HomeMy WebLinkAboutOakland Community College - Public Financial ReportPOPULAR ANNUALFINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2021
2 2021 POPULAR ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Letter from the Chancellor and CFO............................................... 3
Board of Trustees ............................................................................... 4
Organizational Chart ......................................................................... 5
History, Overview and Fast Facts ................................................. 6–7
Points of Pride ................................................................................. 8-9
Strategic Plan ............................................................................. 10–11
Awards for Financial Reporting ..................................................... 12
Financial Planning and Financial Highlights .......................... 13-16
Where Does the Money Come From? .................................... 17–18
What is the Money Used For? ........................................................ 19
Facilities and Grounds .............................................................. 20-21
Major Capital Projects ..................................................................... 22
Demographic and Economic Information .................................... 23
2021 POPULAR ANNUAL FINANCIAL REPORT 3
Roberta A. Remias, CPA
Vice Chancellor for Administrative Services
A Letter from the Chancellor and Vice Chancellor for Administrative Services
Greetings:
At Oakland Community College our mission is simple – OCC is committed to empowering our students to succeed and advancing our community –
and this is reflected in everything we do. OCC has been providing the residents of Oakland County and surrounding areas with high quality,
accessible educational opportunities for more than five decades.
In these unprecedented times, Oakland Community College continues to support and advance the success and well-being of its students and
community members by providing education and student services where and when they are needed. Since the initial outbreak of the respiratory
disease known as COVID-19 over eighteen months ago, the College’s commitment to keeping our students on track with their educational goals has
always been our focus. This past year has been like no other, with a worldwide pandemic altering the way we live, learn and teach. To say that it has
been difficult for all of us is an understatement, but through these extraordinary challenging circumstances, our commitment to student success has
never wavered. Every day, Oakland Community College continues to provide access to invaluable and transformative education.
Mindful that part of the funding OCC receives is entrusted to us by taxpayers, our commitment to responsible resource management remains
a priority. It is our pleasure to present Oakland Community College’s Popular Annual Financial Report (PAFR) for the year ended June 30, 2021.
This PAFR is intended to provide the Oakland County community with important financial information about the College in an easy-to-read, user-
friendly format.
We believe both integrity and transparency in financial reporting are essential to maintaining trust with our stakeholders. It is our hope the graphs
and financial information presented in this PAFR will strengthen public confidence in Oakland Community College and educate our community
about how tax dollars are being used to support students and positively impact the lives of Oakland County residents and our community at large.
Using data gleaned from the College’s Annual Comprehensive Financial Report, the PAFR includes information on the College finances, the
organizational structure at OCC and the current strategic plan as well as statistical and historical information about the College. This report does not
replace the Annual Report, but includes important details relevant to the College’s financial condition. Audited by Plante Moran, the Annual Report
received an unmodified opinion for fiscal year ending June 30, 2021.
OCC continues its strong commitment to best-in-class financial management and fiscal stewardship as recognized by the Government Finance
Officers Association (GFOA), an organization dedicated to enhancing and promoting the professional management of governmental financial
resources. Oakland Community College has received the Best Practices in Community College Budgeting Award, the Certificate of Achievement
for Excellence in Financial Reporting and the Popular Annual Financial Reporting Award from the GFOA.
The College is grateful for the support offered by our Board of Trustees and the entire College community in developing this report. Electronic
copies of the Annual Report and PAFR are available on the College’s website at www.oaklandcc.edu. As you review this report, we invite you to
share any questions, concerns or comments you may have by contacting raremias@oaklandcc.edu.
Sincerely,
Peter M. Provenzano, Jr., CPA, CGMA
Chancellor
4 2021 POPULAR ANNUAL FINANCIAL REPORT
SHIRLEY J. BRYANT
Trustee
Elected: Since 2008
PAMELA S. JACKSON
Chairperson
Elected: Since 2016
A 7-member Board of Trustees governs Oakland Community College in all policy matters of the College requiring attention or action.
The Trustees, in collaboration with the College Chancellor, are charged with fulfilling the goals set forth in the College Mission Statement.
The members of the board are elected on a non-partisan, at-large basis by voters living within the College district, an area that generally
coincides with the boundaries of Oakland County. Trustees serve as volunteers and are not paid for their services. All appointments are
for six year terms. The administrative responsibilities of Oakland Community College has been delegated by the Board of Trustees to
the Chancellor and administrative staff.
