Mott Community College Board of Trustees. Monday, June 25, 2018 Applewood Café Prahl College Center

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1 Mott Community College Board of Trustees Regular Meeting Monday, June 25, 2018 Applewood Café Prahl College 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 Regular Meeting, June 25, 2018 Volume AGENDA I. CALL TO ORDER II. III. IV. ADDITIONS TO THE AGENDA ADOPTION OF THE AGENDA CELEBRATING EMPLOYEE AND STUDENT SUCCESS V. SPECIAL PRESENTATIONS International Studies Travel Abroad - Dr. Amy Fugate, Vice President, Academic Affairs Year-End Institutional Advancement Report - Dale Weighill, Associate Vice President, Institutional Advancement and Budgets - Larry Gawthrop, Chief Financial Officer Special Acknowledgement and Presentation - Bruin Club of Genesee County V. COMMUNICATIONS VI. VII. VIII. COMMENTS FROM THE PUBLIC APPROVAL OF MINUTES Approval of Regular Meeting Minutes of April 23, h Approval of Special Meeting Minutes of May 7, b Approval of Special Committee of the Whole Minutes of May 21, b Approval of Special Committee of the Whole Minutes of June 18, b INFORMATIONAL REPORTS Acceptance of Standing Board Committee Reports: 1. Personnel (Joseph, Norwood, Reyes) 2. Finance/Audit (Snell, Figueroa, Turner) Other Reports: 1. Goals & Objectives Committee (Turner, Figueroa, Freeman) IX. UNFINISHED BUSINESS

3 X. NEW BUSINESS 348 Consent Agenda 1.77 Treasurer s Report for May Schedule of Regular Meetings for Individual Items Public Hearing Proposed Operating Budget 1.79 Approval of Tax Millage Rates for Budget Amendment Budgets for Adoption Construction Management Services for the Woodside Building Renovations Purchase Award 1.83 Ramps H & J Fire Suppression System Upgrade Purchase Award Financial Aid Process Management Software Purchase Award E-Transcript Service and Fee Increase Approval of Administrative Support Collective Bargaining Agreement 1.87 Approval of Maintenance and Operational Unit Wage Schedule Approval of Economic Opener for Professional-Technical Unit Appointment of Michigan Community College Association (MCCA) 404 Board of Directors Representatives 1.90 American Association of Community Colleges (AACC) 405 Representation 1.91 Association of Community College Trustees (ACCT) 406 Representation XI. XII. XIII. ADMINISTRATIVE ITEMS President s Report 407 MISCELLANEOUS BUSINESS Comments from Board Members EXECUTIVE SESSION ADJOURNMENT

4 349 FOR ACTION 1.77 Treasurer s Report for May 2018 This resolution is recommended. Be it Resolved, That Board of Trustees Charles Stewart Mott Community College Regular Meeting, June 25, 2018 Volume 47 The Charles Stewart Mott Community College Board of Trustees Receives the financial report of the College for the month of May 2018 as presented by the Administration. Reviewed and Submitted by: Date: June 25, 2018 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.

5 May Treasurer s Report 350 Larry Gawthrop, CPA Chief Financial Officer June 25, 2018 Summary of Month of May Spending: General Fund: $ 5,553,002 All Other Funds: $ 3,568,186 Total: $ 9,121,188 Comments on General Fund Financial Statements: Statement of Revenues, Expenditures and Changes in Net Assets In summary, total revenues for the eleven months ended May 31, were approximately $68.5 million, representing 91.1% of the annual budget, 0.7% higher than it was a year ago. The most significant change when compared to the budget and prior year actuals is in Tuition and fees, Property taxes, State Appropriations-UAAL, and Grants and other, which are discussed further below. Expenditures for the eleven months were roughly $62.2 million, representing 83.0% of the annual budget, compared to $61.5 million and 82.8%, one year ago. Revenues Tuition and fees revenues are $32 million, $660 thousand less than last year and 99.1% of the budget, up from 98.9% a year ago. Our budget included a 3% decline in enrollment and in contact hours. The final Winter enrollment numbers were 2.5% and 2.7% lower in headcount and contact hours than budgeted and are adjusted accordingly in the Amended Budget. Property taxes collected are $17.5 million. The amount budgeted is $18.2 million, $448 thousand or roughly 2.5% more than the fiscal year budget, and is based on final taxable value figures provided by the Genesee County Equalization Department. In conversations with the Genesee County Equalization Department, the initial 1% estimate increase has been increased to 2% and a $110 thousand increase for historical increases on the final revolving check. State appropriations payments for FY are paid in eleven monthly installments starting in October. We received our eighth payment as expected without exception. The total budgeted amount for the current fiscal year is $16.3 million up from $16.2 million in the year, excluding the UAAL stabilization passthrough and PPT Stabilization.

6 Expenditures 351 Salaries and Wages are roughly $30.6 million, or 84.6% of the annual budget, compared to $31.1 million and 87.3%, a year ago. Fringe Benefits are at $13.4 million, and 86.2% of the budgeted amount compared to $15.4 million and 86.8% of the budget one year ago. Other Contracted services are up roughly $455 thousand due in large part to new maintenance contract services on necessary and required building systems. Materials and supplies are up roughly $44 thousand, mainly due to timing of lab fees payments to vendors and an increase in water testing expenses. Operations/communications is down approximately $67 thousand mainly due to informational mailings sent in the prior year related to the millage election and a reduction in licensing fees. Balance Sheet Total Assets are at approximately $25.3 million, up $2.9 million from last May. The largest differences are an $11 million increase in Cash and cash equivalents, a $6.8 million decrease in Due from/(to) other funds, and a net $1.4 million decrease in Accounts receivable. The decrease in Accounts Receivable is due in large part to the decrease in enrollment and change in the allowance. 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 up $2.2 million from the prior year. The most significant changes are a $2 million increase in Other current liabilities related to the recording of an estimate for potential fines and penalties related to the Title IV findings in the 6/30/2017 audit, $414 thousand increase in Accounts payable, and a $549 thousand increase in Accrued payroll and related liabilities. Comments on spending from other funds: Of the roughly $3.6 million expended in the other funds, $497 thousand was expended out of the Capital position funds for depreciation and capital asset changes, $790 thousand was out of the Maintenance and Replacement and Bond funds for capital related improvements, and the remaining $2.3 million out of the Agency, Scholarships, and Grants Funds, for grant activities and student scholarships.

7 352 Mott Community College General Fund Statement of Revenues, Expenditures and Changes in Net Assets - Modified Accrual For the 11 Months Ended May 31, 2018 With Comparative Totals at May 31, 2017 FY Budget YTD Actuals as of 05/31/18 YTD Actuals as of 05/31/17 Actual to Actual $ Change Actual to Actual % Change Tuition and fees $ 32,278,443 $ 31,977,923 $ 32,637,990 $ (660,067) -2.02% Property taxes 18,244,690 17,474,096 17,091, , % State appropriations 16,294,420 12,058,285 11,834, , % State appropriations - UAAL Passthrough 3,654,617 2,830,444 2,447, , % State appropriations - PPT Stabilization 532, , ,759 46, % Ballenger trust 1,919,437 1,763,089 1,657, , % Grants and other 2,236,013 1,866,563 1,234, , % Total revenues 75,159,979 68,494,114 67,380,606 1,113, % Salaries and wages 36,222,101 30,630,134 31,144, , % Fringe benefits 15,553,441 13,413,025 13,336,112 (76,913) -0.58% Fringe benefits - UAAL Passthrough 3,654,617 2,830,444 2,447,552 (382,892) % Contracted services 6,910,597 5,243,931 4,789,236 (454,695) -9.49% Materials and supplies 2,367,520 1,597,732 1,553,252 (44,480) -2.86% Facilities rent 191, , ,763 (50,878) % Utilities and insurance 2,724,690 2,429,796 2,373,718 (56,078) -2.36% Operations/communications 5,223,705 3,832,919 3,899,732 66, % Transfers out 1,966,795 1,889,994 1,726,890 (163,104) Equipment and Improvements 74,599 59,755 59,538 (217) -0.36% Total expenditures 74,889,965 62,188,371 61,540,482 (647,889) -1.05% Net increase/(decrease) in net assets 270,014 6,305,743 5,840, , %

