Mott Community College Board of Trustees Monday, March 28, 2016

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Mott Community College

Board of Trustees

Regular Meeting

Monday, March 28, 2016

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.

Board of Trustees

Charles Stewart Mott Community College

Regular Meeting, March 28, 2016

Volume 46

AGENDA

I.

CALL TO ORDER

II.

ADDITIONS TO THE AGENDA

III.

ADOPTION OF THE AGENDA

IV.

SPECIAL PRESENTATIONS

College Credit Rating and Bond Update

- Larry Gawthrop, Chief Financial Officer

Outstanding Student Award Winners

- Dr. Amy Fugate, Vice President, Academic Affairs

V. COMMUNICATIONS

VI.

VII.

VIII.

IX.

X.

COMMENTS FROM THE PUBLIC

APPROVAL OF MINUTES

Approval of Regular Meeting Minutes of February 22, 2016

INFORMATIONAL REPORTS

Acceptance of Standing Board Committee Reports:

1.

Personnel (Joseph, Norwood, Turner)

2.

Finance/Audit (Koegel, Freeman, Snell)

UNFINISHED BUSINESS

XI.

XII.

XIII.

NEW BUSINESS

Consent Agenda:

1.64 Treasurer’s Report for February 2016

Individual Items:

1.65 Strategic Branding Development Initiative – Purchase Award

ADMINISTRATIVE ITEMS

President’s Report

MISCELLANEOUS BUSINESS

Comments from Board Members

EXECUTIVE SESSION

ADJOURNMENT

248

225-225g

249-253

254-255

256

249

FOR ACTION

Board of Trustees

Charles Stewart Mott Community College

Regular Meeting, March 28, 2016

Volume 46

1.64 Treasurer’s Report for February 2016

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 February 2016 as presented by the Administration.

Reviewed and Submitted By:

_____________________________________

Lawrence A. Gawthrop

Chief Financial Officer

Date: March 28, 2016

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.

250

February Treasurer’s Report

Larry Gawthrop, CPA

Chief Financial Officer

March 28, 2016

Summary of Expenditures:

Month of February Spending:

General Fund:

All Other Funds:

Total:

$

$

$

5,206,887

2,527,282

7,734,169

Comments on General Fund Financial Statements:

 Statement of Revenues, Expenditures and Changes in Net Assets

In summary, total revenues for the eight months ended February 29, were approximately $54.1 million, representing 72.9% of the annual budget, down from

73.8% a year ago. The most significant change was in the Tuition and fees which is discussed further below. Expenditures for the eight months ended were $43.3 million, which represents 58.5% of the annual budget, compared to $46.3 million and 61.5%, one year ago.

Revenues

Tuition and fees revenues are $29.0 million, $2.5 million less than last year and 86% of the budget, down from 87.7% a year ago. This is due to the decline in enrollment.

Property taxes collected are roughly $13.9 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 fifth payment of $1.5 million as expected. The total budgeted amount for the current fiscal year is $16.0 million or

$218 thousand more than last year excluding the UAAL stabilization pass-through.

251

Expenditures

Salaries and Wages are roughly $21.7 million, or 59.2% of the annual budget, compared to $23.3 million and 62% a year ago.

Fringe Benefits are at $9.9 million, or 61.5% of the budgeted amount compared to

$10.5 million and 62.2% of the budget one year ago.

Other Expenditures

A majority of the variances in the Other Expenditure area for February continues to be a result of decreases in the utilities and insurance expenses, attributable in part to energy savings, a decrease in operations and communications due to less bad debt write-offs, and a decrease in contracted services due to budgeted reductions offset by the payments to Cenergistics for the energy rebate payments on our energy savings.

 Balance Sheet

Total Assets are at approximately $21.6 million, up $2 million from last February.

The largest differences are a $2.6 million increase in Cash and cash equivalents , a

$423 thousand increase in Due from/(to) other funds, and an $83 thousand increase in Accounts receivable.

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 $4.2 million, Total Liabilities are down $342 thousand from the prior year. The most significant changes were increases in Accounts payable and a decrease in the Accrued payroll and related liabilities.

The accounts payable increase was due to a timing difference in the vouchering of bills and recording one additional day of payables due to leap year. 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 $2.5 million expended in the other funds $205 thousand was expended out of the Maintenance and Replacement and Bond funds, $575 thousand in depreciation and the remaining $1.7 million out of the Agency, Scholarships, and

Federal Grants, for grant activities and student scholarships.

Mott Community College

General Fund

Statement of Revenues, Expenditures and Changes in Net Assets - Modified Accrual

For the 8 Months Ended February 29, 2016

With Comparative Totals at February 28, 2015

252

FY 2015-2016

Budget

YTD Actuals as of 02/29/16

YTD Actuals as of 02/28/15

Actual to

Actual $

Change

Actual to

Actual %

Change

Revenues:

Tuition and fees

Property taxes

State appropriations

State appropriations -

UAAL Passthrough

Ballenger trust

Grants and other

Total revenues

$ 33,665,891

17,663,093

16,013,955

$ 28,952,068

13,840,741

7,626,498

$ 31,439,277

13,487,784

7,495,058

3,148,057

1,942,482

1,750,196

1,144,747

1,292,899

1,198,574

950,444

1,260,965

1,102,005

74,183,674 54,055,527 55,735,533

$ (2,487,209)

352,957

131,440

194,303

31,934

96,569

(1,680,006)

Expenditures:

