FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
October 22, 2012
Volume 45
Treasurer’s Report for September 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 September 2012 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Larry Gawthrop, CFO
Date: October 22, 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.”
September Treasurer’s Report
Larry Gawthrop, CPA
Chief Financial Officer
October 22, 2012
Summary of Expenditures:
Month of September Spending:
General Fund:
All Other Funds:
Total:
$
$
$
5,518,078
4,556,929
10,075,007
Comments on General Fund Financial Statements:
•
Statement of Revenues, Expenditures and Changes in Net Assets
In summary, total revenues for the three months ended September 30, was approximately
$20.4 million, representing 26.5% of the annual budget. This is 4% lower than last year at
this time, when we had recognized 30.5% 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 $14.2 million dollars, which represents
18.5% of the annual budget, nearly the same budget percentage as it was one year ago.
Revenues
Tuition and fee revenues are $14.5 million for the three months ended, which is $1.5
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 $5.1 million through September, which is $1.4 million 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. 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 $7.3 million, or 18% of the annual budget, down from 18.9%
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 $3.3 million, a decrease of roughly $250 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 $20 million, down $5.6 million from last September.
The largest differences are a $6.3 million decrease in Cash and Cash Equivalents, a $1.4
million increase in Due from other funds and an $810 thousand decrease in Accounts
Receivable. The significant decrease in Cash and Cash Equivalents from one year ago is
due to a timing of the check run resulting in $1.7 million less in payables, a $457
reduction in our accrued expenses and $1.4 million less in property tax collections and a
use of cash (fund balance) last year as planned.
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 $7.4 million, Total Liabilities are down approximately $1.9 million from last
September’s balance. The most significant changes were in the areas of Accounts
payable – timing of check runs and significantly less owed to Follet’s, 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 $4.6 million spent in the other funds, $406 thousand was expended out of the
Maintenance and Replacement Funds for maintenance and improvements, and the
remaining $4.2 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 3 Months Ended September 30, 2012
With Comparative Totals at September 30, 2011
FY 2012-2013
Budget
YTD Actuals
as of 09/30/12
YTD Actuals
as of 09/30/11
Actual to
Actual $
Change
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
40,655,482 $ 14,455,212 $
17,652,500
5,086,990
15,021,410
1,600,000
416,192
1,916,500
392,424
15,933,321
6,435,706
408,582
388,669
$ (1,478,109)
(1,348,716)
7,610
3,755
-9.28%
-20.96%
0.00%
1.86%
0.97%
76,845,892
20,350,818
23,166,278
(2,815,460)
-12.15%
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
7,318,592
3,267,625
1,065,900
354,815
46,482
847,220
1,234,793
77,380
7,467,178
3,514,976
1,000,644
378,437
73,512
853,595
956,719
4,000
22,012
(148,586)
(247,351)
65,256
(23,622)
(27,030)
(6,375)
278,074
(4,000)
55,368
-1.99%
-7.04%
6.52%
-6.24%
-36.77%
-0.75%
29.07%
-100.00%
251.54%
Total expenditures
76,840,772
14,212,807
14,271,073
58,266
5,120
6,138,011
8,895,205
Total revenues
$
Expenditures:
Net increase/(decrease) in net
assets
(2,757,194)
0.41%
-31.00%
Mott Community College
General Fund
Balance Sheet
September 30, 2012
With Comparative Totals at September 30, 2011
As of
September 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 ($5,043,324
for 2013 and $4,138,056 for 2012)
Inventories
Prepaid expenses and other assets
Total Assets
$
As of
September 30
2011
15,850,017 $
936
1,745,215
2,226,180
28,730
182,959
22,157,595 $
936
264,806
3,036,889
51,632
148,074
$
Change
(6,307,578)
1,480,409
(810,709)
(22,902)
34,885
$
20,034,037 $
25,659,932 $
(5,625,895)
$
2,430,762 $
1,594,370
22,050
582,579
4,175,165 $
2,051,901
36,509
521,023
(1,744,403)
(457,531)
(14,459)
61,556
4,629,761
6,784,598
(2,154,837)
Accrued termination pay
2,761,042
2,514,042
Total Liabilities
7,390,803
9,298,640
(1,907,837)
Net Assets
Unrestricted
12,643,234
16,361,292
(3,718,058)
Total Net Assets
12,643,234
16,361,292
(3,718,058)
20,034,037 $
25,659,932 $
(5,625,895)
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
$
247,000