8 Mott Community College General Fund Balance Sheet - Modified Accrual May 31, 2018 With Comparative Totals at May 31, As of As of May 31 May 31 $ Change Assets Current Assets Cash and cash equivalents $ 25,503,395 $ 14,467,669 $ 11,035,726 Due from other funds (5,585,528) 1,182,848 (6,768,376) Accounts receivable - net of allowance for uncollectible accounts ($6,401,428 for 2018 and $5,366,683 for 2017) 4,961,120 6,384,618 (1,423,498) Inventories 70,705 56,740 13,965 Prepaid expenses and other assets 328, ,732 95,226 Total Assets $ 25,278,650 $ 22,325,607 $ 2,953,043 Liabilities and Net Assets Current Liabilities Accounts payable $ 476,912 $ 890,596 $ (413,684) Other current liabillities 2,008,039-2,008,039 Accrued payroll and related liabilities 1,988,053 1,439, ,682 Deposits held for others 1,915 12,982 (11,067) Other accrued liabilities 161, ,125 (7,359) Total Current Liabilities 9,404,887 7,278,365 2,126,522 Accrued termination pay 2,322,437 2,264,978 57,459 Total Liabilities 11,727,324 9,543,343 2,183,981 Net Assets Unrestricted 13,551,326 12,782, ,062 Total Net Assets 13,551,326 12,782, ,062 Total Liabilities and Net Assets $ 25,278,650 $ 22,325,607 $ 2,953,043

9 FOR ACTION Schedule of Regular Meetings for Board of Trustees Charles Stewart Mott Community College Regular Meeting, June 25, 2018 Volume 47 The following dates are recommended for regular meetings of the Charles Stewart Mott Community College Board of Trustees for : August 27, 2018 December 10, 2018 (Board Retreat) April 22, 2019 September 24, 2018 January 28, 2019 May 20, 2018 (Board Retreat) October 22, 2018 February 25, 2019 June 24, 2019 November 19, 2018 March 25, 2019 All regular meetings will begin at 7:30 p.m. A Committee of the Whole session may be held at 6:45 p.m. A Special Committee of the Whole session, beginning at 12 p.m., will be held in May and December, for the purposes of a Board retreat. The location for all meetings shall be determined by posted meeting notice. On the basis of the preceding information, the following resolution is recommended. Be it Resolved, That The Charles Stewart Mott Community College Board of Trustees Adopts the above schedule of dates for the regular meetings of the Board of Trustees for Reviewed and Submitted by: Michael Simon Assistant Secretary Date: June 25, 2018 Board Policy Statement Reference: 1500 Board Meetings General: The Board shall transact all business, including information sessions, at public and legally noticed Board meetings.

10 FOR ACTION 355 Board of Trustees Charles Stewart Mott Community College Regular Meeting, June 25, 2018 Volume Approval of Property Tax Millage Rates for Section 141 of the Community College Act (1966 PA331) states: The Board of Trustees shall prepare annually on a day to be determined by the Board in each district, an estimate of the amount of taxes or appropriation deemed necessary for the ensuing fiscal year for the purposes of expenditures authorized by law as within the powers of the Board. The College is authorized and required to levy such ad valorem taxes as may be necessary for the payment of such principal and interest, which taxes may be imposed without limitation as to rate or amount. The Administration has calculated the maximum allowable operating millage rate and desires to levy that rate in accordance with Michigan Compiled Law (MCL) d ( Headlee ) Millage Reduction Fractions, and Truth in Taxation rollbacks under Michigan Compiled Law (MCL) e. Management, in accordance with the Community College Act, has calculated the necessary debt millage rate to be to meet payments of principal, interest, and fees on all outstanding bonds in the fiscal year. On the basis of the preceding information, the following resolution is recommended. Be it Resolved, That The Charles Stewart Mott Community College Board of Trustees Adopts the operating millage rate of mills and the debt millage rate of mills for the fiscal year, and directs Administration to notify all cities, townships, and counties of the new rates forthwith. Reviewed and Submitted by: Date: June 25, 2018 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.

11 FOR ACTION Budget Amendment Board of Trustees Charles Stewart Mott Community College Regular Meeting, June 25, 2018 Volume 47 At the regular meeting of the Charles Stewart Mott Community College Board of Trustees on June 26, 2017, the Board of Trustees adopted the budgets for the fiscal year. In compliance with Public Act 621 of 1978, as amended, known as the Uniform Budgeting and Accounting Act, the Administration has amended the College s budgets to reflect more current estimates of revenues and expenditures. On the basis of the preceding information, the following resolution is recommended. Be it Resolved, That The Charles Stewart Mott Community College Board of Trustees Adopts the Budgets as amended for the fiscal year as shown on pages Reviewed and Submitted by: Date: June 25, 2018 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. (3). Budget revisions will be presented for Board action as necessary, but not less than twice a year, in February and June.

12 357 Mott Community College Larry Gawthrop, CPA CM Chief Financial Officer Budget Amendment June 25, 2018 The budgets have been prepared in accordance with generally accepted accounting principles (GAAP) for financial reporting of colleges and universities, and in compliance with the Uniform Budgeting and Accounting Act of 1978 (Public Act 621 as amended). They are presented as required in MCC Board Policy #3100: Budget Adoption, statement #3. General Fund (01) Tuition and Fees revenue is adjusted downward by $352 thousand or 1.1% from the February amended budget. The decrease is due to less tuition than projected for the Winter and Spring terms. Tuition and fees now make up 44.9% of total budgeted revenues, excluding the UAAL Pass Through as a source of income. Property Tax as a revenue source is now 26.4% of the total budget, including the Property Tax Stabilization payment from the State of Michigan and excluding the UAAL Pass Through. The operating millage rate for FY is mills unchanged from last year s rate. State Aid remains unchanged from the Amended budget and represents 26.7% of total budgeted revenues, including the $3.7 million in the Unfunded Actuarial Accrued Liability (UAAL). Exclusive of the UAAL, State aid represents 22.9% of revenue The above three major revenue sources represent 94.2% of the total budgeted revenues. The remaining 5.8% of revenue sources include investment earnings distributions from the Ballenger Trust fund and Grants and Other income (e.g., rental and auxiliary activities). Total revenues are $348 thousand lower than the February Amended budget.

13 Budget Amendment Page 2 General Fund (01) (continued) Salaries and Wages as an expenditure category is 52.3% of the total budget inclusive of the contracted personnel hired mainly through Kelly services. Fringe Benefits as an expenditure category are 21.5% of the total expense budget, excluding the UAAL pass-through. Total Salaries, Wages and Fringe Benefits in total equal 73.8% of the college s expense budget, within the maximum 77% set by Board Policy. Contracted Services increase was mainly due to vacant positions filled by Kelly temps and an increase in professional fees. Operations and Communications decreased $2.1 million mainly due to the reversing of the potential Financial Aid liability from August of last year. Transfers include required transfers to keep our reserves and Board policy levels, transfers for annual maintenance and repair projects, and for designated scholarships. The net increase of $2.9 million was attributable to the transfer of the potential Financial Aid liability from last August and planned transfers to future funding. All other expenditure categories are not being amended significantly. Total expenditures are $335 thousand, or 0.45% lower than the February amended budget. The General Fund Balance is expected to be $7.5 million at June 30, 2018, an increase of $257 thousand. The revised ending balance represents 10% of the operating budget, within the Board Policy of 5-10% of General Fund expenditures. Designated Fund (02) In the Scholarships Fund, a net revenue reclassification adjustment of $8,724 between rentals and transfers from the GF and a $5 thousand reclassification adjustment was made in the scholarship lines netting a $0 overall adjustment to the net scholarship activity for the year. The Paid Parking and Student Copy Machine revenues were decreased $9,152 to account for the decreased paid parking activity and spending reduction of $25 thousand was made to better reflect actuals as of June 30, The overall positive adjustment was $15,848. The Campus Life Enrichment Fund (CLEF) and Student Clubs were adjusted to actual activities for the year. The Instructional Technology budgets were adjusted to actuals. There are no other significant changes to the budget in the Designated Fund and Rainy Day Fund.

