Internal Audit Plan Fiscal Year 2019-2020

CASTLETON UNIVERSITY OFFICE OF THE CHANCELLOR COMMUNITY COLLEGE OF VERMONT PO BOX 7 NORTHERN VERMONT UNIVERSITY MONTPELIER, VT 05601 VERMONT TECHNICAL COLLEGE P (802) 224-3000

MEMORANDUM

TO: VSCS Board of Trustees

FROM: Sophie Zdatny, Chancellor

DATE: November 12, 2020

SUBJECT: Board of Trustees Regular Meeting on November 16, 2020

Trustees:

The materials are now available for the upcoming regular Board meeting scheduled for 1:00 p.m. on Monday, November 16, 2020. The meeting will take place via Zoom and will be livestreamed on YouTube.

We have a full meeting ahead of us, with a number of educational components. I will be providing an update on the legislative Select Committee and a look ahead to the upcoming legislative session. If you have not yet had a chance to review it, please take a look at the Draft Outline for the Initial Report of the Select Committee on the Future of Public Higher Education in Vermont, prepared by the National Center for Higher Education Management Systems (NCHEMS), the external consultant hired through the Joint Fiscal Office to assist the Select Committee. A copy can be found here.

Following the reports and action items from the four committees that met on October 29, 2020, we will have a presentation by Nick DiGiovanni, the VSCS’s external labor lawyer. Nick will be providing an educational session on the VSCS’s bargaining units, before we go into an executive session with him. Next, we will hear from Michael Alcamo, an external consultant, who has been assisting us with the VSCS’s three educational broadcast spectrum licenses. Michael will provide some history on the licenses, plus a discussion of recent developments at the federal level, before we go into an executive session with him.

Before we conclude, we will be hearing from several students from across the system about their experiences with respect to diversity, equity and inclusion. The students will each speak for about five minutes, after which there will be an opportunity for questions. In addition, the meeting materials contain statements from three students discussing the value they place on the courses they have taken with Prof. Patricia Shine. Looking ahead, Shirley Jefferson, Associate Dean for Student Affairs and Diversity and Associate Professor of Law at Vermont Law School

WWW.VSC.EDU [email protected]

will be joining us at the December 7, 2020 Board meeting to discuss strategies for making our campuses more welcoming for students of color.

I look forward to seeing you all on Monday.

Cc: Council of Presidents Academic Deans Business Affairs Council Student Affairs Council Vermont State Colleges Board of Trustees Meeting Zoom Meeting/YouTube Stream Monday, November 16, 2020

AGENDA

1:00 P.M. – Board of Trustees Meeting 1. Call to order 2. Approval of Minutes a. October 16, 2020 Regular Board Meeting b. October 29, 2020 Special Board Meeting 3. Chancellor’s Update 4. Report from Education, Personnel and Student Life Committee a. Approval of revisions to VSC Policy 208: Criminal Background Checks 5. Report from Long Range Planning Committee a. Approval of Chancellor’s Recommendations for Strategic Action in 2020-2021 b. Preliminary review of Presidents’ proposed strategies 6. Report from Finance & Facilities Committee Meeting a. Approval of FIPSE grant b. Approval of FY21 Budget c. Discussion of tuition and fees for 2021-2022 d. Review of VSCS capital bill and state appropriation request 7. Report from Audit Committee Meeting a. Approval of FY2020 Draft Audited Financial Statements b. Review of FY2021 Internal Audit Plan: Payroll & Benefits 8. Presentation by Nicholas DiGiovanni, Esq. regarding VSCS’s Collective Bargaining Agreements 9. Presentation by Michael Alcamo, regarding VSCS’s Educational Broadcast Spectrum Licenses a. Review and approval of revisions to VSC Policy 427: Leasing of Educational Broadband Spectrum 10. Presentation from VSC students on Diversity, Equity and Inclusion at the VSCS 11. Approval of additional Board meeting dates in January, February and April 2021 12. Additional Business 13. Comments from the Public 14. Adjourn 1

MEETING MATERIALS

Item 1: Approval of Minutes from past Board meetings a. October 16, 2020 Meeting minutes b. October 29, 2020 Special Meeting minutes Item 2: VSCS Policy 208: Criminal Background Checks Item 3: Chancellor’s recommendations for Strategic Action in Year One Item 4: Finance & Facilities Memo Item 5: FIPSE Grant Item 6: Resolution 2020-022 System Annual Operating Budget Item 6a: Supporting Budget Materials Item 7: Audit Memo Item 7a: FY21 Internal Audit Plan: Payroll & Benefits Item 8: Resolution 2020-020 Accepted FY2020 Audited Financial Statement Item 9: VSCS Policy 427: Leasing of Educational Broadband Spectrum Item 10: Student Voices on Diversity, Equity and Inclusion in the VSCS

VSCS Board of Trustees November 16, 2020

ITEM 1: Unapproved meeting minutes October 16, 2020 October 29, 2020

5 VSCS Board of Trustees November 16, 2020

Minutes of the VSCS Board of Trustees Meeting held Friday, October 16, 2020, at 1:00pm via ZOOM – UNAPPROVED

Note: These are unapproved minutes, subject to amendment and/or approval at the subsequent meeting.

The Vermont State Colleges Board of Trustees met on Friday, October 16, 2020, via ZOOM.

Board members present: Lynn Dickinson (Chair), Janette Bombardier, Megan Cluver, Ryan Cooney, Dylan Giambatista, Adam Grinold, Bill Lippert, Karen Luneau, Jim Masland, Linda Milne, Mary Moran, Mike Pieciak, David Silverman, Sean Tester

Presidents: Elaine Collins, Joyce Judy, Pat Moulton, Jonathan Spiro (Interim)

Chancellor’s Office Staff: Donny Bazluke, Network/Security Analyst Kevin Conroy, Chief Information Officer Renee Hunt, Controller (incoming) Katherine Levasseur, Director of External and Governmental Affairs Katrina Meigs, System Director of HR and Benefits Administration Jen Porrier, Administrative Director Sharron Scott, Chief Financial/Operations Officer Patty Turley, General Counsel Meg Walz, Director, Program Manager Sophie Zdatny, Chancellor Yasmine Ziesler, Chief Academic Officer

From the Colleges: Nolan Atkins, Provost, Northern Vermont University Emmett Avery, Student Reporter, Northern Vermont University Solil Devyn Borthwick, Student Reporter, Northern Vermont University Amy Bremel, Coordinator of Advocacy, Activism & Non- Violence Education, Castleton University Sarah Chambers, Coordinator of Instructional Technology, Castleton University Mike Fox, Dean of Enrollment & Marketing, Northern Vermont University Gillian Galle, Associate Academic Dean, Castleton University Leah Hollenberger, University Development & External Relations Officer, Northern Vermont University Laura Jakubowski, Chief Budget & Finance Officer, Castleton University

6 VSCS Board of Trustees November 16, 2020 VSCS Board of Trustees Regular Meeting October 16, 2020 Minutes UNAPPROVED

Karen Madden, Director of Academic Support Services, Northern Vermont University Elizabeth Lehr, Faculty, Community College of Vermont Kathleen Mason, Coordinator of Diversity, Equity & Inclusion, Vermont Technical College Tom Mauhs-Pugh, Provost, Castleton University Hannah Miller, Faculty, Northern Vermont University Linda Olson, VP Education AFT-VT, Castleton University Andy Pallito, Dean of Administration, Community College of Vermont Patricia Shine, Faculty, Northern Vermont University Miles Smith, Assistant Director Athletics, Northern Vermont University Toby Stewart, Dean of Administration, Northern Vermont University Littleton Tyler, Dean of Administration, Vermont Technical College Jamey Ventura, Associate Dean of Athletics, Northern Vermont University Beth Walsh, President, VSCUP, Northern Vermont University

From the Public: Church Hindes, former Trustee

1. Chair Dickinson called the meeting to order at 1:00 pm.

2. Introduction of Trustee Moran and Trustee Tester

Chair Dickinson introduced the newest trustees on the Board; Mary Moran from Rutland and Shawn Tester from Lyndonville. Chair Dickinson then invited all attendees on zoom to introduce themselves to the new trustees.

3. Introduction of Katherine Levasseur, Director of External and Governmental Affairs

Chancellor Zdatny introduced Katherine Levasseur. In her new role as Director of External and Governmental Affairs she will be building public support for and raising the profile of Vermont State Colleges, developing partnerships and alliances to support the VSC, liaising with state and federal elected officials, and leading VSC’s communications strategy.

4. Resolution for Former Chair and Trustee J. Churchill Hindes

Chair Dickinson read Resolution 2020-019 honoring the service of J Churchill Hindes.

Chair Dickinson moved and Trustee Milne seconded the motion to approve Resolution 2020-019, Resolution Honoring the Service of J Churchill Hindes. The Resolution was approved unanimously.

7 VSCS Board of Trustees November 16, 2020 VSCS Board of Trustees Regular Meeting October 16, 2020 Minutes UNAPPROVED

Trustees Milne, Pieciak, Lippert and Luneau offered words of gratitude and congratulations to Church Hindes for his years of service. Chancellor Zdatny thanked him for his work in assisting with the transition of the Chancellorship and for his good works.

5. Approval of Minutes a. September 28, 2020 b. September 19, 2020

Trustee Lippert moved and Trustee Cooney seconded the approval of the September 28, 2020 and September 19, 2020 minutes. The minutes were approved unanimously.

6. Discussion of and adoption of priorities of VSCS

Chancellor Zdatny reminded the Board of the exercise from the September 19th Board meeting, where priorities were identified in three different categories: Accessibility, Affordability and Cost Effectiveness, and Quality and Relevance of Academic Programs. Following that Board meeting a draft was sent to the Trustees for their consideration. Further refinement led to the document now in the Board packet for approval today.

Trustee Cluver moved the Board adopt the Strategic Priorities as set forth in the meeting materials at p. 15-16, and direct the Chancellor, following consultation with the Presidents, to recommend which strategic initiatives be addressed first. She further moved that the recommendation be presented to the Long Range Planning Committee of the Board at its upcoming meeting on October 29, 2020, for its review and approval, prior to presentation to the full Board at its November 16, 2020 meeting. Trustee Cooney seconded. The motion was approved unanimously. 7. Update on Four Charges stemming from the work of VSCS Forward Task Force

Chief Academic Officer Dr. Yasmine Ziesler gave a brief update on the recommendations to develop a single general education program core and single framework for online course access. She also gave an introduction to the combined report from Castleton University and Northern Vermont University on Academic Programs, which was a response to the charge to address low enrolled and duplicate programs. Recommendations included a process for NVU and CU faculty to jointly generate proposals to increase cost efficiency, program quality and student access as well as to identify obstacles to collaboration.

