Mott Community College Board of Trustees. Monday, February 26, 2018 Applewood Café Prahl College Center

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1 Mott Community College Board of Trustees Regular Meeting Monday, February 26, 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, February 26, 2018 Volume AGENDA I. CALL TO ORDER II. III. IV. ADDITIONS TO THE AGENDA ADOPTION OF THE AGENDA SPECIAL PRESENTATIONS Celebrating Employee and Student Success Practicing Civility at Mott Community College - Dale Weighill, Associate Vice President, Institutional Advancement V. COMMUNICATIONS VI. VII. VIII. COMMENTS FROM THE PUBLIC APPROVAL OF MINUTES Approval of Regular Meeting Minutes of January 22, g 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) 2. MCCA Fall Trustee Institute (Reyes) 3. National Legislative Summit (Freeman, Turner) IX. UNFINISHED BUSINESS X. NEW BUSINESS Consent Agenda 1.66 Treasurer s Report for January Individual Items 1.67 Budget Amendment Architectural Services for Woodside Building Renovations Purchase Award 1.69 Maintenance Storage Building Purchase Award

3 XI. XII. XIII. 282 ADMINISTRATIVE ITEMS President s Report 313 MISCELLANEOUS BUSINESS Comments from Board Members EXECUTIVE SESSION ADJOURNMENT

4 283 FOR ACTION 1.66 Treasurer s Report for January 2018 This resolution is recommended. Be it Resolved, That Board of Trustees Charles Stewart Mott Community College Regular Meeting, February 26, 2018 Volume 47 The Charles Stewart Mott Community College Board of Trustees Receives the financial report of the College for the month of January 2018 as presented by the Administration. Reviewed and Submitted by: Date: February 26, 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 January Treasurer s Report 284 Larry Gawthrop, CPA Chief Financial Officer February 26, 2018 Summary of Month of January Spending: General Fund: $ 4,663,008 All Other Funds: $ 14,569,410 Total: $ 15,035,718 Comments on General Fund Financial Statements: Statement of Revenues, Expenditures and Changes in Net Assets In summary, total revenues for the seven months ended January 31, were approximately $51.9 million, representing 69.5% of the annual budget, 2.1% 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 seven months were roughly $38.5 million, representing 51.8% of the annual budget, compared to $37.5 million and 50.4%, one year ago. Revenues Tuition and fees revenues are $28 million, $148 thousand less than last year and 85.7% of the budget, up from 85.3% 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 than budgeted and are adjusted accordingly in the Amended Budget. Property taxes collected are $13 million, rounded. The amount budgeted is $17.9 million, $178 thousand or roughly 1% 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 fourth payment as expected and without exception. The total budgeted amount for the current fiscal year is $16.2 million the same as the prior year excluding the UAAL stabilization pass-through and PPT Stabilization.

6 Expenditures 285 Salaries and Wages are roughly $18.2 million, or 49.9% of the annual budget, compared to $17.9 million and 50.3%, a year ago. Fringe Benefits are at $8.2 million, and 53.2% of the budgeted amount compared to $7.9 million and 51.5% of the budget one year ago. Other Contracted services are up roughly $277 thousand due in large part to new maintenance contract services on necessary and required building systems. Materials and supplies are up roughly $116 thousand, mainly due to timing of lab fees payments to vendors and an increase in water testing expenses. Operations/communications is down approximately $224 thousand mainly due to informational mailings sent in the prior year related to the millage election and a reduction in bad debt write-offs. Balance Sheet Total Assets are at approximately $29.4 million, up $4.6 million from last January. The largest differences are a $6 million increase in Cash and cash equivalents, a $1.1 million increase in Due from/(to) other funds, and a net $347 thousand decrease in Accounts receivable. The $347 thousand 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 $3.8 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, $226 thousand increase in Accounts payable, and a $1.5 million increase in Accrued payroll and related liabilities.

7 Comments on spending from other funds: 286 Of the roughly $14.5 million expended in the other funds, $891 thousand was expended out of the Capital position funds for depreciation and capital asset changes, $764 thousand was out of the Maintenance and Replacement and Bond funds for capital related improvements, and the remaining $12.8 million out of the Agency, Scholarships, and Grants Funds, for grant activities and student scholarships.