14 Budget Amendment Page 3 Auxiliary Fund (03) Major activities in the Auxiliary Fund are catering, vending, bookstore, and student computer lab pay for print. A $62 thousand decrease was made to catering revenue, and a $165 thousand decrease in the bookstore revenue. These were largely offset by a $68 thousand decrease in catering expenses, and a $156 thousand decrease in the transfer to the General Fund. The Auxiliary account for daycare services is being amended upward by $2 thousand in revenues and $19 thousand in expenses resulting in an overall positive adjustment of $21 thousand. The Auxiliary account for College Initiatives is not being adjusted from the amended budget. Maintenance and Replacement Fund (72) Expenditures within the fund account for ongoing capital repairs, deferred maintenance items and equipment and technology life cycle funding plans. These capital items not eligible for funding from bond proceeds. The most significant changes are the regularly scheduled transfers and amended budget changes for the Student Technology Fees. Debt Retirement Fund (73) The debt retirement fund is a where the restricted tax collections from our debt millage and payments for our outstanding debt are recorded. This fund is required by GASB standards. Building and Site Fund (78) Fund 78 accounts for the building and site fund reserves as required by Board Policy #3930 Fiscal Reserves. This fund reports the installment purchase payments for Lapeer, of which the final payment was made in December The ending fund balance at June 30, 2018 is budgeted to be $1.75 million. Building and Site Fund (84) Fund 84 accounts for the 2016 series bonds issued by the College in March These funds are used for capital projects needs of the college outside of the scope of the General Fund. Bond project costs are amended to reflect the planned spending through the fiscal year. Total bond proceeds for the 84 series were $20 million. Building and Site Fund (85) Fund 85 accounts for the 2018 series bonds issued by the College in February These primary use of these funds are slated for the Culinary Arts Building, SLBC renovation, ECLC and Family Life Center, Ballenger Fieldhouse, and technology upgrades. Bond project costs are amended to reflect the planned spending through the fiscal year. Total bond proceeds for the 85 series were $20 million.

15 MOTT COMMUNITY COLLEGE General Fund (Fund 01) Final Budget Fiscal Year 360 Amend Budget Final Budget $ Change % Change Tuition and Fees $ 32,278,443 $ 31,925,756 $ (352,687) -1.09% Property Taxes 18,244,690 18,244,690 - State Appropriations 16,294,420 16,294,420 - UAAL State Pass Through 3,654,617 3,654,617 - Property Tax Stabilization 532, ,359 - Ballenger Trust 1,919,437 1,919,437 - Grants and Other 1,820,013 1,824,313 4, % Transfer from Reserve 416, ,000 - Total $ 75,159,979 $ 74,811,592 $ (348,387) -0.46% Salaries and Wages $ 36,222,101 $ 34,959,480 $ 1,262, % Fringe Benefits 19,208,058 18,907, , % Contracted Services 6,910,597 7,254,390 (343,793) 4.97% Materials and Supplies 2,367,520 2,389,604 (22,084) 0.93% Facilities Rent 191, ,125 (1,225) 0.64% Utilities and Insurance 2,724,690 2,734,220 (9,530) 0.35% Operations/Communications 5,223,705 3,093,768 2,129, % Transfers Out 1,966,795 4,931,110 (2,964,315) % Equipment and Improvements 74,599 91,414 (16,815) 22.54% Total $ 74,889,965 $ 74,554,488 $ 335, % Surplus/(Deficit): $ 270,014 $ 257,104 $ (12,910) -4.78% Budgeted Increase in Fund Balance $ (250,000) $ (250,000) Final Surplus/(Deficit): $ 20,014 $ 7,104 Ending Net Assets: $ 7,515,597 $ 7,502,687 $ (12,910) -0.17%

16 361 (General Fund,continued) Amend Budget Final Budget $ Change % Change LAPEER* Tuition and Fees $ 1,378,122 $ 1,378,122 $ - Grants and Other 77,548 77,548 - Total $ 1,455,670 $ 1,455,670 $ - Salaries and Wages $ 530,000 $ 530,000 $ - Fringe Benefits 182, ,000 - Materials and Supplies 8,000 8,000 - Operations/Communications 35,700 35,700 - Transfers to Building & Site 50,000 50,000 - Equipment and Improvements 4,000 4,000 - Total $ 809,700 $ 809,700 $ - Surplus/(Deficit): $ 645,970 $ 645,970 $ - Ending Net Assets: $ 645,970 $ 645,970 $ - LIVINGSTON REGIONAL M-TEC* Tuition and Fees $ 511,010 $ 531,010 $ 20, % Grants and Other 74,460 74,460 - Total $ 585,470 $ 605,470 $ 20, % Salaries and Wages $ 155,077 $ 128,418 $ 26, % Fringe Benefits 77,880 62,620 15, % Contracted Services 198, ,894 (25,000) 12.57% Materials and Supplies 65,008 60,008 5, % Operations/Communications 16,532 16,532 - Capital Outlay 4,698 4,698 - Total $ 518,089 $ 496,170 $ 21, % Surplus/(Deficit): $ 67,381 $ 109,300 $ 41, % Ending Net Assets: $ 67,381 $ 109,300 $ 41, %

17 362 (General Fund,continued) Amend Budget Final Budget $ Change % Change LAPEER CORPORATE SERVICES * Tuition and Fees $ 78,500 $ 48,598 $ (29,902) % Grants and Other 7,560 7,560 - Total $ 86,060 $ 56,158 $ (29,902) % Salaries and Wages $ 840 $ 840 $ - Fringe Benefits Contracted Services 40,926 40,926 - Materials and Supplies 11,400 11,400 - Operations/Communications 2,745 2,745 - Total $ 56,158 $ 56,158 $ - Surplus/(Deficit): $ 29,902 $ - $ (29,902) -10 Ending Net Assets: $ 29,902 $ - $ (29,902) -10 * Lapeer, Livingston, and Lapeer Corporate Services budgets are parts of the General Fund budget

18 MOTT COMMUNITY COLLEGE Designated Fund (Fund 02) Final Budget Fiscal Year 363 Amend Budget Final Budget $ Change % Change Scholarships: Mott Memorial Building Rentals $ 88,276 $ 97,000 $ 8, % Transfers from General Fund 615, ,071 (8,724) -1.42% Total $ 704,071 $ 704,071 $ - Athletic Scholarships $ 230,000 $ 235,000 $ (5,000) 2.17% Trustee Scholarships 366, ,071 - Senior Citizens Scholarships 38,000 38,000 - Presidential Scholarships 10,000 5,000 5,000-5 Honors Scholarships 60,000 60,000 - Total $ 704,071 $ 704,071 $ - Surplus/(Deficit): $ - $ - $ - Ending Net Assets: $ - $ - $ - Paid Parking and Student Copy Machines: Paid Parking Fees $ 53,000 $ 43,948 $ (9,052) % Student Copy Machine Fees (100) -5 Total $ 53,200 $ 44,048 $ (9,152) % Capital Outlay $ 100,000 $ 75,000 $ 25, % Total $ 100,000 $ 75,000 $ 25, % Surplus/(Deficit): $ (46,800) $ (30,952) $ 15, % Ending Net Assets: $ 128,021 $ 143,869 $ 15, %

19 364 (Designated Fund, continued) Amend Budget Final Budget $ Change % Change Campus Life Enrichment Fund (CLEF) and Student Clubs: CLEF Student Activity Fees $ 85,000 $ 106,335 $ 21, % CLEF Allocation Transfers 41,000 66,665 25, % Club Fund Raising Proceeds 19,000 36,000 17, % Club Transfers from CLEF - 19,600 19,600 Total $ 145,000 $ 228,600 $ 83, % CLEF Allocations $ 126,000 $ 105,000 $ 21, % CLEF Expenses - 105,000 (105,000) Club Expenses 18,500 60,000 (41,500) % Total $ 144,500 $ 270,000 $ (125,500) 86.85% CLEF Lapeer Surplus/(Deficit): $ 500 $ (41,400) $ (41,900) -838 Ending Net Assets: $ 165,686 $ 123,786 $ (41,900) % CLEF Allocations $ 607 $ 607 $ - Total $ 607 $ 607 $ - Club Allocations $ - $ - $ - Total $ - $ - $ - Honors Club Surplus/(Deficit): $ 607 $ 607 $ - Ending Net Assets: $ 63,644 $ 63,644 $ - CLEF Allocations $ 8,000 $ 8,000 $ - Lab Fees 0 1,500 1,500 Total $ 8,000 $ 9,500 $ % Supplies, Food, Misc $ 8,000 $ 9,500 $ (1,500) 18.75% Total $ 8,000 $ 9,500 $ (1,500) 18.75% Surplus/(Deficit): $ - $ - $ - Ending Net Assets: $ 2 $ 2 $ -

