Meeting Date: 8/12/15 Item Number: 2.3
Item Title Contact Person
Financial Report – June 2015 Financial Statements Dr. David Bea Executive Vice Chancellor for Finance and Administration (206-4519) Recommendation:
Attached are the financial statements showing preliminary 2014/15 results through June 2015.
Justification:
Summary of Revenues & Expenditures – General & Designated Funds – Actuals vs. Budget:
The preliminary results indicate that Pima Community College concluded June with total year to date revenues in General and Designated funds higher than the previous fiscal year by about $1.4 million. Tuition and fees revenue has decreased by $1.6 million and property tax revenue has increased by about $3.8 million. Overall, year to date actual revenues are lower than the adjusted budget revenue level as shown in the accompanying chart.
Compared with the same time period in fiscal year 2014, actual expenditures have decreased by about $5.5 million. When compared to the same time period of the previous fiscal year, personal services and services and supplies expenditures have increased by about $1.6 million. However, other expenditures have decreased by about $7 million mainly due to a decrease in expenses for Operation and Maintenance of Plant, related to the new Northwest Campus building. Overall, as shown in the accompanying chart, year to date actual expenditures are lower than the adjusted budget expenditure level.
The June preliminary results indicate that total year-to-date revenue in General and Designated funds exceeded total year-to-date expenditures by about $4.9 million, an improvement of about
$6.9 million compared to FY14.
Statement of Revenues, Expenses and Changes in Net Position:
The preliminary results indicate that the College in total concluded June with a year-to-date decrease in net position through month end of about $6.7 million, which is similar to the prior year’s decrease of $6.5 million. Some of the decrease in net position is the result of spending down fund balance for planned capital projects and some is the result of pending grant funding in the restricted funds.
(Continued)
Financial Report – June 2015 Financial Statements Date: 8/12/15 Page 2
Summary of Expenditures – General and Designated Funds:
In terms of budget to actual performance, General and Designated Fund revenues and
expenditures are in line with budget. Personal Services expenditures are 99 percent of budget, which is similar to the previous year. In absolute terms, year to date Personal Services
expenditures were $120 million, which is higher than the same period of fiscal year 2014.
Services and Supplies expenditures are approximately 79.1 percent of the budget, which is lower than the previous year. In absolute terms, Services and Supplies expenditures were $26.3 million, which is slightly higher than the amount from the same period of fiscal year 2014. Transfers are lower than the previous year due to a reduction in the transfers needed for capital projects.
Statement of Net Position:
As shown in The Statement of Net Position, the total net position at the end of June was $200.5 million, which is a decrease of about $8.2 million compared to the same time last year. This represents a decrease in capital assets of $4.7 million for depreciation and an increase in liabilities of $2.1M.
The information provided in this report is preliminary and certain year-end adjustments will be made between now and the conclusion of the audit. These will include adjustments to
receivables, capitalization of assets, miscellaneous accruals, etc. Final year-end results will be presented in more detail to the Board after the annual financial report is completed, which should be in January.
In terms of the audit process timeline, the State Auditor General’s audit team is already working on-site and will be conducting field work through November with the goal of a signed opinion in December.
Approvals
Contact Person________________________________
David Bea, Ph.D.
Chancellor____________________________________
Lee D. Lambert, J.D.