Trustee Cluver moved that the Board direct the presidents of Castleton University and Northern Vermont University: 1. to report their plans for immediate action to address low-enrolled programs already identified by Policy 109 to EPSL at its October 29th meeting; and 2. to provide an update to EPSL at its February 1, 2021 meeting on a joint plan of action to address duplicate programs or program clusters, as informed by the recommendations contained in the Castleton-NVU Academic Programs Group’s report, as well as the first draft report from NCHEMS to the Legislative Select Committee, which is expected in early December. Trustee Bombardier seconded the motion. The motion passed unanimously. Vermont Technical College President Pat Moulton discussed the ongoing work on co-locating and the discussions occurring between CCV and VTC surrounding a potential expansion in St.

8 VSCS Board of Trustees November 16, 2020 VSCS Board of Trustees Regular Meeting October 16, 2020 Minutes UNAPPROVED

Albans and the possibility of the Hartness Library becoming the single virtual library for the System. Additional discussions are occurring around certificates and pathways from CCV to VTC and creating additional opportunities to enable direct progression, possibly in Allied Health and Engineering. A final area of discussion is the business operations, or back office, and sharing of best practices between CCV and VTC. 8. Update from the Chancellor

Chancellor Zdatny reminded the Board that the Governor signed the budget and VSC received bridge funding for FY2021. The Chancellor then discussed the $2.3 million in CRF received by the VSC to provide programs for Vermonters adversely affected by the coronavirus to upskill or reskill. The Governor mentioned the initiative at his press conference earlier in the day and the VSC issued a press release. Programs will be offered at all four colleges to people who have been impacted by the virus: both credit and non-credit bearing courses. The funding also provides for wrap around services for technology, childcare, housing, etc. This program was only launched the previous day but there has been considerable interest already. Finally, Chancellor Zdatny discussed the spring plans for the institutions. There Administration has issued updated mandatory guidance on Safe and Healthy Return to Campus, which is included in the Board materials. NVU President Collins shared an upcoming mini-break for students to address student fatigue and VTC President Moulton provided an update on Vermont Tech’s plans for a safe spring break in the coming semester.

The Board took a ten minute break.

9. Presentation by VSC Social Justice on diversity, equity and inclusion initiatives across the VSCS

Chancellor Zdatny introduced the VSC Social Justice group, comprised of representatives from each of the colleges. Professor Patricia Shine of NVU-Lyndon provided an introduction followed by presentations from Kathleen Mason (VTC), Elizabeth Lehr ( CCV), Hannah Miller (NVU- Johnson) Linda Olson (Castleton) and concluding with Miles Smith (NVU-Johnson).

10. Additional Business

Chair Dickinson shared that she would be resigning from the Audit committee and requested that the Board elect Shawn Tester to serve on the that committee in her stead.

Trustee Lippert moved and Trustee Masland seconded a motion to elect Trustee Tester to the Audit Committee. The motion was approved unanimously.

11. Comments from the Public

Beth Walsh shared that the Career consortium is looking for a robust list of employers for new interns and staff. She went on to share some thoughts with the Board on low enrolled programs, residency of students and online learning. Executive Session:

At 4:31 p.m. Trustee Cluver moved that the VSC Board of Trustees enter executive session, pursuant to 1 V.S.A. § 313(a)(3) to discuss the evaluation of employees. The motion stated that no formal or binding action would be taken in the executive session. Along with the

9 VSCS Board of Trustees November 16, 2020 VSCS Board of Trustees Regular Meeting October 16, 2020 Minutes UNAPPROVED members of the Board present at the meeting, the Board invited the Chancellor to attend. Trustee Moran seconded the motion and it passed unanimously.

The Board exited Executive session at 5:06 p.m.

Trustee Cluver moved that, upon the recommendation of the Chancellor, Elaine Collins, President, Northern Vermont University; Jonathan Spiro, Interim President, Castleton University; Patricia Moulton, President, Vermont Technical College; and Joyce Judy, President, Community College of Vermont each be reappointed for a term through to June 30, 2022, subject to and in accordance with the terms of letters of reappointment, to be signed by the Chancellor. Based on each president’s performance during the past year, the Chancellor’s evaluation of each president, and for the reasons discussed during the executive session, the Board believes each president remains the best candidate to lead her or his Institution. Trustee Masland seconded the motion. The motion was approved unanimously.

Chair Dickinson adjourned the meeting at 5:08 p.m.

10 VSCS Board of Trustees November 16, 2020

Minutes of the VSCS Board of Trustees Meeting held Thursday, October 29, 2020, at 3:00pm via ZOOM – UNAPPROVED

Note: These are unapproved minutes, subject to amendment and/or approval at the subsequent meeting.

The Vermont State Colleges Board of Trustees met on Thursday, October 29, 2020, via ZOOM.

Board members present: Lynn Dickinson (Chair), Janette Bombardier, Megan Cluver, Dylan Giambatista, Adam Grinold, Bill Lippert, Karen Luneau, Jim Masland, Linda Milne, Mary Moran, David Silverman, Sean Tester

Absent: Ryan Cooney, Mike Pieciak,

Presidents: Elaine Collins, Joyce Judy, Pat Moulton, Jonathan Spiro (Interim)

Chancellor’s Office Staff: Donny Bazluke, Network/Security Analyst Jen Porrier, Administrative Director Patty Turley, General Counsel Sophie Zdatny, Chancellor

From the Colleges: Toby Stewart, Dean of Administration, Northern Vermont University

Chair Dickinson called the meeting to order at 3:06 am.

Executive Session:

At 3:07 p.m. Trustee Silverman moved that the VSCS Finance and Facilities Committee enter executive session pursuant to 1 V.S.A. § 313(a)(1)(F) for the purpose of receiving confidential attorney client communications made for the purpose of providing professional legal services; and 1 V.S.A. § 313(a)(1)(A) to discuss a proposed contract to which the VSC may be a party. The motion stated that because premature general public knowledge of these discussions would place the VSCS at a substantial disadvantage it was appropriate for the Committee to enter executive session. Along with the members of the Board present at the meeting, the Board invited the Chancellor, the President and the Dean of Administration of Northern Vermont University, the VSCS Chief Financial and Operating Officer, and the VSCS General Counsel to attend. Trustee Milne seconded the motion and it passed unanimously.

The Board exited Executive session at 3:25 p.m.

Trustee Silverman moved and Trustee Masland seconded the motion to approve Resolution 2020-023 Approval of Endowment and Restricted Gift. The motion was approved unanimously.

Chair Dickinson adjourned the meeting at 3:25 p.m.

11 VSCS Board of Trustees November 16, 2020

ITEM 2: VSCS Policy 208: Criminal Background Checks

12 VSCS Board of Trustees November 16, 2020

Title Number Page

CRIMINAL BACKGROUND CHECK POLICY 208 1 of 3 Date 11/16/2020

PURPOSE It is the purpose of this policy to require criminal background checks on all new full-time employees and certain part-time employees to protect vulnerable persons and others who work for, enroll in, or attend programs through the Vermont State Colleges and to protect the integrity of the Vermont State Colleges financial operations.

POLICY The Chancellor shall develop procedures to implement a system of criminal background checks that at minimum addresses the following:

A. Uniform Employment Applications A uniform employment application shall be used for the Chancellor’s office and each member College. It shall not inquire into an applicant’s criminal record history. The form shall specify that providing false information on the form is grounds for immediate termination. The Chancellor’s Office and the member Colleges may inquire about a prospective employee’s criminal history record during an interview or once the prospective employee has been deemed otherwise qualified for the position.

B. Persons Covered To the extent permitted by law, criminal background checks, including but not limited to those provided by online services, shall be conducted on all persons to whom an offer of full-time employment has been made. In addition, fingerprint-supported criminal background checks may be conducted on all persons, including student employees, to whom an offer of employment has been made where the terms and conditions of employment contemplate regular access to residence halls, day care centers, and other programs or facilities where vulnerable populations are known to be congregated. Existing employees who seek different employment within the Vermont State Colleges system need not undergo new criminal background checks if one had been performed upon initial hiring or thereafter. However, the results of the prior check may be weighed by the hiring authority if relevant and material to the position under consideration. For existing employees who have not undergone any prior criminal background check within the Vermont State Colleges system, one must be performed if the employee is offered a new position

13 VSCS Board of Trustees November 16, 2020

that would otherwise require such a check (e.g. moving from a part-time to a full-time job, moving from a part-time job in the financial aid office to a part-time job in a day care center or residence hall).

C. Processing of Criminal Background Checks Processing of criminal background checks shall be performed at each member College through its own hiring officials.

D. Conditional Offers of Employment Due to the length of time necessary to process criminal background checks, applicants for employment who are subject to such checks under this policy shall be offered employment, and be permitted to be employed, conditioned upon the subsequent results not revealing any disqualifying criminal history.

E. Disqualifying Criminal Record History The hiring authority at the Chancellor’s office and at each member College shall make an individualized determination of whether a conditional employee’s criminal record history warrants a revocation of the offer of employment. The decision shall weigh the severity of the criminal offense, the relationship between the offense and the duties of the position in question, the age of the offender at the time of the offense, the remoteness in time of the offense, and evidence of remorse and rehabilitation. However, in each employment matter where the criminal background check reveals the existence of a criminal record, the Chancellor and General Counsel shall be notified before any final employment decision is made.

F. Costs of the Criminal Background Checks The applicants for employment shall pay the costs of the criminal background checks. However, in the case of hiring for the Chancellor’s office, the Chancellor or designee, and in the case of a member College, the President or designee, may agree to cover the costs of the check in cases of demonstrated hardship.

G. Confidentiality of Criminal Background Check Information Information obtained in the context of criminal background checks shall be kept confidential in accordance with any applicable state or federal law and in accordance with any user agreement entered into between the Vermont State Colleges and the Vermont Crime Information Center.

H. Time-sensitive Background Checks Notwithstanding the above provisions, the member Colleges are permitted to use an online service to perform an expedited background check, without fingerprints, at the member College’s expense, when a time-sensitive background check needs to be performed on persons, such as camp counselors and volunteers, who have access to residence halls, day care centers, and other programs or facilities where vulnerable populations are known to be congregated and there is insufficient time in which to obtain a fingerprint supported background check. A person undergoing an expedited background check under this provision shall not be considered an

14 VSCS Board of Trustees November 16, 2020

“existing employee” and shall not, therefore, be exempted from undergoing a fingerprint- supported background check as set forth in Section B.

I. Any activity or expense related to federal grants or contracts must comply with 2 CFR 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, in addition to the provisions above. The above shall be read to be consistent with federal requirements and to the extent any inconsistencies appear, the federal requirements shall prevail.