8 287 Mott Community College General Fund Statement of Revenues, Expenditures and Changes in Net Assets - Modified Accrual For the 7 Months Ended January 31, 2018 With Comparative Totals at January 31, 2017 FY Budget YTD Actuals as of 01/31/18 YTD Actuals as of 01/31/17 Actual to Actual $ Change Actual to Actual % Change Tuition and fees $ 32,644,373 $ 27,991,577 $ 28,139,544 $ (147,967) -0.53% Property taxes 17,975,064 13,006,343 12,366, , % State appropriations 16,229,838 5,948,377 5,894,827 53, % State appropriations - UAAL Passthrough 3,365,384 1,731,544 1,303, , % State appropriations - PPT Stabilization 381, , ,759 55, % Ballenger trust 1,839,873 1,137,697 1,054,802 82, % Grants and other 2,214,928 1,532, , , % Total revenues 74,650,867 51,880,837 50,229,243 1,651, % Salaries and wages 36,526,110 18,216,304 17,929,165 (287,139) -1.60% Fringe benefits 15,330,936 8,154,268 7,917,439 (236,829) -2.99% Fringe benefits - UAAL Passthrough 3,365,384 1,731,544 1,303,476 (428,068) % Contracted services 6,551,011 2,997,227 2,719,972 (277,255) % Materials and supplies 2,227,674 1,083, ,148 (116,215) % Facilities rent 186, , ,088 24, % Utilities and insurance 2,674,470 1,654,120 1,650,917 (3,203) -0.19% Operations/communications 5,495,306 2,717,891 2,942, , % Transfers out 1,936,000 1,787,267 1,791,824 4,557 Equipment and Improvements 99,551 38,702 47,961 9, % Total expenditures 74,392,442 38,543,660 37,457,820 (1,085,840) -2.90% Net increase/(decrease) in net assets 258,425 13,337,177 12,771, , %

9 288 Mott Community College General Fund Balance Sheet - Modified Accrual January 31, 2018 With Comparative Totals at January 31, 2017 As of As of January 31 January 31 $ Change Assets Current Assets Cash and cash equivalents $ 27,438,095 $ 21,396,204 $ 6,041,891 Due from other funds (2,581,093) (1,453,030) (1,128,063) Accounts receivable - net of allowance for uncollectible accounts ($6,124,879 for 2018 and $5,415,889 for 2017) 4,184,863 4,531,439 (346,576) Inventories 70,705 56,540 14,165 Prepaid expenses and other assets 263, ,883 50,000 Total Assets $ 29,376,453 $ 24,745,036 $ 4,631,417 Liabilities and Net Assets Current Liabilities Accounts payable $ 1,318,728 $ 1,092,215 $ 226,513 Other current liabillities 2,008,039 - $ 2,008,039 Accrued payroll and related liabilities 2,968,950 1,433,472 1,535,478 Deposits held for others 1,840 15,897 (14,057) Other accrued liabilities 161, ,125 (7,359) Total Current Liabilities 6,459,323 2,710,709 3,748,614 Accrued termination pay 2,334,370 2,320,764 13,606 Total Liabilities 8,793,693 5,031,473 3,762,220 Net Assets Unrestricted 20,582,760 19,713, ,197 Total Net Assets 20,582,760 19,713, ,197 Total Liabilities and Net Assets $ 29,376,453 $ 24,745,036 $ 4,631,417

10 FOR ACTION Budget Amendment Board of Trustees Charles Stewart Mott Community College Regular Meeting, February 26, 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: February 26, 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.

11 290 Budget Amendment 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 $366 thousand or 1.1% from the original budget. The decrease is due to a lower than projected enrollment and contact hour count for the winter 2018 semester from the original budget adopted in June This decrease was offset partly by a decrease in part-time/overload salary and benefits expense accommodating the lower class offerings. Tuition and fees now make up 43.0% of total budgeted revenues. Property Tax as a revenue source is 24.3% of the total budget. The $270 thousand increase in the amended budget is the result of higher than estimated property values based on recent information from the Genesee County Equalization Department. The operating millage rate for this fiscal year is mills, unchanged from last year s rate. State Aid is increased to reflect the Renaissance Zone Reimbursement that was not included on the original budget. We are anticipating no mid-year cuts or increases in State funding. State aid is 21.7% of total budgeted revenues. UAAL State Pass-Through is increased $289 thousand from the original budget, based on updated information. By law, this source of revenue from the State of Michigan is directly passed through by Mott Community College to the Office of Retirement Services (ORS) for Michigan Public School Employees Retirement System (MPSERS) unfunded pension obligations and represents 4.9% of MCC s revenues. The above three major revenue/funding sources represent 93.9% of the total budget. The remaining 6.1% of revenue sources include investment earnings distributions from the Ballenger Trust fund and Grants and Other income (e.g., federal works study match, rental and auxiliary activities) Total revenues and funding sources excluding the UAAL State Pass-Through are $220 thousand higher than the original budget.