20 365 (Designated Fund, continued) Amend Budget Final Budget $ Change % Change Campus Life Enrichment Fund (CLEF) and Student Clubs: Phi Theta Kappa CLEF Allocations $ 2,600 $ - $ (2,600) -10 Club Fund Raising Activity 0 5,831 5,831 Total $ 2,600 $ 5,831 $ 3, % Non Teaching Support $ - $ - $ - Supplies, Food, Misc 2,000 3,000 (1,000) 5 Total $ 2,000 $ 3,000 $ (1,000) 5 Kappa Beta Delta Surplus/(Deficit): $ 600 $ 2,831 $ 2, % Ending Net Assets: $ 1,923 $ 4,154 $ 2, % CLEF Allocations $ 700 $ - $ (700) -10 Total $ 700 $ - $ (700) -10 Supplies, Food, Misc $ 700 $ - $ Total $ 700 $ - $ Instructional Technology: Surplus/(Deficit): $ - $ - $ - Ending Net Assets: $ 100 $ 100 $ - Student Fees $ 1,390,630 $ 1,390,630 $ - Total $ 1,390,630 $ 1,390,630 $ - Instructional Technology Support $ 42,000 $ 42,000 $ - Mini Grants 22,000 22,000 - Transfers to Maint./Repl. Fund 1,325,052 1,325,052 - Total $ 1,389,052 $ 1,389,052 $ - Surplus/(Deficit): $ 1,578 $ 1,578 $ - Ending Net Assets: $ - $ - $ -

21 366 (Designated Fund, continued) Amend Budget Final Budget $ Change % Change Designated Projects: Pierce Community Fund Pierce Community Activity Fund $ 8,000 $ 8,900 $ % Total $ 8,000 $ 8,900 $ % Growth Alliance Economic Dev. $ - $ - $ - Pierce Community Activity Fund Total $ - $ - $ - Rainy Day Fund Surplus/(Deficit): $ 8,000 $ 8,900 $ % Ending Net Assets: $ 81,442 $ 82,342 $ % Rainy Day Fund Transfer $ - $ - $ - Total $ - $ - $ - Rainy Day Fund $ - $ - $ - Transfer to General Fund Total $ - $ - $ - Future Funding Surplus/(Deficit): $ - $ - $ - Ending Net Assets: $ 750,000 $ 750,000 $ - Transfer from Maintenance & Replacement $ 1,116,000 $ 1,116,000 $ - Transfer from General Fund - 2,963,039 2,963,039 Total $ 1,116,000 $ 4,079,039 $ 2,963, % Transfer to General Fund $ 416,000 $ 416,000 $ - Total $ 416,000 $ 416,000 $ - Surplus/(Deficit): $ 700,000 $ 3,663,039 $ 2,963, % Ending Net Assets: $ 700,000 $ 3,663,039 $ 2,963, %

22 367 (Designated Fund, continued) Amend Budget Final Budget $ Change % Change Student Success Transfer from Maintenance & Replacement $ 912,424 $ 912,424 $ - Total $ 912,424 $ 912,424 $ - Contracted Services $ 25,000 $ 25,000 $ - Food (425) Mini Grant Expenses 144, ,160 - Total $ 169,160 $ 169,585 $ (425) 0.25% Professional Development Surplus/(Deficit): $ 743,264 $ 742,839 $ % Ending Net Assets: $ 743,264 $ 742,839 $ % Transfer from Maintenance & Replacement $ 300,000 $ 300,000 $ - Total $ 300,000 $ 300,000 $ - Mini Grant Expenses $ 9,960 $ 9,960 $ - Total $ 9,960 $ 9,960 $ - Surplus/(Deficit): $ 290,040 $ 290,040 $ - Ending Net Assets: $ 290,040 $ 290,040 $ -

23 MOTT COMMUNITY COLLEGE Auxiliary Fund (Fund 03) Final Budget Fiscal Year 368 Amend Budget Final Budget $ Change % Change Auxiliary Services - Net Transferred to General Fund Catering $ 262,500 $ 200,000 $ (62,500) % Vending 60,000 60,000 - Bookstore 519, ,000 (164,696) % Student Computer Lab 16,000 16,000 - Total $ 858,196 $ 631,000 $ (227,196) % Catering $ 259,650 $ 191,780 $ 67, % Vending Supplies (100) Bookstore Overhead 36,292 30,357 5, % Student Computer Lab 9,000 11,450 (2,450) 27.22% Interfund Transfer 32,000 32,000 - Transfers to General Fund 521, , , % Total $ 858,196 $ 631,000 $ 227, % Surplus/(Deficit): $ - $ - $ - Ending Net Assets: $ - $ - $ -

24 369 (Auxiliary Fund, continued) Amend Budget Final Budget $ Change % Change Day Care Services Day Care Tuition $ 69,863 $ 72,000 $ 2, % Miscellaneous Income Total $ 70,363 $ 72,500 $ 2, % Salaries/Fringes $ 19,370 $ 29,425 $ (10,055) 51.91% Professional Development 2,800 1,200 1, % Accreditation Process 3,450 1,000 2, % Contract Services 65,008 20,000 45, % Printing General Activities 936 1,000 (64) 6.84% Supplies/Materials 2,874 1,000 1, % Rent (500) Indirect Cost - 10,250 (10,250) Mileage % Food 2,050 1, % Food Program Support - 11,215 (11,215) Total $ 97,563 $ 77,740 $ 19, % Surplus/(Deficit): $ (27,200) $ (5,240) $ 21, % Ending Net Assets: $ - $ 21,960 $ 21,960 College Initiatives Interfund Transfer $ 32,000 $ 32,000 $ - Total $ 32,000 $ 32,000 $ - Miscellaneous $ 8,000 $ 8,000 $ - Total $ 8,000 $ 8,000 $ - Surplus/(Deficit): $ 24,000 $ 24,000 $ - Ending Net Assets: $ 42,000 $ 42,000 $ -

25 MOTT COMMUNITY COLLEGE Maintenance and Replacement Fund (Fund 72) Final Budget Fiscal Year 370 Amend Budget Final Budget $ Change % Change Transfer from General Fund $ 797,000 $ 807,000 $ 10, % Transfer from Designated Fund Tech Fee, Net 1,325,052 1,272,050 (53,002) -4.00% Other Revenue 12,865 62,546 49, % Investment Income 32,000 67,692 35, % Total $ 2,166,917 $ 2,209,288 $ 42, % RTC Equipment $ 45,768 $ - $ 45, Vocational Education Equipment 407, ,000 - Instructional Equipment 14,613-14, Vehicle Replacement 10,148-10, Technology Replacement/Upgrade 124,000 1,181,151 (1,057,151) % Technology Fee Equipment 995,036 95, , % Facilities Master Plan 157, ,790 (28,012) 17.75% Workforce Development - 131,131 (131,131) Other Maintenance Projects 365, ,731 (2,291) 0.63% Transfer to Designated Fund 2,328,424 2,328,424 - Total $ 4,448,207 $ 4,697,143 $ (248,936) 5.60% Surplus/(Deficit): $ (2,281,290) $ (2,487,855) $ (206,565) 9.05% Total Net Assets: $ 5,535,688 $ 5,329,123 $ (206,565) -3.73% Less Reserves per Board Policy: (1,722,665) (1,722,665) - Ending Net Assets: $ 3,813,023 $ 3,606,458 $ (206,565)

26 MOTT COMMUNITY COLLEGE Debt Retirement Fund (Fund 73) Final Budget Fiscal Year 371 Amend Budget Final Budget $ Change % Change Property Taxes $ 7,711,213 $ 7,870,164 $ 158, % State Appropriations 219, ,408 - Interest Income 827 7,500 6, % Bond Premium 265, ,173 (35,184) % Total $ 8,196,804 $ 8,327,245 $ 130, % Administrative Fees $ 2,000 $ 2,000 $ - Cost of Issuance on Refunding - 56,036 (56,036) Bond Discount/Deferred Charges 200, ,341 36, % Interest on Indebtedness 1,763,507 1,763,507 - Retirement of Indebtedness 6,280,000 6,280,000 - Total $ 8,246,374 $ 8,265,884 $ (19,510) 0.24% Surplus/(Deficit): $ (49,570) $ 61,361 $ 110, % Ending Net Asset $ (110,931) $ - $ 110,931-10

