Mott Community College Board of Trustees Special Organizational Meeting Regular Meeting. Monday, January 28, 2019 Room 1301 Regional Technology Center

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Technology Center AGENDA The mission of Mott Community College is to

opportunities and services that cultivate student success and

1 Mott Community College Board of Trustees Special Organizational Meeting Regular Meeting Monday, January 28, 2019 Room 1301 Regional Technology Center AGENDA The mission of Mott Community College is to provide high quality, accessible, and affordable educational opportunities and services that cultivate student success and individual development and improve the overall quality of life in a multicultural community.

2 Board of Trustees Charles Stewart Mott Community College Special Organizational Meeting, January 28, 2019 Volume 48 2 AGENDA I. CALL TO ORDER II OATH OF OFFICE AND CONGRATULATIONS TO ANDY EVERMAN, MICHAEL FREEMAN, AND MATTHEW NORWOOD - The Honorable Elizabeth Kelly, Genesee County Circuit Court III. IV. ADDITIONS TO THE AGENDA ADOPTION OF THE AGENDA V. COMMENTS FROM THE PUBLIC VI. NEW BUSINESS 1.01 Nomination and Election of Chairperson 1.02 Nomination and Election of Vice-Chairperson 1.03 Nomination and Election of Secretary 1.04 Nomination and Election of Treasurer 1.05 Nomination and Appointment of Assistant Secretary 1.06 Appointment of Legal Counsel Appointment of Finance/Audit and Personnel Committees 1.08 Appointment of Goals and Objectives Ad hoc Committee VII. VIII. COMMENTS FROM BOARD MEMBERS ADJOURNMENT

3 3 I. CALL TO ORDER Board of Trustees Charles Stewart Mott Community College Regular Meeting, January 28, 2019 Volume 48 AGENDA II. III. IV. ADDITIONS TO THE AGENDA ADOPTION OF THE AGENDA CELEBRATING EMPLOYEE AND STUDENT SUCCESS V. SPECIAL PRESENTATIONS Michigan Open Meetings Act - Amberly Brennan, Chief of Staff VetBiz Central - Robert Matthews, Associate Vice President, Workforce and Economic Development Institutional Advancement Quarterly Report - Dale Weighill, Associate Vice President, Institutional Advancement VI. VII. VIII. IX. COMMUNICATIONS COMMENTS FROM THE PUBLIC APPROVAL OF MINUTES Approval of Regular Meeting Minutes of November 19, f Approval of Special Meeting and Special Committee of the Whole of e December 17, 2018 INFORMATIONAL REPORTS Acceptance of Standing Board Committee Reports: 1. Personnel (Joseph, Norwood, Reyes) 2. Finance/Audit (Snell, Everman, Figueroa) Other Reports: 1. Goals & Objectives Committee (Figueroa, Freeman) 2. MCCA Fall Trustee Institute (Figueroa) X. UNFINISHED BUSINESS

4 4 XI. NEW BUSINESS Consent Agenda 1.10 Treasurer s Report for December Individual Items XII. XIII. XIV. ADMINISTRATIVE ITEMS President s Report 11 MISCELLANEOUS BUSINESS Comments from Board Members EXECUTIVE SESSION ADJOURNMENT

5 5 FOR ACTION 1.06 Appointment of Legal Counsel Board of Trustees Charles Stewart Mott Community College Regular Meeting, January 28, 2019 Volume 48 In order to continue the sound business operations of the College, the Board of Trustees will retain a qualified attorney and law firm to handle the legal affairs of the Board and the College. The relationship between the attorney, the Board, and the College is subject to the execution of a retainer agreement and relevant Board policies. Based on the above information, the following resolution is recommended: Be It Resolved, That The Charles Stewart Mott Community College Board of Trustees Approves the appointment of James L. Delaney and the firm of Thomas & Delaney, PC, at 5225 E. Cook Road, Suite F, Grand Blanc, MI as the Legal Counsel for the Board and the College. Reviewed and Submitted by: Michael Simon, Assistant Secretary Date: January 28, 2019 Board Policy Statement Reference: 1710 Board Attorney General: The Board shall retain a qualified attorney or legal firm to handle the legal matters of the Board and the College and to receive such compensation as the Board may provide. The duties of the Board attorney or legal firm shall be prescribed by regulation. The Board Attorney shall be appointed during the Board s biennial organizational meeting.