CHRISTINE M. O’SULLIVAN
Trustee
Elected: Since 2012
SUSAN E. ANDERSON
Treasurer
Elected: Since 2016
PAMALA M. DAVIS
Trustee
Elected: Since 1994
SUSAN GIBSON
Secretary
Elected: Since 2020
KATHLEEN A. BERTOLINI
Vice Chairperson
Elected: Since 2016
2021 POPULAR ANNUAL FINANCIAL REPORT 5
Board of Trustees
College Communications
Marketing
Graphics
Vice Chancellor,
Marketing & Communications
Vice Chancellor,
Student Services Vice Chancellor, Human Resources Provost Vice Chancellor, Information Technology
Vice Chancellor, Administrative
Services
Vice Chancellor, College Advancement
Vice Chancellor, Legal Affairs Chief Strategy Officer
Student Services
Counseling
Financial Aid
Athletics
International Student Services
Registrar
Admissions
Personnel Services
Employee Relations
Employee Benefits
Title IX
Diversity, Equity & Inclusion
Academic Departments
Distance Learning
Learning Resources/Library
Contract Training
Continuing
Education
Application Services
Network Administration
Technology Services
Desktop
Support
Financial Services
Budget & Financial Planning
Purchasing & Auxiliary Services
Public Safety
Facilities/
Physical Plant
Environmental
Health & Safety Risk Mgmt
Office of Institutional Effectiveness
Institutional Research,Quality & Planning
Government & Community Relations
Component Unit- Foundation
District Residents
Chancellor
6 2021 POPULAR ANNUAL FINANCIAL REPORT
by a new campus in Southfield. The Royal
Oak buildings were replaced by a new
campus complex which opened in the
fall of 1982.
Since 1964, over 1 million students have
attended OCC, with over 85,000 degrees
granted. Students receive a quality
education that either prepares them for
employment in diverse, in-demand fields,
or starts their path toward other academic
achievements and lifelong learning
goals. Currently, OCC offers nearly
100 certificate and degree programs
reflecting in demand occupations in Oakland
County, and provides unique academic,
cultural and social experiences on each
of its five campuses. Oakland Community
College has become a source for community
development and engagement since
opening its doors more than 50 years ago
providing a high quality, affordable higher
education opportunity to our community.
OCC’s dedicated faculty and staff are
committed to providing academic and
developmental experiences that will allow
each student to reach their full potential
and enhance the diverse communities they
serve. OCC is a caring college that values
innovation, strong student outcomes, high-
quality service, and professionalism, at an
affordable price.
The Oakland Community College District
(“the College” or “OCC”) was established
by the electorate of Oakland County,
Michigan, on June 8, 1964. The area served
encompasses approximately 900 square
miles and has an assessed valuation of over
$25 billion. The county contains 28 public
school districts with 45 public high schools.
In addition, there are 37 non-public high
schools in the district. With an estimated
population of 1.24 million people, Oakland
County is home to a mix of urban and
rural communities, encompassing
62 cities, villages and townships, including
32 downtown areas and many scenic
natural settings.
The College opened in September 1965,
with a record community college initial
enrollment of 3,860 students on two
campuses — Highland Lakes, a renovated
hospital in what was Union Lake, and
Auburn Hills, a former Army Nike missile
site in what was Auburn Heights.
The Orchard Ridge Campus, with its award-
winning architectural design, opened in
Farmington Hills in September 1967. First
housed in leased facilities in Oak Park,
the Southeast Campus System expanded
through the purchase and remodeling of
buildings at a second site in Royal Oak. In
1980, the Oak Park facilities were replaced
HISTORY AND OVERVIEW OF OAKLAND COMMUNITY COLLEGE
Historical photos courtesy of OCC Archives.
