FOR ACTION
Board of Trustees
Charles Stewart Mott Community College
Regular Meeting,
June 23, 2008
Volume
Treasurer’s Report for May 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 May 2008 as presented
by the Administration.
Reviewed and Submitted By:
_____________________________________
Lawrence A. Gawthrop, Interim CFO
Date: June 23, 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.”
May Treasurer’s Report
Lawrence A. Gawthrop, CPA
Interim Chief Financial Officer
June 13, 2008
Summary of Expenditures:
Month of May Spending:
General Fund:
All Other Funds:
Total:
$ 5,684,029
$ 5,369,708
----------------$ 11,053,737
========
Comments on General Fund Financial Statements:
•
Statement of Revenues, Expenditures and Changes in Net Assets
Total revenues for the eleven month period ending May 31, was approximately $64.5
million, representing 91.5% of the annual budget. This was slightly ahead of last year at
this time, when we had recognized 90.8% of budgeted revenues and an increase of 8.0%
when comparing actual amounts year over year. Expenditures year-to-date were at $54.2
million dollars, which represented 77.1% of the annual budget. This was 4.5% lower in
spending than last year at this time when compared to the previous year’s budget.
Revenues
Tuition and fee revenues are $26.1 million through May an increase of $2.3 million from
last year at this time. The enrollment figures for all semesters were higher than
anticipated causing a majority of the increase.
Property taxes were $22.2 million through May, an increase of $.9 million. There were
no significant collections in May and the total revenues are expected to come in close to
the budgeted figure, as property taxes are recorded on a cash basis and variances are
caused by timing of payments from the various local taxing authorities.
State appropriations payments for FY2007-08 are paid in monthly installments starting
with October. The total allocation for the current year is $16.2 million comprised of
$14.9 million in the general yearly allocation plus the $1.3 million restoration of the
August 2007 payment. We received the May payment as scheduled.
Expenditures
Salaries and wages are approximately $31.8 million, or 1.3% higher when compared to
the prior year. Fringe benefit expenses are also 2.0% higher and are approximately $12.4
million. The final salary and related costs of the labor negotiations is still uncertain at this
time and contingencies remain in the budget.
Other Expenditures
Total expenditures are up 1.75% compared to the prior year and are all tracking as
budgeted. Other than the salary related expenditures, the Contracted Services and
Transfers show the largest whole dollar changes. The increase in the Contracted Services
line item has been addressed in previous Treasurer Reports, and the Transfers decreased
due to a reclassification of Capital Funds in May 2007 which has not yet been recorded in
2008.
•
Balance Sheet
Total Assets were at $23.4 million, up 21.0%, or $4.1 million from last May. The largest
differences were comprised of a $3.1 million increase in Short-term investments a $200
thousand decrease in Cash and cash equivalents, and a $1.3 million increase in Accounts
Receivable for a total increase of $4.0 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 an accounting change in the way the pre-awarded amounts for
student loans are recorded in order to prevent placing student accounts on Person
Restrictions (PERC) hold unnecessarily.
At $6.8 million, Total Liabilities were down 5.7%, or approximately $400 thousand from
last year’s balance through May. The most significant changes were in the areas of
Accrued payroll and related liabilities. This decrease is caused by the timing and number
of the payrolls posting in May.
Comments on spending from other funds:
•
Of the $5.4 million spent in the other funds, $4.4 million came out of the Debt Retirement
Fund and the remaining was from the Restricted Funds, for student financial aid and grant
activities and the Maintenance and Replacement Fund for capital improvements.
Mott Community College
General Fund
Statement of Revenues, Expenditures and Changes in Net Assets
For the 11 Months Ended May 31, 2008
With Comparative Totals at May 31, 2007
Actual to
Actual $
Change
FY 2007-2008 YTD Actuals as YTD Actuals as
Amend-1 Budget
of 5/31/08
of 5/31/07
Actual to
Actual %
Change
Revenues:
Tuition and fees
25,350,606
$ 26,087,447
2,319,507
8.89%
Property taxes
24,493,727
22,212,250
21,347,032
865,218
3.90%
State appropriations
16,278,400
12,266,298
10,677,344
1,588,954
12.95%
Ballenger trust
1,782,525
1,633,981
1,551,330
82,651
5.06%
Grants and other
2,555,700
2,302,541
1,999,636
302,905
13.16%
70,460,958
64,502,517
59,343,282
5,159,235
8.00%
Salaries and wages
36,345,637
31,758,734
31,341,235
417,499
1.31%
Fringe benefits
14,519,348
12,430,092
12,179,282
250,810
2.02%
Contracted services
4,862,882
3,442,244
2,812,051
630,193
18.31%
Materials and supplies
1,940,983
1,451,716
1,323,854
127,862
8.81%
Total revenues
$
$
23,767,940
$
Expenditures:
Facilities rent
196,349
183,547
158,646
24,901
13.57%
Utilities and insurance
2,863,603
2,264,550
2,176,611
87,939
3.88%
Operations/communications
4,234,586
2,043,538
2,037,998
5,540
0.27%
Transfers
5,119,217
547,383
1,168,412
188,863
62,246
49,139
13,107
21.06%
70,271,468
54,184,050
53,247,228
936,822
1.73%
189,490
10,318,467
6,096,054
4,222,413
40.92%
Capital outlay
Total expenditures
Net increase/(decrease) in net
assets
(621,029)
-113.45%
Mott Community College
General Fund
Balance Sheet
May 31, 2008
With Comparative Totals at May 31, 2007
As of
May 31,
2008
Assets
Current Assets
Cash and cash equivalents
Short term investments
Accounts receivable - net of allowance
for uncollectible accounts ($2,355,826
for 2008 and $2,105,939 for 2007)
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
Unearned revenue
$
2,126,361
17,156,710
As of
May 31,
2007
$
3,300,583
46,045
154,350
2,290,204
14,100,800
$
Change
$
2,006,045
92,633
156,495
1,294,538
(46,588)
(2,145)
$
23,362,011
$
19,305,576
$
$
494,558
2,309,645
15,685
1,428,028
$
503,308
2,776,545
12,310
1,286,495
$
Total Current Liabilities
(163,843)
3,055,910
4,056,435
(8,750)
(466,900)
3,375
141,533
4,247,916
4,578,658
(330,742)
2,506,057
2,580,064
(74,007)
6,753,973
7,158,722
(404,749)
Net Assets
Unrestricted
16,608,038
12,146,854
4,461,184
Total Net Assets
16,608,038
12,146,854
4,461,184
Accrued termination pay
Total Liabilities
Total Liabilities and Net Assets
$
23,362,011
$
19,305,576
$
4,056,435