FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
November 26, 2012
Volume 45
Treasurer’s Report for October 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 October 2012 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Larry Gawthrop, CFO
Date: November 26, 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.”
October Treasurer’s Report
Larry Gawthrop, CPA
Chief Financial Officer
November 26, 2012
Summary of Expenditures:
Month of October Spending:
General Fund:
All Other Funds:
Total:
$
$
$
5,922,352
13,064,581
18,986,933
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, is approximately $24.6
million, representing 32.1% of the annual budget. This is 2.7% lower than last year at this
time, when we had recognized 34.8% of budgeted revenues. The most significant change
was in the Tuition and fees and Property Tax categories which are discussed further
below. Expenditures year-to-date are at $20.1 million dollars, which represents 26.2% of
the annual budget, exactly the same budget percentage as it was one year ago.
Revenues
Tuition and fee revenues are $14.7 million for the four months ended, which is $1.35
million less than last year, this is higher than the decreased enrollment expectations that
was budgeted in June and may need to be amended in January.
Property taxes collected are $7.3 million through October, which is $534 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 first payment of $1.4 million 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 $10.5 million, or 25.9% of the annual budget, down from 27%
one year ago. This is due to the enrollment reduction for the summer term resulting in
less section offerings and decreased fall enrollment. There should be 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 $4.5 million, a decrease of roughly $300 thousand from the
previous year. This reduction is in part from the salary savings from reduced enrollment
and the impact of P.A. 152.
Other Expenditures
The changes in the Other Expenses area were due mainly to an increase in Datatel, Oracle,
and Adobe licensing costs, increases in water and electric bills and timing differences of
invoice payments, and a reclassification of an ITS contractor to the general fund from the
72 fund – Contracted Services.
•
Balance Sheet
Total Assets are at approximately $16.1 million, down $4.6 million from last October.
The largest differences are a $5.6 million increase in Cash and Cash Equivalents, a $10.9
million decrease in Due from other funds and a $547 thousand increase in Accounts
Receivable.
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 $5.1 million, Total Liabilities are down approximately $1.9 million from last
October’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 $13.1 million spent in the other funds, $1.1 million was expended out of the Debt
Retirement Fund for regularly scheduled principal and interest payments on our bonded
debt, $376 thousand out of the Maintenance and Replacement Funds for maintenance
and improvements, and the remaining $11.5 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 4 Months Ended October 31, 2012
With Comparative Totals at October 31, 2011
FY 2012-2013
Budget
YTD Actuals
as of 10/31/12
YTD Actuals
as of 10/31/11
Actual to
Actual $
Change
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
40,655,482 $ 14,659,008 $
17,652,500
7,324,629
15,021,410
1,353,672
1,600,000
554,922
1,916,500
754,045
16,009,527
7,858,418
1,320,581
538,507
710,265
$ (1,350,519)
(533,789)
33,091
16,415
43,780
-8.44%
-6.79%
2.51%
3.05%
6.16%
76,845,892
24,646,276
26,437,298
(1,791,022)
-6.77%
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
10,517,016
4,522,381
1,477,783
522,546
59,976
1,219,115
1,456,460
243,039
116,843
10,655,656
4,820,155
1,508,180
574,025
126,142
1,027,679
1,231,368
142,094
41,028
(138,640)
(297,774)
(30,397)
(51,479)
(66,166)
191,436
225,092
100,945
75,815
-1.30%
-6.18%
-2.02%
-8.97%
-52.45%
18.63%
18.28%
71.04%
184.79%
Total expenditures
76,840,772
20,135,159
20,126,327
(8,832)
-0.04%
5,120
4,511,117
6,310,971
(1,799,854)
-28.52%
Total revenues
$
Expenditures:
Net increase/(decrease) in net
assets
Mott Community College
General Fund
Balance Sheet
October 31, 2012
With Comparative Totals at October 31, 2011
As of
October 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 ($5,014,247
for 2013 and $3,485,190 for 2012)
Inventories
Prepaid expenses and other assets
$
16,777,042 $
936
(1,764,087)
As of
October 31
2011
$
Change
11,151,451 $
5,625,591
936
9,125,963
(10,890,050)
887,110
28,730
189,440
340,098
57,092
84,392
$
16,119,171 $
20,759,932 $
(4,640,761)
$
150,744 $
1,605,804
2,662
582,579
1,879,612 $
2,037,405
34,888
521,023
(1,728,868)
(431,601)
(32,226)
61,556
2,341,789
4,472,928
(2,131,139)
Accrued termination pay
2,761,042
2,509,946
Total Liabilities
5,102,831
6,982,874
(1,880,043)
Net Assets
Unrestricted
11,016,340
13,777,058
(2,760,718)
Total Net Assets
11,016,340
13,777,058
(2,760,718)
16,119,171 $
20,759,932 $
(4,640,761)
Total Assets
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
$
547,012
(28,362)
105,048
251,096