12 Budget Amendment General Fund (01) (continued) 291 Salaries and Wages as an expenditure category is 51.0% of the total budget, including contracted personnel. Fringe Benefits as an expenditure category are 25.7% of the total budget. Total Salaries, Wages and Fringe Benefits including contracted personnel and excluding UAAL Stabilization Pass Through equals 75.5% of the college s expense budget, within the maximum 77% set by Board Policy. The college is continuing work on strategic hiring decisions on vacancies, course section management affecting wages and fringes, and stabilizing the use of student workers. Contracted Services increased roughly $360 thousand due in part to the payments to temporary positions filled due to non-immediate hiring, and increase in professional fees. Material and Supplies increased approximately $140 thousand, mainly due to timing of lab fees payments to vendors and an increase in water testing expenses. Utilities and Insurance increased $50 thousand largely due to the increase in utility costs. Operations and Communications decreased roughly $272 thousand from the original budget as a result of reduction in bad debt write-offs, restoration of the contingency fund at less than the original budget amount and reduced hiring/recruiting expenses. All other expenditure categories are not being amended significantly. The total dollar amount of the aggregated adjustments is an increase of $12 thousand. Total expenditures are $498 thousand higher than the original budget, netting a $12 thousand net increase in overall budget compared to the initial budget. The General Fund Balance is expected to increase for the year with the ending balance with the Board Policy of 5-10% of General Fund expenditures.

13 Budget Amendment Designated Fund (02) 292 In the Scholarships Fund, an upward adjustment of $20 thousand was made to reflect the net scholarship activity for the year so far with an offsetting increase in the transfer from the General Fund. The Campus Life Enrichment Fund (CLEF) and Student Clubs were adjusted $124 thousand downward with an offsetting decrease in CLEF Allocations in anticipated future spending for the remaining of the budget year. The Instructional Technology (Tech Fees) account was lowered by approximately $10 thousand based on initial projections being slightly too high. The result was an adjustment to the transfers to the Maintenance & Replacement Fund where these monies are spent. The Student Success fund includes a $97 thousand increase in the transfer from Maintenance and Replacement Fund mainly due to the unspent mini-grants and CTAG expenses paid from the General Fund now reimbursed to the Student Success Fund. There are no other significant changes to the budget in the Designated Fund. Auxiliary Fund (03) Major activities in the Auxiliary Fund are catering, vending, bookstore, and student computer lab pay for print. The revenues and expenditures were adjusted in these auxiliary areas to reflect decreases in enrollment and activity. The net effect of these and other immaterial adjustments increases the amount transferred to the General Fund from the Auxiliary Fund by approximately $47 thousand making the total budgeted transfer $521 thousand. Day care activities are now included in the auxiliary fund, which represents the non-grant funded portion (cash pay). The activity of the day care has increased with the opening of additional classrooms and is expected to sustain itself. 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 capital items not eligible for funding from bond proceeds. These were adjusted to spending updates for repairs and tech fees midyear. Debt Retirement Fund (73) The Debt Retirement Fund is required to be maintained to service the college s principal and interest payments on its long-term debt. The amended budget is being adjusted to better reflect revenue estimates including the recording of the personal property tax reimbursement from the State of Michigan, the activity of the 2017 refunding and the issuance of the 2018 bonds.

14 Budget Amendment Building and Site Fund (78, 84 & 85) 293 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. The ending fund balance at June 30, 2018 is budgeted to be $1.7 million and meets the Board Policy #3930 range of 1-3% of the college s depreciated assets. Fund 84 accounts for the proceeds and spending of the Series 2016 Bonds. The amended budget reflects an increase investment income of approx. $20 thousand and an increase of $174 thousand in miscellaneous revenue related to an insurance reimbursement. Fund 85 accounts for the final series of our $50 million authorization received in Projects are scheduled to commence in Spring 2018 and finishing in Fall of 2020.