Summary of Revenues & Expenditures ‐ General & Designated Funds ‐ Actuals vs. Budget Year to Date For the Twelve Months Ending June 30, 2015
(Preliminary)
Adjusted Year to Date Year to Date
Annual Budget Actuals % Actuals %
Revenues
Tuition and Fees $ 52,975,370 $ 46,210,167 87.2 % $ 47,784,616 87.8 % State Appropriations 6,493,000 6,493,500 100.0 % 7,136,600 100.0 % Property Taxes 100,327,000 99,227,008 98.9 % 95,415,146 99.0 % Other Revenue 3,676,124 3,594,598 97.8 % 3,742,801 106.9 %
Total Revenues $ 163,471,494 $ 155,525,273 95.1 % $ 154,079,163 95.5 % Expenditures
Personal Services 121,274,869 120,032,196 99.0 % 118,474,851 98.6 % Services and Supplies 33,201,076 26,266,864 79.1 % 26,240,717 82.6 % Other Expenditures 4,949,173 4,324,071 87.4 % 11,357,652 95.5 % Total Expenditures $ 159,425,118 $ 150,623,131 94.5 % $ 156,073,220 95.3 %
FY 2014/15 FY 2013/14
$0
$25,000,000
$50,000,000
$75,000,000
$100,000,000
$125,000,000
$150,000,000
$175,000,000
Jul FY15 Aug FY15 Sep FY15 Oct FY15 Nov FY15 Dec FY15 Jan FY15 Feb FY15 Mar FY15 Apr FY15 May FY15 Jun FY15
General & Designated Funds YTD Revenues vs. Budget
Tuition and Fees State Appropriations Property Taxes
Other Revenues Adjusted Budget Revenue* Year End Revenue Projection
*Adjusted Budget Revenue Excludes Fund Balance
$0
$25,000,000
$50,000,000
$75,000,000
$100,000,000
$125,000,000
$150,000,000
$175,000,000
Jul FY15 Aug FY15 Sep FY15 Oct FY15 Nov FY15 Dec FY15 Jan FY15 Feb FY15 Mar FY15 Apr FY15 May FY15 Jun FY15
General & Designated Funds YTD Expenditures vs. Budget
Personal Services Services and Supplies Other Expenditures
Adjusted Budget Expenditures* Year End Expenditure Projection
* Adjusted Budget Expenditures Excludes Contingency & Reserves
Statement of Revenues, Expenses and Changes in Net Position
Year To Date For Twelve Months Ending June 30, 2015
(Preliminary) FY 2013/14
General & Auxiliary & Prior Year
Designated Restricted Plant & Total Totals as of Funds Funds Other Funds All Funds June 30, 2014 Operating Revenues
Tuition and Fees $ 46,210,167 $ 1,500 $ 1,168,132 $ 47,379,799 $ 49,060,344 Contracts 2,636,771 525 2,637,296 2,550,920
Auxiliary Enterprises 962,999 962,999 1,025,601
Commission and Rents 30,000 204,046 234,046 257,524 Other Operating Revenues 418,213 459,670 130,702 1,008,585 1,161,990 Total Operating Revenues 49,295,151 1,628,740 1,298,834 52,222,725 54,056,379
Nonoperating Revenues
State Appropriations 6,493,500 600,000 7,093,500 7,136,600 Property Taxes 99,227,008 82,855 99,309,863 96,830,495 Federal Grants 18,186 43,021,660 139 43,039,985 45,219,980
State and Local Grants 1,324,427 1,324,427 1,700,770
State Shared Sales Taxes 2,172,160 2,172,160 2,103,956
Gifts 35,498 35,498 519,324
Investment Income 491,428 3,538 40 495,006 503,734 Net Nonoperating Revenues 106,230,122 47,157,283 83,034 153,470,439 154,014,859
Total Revenues $ 155,525,273 $ 48,786,023 $ 1,381,868 $ 205,693,164 $ 208,071,238 Operating Expenses
Educational and General
Instruction 51,126,298 4,049,364 1,171,920 56,347,582 55,783,427 Academic Support 23,933,199 3,735,433 715,366 28,383,998 25,424,606 Student Services 24,613,252 3,556,612 917,206 29,087,070 26,905,879 Institutional Support 33,392,461 (524,732) 2,533,873 35,401,602 39,771,222 Operation and Maintenance of Plant 13,154,960 325,793 3,681,185 17,161,938 19,140,340
