NOTICE OF REGULAR MEETING ALPENA COMMUNITY COLLEGE BOARD OF TRUSTEES 665 JOHNSON STREET, ALPENA, MICHIGAN DATE OF NOTICE: October 11, 2013 The Alpena Community College Board of Trustees will convene at 7:00 p.m. on Wednesday, October 23, 2013, for its regular monthly meeting. The meeting will be held in the Roger C. Bauer Board Room, Room 400 of the Charles R. Donnelly Natural Resources Center, 665 Johnson Street, on the Alpena Campus. Please note: this date differs from the previously announced regular monthly meeting date of the third Thursday of the month. Alpena Community College provides access for individuals with disabilities to both the Roger C. Bauer Board Room and the Charles R. Donnelly Natural Resources Center. All official proceedings and agendas are kept in the Office of the Board of Trustees, 125-C Besser Technical Center, on the Alpena campus, and can be viewed upon request between the hours of 8:00 a.m. and 4:30 p.m. Monday through Friday. Jay Walterreit Secretary of the Board of Trustees (989) 358-7215
ALPENA COMMUNITY COLLEGE BOARD OF TRUSTEES REGULAR MEETING Wednesday, October 23, 2013, 7:00 p.m. Roger C. Bauer Board Room, Room 400 of the Charles R. Donnelly Natural Resources Center 665 Johnson Street, Alpena, MI 49707 1) Call to Order 2) Pledge of Allegiance 3) Approval of Agenda 4) Approval of September 19, 2013, Regular Proceedings 5) Introduction of Guests and Public Comment 6) Communication(s) 7) Board Member and Subcommittee Reports 8) Faculty Report 9) Student Report 10) President s Report 11) Action Items 2.580 Acceptance of Independently Audited Financial Statements 2.581 Acceptance of Bid for Snowplowing 12) Information Items 3.774 Financial Report 3.775 Personnel Report 3.776 Gifts and Grants Report 13) New Business 14) Suggested Future Agenda Items 15) Next Regular Meeting: November 21, 2013 16) Adjournment
2.580 Acceptance of Independently Audited Financial Statements Audits of the financial activities of Alpena Community College were guided by Michigan law and the generally accepted standards of accounting practices adopted by the Government Accounting Standards Board (G.A.S.B.). First, Michigan law, under section 1433 of Chapter 11 governing Michigan community colleges, states, The Board of Trustees shall provide for a system of accounting meeting the approval of the State Board of Education. All accounts shall be filed as required by the State Board of Education, and shall be available at all reasonable times for public inspection as a condition of receiving any state aid for the subsequent fiscal year. Second, the system of accounting authorized by the State Board must meet the standards established by G.A.S.B. The result of the above conditions for conducting the audit is that the firm of Straley, Ilsley, and Lamp, P.C., certified public accountants, has completed the audit of all College financial resources for the year ending June 30, 2013. In addition, College staff has analyzed these documents in the context of historical financial circumstances of the institution. A consolidated document detailing both of these analyses recognizes the strong record for internal fiscal accountability that exists at the College, along with an ongoing responsiveness to those issues that would improve financial accounting practices. As a result of these combined efforts to assure prudent management of all College resources, the audit report states: In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of Alpena Community College and its discretely presented component unit as of June 30, 2013, and 2012, and the changes in financial position and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Therefore, The following resolution is proposed: That the Board of Trustees accepts the financial report and approves the fiscal year 2013 audit as submitted by Straley, Ilsley, & Lamp, P.C., and commends all parties for their dialogue and exactness in assuring the audit has been produced in full compliance with state law and the new principles of accounting as adopted by G.A.S.B. It is further noted that appropriate officials at the College are directed to communicate the results of this important process to all interested parties.