15 MOTT COMMUNITY COLLEGE General Fund (Fund 01) Amend Budget Fiscal Year 294 Current Budget Amend Budget $ Change % Change Tuition and Fees $ 32,644,373 $ 32,278,443 $ (365,930) -1.12% Property Taxes 17,975,064 18,244, , % State Appropriations 16,229,838 16,294,420 64, % UAAL State Pass Through 3,365,384 3,654, , % Property Tax Stabilization 381, , , % Ballenger Trust 1,839,873 1,919,437 79, % Grants and Other 2,214,928 2,236,013 21, % Total $ 74,650,867 $ 75,159,979 $ 509, % Salaries and Wages $ 36,526,110 $ 36,222,101 $ 304, % Fringe Benefits 18,696,228 19,208,058 (511,830) 2.74% Contracted Services 6,551,011 6,910,597 (359,586) 5.49% Materials and Supplies 2,227,674 2,367,520 (139,846) 6.28% Facilities Rent 186, ,900 (5,900) 3.17% Utilities and Insurance 2,674,470 2,724,690 (50,220) 1.88% Operations/Communications 5,495,306 5,223, , % Transfers Out 1,936,000 1,966,795 (30,795) 1.59% Equipment and Improvements 99,551 74,599 24, % Total $ 74,392,350 $ 74,889,965 $ (497,615) 0.67% Surplus/(Deficit): $ 258,517 $ 270,014 $ 11, % Budgeted Increase in Fund Balance $ (250,000) $ (250,000) Final Surplus/(Deficit): $ 8,517 $ 20,014 Ending Net Assets: $ 7,461,353 $ 7,515,584 $ 54, %

16 295 (General Fund,continued) Current Budget Amend Budget $ Change % Change LAPEER* Tuition and Fees $ 1,382,280 $ 1,378,122 $ (4,158) -0.30% Grants and Other 77,548 77,548 - Total $ 1,459,828 $ 1,455,670 $ (4,158) -0.28% Salaries and Wages $ 622,940 $ 530,000 $ 92, % Fringe Benefits 220, ,000 38, % 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 $ 941,274 $ 809,700 $ 131, % Surplus/(Deficit): $ 518,554 $ 645,970 $ 127, % Ending Net Assets: $ 518,554 $ 645,970 $ 127, % LIVINGSTON REGIONAL M-TEC* Tuition and Fees $ 680,395 $ 511,010 $ (169,385) % Grants and Other 74,460 74,460 - Total $ 754,855 $ 585,470 $ (169,385) % Salaries and Wages $ 111,832 $ 155,077 $ (43,245) 38.67% Fringe Benefits 61,767 77,880 (16,113) 26.09% Contracted Services 279, ,894 80, % Materials and Supplies 78,120 65,008 13, % Operations/Communications 17,032 16, % Capital Outlay 4,050 4,698 (648) 16.00% Total $ 552,567 $ 518,089 $ 34, % Surplus/(Deficit): $ 202,288 $ 67,381 $ (134,907) % Ending Net Assets: $ 202,288 $ 67,381 $ (134,907) %

17 296 (General Fund,continued) Current Budget Amend Budget $ Change % Change LAPEER CORPORATE SERVICES * Tuition and Fees $ 123,700 $ 78,500 $ (45,200) % Grants and Other 7,560 7,560 - Total $ 131,260 $ 86,060 $ (45,200) % Salaries and Wages $ 840 $ 840 $ - Fringe Benefits (57) 3 Contracted Services 66,345 40,926 25, % Materials and Supplies 13,740 11,400 2, % Operations/Communications 2,995 2, % Total $ 84,110 $ 56,158 $ 27, % Surplus/(Deficit): $ 47,150 $ 29,902 $ (17,248) % Ending Net Assets: $ 47,150 $ 29,902 $ (17,248) % * Lapeer, Livingston, and Lapeer Corporate Services budgets are parts of the General Fund budget

