FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
December 20, 2010
Volume 43
Treasurer’s Report for November 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 November 2010 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Michael Frawley, Interim CFO
Date: December 20, 2010
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
Michael Frawley, CPA
Interim Chief Financial Officer
December 10, 2010
Summary of Expenditures:
Month of November Spending:
General Fund:
All Other Funds:
Total:
$
$
$
5,616,247
4,321,628
9,937,875
Comments on General Fund Financial Statements:
•
Statement of Revenues, Expenditures and Changes in Net Assets
In summary, total revenues for the five-month period ended November 30, was
approximately $38.8 million, representing 51.2% of the annual budget. This is 1.3%
higher than last year at this time, when we had recognized 49.9% of budgeted revenues
which totaled $37.8 million. The most significant changes were in Tuition and fees and
Property taxes which are discussed further below. Expenditures year-to-date were at
$25.6 million dollars, which represents 33.8% of the annual budget. This was 1.7%
higher in spending than last year at this time when compared to the previous year’s
budget.
Revenues
Tuition and fee revenues are $26.2 million for the five months ended, which is $ 2.1
million ahead of last year through November. We’re beginning to see the impact of the
tuition increase for the winter semester. As a percentage of budget, we are at 71.0% of
the budget vs. 70.9% last year through November.
Property taxes were $8.7 million through November, a reduction of $1.2 million (12.2%)
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.
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 second of eleven payments was received in November.
Expenditures
Fringe Benefits are at $6.1 million, an increase of $780 thousand from the previous year,
mainly due to the increase in medical benefits costs. 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 $452 thousand in the Contracted Services line item due to the consultants
in the Financial Aid area to help package aid and work on the alarm system. In the
Operations and Communications area, the decrease of roughly $272 thousand is mainly
due to the timing of payments for licenses in the technology area.
•
Balance Sheet
Total Assets were at approximately $26.9 million, up $ 855,000 from last November.
The largest differences are $1.4 decrease in Cash and cash equivalents and a $2.1 million
increase in Due from other Funds. Both changes are due to the timing of reimbursement
of expenses for other funds as explained below. Accounts receivable is $11.6 million,
comparable to last November (up 1.5%) even though tuition revenue is up $2.1 million
(8.9% increase). Receivables are up $ 10.3 million from October as winter registration
opened November 1st. Money from Pell and other grants cannot be drawn down until 10
days prior to the start of classes.
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 $2.1 million increase in this inter-fund activity.
At roughly $6.4 million, Total Liabilities were up approximately $611,000 from last
year’s November balance. The most significant changes were in the areas of Accrued
payroll and related liabilities, Accrued Termination Pay and Other accrued liabilities.
The Accrued payroll and related liabilities increase of $397,000 was due to the timing of
payments for employee insurances (increase of $ 700,000) and an accrual last year for a
contingency payout ($ 300,000 decrease). Accrued Termination Pay decrease is due to
current year retirement payouts. 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 $9.9 million spent in the other funds, $180,000 was expended out of the
Maintenance and Replacement Fund for capital improvements, $889,000 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 5 Month Ended November 30, 2010
With Comparative Totals at November 30, 2009
FY 2010-2011
Budget
YTD Actuals
as of 11/30/10
Actual to
Actual $
Change
YTD Actuals
as of 11/30/09
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
Total revenues
$
36,886,727 $ 26,179,404 $
20,915,001
8,665,954
14,530,349
2,835,734
1,641,960
544,776
1,700,491
535,754
24,041,061
9,874,769
2,859,793
574,367
475,572
$
2,138,343
(1,208,815)
(24,059)
(29,591)
60,182
75,674,528
38,761,622
37,825,562
936,060
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
13,999,035
6,115,711
1,943,284
753,948
85,552
1,026,495
1,348,960
273,724
13,693
13,839,766
5,335,272
1,491,578
804,155
117,879
957,009
1,620,586
187,381
22,691
159,269
780,439
451,706
(50,207)
(32,327)
69,486
(271,626)
86,343
(8,998)
75,628,377
25,560,402
24,376,317
46,151
13,201,220
13,449,245
8.89%
-12.24%
-0.84%
-5.15%
12.65%
2.47%
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
1,184,085
(248,025)
1.15%
14.63%
30.28%
-6.24%
-27.42%
7.26%
-16.76%
46.08%
-39.65%
4.86%
-1.84%
Mott Community College
General Fund
Balance Sheet
November 30, 2010
With Comparative Totals at November 30, 2009
As of
November 30
2010
Assets
Current Assets
Cash and cash equivalents
Short term investments
Due from (to) other funds
Accounts receivable - net of allowance
for uncollectible accounts ($3,335,408
for 2011 and $3,427,897 for 2010)
Inventories
Prepaid expenses and other assets
$
Change
10,418,408 $
936
4,657,876
11,830,085 $
(1,225)
2,584,994
11,648,491
56,582
112,892
11,472,013
46,368
108,113
176,478
10,214
4,779
$
26,895,185 $
26,040,348 $
854,837
$
965,751 $
2,026,194
28,510
570,546
972,788 $
1,629,210
194,284
-
(7,037)
396,984
(165,774)
570,546
3,591,001
2,796,282
794,719
Accrued termination pay
2,829,085
3,012,506
(183,421)
Total Liabilities
6,420,086
5,808,788
611,298
Net Assets
Unrestricted
20,475,099
20,231,560
243,539
Total Net Assets
20,475,099
20,231,560
243,539
26,895,185 $
26,040,348 $
854,837
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
2009
Total Current Liabilities
Total Liabilities and Net Assets
$
(1,411,677)
2,161
2,072,882