competition than any community college entry in the contest’sfive-year history. Students Ammar Elmajdoub and Julia Prieto received first-placemedals for buckthorn extract research at the 2014 Illinois Skyway Collegiate ConferenceSTEM Poster Competition. And last summer Andy Roach, mathematics professor, incorporated math, physics, engineering, and music into a guitar-building workshop.

The Center’s seventh annual conference in November 2013 focused on narrowingthe STEM gender gap, highlighted by the keynote address, Women in STEM: TheChallenges of Culture, Climate, and Confidence, by Catherine Pieronek, J.D., associatedean of academic affairs at Notre Dame University’s College of Engineering.Throughout the 2013-2014 academic year, a steady stream of STEM experts visitedcampus, from David Kung, Ph.D., professor of mathematics at Maryland’s St. Mary’sCollege, who spoke on Harmonious Equations: A Mathematical Exploration of Music; toGerry Oberman, Ph.D., Midwest liaison of the American Association of UniversityWomen (AAUW) National STEM Task Force, who presented Engaging Girls inSTEM: Why It’s Important and How to Do It.

Attracting future STEM stars begins while they’re young—and Liu doesn’t waituntil students arrive for their freshman year. Each May, more than 300 middle-schoolgirls attend “Futures Unlimited,” a day-long seminar featuring women who havethrived in STEM careers, while a summer program entices younger children into theworld of STEM as they design and create their own LEGO® robots.

Moving forward, Liu plans to expand STEM programming for elementary andmiddle-school students, particularly girls. “We can’t expect students to be ahead of thecurve unless we are,” she points out. “Educate to Innovate only works with innovativeeducation. That’s how Oakton is producing the next generation of STEM-savvy workers.”

Academic

FAST FACT: Students enrolled in Oakton’s career and technical programs gave the College highmarks in a 2014 assessment.Eighty-nine percent were confident about their leadershipabilities, 88 percent felt they could communicate effectively, and 87 percent noted that theyhad obtained the technical knowledge they needed to succeed on the job.

Excellence

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Special Programming and Notable Events Oakton’s unique PlayOn Student Playwriting Competition and Festival celebrated its fifth year in July 2013,

staging six original one-act pieces by Midwest community college students. ■ In September,Paul Gulezian, assistant professor of biology (left), made the first documented sighting inCook County of a Mississippi grass shrimp when one of his students, Mike Buffo-Genyk(left, holding picture of shrimp), netted the tiny creature during an aquatic sampling of theDes Plaines River. The find was good news for local waterways, as the species only survivesin healthy ecosystems. ■ Women’s and Gender Studies and the Koehnline Museum of Artco-sponsored Bodies by Design: Modification, Coercion, and Resistance in October 2013. Witha focus on the ways we express ourselves through everything from piercings and tattoos toplastic surgery, this annual juried exhibit featured works bymore than 60 women artists from across the country andaround the world. ■ High school science and technology

teachers from Maine East, Glenbrook South, and Northside CollegePreparatory High School took advantage of a free nanotechnology education program last winter funded by the National Science Foundation.At Oakton’s lab located in Skokie’s Illinois Science + Technology Park, participants gained hands-on experience with cutting-edge nanotechnologyequipment, learned how to operate the tools remotely from their own schools, and designed nanotechnology classroom activities. Each teacherreceived three semester hours of graduate credit through Aurora University.

AccoladesG.I. Jobs magazine once again named Oakton as a Military Friendly School, placing it in the top 15 percentof colleges, universities, and trade schools doing the most to ensure that military service members, veterans,and their spouses succeed academically. ■ Last February, the College’s Phlebotomy Program, which trains

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Deceptive Measures, Rosemary Morrissey

students to collect blood for diagnostic testing, was honored as “Best in Illinois” for its curriculum by PhlebotomyTrainingSpot.com, a leading online resource about the field. ■ The Illinois Skyway Collegiate Conference named Mick Reuter, head coach of Oakton’s men’s basketball team, as Men’s Basketball Conference Coach of the Year. Reuter, who joined Oakton as an assistant coach in 1998, has served as head coach since 2008.

Faculty FocusOakton welcomed four new faculty members for the 2013-2014 academic year: ZoranMiodragovic, Ph.D., professor of chemistry; Daniel Roth, assistant professor of English; Philip Sloan, associate professor of English; and John Smith, professor of graphic design.■ Nathan Harpaz, Ph.D., manager and curator of Oakton’s Koehline Museum of Art, publishedZionist Architecture and Town Planning: The Building of Tel Aviv (1919-1929) (Purdue UniversityPress, 2013), and Danielle Aquiline, assistant professor of English, co-authored Who Says?: The Writer’s Research with Deborah Holdstein (Oxford University Press, 2013). ■ Erick Mann, Ph.D., chairand professor of historical and policy studies, traveled to Tokyo’s Keio University in November 2013 aspart of his work with Hong Kong University and International Islamic University of Malaysia, partners onan oral history project that trains students to collect stories throughout Southeast Asia and turn them into“usable” history. Mann’s goal was to expand the project to include Japanese universities. ■ In June 2014,Sue Cisco, coordinator and professor of global studies, marketing, and business; and Brendan Kelly, lawenforcement lecturer, traveled to Ireland with 19 students to study leadership styles, business practices,and law enforcement. The group toured Parliament, met with Ireland’s minister of education, and visitedlocal businesses in Belfast, Cork, Dublin, and Galway. Students concluded the trip by presenting businessplans for new Irish companies. ■ Through a research grant from the Illinois Community College FacultyAssociation, Chad Landrie, Ph.D., associate professor of chemistry (above), developed an experiment that enables students to construct a polarimeter, which measures the angle of rotation caused by passingpolarized light through an optically active chemical—a core concept in organic chemistry.