18 MOTT COMMUNITY COLLEGE Designated Fund (Fund 02) Amend Budget Fiscal Year 297 Original Budget Amend Budget $ Change % Change Scholarships: Mott Memorial Building Rentals $ 99,000 $ 88,276 $ 10, % Transfers from General Fund 585, ,795 (30,795) 5.26% Total $ 684,000 $ 704,071 $ (20,071) 2.93% Athletic Scholarships $ 230,000 $ 230,000 $ - Trustee Scholarships 348, ,071 (18,071) 5.19% Senior Citizens Scholarships 38,000 38,000 - Presidential Scholarships 15,000 10,000 5, % Honors Scholarships 53,000 60,000 (7,000) 13.21% Total $ 684,000 $ 704,071 $ (20,071) 2.93% Surplus/(Deficit): $ - $ - $ (40,142) Ending Net Assets: $ - $ - $ (40,142) Paid Parking and Student Copy machines: Paid Parking Fees $ 68,850 $ 53,000 $ 15, % Student Copy Machine Fees % Total $ 69,550 $ 53,200 $ 16, % Capital Outlay $ 100,000 $ 100,000 $ - Total $ 100,000 $ 100,000 $ - Surplus/(Deficit): $ (30,450) $ (46,800) $ 16, % Ending Net Assets: $ 74,472 $ 128,021 $ 16, %

19 298 (Designated Fund, continued) Original Budget Amend Budget $ Change % Change Campus Life Enrichment Fund (CLEF) and Student Clubs: CLEF Student Activity Fees $ 109,455 $ 85,000 $ 24, % CLEF Allocation Transfers 100,000 41,000 59, % Club Fund Raising Proceeds 35,000 19,000 16, % Club Transfers from CLEF 25,000-25, Total $ 269,455 $ 145,000 $ 124, % CLEF Allocations $ 115,000 $ 126,000 $ (11,000) 9.57% Club Allocations 25,000 18,500 6, % CLEF Expenses 67,000-67, Club Expenses 50,000-50, Total $ 257,000 $ 144,500 $ (4,500) % CLEF Lapeer Surplus/(Deficit): $ 12,455 $ 500 $ 119, % Ending Net Assets: $ 188,756 $ 165,686 $ 131, % CLEF Allocations $ (607) Total $ - $ 607 $ (607) Club Allocations $ - $ - $ - Total $ - $ - $ - Honors Club Surplus/(Deficit): $ - $ 607 $ - Ending Net Assets: $ 56,174 $ 63,644 $ (607) 13.30% CLEF Allocations $ 8,000 $ 8,000 $ - Total $ 8,000 $ 8,000 $ - Non Teaching Support $ - $ - $ - Supplies, Food, Misc 8,000 8,000 - Total $ 8,000 $ 8,000 $ - Surplus/(Deficit): $ - $ - $ - Ending Net Assets: $ 905 $ 2 $ %

20 299 (Designated Fund, continued) Original Budget Amend Budget $ Change % Change Campus Life Enrichment Fund (CLEF) and Student Clubs: Phi Theta Kappa CLEF Allocations $ 1,700 $ 2,600 $ (900) 52.94% Total $ 1,700 $ 2,600 $ (900) 52.94% Supplies, Food, Misc $ 2,000 $ 2,000 - Total $ 2,000 $ 2,000 $ (900) Kappa Beta Delta Surplus/(Deficit): $ (300) $ 600 $ (900) -30 Ending Net Assets: $ 206 $ 1,923 $ (1,800) % CLEF Allocations $ 700 $ 700 $ - Total $ 700 $ 700 $ - Supplies, Food, Misc $ 700 $ 700 $ (1,800) Total $ 700 $ 700 $ (1,800) Instructional Technology: Surplus/(Deficit): $ - $ - $ (1,800) Ending Net Assets: $ 200 $ 100 $ (1,800) -5 Student Fees $ 1,400,150 $ 1,390,630 $ 9, % Total $ 1,400,150 $ 1,390,630 $ 9, % Instructional Technology Support $ 42,000 $ 42,000 $ - Mini Grants - 22,000 (22,000) Transfers to Maint./Repl. Fund 1,358,150 1,325,052 33, % Total $ 1,400,150 $ 1,389,052 $ 11, % Surplus/(Deficit): $ - $ 1,578 $ 20,618 Ending Net Assets: $ - $ - $ 18,818