2021 POPULAR ANNUAL FINANCIAL REPORT 7
1 41 jobs
in Oakland County is supported by OCC
activities and students
of every
— among the lowest in Michigan
$99 cost per contact hour #1
in Michigan
transfer
institution 18% ROI
OCC students’ historical
return on investment in OCC
STUDENTS
by the numbers
Credit hours taken in 2021: 305,591
Unduplicated head count: 23,980
55.7% male; 38.5% female
70.8% are part-time students
FACILITIES
by the numbers
400+ classrooms on 5 campuses
500+ acres over 6 sites
Nearly 2.2 million square feet
in facilities
MOST POPULAR PROGRAMS
by the numbers
Communication, Arts, and Humanities 26.1%
Business and Information Technology 20.8%
Nursing and Health Professions 19.6%
Mathematics, Natural and Life Sciences 7.6%
Engineering, Manufacturing
and Industrial Technologies 6.3%
Social Science 5.2%
Public Services 3.7%
Learning Resources 0.2%
Major Undeclared/Unknown 10.5%
FAST FACTS
More than 1 million
students have attended OCC
approximately100,000
degrees and certificates granted
8 2021 POPULAR ANNUAL FINANCIAL REPORT
COLLEGE
College Academics & Student Services
One of Michigan’s largest multi-campus community
college and top transfer institution in the state with
nearly 100 degrees and certificates programs
Higher Education Emergency Relief Funds distributed
more than 7,000 awards, providing nearly $7
million in direct funding to eligible students
and 3,800 laptops supporting remote, COVID-
safe learning. Additional institutional funds used
for technology infrastructure, software, training
and services supporting student learning.
Online campus is 100% ADA compliant, offering 24/7
student services to assist students anytime/anywhere
Launched 14 fully online degree and certificate programs
Launched Academic Teaching & Learning Center
Awarded Gold Status by Michigan Veterans
Affairs Agency for sixth consecutive year
Awarded more than $250,000 in scholarship dollars
Honored nearly 2,000 graduates in first-
ever Virtual Commencement in 2020
Nearly 150 attendees and families honored
at 2021 Commencement Car Parade
Ranked #1 for best college in Michigan for 2020-
21 by edsmart.org based on affordability, student
satisfaction, academic quality and post-education salary
Programs
One of the largest nursing associate degree programs
in the nation
2021 POINTS OFPRIDE
2021 POPULAR ANNUAL FINANCIAL REPORT 9
Lead college and fiduciary for multi college/agency
collaboration expanding apprenticeships in southeast
Michigan through a $4 million federal grant
PEOPLE
Faculty/Staff & Students
English Faculty Suba Subbarao awarded League
for Innovation Innovator of the Year Award
Student Tala Alahmar elected 2021 International
President of Phi Theta Kappa Honor Society
Associate Provost of Academics and Workforce
Joe Petrosky received the “2020 Lighthouse
Award” from the Michigan Boating Industries
Association in recognition of his efforts to bring
marine technology education to Michigan
Dean of Communications, Arts and Humanities
Cindy Carbone named 2021 Phi Theta Kappa
Distinguished College Administrator
Director of Government and Community
Relations Eunice Jeffries honored as Michigan
Chronicle’s 2021 Women of Excellence
Researchers Dr. Steve Simpson and Zheng Wang
won best presentation at the Michigan Association
of Institutional Researchers annual conference for
“Diversity, Equity, Inclusion and Strategic Planning:
How to Advance Institutional Policy through BI Tools”
Largest English as a Second Language program in Michigan
Sign Language Interpreter Program is first and only
accredited program in Michigan, one of only four
accredited associate degree programs nationwide
Largest police academy in southeast Michigan
Fire Academy is only nationally and internationally
accredited program in Michigan
Administration
Provided Oakland County use of the Orchard Ridge
Campus parking lot for drive-through COVID testing
Comprehensive Annual Financial Report Financial
Award of Excellence, one of only two community
colleges receiving this distinction in Michigan
Award for Outstanding Achievement for
the Popular Annual Financial Report
Marketing & Communications team awarded Gold
and Bronze Medallion Awards from the National
Council for Marketing & Public Relations
OCC Partnership with Detroit Institute of Arts’ Inside|Out
program featured 15 DIA reproductions across all campuses
Economics & Employability
Economic and Workforce Development leader
in business and industry providing nearly $5
million in contract training to 22 companies
Top school in Michigan for awarding skill certifications through
the National Coalition of Certification Centers (NC3) Auto
servicing faculty head Claude Townsend is the only certified
NC3 Master Instructor at a Michigan community college
10 2021 POPULAR ANNUAL FINANCIAL REPORT
STRATEGIC PLAN
Implement a Strategic Enrollment
Management Framework
Promote a Climate of Educational
Innovation and Excellence
Promote the Holistic Development
of all Individuals
Implement Innovative, Comprehensive
and Effective Student Support Services
Advance Diversity, Inclusion, Civility,
and Equity Policy and Practice
Improve Retention, Persistence,
and Completion
In 1966, the Community Colleges
Act helped institutions such as OCC
define their mission. In 2018 OCC
redefined its mission statement
to be succinct and focused.