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FAST FACT: Between 2010 and 2014, the number of first-time, full-time Oakton students completing a credential or transferring to a four-year institution within three yearsincreased from 37 to 49 percent,placing Oakton in the 85th percentile nationally for this completion measure.

Student Success TeamIn 2009, President Barack Obama asked every American to commit to at least one year ormore of post-secondary education or career training with this goal in mind: that by 2020,the United States would once again have the world’s highest proportion of college graduates,and would be better equipped to compete in the global economy. In line with the newemphasis on student success and completion, Oakton’s 2013-2017 strategic plan,Connecting What Matters, is committed to “identifying specific obstacles to student successand developing innovative, effective strategies to help students overcome these obstacles.”

This work is led by Oakton’s Student Success Team (SST). Comprising more than20 faculty, staff, and administrators from all areas of the College, the group is chargedwith “thinking courageously, breaking down silos, and integrating student success initiatives into a single, College-wide agenda.”

“Oakton has long recognized that some of its students face formidable hurdles—fromcollege-readiness to juggling jobs, childcare, and financial barriers—as they work towardcompleting their degrees or certificates,” notes Sebastian Contreras Jr., director of studentsuccess and SST co-chair. “When the President issued his challenge, it prompted arejuvenated focus on student engagement, persistence, and retention here at the College.”Launched in 2010, the SST has made great inroads, launching the JOURney to Successfirst-year experience program, ramping up academic advising and support for first-generation students, hosting a number of of college life workshops, and introducingCollegeSource’s u.achieve®, an online evaluation tool that helps students track theirprogress toward a credential.

However, much work remains to be done. In August 2013, Oakton joined 200community colleges across the country in the Achieving the Dream (ATD) network.Since 2004, the national nonprofit has been at the forefront of the most comprehensivenongovernmental reform movement for student success in higher education history.This is a perfect fit for Oakton, which has worked closely with ATD to focus moresharply on student data that defines achievement gaps. Such data will ultimately inform the SST’s efforts to shape policies, procedures, and processes that improve student performance. “Our involvement in ATD has only strengthened the College’scommitment to student success and equity,” adds Michael Carr, Ph.D., vice presidentof academic affairs and SST co-chair.

Over the course of the past year, the SST has turned its attention to three key success measures: Persistence. What factors contribute to a student returning each semester? Conversely,how many students give up and drop out? Why, and over what period of time? Whatcan the College do to keep students enrolled?Placement. Appropriate academic placement greatly improves a student’s success rate.How many students are placed in the pre-college (developmental) or college-levelcourses best suited to their needs? How many fall through the cracks? Developmental Education. When students who should be in developmental coursesskip this step, they are less likely to pass college-level gateway courses. Are studentsenrolling when they should? If not, why, and how can Oakton encourage them to do so?

Moving forward, the answers to these questions will guide the SST as it collaborates with the full college community on solutions that keep Oakton studentsenrolled, engaged, and on the path to successful completion.

StudentSuccess

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Student StarsOakton’s Educational Foundation funded four STEM summer internships in 2013.At the University of Illinois at Chicago, Ammar Elmajdoub studied the GrandCalumet River, Nick Hafeman worked on antivirals targeting influenza, and YanaVorontsova tested drug treatments for cancer. Over at Loyola University Chicago,Faryal Ahmad studied vitiligo, a disorder that causes skin depigmentation. ■ Morethan 150 students from eight community colleges converged on Oakton for the2013 Illinois Skyway Collegiate Conference (ISCC) Writers Competition andFestival. Oakton student Grace Deppe Waldschmidt (right) garnered a first-placeaward in the fiction category for her story, “A Man Who Never Went Crazy,” and a second-place award

for her drama, Nerd World Problems. ■ Alumna Hollie Wagner (left), who graduatedfrom Oakton in 2013, was invited to serve on the Scholar Association Board of theprestigious Jack Kent Cooke Foundation, which is dedicated to advancing the education of exceptionally promising students who have financial need. In 2013,Wagner was one of 73 scholars nationwide to receive the foundation’s UndergraduateTransfer Scholarship. ■ Oakton’s men’s basketball team finished the 2013-2014 season as co-champions of the ISCC, tied with Morton Collegeand Prairie State College. The ISCC named two sophomores,guard Jake Hill and forward Sam Mitchell (opposite page), to

its First Team, an honor awarded to the League’s best players. Sophomore guardsNajee Bailey and Chris Freeman were named to the Second Team. ■ Phi ThetaKappa (PTK), the international honor society for two-year colleges, named studentsEleanor Lyon and Edet Nsemo (right) to the 2014 All-Illinois Academic Team, a division of the All-USA Team for community colleges.