Salaries and wages

Fringe benefits

Fringe benefits -

UAAL Passthrough

Contracted services

Materials and supplies

Facilities rent

Utilities and insurance

Operations/communications

Transfers out

Equipment and Improvements

36,583,235

16,132,571

21,664,295

9,914,091

23,281,273

10,506,643

3,148,057

5,968,980

2,386,496

204,625

2,663,817

5,063,517

1,645,246

137,130

1,144,747

2,962,360

1,113,309

139,723

1,892,426

2,904,684

1,450,744

68,356

950,444

3,275,393

1,314,273

134,611

2,015,771

3,502,249

1,165,878

172,941

Total expenditures 73,933,674 43,254,735 46,319,476

Net increase/(decrease) in net assets 250,000 10,800,792 9,416,057

1,616,978

592,552

(194,303)

313,033

200,964

(5,112)

123,345

597,565

(284,866)

104,585

3,064,741

1,384,735

6.95%

5.64%

-20.44%

9.56%

15.29%

-3.80%

6.12%

17.06%

0.00%

60.47%

6.62%

-7.91%

2.62%

1.75%

20.44%

2.53%

8.76%

-3.01%

14.71%

253

Mott Community College

General Fund

Balance Sheet - Modified Accrual

February 29, 2016

With Comparative Totals at February 29, 2015

As of

February 29

2016

As of

February 28

2015

$

Change

Assets

Current Assets

Cash and cash equivalents

Due from other funds

Accounts receivable - net of allowance for uncollectible accounts ($4,647,823 for 2016 and $4,212,625 for 2015)

Inventories

Prepaid expenses and other assets

Total Assets

$ 17,638,337

(658,873)

$ 15,019,333

(235,501)

$ 2,619,004

(423,372)

4,436,830

74,972

$

74,203

21,565,469

4,353,743

48,024

$

334,201

19,519,800 $

83,087

26,948

(259,998)

2,045,669

Liabilities and Net Assets

Current Liabilities

Accounts payable

Accrued payroll and related liabilities

Deposits held for others

Other accrued liabilities

Total Current Liabilities

Accrued termination pay

Total Liabilities

Net Assets

Unrestricted

Total Net Assets

Total Liabilities and Net Assets

$ 762,770

936,435

13,882

177,218

$ 278,476

1,700,666

14,997

151,457

$ 484,294

(764,231)

(1,115)

25,761

1,890,305 2,145,596 (255,291)

2,267,031 2,354,277 (87,246)

4,157,336 4,499,873 (342,537)

17,408,133 15,019,927 2,388,206

17,408,133 15,019,927 2,388,206

$ 21,565,469 $ 19,519,800 $ 2,045,669

254

FOR ACTION

Board of Trustees

Charles Stewart Mott Community College

Regular Meeting, March 28, 2016

Volume 46

1.65 Strategic Branding Development Initiative – Purchase Award

Mott Community College (MCC) is seeking professional services to develop a distinct brand platform to improve the college’s competitive position in attracting and retaining students and to secure support from new and existing stakeholders. The selected agency will conduct new and review existing market research, develop a distinctive brand platform with guidelines for communication, develop recommendations for a sustainable brand marketing campaign that identifies short- and long-term strategies to enhance the image of the college, and develop successful measurement strategies and metrics to track the effectiveness of the campaign. The agency will work closely with the Office of Institutional Advancement to create and implement the brand campaign both internally and externally.

A request for proposals was posted to www.bid4michigan.com on December 11, 2015.

Fifteen (15) complete proposals were received on January 19, 2016.

Following evaluation of the proposals and on the basis of the preceding information, the following resolution is recommended.

Be it Resolved, That

The Charles Stewart Mott Community College Board of Trustees

Authorizes the Administration to award the proposal for the Strategic Branding

Development Initiative to Blufish Consulting, LLC, 115 West Michigan Avenue,

Marshall, Michigan 49068 in the amount of $74,750 [Seventy-four thousand seven hundred fifty dollars and zero cents].

Reviewed and Submitted by:

_____________________________________

Dale K. Weighill

Associate Vice President, Institutional Advancement

Date: March 28, 2016

Board Policy Statement Reference: 4410 – Purchasing

General: Purchases should be based on quality and price. Qualified vendors should have the opportunity to bid on College purchases. This policy is established to ensure that sound business practices are followed in the purchase of furnishings, equipment, materials, goods and supplies.

BluFish Consulting, LLC

115 W Michigan Ave

Marshall, MI 49068

Strategic Branding Development Initiative

Bid Tabulation

Vendor Bid

$ 74,750

$ 82,405 Fourth Quadrant aka Up & Up

411 University Ridge #225

Greenville, SC 29601

Brand IQ Creative

600 Grant St Ste 660

Pittsburgh, PA 15219

Clarus Corporation

6354 Wayne Rd

Alliance, NE 69301

$ 99,475

$ 99,641

255

256

President’s Report

Regular Board of Trustees Meeting

March 28, 2016

1. Executive Summary

2. Introduction of New Hires

3. Upcoming Dates:

April 9-12, 2016

*****

American Association of Community Colleges Annual

Convention, Hyatt Regency, Chicago

April 13-15, 2016

April 14, 2016

April 20, 2016

April 21, 2016

All-Employee Conversation Sessions, 9-11 a.m., RTC Auditorium

Annual Employee Appreciation Event, 2 p.m., Event Center

Finance/Audit Committee, 12 noon, CM1019

Personnel Committee, 4 p.m., CM1019

Community College Day at the Capitol, 11 a.m., State Capitol

Building

April 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

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