Mott Community College
Board of Trustees
Regular Meeting
Monday, November 23, 2015
Room 1301
Regional Technology Center
AGENDA
The mission of Mott Community College is to provide high quality,
accessible, and affordable educational opportunities and services that
cultivate student success and individual development and improve the
overall quality of life in a multicultural community.
176
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting, November 23, 2015
Volume 46
AGENDA
I.
CALL TO ORDER
II.
ADDITIONS TO THE AGENDA
III.
ADOPTION OF THE AGENDA
IV.
SPECIAL PRESENTATIONS
V.
COMMUNICATIONS
VI.
COMMENTS FROM THE PUBLIC
VII.
APPROVAL OF MINUTES
Approval of Regular Meeting Minutes of October 26, 2015
VIII.
INFORMATIONAL REPORTS
Acceptance of Standing Board Committee Reports:
1. Personnel (Joseph, Norwood, Turner)
2. Finance/Audit (Koegel, Freeman, Snell)
Other Reports:
1. 2015-2016 Board Goals & Objectives Ad Hoc Committee
(Turner, Croudy, Freeman)
IX.
UNFINISHED BUSINESS
X.
NEW BUSINESS
Consent Agenda:
1.54 Treasurer’s Report for October 2015
1.55 Receiving of Audit for FY 2014-2015
177-181
182
Individual Items:
No Individual Items This Month
XI.
ADMINISTRATIVE ITEMS
President’s Report
XII.
MISCELLANEOUS BUSINESS
Comments from Board Members
XIII.
EXECUTIVE SESSION
ADJOURNMENT
183
177
FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting, November 23, 2015
Volume 46
1.54
Treasurer’s Report for October 2015
This resolution is recommended.
Be it Resolved, That
The Charles Stewart Mott Community College Board of Trustees
Receives the financial report of the College for the month of October 2015 as presented
by the Administration.
Reviewed and Submitted By:
_____________________________________
Lawrence A. Gawthrop
Chief Financial Officer
Date: November 23, 2015
Board Policy Statement Reference: 3100 – Budget Adoption
General: The annual budget represents the programmatic direction and vision of the College. It is also
designed to meet both the legal requirements and needs of the College.
178
October Treasurer’s Report
Larry Gawthrop, CPA
Chief Financial Officer
November 23, 2015
Summary of Expenditures:
Month of October Spending:
General Fund:
All Other Funds:
Total:
$
$
$
7,436,912
12,333,176
19,770,088
Comments on General Fund Financial Statements:

Statement of Revenues, Expenditures and Changes in Net Assets
In summary, total revenues for the four months ended October 31, were
approximately $25.6 million, representing 34.4% of the annual budget, down slightly
from 34.5% a year ago. The most significant change was in the Tuition and fees
which is discussed further below. Expenditures for the two months ended were $21.7
million, which represents 29.2% of the annual budget, compared to $23.9 million and
31.7%, one year ago.
Revenues
Tuition and fees revenues are $15.6 million, $698 thousand less than last year and
45.1% of the budget, down from 45.5% a year ago. This is the impact of the decline
in summer and fall enrollments as projected.
Property taxes collected are roughly $7.1 million. The amount budgeted is $17.7
million, $225 thousand or 1.3% more than the 2014-2015 fiscal year and is based on
final taxable value figures provided by the Genesee County Equalization Department.
State appropriations payments for FY 2015-16 are paid in eleven monthly
installments starting in October. We received our first payment of $1.4 million as
expected. The total budgeted amount for the current fiscal year is $18.6 million or
roughly $150 thousand more than last year excluding the UAAL stabilization passthrough and renaissance zone reimbursement.
179
Expenditures
Salaries and Wages are roughly $10.6 million, or 28.5% of the annual budget,
compared to $37.5 million and 31% a year ago.
Fringe Benefits are at $4.8 million, or 24.6% of the budgeted amount compared to
$5.2 million and 26.8% of the budget one year ago.
Other Expenditures
A majority of the changes in the Other Expenses area for October is due in large part
to an decrease in the utilities and insurance attributable in part to energy savings,
decrease in operations and communications due to less bad debt write-offs, budget
reductions, and an increase in the transfer line related to making the transfers earlier
than the prior year.

Balance Sheet
Total Assets are at approximately $22 million, down $458 thousand from last
October. The largest differences are a $2.7 million increase in Cash and cash
equivalents, a $3.8 million decrease in Due from other funds, and a $451 thousand
increase in Accounts receivable. The Accounts receivable increase is due to the
college having additional wait times for IRS verification on accounts to process aid
and a reduction of the allowance for doubtful accounts
Due to/Due from Other Funds result from the College maintaining one checking
account for all of its funds; deposits and disbursements. This necessitates the shortterm “loaning” or “borrowing” between the funds throughout the year depending on
which funds revenue or expenditures are being deposited or paid out. Each month
the accounting department clears these “due to’s” and “due from’s” respectively
assigning the activity to the proper fund. However, significant activity can occur after
these transfers are completed, causing large variances when compared to the previous
period.
At roughly $11.5 million, Total Liabilities are down $3 million from the prior year.
The most significant changes were decreases in Accounts payable and Accrued
payroll and related liabilities. The accounts payable decrease was the result of a
reclassification of the amounts owed to students from financial aid (student A/R credit
balances) with the offset in the decrease in due from other funds. The decrease in the
accrued payroll and related liabilities was the result of having less payroll expenses than
the prior year.
Comments on spending from other funds:

