OTTUMWA — A state audit report on Indian Hills Community College's finances showed another drop in revenues for the 2020 fiscal year.
Revenues declined by 5.8% in fiscal year 2020 from the prior year. The drop was larger than the 1.1% decrease noted in last year's audit report. The revenue drops are "due primarily to the decrease in enrollment," auditors said.
Comparing operating revenues and operating expenses, the college shows a loss, but that's not the full picture. In fact, that's what is common, because state appropriations, Pell grants and property tax revenues are "non-operating revenues."
The college had about $58 million in total revenues, with about $26 million from operating revenues and nearly $32 million in non-operating revenues. Indian Hills had about $55.8 million in operating expenses between July 1, 2019, and June 30, 2020. That figure is about $1.7 million less than the prior year, and allowed the college to increase it's net position by about $2.1 million.
Auditors pointed out that the college's operations have not been significantly impacted by COVID-19, but that long-term impacts to the college as well as local, regional and national economies remains uncertain. There were declines in auxiliary revenues due to a campus-wide shutdown that impacted food service and bookstore operations.
In the 2020 fiscal year, the top sources of revenue for the college were $19.1 million from legislative appropriations, $10.8 million from tuitions and fees, and $6 million from property taxes.
The audit noted no instances of noncompliance or expenditures that didn't align with public purpose requirements. The college was again classified as a "low-risk auditee."