Signed by:

Sophie Zdatny, Chancellor

Date Version Revision Approved By 04/20/2006 1.0 Adopted VSCS Board of Trustees

07/21/2010 2.0 Updated VSCS Board of Trustees

07/29/2016 3.0 Updated VSCS Board of Trustee

11/16/2020 3.0 Updated VSCS Board of Trustees (proposed)

15 VSCS Board of Trustees November 16, 2020

Manual of Policy and Procedures

Title Number Page

CRIMINAL BACKGROUND CHECK POLICY 208 1 of 2 Date 11/16/2020 Deleted: 7/29/16

POLICY The Chancellor shall develop procedures to implement a system of criminal background checks that at minimum addresses the following:

B. Persons Covered To the extent permitted by law, criminal background checks, including but not limited to Deleted: fingerprint-supported those provided by online services, shall be conducted on all persons to whom an offer of full-time employment has been made. In addition, fingerprint-supported criminal background checks may be conducted on all persons, including student employees, to Deleted: shall whom an offer of employment has been made where the terms and conditions of Deleted: employment contemplate regular access to residence halls, day care centers, and other Deleted: part-time programs or facilities where vulnerable populations are known to be congregated. Existing employees who seek different employment within the Vermont State Colleges system need not undergo new criminal background checks if one had been performed

16 VSCS Board of Trustees November 16, 2020

Page 2

upon initial hiring or thereafter. However, the results of the prior check may be weighed by the hiring authority if relevant and material to the position under consideration. For existing employees who have not undergone any prior criminal background check within the Vermont State Colleges system, one must be performed if the employee is offered a new position that would otherwise require such a check (e.g. moving from a part-time to a full-time job, moving from a part-time job in the financial aid office to a part-time job in a day care center or residence hall).

C. Processing of Criminal Background Checks Processing of criminal background checks shall be performed at each member College through its own hiring officials.

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Page 3

Signed by: Sophie Zdatny, Deleted: ! Jeb Spaulding Chancellor

Date Version Revision Approved By 04/202006 1.0 Adopted VSCS Board of Trustees 07/21/2010 2.0 Updated VSCS Board of Trustees 07/29/2016 3.0 Updated VSCS Board of Trustees 11/16/2020 3.0 Updated (proposed) VSCS Board of Trustees

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ITEM 3: Chancellor’s recommendations for Strategic Action in Year One

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Chancellor’s Recommendations for Strategic Action in Year One (2020-2021)

Based on the Strategic Priorities adopted by the Board at its October 16, 2020 meeting, the Chancellor, in consultation with the Council of Presidents, is recommending that the VSCS focus on developing strategic initiatives and identifying key performance indicators (KPIs) on the following selected priorities for the current academic year. The Chancellor and Presidents have identified specific commitments for each priority. Some of these are not, in and of themselves, achievable within this academic year but the Chancellor and Presidents are committed to starting to work on some of the longer-term goals, such as improving the on-time graduation rate, this year.

What are the next steps? The Presidents will be identifying the strategies that each of their institutions will adopt to meet the following commitments, along with the timelines and appropriate benchmarks (KPIs) that will be used to measure success. These will be presented to the Board for its consideration at its upcoming meeting on November 16, 2020.

Why aren’t we addressing all of the strategic priorities at this time? It is not realistic for the VSCS to consider tackling all of the strategic priorities identified by the Board within the current academic year. First, a considerable amount of transformative work is already being undertaken. Second, the human and financial resources available to support such initiatives is limited. Third, some initiatives likely need to wait to avoid duplication or conflict with the work of the Legislative Select Committee on the Future of Public Higher Education in Vermont and NCHEMS (the external consulting firm hired to assist the committee). Additional initiatives can be added later as resources and opportunities allow.

What steps are being taken for the VSCS to act as “a fully-integrated system that achieves financial stability in a responsible and sustainable way”?1 The Chancellor’s Office will ensure that current initiatives, such as the transition to a system-wide budget for FY22 are successfully completed, and will be initiating new integration efforts in this fiscal year, including:  Evaluate and continue to maximize efficiencies within the centralized Payroll and Benefits system to achieve promised return on investment;  Implement improvements to streamline the Accounts Payable system;  Adopt a system-wide purchasing and procurement process;  Review and evaluate current software to assess its continuing value and determine whether it is being used to its fullest extent;  Develop a system-wide IT help desk, based at the Colleges, to improve service to staff and students across the system;  Launch of an online.vsc.edu website, listing all eligible online and synchronous (remote) courses from across the system;

1 See VSCS Strategic Priorities at https://www.vsc.edu/board-of-trustees/strategic-planning/. 1

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 Work with Castleton University and Northern Vermont University on financial aid optimization; and  Expand the Hartness Library model for web-based services to serve as a virtual library core for the entire system.

1. AFFORDABILITY: Reduce total cost of attendance for students and families.

The VSCS will commit to reducing the cost of attendance for students and their families by: a. Reducing the cost of textbooks and ancillary materials; b. Improving the on-time graduation rate; and c. Increasing average class size at residential campuses.

2. ACCESSIBILITY: Increased access to VSCS programs regardless of race/ethnicity, age, educational attainment of parents, prior educational experience, family status, or place of residence.

The VSCS will commit to expanding access to VSCS programs for traditional and non- traditional students by offering flexible delivery modalities (in person, virtual, hybrid, etc.) and flexible scheduling (such as accelerated programs, evening/weekend, etc.).

3. ACCESSIBILITY: Students receiving the academic, advising and other supports necessary to succeed in their VSCS programs as measured by their retention, persistence and graduation.

The VSCS will commit to improving the support services available to all students through expanded training on and use of Canvas (Learning Management System) and Aviso (Advising software) across the system, as well as improved career counseling and mentorship of at-risk students.

4. QUALITY: The ability of VSCS graduates to meet externally-recognized measures of achievement (i.e. licensure exam success rates) and their preparation to compete in the global workforce.

Starting this academic year, the VSCS will conduct an annual survey of recent graduates and their employers.

5. RELEVANCE: Development of degree paths that are relevant to student goals and expectations of value in a career.

The VSCS will expand the development of degree paths with embedded Industry Recognized Credentials (IRCs).

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DRAFT – to be finalized for December 7, 2020 Board Meeting VSCS Strategies for Implementing Board’s Strategic Priorities for AY 2020-21 1. AFFORDABILITY: CCV: Reduce total cost of  Increase use of Open Educational Resources (OER) in CCV classes by attendance for students conducting a Student Textbook Survey in fall 2020 and tasking CCV’s and families. Academic Council (AC) with evaluating the survey results, establishing OER adoption goals using 2019-20 faculty results (50% reporting using The VSCS will commit to OER) as a benchmark, and developing a communication plan and reducing the cost of attendance strategy to meet the goals. for students and their families  Increase credit momentum, with goal of increasing the number of by: students taking 3 classes instead of 2 classes by 5%, by CCV advisors a. Reducing the cost of using Aviso to identify and deliver targeted advising to part-time textbooks and ancillary students in the low- and medium-risk persistence categories. materials; Castleton: b. Improving the on-time  Commit to 100% of faculty using Canvas as the primary means of graduation rate; and providing student access to course content, including OER. Castleton c. increasing average will support faculty use of Canvas via instructional design support and class size at residential will work with the VSCS Library Committee with a goal of ensuring at campuses least 33% of courses use OER in 2021-2022.  Castleton will stabilize its on-time graduation rates impacted by the pandemic and improve these by 2 percentage points in 2021-2022 via its Title III activities, including extensive deployment of Aviso to better alert us to student difficulties and enable timely interventions, including the development and implementation of a new advising model.  Review all classrooms during AY2020-2021 to reassess maximum seating capacity and take steps to maximize capacity once pandemic protocols allow, including reviewing all course enrollment caps, reviewing new general education requirements with regard to course caps and frequency of offering  By February 1, 2021, produce a proposal for shared curricula with NVU that can support per-course enrollment increases, particularly in upper level major courses, through cross-campus registration and classes that are delivered both remotely and face-to-face. NVU:  Establish a baseline of OER usage by the start of the Spring 2021 term.  Increase use of OER by fall 2022 to 20% above the baseline value in Spring 2021.  Increase NVU’s six year graduation rate for first time, full time freshmen by 2% at the end of the 2021-2022 academic year.  Work on increasing average class size paused to begin after system restructuring/end of pandemic.  In collaboration with Castleton, a proposal will be developed by February 1, 2021 that describes collaborative plans for all duplicate programs between NVU and CU. The plans will provide details of course sharing and program alignment. Vermont Tech:

22 VSCS Board of Trustees November 16, 2020

 Engage EAB to analyze which programs may be best positioned to access OER resources, prioritizing general education courses; develop benchmark for current programs using OER by March 1, 2021; determine and secure the best resources for OER assistance and implementation by June 2021; complete search for a new bookstore vendor offering remote services at lower cost by summer 2021.  Increase the percent occupancy of non-capped program classes starting fall 2021, with goal of offering 20% fewer classes with less than 75% occupancy by fall 2022. 2. ACCESSIBILITY: CCV: Increased access to VSCS  Expand accelerated course selection by 10% in 2020-21, offering 114 programs regardless of classes in an accelerated format in fall and spring. In 2020-21, students race/ethnicity, age, will be able to complete five certificate and degree programs in an educational attainment of accelerated format. parents, prior  Expand Flex classes: in fall 2020, CCV offered 18 Flex classes, and in educational experience, spring 20201 25 Flex classes will be available. family status, or place of residence.  Develop Pipelines for CTE Students by including career-specific courses as well as courses that build academic skills needed for college success with the goal of increasing the percentage of CTE students from The VSCS will commit to 20% to 25% who matriculate at CCV having already earned 6 or more expanding access to VSCS college credits. programs for traditional and  Expand Post-secondary Access to Incarcerated Vermonters in AY2020- non-traditional students by 21 via CCV’s designation as a Second Chance Pell institution able to offering flexible delivery award incarcerated Vermonters Pell Grants to offset the cost of tuition. modalities (in person, virtual,  CCV’s Office of Prior Learning Assessment will coordinate the hybrid, etc.) and flexible development of six competency-based course options for Early scheduling (such as accelerated Childhood professionals to demonstrate their learning in specific programs, evening/weekend, content areas. etc.). Castleton:

 CU’s Center for Schools will expand its offerings and enrollment targeting professional needs of working Vermonters by 10% in AY2021-2022  Grow enrollment in CU’s MBA degree, launched as a fully online program in September 2019, by 10% per year for each of the next 3 years.  Launch a fully online M.S. degree in Nursing, with concentrations in Nurse Educator and Clinical Nurse Leader effective January, 2021.  Submit a proposal to the Board of Trustees by February 1, 2021, in conjunction with NVU, for how CU and NVU can share curriculum and collaborate on degree offerings through remote learning modalities.  Begin renovation of select classrooms for telepresence capabilities. NVU:  Add 10 new community college articulation pathways by the end of the 2021-2022 academic year  Establish a Graduate Division by the end of the 2020-2021 academic year with appropriate administrative support to grow graduate enrollments

23 VSCS Board of Trustees November 16, 2020

 Expand the graduate mental health counseling program to other areas of the state (e.g., Rutland area)  Work with CU to deliver duplicate programs flexibly around the state. The first collaboratively-delivered courses will be offered Fall 2021.  Expand the Lyndon Learning Collaborative to expand enrollments by 25% over current levels by Fall 2022.  Create a new nursing pathway with VTC enrolling 20 new students by Fall 2021 Vermont Tech:  Complete formation of a Diversity Equity and Inclusion committee to develop programming and other plans for enhancing our attractiveness to people of color and other marginalized populations.  Engage EAB to conduct research on how other technical colleges have enabled access for non-traditional students using alternative modalities, scheduling, and decentralized locations while maintaining applied learning opportunities.  Individual faculty will prepare to offer asynchronous access to certain classes in Fall 2021.  Initiate conversations with 1-2 CTEs to select 1-2 programs to pilot by fall of 2022.  Expand the number of employer partners by engaging four additional Continuing Education Workforce Development (CEWD) partners in FY21. 3. ACCESSIBILITY: CCV: Students receiving the  Enhance advising services via Inside Track partnership, including academic, advising and offering five monthly virtual trainings to support advisors in integrating other supports necessary coaching skills into their advising practices and using new program to succeed in their VSCS semester maps in advising. programs as measured by  Publish an enhanced transfer pathways webpage, mapping articulation their retention, agreements from CCV to other colleges and universities. persistence and  Create a virtual learning center to complement CCV’s Tutor.com graduation. service, including training and deploying embedded peer mentors in selected courses. The VSCS will commit to  Use Aviso’s predictive analytics to provide targeted, proactive advising improving the support services to part-time students who fall within the medium-risk category, with available to all students goal of increasing retention and completion each by 5 percentage points through expanded training on for part-time students. and use of Canvas (Learning  Increase Aviso use measured by the number of alerts, notes, and Aviso- Management System) and scheduled meetings. Aviso (Advising software)  Increase faculty adoption of learning technologies including Canvas and across the system, as well as Yuja (video software) via additional virtual trainings/webinars and improved career counseling synchronous practice drop-in sessions. and mentorship of at-risk Castleton: students.  Fully implement a new Center for Teaching and Learning, including

offering Canvas workshops for faculty.  Fully implement Aviso and develop new research-based advising model.