Resources for SuccessEvery semester, thousands of calls pour into Oakton’s switchboard—all skillfully handled by employeesstaffing temporary “Call Centers.” In 2013-2014, the August and January Call Centers fielded 24,200inquiries. ■ Oakton JOURney, the first-year experience for new students, launched a mentoring programin fall 2013, linking 315 new students with seven experienced students who provided guidance and support.Ninety-two percent of students who attended new student orientation and participated in peer mentoring during that fall continued into the spring 2014 semester, compared with only 81 percent of those who did not. ■ Dozens of free workshops, events, and learning opportunities dotted the 2013-2014 academic calendar. Topics spanned the spectrum from transferring, setting goals, and balancing a budget to résumébuilding, creating a LinkedIn profile, and writing cover letters. Students could master study tips andtricks, hone their writing skills, learn effective time management, and take advantage of seminars on anxiety and stress management. ■ During finals, the Learning Center held a “Study Breakfast,” offeringtutoring help, test-taking tips, and a plate of pancakes and eggs.

A Head StartPutting students on the path to success begins even before theyarrive on campus. Approximately 125 students from 10 highschools attended Oakton’s Black Teen Summit last February.They learned about the college experience, attended a mini college fair, and heard from motivational speaker Karli Butler,who triumphed over an acid attack in 2006. ■ As high schoolseniors prepared to graduate last spring, Oakton stepped up tosmooth the transition. íSiguele!, a series of workshops and

events for Latino students and their families, provided information about admissions, financial aid, andcareer and educational options. Special Preview Evenings for accepted students and their parents featuredcampus tours, mini classes, and information about scholarships, support services, and student activities.

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FAST FACT: Oakton held 37 anti-bias and diversity events over thecourse of the 2013-2014 academicyear, with a combined attendanceof 1,000 faculty, staff, students,and community members.Below: Chicago playwright andactress Rohina Malik brought her one-woman show, Unveiled, to the College.

On the Road to SuccessSan Francisco. San Antonio. Upstate New York. You might find alumna Melissa Wohnjust about anywhere these days. Chances are, she’s just finished another driving shiftfor Schneider National—one of North America’s largest truckload carriers—thanks to Oakton’s new Commercial Driver’s License (CDL) Training and CertificationProgram, a joint venture with Park Ridge-based Viking Driving School.

Since its launch in spring 2014, more than a dozen students have enrolled in the comprehensive course, which provides all of the technical training, on-the-roadexperience, and lab hours required to earn an Illinois CDL Class A license, permittingthe driver to operate any vehicle with a semi-trailer or a trailer with two or more axles.

In addition to coursework and practical experience, students have access torésumé writing and interviewing skills, job placement assistance, and trucking industryrecruiters. One of the first students to complete the program, Wohn was on the roadin just three months, finishing her instruction in eight weeks and landing her firstprofessional job behind the wheel a month later.

“Convenient. Short term. A fast track to jobs. These key criteria shape our accelerated training opportunities here at Oakton,” explains Jesse Ivory, business andcommunity programs manager. “A four-year degree is a great credential to have, but itmay not serve the immediate needs of some of our students. Many who enroll in ourprograms are either unemployed or struggling to make ends meet—and need a jobsooner rather than later.”

The Oakton/Viking partnership is a model for the types of programs the Collegehopes to develop in coming years that expand its offerings by leveraging communityresources throughout District 535 and the region. Oakton provides access, educationalexpertise, and soft skills training for job-readiness, while partners provide equipment,facilities, and specialized hard skills training.

“We place a special emphasis on students who have financial challenges,” Ivorynotes. On the front end, Oakton works with organizations such as the Chicago CookWorkforce Partnership and the National Able Network (NAN) to provide fundingopportunities for low-income and unemployed students—and on the back end, partnerships with companies such as Schneider, U.S. Xpress, and WestWindLogistics, create employment opportunities for students after graduation.

It’s a win-win for businesses, students, and the College. Ania Zubowicz, VikingDriving School manager, is enthusiastic about the program. “Collaborating withOakton has given us the chance to develop new teaching methods that better preparestudents for success. We’re really pleased with the outcome,” she says. “Already we’vehad more than 180 inquiries. I’m confident that this program will only grow as wemove forward.”

“Career opportunities in transportation and logistics continue to expand; we hope to take advantage of that by developing a strong employment pipeline andby helping students find jobs not only in trucking and as bus and coach drivers but also with UPS and FedEx,” says Ivory. “As the community’s college, our goal is to be intentionally responsive to the needs and the wants of the peopleand employers we serve.”

ConnectedCommunities

Giving BackOakton’s Habitat for Humanity Chapter honored World Habitat Day in October 2013 by building a temporary shantytown at the Skokie campus and spending the night to raise awareness about homelessness. ■ Almost 1,000 pieces of gently-used Oakton furniture and equipment made their way tolocal schools, nonprofits, park districts, and municipalities. When a December 2013 fire destroyed one ofthe buildings at Orchard Village, a Skokie nonprofit that provides supportive services to developmentallydisabled adults, the College donated desks, chairs, tables, file cabinets, and bookcases. Chicago PublicSchools received 700 classroom chairs, and some of Oakton’s grounds equipment found a new home atthe Des Plaines Park District. ■ Local artists donated hundreds of pottery pieces to the Ceramic Club’s10th annual Empty Bowls fundraiser just in time for the holidays, raising $27,000 for local food pantries.■ When campus closed for Martin Luther King Jr. Day, more than 25 students, faculty, and staffembraced Dr. King’s belief that “everybody can be great, because anybody can serve” by working with foodpantries, serving at soup kitchens, and cooking meals at a nearby Ronald McDonald House. Volunteersreceived a special T-shirt and snapped photos to share with the College community.

