LINN — At State Tech’s January Board of Regents meeting, Sikich LLP of St. Louis presented the FY 2025 audit, reporting an unmodified opinion and no material weaknesses in internal controls for the fiscal year ending on June 30, 2025.

Vice President of Finance Jenny Jacobs told Regents that she and Sikich CPA Victoria Daley worked very well together and finished the audit two weeks ahead of normal for the previous five-year span.

Daley clarified that the firm’s unmodified opinion means all the numbers are correct, the financial statements are fairly presented, and disclosures are fairly presented in accordance with established standards.

However, the audit is not designed to ensure internal controls, detect immaterial errors, or fraud. It is designed to obtain reasonable but not absolute assurance that the financial statements are free from material misstatement.

The audit report showed continued growth in assets and stable financial management, with no significant compliance issues identified.

According to figures provided by Sikich, current assets grew from $25,727,226 in 2024 to $29,316,206 last year. Non-current assets went from $91,918,747 to $116,693,541. Total assets were shown to have increased from $117,645,973 to $146,009,747.

Total current liabilities totaled $10,414,343, up from $9,804,773 in 2024, while non-current liabilities went from $66,260,751 to $71,209,895.

Based on these figures, State Tech’s net position jumped from $52,451,785 to $75,930,195.

Daley noted the college adopted GASB Statement No. 101 regarding compensated absences during the reporting period.

In other business, Jacobs presented the FY 2026 budget, which reflects a return to normalized funding levels following large capital appropriations in prior years.

“The balance sheet reflects fixed assets, accounts payable, and accounts receivable, but the expenses that we look at six months into the year are pretty much on a cash basis,” she explained, presenting a report as of Dec. 31, 2025. “Fixed assets were a big deal. During fiscal year ended June 30, 2025, we added $32 million worth of assets. A lot of that was construction in progress. Liabilities stayed pretty constant, except for unfunded pension liability, which continues to climb, and is being addressed through the higher employer contribution rate.”

Jacobs added that underspent funding and withholding from non-academic program budgets could result in the college recouping up to $1.6 million by the end of the fiscal year, which would be dedicated to reserves to offset construction costs. “We plan to spend negative at the end of the year, but to what stage or to what amount, we won’t really know until we see what stage construction is at on June 30, 2026,” she said.

For the six-month period ending on Dec. 31, 2025, State Tech’s unrestricted operating budget showed total revenues of $18,690,092 and expenses of $23,018,054, with a decrease in net position of $4,555,754.

The auxiliary fund had revenues of $5,964,810 and expenditures of $5,798,320 at the end of June 2025, and a net increase in net position of $166,490.

In the restricted aid fund, the college had revenues of $9,290,651 and expenses of $9,280,130, leaving a net position of $36,307 as of Dec. 31, 2025.

Total revenue across all funds was $43,722,637, with expenditures of $48,130,698. State Tech’s net position went from $75,930,195 to $71,522,134.

Total assets went from $125,211,842 at the end of 2024 to $149,812,122 a year later. Total liabilities increased from $73,935,433 to $78,289,988, year over year.

Jacobs told the board she believes several budgets will be flat or see an increase, including the Klebba Activity Center. “They are doing a great job over there,” she said. “For the first time in many, many years, I think the activity center is not only going to hit their budget, but exceed it; not by a huge amount, but it’s more than we’ve seen in a lot of years.”

Bookstore revenues look to be under budget since tuition and fees were fairly flat. “I think the toolkit sales kind of followed that trend, and we were down about 13 Snap-On kit sales, which equates to quite a bit of money,” Jacobs said.

Osage View’s revenue over budget should equal approximately $300,000, and Jacobs said the venue should hit $2 million this year. However, some offsetting expenses will likely bring down the bottom line, while housing and activity center expenses will stay well within budget.

Meal plans have fluctuated. “We saw a fairly decent decrease in meal plan sales in the fall, and that’s repeated itself in the spring,” Jacobs noted. “We’ve been down about 40 meal plans, which equates to a fairly large number, but there’s not a chance to offset in expenses. It’s not like we’re fixing less food for 40 fewer meal plans, so there’s not as big a decrease in expenses there. I think we’re going to generate another loss in dining.”

On the flip side, summer dining has been eliminated, which may generate savings.

Overall, Jacobs said, the college will spend reserves in FY 2026, and that amount will be known by the June board meeting.

Jacobs also presented information on the 2026-27 tuition and fee schedule, which includes an overall increase of approximately 4.7%.

The Board approved implementing a transcript fee and a tuition and fee increase not to exceed 6%, a portion of which will fund additional student laptop expenses. 

Jacobs also updated Regents on the Lenovo laptop project, which already deployed 474 units. “We’re working toward 100% of students receiving laptops when they start their programs, with full implementation expected to be in fall 2028.

“The next round of programs that will be rolled out will take us from just under 500 to over 800 laptops deployed to students,” said Jacobs. “We’re working with academic affairs on eliminating computer labs that can’t be updated, and maximizing equipment on hand to accommodate new buildings being placed in service.”

State Tech executed a contract with Lenovo to allow the school to complete warranty repairs on student laptops in-house. “I think that’ll be incredibly beneficial for us and students,” said Jacobs.