Mission
“OCC is committed to empowering
our students to succeed and
advancing our community.”
OCC’s vision
Excellence in all we do...
Become the college of choice.
Become the partner of choice.
Become the employer of choice.
Our Strategic Plan is a roadmap for
advancing the College and recognizes
that our students, staff, and our
community are all essential partners in
our collective success. In alignment with
the College’s Mission, Values, and Vision,
the Strategic Plan advances Strategic
Directions and Strategic Objectives to
create an inclusive and action-oriented
model of college advancement.
Strategic Direction 1
Optimize Educational Offerings
& Opportunities to meet the
Needs of the Community
Promote Educational Access
Strategic Direction 2
Improve Institutional Culture & Climate
Promote a Culture of Accountability
to Meet Shared Goals
Improve the Availability, Access,
and Timely Publication of
Essential Institutional Data
Develop and Deploy Intentional
Communication Structures and Systems
Promote a Culture of Collaboration,
Civility, Inclusion, and Equity
2021 POPULAR ANNUAL FINANCIAL REPORT 11
Planning
Through a robust, comprehensive, cyclical
strategic planning cycle, the College
continually uses data and intensive
collaboration across the organization for
continuous improvement, evaluation,
and mission-driven strategies to achieve
its vision and hold true to its values.
Monitoring Progress
In order to determine progress in achieving
established objectives, a system must
be in place that tracks key performance
indicators (KPIs) and reports results to
stakeholders on a regular basis. The
College’s Board of Trustees adopted a
model of policy governance in 2018,
which includes an ongoing system of
monitoring reports that aligns with
strategic planning directions, objectives
and actions, showing their impact on the
Board’s Ends. The Board’s Ends are the
College’s purpose, and related statements
that clearly state the desired results of the
College’s actions; they describe the needs
to be met, for whom and at what cost.
Board Ends as established in Board
policy include:
Accreditation
Career & Technical Education
College Readiness
Transfer Education
Workforce Training
Continuing Education
Student Services
Diversity, Equity & Inclusion
OCC’s monitoring reports provide
the Board with a comprehensive and
consistent evaluative framework to
assess overall institutional effectiveness.
Reports are delivered on a semester basis
(October, February, and June) and track
continuous process improvements related
to strategic key performance indicators,
culminating in an annual report (August).
Core key performance indicators include:
Headcount enrollment
Average credit hour enrollment
Conversion rate (admitted to enrolled)
Course success
College readiness attainment
Fall to winter retention
Fall to fall persistence
Earned degrees and certificates
Government Finance Officers Association
Award for Outstanding Achievement in Popular Annual Financial Reporting
Presented to
Oakland Community College
Michigan
For its Annual Financial Report
for the Fiscal Year Ended
2020
Executive Director/CEO
12 2021 POPULAR ANNUAL FINANCIAL REPORT
The Government Finance Officers
Association (GFOA) awarded a Certificate
of Achievement for Excellence in Financial
Reporting to Oakland Community College
for its Annual Comprehensive Financial
Report for the fiscal year ended June
30, 2020. This was the sixth consecutive
year that the College has received
this prestigious award. In order to be
awarded a Certificate of Achievement, a
government unit must publish an easily
readable and efficiently organized annual
comprehensive financial report whose
contents conform to program standards.
Such an Annual Report must satisfy both
generally accepted accounting principles
and applicable legal regulations.
A Certificate of Achievement is valid for
a period of one year only. We believe
that our current Annual Report for fiscal
year ended June 30, 2021 continues to
conform to the Certificate of Achievement
program requirements and we are
submitting it to the GFOA to determine
its eligibility for another Certificate.
In addition, the GFOA has given an Award
for Outstanding Achievement in Popular
Annual Financial Reporting to Oakland
Community College for its Popular Annual
Financial Report (PAFR) for the fiscal year
ended June 30, 2020. This is the third year
that the College has received this award.
The Award for Outstanding Achievement
in Popular Annual Financial Reporting is
a prestigious national award recognizing
conformance with the highest standards
for preparation of state and local
government popular reports. In order
to receive an Award for Outstanding
Achievement in Popular Annual Financial
Reporting, a government unit must
publish a Popular Annual Financial Report,
whose contents conform to program
standards of creativity, presentation,
understandability and reader appeal.