Taking Care of BusinessTo enhance its training support for local employers, Oakton broughtColette Hands, Ph.D. (left), on board as director of workforce develop-ment and corporate training in July 2013. Before joining the College,Hands spent seven years at North Park University as director of careerdevelopment and internships and associate director of the School ofBusiness. ■ Congressman Brad Schneider, representing Illinois’ 10thDistrict, discussed the Chicago-area business environment at a FebruaryBusiness Briefing Breakfast. Concerned about the manufacturing skillsgap in Illinois, the Congressman and Senator Dick Durbin visited theSkokie campus manufacturing lab in April to discuss solutions with college and high school students, alumni, educators, and industry leaders.■ In March, Oakton partnered with 27 area businesses to host the seventh annual Manufacturing Expo. More than 300 students fromseven of the College’s feeder high schools gathered to learn about thenew world of manufacturing and tour nearby companies that produceeverything from machine tools to nuts and candy.

Access, Equity, and DiversityIn 1957, Terrence Roberts and eight other African-American students enrolled in Little Rock CentralHigh School, precipitating a crisis in the then-segregated community. Roberts visited Oakton inNovember 2013 to discuss this seminal moment in the Civil Rights movement and to share a firsthandaccount of the racial turmoil he witnessed as a member of the Little Rock Nine. ■ The College kickedoff the New Year by co-sponsoring Coming Together in Skokie and Niles Township, an annual community-wide celebration of diversity. In 2014, the focus was on Korean culture; Oakton hosted a Korean festivalfeaturing food, music, and dancing, and welcomed several speakers, including Bonnie Oh, Ph.D., professoremeritus at Georgetown University, who shed light on Korean “comfort women” of World War II. ■ In conjunction with the Koehnline Museum’s Black History Month exhibition of African-Americanmovie posters, Pemon Rami, director of educational services and public programs at the DuSableMuseum of African American History, spoke on Race Films and Beyond—from Oscar Micheaux to TylerPerry. ■ In celebration of V-Day—a global activist movement to end violence against women and girls—students, faculty, and staff gathered at the Des Plaines and Skokie campuses to participate in the secondannual One Billion Rising event. On Valentine’s Day, people around the world joined to rise, dance, anddemand justice for the one in three women on the planet who will be raped or beaten in her lifetime. ■ Robyn Ochs, editor of Bi Women Newsletter and Getting Bi: Voices of Bisexuals Around the World, and a commissioner on the Massachusetts Commission on Lesbian, Gay, Bisexual, and Transgender Youth,visited campus to discuss the rapidly changing landscape of LGBTQ rights.

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Around the District...and the GlobeEach summer, the interfaith organization Hands of Peace brings Jewish-Israeli and Palestinian teenagersto Chicago for a peace-building program with American teens. Many of the activities take place atOakton, and the nonprofit thanked the College with a seven-foot Peace Pole, now installed at the DesPlaines campus. ■ The Educational Foundation held its first annual Scholar Chips Benefit at the DesPlaines Rivers Casino, in August 2013. Approximately 300 guests attended the gala affair, which nettedmore than $18,400 for student scholarships. ■ Oakton welcomed Viviana Yang, an instructor at China’sXi’an International Studies University Foreign Language College, for a two-week visitin November 2013. Beth Wrobel, language lab coordinator, returned the favor the following May, traveling to Xi’an University to speak about American culture, observeEnglish classes, and even judge an English recitation contest. ■ Oakton’s AlumniProgram coordinated a Groundhog Day job shadowing event in February. While theworld watched for Punxsutawney Phil, students fanned out across the Chicagolandarea to explore professional pathways with alumni at local companies, includingCapital Point Financial Group, Ltd., Glenview; Carlucci’s Restaurant, Rosemont;Dudley & Lake, LLC (right), Libertyville; Mazik Global Technologies, Inc., Park

Ridge; and Shift2Green, Des Plaines. ■ Several Chicago writersvisited campus, including Adam Levin (left), winner of the 2004Joyce Carol Oates Award in Fiction and author of The Instructions;poet Jacob Saenz, whose poems have appeared in Poetry magazine,Great River Review, and Columbia Poetry Review; and RebeccaSkloot (above), author of the New York Times bestseller, The ImmortalLife of Henrietta Lacks. ■ Afro-soul musician Ugochi and political hip hop duo RebelDiaz headlined Oakton’s third annual Creating Justice Symposium in April, which

brought more than 200 artists, activists, students, and community members to campus to explore what it means to produce politically engaged art. ■ On May 12, 2013, thousands of Chicagoland residentsgathered for “On the Table.” Coordinated by The Chicago Community Trust, this event brought peopletogether over a meal to discuss the region’s challenges, strengths, identity, and future. In the same spirit,President Lee hosted an “On the Table” lunch at Oakton for more than a dozen student leaders to talkabout higher education.

