COMMUNITY COLLEGE DISTRICT OF MONROE ...

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN ANNUAL FINANCIAL REPORT June 30, 2009 and 2008

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Annual Financial Report Table of Contents

Independent Auditor's Report ........................................................................................................................... 1-2 Management’s Discussion and Analysis ........................................................................................................ 3-12 College Balance Sheets.......................................................................................................................................13 College Statements of Revenue, Expenses, and Changes in Net Assets ........................................................... 14 College Statements of Cash Flows ............................................................................................................... 15-16 Foundation Statements of Financial Position .....................................................................................................17 Foundation Statements of Activities............................................................................................................. 18-19 Foundation Statements of Cash Flows................................................................................................................20 Notes to Financial Statements....................................................................................................................... 21-33 Supplemental Information ............................................................................................................................ 34-37

Independent Auditor’s Report

To the Board of Trustees of Monroe County Community College Monroe, Michigan 48161

We have audited the accompanying financial statements of Monroe County Community College (Community College District of the County of Monroe) and its discretely presented component unit as of and for the years ended June 30, 2009 and 2008, which collectively comprise the College’s basic financial statements as listed in the table of contents. These basic financial statements are the responsibility of the Monroe County Community College’s management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of Monroe County Community College as of June 30, 2009 and 2008, and the respective changes in its financial position and cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated September 18, 2009 on our consideration of Monroe County Community College’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide opinions on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

1

Monroe County Community College

The Management’s Discussion and Analysis presented on pages 3 through 12 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplemental information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Monroe County Community College’s basic financial statements. The supplementary information identified in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

September 18, 2009

2

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Management’s Discussion and Analysis

Year Ended June 30, 2009 and 2008

Introduction The College’s annual financial report consists of three basic financial statements: the Balance Sheet, which presents the Assets, Liabilities, and Net Assets of the institution as of the end of the fiscal year; the Statement of Revenues, Expenses, and Changes in Net Assets, which reflects revenues and expenses recognized during the fiscal year; and the Statement of Cash Flows, which provides information on all of the cash inflows and outflows for the institution by major category during the fiscal year. These financial statements are prepared in accordance with Government Accounting Standards Board (GASB) pronouncements and the Manual for Uniform Financial Reporting for Michigan Public Community Colleges. The annual financial report includes the report of independent auditors, this management’s discussion and analysis, the basic financial statements described above and notes to the financial statements. Following the basic financial statements and footnotes are two supplementary schedules, the Consolidating Balance Sheet and the Consolidating Statement of Revenue, Expenses and Transfers and Changes in Net Assets. These additional schedules are required by the state of Michigan. Though the Governmental Accounting Standards Board does not require this information for a fair and complete presentation, the statements do provide additional information regarding the various funds and activities of the College not disclosed in the basic statements. The Foundation at Monroe County Community College is a component unit of the College. Since the Foundation uses a different generally accepted accounting principal (GAAP) reporting format, the financial information of the component unit is not presented on the same pages, but on separate pages. Complete financial statements for The Foundation can be obtained from the Administration Office at 1555 South Raisinville Road, Monroe, MI 49161.

3

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Management’s Discussion and Analysis

Year Ended June 30, 2009 and 2008

Balance Sheet The Balance Sheet includes all assets and liabilities. It is prepared under the accrual basis of accounting. Assets and liabilities are generally measured using current values except capital assets, which are stated at historical cost less allowance for depreciation. Table 1 shows a summarized comparison of the College’s assets, liabilities and net assets at June 30, 2009, 2008, and 2007: TABLE 1 Net Assets ($000’s) _______________________________

Current assets Endowed Assets Capital assets, net of accumulated depreciation Total assets Current liabilities Net assets Invested in Capital Assets, net of related debt Restricted Unrestricted Total net assets

2009 $16,678 178

2008 $17,299 178

2007 $15,985 178

26,734 43,590 2,650

27,814 45,291 2,702

28,894 45,057 2,104

26,734 373 13,832 $40,939

27,814 392 14,383 $42,589

28,894 411 13,648 $42,953

Net Assets decreased $1,650,000 or 3.9% in 2009 and decreased $364,000 or 0.8% in 2008.

4

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Management’s Discussion and Analysis

Year Ended June 30, 2009 and 2008

$50,000

COMPARISON OF STATEMENT OF NET ASSETS, 2009, 2008, AND 2007 ($000's)

$45,000 $40,000 $35,000 $30,000

2009 2008 2007

$25,000 $20,000 $15,000 $10,000 $5,000 $0

Current Assets

Endowment

Capital Assets, Net

Total Assets

Current Liabilities

Total Net Assets

Statement of Revenue, Expenses and Changes in Net Assets The Statement of Revenues, Expenses, and Changes in Net Assets present the operating revenue and expenses of the College, as well as the non-operating revenue and expenses. Operating revenue primarily includes net student tuition and fees, grants and contracts, and auxiliary services. Nonoperating revenue includes state appropriations, property taxes, and the federal Pell Grant revenue. Because the components that create the non-operating revenue are usually greater than the components of the operating revenue, financial statements typically reflect an annual operating loss. In previous years, Pell Grant revenue was reported as operating revenue under “grants and contracts.” A new accounting principle now requires it to be reported as non-operating revenue. Prior year amounts have been adjusted to reflect this change.

5

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Management’s Discussion and Analysis

Year Ended June 30, 2009 and 2008

Table 2 shows a summarized comparison of revenues, expenses, and change in net assets for the year ended June 30, 2009, 2008, and 2007: TABLE 2 Changes in Net Assets ($000’s) _________________________ 2009

2008

2007

Operating Revenues Tuition and fees, net of allowances Grants and contracts Auxiliary enterprises Other sources Total operating revenues

$ 6,138 865 2,073 220 9,296

$ 5,758 822 1,953 261 8,794

$ 5,395 921 1,869 247 8,432

Operating Expenses Instruction Information technology Public services Instructional support Student services Institutional administration Operation and maintenance of plant Depreciation Total operating expenses

11,968 1,418 328 3,719 6,288 2,938 3,658 1,600 31,917

10,942 1,362 308 3,507 5,498 2,912 3,717 1,646 29,892

10,227 1,267 305 3,114 5,066 2,684 3,160 1,671 27,494

(22,621)

(21,098)

(19,062)

4,144 13,698 2,751 253 125 0 20,971

4,419 13,468 2,082 549 117 100 20,735

3,313 12,865 1,720 662 162 54 18,776

$ (1,650)

$ (363)

$ (286)

Operating loss Non-operating revenues State appropriations Property tax levy Federal Pell Grant revenue Investment income Gifts Capital gifts Total non-operating revenues Increase (decrease) in net assets