2.581 Acceptance of Bid for Snowplowing The College requires snow removal periodically throughout the winter to insure that ACC students, employees, and visitors can move around the campuses safely. Pinning down a specific cost for the service is impossible due to the nature of snowfall in Northeast Lower Michigan. The College solicited bids on hourly rates for pick-up truck and front-loader service. To estimate costs for the winter of 2013-14, actual usage levels from the winter of 2010-11 were applied, since those for 2011-12 and 2012-13 were abnormally low. Two vendors responded to the advertised solicitation as follows: Vendor 2013-14 Rates 2010-11 Actual Hours Using 2013-14 Rates Pick-up Pick-up Totals Rate Usage Front Loader Rate Front Loader Usage Hours 383.75 23.75 Morgan Forest Products Northern Michigan Lawn and Landscape $55.00 $85.00 $19,187.50 $2,018.75 $23,125.00 $85,000.00 The flat charge by Northern Michigan Lawn and Landscape is not acceptable since rates were not provided and the total was far greater than the Morgan Forest Products bid. Based both on rates and the satisfactory references, the College recommends Morgan Forest Products to provide snowplowing service. Therefore: The following resolution is proposed: That the Board of Trustees authorizes the appropriate College officials to contract for snowplowing for FY 2013-14 with Morgan Forest Products at the rate of $55 per hour for pick-up truck usage and $85 per hour for front loader usage.
3.774 Financial Report Monthly General Fund Revenue and Expense through September 2013 (Year to Year Actual Comparison) The property tax receipts of $539,297 were $14,794 less than those for September 2012. This is due to lower property values. Tuition/fee receipts of $3,078,847 are $232,511 less than last year because of lower than anticipated enrollments. State aid for the current year is only $10,075. Only Renaissance Zone funding has been received. The schedule for normal payments starts in October. Instruction costs are up due to wage increases. Student Services expense increased due to a coding correction for a $27,000 Designated Fund invoice. Institutional administration expense is down by $18,432 compared with last September due to lower workers compensation insurance cost and some turnover. Physical Plant expense is up due primarily to timing of $20,000 elevator annual maintenance invoice and other repairs. Net income through the second month of the new fiscal year shows as a gain of $518,308 which is typical for this time of year, when fall tuition receipts have built up. This is lower than last year primarily due to lower tuition and fees received. Monthly General Fund Revenue and Expense through September 2013 (Budget to Actual Comparison) The tuition/fee revenue is 3.5% behind last year s because of less than anticipated enrollments for fall. Outside services is higher this year from increased maintenance and timing of invoices. Advertising is up due to a concerted effort to improve enrollment. Travel percentage is up because the travel budget was cut significantly. Tuition Waivers is higher due to timing of recording athletic waivers. Library books and equipment is up due to timing of purchases. All other categories are in acceptable ranges for this stage of the year. General Fund Month to Month Comparison through August 2013 The Month to Month comparisons are tracking as expected except as described above. Consolidated Income Statement through September 2013 All funds are tracking as expected for this time of year.
