NOTICE OF REGULAR MEETING ALPENA COMMUNITY COLLEGE BOARD OF TRUSTEES 665 JOHNSON STREET, ALPENA, MICHIGAN. DATE OF NOTICE: October 11, 2013

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1 NOTICE OF REGULAR MEETING ALPENA COMMUNITY COLLEGE BOARD OF TRUSTEES 665 JOHNSON STREET, ALPENA, MICHIGAN DATE OF NOTICE: October 11, 2013 The Alpena Community College Board of Trustees will convene at 7:00 p.m. on Wednesday, October 23, 2013, for its regular monthly meeting. The meeting will be held in the Roger C. Bauer Board Room, Room 400 of the Charles R. Donnelly Natural Resources Center, 665 Johnson Street, on the Alpena Campus. Please note: this date differs from the previously announced regular monthly meeting date of the third Thursday of the month. Alpena Community College provides access for individuals with disabilities to both the Roger C. Bauer Board Room and the Charles R. Donnelly Natural Resources Center. All official proceedings and agendas are kept in the Office of the Board of Trustees, 125-C Besser Technical Center, on the Alpena campus, and can be viewed upon request between the hours of 8:00 a.m. and 4:30 p.m. Monday through Friday. Jay Walterreit Secretary of the Board of Trustees (989)

2 ALPENA COMMUNITY COLLEGE BOARD OF TRUSTEES REGULAR MEETING Wednesday, October 23, 2013, 7:00 p.m. Roger C. Bauer Board Room, Room 400 of the Charles R. Donnelly Natural Resources Center 665 Johnson Street, Alpena, MI ) Call to Order 2) Pledge of Allegiance 3) Approval of Agenda 4) Approval of September 19, 2013, Regular Proceedings 5) Introduction of Guests and Public Comment 6) Communication(s) 7) Board Member and Subcommittee Reports 8) Faculty Report 9) Student Report 10) President s Report 11) Action Items Acceptance of Independently Audited Financial Statements Acceptance of Bid for Snowplowing 12) Information Items Financial Report Personnel Report Gifts and Grants Report 13) New Business 14) Suggested Future Agenda Items 15) Next Regular Meeting: November 21, ) Adjournment

3 2.580 Acceptance of Independently Audited Financial Statements Audits of the financial activities of Alpena Community College were guided by Michigan law and the generally accepted standards of accounting practices adopted by the Government Accounting Standards Board (G.A.S.B.). First, Michigan law, under section 1433 of Chapter 11 governing Michigan community colleges, states, The Board of Trustees shall provide for a system of accounting meeting the approval of the State Board of Education. All accounts shall be filed as required by the State Board of Education, and shall be available at all reasonable times for public inspection as a condition of receiving any state aid for the subsequent fiscal year. Second, the system of accounting authorized by the State Board must meet the standards established by G.A.S.B. The result of the above conditions for conducting the audit is that the firm of Straley, Ilsley, and Lamp, P.C., certified public accountants, has completed the audit of all College financial resources for the year ending June 30, In addition, College staff has analyzed these documents in the context of historical financial circumstances of the institution. A consolidated document detailing both of these analyses recognizes the strong record for internal fiscal accountability that exists at the College, along with an ongoing responsiveness to those issues that would improve financial accounting practices. As a result of these combined efforts to assure prudent management of all College resources, the audit report states: In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of Alpena Community College and its discretely presented component unit as of June 30, 2013, and 2012, and the changes in financial position and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Therefore, The following resolution is proposed: That the Board of Trustees accepts the financial report and approves the fiscal year 2013 audit as submitted by Straley, Ilsley, & Lamp, P.C., and commends all parties for their dialogue and exactness in assuring the audit has been produced in full compliance with state law and the new principles of accounting as adopted by G.A.S.B. It is further noted that appropriate officials at the College are directed to communicate the results of this important process to all interested parties.

4 2.581 Acceptance of Bid for Snowplowing The College requires snow removal periodically throughout the winter to insure that ACC students, employees, and visitors can move around the campuses safely. Pinning down a specific cost for the service is impossible due to the nature of snowfall in Northeast Lower Michigan. The College solicited bids on hourly rates for pick-up truck and front-loader service. To estimate costs for the winter of , actual usage levels from the winter of were applied, since those for and were abnormally low. Two vendors responded to the advertised solicitation as follows: Vendor Rates Actual Hours Using Rates Pick-up Pick-up Totals Rate Usage Front Loader Rate Front Loader Usage Hours Morgan Forest Products Northern Michigan Lawn and Landscape $55.00 $85.00 $19, $2, $23, $85, The flat charge by Northern Michigan Lawn and Landscape is not acceptable since rates were not provided and the total was far greater than the Morgan Forest Products bid. Based both on rates and the satisfactory references, the College recommends Morgan Forest Products to provide snowplowing service. Therefore: The following resolution is proposed: That the Board of Trustees authorizes the appropriate College officials to contract for snowplowing for FY with Morgan Forest Products at the rate of $55 per hour for pick-up truck usage and $85 per hour for front loader usage.