6

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Management’s Discussion and Analysis

Year Ended June 30, 2009 and 2008

Revenues The following is a graphic illustration of total revenue of $30.2 million by source for the year ended June 30, 2009:

TOTAL REVENUE $30.2 MILLION ($000's) OPERATING REVENUES 30.7% [$9,276]

NONOPERATING REVENUES 69.3% [$20,971]

Pell Grants $2,751 9.09%

Investments and Gift Income $378.00 1.25%

Property Taxes $13,698 45.26%

Grants and Contracts $865 2.86%

Auxiliary Enterprises and Other $2,293 7.58%

State Appropriations $4,144 13.69%

Tuition and Fees $6,138 20.28%

Operating revenues include charges for all exchange transactions such as tuition and fees and the sale of books and supplies. An exchange transaction occurs when each party receives and gives up essentially equal values. In addition, certain federal, state, and private grants are considered operating if they are not for capital purposes and are considered a contract for services. Operating revenue changes were the result of the following: 

 

In fiscal year 2008-09, student tuition and fee revenue increased by approximately $380,000 or 7%. This was due to an enrollment increase of 5% and a rate increase of 5%. In fiscal year 2007-08, tuition and fee revenue increased 7% over the previous year. This was due to an enrollment increase of 2% and a rate increase of 6%. Grant and contract revenue increased $43,000 or 5% in 2009. In 2008 grant and contract revenue decreased approximately $99,000 or 11%. Auxiliary service revenue increased by approximately $120,000 or 6% in 2009 and $84,000 or 4% in 2008 due to increased enrollment and increases in book costs. 7

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Management’s Discussion and Analysis

Year Ended June 30, 2009 and 2008

Revenues (concluded) Non-operating revenues represent all revenue sources that are primarily non-exchange in nature. They consist primarily of state appropriations, property tax revenue, Pell Grant revenue, and investment income. Non-operating revenue changes were the result of the following factors: 





Property taxes increased by $230,000 or 2% in 2009 and $603,000 or 5% in 2008. Tax revenue came from the voter-approved 2.25 mills of taxes for operating; however, it was limited to 2.1794 mills in 2008 and 2007 by the Headlee calculations. The taxable value in Monroe County increased by 1.1% in 2009 and 5.3% in 2008. Increases were also limited due to numerous tax increment financing plans and abatements approved by cities and townships. State appropriations decreased by $275,000 or 6.2% in 2009. This was due to the 2008 appropriation amount being increased by a delayed payment of $364,000 from the 2007 appropriation. State appropriations increased by $1,106,000 or 33.4% in 2008. This is partially due to a delayed payment from the 2006-07 year. The final payment of $364,000 for 2006-07 was delayed by the state due to economic conditions; this amount was included in the 2007-08 totals. Federal Pell revenue increased by $669,000 or 32.1% in 2009 and $362,000 or 21.08% in 2008. This is due to an increase in the number of Pell Grants and an increase in the maximum amount a student can receive. About 20% of the College’s credit hour students receive some form of Pell Grant assistance.

Operating Expenses Operating expenses are all expenses necessary to provide services and conduct the programs of the College. Operating expenses for the fiscal year ended June 30, 2009 totaled $31.9 million, an increase of 7% from 2008. The following graph illustrates operating expenses by source: Operating Expenses

Operation of Maintenance of Plant 11%

Depreciation 5%

Instruction 38%

Institutional Administration 9%

Student Services 20%

Information Technology 4%

Instructional Support 12%

Public Services 1%

8

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Management’s Discussion and Analysis

Year Ended June 30, 2009 and 2008

Statement of Cash Flows The primary purpose of this statement is to provide relevant information about the cash receipts and cash payments of the College during a specific period. The Statement of Cash Flows may also help users access:   

The College’s ability to generate future net cash flows Its ability to meet its obligations as they come due Its need for external financing TABLE 3 Cash Flows ($000’s) ________________________________ 2009

Net cash provided (used) by: Operating activities Non-capital financing activities Capital and related financing activities Investing activities Net increase (decrease) in cash and cash equivalents

$(21,159) 20,722 (521) 1,804

$

846

2008

2007

$(18,787) 19,523 (467) (915)

$(17,575) 18,564 (1,535) 1,327

$

$

(646)

781

Items accounting for the majority of the changes in cash and cash equivalents are as follows: 

A decrease in cash and equivalent due to operating activities, which increased 12.7% over the prior year.



An increase in cash and equivalents due to a 6% increase in non-capital financing activities.



A decrease to cash and equivalents due to the combined activities of a reduction in the purchase of capital assets and a reduction in gifts. (With its final gift of $100,000 in 2008, The Foundation completed its $3 million contribution toward the construction of the La-Z-Boy Center.)



An increase in cash and equivalents due to a $2.7 million increase in investing activities. This figure can experience large year-to-year fluctuations as a result of the maturity dates of CDs.

9

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Management’s Discussion and Analysis

Year Ended June 30, 2009 and 2008

Capital Assets and Debt The College’s investment in capital assets for the fiscal years ending June 30, 2009, 2008 and 2007 were as follows: TABLE 4 Capital Assets ($000’s) ______________________________

Land Building and site improvement Construction in progress Equipment Less: accumulated depreciation Total capital assets

2009 $ 1,368 44,492 73 4,986 (24,185)

2008 $ 1,368 44,013 213 4,805 (22,585)

2007 $ 1,368 43,919 0 4,545 (20,938)

$ 26,734

$ 27,814

$ 28,894

Three major projects were initiated in 2007-08. The projects included: Admissions and Registration area renovations, electronics lab renovations, and a classroom technology renovation project. Renovations to make the Admissions and Registration Offices more modern, warmer and to utilize the space more efficiently began in 2007-08. Costs incurred through June 30, 2009 were $73,270. This amount represents the cost for Construction in Progress at the end of the fiscal year. The project was completed in August of 2009. Costs incurred after July 1 totaled approximately $159,000, bringing the total cost of the project to approximately $223,000.

10

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Management’s Discussion and Analysis

Year Ended June 30, 2009 and 2008

Capital Assets and Debt (continued)

Renovations to the College’s two electronics labs and the attached workrooms began in May of 2008 and were completed in August of 2008. The total project cost was about $333,000, including all equipment costs. The amount capitalized as construction cost was $224,946. The College renovated classrooms on the second floor of the Campbell Learning Resources Center to incorporate new technology. In May 2008 work began on a prototype room (Room C-223) and was completed that September. Work to the prototype room included upgrades to the lighting and electrical systems, new room colors, air flow controls to decrease background noise, new student tables and chairs, and a new instructor’s station. Concerns with the outlook of future revenue necessitated that the scope of work to the remaining eight classrooms be scaled back while still including new equipment. The work began in the spring of 2009 and was completed by June 30, 2009. The total project cost was approximately $296,000. $138,000 of this amount was capitalized as construction costs.

