Lee College accounting executive resigns, search on for new position

Regent Mark Hall said the new position would act as head accountant, and the position would need to be filled as quickly as possible to help the school implement changes to its budgeting process.

“We need a person here on the ground that is here full time and who can implement and oversee these changes as well as implement forecasting models,” Hall said. “We are talking a complete change in our financial system reporting and budgeting.”

Vice President of Finance and Administration Steve Evans remains on administrative leave in wake of a financial mess at the college, in which it was discovered the school’s cash reserves had fallen short some $5 million since 2013. 

On Tuesday, Dr. Ben Ferrell, a former chief financial officer from Austin Community College, outlined a new reporting system to help Lee College keep up to date with their financial situation.

According to Regent Hall, it is a financial statement given to the board that tracks what happens throughout the year, and projects through the end of the year.

“The tracking is updated monthly,” Hall said. “There is a continuous update going on. There are some variables, but his reporting format shows you immediately what is happening.”

Under the proposed system, the school will be able to build up reserves while regularly monitoring the budget, and different variables that may impact that budgeting process, Hall said.

“It is not just a question of reserves, but also of budgeting correctly year after year,” he said. “It also looks at things that affect our budget, like a student population increase or decrease. We will see that immediately and can adjust accordingly. It is not only a tool for the board but also for management.”

“This (new system) directly addresses the problems we’ve had and prevent this from happening in the future,” Hall added. 

Regents in attendance seemed to acknowledge the need for such a reporting system, with Gilbert Santana remarking on its ease of understanding, and Gina Guillory calling the new system an overdue measure.

“What Dr. Ferrell presented was standard operating procedure,” Guillory said. “Lee College will start to do what is standard for what most businesses are doing already.” 

In response to the budgeting shortfall, the college last year hired auditing firm Weaver to look into the school’s processes. In two separate reports looking into the college’s cash flow and net position, the firm said the college’s forecasting abilities and budgeting process were flawed.

As part of a shadow budgeting process implemented in November, the college’s cabinet is reviewing each department’s budget for areas of responsibility, and looking at monthly budget status reports. Brown will then evaluate the cabinet’s monthly summary budget and analyze the college-wide progress of income and expenses.

Brown on Tuesday reported that the college is in good financial shape thanks to tax property revenue the college receives, and said the college has cash on hand totaling $23 million. The college paid back a $4 million loan in November, which it took out at Weaver’s recommendation to ensure it did not fall short of bill payments in the first quarter of the fiscal year.

Hall added that he was “pleased and anxious” to see a final reporting system implemented.

“I think it will be a great aid to the college,” Hall said. “This addresses the needs we have, and it will take a little bit of time to get things back in shape, but we will be informed.”