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Award-winning CAFRFor the 24th year in a row, Oakton received the Government Finance Officers Association (GFOA)Certificate of Achievement for Excellence in Financial Reporting for the College’s Comprehensive AnnualFinancial Report (CAFR). An impartial panel of judges noted that Oakton’s Fiscal Year 2013 CAFRdemonstrated a “constructive spirit of full disclosure that clearly communicated financial details and motivated others to read the document.” The nonprofit GFOA serves more than 17,500 governmentfinance professionals throughout North America.

ScholarshipsIn 2013-2014, the College awarded $710,564 in financial aid to 705 students, including EducationalFoundation and institutional scholarships, and Student Government Association grants. New to Oaktonthis year are the Air Conditioning, Heating, and Refrigeration Program Scholarship; The CrystalScholarship for Students with Disabilities; Arthur A. Henrikson Memorial Scholarship; Honors StudentOrganization Distinguished Scholarship; P.E.O. Sisterhood Scholarship; Rivers Casino Scholarships; The Seabury Scholarship; Brian Heath Teper Scholarship; the Bob and Marge Whitman TechnicalScholarship; and the George D. Tootelian Memorial Scholarship for Engineering Students. The Ernest C.Wentcher Foundation again provided full tuition for 10 first-year and 10 second-year students and assistedthree Oakton graduates who transferred to a four-year college or university. A School for ProfessionalStudies/Oakton Community College Alumni Award launched in April 2013 by Alumni Council memberTim Panfil, director of enrollment management at Elmhurst College School for Professional Studies, provides one $3,500 grant per semester to an outstanding adult learner who graduates from Oakton andtransfers to an accelerated degree completion program at Elmhurst.

GrantsDuring the 2013-2014 Fiscal Year, the College received more than $2,898,246 in federal, state, local, andprivate grants.

Nanotechnician TrainingOakton’s nanotechnology programming entered its third year with a fully equipped nanotechnology lab atSkokie’s Illinois Science + Technology Park. The initiative is supported by more than $2 million in grantfunding, including $500,000 from the Searle Funds at The Chicago Community Trust, $250,000 fromthe Village of Skokie, and $500,000 from the Illinois Science and Technology Institute, an Illinois non-profit corporation, and the Illinois Department of Commerce and Economic Opportunity. The lab features atomic force, scanning electron, and fluorescence microscopes; a dip-pen nanolithograph; a particlecharacterizer; and other cutting-edge instruments. With funding from the National Science Foundation,Oakton installed remote access technology equipment in the lab, enabling community college and highschool teachers throughout Illinois to use the lab equipment from their classrooms. Oakton RemoteAccess to Nanotechnology Guidance for Educators (ORANGE) began interactive faculty workshops thisyear to instruct teachers on how to incorporate nanoscience concepts into their lessons. Oakton alsobecame an affiliate of Minnesota-based Nano-Link Center for Nanotechnology Education.

Energy EfficiencyA grant from the Illinois Green Economy Network supported a photovoltaic system of sunshades in thenew Science and Health Careers Center that will help power the building’s electrical grid. The system willalso serve as a demonstration project for students and the community, highlighting the use of alternative,environmentally responsible energy. Through the auspices of State Senator Dan Kotowski, Oakton also

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FinancialStewardship

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received a $125,000 grant from the Illinois Department of Commerce and Economic Opportunity to funda solar water heating system at the Des Plaines campus. The system’s 20 thermal panels heat between 1,300and 1,400 gallons of water every day, reducing electricity use by approximately 85,800 kilowatts annually.While the panels themselves are high on the campus roof, a display of meters and terminal piping nearthe College’s cafeteria provides an inside look at the system.

Student SuccessA two-year “Plus 50 Encore” grant from the American Association of Community Colleges enabledOakton to develop a 10-week Spanish course for older health care and human services professionals.Oakton is completing its fourth year of a five-year, $1.4 million TRIO Student Support Services grantthrough the U.S. Department of Education that provides tutoring, financial literacy, transfer assistance,and other critical support services to first-generation and financially needy students. The grant has helpedOakton students for more than 20 years. A new grant from the Illinois Community College Board fundeda program to enhance communication between Oakton faculty and high school educators who teach college-level classes that allow students to earn high school and college credit simultaneously. Funding for adulteducation and literacy efforts comes from Chicago Tribune Charities-Holiday Campaign, a McCormickFoundation Fund; the Illinois Secretary of State Literacy Program; and the state and federal government’sAdult Education and Family Literacy programs. Oakton’s Alliance for Lifelong Learning literacy effortsreach more than 2,500 students in GED, English as a Second Language, and adult education classes heldat more than 30 sites throughout District 535.

Manufacturing EducationIn 2012, the U.S. Department of Labor awarded the Illinois Network for Advanced Manufacturing (iNAM)a three-year $12.9 million grant to launch an Earn and Learn Advanced Manufacturing Career LatticeProgram. Comprising 21 Illinois community colleges—including Oakton—iNAM’s goal is to produce a steady supply of skilled manufacturing workers. The College is receiving more than $500,000 of thatgrant to enhance manufacturing programming. In 2014, it created two new credentials: a 60-credit-hourmechatronics associate in applied science degree and a 38-credit-hour mechatronics technology certificate.One of the most rapidly-growing areas in the industry, mechatronics provides a multidisciplinaryapproach to manufacturing that combines computer, control, electronic, mechanical, software, and systems design engineering.