The College has no outstanding debt.

11

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Management’s Discussion and Analysis

Year Ended June 30, 2009 and 2008

Economic Factors That Will Affect The Future Economic pressures affecting the state of Michigan have resulted in small increases in appropriations to the College over the last two years. Michigan’s economy is projected to remain sluggish. The state of Michigan has proposed significant decreases in many areas of the state’s budget. Future appropriation amounts are a concern. For the last several years, property tax revenues have provided annual revenue increases of almost 5%. Property taxes increased only 2% in 2008-09, and the College budgeted a 2% decrease for 2009-10. Many governments in southeast Michigan are facing significant decreases. Home prices have been falling across the state, including southeast Michigan. Assessments and property taxes generally trail the market by approximately two years or so. Ford Motor Company closed its Automotive Components Holdings plant in Monroe in 2008. Nearly 1,200 jobs at the 1.5 million square foot facility will be affected. Property taxes accounted for over 54% of the College’s general fund revenue in FY 2008-09. Future property tax revenue growth will be a concern. Tuition and fee revenue at the College are a component of two factors: enrollment and tuition rates. Enrollment has continued to increase over the last several years. FY 2008-09 experienced a 5% increase in credit hours over the previous year. The College continues to set enrollment records. Tuition rates remained the same for FY 2009-10. Tuition is now charged on student contact hours instead of credit hours. This is projected to increase the amount of revenue earned by tuition charges. The College is not aware of any other economic factors that might have a significant impact on the financial position of the College in the immediate future. Overall, the financial position of the College continues to be strong.

12

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Balance Sheets June 30, 2009 and 2008 2009 ASSETS Current Assets Cash and cash equivalents Short-term investments Property taxes receivable (net of allowance $16,160 and $7,910) State appropriation receivable Federal and state receivable Interest receivable Accounts receivable (net of allowance $108,558 and $83,246) Student loans receivable (net of allowance $19,226 and $21,594) Inventories Prepaid expenses and other assets Total Current Assets Restricted short-term investments Property and Equipment (net of accumulated depreciation) TOTAL ASSETS LIABILITIES AND NET ASSETS Current Liabilities Accounts payable Accrued payroll and fringes Deposits Unearned revenue Total Current Liabilities Net Assets Invested in capital assets Restricted for: Nonexpendable endowments Expendable: Scholarships Loans Other Unrestricted Total Net Assets TOTAL LIABILITIES AND NET ASSETS

The accompanying notes are an integral part of these statements 13

2008

$5,263,975 9,112,293 35,532 753,236 102,688 67,650 558,318 16,253 257,221 510,520

$4,417,526 10,605,804 63,626 737,144 167,717 126,700 508,597 18,193 228,048 426,485

16,677,686

17,299,840

177,539

177,539

26,734,447

27,813,985

$43,589,672

$45,291,364

$641,955 1,659,729 66,087 282,726

$731,595 1,705,716 70,530 194,352

2,650,497

2,702,193

26,734,447

27,813,985

177,539

177,539

46,532 75,209 73,134 13,832,314

64,644 76,326 73,511 14,383,166

40,939,175

42,589,171

$43,589,672

$45,291,364

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Statements of Revenue, Expenses and Changes in Net Assets For the Years Ended June 30, 2009 and 2008 2009 REVENUE Operating Revenue Tuition and fees (net of scholarship allowance of $1,852,569 and $1,573,262) Federal grants State grants Nongovernmental grants Auxiliary activities (net of scholarship allowance of $43,385 and $24,459) Other sources

2008

$6,137,980 693,557 170,044 1,300

$5,758,721 446,769 316,710 57,502

2,072,760 220,675

1,953,287 260,911

Total Operating Revenue

9,296,316

8,793,900

EXPENSES Operating Expenses Instruction Information technology Public services Instructional support Student services Institutional administration Operation and maintenance of plant Depreciation

11,967,581 1,417,716 327,595 3,718,638 6,288,565 2,938,300 3,657,869 1,600,521

10,941,857 1,362,476 308,161 3,507,490 5,497,942 2,911,596 3,716,742 1,646,294

31,916,785

29,892,558

(22,620,469)

(21,098,658)

4,143,880 13,698,172 2,750,809 252,354 125,258 20,970,473

4,418,900 13,468,676 2,081,481 548,774 117,375 20,635,206

Total Operating Expenses Operating Loss NONOPERATING REVENUE (EXPENSES) State appropriations Property tax levy Federal pell grant revenue Investment income Gifts Net Nonoperating Revenues Income (Loss) Before Other Revenue and Expenses

(1,649,996)

OTHER REVENUE Capital gifts and grants

0

Increase (Decrease) in Net Assets

(1,649,996)

(463,452) 100,000 (363,452)

NET ASSETS Net Assets - Beginning of Year Net Assets - End of Year The accompanying notes are an integral part of these statements 14

42,589,171

42,952,623

$40,939,175

$42,589,171

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Statements of Cash Flows For the Years Ended June 30, 2009 and 2008 2009 CASH FLOWS FROM OPERATING ACTIVITIES Tuition and fees Grants and contracts Payments to suppliers Payments to employees Loans issued to students Collection of loans from students Auxiliary enterprise charges Other Net Cash Used For Operating Activities

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Local property taxes Gifts and contributions for other than capital purposes Pell grant revenue State appropriations Net Cash Provided by Noncapital Financing Activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Capital grant and gift proceeds Net Cash Used For Capital and Related Financing Activities

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investment Investment income Purchase of investments Net Cash Provided by Investing Activities NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS - Beginning of Year CASH AND CASH EQUIVALENTS - End of Year

The accompanying notes are an integral part of these statements 15

2008

$6,109,118 952,808 (15,638,297) (14,932,117) (65,697) 68,040 2,150,074 196,716 (21,159,355)

$5,724,052 873,837 (13,538,817) (14,000,448) (40,980) 33,906 1,887,935 273,144 (18,787,371)

13,718,016 125,258 2,750,809 4,127,788 20,721,871

13,444,178 117,375 2,081,481 3,880,360 19,523,394

(520,984) 0 (520,984)

(566,562) 100,000 (466,562)

13,783,343 311,406 (12,289,832) 1,804,917

12,295,952 572,173 (13,783,343) (915,218)