Depreciation 7,980,465 7,980,465 7,542,433
Student Financial Aid 1,216,961 35,983,299 37,200,260 39,202,914
Auxiliary Enterprises 951,927 951,927 866,263
Contingency
Total Operating Expenses $ 147,437,131 $ 48,077,696 $ 17,000,015 $ 212,514,842 $ 214,637,084 Income Before Other Expenses $ 8,088,142 $ 708,327 $ (15,618,147) $ (6,821,678) $ (6,565,846)
Transfers (3,186,000) (4,037,696) 7,223,696 Capital Appropriations
Capital Gifts and Grants 105,000 105,000 16,700
Increase (Decrease) in Net Position $ 4,902,142 $ (3,329,369) $ (8,289,451) $ (6,716,678) $ (6,549,146) Net Position
Total Net Position ‐ Beginning of Year 54,633,215 13,383,659 139,210,064 207,226,938 215,250,693
Total Net Position ‐ End of Period $ 59,535,357 $ 10,054,290 $ 130,920,613 $ 200,510,260 $ 208,701,547 Total Net Position ‐ End of Period: Current Year vs. Prior Year $ (8,191,287)
FY 2014/15
Summary of Expenditures ‐ General & Designated Funds ‐ Actuals vs. Budget
Year To Date For Twelve Months Ending June 30, 2015 (Preliminary)
Adjusted Year to Date Available Year to Date
Annual Budget Actuals % Budget Actuals %
Expenditures by Function
Educational and General
Instruction $ 57,475,401 $ 51,126,298 89.0 % $ 6,349,103 $ 51,247,818 87.7 % Academic Support 27,131,139 23,933,199 88.2 % 3,197,940 22,068,295 87.1 % Student Services 26,405,941 24,613,252 93.2 % 1,792,689 22,666,104 95.0 % Institutional Support 34,077,130 33,392,461 98.0 % 684,669 36,001,165 97.0 % Operation and Maintenance of Plant 14,103,658 13,154,960 93.3 % 948,698 12,908,979 95.5 %
Student Financial Aid 1,216,961 1,216,961 100.0 % 942,782 82.9 %
Other Expenses
Transfers 3,195,000 3,186,000 99.7 % 9,000 10,238,077 99.9 %
Fund balance reserved for contingency 10,166,770 10,166,770
Total Expenditures by Function $ 173,772,000 $ 150,623,131 86.7 % $ 23,148,869 $ 156,073,220 88.3 % Expenditures by Account
Personal Services
Administrative Personnel $ 7,016,785 $ 6,803,180 97.0 % $ 213,605 $ 7,001,940 95.4 %
Faculty 23,282,830 23,282,830 100.0 % 22,863,317 98.7 %
Additional Compensation ‐ Faculty 1,028,834 1,028,834 100.0 % 938,780 70.0 %
Adjunct Faculty 13,529,069 13,529,069 100.0 % 13,091,010 100.0 %
Classified Staff 44,800,865 43,771,858 97.7 % 1,029,007 41,859,510 98.8 %
Other Compensation 4,202,559 4,202,559 100.0 % 4,582,652 97.3 %
Student Employment / Workstudy (61) 61
Fringe Benefits 27,413,927 27,413,927 100.0 % 28,137,642 100.0 %
Total Personal Services 121,274,869 120,032,196 99.0 % 1,242,673 118,474,851 98.6 %
Services and Supplies
Communications and Utilities 6,146,320 5,564,901 90.5 % 581,419 5,195,199 91.0 % Travel 2,782,784 1,532,273 55.1 % 1,250,511 1,779,820 72.4 % Contractual Services 13,646,378 11,666,112 85.5 % 1,980,266 11,505,647 87.0 % Supplies and Materials 6,824,770 3,954,148 57.9 % 2,870,622 4,614,394 66.7 % Student Financial Aid 1,302,064 1,216,961 93.5 % 85,103 942,782 82.9 % Current Fixed Charges 2,498,760 2,332,469 93.3 % 166,291 2,202,875 94.7 % Total Services and Supplies 33,201,076 26,266,864 79.1 % 6,934,212 26,240,717 82.6 %
