REPORT NO. 2009-176 MARCH 2009 FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE_part2 ppt

MARCH 2009 REPORT NO. 2009-176 -8- Operating Revenues: College (In Millions) $59.3 $54.0 $0.0 $35.0 $70.0 2007–08 2006–07 Tuition-Paying Enrollment (Full-Time Equivalent Students) 20,486 18,390 0 12,500 25,000 2007–08 2006–07 Operating expenses were $179.3 million for the year, 57 percent of which represented personnel services expenses. Net nonoperating revenues of the College increased slightly from $107.6 million to $108.2 million, mainly from a $1.6 million increase in Federal Pell Grant (other nonoperating) revenues. Other revenues were $35.7 million and increased $14.6 million as compared to the prior year, mainly from a $14.3 million increase in State capital appropriations for construction projects at the College. State and local funding accounted for 60 percent of the College’s revenues. Total revenues for the year were $203.9 million. The College’s total revenues and operating expenses for 2007-08 fiscal year are presented in the following charts: Total Operating Expenses: College $179.3 Million Personnel Services 57% Scholarship and Waivers 8% Utilities and Communicat ion 3% Contractual Services 13 % Ot her Services and Expenses 3% M aterial and Supplies 11% Depreciation 5% Total Revenues: College $203.9 Million Ot her 3% Federal and Nongovernmental Grant s and Contracts, and Gift s and Grant s 15 % Student Tuition and Fees, Net 22% Stat e Appropriations and State and Local Grant s and Contracts 60% THE STATEMENT OF CASH FLOWS Cash and investment balances of the College were $58.2 million at the end of the year, an increase of $6.8 million. The cash balances support operations, scholarships, and capital expansion payments. A summary of the College’s cash flows, and cash and investment balances, for the fiscal years ended June 30, 2008, and June 30, 2007, are presented in the following table: This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-176 -9- 2007-08 2006-07 Cash Provided (Used) by: Operating Activities (114,391)$ (107,839)$ Noncapital Financing Activities 113,624 104,433 Capital and Related Financing Activities 4,936 1,694 Investing Activities (7,520) 1,137 Net Decrease in Cash and Cash Equivalents (3,351) (575) Cash and Cash Equivalents, Beginning of Year 15,680 16,255 Cash and Cash Equivalents, End of Yea r 12,329 15,680 Investments, End of Yea r 45,837 35,680 Total Cash and Investments 58,166 $ 51,360 $ Cash Flows and Cash and Investment Balances: College (In Thousands) Cash and Investment Balances at June 30: College (In Millions) $41.8 $4.4 $7.1 $4.9 $32.1 $4.5 $8.4 $6.4 $0.0 $22.5 $45.0 Operations Scholarships, Loan, and Endowment Capital Expansion Other 2008 2007 CAPITAL ASSETS AND DEBT ADMINISTRATION C APITAL ASSETS At June 30, 2008, the College had $296.9 million in capital assets, less accumulated depreciation of $103 million, for net invested in capital assets of $193.9 million. Depreciation charges for the current fiscal year totaled $8 million. The following table summarizes the College’s capital assets at June 30, 2008, and June 30, 2007: This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-176 -10- 2008 2007 Land 8,218$ 8,218$ Other Nondepreciable 15 15 Construction in Progress 21,288 50,292 Buildings 160,818 119,000 Other Structures and Improvements 476 738 Furniture, Machinery, and Equipment 3,091 2,450 Total Capital Assets, Net 193,906 180,713 Capital Assets at June 30: College (In Thousands) D EBT ADMINISTRATION At fiscal year-end, the College had $12.2 million in long-term debt outstanding, compared to $13.9 million the previous year. This net decrease of $1.7 million is related to the amortization of scheduled principal payments on the College’s Deerwood Parking Garage note and State Board of Education (SBE) Capital Outlay Bonds. The SBE issues capital outlay bonds on behalf of the College. The following table summarizes outstanding long-term debt by type for the fiscal years ended June 30, 2008, and June 30, 2007: 2007-08 2006-07 SBE Capital Outlay Bonds 6,500$ 6,980$ Note Payable 5,738 6,917 Total 12,238$ 13,897$ Long-Term Debt at June 30: College (In Thousands) THE FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE FOUNDATION, INC. The Florida Community College at Jacksonville Foundation, Inc. (Foundation), experienced an increase in net assets from $38.9 million at June 30, 2007, to $41.4 million at June 30, 2008. This $2.5 million increase is primarily attributable to the Artist Series surplus and State matching funds. Total revenues and expenses were $11.1 million and $8.6 million, respectively, for the 2007-08 fiscal year, and represent a significant decrease from the prior year’s revenues and expenses of $31.8 million and $13.4 million, respectively. The $20.7 