846,449 4,417,526 $5,263,975

(645,757) 5,063,283 $4,417,526

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Statements of Cash Flows (Continued) For the Years Ended June 30, 2009 and 2008 RECONCILIATION OF NET OPERATING EXPENSES TO NET CASH USED FOR OPERATING ACTIVITIES: 2009 Operating loss Adjustment to reconcile operating loss to net cash used for operating activities: Depreciation (Increase) decrease in assets: Accounts receivable Federal and state grant receivable Inventories Prepaid assets and other current assets Loans to students Increase (decrease) in liabilities: Accounts payable Accrued payroll and fringes Deposits Unearned tuition and fees

NET CASH USED FOR OPERATING ACTIVITIES

The accompanying notes are an integral part of these statements 16

($22,620,469) 1,600,521

2008 ($21,098,658) 1,646,294

(41,471) 65,029 (29,173) (84,034) 1,940

(111,550) 99,929 (1,221) 84,208 (4,903)

(150,737) 15,108 (4,443) 88,374

389,047 158,051 22,689 28,743

($21,159,355)

($18,787,371)

THE FOUNDATION AT MONROE COUNTY COMMUNITY COLLEGE STATEMENTS OF FINANCIAL POSITION June 30, 2009 and 2008

2009

2008

$464,361 340,326

$561,206 104,388

1,099 11,140 188,124 200,363

1,313 8,721 81,257 91,291

1,005,050

756,885

1,467,190

1,628,095

315,287

463,320

Total Assets

$2,787,527

$2,848,300

LIABILITIES Accounts payable Deferred revenue

$1,293 5,000

$36,113 10,000

6,293

46,113

NET ASSETS Unrestricted Temporarily restricted Permanently restricted

74,968 1,234,295 1,471,971

81,253 1,372,116 1,348,818

Total Net Assets

2,781,234

2,802,187

$2,787,527

$2,848,300

ASSETS Cash and cash equivalents Short-term investments Unconditional promises to give Unrestricted Restricted for scholarships Restricted other (net of allowance $6,700 and $900) Total unconditional promises to give Total Current Assets Endowment investments, at market value Long-term unconditional promises to give: Restricted other (net of allowance $18,800 and $28,400)

Total Liabilities

Total Liabilities and Net Assets

(See accompanying notes to financial statements)

17

THE FOUNDATION AT MONROE COUNTY COMMUNITY COLLEGE STATEMENTS OF ACTIVITIES Years Ended June 30, 2009 and 2008 2009

Unrestricted REVENUES, GAINS, AND OTHER SUPPORT: Contributions Federal funds Special events Donated administrative support In-kind contributions Net investment income Net assets restricted for endowment Net assets released from restrictions: Satisfaction of donor restrictions Total Revenues, Gains, and Other Support EXPENSES: Scholarships Grants Fund raising Donated administrative expenses Other Total Expenses

Temporarily Restricted

Permanently Restricted

Total

$9,590 0 0 201,126 0 5,785 0

$216,418 17,000 38,534 0 34,620 (239,303) (40,000)

$83,153 0 0 0 0 0 40,000

121,266

(121,266)

0

0

337,767

(93,997)

123,153

366,923

86,298 55,960 0 201,126 668 344,052

0 34,620 9,204 0 0 43,824

0 0 0 0 0 0

86,298 90,580 9,204 201,126 668 387,876

Changes in Net Assets

(6,285)

Net Assets at Beginning of Year

81,253

1,372,116

1,348,818

2,802,187

$74,968

$1,234,295

$1,471,971

$2,781,234

Net Assets at End of Year (See accompanying notes to financial statements)

18

(137,821)

123,153

$309,161 17,000 38,534 201,126 34,620 (233,518) 0

(20,953)

THE FOUNDATION AT MONROE COUNTY COMMUNITY COLLEGE STATEMENTS OF ACTIVITIES Years Ended June 30, 2009 and 2008 2008

Unrestricted REVENUES, GAINS, AND OTHER SUPPORT: Contributions Federal funds Special events Donated administrative support In-kind contributions Net investment income Net assets restricted for endowment Net assets released from restrictions: Satisfaction of donor restrictions Total Revenues, Gains, and Other Support EXPENSES: Scholarships Grants Fund raising Donated administrative expenses Other Total Expenses

Permanently Restricted

Total

$17,166 0 0 185,943 0 6,977 0

$204,566 16,000 21,789 0 18,246 (58,307) (60,000)

$49,642 0 0 0 0 0 60,000

254,413

(254,413)

0

0

464,499

(112,119)

109,642

462,022

86,102 187,453 0 185,943 593 460,091

0 18,246 7,413 0 0 25,659

0 0 0 0 0 0

86,102 205,699 7,413 185,943 593 485,750

4,408

(137,778)

109,642

Changes in Net Assets Net Assets at Beginning of Year Net Assets at End of Year (See accompanying notes to financial statements)

Temporarily Restricted

$271,374 16,000 21,789 185,943 18,246 (51,330) 0

(23,728)

76,845

1,509,894

1,239,176

2,825,915

$81,253

$1,372,116

$1,348,818

$2,802,187

19

THE FOUNDATION AT MONROE COUNTY COMMUNITY COLLEGE STATEMENTS OF CASH FLOWS Years Ended Unded 30, 2008 and 2008

2009

2008

($20,953)

($23,728)

214 (2,419) 41,166 (34,820) (5,000)

1,704 (2,140) 199,268 29,024 10,000

289,973 (123,153) 0

146,855 (109,642) (1,015)

145,008

250,326

306,182 (671,188)

656,396 (939,264)

(365,006)

(282,868)

CASH FLOWS FROM FINANCING ACTIVITIES: Additions to permanently restricted

123,153

109,642

Net Cash Provided by Financing Activities

123,153

109,642

Net Increase (Decrease) in Cash and Cash Equivalents

(96,845)

77,100

561,206

484,106

$464,361

$561,206

CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets Adjustments to reconcile change in net assets to cash used by operating activities: (Increase) decrease in unconditional promises to give Unrestricted Restricted for scholarships Restricted other Increase (decrease) in accounts payable Increase (decrease) in deferred revenue Net realized and unrealized loss (gain) included in investment income Additions to permanently restricted Non-cash contributions - marketable securities Net Cash Used by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of investments Purchases of investments Net Cash Used by Investing Activities

Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Supplemental Data: There were no payments made for interest or income tax expenses.