24 VSCS Board of Trustees November 16, 2020

 Implement enhanced career counselling and internship experiences through the addition of a Title III, grant-funded position of Director of Experiential Learning and Workplace Readiness and a partnership with Rutland’s Chamber and Economic Development Corporation. NVU:  Increase the percentage of faculty making use of Canvas and Aviso for outreach to students to 80% by fall 2022.  Increase the number of early at-risk student interventions by 20% over AY2019-2020 levels by using Aviso communication functionality VTC:  Continue to support the work of the Strategic Enrollment Management Committee to maximize retention and assist in on-time graduation, including developing a full plan to include preparation of Title III grant, increase adoption of Canvas and Aviso, and develop a centralized advising model, with a goal of increasing the retention rate from its current 71% to 75% over the next few years. System:  Support continued Canvas and Aviso adoption and use expansion through coordinated training and implementation via the VSC-TLT Group and VSC Aviso Leads Group. 4. QUALITY: The ability System: of VSCS graduates to  Lead a task force of VSC institutional representatives to develop and meet externally- implement a survey to be conducted annually of all graduates within 6 recognized measures of months of graduation, with first survey to be conducted of Spring 2021 achievement (i.e. graduates in late 2021-early 2022. licensure exam success  Lead a task force of VSC institutional representatives to develop and rates) and their implement a survey to be distributed annually to all workforce preparation to compete development partners and identified employers of recent graduates, with in the global workforce. first survey to be conducted in spring of 2022.

Starting this academic year, the VSCS will conduct an annual survey of recent graduates and their employers.

5. RELEVANCE: CCV: Development of degree  In AY 2020-21, establish four new certificates, all of which are aligned paths that are relevant to with workforce needs and nested within existing degree programs. student goals and  In 2020-21, in partnership with Amazon Web Services (AWS), offer a expectations of value in a new course, Foundations of Cloud Computing. Students who complete career. this 3 credit course will be prepared to take the AWS Certified Cloud Practitioner exam. The VSCS will expand the  In AY20-21, launch Introduction to Pharmacy college-wide to all development of degree paths students. Students who take the course can sign up to be Registered with embedded Industry Apprentices.

25 VSCS Board of Trustees November 16, 2020

Recognized Credentials  Launch new strategic partnership with MSI (Manufacturing Solutions (IRCs). Inc in Morrisville) and ETS (MSI’s staffing agency) to create a new training and employment pipeline.  Introduce Flex Credentials, consisting of 2-6 Flex courses leading to a stackable credential in 11 areas such as Certified Production Technology, Digital Marketing, and Medical Terminology. NVU:  Create two career pathways with participating industry experts in the Learning and Working Community Model in each of the next three years beginning at the end of the 2021-2022 academic year.  Embed IRCs in degree programs including but not limited to Graphic Design, Computer Information Systems, and Music Business and Industry by the end of the 2021-2022 academic year. Vermont Tech:  Identify the IRC’s currently embedded in programs and use this information to identify appropriate IRC’s for additional programs by the end of fall 2021 semester.

26 VSCS Board of Trustees November 16, 2020

ITEM 4: Finance & Facilities Memo

27 VSCS Board of Trustees November 16, 2020

Finance and Facilities

Items for Action, Review, and Discussion 1. Provide an update to the Board of Trustees on the October 29, 2020 meeting of the Finance and Facilities Committee at which a system-wide grant and the FY21 budget were both recommended for approval, an enrollment update was presented, an early preview of the FY22 budget was presented, and a new endowment was recommended for approval by the Board of Trustees

2. Approve the system-wide FIPSE grant supporting the VSC Strong Project. This project is designed to improve Vermont high school to college continuation rates through expanded dual enrollment programming, targeted professional development, and strategic investments in technology that will improve distance learning throughout the VSCS

3. Approve the FY21 Budget

4. Discuss Academic Year 2021-2022 Tuition and Fee setting

5. Review Capital Bill and State Appropriation Proposals

ITEM 5: FIPSE Grant Materials

ITEM 6: Resolution 2020-022 System Annual Operating Budget

VSCS Board of Trustees November 16, 2020

VERMONT STATE COLLEGES SYSTEM BOARD OF TRUSTEES RESOLUTION 2020-022

FY2021 Vermont State Colleges System Annual Operating Budget

WHEREAS, The Chancellor of the Vermont State Colleges has recommended the FY2021 budget presented at the October 29, 2020 meeting of the Finance and Facilities Committee, and

WHEREAS, The Finance and Facilities Committee of the Board of Trustees has reviewed the FY2021 budget information, and

WHEREAS, The Finance and Facilities Committee has discussed individual aspects of the proposals with the Chancellor and the Presidents of the individual institutions, and

WHEREAS, The Finance and Facilities Committee recommends the FY2021 System Annual Operating Budget to the full Board; therefore, be it

RESOLVED, That the Board of Trustees of the Vermont State Colleges System hereby approves the System Annual Operating Budget of $176,019,000 including a projected surplus, net of Bridge and CRF funding, of $2,026,000, consistent with the attached materials.

Approved: November 16, 2020

______Lynn Dickinson, Chair of the Board of Trustees

ITEM 6a: Supporting Budget Materials

FY2020 UNRESTRICTED OPERATING RESULTS

FY2020 was a highly unusual year punctuated by rapid closure of residence halls and transition to remote learning in March 2020 due to the Coronavirus. Throughout March and April, the VSCS completed the transition of all faculty, staff, and students to remote environments. The cost of this transition was extremely high with room and board refunds in excess of $5M, unanticipated salary expense due to leave plans (FFCRA), and pandemic costs such as hardware, software, protective equipment, and HVAC solutions. With tremendous gratitude the VSCS received funding in the form of Institutional CARES and HEERF funding as well as Coronavirus Relief Funding allocated by the General Assembly of the State of Vermont. These funds allowed the VSCS to end FY2020 with a revenues over expenses (surplus) of approximately $7.2M, or approximately 4.4%, as compared to a budgeted deficit of $2.1M or -1.2%. As noted above, this favorable variance was driven largely from receipt of one-time funds in the form of Institutional CARES Act, HEERF, and Coronavirus Relief Funds (CRF) with more than $14M applied to the VSC at the end of FY20. Without receipt of these funds, the Vermont State Colleges would have closed FY20 with a deficit balance of $7.1M, or $5M more than originally budgeted.

Community Northe rn Ve rmont Castleton Chancellor's Vermont State Unrestricted Fund College Ve rmont Technical University Office College System of Vermont University College

TOTAL REVENUES 28,156 53,162 49,890 39,491 1,113 171,812

TOTAL EXPENSES 27,231 50,462 49,144 36,626 1,138 164,601

NET REVENUES/(DEFICIT) 925 2,700 746 2,865 (25) 7,211 3.40% 5.35% 1.52% 7.82% -2.20% 4.38%

Unrestricted use of CRF1 497 5,648 5,289 2,831 50 14,316 Net Revenue without use of CRF 428 (2,948) (4,544) 34 (75) (7,105)

1 The materials represented here reflect only the unrestricted fund of the Vermont State Colleges. Additional CRF spending is paid directly from the restricted funds for purchases that do not flow through the instritutions

Table 1: Unrestricted Revenues and Expenses Net of use of CARES, HEERF and CRF It is important to note that not all of the $7.1M in surplus balance is available for carryforward. Funds required for the board required contingency reserve, capital reserve and other commitments such as those for restricted fundraising and designated accounts limit access to these funds for this purpose. However, it is anticipated that more than $4M is available for deficit reduction in FY21.

FY2021 UNRESTRICTED BUDGET REQUEST The VSC’s FY21 unrestricted operating deficit, prior to the use of bridge funding equaling $28.8M and CRF equaling $1.6M, is approximately $28.4M. The distribution of deficits is shown below.

Community Northe rn Ve rmont Castleton Chancellor's Vermont State Unrestricted Fund College Ve rmont Technical University Office College System of Vermont University College NET REVENUE/(DEFICIT) FY21 Net Revenue - (10,800) (11,561) (5,445) (562) (28,368) Coronavirus Relief Funds - 530 930 174 - 1,634 Bridge Funding - - - - 28,800 28,800 TOTAL NET REVENUE/(DEFICIT) - (10,270) (10,631) (5,271) 28,238 2,066

Table 2: FY21 Unrestricted Net Revenue/(Deficit) before use of One-Time Funds The Community College of Vermont continues to be in the strongest financial position. CCV’s strength is derived from several factors including its highly variable cost structure, its small number of owned facilities, and its flexible delivery model. Additionally, CCV does not have an auxiliary revenue stream (room and board, camps and conferences) thus the financial impact of the pandemic is limited solely to tuition and fees. By contrast, Northern Vermont University, Castleton University, and Vermont Technical College have experienced significantly greater impacts on their revenue streams than CCV. Each institution has robust auxiliary enterprises in the form of room and board, as well as campus and conferences. Additionally, their cost structures have fewer degrees of freedom as it relates to salaries and benefits and physical infrastructure. The result is an anticipated net deficit for FY21 for each of these institutions.