million decrease in revenues was mainly attributable to lower cash contributions, Artist Series revenues, and investment income as compared to the prior year, and the $4.8 million decrease in expenses was mainly attributable to lower Artist Series expenses. ECONOMIC FACTORS THAT WILL AFFECT THE FUTURE Florida Community College at Jacksonville‘s economic condition is closely tied to that of the State of Florida. State funding has been declining due to deficits in general revenue and, as a result, the College experienced a slight decrease in State appropriations in the 2007-08 fiscal year as compared to the prior year. The College’s 2008-09 fiscal year appropriations have further declined by 7.6 percent to $76.2 million as a result of a Special Legislative This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-176 -11- Session held in January 2009. The College anticipated the reduction in appropriations and has determined it has sufficient reserves for the 2008-09 fiscal year. The College’s current financial and capital plans should enable the College to continue the development of new programs to meet the ever changing needs of employers and provide a leadership role in educational and community services for Duval and Nassau counties. REQUESTS FOR INFORMATION Questions concerning information provided in the MD&A, and financial statements and notes thereto, or requests for additional financial information should be addressed to the Associate Vice-President for Financial Services, Florida Community College at Jacksonville, 501 West State Street, Jacksonville, Florida 32202. This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-176 -12- BASIC FINANCIAL STATEMENTS Colle g e Component Unit ASSETS Current Assets: Cash and Cash Equivalents $ 10,750,148$ Restricted Cash and Cash Equivalents 8,332,938 Investments 1,973,630 30,550,296 Accounts Receivable, Net 5,307,286 Notes Receivable, Net 65,703 328,640 Due from Other Governmental Agencies 35,767,909 Due from Component Unit 199,655 Inventories 88,958 Total Current Assets 51,736,079 41,629,084 Noncurrent Assets: Restricted Cash and Cash Equivalents 3,995,688 Investments 39,934,015 Restricted Investments 3,929,477 Depreciable Capital Assets, Net 164,385,652 Nondepreciable Capital Assets 29,520,708 Other Noncurrent Assets 12,667 Total Noncurrent Assets 241,765,540 12,667 TOTAL ASSETS 293,501,619$ 41,641,751$ LIABILITIES Current Liabilities: Temporary Cash Overdraft 7,487,203$ $ Accounts Payable 3,613,245 Salary and Payroll Taxes Payable 763,584 Insurance Contributions Payable 3,161,851 Retainage Payable 1,150,970 Due to Other Governmental Agencies 25,694 Due to College 199,655 Deferred Revenue 3,921 Estimated Claims Payable 2,545,964 Deposits Held for Others 2,451,595 Long-Term Liabilities - Current Portion: Bonds Payable 500,000 Note Payable 1,221,495 Compensated Absences Payable 1,600,000 Total Current Liabilities 24,525,522 199,655 Noncurrent Liabilities: Bonds Payable 6,000,000 Note Payable 4,516,842 Compensated Absences Payable 12,330,644 Postemployment Health Care Benefits Payable 438,288 Total Noncurrent Liabilities 23,285,774 TOTAL LIABILITIES 47,811,296 199,655 FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE A COMPONENT UNIT OF THE STATE OF FLORIDA STATEMENT OF NET ASSETS As of June 30, 2008 This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-176 -13- Colle g e Component Unit NET ASSETS Invested in Capital Assets, Net of Related Debt 181,668,022$ $ Restricted: Nonexpendable: Endowment 24,329,727 Expendable: Grants and Other 3,652,883 15,830,428 Endowments 4,516,960 Capital Projects 38,510,009 Debt Service 151,577 Unrestricted 17,190,872 1,281,941 Total Net Assets 245,690,323 41,442,096 TOTAL LIABILITIES AND NET ASSETS 293,501,619$ 41,641,751$ The accompanying notes to financial statements are an integral part of this statement. FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE A COMPONENT UNIT OF THE STATE OF FLORIDA STATEMENT OF NET ASSETS (Continued) As of June 30, 2008 This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-176 -14- College Component Unit REVENUES Operating Revenues: Student Tuition and Fees, Net of Scholarship Allowances of $12,895,616 44,987,648$ $ Federal Grants and Contracts 7,184,383 State and Local Grants and Contracts 3,758,935 Nongovernmental Grants and Contracts 143,914 Sales and Services of Educational Departments 1,072,354 Auxiliary Enterprises 1,292,718 5,634,717 Other Operating Revenues 895,891 3,486,588 Total Operating Revenues 59,335,843 9,121,305 EXPENSES Operating Expenses: Personnel Services 102,578,232 391,713 Scholarships and Waivers 13,572,723 1,674,065 Utilities and Communications 5,855,626 Contractual Services 23,473,769 5,269,312 Other Services and Expenses 5,319,142 1,149,978 Materials and Supplies 