(See accompanying notes to financial statements)

20

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 1 - Basis of Presentation and Significant Accounting Policies Reporting Entity - Monroe County Community College (College) is a Michigan community college whose financial statements have been prepared in accordance with the generally accepted accounting principles as applicable to public colleges and universities outlined in Governmental Accounting Standards Board (GASB) Statement No. 35 and the Manual for Uniform Financial Reporting - Michigan Public Community Colleges, 2001. The College reports as a Business-type Activities (BTAs), as defined by GASB Statement No. 35. BTAs are those that are financed in whole or in part by fees charged to external parties for goods or services. Private sector standards of accounting issued prior to December 1, 1989 are generally followed in the College financial statements to the extent that those standards do not conflict with the standards of the Governmental Accounting Standards Board. The College has elected not to apply private sector standards issued after November 30, 1989. The College distinguishes the operating revenue and expenses from nonoperating items. Operating revenue and expenses generally result from providing services in connection with a BTA’s principal ongoing operation. The operating revenue of the College relates to charges to students for tuition, including grants, and auxiliary sales. Operating expenses include the cost of instruction, the related services, administration, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenue and expenses. The Foundation at Monroe County Community College (Foundation) is a legally separate, taxexempt component unit of Monroe County Community College. The Foundation acts primarily as a fund-raising organization to supplement the resources that are available to the College in support of its programs. The board members of the Foundation are appointed by the College’s board. Although the College does not control the timing or amount of receipts from the Foundation, the majority of resources, or income thereon, that the Foundation holds and invests are restricted to the activities of the College by the donors. Because these restricted resources held by the Foundation can only be used by, or for the benefit of, the College, the Foundation is considered a component unit of the College and is discretely presented following the College’s financial statements, in accordance with GASB No. 39, Determining Whether Certain Organizations are Component Units. The Foundation is a private nonprofit organization that reports under FASB standards, including FASB Statement No. 117, Financial Reporting for Not-for-Profit Organizations. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. No modifications have been made to the Foundation’s financial information in the College’s financial reporting entity for these differences. Complete financial statements for the Foundation can be obtained from the Administrative Office at 1555 South Raisinville Road, Monroe, MI 48161.

21

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 1 - Basis of Presentation and Significant Accounting Policies (continued) Significant accounting policies followed by Monroe County Community College are described below to enhance the usefulness of the financial statements to the reader. Accrual Method - The business-type financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Cash and Cash Equivalents - Cash and cash equivalents consist of all highly liquid investments with an initial maturity of three months or less. Investments - Investments are recorded at fair value, based on quoted market prices. Restricted Investments - Investments which are separately invested for an endowed purpose are reflected as restricted. Receivables - All receivables, including property taxes receivable, are shown net of an allowance for uncollectibles. Inventories - Inventories, including books and miscellaneous supplies, are stated at the lower of cost or market using the first-in, first-out method. Prepaid Expenses - Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid expenses. Property and Equipment - Property and equipment are recorded at cost, or if acquired by gift, at the fair market value as of the date of acquisition. The College maintains a capitalization threshold of five thousand dollars. Depreciation is provided for property and equipment on a straight-line basis. Estimated useful lives are as follows: Land and improvements Building and improvements Infrastructure Furniture, fixtures and equipment

10 years 10-40 years 10-20 years 5-10 years

Accrued Vacation - Accrued vacation represents the accumulated liability to be paid under the College’s current vacation pay policy. Under the College’s policy, employees earn vacation time based on time of service with the College.

22

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 1 - Basis of Presentation and Significant Accounting Policies (continued) Unearned Revenue - Unearned revenue is a combination of event sponsorship and tuition revenue received prior to year end that relates to the next fiscal period. Unearned revenue at June 30 is as follows: June 30, 2009 2008 Event Sponsorship $ 0 $ 5,000 Tuition: Summer semester 134,721 95,722 93,630 Fall semester 148,005 282,726 189,352 Total

$282,726

$194,352

Gifts and Pledges - Gifts are recorded at estimated fair value when received and pledges are recorded at their net present value when it is determined that the gift is probable of collection. Restricted Net Assets - Permanently restricted net assets may be utilized only in accordance with the purposes established by the source of such funds. The permanently restricted funds maintained by the College are general purpose funds, which permit only the use of net investment earnings and requires that the original fund corpus be maintained. The investment earnings on these permanently restricted assets are classified as unrestricted net assets in conformity with the donor’s designation. Property Taxes - Property taxes are levied on December 1 of the fiscal year, based on assessed valuation as of the preceding December 31. Unrestricted Net Assets - The College has designated the use of unrestricted net assets as follows: June 30, 2009 2008 Designated for: Working capital $ 4,275,000 $ 5,181,500 Contingencies 1,925,000 1,254,500 Technology equipment 1,191,660 1,607,338 Auxiliary activities 1,528,338 1,332,641 Student loans 10,115 8,596 Quasi-endowment 619,136 612,797 Major maintenance and renovation 3,759,212 3,390,271 Unrestricted and undesignated 523,853 995,523 Total Unrestricted Net Assets

$13,832,314

23

$14,383,166

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 1 - Basis of Presentation and Significant Accounting Policies (concluded) Use of Estimates - The process of preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenditures. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts. Reclassifications Certain amounts as reported in the 2008 financial statements have been reclassified to conform with the 2009 presentation. Note 2 - Deposits and Investments The College is authorized by Michigan Public Act 331 of 1966, as amended through 1997, and by resolution of the Board of Trustees to make deposits and invest in accounts for federally insured banks that have offices in Michigan. It is also authorized to invest surplus monies in bonds, bills and notes of the United States or obligations of the State of Michigan, mutual funds and investment pools that are composed of authorized investments, bankers acceptances, commercial paper rated prime by at least one of the standard rating services, negotiable certificates of deposits and certain repurchase agreements. The College has no investment policy that would further limit its investment choices. The College’s deposits and investments were included in the balance sheet under the following classifications: June 30, 2009 2008 Cash and cash equivalents Short-term investments Restricted short-term investments Total

24

$ 5,263,975 9,112,293 177,539

$ 4,417,526 10,605,804 177,539

$14,553,807

$15,200,869

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 2 - Deposits and Investments (continued) The breakdown between deposits and investments for the College were as follows: June 30, 2009 Bank deposits (checking accounts, savings accounts and certificates of deposits) Petty cash and cash on hand Public short-term pooled investment funds held by bank depository Total

2008

$14,551,957 1,850

$11,101,140 1,850

0

4,097,879

$14,553,807

$15,200,869

Deposits The above bank deposits were reflected in the accounts of the bank (without recognition of checks written but not yet cleared or of deposits in transit) at $14,833,978 and $10,956,782 for 2009 and 2008 respectively. Of that amount, $1,500,000 and $700,000 were covered by federal depository insurance in each year, respectively, and the remainder was uninsured and uncollateralized. The College believes that due to the dollar amounts of cash deposits and the limits of FDIC insurance, it is impractical to insure all bank deposits. As a result, the College evaluates each institution it deposits College funds with and assesses the level of risk of each institution: only those institutions with an acceptable estimated risk level are used as depositories. Investments The College’s investments are categorized below to give an indication of the level of risk assumed by the College at the year end. Risk Category 1 includes those investments that meet any one of the following criteria: a. Insured b. Registered c. Held by the College or its agent