REVENUES

FY2021 BUDGET CCV CU NVU VTC VSCS

SELECTED REVENUES Budget Var % 2 Budget Var % Budget Var % Budget Var % Budget Var % Tuition and Fees 20,517 -6% 34,400 -6% 25,053 -16% 22,550 -12% 102,520 -10% Room and Board1 - 0% 5,000 -53% 5,983 -32% 922 -81% 11,905 -51% Sales and Services 6 -25% 560 -35% 250 -76% 1,025 -34% 1,841 -47% Other Revenue 86 -52% 400 -16% 150 -72% 56 -84% 692 -72% TOTAL SELECTED REV. 20,609 -6% 40,360 -17% 31,436 -19% 24,553 -23% 116,958 -17%

1 This is the gross and board number before application of refunds due to Coronavirus 2 Variance Percent is a comparison to FY20 actual results.

Table 3: Selected Revenues, FY2021 Budget Compared to FY2020 Actual

Chart 1: FY2016 - FY2021E System Revenue1, Headcount2 and Discount Percent3

Since FY16 gross student revenues (gross tuition and fees plus room and board) have remained largely constant despite tuition increases averaging more than 2% per year. This is due largely to declining enrollment across the Vermont State Colleges (Chart 1). Student revenue net of discounts (gross tuition and fees plus room and board less student tuition waivers and institutional aid) has declined substantially since FY16 due to a significant increase in discounting across the four Vermont State Colleges. Between FY16 and FY20 gross student tuition increased by approximately $2M. However, student revenue net of discounts decreased by approximately $7.5M. During this term, the average discount, across the system, increased by approximately 8%. It is important to note that the challenging environment in which the VSCS operates with declining demographics regionally with well-qualified, and better-funded, institutions competing for the same student pool. Increasing student discounting, even when it means declining revenue per student, has often been seen as the only means for bringing in the revenue necessary to cover one’s costs. As shown in Chart 2, no institution within the VSC was immune to an increase in discounting. However, Castleton University’s discounting increased at a significantly faster pace than its sister institutions with an increase of 16.2% between FY16 and FY20. In the same period, Vermont Tech’s discounting increased by 6.5%, Northern Vermont University by 5.7% and CCV’s increased by 1.1%.

1 Student Revenue = Tuition + Fees + Room + Board, Student Revenue Net of Discounts = Student Revenue – Student Tuition Waivers – Institutional Aid 2 Headcount = Headcount on October 15 of each fiscal year. Fiscal years conclude on June 30. Therefore Fall FY2020 is October 2019, Fall FY2021E is October 2020 3 Discount Percent = (Student Tuition Waivers + Institutional Aid) / (Tuition + Fees + Room Board)

Chart 2: Institutional Student Revenue, Student Revenue net of Discounts, and Discount Percent FY2016 - FY2021E

As shown in Chart 3, there is not a direct relationship between the discounting rate for an institution and overall enrollment. This increase in discounting is in direct response to both internal (enrollment and revenue) and external (competition) pressures.

Chart 3: Institutional Headcount and Discount Percent FY2016 - FY2021E

The FY2021 Budget’s for each institution is predicated on the current rate (in-state, out-of-state, NEBHE/Good Neighbor), volume (number of students enrolled and their credit volume) and the mix of these factors as well as the discount rate currently proposed. As presented in the budget materials up for review, the discount rates are 3.2% for CCV, 15.6% for Vermont Tech, 23.1% for Northern Vermont University, and 31.3% for Castleton University. The actual discount percent will vary based on the take rate (the number and type of students who accept the aid and continue with enrollment) as well as upon other factors such as changes in teaching modality. For example, if Castleton returns to face-to-face instruction and more students live on campus, the discount percent may go down relative to what has been proposed here. This fall the Vermont State Colleges hired EAB to perform several critical enrollment functions including financial aid optimization. While it is far too early to tell whether this work will improve the net revenue picture it is important that all institutions have access to the same resources.

EXPENSES

Chart 4: FY21 Budgeted Expenses for the VSCS More than 62% of budgeted expenses for the unrestricted fund are for wages and benefits. This has been a relatively stable statistic at approximately 62% or 63% of all unrestricted expenses for the last several years. Between FY16 and FY20, at the same time, enrollment fell 13.8%, salaries fell by 3.2% and benefits fell by 4%. On the surface it appears that salaries and benefits have not fallen fast enough proportionately to the decline in enrollment, however, annual increases in wage and benefits costs mask the overall proportional decline in the number of employees.

Chart 5: FY21 Budgeted Expenses by Institution The pie charts shown in Chart 5 show the FY21 Budgeted Expenses by Institution. These charts, reflect the budgeted expenses by primary expense category4. Supplemental narrative information by institution is supplied following these pages. The Vermont State Colleges have been fortunate to receive substantial one-time support from the General Assembly in the form of Bridge Funding and Coronavirus Relief Funds. The FY21 budget reflects careful use of these funds and is an important first step in transitioning the VSC to a new leaner, more nimble organization.

4 The Scholarship expense shown on Charts 4 and 5 of this document reflect only institutional aid. Student Tuition Waivers that are off-set directly against tuition are not reflected here. Revenue line waivers are reflected as a direct revenue off-set. There are nuanced differences in accounting that must be normalized before a direct comparison between institutions can occur using these charts however each institution’s materials are internally consistent. Vermont State Colleges System Unrestricted Revenues and Expenses FY2021 Budget Proposal October 29, 2020 (Amounts rounded to $1,000)

Community College Castleton Northern Vermont Vermont Technical Chancellor's Office Vermont State College System of Vermont University University College2 FY2020 FY2021 Variance FY2020 FY2021 Variance FY2020 FY2021 Variance FY2020 FY2021 Variance FY2020 FY2021 Variance FY2020 FY2021 Variance Actual Budget Percent Actual Budget Percent Actual Budget Percent Actual Budget Percent Actual Budget Percent Actual Budget Percent

REVENUES Tuition and Fees 21,769 20,517 -6% 36,498 34,400 -6% 29,662 25,053 -16% 25,740 22,550 -12% - - 0% 113,669 102,520 -10% State Appropriation 6,119 6,020 -2% 6,418 6,821 6% 11,331 11,006 -3% 7,757 7,590 -2% 120 28,800 23900% 31,745 60,237 90% Room and Board - - 0% 10,699 5,000 -53% 8,863 5,983 -32% 4,807 922 -81% - - 0% 24,370 11,905 -51% CRF: Room/Board Refunds - - 0% (2,230) - -100% (2,052) - -100% (1,098) - -100% - - 0% (5,380) - -100% Sales and Services 8 6 -25% 858 560 -35% 1,045 250 -76% 1,562 1,025 -34% - - 0% 3,473 1,841 -47% Gifts 80 50 -38% 441 420 -5% 508 250 -51% 383 130 -66% 9 - -100% 1,421 850 -40% Other Revenue 180 86 -52% 478 400 -16% 533 150 -72% 340 56 -84% 984 - -100% 2,515 692 -72% TOTAL REVENUES 28,156 26,679 -5% 53,162 47,601 -10% 49,890 42,692 -14% 39,491 32,273 -18% 1,113 28,800 2488% 171,812 178,045 4%

EXPENSES Salaries and Benefits 21,817 20,497 -6% 29,117 29,495 1% 32,649 32,400 -1% 23,938 23,555 -2% 4,802 4,549 -5% 112,323 110,496 -2% CRF: Salaries (497) - -100% (1,188) (330) -72% (1,185) (587) -50% (636) (174) -73% (50) - -100% (3,556) (1,091) -69% Wage/Ben. Reserve Adj - - 0% - - 0% - - 0% - - 0% (3,942) - -100% (3,942) - -100% Services, Supplies, Travel 4,538 4,870 7% 8,520 10,158 19% 7,618 9,135 20% 7,258 7,782 7% 5,673 5,171 -9% 33,607 37,116 10% CRF: Services/Supplies/Travel - - 0% - (200) 0% - (343) 0% - - 0% - - 0% - (543) 0% Scholarships 145 170 17% 10,686 11,600 9% 6,216 5,290 -15% 2,138 2,180 2% - - 0% 19,185 19,240 0% Utilities 291 325 12% 1,965 2,000 2% 2,139 2,158 1% 1,645 1,433 -13% 39 39 0% 6,079 5,955 -2% Other Expenses - - 0% 5 - -100% - - 0% - - 0% 4,945 4,827 -2% 4,950 4,827 -2% Debt Service 1,319 1,034 -22% 3,483 2,096 -40% 2,357 1,756 -25% 1,923 1,114 -42% - - 0% 9,082 6,000 -34% Chancellor's Office 1,621 1,622 0% 1,729 1,837 6% 3,102 2,965 -4% 1,650 1,653 0% (8,100) (8,100) 0% 2 (23) -1250% Other Transfers (2,003) (1,839) -8% (1,625) 1,255 -177% (1,700) 549 -132% (192) 1 -101% (2,229) (5,924) 166% (7,749) (5,958) -23% CRF: Other Transfers - - 0% (2,230) - -100% (2,052) - -100% (1,098) - -100% - - 0% (5,380) - -100% TOTAL EXPENSES 27,231 26,679 -2% 50,462 57,911 15% 49,144 53,323 9% 36,626 37,544 3% 1,138 562 -51% 164,601 176,019 7%

NET REVENUES/(DEFICIT) 925 - 2,700 (10,310) 746 (10,631) 2,865 (5,271) (25) 28,238 7,211 2,026 3.40% 0.00% 5.35% -17.80% 1.52% -19.94% 7.82% -14.04% -2.20% 5024.56% 4.38% 1.15%

Unrestricted use of CRF1 (497) - (5,648) (530) (5,289) (930) (2,831) (174) (50) - (14,316) (1,634) Net Revenue without use of CRF 428 - (2,948) (10,840) (4,544) (11,561) 34 (5,445) (75) 28,238 (7,105) 392

Community College of Vermont FY21 Budget Narrative

REVENUES Tuition and Fees: in building our budget, we projected a decrease in enrollment. This is in response to Vermont demographic trends. However, CCV’s Fall 2020 enrollment was strong and exceeded budget projections. CCV still has two more enrollments for the year (spring and summer) before we will have an actual picture of our overall enrollment. That said, CCV’s enrollments are trending in a positive direction. CCV has balanced its budget using the smaller enrollment projection. State Appropriation: CCV has not included any bridge funds in this budget.

EXPENSES Salary & Benefits: Assumptions in this budget line include a 10% premium increase on Health Insurance and an overall decrease in faculty contracts due to running less courses. Service, Supplies & Travel: We are projecting an increase in this line item predominately due to cleaning protocols associated with COVID. We will be purchasing a lot of cleaning supplies and equipment (such as plastic dividers, thermometers), most of which will be covered by CRF funding. Transfers/Debt: A significant savings is recognized in the FY21 debt support category as a result of the recent refinancing of system-wide existing debt. Unfortunately this significant savings is for this year and will rise again in FY2022. CCV has accumulated some funds through carryforward to somewhat offset the year over year increase and slope the increase over several years.

