[1] As an advisory committee to the Board of Trustees, the ACFB shall limit its attention to systemic and major issues that are appropriate for Board consideration under the ACC policy-governance model. Suggestions that do not meet this criterion will not be part of ACFB deliberations, although individual ACFB members may informally forward them to members of the administration and/or the internal budget committee.
[2] The primary focus of the committee will be providing recommendations to improve ACC's planning, budgeting, and reporting systems. When specific issues are considered, it will be with close attention to their connections to other issues and to college information processes. The committee will not recommend specific budget amounts.
[3] The
committee will keep in mind that it is a component in a larger governance
system, and that the issues it examines will be debated and decided by
others. ACFB recommendations shall thus include a clear written rationale
and an examination of plausible alternatives. When a consensus is not
reached for a recommendation, each position with significant support shall be
explained in the report to the Board.
B. Intended ACFB Work Products
[1] A list of significant opportunities for improvement of the financial condition of ACC and/or its students consistent with the values declared in Board policy (such as student accessibility and fair compensation of employees). The financial recommendations listed in the Texas Performance Review report will be examined for possible inclusion in this list.
[2] Board-policy recommendations for financial and budget-related reports. A central goal will be appropriate adaptation of operational financial reports to reflect the reporting approach of GASB34/35 (recently mandated for colleges by the Government Accounting Standards Board), in which current and capital costs are separated using methods similar to those of business accounting. Another goal is addition of reports that will indicate the net economic impact of different activities.
[3] Board-policy recommendations for the budget process. These may suggest refinement or replacement of the current system of policy-mandated budget set-asides. The policies for budgeting tuition and reserve levels will also be examined.
[4] A report on places where ACC budget/planning processes fall short of standard good practice, of current Board policy (e.g., the mandate to budget on an objective basis), or of the recommended improvements in Board policy. An examination of current processes will be an essential part of determination of appropriate Board policy language, and perceived weaknesses in current ACC methods will be identified. However, the ACFB will not recommend specific internal budget processes for the college, since this is not a Board responsibility.
[5] Guidelines for a coherent economic model of college operations. The actual development of the model (in stages) will be the work of the college administration, but the committee will enumerate factors it thinks should be included, and may later critique each stage of the effort. Such a model is seen as necessary to provide a basis for coherent planning and for budgeting based on objective factors, both already mandated by Board policy.