Fine ArtsOakton’s Performing Arts Center and Koehnline Museum both received grants from the Illinois ArtsCouncil to enhance programming and exhibits on campus.

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Oakton remains fiscally sound. The College’s Comprehensive Annual Financial Report (CAFR) is available at www.oakton.edu/cafr for the fiscal year ending June 30, 2014, and for the other four fiscal years included in this report. The CAFR provides more detailed information about the College’s financial condition including its assets, liabilities, and net position for all funds. The information provided herein derives from the CAFR and is consistent with generallyaccepted accounting principles with one exception: the Oakton Community College Educational Foundation, a 501(c)(3) component unit of the College, reports its finances separately. To view the Foundation’s statements, see the College’s CAFR or contact the Educational Foundation Office at 847.635.1893 to receive a copy.

Condensed Statement of Net Position and History as of June 30

(In thousands) FY 10 FY 11 FY 12 FY 13 FY 14

Current AssetsCash and Cash Equivalents $4,152 $7,131 $9,344 $4,396 $11,169Short-term Investments 63,490 108,507 71, 051 91,279 83,407Property Tax Receivable, net 38,493 42,958 23,444 22,987 23,307Student Tuition and Fees, net 6,746 6,704 6,364 6,322 6,353Other Accounts Receivable 1,832 3,222 3,381 3,228 2,043Inventory 1,295 1,227 1,220 1,272 1,085Other Prepaid Expenses 1,161 381 427 2,153 967

Noncurrent AssetsLong-term Investments 34,159 24,789 64,722 32,993 31,660Property Tax Receivable 20,235 21,791 — — —Student Loans 79 105 37 53 (6)Capital Assets 83,610 84,245 89,502 115,499 142,360Less Accumulated Depreciation (27,225) (30,823) (33,371) (34,132) (36,475)

Total Assets 228,027 270,237 236,121 246,050 265,870

Current LiabilitiesAccounts Payable 2,144 1,909 4,882 8,185 6,728Accrued Salaries 881 916 678 930 1,597Accrued Interest Payable — 92 92 87 86Other Accrued Liabilities 1,929 1,846 1,918 980 808Unearned Revenues 49,883 53,685 10,722 10,590 10,498Current Portion of Long-Term Obligations — 1,600 1,705 2,030 2,110

Noncurrent LiabilitiesAccrued Compensated Absences 1,414 1,481 1,414 1,365 1,426Other Accrued Liabilities 5,879 6,260 5,970 5,824 5,773Unearned Property Tax Revenues 19,830 21,355 — — —Long-Term Debt Obligations — 28,500 28,506 26,248 38,440

Total Liabilities 81,960 117,644 55,887 56,239 67,466

Deferred Inflows of ResourcesUnearned Property Tax Revenues — — 22,309 23,089 23,720

Total Liabilities and DeferredInflows of Resources — — $78,196 $79,328 $91,186

Net PositionNet Investment in Capital Assets 56,385 53,422 53,186 60,780 71,264Restricted 22,416 22,294 20,554 23,366 20,539Unrestricted 67,266 76,877 84,185 82,576 82,881

Total Net Position $146,067 $152,593 $157,925 $166,722 $174,684

Total Assets Net Position

Growth of AssetsFiscal Years 2010-2014

FY10 FY11 FY12 FY13 FY14

300

250

200

150

100

50

0

(000,000)

FinancialReport

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AssetsCurrent assets are resources that are reasonably expected to be available within one year. Unlike other forms of assets, cashand cash equivalents such as checking account balances can be used immediately for current operational needs, including payroll and payments to vendors. Short-term investments represent Oakton’s holdings in allowable financial instruments duewithin one year including the Illinois Metropolitan Investment Fund and The Illinois Funds. Receivables represent thosemonies due to the College but that are not yet available for use including property taxes not yet collected from the currentlevy, half of the estimated levy for the coming year, and accrued interest.

Noncurrent assets are Oakton’s long-term financial and plant resources. Long-term investments represent the College’sholdings in allowable financial instruments due in more than one year, such as T-Notes and GNMAs. The net investment in capital assets includes Oakton’s equity in land, buildings, real estate improvements (such as roads and security lighting), and capital equipment expenses such as computer network servers and vehicles. Property tax receivable includes the secondhalf of the estimated levy for the coming year. Depreciation is the recovery of plant and equipment costs over their expecteduseful lives.

LiabilitiesCurrent liabilities are short-term obligations. Accrued salaries, accounts payable, and other accrued liabilities representamounts due to employees or vendors for services, supplies, or equipment provided to Oakton. Unearned revenues are primarily summer and fall semester tuition and fees—which are not recorded as income until after the end of the fiscalyear. The current portion of the long-term debt and related accrued interest payable relate to the debt issuance financingthe Science and Health Careers Center, remodeling of campus buildings, and infrastructure improvements—part ofBuilding Together, the College’s five-year Facilities Master Plan.

Noncurrent liabilities represent long-term obligations, usually due over a number of years. These include estimated amountsof accrued compensated absences, net other post-employment health care benefits (OPEB), and principal payments onthe long-term debt that are due beyond the next fiscal year.

Deferred Inflows of ResourcesDeferred inflows of resources represent unearned property tax revenue which is recognized as income in the period it isintended to finance.

Net PositionNet position is either the accumulated resources invested in plant and equipment, or resources available with or without restriction; the latter generally are available for payment of future expenses.

