FOR ACTION Board of Trustees Charles Stewart Mott Community College

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FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
February 23, 2015
Volume
Treasurer’s Report for January 2015
This resolution is recommended.
Be it Resolved, that
The Charles Stewart Mott Community College Board of Trustees
Accepts the financial report of the College for the month of January 2015 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Larry Gawthrop, CFO
Date: February 23, 2015
Board Policy Statement Reference:
“3100 Budget Adoption: General: The Board recognizes that its 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.
1. The Finance Committee shall receive and review budget reports on a monthly basis.”
January’s Treasurer’s Report
Larry Gawthrop, CPA
Chief Financial Officer
February 23, 2015
Summary of Expenditures:
Month of January’s Spending:
General Fund:
All Other Funds:
Total:
$
$
$
5,541,388
8,887,112
14,428,500
Comments on General Fund Financial Statements:

Statement of Revenues, Expenditures and Changes in Net Assets
In summary, total revenues for the seven months ended January 31, was approximately
$50.7 million, representing 67.2% of the annual budget, compared to 68% in the prior
year. The most significant changes are in the Tuition and fees State appropriations, and
Property taxes which are discussed further below. Expenditures for the seven months
ended were $40.8 million, which represents 54.1% of the annual budget, 1% higher than it
was one year ago, due in large part to the combination of the UAAL payment to ORS
offset by savings in Salaries and wages.
Revenues
Tuition and fees revenues are $30.6 million $240 thousand less than last year and 4.2%
lower than the original budget at this time. This is attributable to the fall enrollment being
less than originally budgeted. The amended budget is reflects the new estimate for the
fiscal year.
Property taxes collected are roughly $11.2 million. The amount budgeted is $17.3
million, the same as it was in the 2013-2014 fiscal year and is based on final taxable value
figures provided by the Genesee County Equalization Department.
State appropriations payments for FY 2014-15 are paid in eleven monthly installments
starting with October. The total budgeted amount for the current fiscal year is $15.7
million or roughly $400 thousand (2.7%) more than last year excluding the UAAL
stabilization pass-through. We received our January payment as expected.
Expenditures
Salaries and Wages are nearly $20.3 million, or 50.4% of the annual budget, 2.5% lower
than it was one year ago, when we were at 52.9% of the budget. The decrease is
attributable to the lower enrollment, continued holds on vacant positions and transfer of
Mott temporary workers to a temporary agency on January 1.
Fringe Benefits are at $10 million, or 57% of the budgeted amount compared to 50.6% of
the budget one year ago. The increase in this line item is directly attributed to the UAAL
stabilization payment received by the State if Michigan that is directly remitted to the
Office of Retirement Services (ORS) for the unfunded portion of the retirement obligation.
Other Expenditures
A majority of the changes in the Other Expenses area for January is due in large part to
timing differences of invoices from receipt and vouchering of invoices from last year as
well as a change in the recognition of prepays from monthly to once a year. In addition,
there continues to be an increase in the contracted services line item in the area of
maintenance and ITS.

Balance Sheet
Total Assets are at approximately $22.9 million, down $1.7 million from last January.
The largest differences are a $3.7 million increase in Cash and cash equivalents, a $5.5
million decrease in Due from other funds and a $151 thousand increase in Accounts
receivable. The Accounts receivable increase is due to the reduction of the allowance for
doubtful accounts due to better collection and student accounts receivable management.
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 short-term “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 $6.7 million, Total Liabilities are down $234 thousand from the prior year.
The most significant changes were an increase in Accounts payable and a decrease in
Other accrued liabilities and Accrued termination pay. The Accounts payable was due to
the timing of vendor payments and increase in the employer health insurance expenses and
the other accrued liabilities were due to an overall reduction in the valuation we recorded
for past property tax refund obligations and reduction in the actuarial valuation of the
college liability for termination benefits paid upon leaving employment at MCC.
Comments on spending from other funds:

Of the roughly $8.9 million expended in the other funds, $204 thousand was expended out of
the Maintenance and Replacement funds , $378 thousand out of the Bond funds, $16
thousand out of the Lapeer Capital Funds and the remaining $8.3 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 7 Months Ended January 31, 2015
With Comparative Totals at January 31, 2014
FY 2014-2015
Budget
YTD Actuals
as of 1/31/15
Actual to
Actual $
Change
YTD Actuals
as of 1/31/14
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
$
38,177,492 $ 30,550,620 $
17,338,093
11,245,639
15,736,817
6,781,882
1,815,763
1,103,344
2,362,191
1,045,293
30,790,808
12,104,556
6,134,241
1,030,029
978,553
75,430,356
50,726,778
Salaries and wages
Fringe benefits
Contracted services
Materials and supplies
Facilities rent
Utilities and insurance
Operations/communications
Transfers out
Equipment and Improvements
40,310,719
17,608,243
5,131,756
2,126,599
205,400
2,938,000
5,284,424
1,453,100
366,500
Total expenditures
Total revenues
$
(240,188)
(858,917)
647,641
73,315
66,740
-0.78%
-7.10%
10.56%
7.12%
6.82%
51,038,187
(311,409)
-0.61%
20,326,716
10,032,361
2,925,750
1,153,958
118,728
1,808,093
3,124,261
1,165,878
162,715
21,154,638
9,410,694
2,452,186
1,038,391
111,473
1,734,160
3,446,304
473,253
123,640
827,922
(621,667)
(473,564)
(115,567)
(7,255)
(73,933)
322,043
(692,625)
(39,075)
3.91%
-6.61%
-19.31%
-11.13%
-6.51%
-4.26%
9.34%
-146.35%
-31.60%
75,424,741
40,818,460
39,944,739
(873,721)
-2.19%
5,615
9,908,318
11,093,448
(1,185,130)
-10.68%
Expenditures:
Net increase/(decrease) in net
assets
Mott Community College
General Fund
Balance Sheet - Modified Accrual
January 31, 2015
With Comparative Totals at January 31, 2014
As of
January 31
2015
Assets
Current Assets
Cash and cash equivalents
Due from other funds
Accounts receivable - net of allowance
for uncollectible accounts ($4,212,625
for 2015 and $4,969,841 for 2014)
Inventories
Prepaid expenses and other assets
Total Assets
$
18,378,125 $
(265,205)
4,516,164
48,024
233,021
As of
January 31
2014
14,634,520 $
5,281,268
4,365,196
44,069
298,271
$
Change
3,743,605
(5,546,473)
150,968
3,955
(65,250)
$
22,910,129 $
24,623,324 $
(1,713,195)
$
2,481,395 $
1,673,581
14,912
151,457
2,282,662 $
1,641,693
15,576
540,536
198,733
31,888
(664)
(389,079)
4,321,345
4,480,467
(159,122)
Accrued termination pay
2,392,598
2,468,249
(75,651)
Total Liabilities
6,713,943
6,948,716
(234,773)
Net Assets
Unrestricted
16,196,191
17,674,608
(1,478,417)
Total Net Assets
16,196,191
17,674,608
(1,478,417)
22,910,134 $
24,623,324 $
(1,713,190)
Liabilities and Net Assets
Current Liabilities
Accounts payable
Accrued payroll and related liabilities
Deposits held for others
Other accrued liabilities
Total Current Liabilities
Total Liabilities and Net Assets
$
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