FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
January 24, 2011
Volume 43
Treasurer’s Report for December 2010
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 2010 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Michael Frawley, Interim CFO
Date: January 24, 2011
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
Michael Frawley, CPA
Interim Chief Financial Officer
January 24, 2011
Summary of Expenditures:
Month of December Spending:
General Fund:
All Other Funds:
Total:
$
$
$
7,093,911
11,673,191
18,767,102
Comments on General Fund Financial Statements:
•
Statement of Revenues, Expenditures and Changes in Net Assets
In summary, total revenues for the six month period ended December 31, was
approximately $43.2 million, representing 57.1% of the annual budget. This is .08%
higher than last year at this time, when we had recognized 56.9% of budgeted revenues.
The most significant changes were in Tuition and fees and Property taxes which are
discussed further below. Expenditures year-to-date were at $32.7 million dollars, which
represents 43.2% of the annual budget. This was 9.7% higher in spending than last year at
this time when compared to the previous year’s budget.
Revenues
Tuition and fee revenues are $28.7 million for the six months ended, which is $1.8
million ahead of last year through December.
Property taxes were $8.9 million through December, a reduction of $1.6 million (15.5%)
vs. 2009. The amount budgeted is down 11.0% from last year at $20.9 million based on
final taxable value figures provided by the Genesee County Equalization Department.
Although slightly behind current budgeted amounts, we expect winter collections to pick
up through January and February to make up the difference.
State appropriations payments for FY2010-11 are paid in monthly installments starting
with October. The total budgeted amount for the current year is $14.5 million which is
$464 thousand lower than the prior year due to a 3.1% proposed cut in our appropriation
for the current fiscal year. The third of eleven payments was received in December.
Expenditures
Salaries and Wages are at $18.5 million, or 45.7% of the annual budget. This is $3.8%
higher than last year when we had recognized 41.9% of the annual budget. It is also an
increase of $1.5 million over last year. This is due to the fact that there were three pay
periods in December this year compared to only two in 2010.
Fringe Benefits are at $7.9 million, an increase of $1.4 million from the previous year,
mainly due to the increase in medical benefits costs, as well as the additional pay period in
December described above. Medical benefit charges have increased an average of 21%
over last year.
Other Expenditures
The most significant changes in the Other Expenses area were an increase of
approximately $405 thousand in the Contracted Services line item due to the consultants
in the Financial Aid area to help package aid and work that was done on the College’s
alarm system.
•
Balance Sheet
Total Assets were at approximately $25.3 million, down $793 thousand from last
December. The largest differences are a $5.1 million increase in Due from other Funds,
due to the timing of reimbursement of expenses for other funds as explained below.
Accounts receivable is $4.9 million, which is a significant decrease compared to last
December when it was at $11.3 million. This is due to the efforts of the Financial Aid
department in processing and packaging aid with the goal of maximum collectability, as
well as the PELL awards posting on December 29th.
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. This is the case in the current month and the reason for
the $5.1 million increase in this inter-fund activity.
At roughly $7.4 million, Total Liabilities were up approximately $1.8 million from last
year’s December balance. The most significant changes were in the areas of Accrued
payroll and related liabilities and Other accrued liabilities.
The Accrued payroll and related liabilities increase of $1.1 million was due to the timing
of payments for employee insurances and retirement (increase of $900,000). The Other
accrued liabilities is the recording of the full amount of the GM tax appeal as calculated
by the Genesee County Equalization Department ($ 611,000) less payments made to date
($ 40,454).
Comments on spending from other funds:
•
Of the $11.7 million spent in the other funds, $350,000 was expended out of the
Maintenance and Replacement Fund for capital improvements, $175,000 was expended
out of Bond Funds, and a majority of the remaining 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 Month Ended December 31, 2010
With Comparative Totals at December 31, 2009
FY 2010-2011
Budget
YTD Actuals
as of 12/31/10
Actual to
Actual $
Change
YTD Actuals
as of 12/31/09
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
Total revenues
$
36,886,727 $ 28,715,599 $
20,915,001
8,889,588
14,530,349
4,200,861
1,641,960
817,164
1,700,491
590,278
26,890,685
10,516,826
4,224,920
861,551
683,434
$
1,824,914
(1,627,238)
(24,059)
(44,387)
(93,156)
75,674,528
43,213,490
43,177,416
40,420,694
15,645,833
5,830,930
2,491,048
216,400
2,765,000
5,581,902
2,504,200
172,370
18,482,032
7,910,091
2,157,608
880,588
97,162
1,120,571
1,682,355
307,836
16,070
17,034,812
6,474,403
1,751,805
947,961
131,870
1,039,242
1,750,932
334,144
33,324
1,447,220
1,435,688
405,803
(67,373)
(34,708)
81,329
(68,577)
(26,308)
(17,254)
8.50%
22.17%
23.16%
-7.11%
-26.32%
7.83%
-3.92%
-7.87%
-51.78%
75,628,377
32,654,313
29,498,493
3,155,820
10.70%
46,151
10,559,177
13,678,923
(3,119,746)
-22.81%
36,074
6.79%
-15.47%
-0.57%
-5.15%
-13.63%
0.08%
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
Mott Community College
General Fund
Balance Sheet
December 31, 2010
With Comparative Totals at December 31, 2009
As of
December 31
2010
Assets
Current Assets
Cash and cash equivalents
Short term investments
Due from (to) other funds
Accounts receivable - net of allowance
for uncollectible accounts ($3,328,324
for 2011 and $3,352,965 for 2010)
Inventories
Prepaid expenses and other assets
Total Assets
$
11,864,938 $
936
8,380,803
4,861,094
62,764
103,599
As of
December 31
2009
11,300,135 $
936
3,266,031
11,343,518
50,477
106,082
$
Change
564,803
5,114,772
(6,482,424)
12,287
(2,483)
$
25,274,134 $
26,067,179 $
(793,045)
$
1,368,447 $
2,621,259
85,773
570,546
884,233 $
1,517,810
191,392
-
484,214
1,103,449
(105,619)
570,546
4,646,025
2,593,435
2,052,590
Accrued termination pay
2,795,053
3,012,506
Total Liabilities
7,441,078
5,605,941
1,835,137
Net Assets
Unrestricted
17,833,056
20,461,238
(2,628,182)
Total Net Assets
17,833,056
20,461,238
(2,628,182)
25,274,134 $
26,067,179 $
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
$
(217,453)
(793,045)