Property TaxesProperty taxes accounted for 44.6 percent of Oakton’s funding sources for fiscal year 2014. For the 2013 tax year, the College’s property tax rate for a typical homeowner was.256 of the property’s assessed value—making up about 2.38 percent of the homeowner’stotal property tax bill. For the 2014 tax year, this rate is projected to increase to .263 of the property’s assessed value. However, District 535 tax rates remain low relative to theaverage rates for in-district high schools and the county. For example, the 2013 tax ratefor Maine Township High School District 207 was 2.722—while Cook County’s rate was 1.09. In addition, Oakton’s rate is lowest among the 11 community colleges withinthe Chicago collar counties.

2013 Property Tax Rates for a typical homeowner in Oakton’s district

Taxing Body Rate* %Total

County 1.090 10.13%City 1.908 17.74%Township 0.210 1.95%Grade School 4.572 42.50%High School 2.722 25.30%Oakton 0.256 2.38%Total Rate 10.758 100.00%

*In dollars per $100 of equalized assessed valuation

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Revenues by SourceLocal residential and business property owners continue tobe the primary source of revenue for the College, followedby state grants and contracts, student tuition and fees, andfederal grants and contracts. However, the property tax caplaw will limit increases from this revenue stream in thefuture, and will require Oakton to actively seek otheravenues of funding to support educational and communityservices to students and District residents.

Operating Revenue for the 12 months ending June 30,2014, decreased by $600,000—from the prior year’s $24.1 million to $23.5 million—for the reasons detailed below.Operating revenues stem from Oakton’s provision of instructional and related services to students. Non-operating revenuesderive from sources unrelated to Oakton’s core mission. ■ Student tuition and fees revenue decreased by $15.8 million from the prior year’s $16.1 million. While the College did

increase tuition by 1.7 percent, any gains were offset by declining enrollment. Credit hours declined from prior year’shours of 223,072 to the current year’s hours of 213,443.

■ Auxiliary revenue decreased by $300,000 due to declining bookstore sales and revenues from the Alliance for LifelongLearning. These categories include self-supporting activities that charge a fee not necessarily equal to the cost of theactivity and other specialized operations.

Non-operating Revenue for the 12 months ending June 30, 2014, increased by $2.2 million—from the prior year’s $81.1million to $83.3 million—for the reasons detailed below.■ State grants and contract revenue increased from $24.3 million in fiscal year 2013 to $24.8 million in fiscal year 2014,

mainly because of the State Universities Retirement System of Illinois (SURS). SURS, a cost-sharing multiple employerpension plan, is supported by contributions the State of Illinois makes on behalf of other institutions. Please note thatreported SURS amounts do not necessarily represent actual payments made by the State, but the State’s current pensionobligation. In fiscal year 2014 the State’s contribution obligation was $17.1 million compared with $16.5 million the previous year—an increase of $600,000 (3.7 percent).

■ Property tax revenue increased from the prior year’s $46.6 million to $48 million, because of a combination of the inflation-based property tax increase and stronger collection of personal property replacement taxes consistent with overall economic improvement.

■ Federal grants and contracts revenue decreased from prior year’s $9.64 million to $9.58 million. Investment incomeearned increased by $86,000 to $492,000 from the prior year’s $406,000, attributable to greater returns on invested balances.

■ Interest on capital assets represents the interest expense for Oakton’s long-term debt—normally presented as a deductionto non-operating revenues. The expense decreased from $848,000 to $789,000 in conjunction with the reduction of out-standing principal.

Oakton has had success maintaining and even increasing credit hour enrollment during the past 10 years. Growth during the period reflects theCollege’s efforts to meet the community’s educational requirements by providing quality instruction, superior facilities, and course offerings thataccommodate student needs. In addition, growth included the effects of theeconomic downturn. During the downturn, many new students enrolled at Oakton to improve their current skills while others returned to theCollege to start a new career path. Subsequent to the increase in credit hour enrollment that resulted from the downturn, Oakton and other community colleges experienced a reduction in credit hour enrollment.

Credit Hour Enrollment History Fiscal Years 2005-2014

240,000

190,000

140,000’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

Tuition and Fees (per credit hour)

Fiscal Years Student Construction Tuition Total2009-2014 Activities Fee Fee (In District)

2009 $2.60 — $84.00 $86.602010 $2.60 — $86.00 $88.602011 $2.60 — $91.00 $93.602012 $2.60 $2.00 $91.00 $95.602013 $2.60 $2.00 $93.75 $98.352014 $3.00 $2.00 $95.34 $100.34

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Revenues for the years ended June 30

(In thousands) FY 10 FY 11 FY 12 FY 13 FY 14

Operating RevenueStudent Tuition and Fees $16,047 $16,048 $15,614 $16,097 $15,835Chargeback Revenue 117 104 95 75 69Auxiliary Enterprises 7,856 7,597 6,994 6,655 6,370Other Sources 1,215 1,577 1,742 1,320 1,231Total Operating Revenues 25,235 25,326 24,445 24,147 23,505Total Operating Expenses 89,564 91,371 95,238 96,406 98,849Operating Loss (64,329) (66,045) (70,793) (72,259) (75,344)