Capital Equipment 464,788 415,112 89.3 % 49,676 425,706 97.0 % Transfers 3,195,000 3,186,000 99.7 % 9,000 10,238,077 99.9 % Other Expenditures 1,289,385 722,959 56.1 % 566,426 576,785 48.1 %
Contingency and Reserves 14,346,882 14,346,882 117,084 0.9 %
Total Expenditures by Account $ 173,772,000 $ 150,623,131 86.7 % $ 23,148,869 $ 156,073,220 88.3 % FY 2013/14 FY 2014/15
Statement of Net Position (formerly Statement of Net Assets) June 30, 2015
(Preliminary) FY 2013/14
General & Auxiliary & Total All Funds
Designated Restricted Plant & Total Prior Year as of
Funds Funds Other Funds All Funds June 30, 2014
Assets Current Assets
Cash and Cash Equivalents $ 27,365,988 $ 9,878,047 $ (754,520) $ 36,489,515 $ 27,313,571
Short‐term Investments 25,068,822 25,068,822 34,723,530
Receivables:
Property Taxes 4,337,510 105,951 4,443,461 4,135,689 Accounts (net of allowances) 4,935,936 4,935,936 5,119,373 Government Grants and Contracts 319,674 319,674 429,156
Student Loans 2,684 2,684 13,070
Other 499,870 10,800 297,115 807,785 722,421
Inventories 132,386 132,386 123,137
Prepaid Expenses 884,268 9,337 893,605 1,339,249 Total Current Assets 63,224,780 10,208,521 (339,433) 73,093,868 73,919,196 Noncurrent Assets
Restricted Cash and Cash Equivalents 1,857,859 1,857,859 1,761,759 Notes Receivable (net of allowances) (258,292) (258,292) 387,788 Other Long‐term Investments 10,594,037 20,000,000 30,594,037 30,673,429 Investments in Capital:
Land 15,291,311 15,291,311 15,291,311
Buildings & Leasehold improvements
(net of depreciation) 87,698,882 87,698,882 82,286,295
Construction in Progress 10,978,882
Equipment (net of depreciation) 5,923,804 5,923,804 5,020,754 Library Books (net of depreciation) 1,837,572 1,837,572 1,832,591 Total Noncurrent Assets 10,594,037 132,351,136 142,945,173 148,232,809
Total Assets $ 73,818,817 $ 10,208,521 $ 132,011,703 $ 216,039,041 $ 222,152,005 Liabilities
Current Liabilities
Accrued Payroll and Benefits 6,059,423 6,059,423 3,738,866
Accounts Payable and Accrued Liabilities 370,424 154,097 342,984 867,505 1,467,097
Deposits Held in Custody 419,565 419,565 402,621
Current Portion of Long‐term Liabilities 4,296,437 4,296,437 4,219,839 Total Current Liabilities 10,726,284 154,097 762,549 11,642,930 9,828,423 Noncurrent Liabilities
Unearned Revenue 5,250 134 328,541 333,925 346,283
Long‐term Liabilities 3,551,926 3,551,926 3,275,752
Total Noncurrent Liabilities 3,557,176 134 328,541 3,885,851 3,622,035
Total Liabilities $ 14,283,460 $ 154,231 $ 1,091,090 $ 15,528,781 $ 13,450,458 Net Position
Net Investment in Capital Assets 110,751,569 110,751,569 115,409,833
Restricted for:
Loans 786,193 786,193 1,440,929
Debt Service 1,840,709 1,840,709 1,789,953
Other (Capital Projects)
Grants and Contracts 977,512 977,512 1,899,441
Unrestricted 59,535,357 9,076,778 17,542,142 86,154,277 88,161,391
Total Net Position $ 59,535,357 $ 10,054,290 $ 130,920,613 $ 200,510,260 $ 208,701,547
Total Net Position: Current Year vs. Prior Year $ (8,191,287)
FY 2014/15
General & Designated Fund Revenue Year to Date Comparison with Prior Year
Tuition and Fees
$46,210,167 30%
State Appropriations
$6,493,500 4%