Castleton University FY21 Budget Narrative

REVENUES Tuition and Fees: This budget represents the actual FTE enrollment as of late September 2020. The FTE count used in this budget is 1,753 as compared to October 15, 2019 FTE of 1,965. This represents a 10.8% decline in projected enrollment. In addition to these FTE counts we also include the Center for Schools revenue here and it is experiencing a solid, consistent student enrollment count. Room & Board: This budget represents a total of 434 residential students living on the main campus, Rutland apartments and Killington site. Due to COVID-19 and the need for on-line delivery of instruction this has resulted in a significant change from the FY20 budget count of 1,123 residential students. Other Revenues (Sales & Services, Gifts, Other): This budget represents a decrease from FY20 of $750,000. This projected decrease is primarily due to lost Conference and Events, Athletic Receipts, and Residential student fees and charges. All a result of COVID-19 challenges.

EXPENSES Salary & Benefits: Assumptions in this budget line include a 10% premium increase on Health Insurance, 0% increase in most of the bargaining and non-bargaining units, three necessary Faculty hires offset with many unfilled positions, at this time, due to natural attrition. Service, Supplies & Travel: Saving assumptions in this budget line include travel expenditures in the area of athletics and admissions, reduced meal/room expenses for athletic travel, reduced Sodexo costs due to reduced residential students, and no foreign travel. One increase is in the Admissions budget due to a new system wide EAB contract that will help to improve our enrollment and retention rates in the upcoming years. Scholarships: The increase in scholarships for FY21 can be attributed to the success of the Maple Scholarship program for out of state students. This program grants the equivalent of Vermont resident tuition to out of state students as many regional publics in our area are also doing. The approximate value of $17,000 per student results in several million dollars of additional scholarship expenditures. During non-COVID-19 times, students are expected to live on campus as recipients of this scholarship. In future years the hope will be to move the expenditure of the Maple Scholarship to that of tuition waivers rather than scholarships to be consistent with other system practices. Transfers/Debt: A significant savings is recognized in the FY21 debt support category as a result of the recent refinancing of system-wide existing debt. Unfortunately, this significant savings is offset by the reduction of budgeted medical reserve allocation. It is also important to note that this debt savings is only for FY21, we will have a significant increase in our payment in FY22. This category also includes a $580,000 system loan payment that will reduce Castleton’s outstanding loan amount down to $129,000

FUND BALANCE Board Required Reserve Fund: As of June 30, 2020 Castleton, University’s Board Required Reserve fund is fully replenished at the required 2.5% or $1,463,825.

Northern Vermont University FY21 Budget Narrative

REVENUES Tuition and Fees: NVU is planning for a mix of in person/hybrid/remote classes for both FA20 and SP21. This budget represents the actual FTE enrollment as of late September 2020. The FTE count used in this budget is 1,607 for FA20 as compared to 1,960 for FA19. This represents an 18% decline in projected enrollment. Historical persistence rates are used to project SP21 enrollment. Room & Board: The assumption is that there are no COVID related campus interruptions during FY21. For safety reason due to COVID, NVU made the decision to assign residential students to single rooms. This budget represents a total of 580 residential students living on campus for FA20. This compares to 871 residential students FA19. Historical fall to spring persistence was used to project SP21 residential participation. Other Revenues (Sales & Services, Gifts, Other): This budget represents a decrease from FY20 of $1,460,000. This projected decrease is primarily due to lost Conference and Events. A traditional summer 2021 Conference and Events schedule is being planned.

EXPENSES Salary & Benefits: Assumptions in this budget line include a 10% premium increase on Health Insurance, 0% increase in most of the bargaining and non-bargaining units. Total wages will be lower in FY21 as a result of evaluating all vacancies and retirements and aligning existing staff with operational demands. Service, Supplies & Travel: Significant savings are assumed from traditional expenditure levels. Savings in this budget line are driven by reduced athletic schedules, elimination of international class trips, and across the board operational reductions. There are some increases built in the budget to address the need for COVID testing and supplies as well as cost associated with sanitation and cleaning in SP21, after the CRF deadline. Additionally, the system wide EAB contract is included to improve our enrollment and retention rates in the upcoming years. Transfers/Debt: A significant savings is recognized in the FY21 debt support category as a result of the recent refinancing of system-wide existing debt.

Vermont Technical College FY21 Budget Narrative

REVENUES Tuition and Fees: The budgetary assumptions under which the attached has been developed reflect up-to-date enrollment and revenue trends, utilizing data student billing data from the final week of September. In aggregate, we are seeing a 13.9% year-to-year decline in Tuition & Fee revenue, with significantly more pronounced decline in out-of-state (-34.0% O/S; -29.6% NEBHE) than in-state (-5.9%). with assumptions these trends continue for the spring 2021 semester Our fee revenue is down roughly proportionally. Vermont Tech is projecting a decline of $3.2MM in Tuition & Fee revenue from FY20. Room & Board: Vermont Tech has adopted a hybrid approach to Residential Life, with the majority of students adopting either an online-only experience or a low-residency experience. (Approximately 116 students remain in the dormitories.) Prior to the Coronavirus pandemic beginning in March ’20, VTC had projected an FY20 R & B revenue of $4.8MM; following the subsequent restriction and refund, this revenue line declined to $3.7MM. In FY21, VTC is projecting a R & B revenue of $0.9MM, a decline of 75% from prior year. Other Revenues (Sales & Services, Gifts, Other): This budget represents a decrease from FY20 of $0.5MM. The majority of this change is also due to Coronavirus related factors: the near- complete loss of Conferences and Events, SHAPE Income, and etc.

EXPENSES Salary & Benefits: Assumptions in this budget line include a 10% premium increase on Health Insurance, wage increases between 0% and 2% depending on bargaining unit, and an overall decline in workforce size of approximately 1% due as a result of previously announced actions (Digester closure; Program Curtailments) at the conclusion of FY20. Service, Supplies & Travel: While CRF funds have covered many expenses in the fall, Vermont Tech is anticipating carrying increased cost related to COVID-19 during the spring. We anticipate cleaning, student testing, and other COVID-related costs of approximately $0.3MM. Transfers/Debt: A significant savings is recognized in the FY21 debt support category as a result of the recent refinancing of system-wide existing debt. Unfortunately this significant savings is offset by the reduction of budgeted medical reserve allocation. This category also includes another $400,000 payment against Vermont Tech’s outstanding system loan.

ITEM 7: Audit Memo

VSCS Board of Trustees November 16, 2020

Audit

Items for Action, Review, and Discussion 1. Provide an update to the Board of Trustees on the October 29, 2020 meeting of the Audit Committee at which O’Connor & Drew presented the draft FY2020 Audited Financial Statements and the committee approved the FY2021 Internal Audit Plan

2. Approve the FY2020 Audited Financial Statements

ITEM 7a: FY21 Internal Audit Plan: Payroll & Benefits

Internal Audit Plan

Fiscal Year 2019-2020

Payroll and Benefits

Fiscal Year 2020-2021 Internal Audit Plan p. 2

Contents 1. GENERAL INFORMATION ...... 3 1.1 Purpose/Objective ...... 3 1.2 Scope ...... 3 1.3 Overview ...... 4 2. AUDIT EVALUATION ...... 8 2.1 Metrics ...... 8 3. AUDIT PLAN ...... 9 3.1 Method of Internal Audit...... 9 3.2 Procedures ...... 9 3.3 Roles and Responsibilities ...... 11 Total Estimated Staff Hours: ...... 11 INTERNAL AUDIT PLAN ...... 12 Authorization Memorandum ...... 12

Fiscal Year 2020-2021 Internal Audit Plan p. 3

1. GENERAL INFORMATION

1.1 Purpose/Objective

The Internal Audit process is extremely important as it is designed to evaluate and improve the effectiveness of risk management, control and governance processes, as well as add value by improving an organization’s operations. Assessing internal controls ensures that resource use is consistent with laws, regulations, and policies; that resources are safeguarded against waste, loss, and misuse; and that reliable data is obtained, maintained, and fairly disclosed in reports.

The overall objectives of an internal audit are to determine whether the colleges: • Managed and used resources in an efficient, effective, and economical manner. • Administered funds in compliance with applicable laws, regulations, policies and procedures. • Implemented internal controls to prevent or detect material errors and irregularities.

The specific objective in this audit is to: • Assist management with the assessment of the adequacy of internal controls related to the processing of payroll and benefits.

1.2 Scope

The Vermont State Colleges internal audit group, through the direction and oversight of the Audit Committee of the Board of Trustees, prepares an internal audit plan, conducts the annual internal audit and issues a final report to the Committee. The audit is of the current fiscal year. The scope of the FY20 internal audit will be a risk assessment of management controls as they relate to VSC Payroll and Benefits.

1. Does the VSCS have adequate controls to ensure payroll and benefits transactions are managed effectively throughout the payroll and benefits lifecycle? 2. Are employees accurately added to, and termed from the system? Are position and wage changes processed effectively? 3. Are employees and supervisors complying with stated VSC policies and procedures? 4. Are payroll and benefits transactions accurately calculated? 5. Are leave times calculated and accrued correctly? 6. Are benefits changes accurately processed and reflected within our benefits systems? 7. Is the employer and employee share of benefits accurately calculated and processed? 8. Do payroll transactions accurately flow to the general ledger and benefits companies? 9. Do payroll transactions accurately flow to state and federal taxing authorities? 10. Do all VSC institutions have adequate access to payroll and benefit information to manage their respective institutions? 11. Are there methods in place to detect waste, fraud or abuse?

Fiscal Year 2020-2021 Internal Audit Plan p. 4

1.3 Overview

The Vermont State College system is comprised of four institutions of higher education, Vermont Technical College, Northern Vermont University, Castleton University, and the Community College of Vermont, as well as the Office of the Chancellor. Each of the institutions operates as a single business unit in that most administrative functions exist at each location with the exception of the following functions:

• Accounts Payable • General Accounting • Grants Compliance • Benefits Administration1 • Payroll Administration2

With the last payroll of June 2019 the Vermont State Colleges implemented two new systems for Payroll (UltiPro) and Benefits Administration (Benefits Prime). With these implementations, all transactions related to payroll, employee management and benefits administration were moved from the institutions to the Office of the Chancellor. This change impacted every faculty member, staff member, retiree, and student worker within the Vermont State Colleges. The change was dramatic, and involved revising nearly every process and procedure related to employee payroll management, as well as all benefits administration activities.

As with all major software implementations of this size, the VSC should expect that there will be a period of adjustment, typically estimated at 18-36 months from the date of first implementation, before it arrives at a business processing “steady state”. Throughout the intervening period the VSC should expect to see steadily improving accuracy, reliability and compliance.

There are three primary drivers regarding the speed with which an organization can achieve steady-state business operations post-software implementation. These include:

• Software readiness and accuracy • Human ability to rapidly take on change, and level of communication with constituents • Effectiveness of, and necessary revisions to, processes and procedures

1 On July 1, 2019 the Office of the Chancellor (OC) took on full responsibility for managing benefits for all personnel and retirees. Prior to this date, the OC was responsible for processing the benefits of retirees, as well as administration of the VSC benefits plans including contract/plan negotiation, reconciliation and escalated problem resolution.

