FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
November 24, 2014
Volume
Treasurer’s Report for October 2014
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 October 2014 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Larry Gawthrop, CFO
Date: November 24, 2014
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.”
October’s Treasurer’s Report
Larry Gawthrop, CPA
Chief Financial Officer
November 24, 2014
Summary of Expenditures:
Month of September Spending:
General Fund:
All Other Funds:
Total:
$
$
$
8,350,423
13,339,615
21,690,038
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, was approximately
$25.4 million, representing 33.7% of the annual budget, the same budget percentage as
last year. The most significant changes are in the Tuition and fees and Property taxes
which are discussed further below. Expenditures for the four months ended were $23.9
million, which represents 31.6% of the annual budget, 4.7% higher than it was one year
ago, mainly due to the fact that there were three payrolls in this month.
Revenues
Tuition and fees revenues are $15.6 million and while it is roughly $171 thousand more
than last year, it is 1.4% lower than compared to initial projections. This is attributable to
the fall enrollment being less than originally budgeted. While there are still some mid and
late term classes starting, a budget amendment will likely be necessary in February.
Property taxes collected are roughly $6.9 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 first installment totaling just over 1.4 million.
Expenditures
Salaries and Wages are nearly $11.6 million, or 28.9% of the annual budget, 2.8% higher
than it was one year ago, compared to 26.1% of the budget one year ago. The increase is
attributable to October having three pays where this occurred in November of last year.
Prior to this month, our percentage of budget was ahead of last year due to running less
sections in response to the lower enrollment.
Fringe Benefits are at $5.2 million, or 29.7% of the budgeted amount compared to 24.7%
of the budget one year ago. Fringes are directly related to compensation and therefore the
reasoning for the increased budget percentage in Salaries and Wages as discussed
previously is the same for Fringe Benefits.
Other Expenditures
A majority of the changes in the Other Expenses area for October are 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 was an increase in the operations and communications line from an increase in the
monthly bad debt allowance. Finally, the transfers were made earlier in this year when
compared to the previous year.

Balance Sheet
Total Assets are at approximately $22.5 million, down $4 million from last October. The
largest differences are a $4.7 million decrease in Cash and cash equivalents, a $260
thousand increase in Due from other funds and a $1.1 million increase in Accounts
receivable. The Accounts receivable increase is due to an internal change in applying aid
to student’s accounts for late start and second half classes totaling approximately $520
thousand. This change was necessary to avoid confusion to students requesting refunds
early.
Due to/Due from Other Funds The College maintains 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 $14.6 million, Total Liabilities are approximately $181 thousand lower than
the prior year. The most significant changes were decreases in Accounts payable and
Other accrued liabilities and an increase in Accrued payroll and related liabilities. These
were the effects of timing differences in payments from the prior year, a timing difference
in the month that the one of the three payroll months fell and overall reduction in the
valuation we recorded for past property tax refund obligations.
Comments on spending from other funds:

Of the roughly $13.4 million expended in the other funds, just over $1 million was expended
out of the debt retirement funds for our scheduled interest and principal payments on our
outstanding bonds, $140 thousand was expended out of the Maintenance and
Replacement Funds for maintenance and improvements, $169 thousand from the Bond
funds, and the remaining $12.1 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 4 Months Ended October 31, 2014
With Comparative Totals at October 31, 2013
FY 2014-2015
Budget
YTD Actuals
as of 10/31/14
Actual to
Actual $
Change
YTD Actuals
as of 10/31/13
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
$
38,177,492 $ 15,631,338 $
17,338,093
6,947,761
15,736,817
1,466,776
1,815,763
630,482
2,362,191
743,593
15,459,841
7,077,250
1,440,024
588,588
745,368
75,430,356
25,419,950
25,311,071
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
11,637,610
5,228,870
1,589,310
667,362
73,470
1,198,193
2,417,580
961,606
88,331
10,412,222
4,589,631
1,359,751
535,328
70,591
1,173,774
2,003,474
78,241
(1,225,388)
(639,239)
(229,559)
(132,034)
(2,879)
(24,419)
(414,106)
(961,606)
(10,090)
-11.77%
-13.93%
-16.88%
-24.66%
-4.08%
-2.08%
-20.67%
#DIV/0!
-12.90%
Total expenditures
75,424,741
23,862,332
20,223,012
(3,639,320)
-18.00%
5,615
1,557,618
5,088,059
(3,530,441)
-69.39%
Total revenues
$
171,497
(129,489)
26,752
41,894
(1,775)
1.11%
-1.83%
1.86%
7.12%
-0.24%
108,879
0.43%
Expenditures:
Net increase/(decrease) in net
assets
Mott Community College
General Fund
Balance Sheet - Modified Accrual
October 31, 2014
With Comparative Totals at October 31, 2013
As of
October 31
2014
Assets
Current Assets
Cash and cash equivalents
Due from other funds
Accounts receivable - net of allowance
for uncollectible accounts ($4,074,468
for 2015 and $5,627,075 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
$
9,345,390 $
10,850,142
2,047,917
48,024
172,568
As of
October 31
2013
$
Change
14,034,976 $
11,111,124
(4,689,586)
(260,982)
918,740
44,069
359,829
1,129,177
3,955
(187,261)
$
22,464,041 $
26,468,738 $
(4,004,697)
$
9,746,637 $
2,277,094
15,312
151,457
10,153,471 $
1,579,111
14,561
540,536
(406,834)
697,983
751
(389,079)
Total Current Liabilities
12,190,500
12,287,679
(97,179)
Accrued termination pay
2,428,043
2,511,839
(83,796)
Total Liabilities
14,618,543
14,799,518
(180,975)
Net Assets
Unrestricted
7,845,498
11,669,220
(3,823,722)
Total Net Assets
7,845,498
11,669,220
(3,823,722)
26,468,738 $
(4,004,697)
Total Liabilities and Net Assets
$
22,464,041 $