Agenda Item Background
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 June 30, 2015 and 2014, respectively presents the overall financial picture of the university. An item of high interest is that the financial statements will look very different once the effects of GASB 68 are quantified and recorded. The following are specific key points related to the June 2015 and 2014 financial statements.
Accounts Receivable has decreased $7.1MM since this time last year. This is due to grants receivable being reduced by $2.7MM and student accounts receivable being reduced by $4.4MM. The reduction in student accounts receivable is due to an increase in the allowance for doubtful accounts of $3.2MM for this year.
Other current liabilities showed a decrease over prior year of nearly 455% which is approximately $417K. There is a problem where a small amount of student refunds is being recorded. They are being entered to a liability account incorrectly. This amounts to nearly $412K. This will be researched and corrected in the final June 2015 financial statements.
- Student Tuition and Fees, Residence Halls and Dining revenue are less than the prior year due to a decrease in enrollment. This is expected at this point and has been discussed previously. There are no other items of note related to revenue.
Academic Support went up by $443K (18.2% increase) over the prior year which is due primarily to an increase in salaries and benefits of $200K and an increase of $243K in operating expenses. Operating expenses related to grants increased, while there was a reduction in E&G operating expenses.
Operations and maintenance increased by $520K (11.1%) which is due primarily to an increase in salaries and benefits of $354K and an increase in operating expenses of $166K. The increase in operating expenses was primarily in the areas of repairs and insurance (fire and auto).
Other Auxiliaries increased by $756K (110%) over the prior year which is due primarily to utilities of $650K being recorded here. This will be researched and adjusted for final June 2015 financial statements. An allocation entry is likely necessary.
There was only one other expense line that saw an increase over the prior year. It was under 6%. The other expense lines reflect a decrease over the prior year.
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