Property Taxes
$99,227,008 64%
Other Revenues
$3,594,598 2%
General & Designated Funds YTD Revenues ‐ FY15 ‐ Current Year
For the Twelve Months Ending June 30, 2015 Total of $155,525,273
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
Jul FY14 Jul FY15 Aug FY14 Aug FY15 Sep FY14 Sep FY15 Oct FY14 Oct FY15 Nov FY14 Nov FY15 Dec FY14 Dec FY15 Jan FY14 Jan FY15 Feb FY14 Feb FY15 Mar FY14 Mar FY15 Apr FY14 Apr FY15 May FY14 May FY15 Jun FY14 Jun FY15
General & Designated Funds YTD Revenues
Tuition and Fees State Appropriations Property Taxes Other Revenues
Tuition and Fees
$47,784,616 31%
State Appropriations
$7,136,600 5%
Property Taxes
$95,415,146 62%
Other Revenues
$3,742,801 2%
General & Designated Funds YTD Revenues ‐ FY14 ‐ Prior Year
For the Twelve Months Ending June 30, 2014
$154,079,163 Total of
General & Designated Fund Expenditures Year to Date by Program ‐ FY14 ‐ Prior Year
For the Twelve Months Ending June 30, 2014 Total of $156,073,220
Instruction Program ‐ FY15 ‐ Current Year
For the Twelve Months Ending June 30, 2015 Total of $150,623,131
$0
Jul FY14 Jul FY15 Aug FY14 Aug FY15 Sep FY14 Sep FY15 Oct FY14 Oct FY15 Nov FY14 Nov FY15 Dec FY14 Dec FY15 Jan FY14 Jan FY15 Feb FY14 Feb FY15 Mar FY14 Mar FY15 Apr FY14 Apr FY15 May FY14 May FY15 Jun FY14 Jun FY15
General & Designated Funds YTD Expenditures by Program
Instruction Academic Support
Student Services Institutional Support
Operation & Maintenance of Plant Other
General & Designated Fund Expenditures Year to Date Expenditures by Account ‐ FY14 ‐ Prior Year
For the Twelve Months Ending June 30, 2014 Total of $156,073,220
Administrative Personnel Expenditures by Account ‐ FY 15 ‐ Current Year
For the Twelve Months Ending June 30, 2015 Total of $150,623,131
All Funds Revenue & Expenses Year to Date Current Year
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
Jul Revenue Jul Expenses Aug Revenue Aug Expenses Sep Revenue Sep Expenses Oct Revenue Oct Expenses Nov Revenue Nov Expenses Dec Revenue Dec Expenses Jan Revenue Jan Expenses Feb Revenue Feb Expenses Mar Revenue Mar Expenses Apr Revenue Apr Expenses May Revenue May Expenses Jun Revenue Jun Expenses
All Funds YTD Revenues & Expenses ‐ FY15
Nonoperating Revenues Operating Revenues Instruction Academic Support Institutional Support Student Services
Operation & Maintenance of Plant Other
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PimaCountyCommunityCollegeDistrict
Board of Governors
4905C East Broadway/Tucson, Arizona 85709-1010
INFORMATION ITEM
Meeting Date: 8/12/15 Item Number: 2.4
Item Title Contact Person
Administrative Procedure Changes Deborah Yoklic
Assistant Vice Chancellor (206-4650) Information:
For your information, the Chancellor informs the Board of Governors of the following changes to Administrative Procedures. Changes are being made as part of the comprehensive review and reorganization of all policies.
AP 2.18.01 College Compliance Program AP 3.10.05 Academic Fresh Start
AP 6.01.01 Legal Services
AP 9.01.04 College-Issued Mobile Device Security
Approvals
Contact Person
Deborah Yoklic
Deborah Yoklic
Chancellor______________________________________
Lee D. Lambert, J.D.