FOR ACTION 6 1.10 Treasurer s Report for December 2018 This resolution is recommended.

6 FOR ACTION Treasurer s Report for December 2018 This resolution is recommended. Be it Resolved, That Board of Trustees Charles Stewart Mott Community College Regular Meeting, January 28, 2019 Volume 48 The Charles Stewart Mott Community College Board of Trustees Receives the financial report of the College for the month of December 2018 as presented by the Administration. Reviewed and Submitted by: Date: January 28, 2019 Lawrence A. Gawthrop Chief Financial Officer Board Policy Statement Reference: 3100 Budget Adoption General: The 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.

7 December Treasurer s Report 7 Larry Gawthrop, CPA Chief Financial Officer Summary of Expenditures: January 28, 2019 Month of December Spending: General Fund: $ 7,104,495 All Other Funds: $ 2,406,986 Total: $ 9,511,481 Comments on General Fund Financial Statements: Statement of Revenues, Expenditures and Changes in Net Assets In summary, total revenues for the six months ended December 31, were approximately $45 million, representing 59.1% of the annual budget, compared to 57.7% a year ago. The most significant change when compared to the budget and prior year actuals is in Tuition and fees, State of Michigan Retirement and PPT reimbursement, Grants and Other and Transfer from reserve which are discussed further below. Expenditures for the six months were roughly $34.9 million, representing 46% of the annual budget, compared to $33.9 million and 44.8%, one year ago. Revenues Tuition and fees revenues are $26 million, $331 thousand less than last year and down 1.3% from a year ago. Our budget included a 4% decline in enrollment and in contact hours. Our Fall term enrollment was significantly better than what was budgeted and our Winter term is fluctuating close to what was budgeted. Property taxes collected are $7.8 million. The amount budgeted is $18.8 million, $600 thousand or roughly 3.32% more than the fiscal year budget, and is based on final taxable value figures provided by the Genesee County Equalization Department. State appropriations payments for FY are paid in eleven monthly installments starting in October. The total budgeted amount for the current fiscal year is $16.3 million the same as the year, excluding the UAAL stabilization pass-through and PPT Stabilization. Grants and othe revenue increased by $2.1 million compared to the previous year which is a direct result of the Jana B Robinson Trust receipt, with the offset in the operations/communications line as an expenditure when the funds were transferred out to the Foundation for MCC

8 Transfer from reserve account is for the planned transfer from the future funding account. Expenditures Salaries and Wages are roughly $15.9 million, or 42.6% of the annual budget, compared to $15.9 million and 44.2%, a year ago. Fringe Benefits are at $6.9 million, and 44.8% of the budgeted amount compared to $7.2 million and 47.5% of the budget one year ago. Other Expenditures: Contracted services are up roughly $514 thousand from prior year due in large part to custodial contract services and professional fees related to the Robinson trust. The difference in Transfers out is due to timing differences from year to year. Balance Sheet Total Assets are at approximately $23.3 million, down $223 thousand from last December. The largest differences are a $5.5 million increase in Cash and cash equivalents, a $6.4 million increase in Due from other funds, and a net $731 thousand increase in Accounts receivable. The increase in Accounts receivable is largely due to timing of dual enrollment billings. Due to/due from Other Funds result from the College maintaining one checking account for all of its funds; deposits and disbursements. This necessitates the shortterm 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 period. Total Liabilities are down $1.4 million from the prior year. The most significant changes are a $483 thousand increase in Accounts payable, a $2 million decrease in Other Current Liabilities and a $184 thousand increase in Accrued payroll and other liabilities. The increase in Other Current Liabilities represents the reversal of the Title IV audit finding accrued in the prior year. The decrease in Accounts payable is attributable to timing differences in vouchering of invoices and payments released. 8 Comments on spending from other funds: Of the roughly $2.4 million expended in the other funds, $900 thousand was out of the Maintenance and Replacement and Bond funds, for capital related improvements, $392 thousand for depreciation and capital asset related activity and the remaining $1.1 million out of the Agency, Scholarships, and Grants Funds, for grant activities and student scholarships.

