Agenda Item Background
| To: | Board of Regents
Finance Committee | Date:
April 23, 2015 |
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| From: | Mr. Mikeal Pinkard, Interim Vice President for Finance and Facilities | |
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| Subject: | Unaudited Comparative Financial Statements for the nine months ended March 31, 2015 | |
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| Reason for Consideration: | Informational Item | Enclosures: Yes |
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The comparative Statement of Net Position (SNP), Statement of Revenues, Expenses and Changes in Net Position (SRECNP) as well as the Statement of Cash Flows (SCF) as of March 31, 2015 and 2014, respectively. The following are specific key points related to the March 2015 and 2014 financial statements.
Accounts Receivables decreased from $12.2M to just under $6.0M or by 51% since this time last year. This is due to grants receivables being reduced by $1.1M and student accounts receivable being reduced by $5.1M. This was done in two entries, one in August 2014 and one in September 2014. These entries were authorized by Ms. Deborah Martin, Associate Vice President Finance. The reduction in student accounts receivable is due to an increase in the allowance for doubtful accounts by that amount. Although significant emphasis has been placed on student AR this continues to be an issue.
Accounts Payable and Accrued Liabilities increased from $2.7M to $5.3M or by 92%. This was influenced by Accounts Payable increasing by $225K over the prior year and Payroll Liabilities increasing by $2.3M. The change in Payroll Liabilities is due in large part to timing. We have to accrue 2 weeks to get our financials out by the 5th working day after the end of each month. The remainder of the change in Payroll Liabilities was due to those liability payments not being recorded timely when paid. The payments were made on time, but the recording the payments was not recorded. These were recorded in early April. This will be done when payment is made going forward with no exceptions.
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