20,510,546 141,591 Depreciation 7,991,230 Total Operating Expenses 179,301,268 8,626,659 Operating Income (Loss) (119,965,425) 494,646 NONOPERATING REVENUES (EXPENSES) State Appropriations 82,482,645 Gifts and Grants 23,654,369 Investment Income (Loss) 2,662,282 (1,261,451) Other Nonoperating Revenues 19,931 Interest on Capital Asset-Related Debt (573,739) Net Nonoperating Revenues (Expenses) 108,245,488 (1,261,451) Loss Before Other Revenues, Expenses, Gains, or Losses (11,719,937) (766,805) Capital Appropriations 33,203,110 Capital Grants, Contracts, Gifts, and Fees 2,521,613 2,359,587 Additions to Permanent Endowments 923,293 Total Other Revenues 35,724,723 3,282,880 Increase in Net Assets 24,004,786 2,516,075 Net Assets, Beginning of Year 221,685,537 38,926,021 Net Assets, End of Year 245,690,323$ 41,442,096$ The accompanying notes to financial statements are an integral part of this statement. FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE A COMPONENT UNIT OF THE STATE OF FLORIDA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS For the Fiscal Year Ended June 30, 2008 This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-176 -15- Colle g e CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees, Net 43,571,432$ Grants and Contracts 11,505,560 Payments to Suppliers (52,079,491) Payments for Utilities and Communications (5,855,626) Payments to Employees (76,236,886) Payments for Employee Benefits (20,864,037) Payments for Scholarships (13,572,723) Net Loans Issued to Students 14,685 Auxiliary Enterprises 1,108,298 Sales and Services of Educational Departments 1,072,354 Other Payments (3,054,489) Net Cash Used by Operating Activities (114,390,923) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations 82,482,645 Gifts and Grants 23,654,369 Other Nonoperating Receipts 7,487,203 Net Cash Provided by Noncapital Financing Activities 113,624,217 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Appropriations 24,518,903 Capital Grants and Gifts 2,521,613 Proceeds from Sale of Capital Assets 19,931 Purchases of Capital Assets (19,892,093) Principal Paid on Capital Debt (1,658,838) Interest Paid on Capital Debt (573,738) Net Cash Provided by Capital and Related Financing Activities 4,935,778 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sales and Maturities of Investments 63,791,485 Investment Income 2,006,953 Purchase of Investments (73,318,944) Net Cash Used by Investing Activities (7,520,506) Net Decrease in Cash and Cash Equivalents (3,351,434) Cash and Cash Equivalents, Beginning of Year 15,680,060 Cash and Cash Equivalents, End of Yea r 12,328,626$ FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE A COMPONENT UNIT OF THE STATE OF FLORIDA STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2008 This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-176 -16- Colle g e RECONCILIATION OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES Operating Loss (119,965,425)$ Adjustments to Reconcile Operating Loss to Net Cash Used by Operating Activities: Depreciation Expense 7,991,230 Changes in Assets and Liabilities: Receivables, Net (1,182,554) Inventories 19,803 Loans to Students 14,685 Accounts Payable 941,987 Deferred Revenue 245 Deposits Held for Others (2,449,452) Compensated Absences Payable (199,730) Postemployment Health Care Benefits Payable 438,288 NET CASH USED BY OPERATING ACTIVITIES (114,390,923)$ The accompanying notes to financial statements are an integral part of this statement. FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE A COMPONENT UNIT OF THE STATE OF FLORIDA STATEMENT OF CASH FLOWS (Continued) For the Fiscal Year Ended June 30, 2008 This is trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009-176 -17- FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE A COMPONENT UNIT OF THE STATE OF FLORIDA NOTES TO FINANCIAL STATEMENTS J UNE 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity . The governing body of Florida Community College at Jacksonville, a component unit of the State of Florida, is the District Board of Trustees. The Board constitutes a corporation and is composed of nine members appointed by the Governor and confirmed by the Senate. The District Board of Trustees is under the general direction and control of the Florida Department of Education, Division of Community Colleges, and is governed by law and State Board of Education rules. However, the District Board of Trustees is directly responsible for the day-to-day operations and control of the College within the framework of applicable State laws and State Board of Education rules. Geographic boundaries of the District correspond with those of Duval and Nassau Counties. Criteria for defining the reporting entity are identified and described in the Governmental Accounting