Notes

Outline

Attachment FPO – 9 FY 2000-01 Results & FY 2001-02 Budget Update Prepared by: Todd J. Poppe Vice President, Finance

FY 2000-01 Results MATC’s accounting records were closed on September 7, 2001 and submitted to the independent certified public accounting firm of Virchow, Krause & Company, LLP.  Accordingly, the amounts presented for FY 2000-01 are preliminary and subject to change.  Audited results will be presented to the MATC Board of Directors in November.

FY 2000-01 Results REVENUES (000 omitted) Projected $125,657 Preliminary $125,361 Difference - $       ($296) Difference - %        (.2%)

FY 2000-01 Results EXPENDITURES (000 omitted) Projected $123,545 Preliminary $123,380 Difference - $        $165 Difference - %         .1%

FY 2000-01 Results FUND BALANCE (000 omitted) Preliminary Revenues $125,361 Preliminary Expenditures $123,380 Excess Revenues     $1,981 Fund Balance Designated for Operations Beginning   $11,465 or   9.3% Ending   $13,364 or 10.8% Board Target: 10% – 15%

FY 2000-01 Results ONE-TIME ITEMS Employer WRS rebate of $2 million Capitalization of program acquisitions increased general fund tax levy $1.3 million Participation fee refund of $635,000 Online curriculum catch-up of $321,000 Without these one-time items, the general fund would have ended the year with a  $363,000 deficit

FY 2001-02 Budget The budget reflects the amounts approved by the MATC Board of Directors.  Adjustments reflect administrative proposals.

FY 2001-02 Budget REVENUES (000 omitted) Approved $125,161 Adjusted $129,169 Difference - $     $4,008 Difference - %        3.2%

FY 2001-02 Budget Proposed Adjustments Reflect: Preliminary property value growth Increase FTE projection to 12,150 from     11,825 Revised state aid estimates   Approved state budget Preliminary FY 2000-01 results

FY 2001-02 Budget EXPENDITURES (000 omitted) Approved $126,311 Adjusted $129,169 Difference - $     $2,858 Difference - %        2.3%

FY 2001-02 Budget Proposed Adjustments Reflect: The administration is not prepared to present specific recommendations at this time.  However, we are committed to providing a balanced budget without the use of fund balance and that focuses new resources on teaching and learning.  Items being considered include the following: Maintenance of PT faculty service levels

FY 2001-02 Budget Items Under Consideration Curriculum development and updating Director, Enterprise Operations (no general fund impact) Coordinator, Distance Education Recruitment & retention initiatives Increased student employment pay rates (no cost impact as budget is adequate) Regional campus administration Marketing

FY 2001-02 Budget Items Under Consideration Grant Thornton market analysis recommendations Increase fringe benefit budget based on FY 2000-01 preliminary results Decrease utilities, telephone and general insurance based on FY 2000-01 preliminary results Decrease telephone to reflect capitalization of long-term lease of DS3 lines

FY 2001-02 Budget Next Steps Receive input from FPO Receive certified property values Finalize recommendations for FPO consideration in conjunction with formal budget modification in October Board considers budget modifications in October (6 affirmative votes are required to modify the budget)

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