27 372 MOTT COMMUNITY COLLEGE Building and Site Fund (Fund 78) Final Budget Fiscal Year Amend Budget Final Budget $ Change % Change Board Policy #3930 Transfer from Fund 01 $ 500,000 $ 500,000 $ - Investment Income 10,000 10,000 - Total $ 510,000 $ 510,000 $ - Lapeer Purchase $ 232,958 $ 232,958 $ - Total $ 232,958 $ 232,958 $ - Surplus/(Deficit): $ 277,042 $ 277,042 $ - Ending Net Assets: $ 1,749,591 $ 1,749,591 $ - MOTT COMMUNITY COLLEGE Building and Site Fund (Fund 84) Final Budget Fiscal Year Amend Budget Final Budget $ Change % Change Investment Income $ 80,000 $ 65,000 (15,000) % Miscellaneous Income 175, ,458 92, % Total $ 255,392 $ 332,458 $ 77, % Bond Project Costs $ 7,755,387 $ 9,163,362 $ (1,407,975) 18.15% Total $ 7,755,387 $ 9,163,362 $ (1,407,975) 18.15% Surplus/(Deficit): $ (7,499,995) $ (8,830,904) $ (1,330,909) 17.75% Ending Net Assets: $ 1,514,530 $ 394,576 $ (1,119,954) %

28 MOTT COMMUNITY COLLEGE Building and Site Fund (Fund 85) Final Budget Fiscal Year 373 Amend Budget Final Budget $ Change % Change Proceeds from Series 2018 Bond Sale $ 20,000,000 $ 20,000,000 $ - Investment Income - 10,000 10,000 Total $ 20,000,000 $ 20,010,000 $ 10, % Bond Project Costs $ 3,500,000 $ 6,255,000 $ (2,755,000) 78.71% Bond Issuance Costs 99,160 98, % Total $ 3,599,160 $ 6,353,314 $ (2,754,154) 76.52% Surplus/(Deficit): $ 16,400,840 $ 13,656,686 $ 2,744, % Ending Net Assets: $ 16,400,840 $ 13,656,686 $ 2,744, %

29 FOR ACTION Budgets for Adoption Board of Trustees Charles Stewart Mott Community College Regular Meeting, June 25, 2018 Volume 47 The budgets as presented were prepared using the best estimates of revenues and expenditures available at the time and in accordance with established and generally accepted budgeting procedures. On the basis of the preceding information, the following resolution is recommended. Be it Resolved, That The Charles Stewart Mott Community College Board of Trustees Adopts the budgets for the fiscal year as shown on pages and approves the Schedule of Approved Positions on page 381. Reviewed and Submitted by: Date: June 25, 2018 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. (1). Prior to the end of each fiscal year, the Board will adopt a balanced General Fund Operating Budget, and other fund budgets as appropriate, to the end of the current fiscal year, in accordance with the Uniform Budgeting and Accounting Act of 1968, as amended from time to time.

30 375 Mott Community College Larry Gawthrop, CPA CM Chief Financial Officer Budget Proposal June 25, 2018 The budgets have been prepared in accordance with generally accepted accounting principles (GAAP) for financial reporting of colleges and universities, and in compliance with the Uniform Budgeting and Accounting Act of 1978 (Public Act 621 as amended). They are presented as required in MCC Board Policy #3100: Budget Adoption, statement #1. General Fund (01) Tuition and Fees represent 43.1% of the total revenue budget for , down from 44.9% in This continues to be the largest category of operating revenues for the Colleges. Also included in this category is revenue from all academic credit courses as well as all non-credit courses and training activities, except for grantfunded training projects. Overall tuition and fees are budgeted at $31.2 million, a decrease of $745 thousand, or 2.3% lower than the final amended budget, which is further explained in the following paragraph. Credit-side tuition and fees (main campus, Southern Lakes Site-Fenton, Lapeer, Northern Tier Center and distance learning) are accounted for as a group in the General Fund. The $745 thousand, or 2.3%, decrease was based on an anticipated 4% decrease in credit side enrollment and contact hours for the budget year, and a 2.1% in-district per contact hour rate tuition and all fees for the for the academic year. Property Taxes are budgeted at $18.9 million, 3.3% higher than and comprise 26% of total revenues. The 2018 property taxable values have been published by Genesee County as of May 2018 and administration will recommend that we levy the mandatory Headlee rolled back rate of , as allowed by the Uniform Budgeting Act, which is lower than the levied in the prior year. Based on past collection rates, excesses in the final revolving check, and a 2.1% increase in taxable values next year, an increase of $606 thousand is budgeted as compared to the amended budget. State Aid has decreased as a proportion of total revenues over the past 12 years, from 36% in to 22.5% in , not considering the UAAL Pass-Through. The proposed budget remains at 16.3 million, the same as it was in, although there is legislation pending that we will receive a 0.8% increase, which would total approximately $130 thousand. Also, as in the budget, we received a Property Tax Stabilization payment from the State of Michigan related to the Personal Property Tax appeal. In the current budget year, we have been informed that there will be an increase of approximately $400 thousand. UAAL State Pass-through is the non-discretionary portion of our revenue budget and totals $3.6 million. These revenue sources represent 93.0% of the total revenue budget.

31 Budget Proposal Page Ballenger Trust, and Grants and Other revenue sources contribute the remaining 7.0% of the proposed budget. This category includes investment earnings from the Ballenger Trust fund, which is forecast to increase approximately $171 thousand for Exact distribution figures will be calculated by Huntington Bank as trust administrator in July This endowment fund is budgeted to bring approximately $2.1 million in unrestricted revenue to the College for , some of which will fund the Ballenger Speaker Series and the Ballenger Chair activities. The Grants and Other include a $400,000 contribution, from the Foundation for Mott Community College (FMCC) and marks the eighth consecutive year the FMCC has made a general fund contribution to the college. Other income sources are facilities rentals, indirect cost recovery, auxiliary transfers, and future funding transfers. The future funding transfers are surpluses from prior years that are transferred into the general fund. Salaries and Wages are about 54.0% of the total expenditure budget, including contracted personnel. The Schedule of Board Authorized positions provides information as to the departments where the authorized positions reside. Fringe Benefits as an expenditure category is about 21.3% of the total expense budget, excluding the Unfunded Actuarial Accrued Liability (UAAL) pass-through from the State of Michigan. Total Salaries, Wages and Fringe Benefits in total is 75.3% of the expenditure budget, within the 77% target set by Board Policy. Fringe Benefits are projected to increase by roughly $112 thousand or 0.6% from the final budget. This increase is comprised of the employer portion of the hard cap medical insurance increases, and a slight increase to the Michigan Public School Employees Retirement System (MPSERS) rates. Contracted Services as an expenditure category is about 8.8% of the budget and is down 12.4% from the final budget due to using a more accurate budgeting method. Materials and Supplies is about 3.2% of the total expenditure budget and is slightly down from the previous year, due mainly to the budgeted decrease in enrollment. Utilities and Insurance as an expenditure category is about 4% of the total expense budget. The proposed budget is slightly higher than the final budget. The budgeted increase accounts for expected continuing rate increases for gas, electricity and water coupled with anticipated energy savings from the work with Cenergistics. Operations/Communications as an expenditure category is about 7.5% of the total expense budget. This represents an increase of about $2.3 million as compared to the final final budget, mainly due to the restoration of the contingencies to beginning of year amounts, and the final budget being substantially lower due to the financial aid liability reversal. Major areas in this category include: AQIP key strategic initiatives, contingency funds for potential legal settlements and emergency repairs, debt write-off, interest costs, collection agency fees, telephone, marketing, printing, travel and professional development, as well as, amounts for potential unknown contingencies. Transfers as an expenditure category includes the planned annual transfer to the Maintenance and Replacement Fund, as well as transfers to our reserves and board designated scholarships. The increase of $2.8 million is due in large part to effects of financial aid contingency in the final budget in the prior year as well as the transfer to the future funding in the prior year budget.

