OTTUMWA — Revenues for Indian Hills Community College dropped a little more than 2 percent in the 2019 fiscal year, according to an audit report released by the State Auditor’s Office.
The report said the decrease was due “primarily to the decrease in enrollment.” The school also saw a 1.1 percent decrease in expenses. That wasn’t quite enough to offset a budget deficit, which the auditor’s office said is common.
“Generally, a public, state- supported college, such as Indian hills Community College, will report an operating loss as the financial reporting model classifies state appropriations, Pell grants and property tax as non-operating revenues,” the report said.
Despite those changes, Indian Hills saw a net gain in its financial position. The report said the gain of $866,000 was created by growth in the self-funded health insurance program.
The report praised Indian Hills and said it “managed its financial position carefully” during the year, and noted that the school is closely tied to the state’s appropriations. The single biggest source of revenue for Indian Hills was the $18.4 million given by the Iowa Legislature.
The tilt toward state money is not as sharp as it once was, though. Tuition and fees made up $13.18 million in revenue, a figure far closer to the state receipts than has historically been the case.
The report also noted a previously conducted audit found Indian Hills to be a “low-risk auditee.” It found no spending that appeared to violate the public purpose requirements the school operates under.