Of the roughly $12.3 million expended in the other funds $824 thousand was
expended out of the Maintenance and Replacement and Bond funds, $183
thousand in depreciation and the remaining $11.3 million out of the Agency,
Scholarships, and Federal Grants, for grant activities and student scholarships.
180
Mott Community College
General Fund
Statement of Revenues, Expenditures and Changes in Net Assets - Modified Accrual
For the 4 Months Ended October 31, 2015
With Comparative Totals at October 31, 2014
FY 2015-2016
Budget
YTD Actuals
as of 10/31/15
Actual to
Actual $
Change
YTD Actuals
as of 10/31/14
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
$
34,598,876 $ 15,617,779 $
17,663,093
7,128,579
18,575,538
1,479,377
1,942,482
646,449
1,822,979
776,435
16,315,341
6,947,761
1,466,776
630,482
743,591
74,602,968
25,648,619
Salaries and wages
Fringe benefits
Contracted services
Materials and supplies
Facilities rent
Utilities and insurance
Operations/communications
Transfers out
Equipment and Improvements
37,191,013
19,415,434
5,390,893
2,266,365
174,625
2,802,800
5,221,634
1,659,704
230,500
Total expenditures
Total revenues
$
(697,562)
180,818
12,601
15,967
32,844
-4.28%
2.60%
0.86%
2.53%
4.42%
26,103,951
(455,332)
-1.74%
10,601,702
4,776,685
1,417,602
484,888
77,358
1,121,560
1,965,335
1,291,645
8,863
11,637,610
5,228,870
1,589,310
667,362
73,470
1,198,193
2,417,580
961,606
88,331
1,035,908
452,185
171,708
182,474
(3,888)
76,633
452,245
(330,039)
79,468
8.90%
8.65%
10.80%
27.34%
-5.29%
6.40%
18.71%
0.00%
89.97%
74,352,968
21,745,638
23,862,332
2,116,694
8.87%
250,000
3,902,981
2,241,619
1,661,362
74.11%
Expenditures:
Net increase/(decrease) in net
assets
181
Mott Community College
General Fund
Balance Sheet - Modified Accrual
October 31, 2015
With Comparative Totals at October 31, 2014
As of
October 31
2015
Assets
Current Assets
Cash and cash equivalents
Due from other funds
Accounts receivable - net of allowance
for uncollectible accounts ($4,750,196
for 2015 and $4,074,468 for 2014)
Inventories
Prepaid expenses and other assets
Total Assets
Liabilities and Net Assets
Current Liabilities
Accounts payable
Accrued payroll and related liabilities
Deposits held for others
Other accrued liabilities
$
12,004,390 $
7,056,088
2,498,696
74,972
371,219
As of
October 31
2014
9,345,390 $
10,850,142
2,047,917
48,024
172,568
$
Change
2,659,000
(3,794,054)
450,779
26,948
198,651
$
22,005,365 $
22,464,041 $
(458,676)
$
7,183,439 $
1,781,790
14,287
177,218
9,746,639 $
2,277,094
15,312
151,457
(2,563,200)
(495,304)
(1,025)
25,761
Total Current Liabilities
9,156,734
12,190,502
(3,033,768)
Accrued termination pay
2,338,309
2,428,043
(89,734)
Total Liabilities
11,495,043
14,618,545
(3,123,502)
Net Assets
Unrestricted
10,510,322
7,845,496
2,664,826
Total Net Assets
10,510,322
7,845,496
2,664,826
Total Liabilities and Net Assets
$
22,005,365 $
22,464,041 $
(458,676)
182
FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting, November 23, 2015
Volume 46
1.55
Receiving of Audit for Fiscal Year 2014-2015
Section 389.143 of the Community College Act of 1966 provides that the fiscal accounts of
the College shall be audited yearly by a certified public accountant in good standing and
licensed to practice in the state of Michigan. In compliance with this law, the annual audit of
Mott Community College’s financial records for the fiscal year ended June 30, 2015 as
performed by Rehmann Robson has now been completed.
Audited Financial Statements have been issued, along with the independent opinion of the
auditors that the statements present fairly, in all material respects, the financial position of
the College for the year ended June 30, 2015.
On the basis of the proceeding information, the following resolution is recommended.
Be it Resolved, That
The Charles Stewart Mott Community College Board of Trustees
Receives the 2014-2015 audit as issued by Rehmann Robson.
Reviewed and Submitted By:
_____________________________________
Lawrence A. Gawthrop
Chief Financial Officer
Date: November 23, 2015
Board Policy Statement Reference: 3431 - Audits
General: The purpose of this policy is to provide adequate authority for a strong, competent and vigilant
Finance/Audit Committee (‘the Committee’) to assist the Board in fulfilling its fiscal oversight responsibilities
relating to: the integrity of the College's financial statements, the independence and performance of external
and internal audit functions, the College's financial and accounting practices, the College's compliance with
legal and regulatory requirements, and standards of conduct. The Committee serves as the Board’s liaison with
any external auditors.
183
President’s Report
Regular Board of Trustees Meeting
November 23, 2015
1. Executive Summary
2. Introduction of New Hires
3. Upcoming Dates:
*****
November 26-27, 2015
College Closed for Thanksgiving
December 21, 2015
Board Retreat, 1:00 p.m., Community Foundation of Greater Flint
500 S. Saginaw Street, Flint
December 23, 2015 –
January 3, 2016
College Closed for Winter Break
January 18, 2016
College Closed For Martin Luther King, Jr. Day
January 20, 2016
Finance/Audit Committee, 12:00 p.m., CM1019
Personnel Committee, 4:00 p.m., CM1019
January 25, 2016
Board Dinner, 5:45 p.m., RTC1107
Committee of the Whole, 6:30 p.m., RTC1301
Board Meeting, 7:30 p.m., RTC1301