32 Budget Proposal Page 3 Equipment and Improvements as an expenditure category is generally budgeted and charged to the Building and Site Funds with the exception of minor purchases. The ending General Fund Net Assets at June 30, 2018 is projected to be $7.8 million or 10% of General Fund expenditures within the Board Policy requiring 5-10%. Designated Fund (02) This fund includes board designated funding sources for specified activities including Scholarships to students, Paid Parking and Student Copy Machine Operations, Campus Life Enrichment Fund (CLEF), Student Clubs and Designated Projects. In the Scholarships category, we anticipate the same level of scholarship awards from the prior year. Paid Parking and Student Copiers, CLEF and Student Clubs, Instructional Technology Fee, and Designated Projects budget assumptions for are comparable to the fiscal year. The Future Funding transfers to the General Fund includes half of the financial aid liability set aside being returned to help offset an across the board salary increase and the remaining to help balance our current year budget. Student Success and Professional Development funds have no initial budget allocations. Auxiliary Fund (03) Major activities in Auxiliary Fund are food service, catering, bookstore, and vending, which together net a positive return to supplement general fund revenues. The proposed budget includes a net revenue transfer from Auxiliary Fund (03) to General Fund (01) of $340,004, a decrease of $25,309 from the final budget. The Day Care and College Initiative funds are budgeted accordingly based on estimated activity. Maintenance and Replacement Fund (72) This fund is supported with two main sources of revenues transfers of operating dollars from the general fund when available; and transfers from the designated (02) fund of all revenues received from the Instructional Technology Fee, approved by the Board in February The proposed amounts are $797 thousand from the general fund for fixed outlays such as copiers and Perkins match; investment income of $71 thousand; and $1.3 million from the designated fund from the Technology Fee. The Instructional Technology Fee helps to cover costs for instructional computers, support for student computer labs and audio-visual equipment on a life-cycle replacement and upgrade basis. Debt Retirement Fund (73) Principal and interest payments from all existing and new voted bond debt are expected to be $8.2 million in the fiscal year A millage rate of 0.82 is required to make these payments. Property tax revenues for from the debt levy are budgeted at $8 million. The State Appropriation line item is for the amount of reimbursed Personal Property Tax exclusions given by the State of Michigan attributable to the debt levy.

33 Budget Proposal Page 4 Building and Site Funds (78), (84) & (85) Fund 78 accounts for the capital reserve funds specified in Board Policy #3930 Fiscal/Budget Reserves. The balance in the proposed budget will be approximately $2.3 million after a planned transfer of $500 thousand is made in the current year. Fund 84 accounts for the $20 million in 2016 series bonds issued March of It is budgeted to complete the spending for this bond series in the fiscal year. Fund 84 accounts for the final $20 million of the $50 million authorization granted to the college by the taxpayers in November of These were issued in February of The planned expenditures of these bonds is over twenty-four to thirty months and includes The Ballenger Fieldhouse renovation phases II and III, Culinary Arts Institute, SLBC upgrade and renovation, Early Childhood and Family Life Center, as well as technology upgrades and major building renovations.

34 MOTT COMMUNITY COLLEGE General Fund (Fund 01) Original Budget Fiscal Year Final Budget Original Budget $ Change % Change Tuition and Fees 31,925,756 31,180,612 (745,144) -2.33% Property Taxes 18,244,690 18,850, , % State Appropriations 16,294,420 16,294,420 - UAAL State Pass Through 3,654,617 3,654,617 - Property Tax Stabilization 532, , , % Ballenger Trust 1,919,437 2,090, , % Grants and Other 1,824,313 1,803,502 (20,811) -1.14% Transfer from Reserve 416,000 1,253, ,981 Total $ 74,811,592 $ 76,061,068 $ 1,249, % Salaries and Wages $ 34,959,480 $ 37,333,360 $ (2,373,880) 6.79% Fringe Benefits 18,907,377 19,019,664 (112,287) 0.59% Contracted Services 7,254,390 6,358, , % Materials and Supplies 2,389,604 2,312,657 76, % Facilities Rent 193, ,756 (3,631) 1.88% Utilities and Insurance 2,734,220 2,906,908 (172,688) 6.32% Operations/Communications 3,093,768 5,432,908 (2,339,140) 75.61% Transfers Out 4,931,110 2,109,824 2,821, % Equipment and Improvements 91, ,912 (49,498) 54.15% Total $ 74,554,488 $ 75,811,068 $ (1,256,580) 1.69% Surplus/(Deficit): $ 257,104 $ 250,000 $ (7,104) -2.76% Budgeted Increase in Fund Balance $ (250,000) $ (250,000) Final Surplus/(Deficit): $ 7,104 $ - Ending Net Assets: $ 7,502,687 $ 7,752,687 $ 250, % LAPEER* Tuition and Fees $ 1,378,122 $ 1,300,085 $ (78,037) -5.66% Grants and Other 77,548 84,701 7, % Total $ 1,455,670 $ 1,384,786 $ (70,884) -4.87% Salaries and Wages $ 530,000 $ 541,537 $ 11, % Fringe Benefits 182, ,720 4, % Materials and Supplies 8,000 4,082 (3,918) % Operations/Communications 35,700 31,272 (4,428) % Transfers to Building & Site 50,000 73,322 23, % Equipment and Improvements 4,000 2,470 (1,530) % Total $ 809,700 $ 839,403 $ 29, % Surplus/(Deficit): $ 645,970 $ 545,383 $ (100,587) % Ending Net Assets: $ 645,970 $ 545,383 $ (100,587) %

35 380 (General Fund, continued) Final Budget Original Budget $ Change % Change LIVINGSTON REGIONAL M-TEC* Tuition and Fees $ 531,010 $ 539,500 $ 8, % Grants and Other 74,460 74,460 - Total $ 605,470 $ 613,960 $ 8, % Salaries and Wages $ 128,418 $ 112,522 $ (15,896) % Fringe Benefits 62,620 33,541 (29,079) % Contracted Services 223, ,980 (7,914) -3.53% Materials and Supplies 60,008 54,220 (5,788) -9.65% Operations/Communications 16,532 17,550 1, % Capital Outlay 4,698 4,200 (498) % Total $ 496,170 $ 438,013 $ (58,157) % Surplus/(Deficit): $ 109,300 $ 175,947 $ 66, % Ending Net Assets: $ 109,300 $ 175,947 $ 66, % LAPEER CORPORATE SERVICES * Tuition and Fees $ 48,598 $ 58,500 $ 9, % Grants and Other 7,560 3,500 (4,060) % Total $ 56,158 $ 62,000 $ 5, % Salaries and Wages $ 840 $ 225 $ (615) % Fringe Benefits (247) -10 Contracted Services 40,926 34,795 (6,131) % Materials and Supplies 11,400 7,615 (3,785) % Operations/Communications 2,745 3, % Total $ 56,158 $ 46,082 $ (10,076) % Surplus/(Deficit): $ - $ 15,918 $ 15,918 Ending Net Assets: $ - $ 15,918 $ 15,918 * Lapeer, Livingston, and Lapeer Corporate Services budgets are parts of the General Fund budget

36 Mott Community College General Fund (Fund 01) Schedule of Board Authorized Positions For Fiscal Year DEPARTMENT TOTALS Office of the President and Direct Reports Academic Affairs Student Success Total Planned FTE for Budget Year Remaining Unplanned/Unfunded Vacancies Total Board Approved FTE

37 MOTT COMMUNITY COLLEGE Designated Fund (Fund 02) Original Budget Fiscal Year Final Budget Original Budget $ Change % Change Scholarships: Mott Memorial Building Rentals $ 97,000 $ 100,000 $ 3, % Transfers from General Fund 607, ,500 (1,571) -0.26% Total $ 704,071 $ 705,500 $ 1, % Athletic Scholarships $ 235,000 $ 235,000 $ - Trustee Scholarships 366, ,500 (1,429) 0.39% Senior Citizens Scholarships 38,000 38,000 - Presidential Scholarships 5,000 5,000 - Honors Scholarships 60,000 60,000 - Total $ 704,071 $ 705,500 $ (1,429) 0.20% Surplus/(Deficit): $ - $ - $ - Ending Net Assets: $ - $ - $ - Paid Parking and Student Copy Machines: Paid Parking Fees $ 43,948 $ 43,000 $ (948) -2.16% Student Copy Machine Fees Total $ 44,048 $ 43,290 $ (758) -1.72% Capital Outlay $ 75,000 $ 120,000 $ (45,000) 6 Total $ 75,000 $ 120,000 $ (45,000) 6 Surplus/(Deficit): $ (30,952) $ (76,710) $ (45,758) % Ending Net Assets: $ 143,869 $ 67,159 $ (76,710) %

