ALPENA - Alpena Community College Board of Trustees received its audit report from Straley, Ilsley & Lamp P.C. at its meeting on Wednesday night. According to auditors Philip Straley and Mark Sandula, the auditing process went smoothly and the college is in good standing according to their report.
"Tuition and fees only bring in 32 percent of your operating revenues, and the majority of revenues come from grants and other ancillary activities," Sandula said. "Then in your non-operating revenue, the community is supporting Alpena Community College through the use of property taxes and you get 65 percent of your money from the state of Michigan for state appropriations."
Sandula said the balance sheet has essentially expanded for ACC compared to last year.
"The biggest operating expense is instruction," Sandula said. "The second is student services. The restricted fund is basically federal grants that are in and out, and there's no real profit or loss on those."
Three years ago ACC worked with Atlanta to upgrade some of the instruction in Atlanta Community Schools in welding, computer design and other areas through a near $1 million grant from the Kellogg Foundation to carry out the upgrades to some of the instruction. The Kellogg foundation gave ACC the money up-front and ACC has been disbursing it periodically.
Some of the activity in this year's audit, about $232,000, is the last of the funds that are coming out of the restricted fund, which the college has separate for grant funds. With those amounts traveling in and out, it doesn't have a lot of effect on the overall audit, except to track the distribution.
"The purpose of the audit by an independent firm is to show that a public entity is handling its funds correctly, which is a sacred trust. Much of our money comes from taxpayers and tuition from the students who scrape up their hard earned dollars to come here to ACC, and we want to be able to demonstrate that we are handling the funds in a responsible way that befits the public trust," President Olin Joynton said. "That's what we heard from our auditors this evening. After a very thorough study of our accounts, they have given us, what in laymans terms would be called a clean audit."
Joynton said he is proud of the work the staff does every day to keep up with the financial aspects of the college, and it is a great credit to their hard work to have a clean audit.
"Tonight is a culmination, with the acceptance of the audit by the board, of months of work, really ongoing work, all around with our business office staff," Joynton said. "It's a great team and they do their work so carefully and accurately. I'm very proud of the culmination and recognition of their work that we reach tonight."
The audit results showed total revenues for ACC of $11,146,606, and total expenditures of $19,334,724, but after non-operating revenue of $8,160,612 was added, the total change in net assets was $27,506. The college's net position at the end of the year was $15,701,219.
In other business:
* Trustee Florence Stibitz attended a Michigan Community College Association meeting where speakers discussed strategic ambiguity and having an implemented saying with community colleges across Michigan that could be integrated into each community college based on its offerings.
* instructor Lois Darga updated the board on the accounting programs progression and the expectations she has for the program based on previous students' success.
* the board accepted a snowplowing bid from Morgan Forest Products for 2013-14 with rates of pickup usage for $55/use and $85/use of the front loader for snow maintenance.
* gifts, grants and pledges of $99,557 from Sept. 11 through Oct. 8 were accepted by the board with gratitude.
Nicole Grulke can be reached via email at email@example.com or by phone at 358-5687. Follow Nicole on Twitter @ng_alpenanews.