21 300 (Designated Fund, continued) Original Budget Amend Budget $ Change % Change Designated Projects: Pierce Community Fund Pierce Community Activity Fund $ 8,000 $ 8,000 $ - Total $ 8,000 $ 8,000 $ - Growth Alliance Economic Dev. $ - $ - $ - Total $ - $ - $ - Rainy Day Fund Surplus/(Deficit): $ 8,000 $ 8,000 $ - Ending Net Assets: $ 81,442 $ 81,442 $ - Rainy Day Fund Transfer $ - $ - $ - Total $ - $ - $ - 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 $ - Total $ 1,116,000 $ 1,116,000 $ - Transfer to General Fund $ 416,000 $ 416,000 $ - Total $ 416,000 $ 416,000 $ - Surplus/(Deficit): $ 700,000 $ 700,000 $ - Ending Net Assets: $ 700,000 $ 700,000 $ -

22 301 (Designated Fund, continued) Original Budget Amend Budget $ Change % Change Student Success Transfer from Maintenance & Replacement $ 815,000 $ 912,424 $ (97,424) 11.95% Total $ 815,000 $ 912,424 $ (97,424) 11.95% Contracted Services $ - $ 25,000 $ (25,000) Mini Grant Expenses - 144,160 (144,160) Total $ - $ 169,160 $ (169,160) Professional Development Surplus/(Deficit): $ 815,000 $ 743,264 $ (266,584) -8.80% Ending Net Assets: $ 815,000 $ 743,264 $ (266,584) -8.80% 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): $ 300,000 $ 290,040 $ (9,960) -3.32% Ending Net Assets: $ 300,000 $ 290,040 $ (154,120) -3.32%

23 MOTT COMMUNITY COLLEGE Auxiliary Fund (Fund 03) Amend Budget Fiscal Year 302 Original Budget Amend Budget $ Change % Change Auxiliary Services - Net Transferred to General Fund Catering $ 258,000 $ 262,500 $ 4, % Vending 70,966 60,000 (10,966) % Bookstore 460, ,696 58, % Student Computer Lab 21,569 16,000 (5,569) % Total $ 811,253 $ 858,196 $ 46, % Catering $ 251,826 $ 259,650 $ 7, % Vending Supplies (365) -10 Bookstore Overhead 36,292 36,292 - Student Computer Lab 15,030 9,000 (6,030) % Interfund Transfer 8,000 32,000 24, Transfers to General Fund 499, ,254 21, % Total $ 811,253 $ 858,196 $ 46, % Surplus/(Deficit): $ - $ - $ - Ending Net Assets: $ - $ - $ - Auxiliary Services - College Initiatives Interfund Transfer $ 8,000 $ 32,000 $ 24, Total $ 8,000 $ 32,000 $ 24, Miscellaneous $ 8,000 $ 8,000 $ - Total $ 8,000 $ 8,000 $ - Surplus/(Deficit): $ - $ 24,000 $ 24,000 Ending Net Assets: $ 42,000 $ 42,000 $ 24,000

24 303 (Auxiliary Fund, continued) Original Budget Amend Budget $ Change % Change Auxiliary Services - Day Care Services Day Care Tuition $ 42,142 $ 69,863 $ 27, % Miscellaneous Income Total $ 42,642 $ 70,363 $ 27, % Salaries/Fringes $ 31,700 $ 19,370 $ (12,330) % Professional Development 2,800 2,800 - Accreditation Process 160 3,450 3, % Contract Services 31,000 65,008 34, % Printing General Activities 2, (1,664) % Supplies/Materials 2,500 2, % Rent 3,250 - (3,250) -10 Mileage % Food 2,500 2,050 (450) % Food Program Support 9,204 - (9,204) -10 Total $ 86,714 $ 97,563 $ 10, % Surplus/(Deficit): $ (44,072) $ (27,200) $ 16, % Ending Net Assets: $ - $ - $ -