Standards Board’s Codification of Governmental Accounting and Financial Reporting Standards, Sections 2100 and 2600. These criteria were used to evaluate potential component units for which the District Board of Trustees is financially accountable and other organizations for which the nature and significance of their relationship with the District Board of Trustees are such that exclusion would cause the College’s financial statements to be misleading or incomplete. Based upon the application of these criteria, the College is a component unit of the State of Florida, and its financial balances and activity are reported in the State’s Comprehensive Annual Financial Report by discrete presentation. Discretely Presented Component Unit . Based on the application of the criteria for determining component units, the Florida Community College at Jacksonville Foundation, Inc. (Foundation), is included within the College’s reporting entity as a discretely presented component unit. The Foundation is audited by other auditors pursuant to Section 1004.70(6), Florida Statutes. The Foundation’s audited financial statements are available to the public at the College. The Foundation’s financial statements also include the financial activity of its blended component unit, the FCCJ Foundation Real Estate Holding, Inc. (Holding Company). The Holding Company is a subsidiary of the Foundation and was formed exclusively to hold title to certain real property, and to collect and transfer its income to the Foundation in support of the Foundation’s mission. The financial data reported on the accompanying financial statements was derived from the Foundation’s audited financial statements for the fiscal year ended June 30, 2008. This is trial version www.adultpdf.com [...].. .MARCH 2009 REPORT NO 2009- 176 FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE A COMPONENT UNIT OF THE STATE OF FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2008 The Foundation is also a direct-support organization, as defined in Section 1004.70, Florida Statutes, and although legally separate from the College, is financially accountable to the College The Foundation is managed... public colleges and universities as prescribed by the Governmental Accounting Standards Board (GASB) The National Association of College and University Business Officers (NACUBO) also provides the College with recommendations prescribed in accordance with generally accepted accounting principles promulgated by GASB and the Financial Accounting Standards Board (FASB) GASB allows public colleges various reporting... independently, outside the College s budgeting process, and its powers generally are vested in a governing board pursuant to various State statutes The Foundation receives, holds, invests, and administers property and makes expenditures to or for the benefit of the College Basis of Presentation The College s accounting policies conform with accounting principles generally accepted in the United States of America... reporting options The College has elected to report as an entity engaged in only business-type activities This election requires the adoption of the accrual basis of accounting and entitywide reporting including the following components: Management’s Discussion and Analysis Basic Financial Statements: • Statement of Net Assets • Statement of Revenues, Expenses, and Changes in Net Assets • Statement of Cash... of Cash Flows • Notes to Financial Statements Basis of Accounting Basis of accounting refers to when revenues, expenses, and related assets and liabilities are recognized in the accounts and reported in the financial statements Specifically, it relates to the timing of the measurements made, regardless of the measurement focus applied The College s financial statements are presented using the economic... recognized when all applicable eligibility requirements, including time requirements, are met The College s component unit uses the accrual basis of accounting whereby revenues are recognized when earned and expenses are recognized when incurred, and follows GASB standards of accounting and financial reporting This is trial version www.adultpdf.com -18- . version www.adultpdf.com MARCH 2009 REPORT NO. 2009- 176 -17- FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE A COMPONENT UNIT OF THE STATE OF FLORIDA NOTES TO FINANCIAL STATEMENTS J UNE 30, 2008. trial version www.adultpdf.com MARCH 2009 REPORT NO. 2009- 176 FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE A COMPONENT UNIT OF THE STATE OF FLORIDA NOTES TO FINANCIAL STATEMENTS (C ONTINUED) J UNE. 6,980$ Note Payable 5,738 6,917 Total 12,238$ 13,897$ Long-Term Debt at June 30: College (In Thousands) THE FLORIDA COMMUNITY COLLEGE AT JACKSONVILLE FOUNDATION, INC. The Florida Community College