Non-operating RevenueProperty Taxes 39,817 41,208 43,456 46,590 48,002Local Grants and Contracts 455 741 758 1,004 1,274State Grants and Contracts 16,918 18,357 21,094 24,257 24,750Federal Grants and Contracts 9,041 11,120 10,458 9,647 9,576Investment Income Earned 2,585 1,237 1,483 406 492Interest on Capital Asset Related Debt — (92) (1,124) (848) (789)Non-operating Revenues, Net 68,816 72,571 76,125 81,056 83,305Increase in Net Position $4,487 $6,526 $5,332 $8,797 $7,961

1

2

34

5

6

7

8

9

Revenues by Source1. Property Tax 44.61% 2. Local 1.18% 3. State 23.00% 4. Federal 8.91% 5. Investments 0.46% 6. Students 14.72% 7. Chargebacks 0.06% 8. Auxiliary Enterprises 5.92% 9. Other 1.14%

20

Operating Expenses: Type of ServiceInstruction includes those activities that deal directly with or aid in the teaching process. Instruction expenses include notonly personnel costs and supplies but also the personnel and materials required to plan, implement, and manage theinstructional programs. Academic support comprises those programs that directly support the instruction process, such astutoring, library operations, and instructional media services. Student services include registrar services, student financialassistance, advising, and other activities that provide non-academic support to students. Operation and maintenance costsrelate to maintenance, housekeeping, public safety, and other costs necessary for the proper and safe operation of Oakton’sphysical plant. General institutional support encompasses general regulation, direction, and administration, as well as thosecosts applicable to the College on an institution-wide basis, such as Commencement and accreditation activities. As notedabove, auxiliary enterprises are activities that charge a fee for service, such as the bookstore, food services, the EarlyChildhood Education Centers, and other business-type activities. Depreciation represents the financial acknowledgementof the costs of fixed assets prorated over their estimated useful service lives.

Operating Expenses for the 12 months ending June 30, 2014, grew by $2.4 million—from the prior year’s $96.4 millionto $98.8 million—for a number of reasons.■ Instruction expenses decreased by $1.4 million mainly due to turnover of both faculty and staff. Several instructional

faculty and staff retired, thus impacting costs for the SURS pension plan and overall salaries. Additionally, amounts werebudgeted to purchase (non capitalized) equipment for the Science and Health Careers Center that were not spent in fiscal year 2014. These were not replaced by spending in other instructional areas resulting in a decrease from recent

spending levels.■ Academic support expenses increased by $1.2 million, attributable to investments in

staffing and equipment (primarily not capitalized) to support faculty development,data analytics regarding student success, instructional media, and tools for a growingpopulation of students with disabilities.

■ Operations and maintenance of plant costs increased by $740,000 due to both scheduled and unscheduled replacement of (non capitalized) equipment and repairs,ongoing repairs related to the 2013 flood, facilities staff training, and overtime forfacilities and public safety staff during winter weather more harsh than recent years.Depreciation increased $240,000 as capital projects were completed and became operational.

■ General institutional support increased by $900,000 due primarily to the increase incosts for SURS ($800,000). Note: the College has experienced an unusual increase inemployee retirements over the last two years caused by uncertainty about changes toSURS in the near future.

■ Auxiliary expenses increased by $600,000 mainly from increased salary and benefit costs for expanded IT staffing and investments in non-capitalized computer equipment and software.

Use of Resources by Type of Service for the years ended June 30

(In thousands) FY 10 FY 11 FY 12 FY 13 FY 14

Instruction $36,750 $38,644 $43,578 $45,094 $43,718Academic Support 9,487 9,447 9,871 9,858 11,045Student Services 12,992 13,697 13,936 13,097 13,150Operations and Maintenance 7,460 7,603 8,418 8,619 9,358General Institutional Support 6,700 7,534 7,844 7,751 8,740Auxiliary Enterprises 11,877 10,848 9,044 9,439 10,050Depreciation 4,298 3,598 2,547 2,548 2,788Total Expenses $89,564 $91,371 $95,238 $96,406 $98,849

Expenses by Type of Service1. Instruction 44.23% 2. Academic Support 11.17% 3. Student Services 13.30% 4. Operations and

Maintenance of Plant 9.47% 5. General Institutional

Support 8.84% 6. Auxiliary Enterprises 10.17% 7. Depreciation 2.82%

1

2

3 4

5

6

7

Faculty (FTE)for credit and continuing education programs

Fiscal Years No. of2009-2014 Faculty

2009 514 2010 5152011 5092012 4972013 4672014 494

Construction of Oakton’s new Science and Health CareersCenter, the centerpiece of the College’s $68.5 million, five-yearFacilities Master Plan, is essentially complete. On track to openfor spring classes in 2015, the 93,000-square-foot facility willfeature sophisticated labs; informal student gathering spaces oneach floor; flexible, light-filled classrooms; sustainable “green”elements; and enhanced technology. The Center will houseOakton’s anatomy and physiology, biology, chemistry, earth science, medical laboratory technology, nursing, physics, andphysical therapy assistant programs. The new Des Plaines Enrollment Center, opened in October 2014, now providesintegrated student services for admission, advising, financialaid, registration, and records functions.

Building Together: An Update

1600 East Golf Road, Des Plaines, Illinois 60016 ■ 7701 North Lincoln Avenue, Skokie, Illinois 60077 ■ www.oakton.edu