FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
December 17, 2012
Volume 45
Treasurer’s Report for November 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 November 2012 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Larry Gawthrop, CFO
Date: December 17, 2012
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.”
November Treasurer’s Report
Larry Gawthrop, CPA
Chief Financial Officer
December 17, 2012
Summary of Expenditures:
Month of November Spending:
General Fund:
All Other Funds:
Total:
$
$
$
7,987,186
2,321,323
10,308,509
Comments on General Fund Financial Statements:
•
Statement of Revenues, Expenditures and Changes in Net Assets
In summary, total revenues for the five months ended November 30, is approximately
$37.6 million, representing 48.9% of the annual budget. This is 4.1% lower than last year
at this time, when we had recognized 53.0% 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 $28.1
million dollars, which represents 36.6% of the annual budget compared to 33.7% one year
ago. The increase was due mainly to three payrolls expensed in November of this year vs.
November of last year and is discussed further below.
Revenues
Tuition and fee revenues are $25.7 million for the five months ended, compared to $28
million one year ago. The enrollment decrease is higher than anticipated and budgeted in
June and will be amended in January.
Property taxes collected are $7.5 million through November, which is $697 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 second $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 $15.5 million, or 38.3% of the annual budget, up from 35.3%
one year ago. Until this month, we had been trending down due to the enrollment
reduction for the summer term resulting in less section offerings and decreased fall
enrollment. However, as noted earlier, there were three payrolls in November of this year
compared to two in November of last year. This will reverse in December when we will
have two payrolls instead of three. We anticipate further reductions in this line item as the
year progresses and the full impact of the reduction is realized in December.
Fringe Benefits are at $6.5 million, an increase of roughly $300 thousand from the
previous year. As with the salaries and wages line item, this was also trending down due
in part from the salary savings from reduced enrollment and the impact of P.A. 152.
However, due to an additional payroll being recorded in November compared to last year,
this line item also increased because of this timing difference and will reverse in
December.
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 and a reclassification of an ITS contractor to the general
fund from the 72 fund – Contracted Services.
•
Balance Sheet
Total Assets are at approximately $21.9 million, down $5.8 million from last November.
The largest differences are a $4.5 million decrease in Cash and Cash Equivalents, $1.1
million decrease in Accounts Receivables. This Accounts Receivable decrease is due to
the allowance being roughly $2 million higher than it was last year. Generally, the
allowance account is not adjusted until year-end, however, this year since it is
significantly higher than last year will be reconciled through the budget amendment
process in January.
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 $5.9 million, Total Liabilities are up approximately $198 thousand from last
November’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, $502 thousand was expended out
of the Maintenance and Replacement Funds for maintenance and improvements, and the
remaining $7.5 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 5 Months Ended November 30, 2012
With Comparative Totals at November 30, 2011
FY 2012-2013
Budget
YTD Actuals
as of 11/30/12
YTD Actuals
as of 11/30/11
Actual to
Actual $
Change
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
40,655,482 $ 25,657,701 $
17,652,500
7,501,108
15,021,410
2,861,415
1,600,000
693,653
1,916,500
845,189
28,009,098
8,198,114
2,641,162
668,432
803,579
$ (2,351,397)
(697,006)
220,253
25,221
41,610
-8.40%
-8.50%
8.34%
3.77%
5.18%
76,845,892
37,559,066
40,320,385
(2,761,319)
-6.85%
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
15,529,363
6,582,422
1,847,062
698,311
73,470
1,400,993
1,629,350
243,039
118,143
13,950,691
6,258,980
1,933,858
735,080
142,660
1,197,040
1,475,279
142,094
43,430
1,578,672
323,442
(86,796)
(36,769)
(69,190)
203,953
154,071
100,945
74,713
11.32%
5.17%
-4.49%
-5.00%
-48.50%
17.04%
10.44%
71.04%
172.03%
Total expenditures
76,840,772
28,122,153
25,879,112
(2,243,041)
-8.67%
5,120
9,436,913
14,441,273
(5,004,360)
-34.65%
Total revenues
$
Expenditures:
Net increase/(decrease) in net
assets
Mott Community College
General Fund
Balance Sheet
November 30, 2012
With Comparative Totals at November 30, 2011
As of
November 30
2012
Assets
Current Assets
Cash and cash equivalents
Short term investments
Due from (to) other funds
Accounts receivable - net of allowance
for uncollectible accounts ($4,999,084
for 2013 and $2,860,959 for 2012)
Inventories
Prepaid expenses and other assets
$
Change
11,772,373 $
936
(1,699,248)
16,335,539 $
936
(1,546,673)
(4,563,166)
(152,575)
11,579,803
28,730
178,941
12,688,156
63,644
87,048
(1,108,353)
(34,914)
91,893
$
21,861,535 $
27,628,650 $
(5,767,115)
$
214,289 $
2,359,272
2,217
582,579
403,771 $
2,257,815
28,735
521,023
(189,482)
101,457
(26,518)
61,556
3,158,357
3,211,344
(52,987)
Accrued termination pay
2,761,042
2,509,946
251,096
Total Liabilities
5,919,399
5,721,290
198,109
Net Assets
Unrestricted
15,942,136
21,907,360
(5,965,224)
Total Net Assets
15,942,136
21,907,360
(5,965,224)
21,861,535 $
27,628,650 $
(5,767,115)
Total Assets
Liabilities and Net Assets
Current Liabilities
Accounts payable
Accrued payroll and related liabilities
Deposits held for others
Other accrued liabilities
$
As of
November 30
2011
Total Current Liabilities
Total Liabilities and Net Assets
$