5 3.774 Financial Report Monthly General Fund Revenue and Expense through September 2013 (Year to Year Actual Comparison) The property tax receipts of $539,297 were $14,794 less than those for September This is due to lower property values. Tuition/fee receipts of $3,078,847 are $232,511 less than last year because of lower than anticipated enrollments. State aid for the current year is only $10,075. Only Renaissance Zone funding has been received. The schedule for normal payments starts in October. Instruction costs are up due to wage increases. Student Services expense increased due to a coding correction for a $27,000 Designated Fund invoice. Institutional administration expense is down by $18,432 compared with last September due to lower workers compensation insurance cost and some turnover. Physical Plant expense is up due primarily to timing of $20,000 elevator annual maintenance invoice and other repairs. Net income through the second month of the new fiscal year shows as a gain of $518,308 which is typical for this time of year, when fall tuition receipts have built up. This is lower than last year primarily due to lower tuition and fees received. Monthly General Fund Revenue and Expense through September 2013 (Budget to Actual Comparison) The tuition/fee revenue is 3.5% behind last year s because of less than anticipated enrollments for fall. Outside services is higher this year from increased maintenance and timing of invoices. Advertising is up due to a concerted effort to improve enrollment. Travel percentage is up because the travel budget was cut significantly. Tuition Waivers is higher due to timing of recording athletic waivers. Library books and equipment is up due to timing of purchases. All other categories are in acceptable ranges for this stage of the year. General Fund Month to Month Comparison through August 2013 The Month to Month comparisons are tracking as expected except as described above. Consolidated Income Statement through September 2013 All funds are tracking as expected for this time of year.

6 Alpena Community College General Fund Year to Year Actual Comparison For the Three Months Ending September 30, 2013 YTD Actual YTD Actual FY 2014 FY 2013 Variance Revenue Property Tax 539, ,091 (14,794) Tuition/Fees 3,078,847 3,311,358 (232,511) Sales, Services, and Rent 1,400 3,005 (1,605) State Aid 10, ,075 Federal 33,489 25,911 7,578 Donations 1, ,000 Interest (148) Other (4) Revenue 3,664,546 3,894,955 (230,409) Expense Instruction 1,460,749 1,430,795 29,954 MIS 281, ,114 23,144 Instruction Support 235, ,383 (10,486) Student Services 322, ,441 23,637 Institutional Administration 517, ,279 (18,432) Physical Plant 327, ,421 30,618 Transfers 1, Expenses 3,146,238 3,067,423 78,815 Income 518, ,532 (309,224) Net Assets - Beginning of Year 1,105,301 1,002, ,482 Net Assets - End of Year 1,623,609 1,830,351 (206,742)

7 Alpena Community College Comparative Income Statement General Fund For the Three Months Ending September 30, 2013 FY 2014 FY 2013 Budget YTD Actual Variance Complete Complete Revenue Property Tax 2,540, ,297 (2,001,361) 21.23% 22.04% Tuition/Fees 6,483,680 3,078,847 (3,404,833) 47.49% 50.98% Sales, Services, and Rent 24,000 1,400 (22,600) 5.83% 25.04% State Aid 5,256,841 10,075 (5,246,766) 0.19% 0.00% Federal 108,129 33,489 (74,640) 30.97% 20.22% Donations 50,500 1,000 (49,500) 1.98% 0.00% Interest 2, (2,373) 5.07% 3.06% Other 73, (72,839) 0.43% 0.43% Revenue 14,539,458 3,664,546 (10,874,912) 25.20% 26.98% Expense Salaries 7,888,559 1,609,019 6,279, % 20.95% Fringe Benefits 4,107, ,585 3,208, % 21.39% Outside Services 614, , , % 29.20% Advertising 178,630 61, , % 30.29% Supplies 315,288 35, , % 12.26% Rental 3,000 2,000 1, % 0.00% Utilities 442,314 51, , % 10.52% Telephone 53,000 13,790 39, % 27.34% Postage 50,000 7,235 42, % 19.93% Insurance 172,000 97,003 74, % 60.01% Travel & Mileage 71,200 12,392 58, % 13.76% Tuition Waivers 221, , , % 41.77% Library Books & Equipment 83,140 25,744 57, % 8.55% Other 159,000 4, , % 3.61% Transfers 180,747 1, , % 0.43% Expense 14,539,458 3,146,239 11,393, % 21.25% Income 0 518,307 Net Assets - Beginning of Year 1,105,301 1,105,301 Net Assets - End of Year 1,105,301 1,623,609 Percent of Year Complete 25.00%