25 MOTT COMMUNITY COLLEGE Maintenance and Replacement Fund (Fund 72) Amend Budget Fiscal Year 304 Original Budget Amend Budget $ Change % Change Transfer from General Fund $ 797,000 $ 797,000 $ - Transfer from Designated Fund (Tech Fee) 1,358,150 1,325,052 (33,098) -2.44% Other Revenue - 12,865 12,865 Investment Income 10,000 32,000 22, Total $ 2,165,150 $ 2,166,917 $ 1, % RTC Equipment $ 45,322 $ 45,768 $ % Vocational Education Equipment 407, ,000 - Instructional Equipment 4,613 14,613 10, % Vehicle Replacement 31,685 10,148 (21,537) % Technology Replacement/Upgrade 124, ,000 - Technology Fee Equipment 972, ,036 22, % Facilities Master Plan 37, , , % Other Maintenance Projects 404, ,440 (39,254) -9.70% Transfer to Designated Fund 2,231,000 2,328,424 97, % Total $ 4,258,622 $ 4,448,206 $ 189, % Surplus/(Deficit): $ (2,093,472) $ (2,281,289) $ (187,817) 8.97% Ending Net Assets: $ 4,691,424 $ 5,535,689 $ 844, %

26 MOTT COMMUNITY COLLEGE Debt Retirement Fund (Fund 73) Amend Budget Fiscal Year 305 Original Budget Amend Budget $ Change % Change Property Taxes $ 7,980,602 $ 7,711,213 $ (269,389) -3.38% State Appropriations 166, ,408 52, % Interest Income % Bond Premium 237, ,357 27, % Total $ 8,385,176 $ 8,196,804 $ (188,372) -2.25% Administrative Fees $ 2,500 $ 2,000 $ (500) -2 Bond Discount/Deferred Charges 147, ,867 53, % Interest on Indebtedness 1,749,956 1,763,507 13, % Retirement of Indebtedness 6,145,000 6,280, , % Total $ 8,044,508 $ 8,246,374 $ 201, % Surplus/(Deficit): $ 340,668 $ (49,570) $ (390,238) % Ending Net Asset $ 580,500 $ 11,791 $ (568,709) %

27 MOTT COMMUNITY COLLEGE Building and Site Fund (Fund 78) Amend Budget Fiscal Year 306 Original Budget Amend Budget $ Change % Change Board Policy #3930 Transfer from Fund 01 $ 500,000 $ 500,000 $ - Investment Income - 10,000 10,000 Total $ 500,000 $ 510,000 $ 10, % Lapeer Purchase $ 232,958 $ 232,958 $ - Total $ 232,958 $ 232,958 $ - Surplus/(Deficit): $ 267,042 $ 277,042 $ 10, % Ending Net Assets: $ 1,736,098 $ 1,749,591 $ 13, %

28 MOTT COMMUNITY COLLEGE Building and Site Fund (Fund 84) Amend Budget Fiscal Year 307 Original Budget Amend Budget $ Change % Change Investment Income $ 60,000 $ 80,000 20, % Miscellaneous Income - 175, ,392 Total $ 60,000 $ 255,392 $ 195, % Bond Project Costs $ 8,495,800 $ 7,755,387 $ (740,413) -8.72% Total $ 8,495,800 $ 7,755,387 $ (740,413) -8.72% Surplus/(Deficit): $ (8,435,800) $ (7,499,995) $ 935, % Ending Net Assets: $ 1,614,688 $ 1,514,530 $ (100,158) -6.20%

29 MOTT COMMUNITY COLLEGE Building and Site Fund (Fund 85) Amend Budget Fiscal Year 308 Original Budget Amend Budget $ Change % Change Proceeds from Series 2018 Bond Sale $ - $ 20,000,000 $ 20,000,000 Total $ - $ 20,000,000 $ 20,000,000 Bond Project Costs $ - $ 3,500,000 $ 3,500,000 Bond Issuance Costs - 99,160 99,160 Total $ - $ 3,599,160 $ 3,599,160 Surplus/(Deficit): $ - $ 16,400,840 $ 16,400,840 Ending Net Assets: $ - $ 16,400,840 $ 16,400,840