25

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 2 - Deposits and Investments (continued) Risk Categories 2 and 3 include investments that are neither insured nor registered. Category 2 includes investments that are held by the counterpart’s trust department (or agency) in the College’s name. Category 3 includes investments held by: a. The counterpart or b. The counterpart’s trust department (or agent) but not in the College’s name The College’s investment balances as of June 30, were not subject to categorization as follows:

Bank investment pools: Short-term mutuals

2009

2008

$0

$4,097,879

The investments not subject to categorization are not evidenced by securities that exist in physical or book entry form. The bank investment pools are regulated by the Michigan Banking Act. The fair value of the position in the bank investment pools is $1.00 per share and is the same as the reported value of the pool shares. The shares are accessible on demand and act as a sweep account to checking. Interest Rate Risks The College’s investment policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. However, the College manages its exposure to interest rate risk by generally limiting investment maturities to less than one year. Credit Risk The College’s credit risk is limited by the Michigan Public Act 331 and by resolution of the Board of Trustees to invest in limited types of investments as described previously in the note. The College has no investment policy that would further limit its investment choices.

26

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 2 - Deposits and Investments (concluded) Concentration of Credit Risk The College places no limit on the amount the College may deposit or invest in any one issuer. The percent of the College’s investments by insurer at June 30, were as follows: Issuer:

2009

National City Bank Fifth Third Bank Comerica Bank Monroe Bank & Trust Bank of America Key Bank Flag Star National City Bank: Bank investment pool

2008

43% 17 13 17 0 3 7

21% 13 10 19 3 7 0

100%

27 100%

Custodial Credit Risk The College investment policies do not address custodial credit risk. However, all of the bank pooled investment accounts and bank deposit accounts are in the name of the College. Foundation Investment Policy The Foundation of Monroe County Community College has a separate investment policy approved by the Foundation’s board. Allowable types of investments are specified as well as those which are prohibited. The policy emphasis is capital protection with specific guidelines for diversification of investments. The Foundation has an investment committee which reviews written quarterly reports from the investment managers, engaged by the Foundation board.

27

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 3 - Property and Equipment The following table presents the changes in the various fixed class categories for the year ended June 30, 2009 as follows: Beginning Balance Nondepreciable Capital Assets: Land Construction in progress

$ 1,368,163 213,549

Additions

Balance

0 222,986

$ 0 $ 1,368,163 363,265 73,270

1,581,712

222,986

363,265

1,441,433

Depreciable Capital Assets: Land improvements Building and improvements Infrastructure Furniture, fixtures and equipment

3,505,044 38,499,381 2,008,168 4,804,509

0 363,264 116,700 181,298

0 0 0 0

3,505,044 38,862,645 2,124,868 4,985,807

Total Depreciable Capital Assets

48,817,102

661,262

0

49,478,364

Total Capital Assets

50,398,814

884,248

363,265

50,919,797

Less Accumulated Depreciation: Land improvements Building and improvements Infrastructure Furniture, fixtures and equipment

2,637,062 15,207,785 1,346,138 3,393,844

132,420 1,053,757 107,556 306,788

0 0 0 0

2,769,482 16,261,542 1,453,694 3,700,632

Total Accumulated Depreciation

22,584,829

1,600,521

0

24,185,350

Total Nondepreciable Capital Assets

Total Capital Assets, Net

$27,813,985

28

$

Transfers/ Deletions

$26,734,447

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 3 - Property and Equipment (concluded) The following table presents the changes in the various fixed class categories for the year ended June 30, 2008 as follows: Beginning Balance Nondepreciable Capital Assets: Land Construction in progress

$1,368,163 0

Total Nondepreciable Capital Assets

Additions

Transfers/ Deletions

$

$

0 213,549

Balance

0 0

$1,368,163 213,549

1,368,163

213,549

0

1,581,712

Depreciable Capital Assets: Land improvements Building and improvements Infrastructure Furniture, fixtures and equipment

3,505,044 38,499,381 1,914,748 4,544,916

0 0 93,420 259,593

0 0 0 0

3,505,044 38,499,381 2,008,168 4,804,509

Total Depreciable Capital Assets

48,464,089

353,013

0

48,817,102

Total Capital Assets

49,832,252

566,562

0

50,398,814

Less Accumulated Depreciation: Land improvements Building and improvements Infrastructure Furniture, fixtures and equipment

2,484,876 14,106,321 1,236,688 3,100,650

152,186 1,101,464 109,450 283,194

0 0 0 0

2,637,062 15,207,785 1,346,138 3,393,829

Total Accumulated Depreciation

20,938,535

1,646,294

0

22,584,829

Total Capital Assets, Net

$28,893,717

29

$27,813,985

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 4 - Accrued Payroll and Fringes Accrued payroll and fringes include the following as of June 30: 2009 Payroll Vacation compensation Retirement and other fringes

$

2008

907,771 478,980 272,978

$ 814,797 464,593 426,326

$1,659,729

$1,705,716

Note 5 - Retirement Plans Defined Benefit Pension Plan Plan Description -The College participates in the Michigan Public School Employees’ Retirement System (MPSERS), a statewide, cost-sharing, multiple employer defined benefit public employee retirement system governed by the State of Michigan that covers most employees of the College. The System provides retirement, survivor and disability benefits to plan members and their beneficiaries. The Michigan Public School Employees’ Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for the System. That report may be obtained by writing to the System at 7150 Harris Drive, P.O. Box 30171, Lansing, MI 48909-7671 or online at www.michigan.gov/documents/orsschools/CAFR. Funding Policy - Employer contributions to the System result from the effects of implementing the School Finance Reform Act. Under these procedures, the College is required to contribute the full actuarial funding contribution amount to fund pension benefits, plus an additional amount to fund retiree health care benefit amounts on a cash disbursement basis. The combined rates were as follows: October 1 September 30 Rates 2006 to 2007 17.74% 2007 to 2008 16.72 2008 to 2009 16.54 Basic plan members make no contributions, but Member Investment Plan participants contribute at rates ranging from 3 percent to 4.3 percent of gross wages. The College’s contributions to the MPSERS’ plan for the years ended June 30, 2009 and 2008 totaled approximately $2,053,000 and $1,970,000 respectively. Postemployment Benefits - Under the MPSERS’ Act, all retirees participating in the MPSERS’ Pension Plan have the option of continuing health, dental and vision coverage. Retirees electing continuing coverage contribute a monthly portion of the premium based on various factors specified by the retirement system for the health, dental and vision coverages. Required contributions for postemployment health care benefits are included as part of the College’s total contribution to the MPSERS’ plan discussed above. 30

