FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
January 28, 2013
Volume 45
Treasurer’s Report for December 2012
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 December 2012 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Larry Gawthrop, CFO
Date: January 28, 2013
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.”
December Treasurer’s Report
Larry Gawthrop, CPA
Chief Financial Officer
January 28, 2013
Summary of Expenditures:
Month of December Spending:
General Fund:
All Other Funds:
Total:
$
$
$
5,168,221
2,774,232
7,942,453
Comments on General Fund Financial Statements:
•
Statement of Revenues, Expenditures and Changes in Net Assets
In summary, total revenues for the six months ended December 31, is roughly $41.8
million, representing 54.4% of the annual budget. This is 4.4% lower than last year at this
time, when we had recognized 58.8% of budgeted revenues. The most significant changes
continue to be the Tuition and fees, Property Taxes and State Appropriations categories
which are discussed further below. Expenditures year-to-date are at $33.2 million dollars,
which represents 43.2% of the annual budget compared to 43.4% one year ago.
Revenues
Tuition and fee revenues are $28.3 million for the six months ended, compared to $30.7
million one year ago. The enrollment decrease is higher than initially anticipated and
budgeted in June and will be amended in February.
Property taxes collected are $7.6 million through December, which is $968 thousand
lower than it was one year ago. The amount budgeted is $17.7 million, down $1.3 million
from last year’s $19 million and is based on final taxable value figures provided by the
Genesee County Equalization Department.
State appropriations payments for FY2012-13 are paid in monthly installments starting
with October. We received our third $1.4 million payment of eleven as expected. The
total budgeted amount for the current fiscal year is $15.0 million or approximately $637
thousand (4.4%) more than last year.
Grants and other includes the Foundation for Mott Community College unrestricted
contribution which was received in August of the previous year and the 1st of two
installments was received in September with the balance to be paid in January.
Expenditures
Salaries and Wages are at $18.3 million, or 45.1% of the annual budget, down from
46.6% one year ago. This is due in large part to less course section offerings and less P/T
and Overload salaries compared to the previous year.
Fringe Benefits are at $7.8 million, a decrease of approximately $311 thousand from the
previous year. This is due in part to the fewer wages from the offering less sections and
the impact of P.A. 152.
Other Expenditures
The changes in the Other Expenses area continue to be increases in Datatel, Oracle, and
Adobe licensing costs, increases in water and electric bills, timing difference in
scholarship awards -Transfers as well as a reduction this month in the Contracted
services line item due to a reduction in Workforce Development training.
Balance Sheet
Total Assets are at approximately $21.3 million, down $5.2 million from last December.
The largest differences are a $4.8 million decrease in Cash and Cash Equivalents, $1.4
million decrease in Accounts Receivables. This Accounts Receivable decrease is due to
the allowance being roughly $2.1 million higher than it was last year. Generally, the
allowance account is not adjusted until year-end, however, this year since the A/R balance
has decreased significantly, we are in the process of reconciling and adjusting it for the
February budget amendment.
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 $6.3 million, Total Liabilities are down approximately $1.4 million from last
December’s balance. The most significant changes were in the areas of Accounts payable
– timing of check runs, Accrued payroll and related liabilities- timing difference in the
payment of the health insurance payments from year to year, Other Accrued Liabilities
which is the recording of the potential financial impact of current property tax appeals as
calculated by the Genesee County Equalization Department, and the increase in Accrued
termination pay from the employee retirements.
Comments on spending from other funds:
•
Of the approximately $8 million spent in the other funds, $149 thousand was expended out
of the Maintenance and Replacement Funds for maintenance and improvements, $509
thousand out of the Reserve Funds for the down payment and closing costs associated with
the Lapeer purchase and the remaining $2.1 million balance 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
For the 6 Months Ended December 31, 2012
With Comparative Totals at December 31, 2011
FY 2012-2013
Budget
YTD Actuals
as of 12/31/12
YTD Actuals
as of 12/31/11
Actual to
Actual $
Change
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
40,655,482 $ 28,288,605 $
17,652,500
7,618,350
15,021,410
4,215,087
1,600,000
832,383
1,916,500
814,574
30,671,412
8,586,792
3,961,743
668,432
851,066
$ (2,382,807)
(968,442)
253,344
163,951
(36,492)
-7.77%
-11.28%
6.39%
24.53%
-4.29%
76,845,892
41,768,999
44,739,445
(2,970,446)
-6.64%
Salaries and wages
Fringe benefits
Contracted services
Materials and supplies
Facilities rent
Utilities and insurance
Operations/communications
Transfers
Equipment and Improvements
40,566,402
17,021,414
6,267,174
2,560,069
245,350
2,951,300
4,858,563
1,871,200
499,300
18,290,817
7,789,139
2,196,210
858,223
152,725
1,520,513
1,949,959
323,592
118,143
18,396,172
8,100,106
2,488,827
873,796
140,708
1,368,847
1,784,665
142,094
49,067
(105,355)
(310,967)
(292,617)
(15,573)
12,017
151,666
165,294
181,498
69,076
-0.57%
-3.84%
-11.76%
-1.78%
8.54%
11.08%
9.26%
127.73%
140.78%
Total expenditures
76,840,772
33,199,321
33,344,282
144,961
5,120
8,569,678
11,395,163
Total revenues
$
Expenditures:
Net increase/(decrease) in net
assets
(2,825,485)
0.43%
-24.80%
Mott Community College
General Fund
Balance Sheet
December 31, 2012
With Comparative Totals at December 31, 2011
As of
December 31
2012
Assets
Current Assets
Cash and cash equivalents
Short term investments
Due from (to) other funds
Accounts receivable - net of allowance
for uncollectible accounts ($5,000,166
for 2013 and $2,854,580 for 2012)
Inventories
Prepaid expenses and other assets
(4,803,490)
1,043,412
13,393,105
28,730
172,515
14,840,817
64,740
84,092
(1,447,712)
(36,010)
88,423
$
21,352,398 $
26,507,775 $
(5,155,377)
$
1,216,265 $
1,719,027
8,444
582,579
2,230,131 $
2,337,130
48,499
521,023
(1,013,866)
(618,103)
(40,055)
61,556
3,526,315
5,136,783
(1,610,468)
Accrued termination pay
2,751,182
2,509,742
Total Liabilities
6,277,497
7,646,525
(1,369,028)
Net Assets
Unrestricted
15,074,901
18,861,250
(3,786,349)
Total Net Assets
15,074,901
18,861,250
(3,786,349)
21,352,398 $
26,507,775 $
(5,155,377)
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
$
8,744,366 $
936
(987,254)
$
Change
13,547,856 $
936
(2,030,666)
Total Assets
$
As of
December 31
2011
241,440