30 FOR ACTION 309 Board of Trustees Charles Stewart Mott Community College Regular Meeting, February 26, 2018 Volume Architectural Services for Woodside Building Renovations Purchase Award Mott Community College plans to hire an architect to provide full architectural, engineering, design and construction administration services for the renovation of the Woodside Church Building. Renovations will be focused on updating and expanding the portion of the building that is already used as the Early Childhood Learning Center as well as relocating the Early Childhood Education Program, and updating and reconfiguring the remainder of the building to be used as a Family Life Center to provide wraparound services to MCC students who face obstacles in completing their college education due to complications or insecurities obtaining food, housing, transportation or other immediate needs. Renovations will be scheduled in stages to limit operational interruptions and align with available funding. Due to timing constraints and the need to have a shortened bid timeline, a request for proposals was directed to the fourteen architects that had recently responded to other publicly-issued RFPs for either the college s primary architect contract or the Southern Lakes Branch Campus renovation. Seven proposals were received on December 1, External fundraising, grants, 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 architectural services for the Woodside Building renovations to Integrated Design Solutions, 1441 W Long Lake Rd Ste 200, Troy, MI in the amount of $479,239 [four hundred seventy-nine thousand two hundred thirty-nine dollars and zero cents]. Reviewed and Submitted by: Date: February Lawrence A. Gawthrop Chief Financial Officer Date: February 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.

31 310 Contract for Woodside Building Renovation ITB Results December 1, 2017 Vendor NORR 150 W Jefferson Ave Ste 1300 Detroit, MI Integrated Design Solutions 1441 W Long Lake Rd Ste 200 Troy, MI NSA Research Dr Farmington Hills, MI Sedgewick & Ferweda Architects 410 E Court St Flint, MI H2A 9100 Lapeer Rd B Davison, MI WTA Architects 100 S Jefferson Ave Ste 601 Saginaw, MI Lord Aeck Sargent 213 S Ashley St Ste 200 Ann Arbor, MI Bid $446,000 $479,239 $508,996 $548,149 $546,000 $814,102 $1,135,000

32 FOR ACTION 311 Board of Trustees Charles Stewart Mott Community College Regular Meeting, February 26, 2018 Volume Maintenance Storage Building Purchase Award Mott Community College plans to construct a cold-weather storage building adjacent to the Physical Plant Operations building on Kearsley Park Boulevard. This building will remove the need for the college to rent storage space for seasonal equipment, instructional equipment, furniture and other items not actively being used. A public request for bids was posted to on November 7, Five bids were received on November 21, 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 construction of a Maintenance Storage Building to Case Construction, 6235 Corunna Road, Flint, Michigan in the amount of $186,322 [one hundred eighty-six thousand three hundred twenty-two dollars and zero cents]. Reviewed and Submitted by: Date: February Lawrence A. Gawthrop Chief Financial Officer Date: February 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.

33 Contract for Maintenance Storage Building ITB Results November 21, Vendor Case Construction Corunna Rd Flint, MI R L White Construction 3725 S Saginaw Rd Ste 107 Flint, MI J Perez Construction 2232 Davison Rd Flint, MI E&L Construction 3040 Airpark Dr S Flint, MI Cross Renovation Schoolcraft Rd Livonia, MI Bid $ 186,322 $ 235,700 $ 270,990 $ 288,000 $ 368,427 1 Because the bids exceeded the anticipated cost of the project, the Purchasing Department worked with the low-bid vendor, Case Construction, whose original bid was $223,150, as well as the architect, Gazall-Lewis & Associates, and the Physical Plant Department to value-engineer the project to bring the cost down to a level wherein the project could be funded and the building would still meet the college s needs. Deductions in the work scope included changes to concrete work, overhead doors, pedestrian access doors, construction materials and electrical services, as well as the corresponding reduction to bonding and profit figures. MCC maintenance personnel, who are licensed electricians, will be performing the electrical work for this project from the point of building service at the electrical junction box throughout the building for a considerable portion of the savings.

34 President s Report Regular Board of Trustees Meeting February 26, Executive Summary 2. Introduction of New Hires 3. Upcoming Dates: ***** March 2, 2018 March 10, 2018 March 21, 2018 March 22, 2018 March 26, 2018 Annual Legislative Briefing Breakfast, 8:30 a.m., Applewood Café Flint NAACP Freedom Fund Dinner, 6:00 p.m., Genesys Banquet Center Finance/Audit Committee, 12 p.m., CM1019 Personnel Committee, 4 p.m., CM1019 Grand Blanc Chamber of Commerce Chairman s Award Dinner, 6:00 p.m., Warwick Hills Golf & Country Club Board Dinner, 5 p.m., Applewood Café Committee of the Whole, 6:45 p.m., Applewood Café Board Meeting, 7:30 p.m., Applewood Café