FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
January 26, 2009
Volume 40
Treasurer’s Report for December 2008
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 2008 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Lawrence A. Gawthrop, CFO
Date: January 16, 2009
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
Lawrence A.. Gawthrop, CPA
Chief Financial Officer
January 16, 2009
Summary of Expenditures:
Month of December Spending:
General Fund:
All Other Funds:
Total:
$ 4,776,174
$ 2,376,008
----------------$ 7,152,182
========
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
$38.6 million, representing 55.0% of the annual budget. This is 1.2% ahead of last year at this
time, when we had recognized 53.8% of budgeted revenues which totaled $38.2 million.
Expenditures year-to-date were at $27.6 million dollars, which represents 39.4% of the annual
budget. This was .7% lower than last year at this time when compared to the previous year’s
budget.
Revenues
Tuition and fee revenues are $21.5 million for the six months ended, an increase of $1.7
million from last year at this time. This positive variance is partially due to credit-side
enrollment figures for summer and fall being higher than last year. Also, winter enrollment
began on November 1, this year as compared to November 19, in 2007. The complete winter
enrollment picture and revenue impact will not be fully known until mid-January when the
final drop/add date takes place.
Property taxes are $11.1 million through December, and are on pace with the budgeted
amounts. We have budgeted a $60,000 decrease in total tax collections for the year based on
the final taxable value figures provided to us from the Genesee County Equalization
Department.
State appropriations payments for FY2008-09 are paid in monthly installments starting with
October. The total budgeted amount for the current year is $15.2 million based on a 2.9%
increase from the prior year. We received our regularly scheduled payment as expected. The
approximately $1.3 million negative variance was due to the delayed August 2007 payment
received in October 2007.
Expenditures
Salaries and wages total $15.7 million for the six months ended December 31, up
approximately $252 thousand when compared to the previous year.
Fringe benefit
expenses at approximately $6.3 million are negligibly lower than when compared to last year
due mostly to the Faculty Assignment implementation described above. We currently have
four Collective Bargaining Agreement Contracts open in this fiscal year that most certainly
will have a future financial impact.
Other Expenditures
The most significant changes in the Other Expenses area were a decrease of approximately
$336 thousand in the Contracted Services line item and an increase of approximately $519
thousand in the Operations and Communications line item. As noted in the July
Treasurer’s report, the Datatel license payments were previously charged to the Contracted
Services area. It was determined that a more accurate classification of this expenditure
should be in Operations and Communications.
•
Balance Sheet
Total Assets were at approximately $22.2 million, compared with $21.0 million at the same
time one year ago. The largest differences were comprised of a $1.9 million decrease in
Short-term investments and a decrease of $1.3 million in Due from other funds. These
decreases were offset by a $1.9 million increase Cash and cash equivalents and a $2.4
million increase in Accounts receivable resulting in a total net increase of $1.2 million.
At $4.6 million, Total Liabilities were down approximately $685 thousand from last year’s
December balance. There was a negligible increase in Accrued payroll and related
liabilities and a $682 thousand increase in Accounts payable. The Accrued payroll and
related liabilities decrease was the effect of the implementation of the Faculty Assignment in
Datatel as described in the salaries and wages expenditures earlier in this report. The increase
in accounts payable was due to timing of the processing of accounts payable.
“Due to” and “Due from”
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 12
month period. This is the case in the current month and the reason for the $1.3 million
decrease in this inter-fund activity.
Comments on spending from other funds:
•
Of the $2.4 million spent in the other funds, $383 thousand was spent out of the
Maintenance and Replacement Fund and Bond Issue 2008 fund for capital
improvements and the remaining $2.0 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 6 Months Ended December 31, 2008
With Comparative Totals at December 31, 2007
Actual to
Actual $
Change
Actual to
Actual %
Change
FY 2008-2009
Original Budget
YTD Actuals as YTD Actuals as
of 12/31/08
of 12/31/07
$
26,413,127
$ 21,450,661
Property taxes
24,437,088
11,077,353
10,932,620
State appropriations
15,159,600
4,241,262
5,570,753
Ballenger trust
1,841,880
917,471
891,262
Grants and other
2,444,621
947,270
1,132,616
(185,346)
70,296,316
38,634,017
38,241,427
392,590
1.02%
Salaries and wages
36,801,821
15,734,796
15,482,541
252,255
1.60%
Fringe benefits
14,821,225
6,270,169
6,364,395
(94,226)
-1.50%
Contracted services
4,337,883
1,591,348
1,927,268
(335,920)
-21.11%
Materials and supplies
1,941,497
862,563
781,227
Revenues:
Tuition and fees
Total revenues
$
19,714,176
$
1,736,485
8.10%
144,733
1.31%
(1,329,491)
26,209
0.00%
2.86%
-19.57%
Expenditures:
Facilities rent
81,336
9.43%
216,628
100,580
101,968
(1,388)
-1.38%
Utilities and insurance
2,910,448
1,081,160
1,169,453
(88,293)
-8.17%
Operations/communications
5,658,234
1,585,445
1,066,373
519,072
32.74%
Transfers
3,249,217
374,073
483,304
(109,231)
-100.00%
206,313
14,627
35,167
(20,540)
-140.43%
70,143,266
27,614,761
27,411,696
203,065
0.74%
153,050
11,019,256
10,829,731
189,525
1.72%
Capital outlay
Total expenditures
Net increase/(decrease) in net
assets
Mott Community College
General Fund
Balance Sheet
December 31, 2008
With Comparative Totals at December 31, 2007
As of
December 31,
2008
Assets
Current Assets
Cash and cash equivalents
Short term investments
Due from other funds
Accounts receivable - net of allowance
for uncollectible accounts ($2,773,059
for 2009 and $2,381,428 for 2008)
Inventories
Prepaid expenses and other assets
Total Assets
Liabilities and Net Assets
Current Liabilities
Accounts payable
Accrued payroll and related liabilities
Deposits held for others
$
3,571,871
10,539,468
3,847,936
As of
December 31,
2007
$
3,948,573
65,158
195,539
1,673,492
12,447,595
5,189,970
$
Change
$
1,498,601
46,045
129,316
1,898,379
(1,908,127)
(1,342,034)
2,449,972
19,113
66,223
$
22,168,545
$
20,985,019
$
1,183,526
$
715,311
1,251,986
18,042
$
33,601
1,209,809
13,323
$
681,710
42,177
4,719
Total Current Liabilities
1,985,339
1,256,733
728,606
2,565,725
2,608,983
(43,258)
4,551,064
3,865,716
685,348
Net Assets
Unrestricted
17,617,481
17,119,303
498,178
Total Net Assets
17,617,481
17,119,303
498,178
Accrued termination pay
Total Liabilities
Total Liabilities and Net Assets
$
22,168,545
$
20,985,019
$
1,183,526