Alpena Community College General Fund Year to Year Actual Comparison For the Three Months Ending September 30, 2013 YTD Actual YTD Actual FY 2014 FY 2013 Variance Revenue Property Tax 539,297 554,091 (14,794) Tuition/Fees 3,078,847 3,311,358 (232,511) Sales, Services, and Rent 1,400 3,005 (1,605) State Aid 10,075 0 10,075 Federal 33,489 25,911 7,578 Donations 1,000 0 1,000 Interest 127 275 (148) Other 311 315 (4) Revenue 3,664,546 3,894,955 (230,409) Expense Instruction 1,460,749 1,430,795 29,954 MIS 281,258 258,114 23,144 Instruction Support 235,897 246,383 (10,486) Student Services 322,078 298,441 23,637 Institutional Administration 517,847 536,279 (18,432) Physical Plant 327,039 296,421 30,618 Transfers 1,370 990 380 Expenses 3,146,238 3,067,423 78,815 Income 518,308 827,532 (309,224) Net Assets - Beginning of Year 1,105,301 1,002,819 102,482 Net Assets - End of Year 1,623,609 1,830,351 (206,742)
Alpena Community College Comparative Income Statement General Fund For the Three Months Ending September 30, 2013 FY 2014 FY 2013 Budget YTD Actual Variance Complete Complete Revenue Property Tax 2,540,658 539,297 (2,001,361) 21.23% 22.04% Tuition/Fees 6,483,680 3,078,847 (3,404,833) 47.49% 50.98% Sales, Services, and Rent 24,000 1,400 (22,600) 5.83% 25.04% State Aid 5,256,841 10,075 (5,246,766) 0.19% 0.00% Federal 108,129 33,489 (74,640) 30.97% 20.22% Donations 50,500 1,000 (49,500) 1.98% 0.00% Interest 2,500 127 (2,373) 5.07% 3.06% Other 73,150 311 (72,839) 0.43% 0.43% Revenue 14,539,458 3,664,546 (10,874,912) 25.20% 26.98% Expense Salaries 7,888,559 1,609,019 6,279,540 20.40% 20.95% Fringe Benefits 4,107,485 898,585 3,208,900 21.88% 21.39% Outside Services 614,095 223,496 390,599 36.39% 29.20% Advertising 178,630 61,930 116,700 34.67% 30.29% Supplies 315,288 35,640 279,648 11.30% 12.26% Rental 3,000 2,000 1,000 66.67% 0.00% Utilities 442,314 51,469 390,845 11.64% 10.52% Telephone 53,000 13,790 39,210 26.02% 27.34% Postage 50,000 7,235 42,765 14.47% 19.93% Insurance 172,000 97,003 74,997 56.40% 60.01% Travel & Mileage 71,200 12,392 58,808 17.40% 13.76% Tuition Waivers 221,000 102,338 118,662 46.31% 41.77% Library Books & Equipment 83,140 25,744 57,396 30.96% 8.55% Other 159,000 4,228 154,772 2.66% 3.61% Transfers 180,747 1,370 179,377 0.76% 0.43% Expense 14,539,458 3,146,239 11,393,219 21.64% 21.25% Income 0 518,307 Net Assets - Beginning of Year 1,105,301 1,105,301 Net Assets - End of Year 1,105,301 1,623,609 Percent of Year Complete 25.00%
Alpena Community College General Fund Month to Month Tracking For the Three Months Ending September 30, 2013 July August September October November December January February March April May June YTD Budget Revenue Property Tax 115,671 401,304 22,323 0 0 0 0 0 0 0 0 0 539,297 2,540,658 Tuition/Fees 2,598,745 505,107 (25,004) 0 0 0 0 0 0 0 0 0 3,078,847 6,483,680 Sales, Services, and Rent 447 407 547 0 0 0 0 0 0 0 0 0 1,400 24,000 State Aid 0 10,075 0 0 0 0 0 0 0 0 0 0 10,075 5,256,841 Federal 0 14,038 19,451 0 0 0 0 0 0 0 0 0 33,489 108,129 Donations 0 1,000 0 0 0 0 0 0 0 0 0 0 1,000 50,500 Interest 0 48 78 0 0 0 0 0 0 0 0 0 127 2,500 Other 15 15 281 0 0 0 0 0 0 0 0 0 311 73,150 Revenue 2,714,878 931,994 17,676 0 0 0 0 0 0 0 0 0 3,664,546 14,539,458 Expense Salaries 528,179 516,653 564,187 0 0 0 0 0 0 0 0 0 1,609,019 7,888,559 Fringe Benefits 287,513 314,848 297,595 0 0 0 0 0 0 0 0 0 899,955 4,107,485 Outside Services 135,345 21,244 66,906 0 0 0 0 0 0 0 0 0 223,496 614,095 Advertising 16,684 19,348 25,898 0 0 0 0 0 0 0 0 0 61,930 178,630 Supplies 4,071 14,827 16,742 0 0 0 0 0 0 0 0 0 35,640 315,288 Rental 2,000 0 0 0 0 0 0 0 0 0 0 0 2,000 3,000 Utilities 212 23,593 27,664 0 0 0 0 0 0 0 0 0 51,469 430,314 Telephone 