An Award for Outstanding Achievement in
Popular Annual Financial Reporting is valid
for a period of one year only. We believe our
current report for fiscal year ended June 30,
2021 continues to conform to the Popular
Annual Financial Reporting requirements
and we are submitting it to the GFOA to
determine its eligibility for another award.
For three consecutive years, the College
has received the GFOA’s highest budget
award. The latest recognition was received
from the GFOA on March 15, 2021. On
that date the College was presented with
the Distinguished Budget Presentation
Award for its June 30, 2021-2025 budget
document, along with a Certificate of
Recognition for Budget Preparation to the
Budget and Financial Planning Department.
The awards are valid for a period of one
year only. The College believes its current
budget document continues to conform
to program requirements, and we are
submitting it to the GFOA to determine its
eligibility for another award. The continued
participation in the program represents
the College’s support of best practices
in community college budgeting and a
commitment to budget process excellence.
AWARDS FOR FINANCIAL REPORTING
2021 POPULAR ANNUAL FINANCIAL REPORT 13
additional expenses incurred due to the
disruption caused by COVID-19 to College
operations, the College received local and
state grants and emergency relief from the
federal government. Three federal grants
received were funding from Coronavirus
Aid, Relief, and Economic Security Act
(CARES), Coronavirus Response and
Relief Supplemental Appropriations Act
(CRRSAA) and American Rescue Plan
(ARP). For fiscal year 2021, $6.2 million in
grants were awarded to students and $15.9
million in grant funds were received for
institutional expenses and lost revenues.
The severity of the continued impact due
to COVID-19 on the College’s financial
condition, results of operations or cash
flows will depend on a number of factors,
including, but not limited to, the duration
and severity of the pandemic and the
extent and severity of the impact on the
College’s community, all of which are
uncertain and cannot be predicted.
The Board of Trustees has a fiduciary
responsibility to ensure that public funds
are used in a transparent, ethical, and
fiscally responsible manner. The College
has a policy approved by the Board that
requires annual budgeting to ensure a
net position that reflects a minimum of
three months of operating expenses. In
addition to the operating expense reserve,
the College also has designated funds
for quasi endowment and capital outlay.
Oakland Community College makes
every effort to keep tuition affordable with
Another way Oakland Community
College meets its mission is through
financial accountability; the allocation and
appropriate use of financial resources is a
priority in all we do to serve our students
and honor our fiduciary responsibility to
the community. The College has continually
addressed budget issues over the past
several years by cutting costs throughout
theCollege and monitoring all sources of
revenue. In addition, the College prepares
a five-year forecast to better plan and meet
any budget shortfalls head-on by looking
at all sources of income and expenses
across all funds within the College.
Fiscal year 2021 continued to be
challenging after the initial outbreak of
a respiratory disease caused by a new
coronavirus a pandemic, now known as
COVID-19 in the last quarter of 2020. The
College quickly pivoted to a remote online
learning environment In March 2020 and
continued a mostly remote learning platform
throughout the 2021 academic year. The
College continued to maintain financial
operations as well as all student services
to the College community by utilizing
technology in all areas of the College. In fall
2021, the College returned to in-person,
on-campus instruction but has greatly
enhanced its online learning offerings to
meet demand and continues to utilize
enhanced technology to provide student
services and monitor financial operations.
To help offset the financial impact to
both the students and the losses and
modest inflationary increases annually.
The College charges students billable
contact hours to address the additional
cost of high contact courses such as
science courses with labs, culinary courses,
nursing courses, and courses in other
health professions. While over the past
several years, tuition rates have increased
annually, the College’s In-District rate
and overall fees remain the lowest of the
28 Michigan community colleges. The
College’s out of district/out of state rate
is about average when compared to the
other Michigan community colleges.
OCC’s Board of Trustees and executive
leadership remains committed to offering
affordable education to all students.
With gross tuition and fees accounting
for approximately a third of the College’s
revenue when compared to state
appropriations and property taxes, and
few viable options available to diversify
revenue sources, the College finds itself
with the challenge of balancing decreasing
enrollment with increasing costs and
decreasing revenue. As mentioned
earlier, the College has addressed these
shortfalls and balanced the budget by
cutting costs and gaining efficiencies.