38 383 (Designated Fund, continued) Final Budget Original Budget $ Change % Change Campus Life Enrichment Fund (CLEF) and Student Clubs: CLEF Student Activity Fees $ 106,335 $ 106,268 $ (67) -0.06% CLEF Allocation Transfers 66,665 67, % Club Fund Raising Proceeds 36,000 36,000 - Club Transfers from CLEF 19,600 20, % Total $ 228,600 $ 229,268 $ % CLEF Allocations $ 105,000 $ 78,500 $ 26, % CLEF Expenses 105,000 90,000 15, % Club Expenses 60,000 60,000 - Total $ 270,000 $ 228,500 $ 41, % CLEF Lapeer Surplus/(Deficit): $ (41,400) $ 768 $ (40,632) % Ending Net Assets: $ 123,786 $ 124,554 $ % CLEF Allocations $ 607 $ - $ (607) -10 Total $ 607 $ - $ (607) -10 Club Allocations $ - $ - $ - Total $ - $ - $ - Honors Club Surplus/(Deficit): $ 607 $ - $ Ending Net Assets: $ 63,644 $ 63,644 $ - CLEF Allocations $ 8,000 $ 8,000 $ - Lab Fees 1,500 1,500 - Total $ 9,500 $ 9,500 $ - Supplies, Food, Misc $ 9,500 $ 9,000 $ % Total $ 9,500 $ 9,000 $ % Surplus/(Deficit): $ - $ 500 $ 500 Ending Net Assets: $ 2 $ 502 $

39 384 (Designated Fund, continued) Final Budget Original Budget $ Change % Change Campus Life Enrichment Fund (CLEF) and Student Clubs: Phi Theta Kappa Club Fund Raising Activity $ 5,831 $ 5,000 $ (831) Total $ 5,831 $ 5,000 $ (831) % Supplies, Food, Misc $ 3,000 $ 3,000 $ - Total $ 3,000 $ 3,000 $ - Kappa Beta Delta Surplus/(Deficit): $ 2,831 $ 2,000 $ % Ending Net Assets: $ 4,154 $ 6,154 $ 2, % CLEF Allocations $ - $ - $ - Total $ - $ - $ - Supplies, Food, Misc $ - $ - $ - Total $ - $ - $ - Instructional Technology: Surplus/(Deficit): $ - $ - $ - Ending Net Assets: $ 100 $ 100 $ - Student Fees $ 1,390,630 $ 1,352,769 $ (37,861) -2.72% Total $ 1,390,630 $ 1,352,769 $ (37,861) -2.72% Instructional Technology Support $ 42,000 $ 44,000 $ (2,000) 4.76% Mini Grants 22,000-22, Transfers to Maint./Repl. Fund 1,325,052 1,308,769 16, % Total $ 1,389,052 $ 1,352,769 $ 36, % Surplus/(Deficit): $ 1,578 $ - $ (1,578) -10 Ending Net Assets: $ - $ - $ -

40 385 (Designated Fund, continued) Final Budget Original Budget $ Change % Change Designated Projects: Pierce Community Fund Pierce Community Activity Fund $ 8,900 $ 8,900 $ - Total $ 8,900 $ 8,900 $ - Growth Alliance Economic Dev. $ - $ - $ - Pierce Community Activity Fund Total $ - $ - $ - Rainy Day Fund Surplus/(Deficit): $ 8,900 $ 8,900 $ - Ending Net Assets: $ 82,342 $ 91,242 $ 8, % Rainy Day Fund Transfer $ - $ - $ - Total $ - $ - $ - Rainy Day Fund $ - $ - $ - Transfer to General Fund Total $ - $ - $ - Surplus/(Deficit): $ - $ - $ - Ending Net Assets: $ 750,000 $ 750,000 $ -

41 386 (Designated Fund, continued) Final Budget Original Budget $ Change % Change Future Funding Transfer from Maintenance & Replacement $ 1,116,000 $ - $ (1,116,000) -10 Transfer from General Fund 2,963,039 - (2,963,039) -10 Total $ 4,079,039 $ - $ (1,116,000) -10 Transfer to General Fund $ 416,000 $ 1,253,981 $ (837,981) % Total $ 416,000 $ 1,253,981 $ (837,981) % Student Success Surplus/(Deficit): $ 3,663,039 $ (1,253,981) $ 2,409, % Ending Net Assets: $ 3,663,039 $ 2,409,058 $ (1,253,981) % Transfer from Maintenance & Replacement $ 912,424 $ - $ (912,424) -10 Total $ 912,424 $ - $ (912,424) -10 Contracted Services $ 25,000 $ - $ 25, Food Mini Grant Expenses 144, , Total $ 169,585 $ - $ 169, Professional Development Surplus/(Deficit): $ 742,839 $ - $ 742, Ending Net Assets: $ 742,839 $ 742,839 $ - Transfer from Maintenance & Replacement $ 300,000 $ - $ (300,000) -10 Total $ 300,000 $ - $ (300,000) -10 Mini Grant Expenses $ 9,960 $ - $ 9, Total $ 9,960 $ - $ 9, Surplus/(Deficit): $ 290,040 $ - $ 290, Ending Net Assets: $ 290,040 $ 290,040 $ -

42 MOTT COMMUNITY COLLEGE Auxiliary Fund (Fund 03) Original Budget Fiscal Year Final Budget Original Budget $ Change % Change Auxiliary Services - Net Transferred to General Fund Catering $ 200,000 $ 250,400 $ 50, % Vending 60,000 60,000 - Bookstore 355, ,563 (33,437) -9.42% Student Computer Lab 16,000 16,000 - Total $ 631,000 $ 647,963 $ 16, % Catering $ 191,780 $ 250,400 $ (58,620) 30.57% Vending Supplies Bookstore Overhead 30,357 30, % Student Computer Lab 11,450 11,450 - Interfund Transfer 32,000 16,000 16,000-5 Transfers to General Fund 365, ,004 25, % Total $ 631,000 $ 647,963 $ (16,963) 2.69% Surplus/(Deficit): $ - $ - $ - Ending Net Assets: $ - $ - $ - Auxiliary Services - Day Care Services Day Care Tuition $ 72,000 $ 142,579 $ 70, % Miscellaneous Income Total $ 72,500 $ 143,079 $ 70, % Salaries/Fringes $ 29,425 $ 60,000 $ (30,575) % Professional Development 1,200 2,775 (1,575) % Accreditation/Mbrship Fees/Licensing 1,000 3,450 (2,450) % Contract Services 20,000 55,000 (35,000) % Printing General Activities/Family Engagement 1,000 1,051 (51) 5.10% Office Supplies (600) Supplies/Materials 1,000 2,874 (1,874) % Rent Indirect Cost 10,250 21,150 (10,900) % Mileage Food/Water 1,550 2,050 (500) 32.26% Food Program Support 11,215 13,000 (1,785) 15.92% Total $ 77,740 $ 162,950 $ (85,210) % Surplus/(Deficit): $ (5,240) $ (19,871) $ (25,111) % Ending Net Assets: $ 21,960 $ 2,089 $ (19,871)

43 388 (Auxiliary Fund, continued) Final Budget Original Budget $ Change % Change Auxiliary Services - College Initiatives Interfund Transfer $ 32,000 $ 16,000 $ (16,000) -5 Total $ 32,000 $ 16,000 $ (16,000) -5 Miscellaneous $ 8,000 $ 8,000 $ - Total $ 8,000 $ 8,000 $ - Surplus/(Deficit): $ 24,000 $ 8,000 $ (16,000) Ending Net Assets: $ 42,000 $ 50,000 $ 8, %