432 5,123 8,235 0 0 0 0 0 0 0 0 0 13,790 53,000 Postage 283 5,206 1,746 0 0 0 0 0 0 0 0 0 7,235 50,000 Insurance 68,227 2,275 26,501 0 0 0 0 0 0 0 0 0 97,003 172,000 Travel & Mileage 1,914 4,242 6,235 0 0 0 0 0 0 0 0 0 12,392 71,200 Tuition Waivers 26,711 71,524 4,103 0 0 0 0 0 0 0 0 0 102,338 221,000 Library Books & Equipment 5,793 17,046 2,905 0 0 0 0 0 0 0 0 0 25,744 83,140 Other 212 1,504 2,513 0 0 0 0 0 0 0 0 0 4,228 159,000 Transfers 0 0 0 0 0 0 0 0 0 0 0 0 0 192,747 Expense 1,077,576 1,017,433 1,051,230 0 0 0 0 0 0 0 0 0 3,146,239 14,539,458 Income 1,637,302 (85,439) (1,033,554) 0 0 0 0 0 0 0 0 0 518,307 0
Alpena Community College Consolidated Income Statement For the Three Months Ending September 30, 2013 Current Endow. & Unexp. Maint. & General Designated Auxiliary Unrestricted Restricted Loan S'ship Plant Repl. Debt Property Agency Total Revenue Property Tax 539,297 0 0 539,297 0 0 0 0 0 0 0 0 539,297 Tuition/Fees 3,078,847 221,460 10,000 3,310,307 0 0 0 0 127,052 0 0 0 3,437,359 Sales, Services, and Rent 1,400 15,594 559,375 576,369 (26,465) 0 0 0 0 0 0 0 549,904 State aid 10,075 0 0 10,075 0 0 0 0 0 0 0 0 10,075 Local 0 0 0 0 7,250 0 0 0 0 0 0 0 7,250 State 0 0 0 0 2,000 0 7,838 0 0 0 0 0 9,838 Federal 33,489 0 0 33,489 2,325,723 1,200,006 0 0 0 0 0 0 3,559,218 Donations 1,000 0 0 1,000 702 0 46,915 32,860 0 0 0 0 81,477 Interest 127 0 0 127 0 0 0 0 0 0 0 0 127 Other 311 240 (27,139) (26,588) 0 37,869 0 0 276 0 0 12,697 24,254 Total Revenue 3,664,546 237,294 542,236 4,444,076 2,309,210 1,237,875 54,753 32,860 127,328 0 0 12,697 8,218,799 Expenditures Salaries 1,609,019 37,123 35,601 1,681,743 205,664 0 0 0 0 0 0 0 1,887,407 Fringe Benefits 899,955 15,547 12,064 927,566 104,812 0 0 0 0 0 0 0 1,032,378 Outside Services 223,496 5,799 13,393 242,688 15,516 0 0 0 87 0 0 0 258,291 Advertising 61,930 0 0 61,930 0 0 0 0 0 0 0 0 61,930 Supplies 35,640 5,559 343,625 384,824 44,746 0 0 0 0 0 0 0 429,570 Rental 0 0 0 0 0 0 0 0 0 0 0 0 0 Utilities 2,000 0 0 2,000 0 0 0 0 0 0 0 0 2,000 Telephone 51,469 545 0 52,014 0 0 0 0 0 0 0 0 52,014 Postage 13,790 0 0 13,790 0 0 0 0 0 0 0 0 13,790 Insurance 7,235 88 8,661 15,984 0 0 0 0 0 0 0 0 15,984 Travel & Mileage 97,003 0 0 97,003 0 0 0 0 0 0 0 0 97,003 Waivers, Activities, and Dues 12,392 6,439 317 19,148 5,545 0 0 0 0 0 0 0 24,693 Library Books & Equipment 102,338 4,837 700 107,875 1,875,976 1,257,987 67,958 0 0 0 0 0 3,309,796 Other 25,744 72,863 297 98,904 104,470 0 0 0 28,570 0 0 0 231,944 Transfers 4,228 585 228 5,041 6,363 0 0 0 0 19,549 0 13,052 44,005 Total Expenditures 3,146,239 149,385 414,886 3,710,510 2,363,092 1,257,987 67,958 0 28,657 19,549 0 13,052 7,460,805 Net Revenue (Expense) 518,307 87,909 127,350 733,566 (53,882) (20,112) (13,205) 32,860 98,671 (19,549) 0 (355) 757,994 Beginning Year Net Assets 1,105,301 13,796 85,581 1,204,678 37,224 4,240 34,746 304,962 103,423 0 14,011,945 11,896 15,713,114 Period Ending Net Assets 1,623,608 101,705 212,931 1,938,244 (16,658) (15,872) 21,541 337,822 202,094 (19,549) 14,011,945 11,541 16,471,108
3.775 Personnel Report New hires, terminations, and status changes for September 2013. New Hires: Robert Denny Desgrange, ESP2 PT Toolroom Attendant Autobody, 9/3/13 Rose Wojda, Temporary Art Lab Tech, 9/9/13 Melanie Thomas, FT Nursing Faculty, 9/16/13 Dawn Stone, ESP2 Learning Technology Technician, 9/23/13 Terminations: N/A Status Changes: N/A
3.776 Gifts and Grants Report This report reflects the following activity for pledges and gifts received by the College and its Foundation between September 11, 2013, and October 8, 2013. TOTAL GIFTS & PLEDGES: $99,557 TOTAL DONORS: 60