FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
November 24, 2008
Volume 40
Treasurer’s Report for October 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 October 2008 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Lawrence A. Gawthrop, CFO
Date: November 19, 2008
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
Lawrence A.. Gawthrop, CPA
Chief Financial Officer
November 14, 2008
Summary of Expenditures:
Month of October Spending:
General Fund:
All Other Funds:
Total:
$ 5,344,658
$ 4,517,870
----------------$ 9,862,528
========
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 $25.4 million, representing 36.2% of the annual budget. This is .5% ahead
of last year at this time, when we had recognized 35.7% of budgeted revenues which
totaled $25.4 million. Expenditures year-to-date were at $17.1 million dollars, which
represents 24.4% of the annual budget. This was 2.6% lower in spending than last year at
this time when compared to the previous year’s budget.
Revenues
Tuition and fee revenues are $12.5 million for the four months ended, an increase of $846
thousand from last year at this time. This positive variance is mainly due to credit-side
enrollment figures for summer and fall being slightly higher than last year and higher than
anticipated.
Property taxes are $10.2 million through October, 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 first payment as scheduled totaling
$1,617,306. The approximately $1.2 million negative variance was due to the delayed
August 2007 payment received in October 2007.
Expenditures
Salaries and wages total $9.7 million for the four months ended October 31, down
approximately $1.5 million when compared to the previous year. This decrease is due to
the effects of the implementation of Faculty Assignment in Datatel. All adjunct faculty,
part-time, and overload wage expenses are no longer posted at the beginning of each
semester, rather as they occur. This accounting change should help in better reflecting
changes to these contracts as they occur instead of at the end of the semester when the
liability is reconciled. Fringe benefit expenses at approximately $3.5 million are $581
thousand 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 $264 thousand in the Contracted Services line item and an increase of
approximately $508 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. In the Transfer line
item, an allocation to the 72 fund was made in July of 2007 that did not occur this year.
•
Balance Sheet
On the Balance Sheet, figures shown “As of October 31, 2008” are preliminary until the
FY 07-08 year-end closeout and audit are complete. At that point, final June 30, 2008
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 $20.3 million, compared with $18.7 million at the
same time one year ago. The largest differences were comprised of a $1.9 million
increase in Short-term investments and a $275 thousand decrease in Cash and cash
equivalents resulting in a total net increase of $1.6 million. The variances reflected in the
Cash and cash equivalents and Short-term investments are the result of the continued
focus of the College to maximize its investment earnings.
At $5.4 million, Total Liabilities were down approximately $746 thousand from last
year’s October balance. There was a decrease of approximately $2.0 million in Accrued
payroll and related liabilities coupled with a $1.0 million increase in Due to other funds
and a $304 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 largely due to a timing issue from this year to last in
processing 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 $1.0 million increase in this inter-fund activity.
Comments on spending from other funds:
•
Of the $4.5 million spent in the other funds, $1.2 million was spent out of the Debt Service
Fund for interest payments on our outstanding debt obligations, $1.1 million out of the
Maintenance and Replacement Fund and Bond Issue 2008 fund for capital
improvements and the remaining $2.2 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 Months Ended October 31, 2008
With Comparative Totals at October 31, 2007
Actual to
Actual $
Change
Actual to
Actual %
Change
FY 2008-2009
Original Budget
YTD Actuals as YTD Actuals as
of 10/31/08
of 10/31/07
$
26,413,127
$ 12,450,938
Property taxes
24,437,088
10,161,869
9,782,112
State appropriations
15,159,600
1,617,306
2,773,925
Ballenger trust
1,841,880
611,648
594,175
17,473
2.86%
Grants and other
2,444,621
572,978
608,386
(35,408)
-6.18%
70,296,316
25,414,739
25,364,080
50,659
0.20%
Salaries and wages
36,801,821
9,701,620
11,177,698
(1,476,078)
-15.21%
Fringe benefits
14,821,225
3,516,537
4,098,144
(581,607)
-16.54%
Contracted services
4,337,883
1,128,418
1,392,214
(263,796)
-23.38%
Materials and supplies
1,941,497
524,066
473,598
50,468
9.63%
216,628
66,056
67,258
(1,202)
-1.82%
Utilities and insurance
2,910,448
784,893
866,456
(81,563)
-10.39%
Operations/communications
5,658,234
1,193,719
685,148
508,571
42.60%
Transfers
3,249,217
168,605
356,749
(188,144)
-100.00%
206,313
14,627
16,749
(2,122)
-14.51%
70,143,266
17,098,541
19,134,014
(2,035,473)
-11.90%
153,050
8,316,198
6,230,066
2,086,132
25.09%
Revenues:
Tuition and fees
Total revenues
$
11,605,482
$
845,456
6.79%
379,757
3.74%
(1,156,619)
0.00%
Expenditures:
Facilities rent
Capital outlay
Total expenditures
Net increase/(decrease) in net
assets
Mott Community College
General Fund
Balance Sheet
October 31, 2008
With Comparative Totals at October 31, 2007
As of
October 31,
2008
Assets
Current Assets
Cash and cash equivalents
Short term investments
Accounts receivable - net of allowance
for uncollectible accounts ($1,532,863
for 2009 and $2,412,060 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
Due to other funds
$
2,618,917
15,943,443
As of
October 31,
2007
$
1,532,864
56,148
149,680
2,894,332
13,996,580
$
Change
$
1,563,014
46,045
153,216
(275,415)
1,946,863
(30,150)
10,103
(3,536)
$
20,301,052
$
18,653,187
$
1,647,865
$
338,453
780,699
16,555
1,685,197
$
34,135
2,812,674
13,773
652,509
$
304,318
(2,031,975)
2,782
1,032,688
Total Current Liabilities
2,820,904
3,513,091
(692,187)
2,565,725
2,620,458
(54,733)
5,386,629
6,133,549
(746,920)
Net Assets
Unrestricted
14,914,423
12,519,638
2,394,785
Total Net Assets
14,914,423
12,519,638
2,394,785
Accrued termination pay
Total Liabilities
Total Liabilities and Net Assets
$
20,301,052
$
18,653,187
$
1,647,865