Northern Essex Community College
Board of Trustees Audit and Finance Committee Minutes
Wednesday, April 1, 2026
Attendees: Trustees Jennifer Borislow, Lloyd Hamm, Evan Silverio, Zandra Kelley, Juan Yepez, President Lane Glenn, Michael McCarthy, Anthony DeGregorio, Jenn Ball
notetaking: Kathleen Teixeira
Chairman Silverio called the meeting to order 4:05 pm. The minutes of the December 5, 2025 and February 4, 2026 meetings and were approved with a motion presented by Trustee Hamm and
seconded by Trustee Silverio, all approved.
Juan Yepez joined the meeting at 4:11 pm
Y2026 Quarter 3 Budget Update (AFC-26-07)
Executive Vice President Michael McCarthy provided an overview of the FY2026 third quarter financials, including enrollment trends, revenue performance, and expense projections.
Enrollment:
- Total projected credits for FY26 are approximately 87,000, reflecting ~12% growth over FY25.
- Growth aligns closely with initial projections and indicates continued enrollment strength.
Revenue Highlights:
- Tuition & Fees projected at $27.3M, up ~$2.3M from FY25 but slightly below supplemental budget.
- Student Financial Aid projected at ~$14.4M, consistent with prior year levels.
- Discount rate approximately 52–53%, driven by MassEducate and MassReconnect participation.
- Grants & Other Revenues projected at ~$33.9M, consistent with FY25.
Expenses:
- Salaries & Benefits projected at ~$55.0M, below budget due to vacancies.
- Vacancies reflect both timing delays and hiring challenges; administration is working to reduce posting and hiring timelines.
- Operating Expenses projected at ~$24.1M, in line with expectations.
- Depreciation projected at ~$5.4M.
- Bad Debt projected at $400K, consistent with prior year and under continued monitoring.
Other Financial Notes:
• State Appropriations increased by approximately $1.6M due to formula funding adjustments.
• Investment income projected at ~$1.45M, slightly below budget.
• Capital appropriations remain conservatively estimated at $500K.
Summary:
• Projected year-end increase in net position of approximately $1.6M, an improvement from prior projections.
• Financial position remains stable with conservative budgeting practices.
Discussion:
• Vacancy savings contributed to favorable financial performance but highlighted the need for improved hiring timelines.
• Recruitment challenges persist in certain roles, though candidate quality has improved.
• Trustees discussed labor market conditions, salary competitiveness, and hiring strategies.
• Administration noted increased recruitment from out-of-state candidates and broader networks.
• Free College program impacts continue to be monitored, particularly related to student eligibility and bad debt exposure.
• Leadership emphasized maintaining reserves and planning for potential future state funding volatility.
Motions to Approve Recommended College Fee Rates for FY2027
a) Institutional Support Fee – Regular (AFC-26-08)
• Proposed at $250 per credit (~2.76% increase).
• Intended to support general college operations.
VOTED: Motion by Trustee Hamm and seconded by Trustee Borislow.
To recommend approval of the FY2027 Institutional Support Fee – Regular.
b) Institutional Support Fee – Allied Health Courses (AFC-26-09)
• Proposed at $337 per credit (~2.76% increase).
VOTED: Motion by Trustee Hamm and seconded by Trustee Borislow.
To recommend approval of the FY2027 Institutional Support Fee – Allied Health Courses.
c) Institutional Support Fee – Early College (AFC-26-10)
• Proposed at $155 per credit (~22% increase).
VOTED: Motion by Trustee Hamm and seconded by Trustee Borislow.
To recommend approval of the FY2027 Institutional Support Fee – Early College.
Single Audit Report FY2025
The Committee reviewed the FY2025 Single Audit Report.
Highlights:
• Unmodified (clean) audit opinion issued.
• No material weaknesses or significant deficiencies identified.
• No findings or compliance issues reported.
Other Business:
• Continued discussion on long-term financial sustainability, including reliance on state funding and Free College programs.
• Leadership emphasized the importance of maintaining strong reserves and diversified funding sources.
• The College was recently recognized as a “Promising Place to Work” in community colleges, reflecting ongoing efforts in employee engagement and organizational development.
Adjournment:
With no further business, the meeting was adjourned at 4:48 pm
