5P2 Resource Management

• Maintaining fiscal, physical, and technological infrastructures sufficient to support operations (5.A.1)
• Setting goals aligned with the institutional mission, resources, opportunities, and emerging needs (5.A.3) 
• Allocating and assigning resources to achieve organizational goals, while ensuring that educational purposes are not adversely affected (5.A.2)
• Tracking outcomes/measures utilizing appropriate tools

Maintaining Fiscal, Physical, and Technological Infrastructures Sufficient to Support Operations (5.A.1)

Southeast Technical Institute is a public institution operating under Sioux Falls School District 49-5. The funds used to operate Southeast Tech are restricted for post-secondary educational purposes and are separate and apart from the K-12 secondary system funds.  The Institute accounts for and oversees its financial operations within one governmental fund and three proprietary funds.  The primary educational operations of the Institute are included in the Post-Secondary Vocational special revenue (governmental) fund.  Business-like activities that support the educational functions of the Institute are reported separately in one of three enterprise (proprietary) funds - Child Care, Bookstore, and Corporate Education.

Southeast Tech works in a cooperative arrangement with the Sioux Falls School District to share resources/services that are common to both entities.  Included in these shared resources are the following:

1. Accounting - a. General Ledger; b. Accounts Payable processing; c. Payroll processing; d. Fixed Asset inventory and accounting
2. Purchasing - a. Bids, RFP’s preparation; b. Procurement (Credit) Card administration; c. Purchase Orders preparation and distribution; d. Warehouse
3. Treasury - a. Pooled Cash; b. Banking Services
4. Benefits - a. Insurance; b. Worker’s Compensation; c. Unemployment
5. Operations - a. Architectural/Engineering; b. Audit; c. Construction Management; d. Energy Management; e. General Counsel, f. Human Resources; g. Maintenance/Carpentry

This arrangement provides for the efficient use of limited financial resources and exposure to a broad range of professional staff, systems, and support resources.  The result is a significantly reduced impact to Southeast Tech’s financial resources as compared to the costs associated with developing, providing, and maintaining these resources independently. Southeast Tech compensates the Sioux Falls School District for the services that are jointly shared.

To assure the Institute maintains the overall infrastructure necessary to support Institutional operations, Southeast Tech relies on the following processes presented throughout this portfolio:

• Strategic and Annual planning (4P2)
• Budgeting (5P3)
• Capital Improvement/Capital Equipment planning (5P3)
• Technology planning (5P3)

Throughout these planning process, Southeast Tech considers all infrastructure needs, including fiscal, physical and technological. The Institute aligns all needs to the strategic goals, mission, and vision, as well as available resources and potential restraints, including Institutional risks. The robust Annual (4P2) and Budget (5P3) planning processes assure that these needs are vetted with both external and internal stakeholders.  Adjustments to the budget are made accordingly, even during budget implementation, and require the approval of the President and Board.

Southeast Tech maintains two five-year Capital plans: Capital Improvement (CIP) and Capital Equipment (CEP), maintained by the Business Office.  The CIP identifies emerging facility opportunities and the resources needed to develop and implement facility enhancements that will improve student learning and services. The Institute also utilizes a Facility Life Cycle Costing and Capital Outlay Operation/Maintenance Plan (FLCCCOMP) that identifies key components of the Institute’s infrastructure and projects the expected useful life of such components as well as future replacement costs. Similarly, the CEP identifies campus and program equipment needs. The plans are evaluated, prioritized, and integrated into the Institute’s five-year CIP/CEP plans on an annual basis upon the changing needs of instructional programs and supporting operations. Current year projects on the CIP/CEP are then incorporated into the Budgeting process (5P3) during the capture and development stages; however, adjustments occur at other times as needed. If, during the decision stage, adjustments need to be made due to revenue constraints, a discussion with the appropriate supervisor and employees is held and the project may be moved to a future plan year. Once the CIP/CEP plan has been approved, it is up to the immediate area and supervisor to assure that deployment is successful. Finally, once deployed, all required evaluations and reports are completed.

A dedicated funding source has been established through state administrative rule to provide funding for various campus repair and maintenance projects.  A portion of the Institute’s per credit fees is restricted to these projects.  Major facility construction or expansion is funded through the state Health and Educational Facility Authority (HEFA).  HEFA is authorized to issue revenue bonds to fund campus improvements.  Projects funded through the facility authority must be approved by the local Board of Education, HEFA Board, and the South Dakota Department of Education.  The state legislature determines system-wide debt ceilings that are revised periodically.  Student fees and state appropriations fund the debt service on the outstanding bond obligations. (5.A.1)

Setting Goals Aligned with the Institutional Mission, Resources, Opportunities, and Emerging Needs (5.A.3)

Southeast Tech’s mission and vision statements establish the basis from which resources are allocated. Budget guidelines are developed and adopted annually by Southeast Tech’s Council and Board and tie directly to the Institute’s strategic plan. Adopted budget guidelines for the FY18 budget:

1. Allocate resources consistent with the goals and objectives of the strategic plan;
2. Allocate resources to create a culture of continuous improvement and service excellence in support of Southeast Tech’s mission;
3. Optimize the quality of budget information available to decision makers;
4. Engage stakeholders at all levels and provide avenues for input;
5. Evaluate historical revenue performance and cost center expenditures;
6. Allocate resources efficiently, effectively, and equitably across the Institute;
7. Incentivize revenue innovation and new program development;
8. Maintain existing reserves and align requested expenditures with projected revenues.

With these guidelines in mind, the Institute used is Annual (4P2) and Budget (5P3) planning processes in the development of the FY18 budget.  Progress towards accomplishing strategic plan goals and objectives are reported to both the Council and Board a minimum of twice annually.  This reporting process assures that the Institute is focusing its resource allocations responsibly toward the achievement of the Institute’s goals. (5.A.3)

Allocating and Assigning Resources to Achieve Organizational Goals, While Ensuring that Educational Purposes are Not Adversely Affected (5.A.2)

Southeast Tech’s processes throughout this Portfolio assure that the allocation and assigning of resources occurs in support of the mission, vision and strategic plan. In addition, operating budgets are adopted on an annual basis and incorporate elements of Southeast Tech’s 5-Year Capital Plan, which assures that infrastructure improvements, repair and maintenance projects, and equipment additions and replacements are scheduled, reviewed, revised and updated annually. Furthermore, Southeast Tech assures that overall resources are in direct support of meeting the Institute’s educational purposes (5R2). (5.A.2)

Tracking Outcomes/Measures Utilizing Appropriate Tools

Southeast Tech measures Resource Management in the following ways;

• Balanced Budget: By state statute, the annual budget must balance at the end of each fiscal year; 
• Reserve Levels: A healthy reserve assures that the Institute has the necessary funds to continue operations during unforeseen circumstances;
• Educational Expenditures: With a mission to educate for employment, it is vital for the Institute to assure that the majority of funding relates to student learning.