FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
June 25, 2012
Volume 44
Treasurer’s Report for May 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 May, 2012 as presented
by the Administration.
Reviewed and Submitted By:
_____________________________________
Larry Gawthrop, CFO
Date: June 25, 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.”
May Treasurer’s Report
Larry Gawthrop, CPA
Chief Financial Officer
June 25, 2012
Summary of Expenditures:
Month of May Spending:
General Fund:
All Other Funds:
Total:
$
$
$
6,056,114
2,684,173
8,740,287
Comments on General Fund Financial Statements:
•
Statement of Revenues, Expenditures and Changes in Net Assets
In summary, total revenues for the eleven months ended May 31, was approximately
$69.7 million, representing 91.2% of the annual budget. This is 1.3% lower than last year
at this time, when we had recognized 92.5% of budgeted revenues. The most significant
changes continue to be in the Tuition and fees, Property taxes, and State Appropriations
which are discussed further below. General Fund expenditures for the eleven months
ended May 31, are at $62.7 million representing 80.8% of the annual budget, .8% lower
than one year ago.
Revenues
Tuition and fee revenues are $38.8 million for the eleven months ended, which is $1.5
million ahead of last year, mainly due to the tuition rate increase.
Property taxes collected are $17.8 million through May. The amount budgeted is $19.1
million, down $1.8 million from last year’s $20.9 million and is based on final taxable
value figures provided by the Genesee County Equalization Department.
State appropriations - we received our eighth installment in May, totaling approximately
$1.3 million. The total budgeted amount for the current fiscal year is $14.4 million or
approximately $700 thousand (4.88%) less than last year. This includes the loss of the
renaissance zone payments we received in past years.
Expenditures
Salaries and Wages are at $34.9 million, or 86.8% of the annual budget, down from
88.8% one year ago.
Fringe Benefits are at $15.3 million, or 86.2% of the annual budget, down from 87.2% of
the budgeted amount, one year ago. The increase in actual to actual is mainly due to the
MPSERS rate increase.
Other Expenditures
The Other Expenses area significant variances when compared to the prior year actuals
were in the Contracted services, Materials and supplies, Operations/communications
and Utilities and insurance areas. A majority of the contracted services area is due to the
Information Technology contractors being charged to and paid out of the general fund
instead of the 72 fund as was done previously and a reduction in financial aid consultants.
The materials and supplies decrease was mainly on the instructional side. The
Operations/ communications reduction was in the areas of institutional administration and
technology, also there were reductions in legal fees and advertising/publicity. The
Utilities and insurance variance is mainly due to the timing of the water payments from
last year and an increase in electrical rates.
•
Balance Sheet
Total Assets are at approximately $26.7 million, down approximately $1.1 million from
last May. The largest differences are a $6.9 million decrease in Due from other funds, a
$4.8 million increase in Cash and cash equivalents, and a $825 thousand increase in
Accounts receivable. The increase in Accounts receivable is due to a reduction in the
allowance compared to the previous year as well as the tuition increase.
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 approximately $12.2 million, Total Liabilities are up approximately $10 thousand from
last May’s balance. The most significant changes were in the areas of Accounts payabletiming differences in payment of student loan balances, Accrued payroll and related
liabilities- timing difference in the payment of the health insurance premium payments
from year to year, Unearned Revenue – Summer and Fall tuition revenues not yet earned,
Other Accrued Liabilities - the recording of the estimated amount of the real property tax
refunds created by the appeals filed with the Michigan Tax Tribunal, and a decrease in
Accrued termination pay partly due to employee retirements and a decrease in the
actuarial computation at year-end.
Comments on spending from other funds:
•
Of the approximately $2.7 million spent in the other funds, $537 thousand was expended out
of the Maintenance and Replacement Funds for capital improvements, $2.2 million from
the Debt Retirement Funds for required principal and interest payments on our
outstanding debt, and the remaining $4.6 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
For the 11 Month Ended May 31, 2012
With Comparative Totals at May 31, 2011
FY 2011-2012
Budget
YTD Actuals
as of 05/31/12
Actual to
Actual $
Change
YTD Actuals
as of 05/31/11
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
Total revenues
$
39,630,462 $ 38,806,606 $
19,125,451
17,808,090
14,383,600
10,590,652
1,514,908
1,318,058
1,736,542
1,171,540
37,287,781
18,833,011
11,026,496
1,498,135
1,025,818
$
1,518,825
(1,024,921)
(435,844)
(180,077)
145,722
76,390,963
69,694,946
69,671,241
23,705
40,201,485
17,795,304
6,598,791
2,487,767
242,350
2,546,100
4,916,009
2,412,841
409,300
34,912,092
15,338,709
4,667,859
1,688,230
220,435
2,382,084
2,943,958
478,865
106,275
34,731,772
14,394,928
4,321,389
1,772,841
195,354
2,197,050
3,386,956
307,836
70,136
180,320
943,781
346,470
(84,611)
25,081
185,034
(442,998)
171,029
36,139
77,609,947
62,738,507
61,378,262
1,360,245
(1,218,984)
6,956,439
8,292,979
(1,336,540)
4.07%
-5.44%
-3.95%
-12.02%
14.21%
0.03%
Expenditures:
Salaries and wages
Fringe benefits
Contracted services
Materials and supplies
Facilities rent
Utilities and insurance
Operations/communications
Transfers
Capital outlay
Total expenditures
Net increase/(decrease) in net
assets
0.52%
6.56%
8.02%
-4.77%
12.84%
8.42%
-13.08%
55.56%
51.53%
2.22%
-16.12%
Mott Community College
General Fund
Balance Sheet
May 31, 2012
With Comparative Totals at May 31, 2011
As of
May 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 ($2,818,154
for 2012 and $3,200,482 for 2011)
Inventories
Prepaid expenses and other assets
Total Assets
$
16,769,179 $
936
(944,395)
10,519,811
88,167
224,016
As of
May 31
2011
11,987,792 $
936
5,915,321
9,694,467
87,305
105,977
$
Change
4,781,387
(6,859,716)
825,344
862
118,039
$
26,657,714 $
27,791,798 $
(1,134,084)
$
1,658,859 $
1,874,442
8,786
5,723,790
480,732
1,785,616 $
1,282,085
32,951
5,840,900
521,023
(126,757)
592,357
(24,165)
(117,110)
(40,291)
9,746,609
9,462,575
284,034
Accrued termination pay
2,488,579
2,762,365
(273,786)
Total Liabilities
12,235,188
12,224,940
10,248
Net Assets
Unrestricted
14,422,526
15,566,858
(1,144,332)
Total Net Assets
14,422,526
15,566,858
(1,144,332)
26,657,714 $
27,791,798 $
(1,134,084)
Liabilities and Net Assets
Current Liabilities
Accounts payable
Accrued payroll and related liabilities
Deposits held for others
Unearned revenue
Other accrued liabilities
Total Current Liabilities
Total Liabilities and Net Assets
$