8 Alpena Community College General Fund Month to Month Tracking For the Three Months Ending September 30, 2013 July August September October November December January February March April May June YTD Budget Revenue Property Tax 115, ,304 22, ,297 2,540,658 Tuition/Fees 2,598, ,107 (25,004) ,078,847 6,483,680 Sales, Services, and Rent ,400 24,000 State Aid 0 10, ,075 5,256,841 Federal 0 14,038 19, , ,129 Donations 0 1, ,000 50,500 Interest ,500 Other ,150 Revenue 2,714, ,994 17, ,664,546 14,539,458 Expense Salaries 528, , , ,609,019 7,888,559 Fringe Benefits 287, , , ,955 4,107,485 Outside Services 135,345 21,244 66, , ,095 Advertising 16,684 19,348 25, , ,630 Supplies 4,071 14,827 16, , ,288 Rental 2, ,000 3,000 Utilities ,593 27, , ,314 Telephone 432 5,123 8, ,790 53,000 Postage 283 5,206 1, ,235 50,000 Insurance 68,227 2,275 26, , ,000 Travel & Mileage 1,914 4,242 6, ,392 71,200 Tuition Waivers 26,711 71,524 4, , ,000 Library Books & Equipment 5,793 17,046 2, ,744 83,140 Other 212 1,504 2, , ,000 Transfers ,747 Expense 1,077,576 1,017,433 1,051, ,146,239 14,539,458 Income 1,637,302 (85,439) (1,033,554) ,307 0

9 Alpena Community College Consolidated Income Statement For the Three Months Ending September 30, 2013 Current Endow. & Unexp. Maint. & General Designated Auxiliary Unrestricted Restricted Loan S'ship Plant Repl. Debt Property Agency Total Revenue Property Tax 539, , ,297 Tuition/Fees 3,078, ,460 10,000 3,310, , ,437,359 Sales, Services, and Rent 1,400 15, , ,369 (26,465) ,904 State aid 10, , ,075 Local , ,250 State , , ,838 Federal 33, ,489 2,325,723 1,200, ,559,218 Donations 1, , ,915 32, ,477 Interest Other (27,139) (26,588) 0 37, ,697 24,254 Total Revenue 3,664, , ,236 4,444,076 2,309,210 1,237,875 54,753 32, , ,697 8,218,799 Expenditures Salaries 1,609,019 37,123 35,601 1,681, , ,887,407 Fringe Benefits 899,955 15,547 12, , , ,032,378 Outside Services 223,496 5,799 13, ,688 15, ,291 Advertising 61, , ,930 Supplies 35,640 5, , ,824 44, ,570 Rental Utilities 2, , ,000 Telephone 51, , ,014 Postage 13, , ,790 Insurance 7, ,661 15, ,984 Travel & Mileage 97, , ,003 Waivers, Activities, and Dues 12,392 6, ,148 5, ,693 Library Books & Equipment 102,338 4, ,875 1,875,976 1,257,987 67, ,309,796 Other 25,744 72, , , , ,944 Transfers 4, ,041 6, , ,052 44,005 Total Expenditures 3,146, , ,886 3,710,510 2,363,092 1,257,987 67, ,657 19, ,052 7,460,805 Net Revenue (Expense) 518,307 87, , ,566 (53,882) (20,112) (13,205) 32,860 98,671 (19,549) 0 (355) 757,994 Beginning Year Net Assets 1,105,301 13,796 85,581 1,204,678 37,224 4,240 34, , , ,011,945 11,896 15,713,114 Period Ending Net Assets 1,623, , ,931 1,938,244 (16,658) (15,872) 21, , ,094 (19,549) 14,011,945 11,541 16,471,108

10 3.775 Personnel Report New hires, terminations, and status changes for September New Hires: Robert Denny Desgrange, ESP2 PT Toolroom Attendant Autobody, 9/3/13 Rose Wojda, Temporary Art Lab Tech, 9/9/13 Melanie Thomas, FT Nursing Faculty, 9/16/13 Dawn Stone, ESP2 Learning Technology Technician, 9/23/13 Terminations: N/A Status Changes: N/A

11 3.776 Gifts and Grants Report This report reflects the following activity for pledges and gifts received by the College and its Foundation between September 11, 2013, and October 8, TOTAL GIFTS & PLEDGES: $99,557 TOTAL DONORS: 60