FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
October 20, 2008
Volume 40
Treasurer’s Report for September 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 September 2008 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Lawrence A. Gawthrop, CFO
Date: October 20, 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.”
September Treasurer’s Report
Lawrence A. Gawthrop, CPA
Chief Financial Officer
October 10, 2008
Summary of Expenditures:
Month of September Spending:
General Fund:
All Other Funds:
Total:
$ 4,261,427
$ 7,370,597
----------------$ 11,632,024
========
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 $21.7 million, representing 30.9% of the annual budget. This is 2.3%
ahead of last year at this time, when we had recognized 28.6% of budgeted revenues
which totaled $20.3 million. Expenditures year-to-date were at $11.8 million dollars,
which represents 16.8% of the annual budget. This was .1% lower in spending than last
year at this time when compared to the previous year’s budget.
Revenues
Tuition and fee revenues are $12.3 million for the three months ended, an increase of
$871 thousand from last year at this time. This positive variance is mainly due to creditside enrollment figures for summer and fall being slightly higher than last year and higher
than anticipated.
Property taxes were $8.7 million through September, 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. After our budget was adopted, the State through its
budget balancing measures has informed us that we will only receive a 2% increase. The
decrease of approximately $132,500 will be adjusted in the January budget amendment.
The $121,525 variance from the prior year is the timing of the receipt of our Renaissance
Zone tax rebate.
Expenditures
Salaries and wages continue to be slightly higher than last year, and total $6.2 million for
the three months ended September 30. Fringe benefit expenses at approximately $2.8
million are consistent when compared with the prior year. 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 $354 thousand in the Contracted Services line item and an increase of
approximately $518 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 depiction of this
expenditure should be in Operations and Communications. This change in classification
and a significant payment made to Teoma Systems in the previous fiscal year that did not
occur in the current year comprise the variances reflected on the September statement.
In the Transfer line item, an allocation 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 September 30, 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 $23.4 million, compared with $20.1 million at the
same time one year ago. The largest differences were comprised of an $8.6 million
increase in Short-term investments a $1.0 million decrease in Cash and cash equivalents,
a $.6 million increase in Accounts Receivable, and a $4.9 million decrease in Due from
other funds for a total net increase of $3.3 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. The increase in Accounts Receivable is
the result of a change in procedures related to the administering of Federal financial aid
awards and how the credit balances are carried.
At $6.8 million, Total Liabilities were up approximately $1.4 million from last year’s
September balance. There were decreases in the areas of Accounts payable, Accrued
payroll and related liabilities coupled with an increase in Due from other funds.. The
Accounts payable and Accrued payroll and related liabilities decreases were the result of
timing of payments between the two years.
“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 $2.7 million increase in this inter-fund activity.
Comments on spending from other funds:
•
Of the $7.4 million spent in the other funds, $6.7 was spent out of the Agency,
Scholarships, and Federal Grants, for grant activities and student scholarships, and $.7
million out of the Maintenance and Replacement Fund and Bond Issue 2008 fund for
capital improvements.
Mott Community College
General Fund
Statement of Revenues, Expenditures and Changes in Net Assets
For the 3 Months Ended September 30, 2008
With Comparative Totals at September 30, 2007
FY 2008-2009
Original Budget
YTD Actuals as YTD Actuals as
of 9/30/08
of 9/30/07
$
26,413,127
$ 12,300,031
Property taxes
24,437,088
8,737,761
State appropriations
15,159,600
Actual to
Actual $
Change
Actual to
Actual %
Change
Revenues:
Tuition and fees
-
$
11,429,189
870,842
7.08%
864,094
9.89%
121,525
(121,525)
0.00%
2.86%
7,873,667
$
Ballenger trust
1,841,880
458,736
445,631
13,105
Grants and other
2,444,621
236,060
452,238
(216,178)
70,296,316
21,732,588
20,322,250
1,410,338
6.49%
Salaries and wages
36,801,821
6,150,700
6,046,414
104,286
1.70%
Fringe benefits
14,821,225
2,807,326
3,012,630
(205,304)
-7.31%
Contracted services
4,337,883
750,762
1,105,430
(354,668)
-47.24%
Materials and supplies
1,941,497
319,165
271,531
47,634
14.92%
Total revenues
-91.58%
Expenditures:
Facilities rent
216,628
62,479
56,182
6,297
10.08%
Utilities and insurance
2,910,448
628,892
582,988
45,904
7.30%
Operations/communications
5,658,234
1,029,662
511,562
518,100
50.32%
Transfers
3,249,217
-
366,126
(366,126)
-100.00%
206,313
4,896
12,505
(7,609)
-155.41%
70,143,266
11,753,882
11,965,368
(211,486)
-1.80%
153,050
9,978,706
8,356,882
Capital outlay
Total expenditures
Net increase/(decrease) in net
assets
1,621,824
16.25%
Mott Community College
General Fund
Balance Sheet
September 30, 2008
With Comparative Totals at September 30, 2007
As of
September 30,
2008
Assets
Current Assets
Cash and cash equivalents
Short term investments
Due from other funds
Accounts receivable - net of allowance
for uncollectible accounts ($2,904,193
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
$
3,763,237
15,856,875
-
As of
September 30,
2007
$
3,576,101
52,769
154,873
4,797,613
7,228,366
4,865,421
$
Change
$
3,016,928
46,045
103,420
(1,034,376)
8,628,509
(4,865,421)
559,173
6,724
51,453
$
23,403,855
$
20,057,793
$
3,346,062
$
1,194,676
342,048
16,505
2,707,970
$
1,903,917
873,571
13,393
-
$
(709,241)
(531,523)
3,112
2,707,970
Total Current Liabilities
4,261,199
2,790,881
2,565,725
2,620,458
6,826,924
5,411,339
1,415,585
Net Assets
Unrestricted
16,576,931
14,646,454
1,930,477
Total Net Assets
16,576,931
14,646,454
1,930,477
Accrued termination pay
Total Liabilities
Total Liabilities and Net Assets
$
23,403,855
$
20,057,793
1,470,318
(54,733)
$
3,346,062