FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
September 22, 2008
Volume 40
Treasurer’s Report for August 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 August 2008 as
presented by the Administration.
Reviewed and Submitted By:
_____________________________________
Lawrence A. Gawthrop, Interim CFO
Date: September 22, 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.”
August Treasurer’s Report
Lawrence A.. Gawthrop, CPA
Interim Chief Financial Officer
September 12, 2008
Summary of Expenditures:
Month of August Spending:
General Fund:
All Other Funds:
Total:
$ 7,492,456
$ 7,309,769
----------------$ 14,802,225
========
Comments on General Fund Financial Statements:
•
Statement of Revenues, Expenditures and Changes in Net Assets
In summary, total revenues for the two-month period ended August 31, was
approximately $14.6 million, representing 20.8% of the annual budget. This was slightly
ahead of last year at this time, when we had recognized 19.6% of budgeted revenues and
an increase of 4.2% when comparing actual amounts year over year. Expenditures yearto-date were at $7.5 million dollars, which represents 10.7% of the annual budget. This
was .2% lower in spending than last year at this time when compared to the previous
year’s budget.
Revenues
Tuition and fee revenues are $11.3 million for the two months ended, an increase of $485
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 were $2.8 million through August, 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 is now proposing a 2% increase. The potential effect to us if
this holds will be a decrease of approximately $132,500. There has been no change in this
status since the July Treasurer’s report.
Expenditures
Salaries and wages continue to be slightly lower than last year, and total $3.8 million for
the two months ended August 31. Fringe benefit expenses at approximately $1.9 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 $286 thousand in the Contracted Services line item and an increase of
approximately $500 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 August statement.
The Utilities and insurance and Facilities Rent line item variances are a result of timing
of the August payments made to vendors. 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 August 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 $21.8 million, up $4.7 million from last August. The
largest differences were comprised of a $2.6 million increase in Short-term investments a
$2.0 million increase in Cash and cash equivalents, a $3.2 million increase in Accounts
Receivable, and a $3.1 million decrease in Due from other funds for a total net increase
of $4.7 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 significant 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 $4.4 million, Total Liabilities were down approximately $166 thousand from last
year’s August balance. The most significant changes were in the areas of Accounts
payable, Accrued payroll and related liabilities. The Accounts payable increase and
Accrued payroll and related liabilities decrease were the result of the change in posting
procedures from Follett Bookstore’s and the September invoices for MESSA and Health
Plus being paid in August this year and September last year.
“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 $3.1 million increase in this inter-fund activity.
Comments on spending from other funds:
•
Of the $7.3 million spent in the other funds, $2.2 million was expended out of the Debt
Retirement Fund, $1.9 million out of the Maintenance and Replacement Fund and
Bond Issue 2008 fund for capital improvements, and the significant portion of the 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 2 Months Ended August 31, 2008
With Comparative Totals at August 31, 2007
FY 2008-2009
Original Budget
YTD Actuals as YTD Actuals as
of 8/31/08
of 8/31/07
$
26,413,127
$ 11,313,085
Property taxes
24,437,088
2,775,911
State appropriations
15,159,600
Actual to
Actual $
Change
Actual to
Actual %
Change
Revenues:
Tuition and fees
-
$
10,828,290
2,681,539
-
$
484,795
4.29%
94,372
3.40%
-
0.00%
Ballenger trust
1,841,880
305,824
297,087
8,737
2.86%
Grants and other
2,444,621
193,179
165,044
28,135
14.56%
70,296,316
14,587,999
13,971,960
616,039
4.22%
Salaries and wages
36,801,821
3,826,093
3,916,749
(90,656)
-2.37%
Fringe benefits
14,821,225
1,911,037
1,906,436
4,601
0.24%
Contracted services
4,337,883
416,757
703,404
(286,647)
-68.78%
Materials and supplies
1,941,497
127,306
152,935
(25,629)
-20.13%
Total revenues
Expenditures:
Facilities rent
216,628
50,241
31,873
18,368
36.56%
Utilities and insurance
2,910,448
352,602
497,541
(144,939)
-41.11%
Operations/communications
5,658,234
803,953
303,106
500,847
62.30%
Transfers
3,249,217
-
222,135
(222,135)
-100.00%
206,313
4,468
11,747
(7,279)
-162.91%
70,143,266
7,492,457
7,745,926
(253,469)
-3.38%
153,050
7,095,542
6,226,034
869,508
12.25%
Capital outlay
Total expenditures
Net increase/(decrease) in net
assets
Mott Community College
General Fund
Balance Sheet
August 31, 2008
With Comparative Totals at August 31, 2007
As of
August 31,
2008
Assets
Current Assets
Cash and cash equivalents
Short term investments
Due from other funds
Accounts receivable - net of allowance
for uncollectible accounts ($2,904,193
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
$
4,238,889
11,617,990
1,254,241
As of
August 31,
2007
$
4,508,432
47,588
149,379
2,194,498
8,964,760
4,393,941
$
Change
$
1,320,469
46,045
119,404
3,187,963
1,543
29,975
$
21,816,519
$
17,039,117
$
$
664,691
1,111,934
14,930
-
$
254,214
1,636,176
12,663
-
$
Total Current Liabilities
2,044,391
2,653,230
(3,139,700)
4,777,402
410,477
(524,242)
2,267
-
1,791,555
1,903,053
(111,498)
2,565,725
2,620,458
(54,733)
4,357,280
4,523,511
(166,231)
Net Assets
Unrestricted
17,459,239
12,515,606
4,943,633
Total Net Assets
17,459,239
12,515,606
4,943,633
Accrued termination pay
Total Liabilities
Total Liabilities and Net Assets
$
21,816,519
$
17,039,117
$
4,777,402