Northern Essex Community College
Board of Trustees Audit and Finance Committee Minutes
Wednesday, December 3, 2025
Attendees: Trustees Jennifer Borislow, Lloyd Hamm, and Evan Silverio, President Lane Glenn, Michael McCarthy, Anthony DeGregorio, Lloyd Hamm, Jenn Ball, Vicki Raivitch (Withium), Paul Cross (Withium), notetaking: Kathleen Teixeira
Chairman Hamm called the meeting to order 3:37 pm. The minutes of the May 7th meeting were approved with a motion presented by Trustee Borislow and seconded by Trustee Hamm.
FY2025 Enrollment Update & FY2025 Year-End Results (AFC-26-03)
Executive Vice President Michael McCarthy provided an overview of FY2025 enrollment and financial performance.
Enrollment:
• FY25 total credits reached 77,575, including 68,000+ regular credits and ~9,400 health credits.
• The college exceeded 5,300 students, surpassing prior-year benchmarks.
• FY26 budgeted credits remain at approximately 86,499 based on fall actuals.
• Continued strong impact of MassEducate and MassReconnect programs. Financial Performance (Unaudited FY25 Year-End):
• Tuition & Fees revenue: $24.9M, a 15.7% increase over FY24.
• Student Financial Aid: $14.6M, an increase of $4.4M, reflecting higher FAFSA completion and state program participation. Discount rate increased to 58.7%.
• Grants & Other Revenues: $33.7M, up $5.9M, driven by federal Pell and state grants.
• Salaries: $38.3M, under projection due to vacant positions.
• Benefits: $11.3M, in line with projections (29.5% of salaries).
• Other Operating Expenses: $24.3M, below projection primarily due to reduced utilities and software/licensing costs.
• Depreciation: $5.7M, reflecting FY25 capital activity.
• State Appropriations: $39.3M, a $2.1M increase.
• FY25 Net Position increased by $9.1M.
FY2025 Audited Financial Statements – Withum Presentation
Representatives from Withum presented the FY2025 audit results.
Audit Findings:
• Unqualified (Clean) Opinion issued.
• No material weaknesses, significant deficiencies, or management letter findings.
• No audit adjustments were required; books and records were complete and accurate.
• Updates to GASB 101 and 102 were implemented without material impact
Key Financial Statement Highlights:
• Cash and equivalents increased to $27M; investments increased approx. 21%.
• Accounts receivable increased 31% due to state financial aid timing and enrollment growth.
• Total liabilities decreased by approximately 4%.
• Net Position increased by $9M, driven by enrollment and state support.
Motion – Acceptance of FY2025 Audited Financial Statements (AFC-26-04)
On a motion duly made and seconded, it was:
VOTED: That the Audit & Finance Committee accepts the FY2025 Audited Financial Statements and recommends their presentation to the full Board of Trustees for acceptance.
The motion passed unanimously.
Other Business:
Athletics Complex Proposal:
• A plan is under development for a $9M multi-phase athletic complex, including a new track, turf baseball field, and courts.
• Central Catholic High School has pledged between $2.5M–$3M toward construction.
• Potential construction starts: Summer 2026, pending RFP. Strategic Planning &
Reserves:
• Non-Restricted Reserves currently total more than $28M, aligned with the goal of maintaining at least six months of operating coverage.
• Discussion included long-term enrollment stabilization through CTE pathways and “Essex Polytechnic” concepts.
• Concerns noted regarding the long-term reliability of the state’s Free College funding.
Adjournment
With no further business, the meeting was adjourned at 4:45 PM.