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 5 - Retirement Plans (concluded) Defined Contribution Plan Effective October 1, 1996, existing professional MPSERS members and new professional employees of the College may elect to participate in an optional retirement program (ORP) in lieu of participating in the MPSERS plan. The ORP is a defined contribution plan affiliated with the Teachers Insurance and Annuity Association and the College Retirement Equities Fund (TIAA-CREF). Under the ORP, the College and the participant contribute at the same rate of the participant’s compensation as stated in the funding policy above. Total covered payroll and College contributions were approximately $2,144,700 and $356,000 for the year ended June 30, 2009, and $1,960,300 and $335,000 for the year ended June 30, 2008. Contributions by member employees were $89,118 and $81,961 for 2009 and 2008, respectively. Note 6 - Risk Management The College is exposed to various risks of loss related to property loss, errors and omissions, workers’ compensation, as well as medical benefits provided to employees. The College has purchased commercial insurance for medical benefit and workers’ compensation claims and participates in the Michigan Community College Risk Management Authority risk pool for all other types of claims. Settled claims relating to the commercial insurance have not exceeded the amount of insurance coverage in any of the past three fiscal years. The Michigan Community College Risk Management Authority risk pool program operates as a claims servicing pool for amounts up to member retention limits, and operates as a common risksharing management program for losses in excess of member retention amounts. Members’ premiums are used to purchase commercial excess coverage for claims in excess of $100,000 for each insured amount, and to pay member claims in excess of deductible amounts. The College has a share of the reserve for future claims in the shared-risk pool of $419,305 and $471,586 as of June 30, 2009 and 2008, respectively. Although premiums are paid annually to the Authority, which the Authority uses to pay claims up to the retention limits, the ultimate liability for those claims remains with the College. All payments to the pool were expensed by the College in the year paid. Note 7 - Commitments, Contingencies and Capital Outlay In the normal course of its activities, the College is party to various legal actions. It is the opinion of College officials that the potential claims in excess of insurance coverage resulting from the remaining litigation would not have a material effect on the financial statements. The College has numerous renovation and capital projects in process at the end of each year. Total future commitments related to these projects which are not liabilities as of the fiscal year ends, approximates $170,000 at June 30, 2009 and $206,000 at June 30, 2008.

31

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 8 - Collateralized State Bonds The State of Michigan has made several construction project grants to Monroe County Community College. The Michigan State Building Authority is responsible for financing the State’s 50% grant portion, which is done by selling bonds. The College deeds the related buildings and sites to the Michigan State Building Authority to collateralize those bonds. When the bond obligations are fully paid, the related properties will be deeded back to the College. The following properties are currently collateral for Michigan bonds:

Property West Technology Building and Library La-Z-Boy Center for Business and the Performing Arts

Fiscal Year of Completion June, 2001

States Original Grant 1.05 Million

June, 2005

6.00 Million

Note 9 - Property Taxes The College received 2.1794 mills for both fiscal 2009 and 2008 for current operations. The property taxes were levied on December l of the fiscal year, based on assessed valuation as of the preceding December 31. The taxable values for real and personal property were $6.3 billion and $6.2 billion for fiscal 2009 and 2008 tax collections, respectively. The taxable value is approximately 50% of the properties’ fair market value with limits on the annual increase. Note 10 - Operating Leases Rental expense for building space and equipment totaled $35,022 and $46,595 for fiscal years 2009 and 2008, respectively. Future minimum lease commitments for office equipment as of June 30, 2009, are as follows: 2010 2011 2012 2013 2014 2015-2019

$ 33,908 18,980 17,623 16,825 0 0 $87,336

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Notes to Financial Statements June 30, 2009 and 2008 Note 11 - Foundation at Monroe County Community College, a Component Unit The Foundation at Monroe County Community College is a separate legal entity established as a 501(c)3 corporation to accept, collect, hold and invest donations made for the promotion of educational and cultural activities at and on behalf of the College. Grants from the Foundation to the College for the years ended June 30, 2009 were $142,258 and for 2008 were $273,560. At years end the Foundation and the College had outstanding balances between the entities of $2,426 and $34,538 for 2009 and 2008, respectively. The College provided personnel support, supplies and use of equipment to the Foundation of $201,126 in fiscal 2009 and $185,943 in fiscal 2008. Additionally, the College provided office space and indirect support activities for which a value was not determined.

33

SUPPLEMENTAL INFORMATION

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Combining Balance Sheets June 30, 2009 and 2008

General Fund ASSETS Current Assets Cash and cash equivalents Short-term investments Property taxes receivable (net of allowance $16,160 and $7,910) State appropriation receivable Federal and state receivable Interest receivable Accounts receivable (net of allowance $108,558 and $83,246) Student loans receivable (net of allowance $19,226 and $21,594) Inventories Prepaid expenses and other assets Due from (to) other funds Total Current Assets

Designated Fund

2009 Expendable Student Restricted Loan Fund Fund

Auxiliary Activities Fund

2008 Endowment Fund

Plant Fund

Combined Total

Combined Total

$2,385,523 5,000,000

$559,093 500,000

$1,238,261 0

$82,806 0

$69,071 0

$4,603 612,293

$924,618 3,000,000

$5,263,975 9,112,293

$4,417,526 10,605,804

35,532 753,236 0 19,800

0 0 0 400

0 0 0 0

0 0 102,688 0

0 0 0 0

0 0 0 250

0 0 0 47,200

35,532 753,236 102,688 67,650

63,626 737,144 167,717 126,700

422,202

0

86,835

47,291

0

1,990

0

558,318

508,597

0 19,459 334,443 80,260

0 0 160,768 0

0 237,762 3,375 0

0 0 11,934 (80,260)

16,253 0 0 0

0 0 0 0

0 0 0 0

16,253 257,221 510,520 0

18,193 228,048 426,485 0

9,050,455

1,220,261

1,566,233

164,459

85,324

619,136

3,971,818

16,677,686

17,299,840

Restricted short-term investments

0

0

0

0

0

177,539

0

177,539

177,539

Property and Equipment (net of accumulated depreciation) Land and improvements Infrastructure Buildings and improvements Equipment Construction in progress