44 MOTT COMMUNITY COLLEGE Maintenance and Replacement Fund (Fund 72) Original Budget Fiscal Year Final Budget Original Budget $ Change % Change Transfer from General Fund $ 807,000 $ 797,000 $ (10,000) -1.24% Transfer from Designated Fund Tech Fee, Net 1,272,050 1,256,418 (15,632) -1.23% Other Revenue 62,546 - (62,546) -10 Investment Income 67,692 70,869 3, % Total $ 2,209,288 $ 2,124,287 $ (85,001) -3.85% RTC Equipment $ - $ 45,768 $ (45,768) Vocational Education Equipment 407, ,000 - Instructional Equipment - 14,613 (14,613) Vehicle Replacement - 10,149 (10,149) Technology Replacement/Upgrade 1,181,151 1,424,098 (242,947) 20.57% Technology Fee Equipment 95,915 14,965 80, % Facilities Master Plan 185,790 11, , % Workforce Development 131,131 2, , % Other Maintenance Projects 367, ,575 6, % Transfer to Designated Fund 2,328,424-2,328, Total $ 4,697,142 $ 2,292,873 $ 2,404, % Surplus/(Deficit): $ (2,487,854) $ (168,586) $ 2,319, % Ending Net Assets: $ 5,329,124 $ 5,160,538 $ (168,586) -3.16% Less Reserves per Board Policy: (1,722,665) (1,722,665) - Ending Net Assets: $ 3,606,459 $ 3,437,873 $ (168,586)

45 MOTT COMMUNITY COLLEGE Debt Retirement Fund (Fund 73) Original Budget Fiscal Year Final Budget Original Budget $ Change % Change Property Taxes $ 7,870,164 $ 7,896,065 $ 25, % State Appropriations 219, , , % Interest Income 7,500 2,500 (5,000) % Bond Premium 230, ,977 2, % Total $ 8,327,245 $ 8,550,950 $ 223, % Administrative Fees $ 2,000 $ 2,000 $ - Cost of Issuance on Refunding 56,036 - (56,036) -10 Bond Discount/Deferred Charges 164, ,571 3, % Interest on Indebtedness 1,763,507 1,986, , % Retirement of Indebtedness 6,280,000 6,195,000 (85,000) -1.35% Total $ 8,265,884 $ 8,350,950 $ 85, % Surplus/(Deficit): $ 61,361 $ 200,000 $ 138, % Ending Net Asset $ - $ 200,000 $ 200,000

46 MOTT COMMUNITY COLLEGE Building and Site Fund (Fund 78) Original Budget Fiscal Year Final Budget Original Budget $ Change % Change Board Policy #3930 Transfer from Fund 01 $ 500,000 $ 500,000 $ - Investment Income 10,000 10,000 - Total $ 510,000 $ 510,000 $ - Lapeer Purchase $ 232,958 $ - $ (232,958) -10 Total $ 232,958 $ - $ (232,958) -10 Surplus/(Deficit): $ 277,042 $ 510,000 $ 232, % Ending Net Assets: $ 1,749,591 $ 2,259,591 $ 510, % MOTT COMMUNITY COLLEGE Building and Site Fund (Fund 84) Original Budget Fiscal Year Final Budget Original Budget $ Change % Change Investment Income $ 65,000 $ 5,000 (60,000) % Miscellaneous Income 267,458 - (267,458) -10 Total $ 332,458 $ 5,000 $ (327,458) % Bond Project Costs $ 9,163,362 $ 399,576 $ (8,763,786) % Total $ 9,163,362 $ 399,576 $ (8,763,786) % Surplus/(Deficit): $ (8,830,904) $ (394,576) $ 8,436, % Ending Net Assets: $ 394,576 $ - $ (394,576) -10

47 MOTT COMMUNITY COLLEGE Building and Site Fund (Fund 85) Original Budget Fiscal Year Final Budget Original Budget $ Change % Change Proceeds from Series 2018 Bond Sale $ 20,000,000 $ - $ (20,000,000) -10 Investment Income 10, , , Total $ 20,010,000 $ 120,000 $ (19,890,000) % Bond Project Costs $ 6,255,000 $ 10,140,000 $ 3,885, % Bond Issuance Costs 98,314 - (98,314) -10 Total $ 6,353,314 $ 10,140,000 $ 3,786, % Surplus/(Deficit): $ 13,656,686 $ (10,020,000) $ (23,676,686) % Ending Net Assets: $ 13,656,686 $ 3,696,686 $ (9,960,000) %

48 FOR ACTION 393 Board of Trustees Charles Stewart Mott Community College Regular Meeting, June 25, 2018 Volume Construction Management Services for the Woodside Building Renovations Purchase Award Mott Community College plans to hire a firm to provide construction management services for the renovation of the Woodside Church Building. The construction manager will be required to work with MCC as well as Integrated Design Solutions, the architect for this renovation. Services will include such functions as field supervision, development of work scopes, bidding and awarding contracts (in full accordance with College policy), project oversight, selection of materials, safety, budgeting, scheduling, estimating, obtaining necessary permits, working with appropriate regulatory agencies and labor groups, and coordinating work with MCC as to minimize any interruption to college operations. Eight (8) proposals were received on April 24, External fundraising and public funds through voter approved bond issuance will be used to fund this project. After evaluation of the bids and on the basis of the preceding information, the following resolution is recommended. Be it Resolved, That The Charles Stewart Mott Community College Board of Trustees Authorizes the Administration to award construction management services for the Woodside Building renovations to D W Lurvey Construction, 601 S Grand Traverse, Flint, MI 48502, in the amount of $497, [four hundred ninety-seven thousand nine hundred five dollars and twenty cents]. Reviewed and Submitted by: Date: June 25, 2018 Lawrence A. Gawthrop Chief Financial Officer Date: June 25, 2018 Jody Michael Purchasing Manager Board Policy Statement Reference: 4410 Purchasing General: Purchases should be based on quality and price. Qualified vendors should have the opportunity to bid on College purchases. This policy is established to ensure that sound business practices are followed in the purchase of furnishings, equipment, materials, goods and supplies.

49 394 Contract for Construction Management Services for the Woodside Building Renovations RFP Results April 24, 2018 Vendor D W Lurvey Construction 601 S Grand Traverse Flint, MI Tooles Contracting 535 Griswold Ste 2550 Detroit, MI Barton Malow Company American Dr Southfield, MI Sorensen Gross Company 3407 Torrey Rd Flint, MI George W Auch Construction 735 S Paddock St Pontiac, MI E & L Construction 3040 Airpark Dr. South Flint, MI 4850 Turner Construction Company 535 Griswold Ste 1525 Detroit, MI Bid $ 497, $ 535,296 $ 561,780 $ 710,680 $723,901 $760,080 $1,495,630

50 FOR ACTION 395 Board of Trustees Charles Stewart Mott Community College Regular Meeting, June 25, 2018 Volume Ramps H & J Fire Suppression System Upgrade Purchase Award As part of the on-going repair and maintenance program for the College s parking structures, Mott Community College plans to repair and upgrade the fire suppression system in the lowest two levels of parking ramps H & J. This work includes providing three (3) new fire alarm modules which report to the fire alarm panel, installing new conduit from each valve room to the boiler room, replacing the piping through which the water flows for suppression in the lowest two levels of each ramp, programming new alarm points into the existing fire alarm control panel database and monitoring water flow and pressure. A public request for bids was posted to on May 24, Three (3) bids were received on June 13, Public funds through voter approved bond issuance will be used to fund this project. After evaluation of the bids and on the basis of the preceding information, the following resolution is recommended. Be it Resolved, That The Charles Stewart Mott Community College Board of Trustees Authorizes the Administration to award the Ramp H & J Fire Suppression System Upgrade to Wolverine Fire Protection Co. at 8067 N. Dort Hwy. Mt. Morris, MI in the amount of $380, [three hundred eighty thousand six hundred sixty-nine dollars and zero cents]. Reviewed and Submitted by: Date: June 25, 2018 Lawrence A. Gawthrop Chief Financial Officer Date: June 25, 2018 Jody Michael Purchasing Manager Board Policy Statement Reference: 4410 Purchasing General: Purchases should be based on quality and price. Qualified vendors should have the opportunity to bid on College purchases. This policy is established to ensure that sound business practices are followed in the purchase of furnishings, equipment, materials, goods and supplies.