College Closes FY 2026 $1.06 Million Over Budget; Audit May Reverse $825K

Lake Land College | August 17, 2026

Article Summary: Lake Land College trustees accepted unaudited June 2026 financial statements Monday, Aug. 17, 2026, showing the college finished fiscal year 2026 with expenditures exceeding revenues by $1,065,165 against a balanced board-approved budget. Roughly $825,000 in health insurance-related expense may be reversed through the audit process.

June 2026 Financial Statements Key Points:

• Excess revenues less total expenditures of negative $1,065,165 against a board-approved budget of $0.
• Revenue finished $548,940 favorable, but $405,096 of that was gift-in-kind, leaving roughly $143,000 of net favorable cash revenue.
• Total expenditures were $1,614,105 over the approved budget, driven largely by a $670,357 unfavorable interfund transfer and $825,000 in recognized health insurance expense.
• Figures are unaudited; the audit is in progress with a report expected October–November.

MATTOON — Lake Land College closed fiscal year 2026 roughly $1.06 million over its board-approved budget, according to unaudited financial statements accepted by trustees on Monday, Aug. 17, 2026 — though the college’s business office says a substantial portion of the overage may be reversed once auditors complete their work.

Vice President for Business Services John Woodruff presented the statements, which trustees accepted 8-0 on a motion by Trustee Larry Lilly, seconded by Trustee Chuck Deters.

In an Aug. 11 memo to President Dr. Josh Bullock, Woodruff wrote that the college “finished the year at $1,065,165, unfavorable to the budget and thus over the Board-approved budget.” He attributed the majority of the shortfall to two journal entries: interfund transfers that came in $670,357 unfavorable, and “the recognition of $825,000 of health insurance-related expenses.”

“At this time, we’re working with our auditors on the insurance entry in accordance with GAAP and prior auditor discussions regarding the recognition of this expense,” Woodruff wrote. At the meeting, he told trustees that approximately $825,000 of insurance-related expenditures may be reversed through the audit true-up process.

Revenue Mixed; Gift-in-Kind Inflates the Favorable Column

Year-to-date revenue in the General Fund — Funds 01 and 02 combined — finished at $38,939,783 against a budget of $38,390,843, a favorable variance of $548,940. But $405,096 of that figure was gift-in-kind revenue, which was not budgeted and is non-cash. Woodruff’s memo states the net result was approximately $143,000 favorable to budget.

Local sources were favorable at $12,966,135 against a $12,497,000 budget. State sources were mixed: the ICCB equalization grant finished $137,720 favorable at $6,172,950, while the ICCB credit hour grant came in $198,963 unfavorable at $4,058,650 and other state sources finished $488,426 unfavorable at $997,055. Tuition finished essentially on budget at $8,590,024, and fees were $154,848 favorable at $4,438,209.

Expenditures Over in Four of Six Programs

Total expenditures for daily operations reached $37,181,479 against a $36,812,429 budget, $369,050 unfavorable. By program, instruction finished $920,067 favorable and academic support $188,115 favorable, while student services ran $151,882 over, public service/continuing education $152,908 over, operations and maintenance $12,717 over, and institutional support $1,159,724 over.

Non-operational expenditures totaled $2,823,470 against a $1,578,415 budget. In addition to the transfer-out variance, scholarships, grants and waivers posted $722,149 against a zero budget line.

By category, salary and wages finished $408,230 under budget at $20,667,781, and employee benefits $328,619 under at $5,500,759 — both at exactly 100.00% of annual budget consumed on the summary table. Unfavorable categories included other expenditures at $1,030,462 over, general materials and supplies at $366,137 over, contractual services at $268,582 over, capital outlay at $108,230 over and fixed charges at $78,244 over.

Woodruff reminded trustees the college will not close fiscal year 2026 until the audit is complete in October, and said an update on the college’s other funds will come at the September board meeting.