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

59,100 0 0 0 0

2,044,624 671,174 22,601,103 1,285,176 73,270

2,103,724 671,174 22,601,103 1,285,176 73,270

2,236,145 662,030 23,291,595 1,410,666 213,549

Total Property and Equipment TOTAL ASSETS

0

0

0

0

0

59,100

26,675,347

26,734,447

27,813,985

$9,050,455

$1,220,261

$1,566,233

$164,459

$85,324

$855,775

$30,647,165

$43,589,672

$45,291,364

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Combining Balance Sheets June 30, 2009 and 2008

General Fund LIABILITIES AND NET ASSETS Current Liabilities Accounts payable Accrued payroll, vacation and fringes Deposits Unearned revenue Total Current Liabilities Net Assets Invested in capital assets Restricted for: Nonexpendable endowments Expendable: Scholarships Loans Other Unrestricted Total Net Assets LIABILITIES AND NET ASSETS

Designated Fund

2009 Expendable Student Restricted Loan Fund Fund

Auxiliary Activities Fund

2008 Endowment Fund

Plant Fund

Combined Total

Combined Total

$344,024

$28,601

$30,272

$26,452

$0

$0

$212,606

$641,955

$731,595

1,633,765 66,087 282,726

0 0 0

7,623 0 0

18,341 0 0

0 0 0

0 0 0

0 0 0

1,659,729 66,087 282,726

1,705,716 70,530 194,352

2,326,602

28,601

37,895

44,793

0

0

212,606

2,650,497

2,702,193

0

0

0

0

0

59,100

26,675,347

26,734,447

27,813,985

0

0

0

0

0

177,539

0

177,539

177,539

0 0 0 6,723,853

0 0 0 1,191,660

0 0 0 1,528,338

46,532 0 73,134 0

0 75,209 0 10,115

0 0 0 619,136

0 0 0 3,759,212

46,532 75,209 73,134 13,832,314

64,644 76,326 73,511 14,383,166

6,723,853

1,191,660

1,528,338

119,666

85,324

855,775

30,434,559

40,939,175

42,589,171

$9,050,455

$1,220,261

$1,566,233

$164,459

$85,324

$855,775

$30,647,165

$43,589,672

$45,291,364

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Combining Statements of Revenue, Expenses, Transfers and Changes in Net Assets For the Years Ended June 30, 2009 and 2008

General Fund REVENUE Operating Revenue Tuition and fees (net of scholarship allowance of $1,852,569 and $1,573,262) Federal grants State grants Nongovernmental grants Auxiliary activities (net of scholarship allowance of $43,385 and $24,459) Indirect cost recoveries Other sources

$7,060,488 17,000 0 0 (7,264) 11,074 218,395

Designated Fund

Auxiliary Activities Fund

2009 Expendable Student Restricted Loan Fund Fund

2008 Endowment Fund

Plant Fund

Combined Total

Combined Total

$508,782 0 0 0

$0 0 0 0

($1,431,290) 676,557 170,044 1,300

$0 0 0 0

$0 0 0 0

$0 0 0 0

$6,137,980 693,557 170,044 1,300

$5,758,721 446,769 316,710 57,502

0 0 0

2,116,145 0 700

(36,121) (11,074) 0

0 0 1,580

0 0 0

0 0

2,072,760 0 220,675

1,953,287 0 260,911

(630,584)

1,580

0

0

9,296,316

8,793,900

Total Operating Revenue

7,299,693

508,782

2,116,845

EXPENSES Operating Expenses Instruction Information technology Public services Instructional support Student services Institutional administration Operation and maintenance of plant Depreciation expense

11,226,473 1,237,464 294,374 3,429,211 2,557,701 2,921,536 3,308,105 0

371,034 215,083 8,006 149,419 40,443 14,343 3,940 0

0 0 0 0 1,914,148 0 0 0

297,553 0 25,215 140,008 1,783,096 7,521 577 0

0 0 0 0 1,177 0 0 0

0 0 0 0 0 2,700 0 0

72,521 (34,831) 0 0 (8,000) (7,800) 345,247 1,600,521

11,967,581 1,417,716 327,595 3,718,638 6,288,565 2,938,300 3,657,869 1,600,521

10,941,857 1,362,476 308,161 3,507,490 5,497,942 2,911,596 3,716,742 1,646,294

Total Operating Expenses

24,974,864

802,268

1,914,148

2,253,970

1,177

2,700

1,967,658

31,916,785

29,892,558

Operating Income (Loss)

(17,675,171)

(293,486)

(2,700)

(1,967,658)

(22,620,469)

(21,098,658)

202,697

(2,884,554)

403

COMMUNITY COLLEGE DISTRICT OF MONROE COUNTY, MICHIGAN Combining Statements of Revenue, Expenses, Transfers and Changes in Net Assets (Continued) For the Years Ended June 30, 2009 and 2008

General Fund NONOPERATING REVENUE (EXPENSES) State appropriations Property tax levy Federal pell grant revenue Investment income Gifts Net Nonoperating Revenue (Expense) Income (Loss) Before Other Revenue and Expenses OTHER REVENUE Capital gifts and grants Increase (Decrease) in Net Assets Transfers In (Out) Net Increase (Decrease) in Net Assets Net Assets - Beginning of Year Net Assets - End of Year

Designated Fund

$4,143,880 13,698,172 0 108,446 0 17,950,498

275,327

0

$0 0 0 15,808 0 15,808

(277,678)

0

275,327

(277,678)

(982,998)

(138,000)

(707,671)

(415,678)

Auxiliary Activities Fund

$0 0 0 0 0 0

202,697

0 202,697 (7,000) 195,697

2009 Expendable Student Restricted Loan Fund Fund

$0 0 2,750,809 0 125,258 2,876,067

2008 Endowment Fund

Plant Fund

Combined Total

$0 0 0 0 0 0

$0 0 0 29,256 0 29,256

403

26,556

0

0

(8,487)

403

26,556

(1,868,814)

(10,002)

0

(20,217)

1,158,217

(18,489)

403

6,339

(8,487)

0

$0 0 0 98,844 0 98,844

(1,868,814)

0

(710,597)

Combined Total

$4,143,880 13,698,172 2,750,809 252,354 125,258 20,970,473

(1,649,996)

0 (1,649,996) 0 (1,649,996)

$4,418,900 13,468,676 2,081,481 548,774 117,375 20,635,206

(463,452)

100,000 (363,452) 0 (363,452)

7,431,524

1,607,338

1,332,641

138,155

84,921

849,436

31,145,156

42,589,171

42,952,623

$6,723,853

$1,191,660

$1,528,338

$119,666

$85,324

$855,775

$30,434,559

$40,939,175

$42,589,171