FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
November 1, 2010
Volume 43
Treasurer’s Report for September 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 September 2010 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Michael Frawley, Interim CFO
Date: November 1, 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.”
September Treasurer’s Report
Michael Frawley, CPA
Interim Chief Financial Officer
October 22, 2010
Summary of Expenditures:
Month of September Spending:
General Fund:
All Other Funds:
Total:
$
$
$
5,573,365
8,364,413
13,937,778
Comments on General Fund Financial Statements:
•
Statement of Revenues, Expenditures and Changes in Net Assets
In summary, total revenues for the three-month period ended September 30, was
approximately $20.6 million, representing 27.2% of the annual budget. This is 2.8%
lower than last year at this time, when we had recognized 30.0% of budgeted revenues
which totaled $21.3 million. The two significant changes were in Tuition and fees and
Property taxes which are discussed further below. Expenditures year-to-date were at
$14.3 million dollars, which represents 18.9% of the annual budget. This was .6% lower
in spending than last year at this time when compared to the previous year’s budget.
Revenues
Tuition and fee revenues are $14.3 million for the three months ended, which is what is
was last year at this time. Even though there was a tuition increase in January, revenue
remains flat as summer credit enrollment was slightly lower than last year and fall
enrollment currently is steady.
Property taxes were $5.6 million through September, a reduction of $.5 million (8.6%) 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.
Expenditures
Fringe Benefits are at $3.5 million, an increase of $480 thousand from the previous year,
mainly due to the increase in medical benefits costs. Medical benefit charges have
increase an average of 21% over last year.
Other Expenditures
The most significant changes in the Other Expenses area were an increase of
approximately $243 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 $169 thousand is mainly due to the
timing of payments for licenses in the technology area. The Transfers line item last year
included the designated scholarships which were recorded on September 30th.
•
Balance Sheet
On the Balance Sheet, figures shown “As of September 30, 2010” are preliminary until
the FY 09-10 year-end closeout and audit are complete. At that point, final June 30, 2010
totals will be carried forward. This is scheduled to take place at the end of October, with
the November Treasurer’s Report being the first month to reflect the final audited
beginning balances for this fiscal year.
Total Assets were at approximately $21.3 million, down $1.2 million from last
September. The largest differences are $13.5 increase in Cash and cash equivalents a
$11.3 million decrease in Short term investments, a $678 thousand decrease in Accounts
Receivable, and a $2.8 million decrease 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 $678 thousand 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 $2.8 million increase in this inter-fund activity.
At roughly $7.7 million, Total Liabilities were down approximately $618 thousand from
last year’s September 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 decrease of $632 thousand was due to the timing of the payments
to our vendors. The Accrued payroll and related liabilities decrease of $278 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 request
for payment has come for $ 40,000.
Comments on spending from other funds:
•
Of the $8.36 million spent in the other funds, $394 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 3 Month Ended September 30, 2010
With Comparative Totals at September 30, 2009
FY 2010-2011
Budget
YTD Actuals
as of 09/30/10
Actual to
Actual $
Change
YTD Actuals
as of 09/30/09
Actual to
Actual %
Change
Revenues:
Tuition and fees
Property taxes
State appropriations
Ballenger trust
Grants and other
Total revenues
$
36,886,727 $ 14,344,882 $
20,915,001
5,582,343
14,530,349
105,480
1,641,960
408,582
1,700,491
150,679
14,317,823
6,104,040
129,539
430,775
302,449
75,674,528
20,591,966
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
$
27,059
(521,697)
(24,059)
(22,193)
(151,770)
0.19%
-8.55%
-18.57%
-5.15%
-50.18%
21,284,626
(692,660)
-3.25%
7,470,263
3,507,027
1,091,264
366,989
48,581
739,294
1,034,262
3,000
1,225
7,408,470
3,026,776
848,580
403,767
75,845
670,712
1,203,297
187,381
11,086
61,793
480,251
242,684
(36,778)
(27,264)
68,582
(169,035)
(184,381)
(9,861)
0.83%
15.87%
28.60%
-9.11%
-35.95%
10.23%
-14.05%
-98.40%
-88.95%
75,628,377
14,261,905
13,835,914
425,991
46,151
6,330,061
7,448,712
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
(1,118,651)
3.08%
-15.02%
Mott Community College
General Fund
Balance Sheet
September 30, 2010
With Comparative Totals at September 30, 2009
As of
September 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 ($3,427,871
for 2011 and $3,427,897 for 2010)
Inventories
Prepaid expenses and other assets
Total Assets
$
As of
September 30
2009
21,555,687 $
936
(3,229,191)
2,814,345
52,948
95,333
$
Change
8,014,412 $ 13,541,275
11,306,836
(11,305,900)
(432,666)
(2,796,525)
3,492,933
44,724
108,957
(678,588)
8,224
(13,624)
$
21,290,058 $
22,535,196 $
(1,245,138)
$
2,885,846 $
1,252,925
107,262
611,000
3,517,446 $
1,531,002
206,592
-
(631,600)
(278,077)
(99,330)
611,000
4,857,033
5,255,040
(398,007)
Accrued termination pay
2,829,085
3,049,129
(220,044)
Total Liabilities
7,686,118
8,304,169
(618,051)
Net Assets
Unrestricted
13,603,940
14,231,027
(627,087)
Total Net Assets
13,603,940
14,231,027
(627,087)
21,290,058 $
22,535,196 $
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
$
(1,245,138)