9 Mott Community College General Fund Statement of Revenues, Expenditures and Changes in Net Assets - Modified Accrual For the 6 Months Ended December 31, 2018 With Comparative Totals at December 31, Revenues: FY Budget YTD Actuals as of 12/31/18 YTD Actuals as of 12/31/17 Actual to Actual $ Change Actual to Actual % Change Tuition and fees $ 31,180,612 $ 25,961,538 $ 26,292,989 $ (331,451) -1.26% Property taxes 18,850,807 7,828,265 7,958,217 (129,952) -1.63% State appropriations 16,294,420 4,511,487 4,470,369 41, % State appropriations - UAAL Passthrough 3,654, ,729 1,456,819 (591,090) % State appropriations - PPT Stabilization 932, , ,359 (255,075) % Ballenger trust 2,090,770 1,086, , , % Grants and other 1,803,502 3,193,566 1,055,395 2,138, % Transfer from Reserve 1,253,981 1,253, , , % Total revenues 76,061,068 44,978,522 43,163,497 1,815, % Expenditures: Salaries and wages 37,333,360 15,918,201 15,908,961 (9,240) -0.06% Fringe benefits 15,365,047 6,878,117 7,239, , % Fringe benefits - UAAL Passthrough 3,654, ,729 1,456, , % Contracted services 6,358,079 2,947,709 2,433,653 (514,056) % Materials and supplies 2,312, , ,287 53, % Facilities rent 196, , ,059 (59,271) % Utilities and insurance 2,906,908 1,389,202 1,434,395 45, % Operations/communications 5,432,908 3,884,844 2,495,091 (1,389,753) % Transfers out 2,109,824 1,840,911 1,787,267 (53,644) 0.00% Equipment and Improvements 140,912 33,579 34,714 1, % Total expenditures 75,811,068 34,854,847 33,880,651 (974,196) -2.88% Net increase/(decrease) in net assets 250,000 10,123,675 9,282, , %

10 Mott Community College General Fund Balance Sheet - Modified Accrual December 31, 2018 With Comparative Totals at December 31, As of As of December 31 December 31 $ Change Assets Current Assets Cash and cash equivalents $ 21,784,801 $ 16,321,046 $ 5,463,755 Due from other funds (7,646,798) (1,265,340) (6,381,458) Accounts receivable - net of allowance for uncollectible accounts ($6,034,786 for 2018 and $6,124,879 for 2017) 8,983,439 8,252, ,227 Inventories 55,947 70,705 (14,758) Prepaid expenses and other assets 117, ,930 (21,918) Total Assets $ 23,294,401 $ 23,517,553 $ (223,152) Liabilities and Net Assets Current Liabilities Accounts payable $ 988,805 $ 506,193 $ 482,612 Other current liabillities - 2,008,039 (2,008,039) Accrued payroll and related liabilities 2,051,595 1,867, ,200 Deposits held for others 2,875 1, Other accrued liabilities 94, ,766 (67,316) Total Current Liabilities 3,137,725 4,545,387 (1,407,662) Accrued termination pay 2,467,405 2,443,737 23,668 Total Liabilities 5,605,130 6,989,124 (1,383,994) Net Assets Unrestricted 17,689,271 16,528,429 1,160,842 Total Net Assets 17,689,271 16,528,429 1,160,842 Total Liabilities and Net Assets $ 23,294,401 $ 23,517,553 $ (223,152)

11 11 President s Report Regular Board of Trustees Meeting January 28, Institutional Priorities Report 2. Introduction of New Hires 3. Upcoming Dates ***** January 30, 2019 February 2, 2019 February 8, 2019 February 10-13, 2019 February 18, 2019 February 20, 2019 February 25, 2019 MCCA Legislative Summit, Lansing Genesee District Library 18 th Annual Black History Month Brunch, 10 a.m., Genesys Conference and Banquet Center Voices for Children Advocacy Center Children s Champion Awards, 7:30 a.m., Riverfront Banquet Center AACC/ACCT National Legislative Summit, Washington, DC Annual Legislative Briefing, 7:30 a.m., Applewood Café Finance/Audit Committee, 12 p.m., CM1019 Personnel Committee, 4 p.m., CM1019 Board Dinner, 5 p.m., Event Center Committee of the Whole, 6:45 p.m., Event Center Board Meeting, 7:30 p.m., Event Center

Mott Community College Board of Trustees. Monday, January 22, 2018 Applewood Café Prahl College Center

Mott Community College Board of Trustees Regular Meeting Monday, January 22, 2018 Applewood Café Prahl College Center AGENDA The mission of Mott Community College is to provide high quality, accessible,