2 Prior to July 1, 2019, the OC was responsible for tax administration/processing, bank statement/account reconciliation, and electronic funds transfer. Effective with the implementation of UltiPro, the OC became responsible for all aspects of payroll processing including adding new employees, terming employees from the system, calculating payouts upon termination, adjusting wages based on contractual obligations as well as bi- weekly payroll processing for the enter VSC. Fiscal Year 2020-2021 Internal Audit Plan p. 5

The benefits of centralized payroll and benefits systems include:

• Greater compliance with state, federal and local laws • Improved compliance and consistency related to collective bargaining agreements • Increased efficiency of benefits administration and payroll processing • Reduced cost for the Vermont State Colleges

However, the VSC should be aware of, and guard against many of the red flags that can be associated with benefits and payroll administration such as:

• Noncompliance with state, federal, local or municipal tax laws • Inaccuracies or irregularities with overtime calculations • Incomplete or absent documentation associated with employment changes • Frequent late completion and/or approval of time sheets • Requests for payment lacking appropriation authorization or incomplete authorization • Inadequate written controls

There are comprehensive industry standards for administration and oversight of benefits and payroll administration functions. Necessary controls, both preventive and detective, are important to reduce the likelihood of misuse, abuse, fraud, waste, and errors.

The following are examples employee actions that may raise red flags and require additional review:

• Frequent late submission of time sheets (employees) • Frequent late approval of time sheets (supervisors) • Overtime entries in excess of a specific standard for a department or unit (employee entry, supervisor approval) • Manual and/or undocumented entries into the benefits and or payroll system (benefits/payroll personnel) • Override of benefits and/or payroll transaction documents (benefits/payroll personnel) • Incomplete or inaccurate payment requests and/or employment change documents from institutions (HR personnel at institutions) • Unsigned/unapproved wage change and/or payment requests (HR personnel) • Requests for payment that exceed payment authority (supervisors) • Requests for payment by the employee for herself, a family member of significant other (employees) • Application of incorrect wage rate, position title, grade, bargaining unit or related activities within payroll/benefits system (benefits personnel) • Payouts for termed employees are calculated incorrectly (benefits personnel) • Employment start/end dates are not accurately recorded (benefits personnel, HR personnel) • Inaccurate or incorrect assignment of benefits (benefits personnel) Fiscal Year 2020-2021 Internal Audit Plan p. 6

• Incomplete or absent federal and/or state documents such as I-9, W-4, W-4VT, Health Care Declaration (benefits personnel, HR personnel at institutions)

The following are examples of preventive controls should be in place for any benefits and payroll administration system:

• Incoming requests for all employee changes should be date stamped and logged upon receipt o Requests are for reviewed for accuracy, authorization levels, and completeness and returned to institution if incomplete. A note is made in the log that rework has been requested . Rework is returned by the institution on the same form, with appropriate changes, and a secondary review is conducted. A note is made in the log if complete o Complete entries are processed into the appropriate benefits/payroll system. A note is made in the log that the entries are complete . Termination calculations for employee payouts are reviewed by a second person, and with institution HR to verify accuracy before entry o Quality control is executed on completed entries on a daily, weekly, or payroll basis to ensure accuracy of entries . Inaccurate entries are corrected in the appropriate system. Notes are made in the log about any issues with data entry to improve processes and procedures . Accurate entries are recorded in the log . Frequent, recurring, quality control issues by an employee is considered a performance deficiency and is addressed as such

• Bi-weekly timesheets for non-exempt employees are reviewed by each supervisor for each pay period o Supervisors ensure the accuracy of the time recorded by the employees, specifically confirming leave time taken, overtime and total hours worked, and approve timesheets . Timesheet inaccuracies are corrected by the supervisor. Frequent timesheet inaccuracies by an employee are considered a performance deficiency, as is frequent failure to log time. . Frequent failure to review and approve timesheets by a supervisor is considered a performance deficiency.

• Bi-weekly payroll for all employees is evaluated for accuracy o High volume exceptions (i.e. more than 8 hours of overtime in a 24-hour period) are automatically identified and noted for review by Payroll . Payroll reviews exceptions and resolves each exception through discussion/evaluation with HR at the involved institutions o Using the change log, all associated payroll transactions are reviewed for accuracy against the original documentation Fiscal Year 2020-2021 Internal Audit Plan p. 7

. Inaccuracies are returned for rework. . The number of inaccuracies are tracked o Unchanged records are evaluated electronically to confirm consistency with prior payroll

Detective controls are retrospective actions to identify questionable transactions. As implied, these controls identify potential issues after the transactions have occurred, but they cannot stop fraudulent transactions from occurring. However, detective measures can assist in quickly identifying potential issues. Some of the more common detection controls associated with benefits and payroll transactions include:

• Reconciliation review of employees and dependents eligible for benefits programs with those actually enrolled in benefits. • Periodic reports: o Report summarizing payroll transactions (number of hours, leave time taken, amount of overtime) by employee sent to supervisors for review. o Student employee report summarizing all hours by employee, by job by payroll to be reviewed by institution o Overtime report summarizing all overtime by institution, department, and employee by payroll. o Duplicate transaction report. This report identifies automatically transactions that appear to be duplicated for the same person • Three-strike rule: If a person repeatedly fails to enter time or approve time entries, proceed with performance deficiency actions. • Random Audits: periodically conduct an audit of payroll and benefit transactions. • Anonymous tip line: Most frauds are discovered as the result of a tip. A tip line allows employees to report suspected p-card misuse.

Fiscal Year 2020-2021 Internal Audit Plan p. 8

2. AUDIT EVALUATION

2.1 Metrics

DESIGN MATRIX (PAYROLL AND BENEFITS ADMINISTRATION) Objectives Information Scope and Limitations What this analysis Required & Sources Methodology will likely say What are the What information is How will each What are the design What are the objectives this audit needed to address objective be limitations and how expected results of is trying to address? the objective? From addressed? will it affect the the work? where will the audit? information be received? To determine if the The most recently Inquiry and review of The sampling method The audit will be able Vermont State completed self- selected documents in will not allow us to to report whether or Colleges has the assessment scope to ensure identify every error or not the internal appropriate policies questionnaires. compliance and make statements about controls and and procedures adequacy of internal payroll and benefits as policies/procedures involving the Written policy and controls. a whole. are function properly administration of procedure as designed. payroll and benefits to documentation. A sample of payrolls, A portion of the audit comply with laws, and incoming requests will use inquiry as our The VSC will have rules, regulations, Collective bargaining for payment, and testing method; current written collective bargaining agreements benefits changes will therefore, we will rely documentation of the agreements and be identified The on personnel’s existing policies and industry best practices Information and data number and nature of responses, which is procedures and will be from institutions transactions, the not the most reliable able to identify and amounts and levels of form of supporting implement best oversight of the documentation. practices to improve process will be accuracy and considered compliance. The plan is to review Interviews and Necessary documents Recommendations the internal controls discussions with to support good will provide a path involving payroll and personnel internal control will be forward for improving benefits collected the overall usefulness administration and Review of sampling of of the new systems assess the extent that payroll, benefits and Interviews and walk- and will speed the these controls are related data throughs with time to “steady state”. proper and working as personnel relevant to intended audit objectives

Fiscal Year 2020-2021 Internal Audit Plan p. 9

3. AUDIT PLAN

3.1 Method of Internal Audit

The internal audit team will use the FY20 self-assessment questionnaires, review relevant VSC and institution policies and procedures, and conduct interviews with personnel regarding current practices related to benefits and payroll administration.

Sample payroll and benefit transactions will be selected to determine compliance with established policies, procedures, laws, regulations, collective bargaining agreements, and industry best practices.

Additionally, the team will provide guidance and written recommendations to management that will assist in the improvement of the internal control structure of payroll and benefits administration.

3.2 Procedures

1. Review written policies and procedures regarding payroll and benefits administration

2. Confirm employees listed are employees a. Obtain list of employees from UltiPro and ask HR directors to confirm the employees are actually employees, and that the bargaining unit is correct b. Verify employee start and end dates are accurate

3. Verify rates of pay (faculty and staff) a. Obtain list of bargaining unit employees and confirm rate of pay is accurate according to collective bargaining agreements (annual increases as of July 1 or other) b. Obtain list of employees who received increases in pay and verify: i. Was an appointment letter, PAF or other document provided to reflect increase in pay ii. If retroactive increase was necessary (back-date) the calculation was correct and accurately applied iii. The increase was applied at the appropriate date 1. If the increase was applied part-way through a payroll that the increase was applied accurately for the partial period. c. Obtain list of part-time faculty and verify i. Assignment contracts are applied properly and calculated correctly

4. Payroll verification: a. Using list of active employees (faculty, staff, students), verify each was paid in the payroll system b. Verify leave times were entered and use correctly (i.e. use of floating holidays over December break) Fiscal Year 2020-2021 Internal Audit Plan p. 10

c. Verify leave times were accrued properly according to bargaining unit contracts and years of service d. For student workers, verify: i. Position selected for data entry was correct for student’s contract(s) and positions(s) ii. Hours worked were within student’s free time (not during a scheduled class period) iii. Hours did not exceed 20 hours a week iv. Where the student had more than one position, the correct rates of pay were used for hours logged e. For non-exempt personnel, verify: i. Hours calculated correctly ii. Overtime rates calculated correctly according to bargaining unit agreements or federal law as required iii. Call in pay calculated correctly iv. 2nd and 3rd Shift pay calculated correctly f. Verify deductions

5. For one or more payrolls verify: a. Transactions have appropriate documentation b. All transactions have been completed accurately c. Payroll deductions have been calculated properly and have appropriate documentation

6. Using a list of employees receiving benefits: a. Verify that deductions are being properly calculated b. That all benefits recipients are eligible to receive the benefit

7. Terminated and Retired employees verify: a. Obtain list of terminated and retired employees from institutions and verify term date(s) in UltiPro b. Employee term date in the benefits system is correct c. Vacation payouts (if necessary) were accurately calculated, applied for the correct payroll, and was taxed correctly. d. Employees on partial year assignments (less than 1.0 FTE or full-time faculty) the final pay date is accurately calculated and any partial payment (or payment owed to the employee) is accurately calculated

8. Verify state, local, municipal taxes are calculated properly and remitted to the appropriate authority.

9. Using sample transactions of each type (grant eligible, split grant, multiple positions, single position, multiple institutions, multiple bargaining units, student employees, full- time faculty, staff, etc.) verify transactions accurately flow to the general ledger. a. Verify payroll, benefits, and all other deductions accurately flow with adequate documentation in the record to support business operations

Fiscal Year 2020-2021 Internal Audit Plan p. 11

3.3 Roles and Responsibilities

Audit Team (name, role, title, institution) • Sharron Scott, Audit Manager, Chief Financial & Operating Officer • Renee Hunt, Audit Supervisor, System Controller • TBD, Audit Staff

Internal Stakeholders • Board of Trustees • Chancellor and Presidents • Deans of Administration • Collective Bargaining Units • All current employees, and retirees (faculty, staff, students and retirees)

3.4 Milestones

Activity Estimated Completion Date Completion of Audit Plan October 29, 2020 Completion of Audit Fieldwork / Report to Management February 26, 2021 Comments back from Management March 12, 2021 Final Report Issued to Audit Committee April 12, 2021 Vermont State Colleges Audit Committee Review April 19, 2021

Total Estimated Staff Hours: 150-200

p. 12

INTERNAL AUDIT PLAN Authorization Memorandum

I have carefully assessed the FY21 Internal Audit Plan for the Vermont State Colleges. This document has been completed in accordance with the parameters set forth by the Audit Committee of the VSC Board of Trustees.

