FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
August 25, 2008
Volume 40
Treasurer’s Report for July 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 July 2008 as presented by
the Administration.
Reviewed and Submitted By:
_____________________________________
Lawrence A. Gawthrop, Interim CFO
Date: August 25, 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.”
July Treasurer’s Report
Lawrence A. Gawthrop, CPA
Interim Chief Financial Officer
August 13, 2008
Summary of Expenditures:
Month of July Spending:
General Fund:
All Other Funds:
Total:
$ 2,251,025
$ 1,934,637
----------------$ 4,185,662
========
Comments on General Fund Financial Statements:
•
Statement of Revenues, Expenditures and Changes in Net Assets
Typically, July general fund expenditures are the lowest of any month in the fiscal year.
The main reason for the low level of expenditures is that much of the payroll paid in July
is not expensed in July but rather accrued back to June, with the largest part of this accrual
representing full time faculty pay for their fiscal year 07-08 contracts.
In summary, total revenues for the one-month period ended July 31, was approximately
$6.1 million, representing 8.7% of the annual budget. This was slightly ahead of last year
at this time, when we had recognized 8.2 % of budgeted revenues and an increase of 3.6%
when comparing actual amounts year over year. Expenditures year-to-date were at $2.3
million dollars, which represents 3.2% of the annual budget. This was .5% lower in
spending than last year at this time when compared to the previous year’s budget.
Revenues
Tuition and fee revenues are $5.2 million for the one month ended, an increase of $183
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 as of the July reports.
Property taxes were $657 thousand for July, 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.
Expenditures
Salaries and wages are negligibly lower than last year, and total $687 thousand for the
one month ended July. Fringe benefit expenses at approximately $725 thousand are pretty
consistent when compared with the prior year. We currently have four Collective
Bargaining Agreement Contracts open in this fiscal year that will have a future financial
impact.
Other Expenditures
The most significant changes in the Other Expenses area were an decrease of
approximately $325 thousand in the Contracted Services line item and a increase of
approximately $245 thousand in the Operations and Communications line item. As
noted in the budget presentation in June, 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 July
statement.
The Utilities and insurance and Facilities Rent line item variances are a result of timing
of the July 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 July 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 $19.1 million, up $4.6 million from last July. The
largest differences were comprised of a $4.0 million increase in Short-term investments a
$280 thousand increase in Cash and cash equivalents, a $855 thousand increase in
Accounts Receivable, and a $446 thousand decrease in Prepaid expenses and other
assets for a total net increase of $4.6 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. The majority of the increase in Accounts
Receivable is the result of delayed collection procedures following the conversion and the
current year allowance not yet recorded which is estimated to be $700 thousand.
At $5.9 million, Total Liabilities were down approximately $971 thousand from last
year’s July balance. The most significant changes were in the areas of Accounts payable,
Accrued payroll and related liabilities, and Due to other funds. The Accounts payable
and Accrued payroll and related liabilities decreases were the result of invoices from
Follett Bookstore’s summer semester not being received in July as it was the previous
year and the August invoices for MESSA and Health Plus being paid in July this year and
August last year.
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 $1.4 million increase in this inter-fund activity.
Comments on spending from other funds:
•
Of the $1.9 million spent in the other funds, $1.6 million was expended out of the Agency
Scholarships, Federal Grants, for grant activities and student scholarships and 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 1 Month Ended July 31, 2008
With Comparative Totals at July 31, 2007
FY 2008-2009
Original Budget
YTD Actuals as YTD Actuals as
of 7/31/08
of 7/31/07
$
$
Actual to
Actual $
Change
Actual to
Actual %
Change
Revenues:
Tuition and fees
26,413,127
Property taxes
24,437,088
State appropriations
15,159,600
5,207,147
657,230
-
$
5,023,760
579,621
-
$
183,387
3.52%
77,609
11.81%
-
0.00%
2.86%
Ballenger trust
1,841,880
152,912
148,544
4,368
Grants and other
2,444,621
64,101
110,964
(46,863)
70,296,316
6,081,390
5,862,889
Salaries and wages
36,801,821
687,054
Fringe benefits
14,821,225
Contracted services
Materials and supplies
Total revenues
-73.11%
218,501
3.59%
729,116
(42,062)
-6.12%
724,893
714,245
10,648
1.47%
4,337,883
103,652
429,157
(325,505)
1,941,497
51,537
32,378
19,159
Expenditures:
Facilities rent
-314.04%
37.18%
216,628
38,056
10,274
27,782
73.00%
Utilities and insurance
2,910,448
251,825
345,138
(93,313)
-37.05%
Operations/communications
5,658,234
392,169
148,486
243,683
62.14%
Transfers
3,249,217
222,135
(222,135)
Capital outlay
Total expenditures
Net increase/(decrease) in net
assets
-
(1,253)
3,092
-100.00%
206,313
1,839
168.13%
70,143,266
2,251,025
2,629,676
(378,651)
-16.82%
153,050
3,830,365
3,233,213
597,152
15.59%
Mott Community College
General Fund
Balance Sheet
July 31, 2008
With Comparative Totals at July 31, 2007
As of
July 31,
2008
Assets
Current Assets
Cash and cash equivalents
Short term investments
Accounts receivable - net of allowance
for uncollectible accounts ($2,242,371
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
$
2,258,981
13,617,990
As of
July 31,
2007
$
3,054,860
46,045
102,857
1,979,287
9,664,760
$
Change
$
2,199,538
46,045
549,127
279,694
3,953,230
855,322
(446,270)
$
19,080,733
$
14,438,755
$
4,641,978
$
215,940
1,300,420
15,545
1,848,934
$
305,376
1,614,039
12,938
359,041
$
(89,436)
(313,619)
2,607
1,489,893
Total Current Liabilities
3,380,839
2,291,394
2,506,057
2,624,576
(118,519)
5,886,896
4,915,970
970,926
Net Assets
Unrestricted
13,193,837
9,522,785
3,671,052
Total Net Assets
13,193,837
9,522,785
3,671,052
Accrued termination pay
Total Liabilities
Total Liabilities and Net Assets
$
19,080,733
$
14,438,755
1,089,445
$
4,641,978