FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
November 22, 2010
Volume 43
Treasurer’s Report for October 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 October 2010 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Michael Frawley, Interim CFO
Date: November 22, 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.”
October Treasurer’s Report
Michael Frawley, CPA
Interim Chief Financial Officer
November 12, 2010
Summary of Expenditures:
Month of October Spending:
General Fund:
All Other Funds:
Total:
$
$
$
5,682,011
12,425,550
18,107,561
Comments on General Fund Financial Statements:
•
Statement of Revenues, Expenditures and Changes in Net Assets
In summary, total revenues for the four-month period ended October 31, was
approximately $25.3 million, representing 33.5% of the annual budget. This is 3.1%
lower than last year at this time, when we had recognized 36.6% of budgeted revenues
which totaled $27.8 million. The most significant change was in Property taxes which is
discussed further below. Expenditures year-to-date were at $19.9 million dollars, which
represents 26.4% of the annual budget. This was .8% lower in spending than last year at
this time when compared to the previous year’s budget.
Revenues
Tuition and fee revenues are $14.6 million for the four months ended, which is about
$ 170,000 ahead of last year through October. Even though there was a tuition increase in
January, revenue remains relatively flat as summer credit enrollment was slightly lower
than last year and fall enrollment currently is steady. As a percentage of budget, we are at
39.5% of the budget vs. 42.5% last year through October due to the tuition increase
budgeted for January 2011.
Property taxes were $8.3 million through October, a reduction of $2.5 million (23.4%) 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. We received the first payment in October of $ 1,470,000.
Expenditures
Fringe Benefits are at $4.7 million, an increase of $589 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 $438 thousand in the Contracted Services line item due to the consultants
in the Financial Aid area to help package aid, work on the alarm system, non-credit
instructors, accounts payable and ITS staff/faculty support services. In the Operations
and Communications area, the decrease of roughly $222 thousand is mainly due to the
timing of payments for licenses in the technology area.
•
Balance Sheet
Total Assets were at approximately $21.8 million, up $ 648,000 from last October. The
largest differences are $13.6 increase in Cash and cash equivalents, a $12.3 million
decrease in Short term investments, a $1.8 million decrease in Accounts Receivable, and
a $1.2 million increase in Due from other Funds. The changes in the cash and short term
investments are the result of the decision to keep our idle cash fully insured. The $1.8
million decrease in Accounts Receivable is the result of a combination of financial aid
department being much more current with their files than last year and awarding Pell
grants earlier.
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 $1.2 million increase in this inter-fund activity.
At roughly $9.1 million, Total Liabilities were up approximately $3.5 million from last
year’s October balance. The most significant changes were in the areas of Accounts
payable, Accrued payroll and related liabilities, Accrued Termination Pay and Other
accrued liabilities.
The Accounts Payable increase of $3.5 million was due to the timing of the payments to
our vendors. The Accrued payroll and related liabilities decrease of $329 thousand was
due to an accrual last year for a contingency payout. 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 currently in the court system. This amount was
calculated by the Genesee County Equalization Department. The first payment was made
in October for $ 40,000.
Comments on spending from other funds:
•
Of the $12.4 million spent in the other funds, $271 thousand was expended out of the
Maintenance and Replacement Fund for capital improvements, 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 4 Month Ended October 31, 2010
With Comparative Totals at October 31, 2009
FY 2010-2011
Budget
YTD Actuals
as of 10/31/10
Actual to
Actual $
Change
YTD Actuals
as of 10/31/09
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
Total revenues
$
36,886,727 $ 14,587,748 $
20,915,001
8,319,874
14,530,349
1,470,607
1,641,960
544,776
1,700,491
395,202
14,416,516
10,865,400
1,494,666
574,367
421,219
75,674,528
25,318,207
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
$
171,232
(2,545,526)
(24,059)
(29,591)
(26,017)
1.19%
-23.43%
-1.61%
-5.15%
-6.18%
27,772,168
(2,453,961)
-8.84%
10,682,439
4,723,598
1,601,582
562,261
73,941
881,423
1,218,317
189,613
10,743
10,596,219
4,134,899
1,163,488
635,414
93,120
807,095
1,441,189
187,381
21,657
86,220
588,699
438,094
(73,153)
(19,179)
74,328
(222,872)
2,232
(10,914)
0.81%
14.24%
37.65%
-11.51%
-20.60%
9.21%
-15.46%
1.19%
-50.39%
75,628,377
19,943,917
19,080,462
863,455
46,151
5,374,290
8,691,706
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
(3,317,416)
4.53%
-38.17%
Mott Community College
General Fund
Balance Sheet
October 31, 2010
With Comparative Totals at October 31, 2009
As of
October 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 ($3,420,192
for 2011 and $3,427,897 for 2010)
Inventories
Prepaid expenses and other assets
Total Assets
$
17,368,820 $
936
2,903,425
1,330,113
54,159
96,283
As of
October 31
2009
$
Change
3,740,971 $ 13,627,849
12,360,775
(12,359,839)
1,731,520
1,171,905
3,117,818
44,724
109,715
(1,787,705)
9,435
(13,432)
$
21,753,736 $
21,105,523 $
648,213
$
4,054,456 $
1,491,520
159,960
570,546
568,681 $
1,820,361
193,331
-
3,485,775
(328,841)
(33,371)
570,546
6,276,482
2,582,373
3,694,109
Accrued termination pay
2,829,085
3,049,129
Total Liabilities
9,105,567
5,631,502
3,474,065
Net Assets
Unrestricted
12,648,169
15,474,021
(2,825,852)
Total Net Assets
12,648,169
15,474,021
(2,825,852)
21,753,736 $
21,105,523 $
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
$
(220,044)
648,213