MANAGEMENT CERTIFICATION - Please check the appropriate statement.

______The document is accepted.

______The document is accepted pending the changes noted.

______The document is not accepted.

______Linda Milne DATE Audit Committee, Chair

______Sharron R. Scott DATE VSC Chief Financial & Operating Officer

ITEM 8: Resolution 2020-020 Accepted FY2020 Audited Financial Statement

VSCS Board of Trustees November 16, 2020

VERMONT STATE COLLEGES SYSTEM BOARD OF TRUSTEES RESOLUTION 2020-020

Acceptance of the FY2020 Audited Financial Statements

WHEREAS, The Vermont State Colleges has contracted with O’Connor & Drew to perform its FY2020 financial statements audit, and the auditors have delivered the draft financial statements; and

WHEREAS, The Board’s Audit Committee has reviewed these materials and recommended that the Board accept them; therefore; and

WHEREAS, Federal guidance regarding the auditing of CARES, HEERF, and Coronavirus Relief Funding is currently pending; therefore be it

RESOLVED, That the Board of Trustees of the Vermont State Colleges hereby accepts the FY2020 Financial Statement Audit Report by O’Connor & Drew; and be it further

RESOLVED, That O’Connor & Drew will complete the Uniform Guidance Single Audit Report and Advisory Comments as soon as practicable following release of guidance; and be it further

RESOLVED, That the completed Uniform Guidance Single Audit Report and Advisory Comments will be presented for review and approval by the Audit Committee of the Board of Trustees of the Vermont State Colleges at its next regularly scheduled meeting following completion of the report by O’Connor & Drew.

Approved: November 16, 2020

______Lynn Dickinson, Chair of the Board of Trustees

ITEM 9: VSCS Policy 427: Leasing of Educational Broadband Spectrum

VSCS Board of Trustees November 16, 2020

Title Number Page

LEASING AND SALE OF EDUCATIONAL BROADBAND 427 1 SERVICES SPECTRUM Date 11/16/2020

PURPOSE

The purpose of this policy is to ensure that any leasing or sale of Educational Broadband Services (EBS) spectrum results in the VSC receiving fair market value, exclusive of the costs of the sale or lease.

STATEMENT OF POLICY

Before leasing, selling or otherwise disposing of an interest in any EBS spectrum, the Vermont State Colleges, or any member College thereof, shall publicly advertise for bids on such spectrum and, if appropriate, shall invite bids from three or more potential lessees or purchasers.

Any activity or expense related to federal grants or contracts must comply with 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, in addition to the provisions above.

The VSC Board of Trustees shall be notified of any proposed leasing, sale or disposal of EBS spectrum.

Signed by:

Sophie Zdatny, Chancellor

Date Version Revision Approved By 10/25/07 1.0 Adopted VSCS Board of Trustees

36 VSCS Board of Trustees November 16, 2020

Manual of Policy and Procedures

Title Number Page

LEASING AND SALE OF EDUCATIONAL BROADBAND 427 1 SERVICES SPECTRUM Date 10/25/0711/16/2020

PURPOSE

STATEMENT OF POLICY

The VSC Board of Trustees shall be notified of any proposed leasing, sale or disposal of EBS spectrum.

Signed by:

______Sophie Zdatny, Chancellor

ITEM 10: Student Voices on Diversity, Equity and Inclusion in the VSCS

VSCS Board of Trustees November 16, 2020

STUDENT VOICES ON DIVERSITY, EQUITY AND INCLUSION IN THE VSCS

Students who will be speaking at the 11/16 Board Meeting will respond to one or more of the questions below. We’re anticipating six students presenting. Each student will speak for no more the five minutes.

What are you getting/not getting from your academic programs that help you to understand racism/multiculturalism?

What would it mean to you to have a more racially diverse staff & faculty at your institution?

What programming have you seen/attended that has given you a sense of hope in terms of racial justice?

What activities, clubs, services would help you, as students of color, to feel more at‐ home on campus?

What changes would you like to see on our campuses/in the VSC that would make our institutions more diverse, inclusive & equitable and more welcoming to students of color?

39 VSCS Board of Trustees November 16, 2020

Students Scheduled to Present to Board at November 16th, 2020 Meeting

CCV

‐ Abdikadir Hussein Muya ‐ Liberal Studies ‐ Fall of 2020 ‐ African American ‐ Pronouns he/his

Castleton:

‐ Name: Bryce Diggs ‐ Major: Psychology and women's and gender studies ‐ Year of graduation: 2022 ‐ Race: White ‐ They/them

NVU‐Johnson

‐ Ayo Shokeye ‐ Interdisciplinary Studies focus: Education, psychology of sports, sociology of Media ‐ Spring 2021 ‐ African American ‐ Pronouns he/his

‐ Devyn Thompson ‐ Secondary Education focus in English ‐ Spring 2023 ‐ African American ‐ Pronouns she/her

VTC

‐ TBD

NVU‐Lyndon

‐ Sabra Ann Snyder ‐ B.S. in Applied Psychology & Human Services ‐ May 2021 ‐ Celtic / Hispanic / African ‐ Pronouns she/her

40 VSCS Board of Trustees November 16, 2020

Statement for VSC Board Meeting in Support of Challenging Racism & Being Inclusive

Racism and systemic oppression exist – and it is more than ignorant individuals shouting obscenities at a targeted group. Racism is the systematic oppression of BIPOC through our institutions and culture in the United States that is perpetuated through white silence. Not a single one of us is exempt.

We are taught, hypocritically, through omission and silence that the way things are is not only okay, but desired. But a system in which some suffer so greatly as a way to further a few is unacceptable in this day and modern age. Racism isn’t about all people achieving the American dream. It’s about ending the Nightmare that is the everyday, waking‐life American experience for Black, Indigenous, and Peoples of Color. The hypocrisy of the privilege of whiteness that truly formed this country is costing previous lives, and is holding EVERYONE back.

Exploring race and challenging racism is a process. And not a spectator one – saying and doing nothing only assuages guilty consciousness; deliberate, thoughtful, mindful action is that which amends. This process starts with self‐education and reflection. Everyone needs to understand who they are, and what part they’ve been playing.

We need real education. One that teaches us the entire history of our country, and ALL its peoples. We need real education about ourselves – who we are, what we are, and why we are. And what we’re capable of when we’ve decided enough is enough. I am grateful I had the opportunity to do such in a class at Northern Vermont University taught by Pat Shine.

Hope germinates from what we find when we ask ourselves the tough questions; when we see that a system is not only no longer functioning, but is causing injury, illness, pain, and death. Hope takes root when we decide this is no longer acceptable, and we begin to act. Let this become a required course for all students at Northern Vermont University. Because the real, waking‐life American world is waiting for students out there. Let the University make good on its promises to prepare students for life!

Respectfully submitted,

Lisa Martin

Exploring Race & Challenging Racism with Pat Shine, Fall 2020

41 VSCS Board of Trustees November 16, 2020

18 Munjoy St. Apt 3 Portland, ME 04101 November 11, 2020

Vermont State Colleges System P.O. Box 7 Montpelier, VT 05601

Dear Board of Trustees Members:

I am writing this letter as my written testimony as to the importance for racial justice education across all Vermont State Colleges campuses. I am a 2013 graduate from Northern Vermont University – Lyndon. In my junior year I took Pat Shine’s Exploring Race & Challenging Racism course and to be frank, I am eternally grateful because I needed the eye opening. The course ended up being one of the most meaningful and impactful courses that I have ever taken. I grew up in the Northeast Kingdom of VT. It does not get much more white than the NEK. That is where I attained a colorblind mindset. I never thought I was racist but simply not acknowledging someone for who they are and the intrinsic challenges they face simply because of their skin color is so counterproductive and helps aid the systemic racism people of color face on the daily. I know that racial justice education is imperative for all. It has been clear given the current climate of the U.S. that racism still exists and people will still work to downplay racial inequalities (i.e. “All Lives Matter” in response to the “Black Lives Matter” movement). The only way for us to move forward as an equitable society is to educate. People seeking post‐secondary education is becoming more and more the “norm” so it would be amazing to see racial justice coursework also become the “norm” for all.

Thank you,

Abram Hinman

42 VSCS Board of Trustees November 16, 2020

Testimony submitted to the VSC Board of Trustees – November 16, 2020

The Exploring Race and Challenging Racism course I took at NVU my senior year completely changed my worldview. It provided me with the information, tools, and skills needed not only to analyze and address the ways racism affects us on a structural level, but an individual level as well. This class empowered me to take a deeper look into my own life, my own core values and understanding of the world, and hold myself accountable when addressing the ways that race, racism, and white supremacy shaped those.

NVU promises a "community committed to diversity and inclusion". To keep this promise, NVU must educate all faculty on race, racism, and white supremacy and the ways in which NVU's very own community must hold itself accountable for harm it has caused, and commit to moving forward with a lens of racial justice and anti-racism. Furthermore, if NVU wishes to foster "intellectual, creative, and personal growth" of every student, it must make courses on race and racism a graduation requirement. Whether you are a Psych and Human Services student, Mountain Rec major, or Meteorology major, race, racism, and white supremacy will affect you. Diving into race, racism, and white supremacy fosters immense intellectual and personal growth, and is key to being a successful member of this society. It is life-long work. To not provide every student with the opportunity to do so robs them of immense personal growth, and robs the communities and careers they go into of the ability to grow.

I can attest to this personally. Shortly after graduating from NVU in 2019 I began working as a Prevention Advocate at Umbrella in St Johnsbury. My job is to go into schools and provide students with preventative education around issues of domestic and sexual violence. Thanks to Pat Shine's Exploring Race and Challenging Racism class I had taken my senior year, I am able to bring an anti-racism lens to every curriculum I teach. I am able to push students a little further in their understanding of the world and the vast experiences it brings to people based on certain aspects of their identity, such as their race. I am able to empower students to stand up to injustice when they see it. While I may speak directly to gender-based violence, thanks to R&R I am able to help students see the bigger picture, to understand systems of oppression as a whole and how they all work together to keep people oppressed. On an advocate level, I am able to see the ways the Domestic Violence/Sexual Violence movement has caused serious harm to BIPOC survivors, and I am able to hear from BIPOC survivors what the movement must do to continue forward with an anti-racism lens.

Anti-racism work is necessary for every individual, every job, every field, and every institution. NVU has a responsibility to its students, faculty, and community to engage in anti-racism work within its walls. This includes, but is not limited to, ensuring that all faculty and students are educated on race, racism, and white supremacy by making courses such as Exploring Race and Challenging Racism a requirement for faculty, and a graduation requirement for students.

Thank you.

Chelsea Corrow NVU-Lyndon Class of 2019