FINANCIAL PLANNING
14 2021 POPULAR ANNUAL FINANCIAL REPORT
FINANCIAL HIGHLIGHTS
STATEMENT OF
STATEMENT OF NET POSITION
(in millions)
The Statement of Net Position most
notably includes the College’s assets,
liabilities and net position as of the last
day of the fiscal year, June 30, 2021. An
asset is an economic resource. Anything
tangible or intangible that can be owned
or controlled to produce value and that is
held by the College to produce positive
economic value is an asset. Current assets
include accounts receivable and inventory,
while capital assets include such items
as buildings and equipment. A liability is
defined as the future sacrifices of economic
benefits that the entity is obliged to make to
other entities as a result of past transactions
or other past events, the settlement
of which may result in the transfer or
use of assets, provision of services or
other yielding of economic benefits in
the future. Net Position is the residual
of all other elements presented in the
Statement of Net Position. The Statement
of Net Position also includes deferred
outflows of resources and deferred
inflows of resources. A deferred outflow of
resources is a consumption of net position
that is applicable to a future reporting
period. A deferred inflow of resources
is an acquisition of net position that is
applicable to a future reporting period.
The Statement of Revenues, Expenses,
and Changes in Net Position focuses on
the costs of College’s activities, which are
supported primarily by property taxes,
state appropriations and tuition and fees.
The following is an overview of the
College’s financial operations for the
fiscal year ended June 30, 2021. The
information contained within this Popular
Annual Financial Report is extracted
from the financial information contained
within the FY2021 Annual Comprehensive
Financial Report. The Annual Report is
a more detailed and complete financial
presentation prepared in conformance
with generally accepted accounting
principles (GAAP) and is audited by
the College’s independent auditors,
Plante Moran, receiving an unmodified
opinion. The financial information for
the College’s Foundation, a component
unit, is not included within this Popular
Annual Financial Report. The statistical
and demographic data is taken from
various sources and is unaudited. The
Annual Report and Popular Annual
Financial Report are both available
on the College’s website: oaklandcc.
edu/about/transparency-at-occ
ASSETS
Current Assets ...............................................$68.2
Non-current assets:
Long Term Investments ..............................$333.8
Capital assets – non-depreciable ................$43.0
Capital assets, net of depreciation .............$99.7
► Total assets .............................................$544.7
► Total Deferred outflows
of resources ............................................$57.9
LIABILITIES
Current liabilities ...........................................$25.1
Non-current liabilities .................................$246.2
► Total liabilities .......................................$271.3
► Total Deferred inflows of resources ........$45.0
NET POSITION
Net investment in capital assets ................$141.8
Restricted .........................................................$0.7
Unrestricted .................................................$143.8
► Total net position ..................................$286.3
2021 POPULAR ANNUAL FINANCIAL REPORT 15
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
(in millions)
Statement of Net Position
The financial statements report
information on the College as a whole.
These figures report the College’s
financial position as of June 30, 2021
and changes in net position for the year
ended June 30, 2021. The College’s
Statement of Net Position at June 30,
2021, had assets of $544.7 million,
and liabilities of $271.3 million.
In 2015, the College implemented
GASB 68 and recognized the College’s
share of the Michigan Public School
Employees’ Retirement System (MPSERS)
unfunded net pension liability. The net
pension liability at June 30, 2021 was
$211.4 million. In 2018, the College
implemented GASB 75 and recognized
the College’s share of the MPSERS
unfunded OPEB liability. The net OPEB
liability at June 30, 2021 was $32.3 million.
The net pension and OPEB liabilities
result from the College’s participation
in MPSERS, a statewide, cost-sharing,
multiple employer defined benefit
public employee retirement system.
The College has $141.8 million invested
in capital assets, net of accumulated
depreciation of $313.2 million at June
30, 2021. Additions to capital assets
during 2021 included costs for both
internal and external maintenance and
renovation projects at various campus
sites. Capital additions were $31.4 million
during 2021. In 2021, the College paid its
fourth payment on a 5-year installment
purchase agreement for the purchase
of computer hardware, software and
maintenance. The remaining payments
of principal and interest total $1.0
million to be paid in December 2021.
The College’s revenues and other
support exceeded expenses by $38.7
million in 2021. This was primarily
due to containing costs across all
departments, an increase in property tax
revenue as well as an increase in state
appropriations and tuition revenue at
June 30, 2021. Current assets totaled
$68.2 million in 2021. The fluctuations in
current assets for the past few years were
primarily the result of changes in the
College’s investment policy and portfolio.
REVENUES
Operating revenues
Tuition and fees, net ......................................$30.1
Federal grants and contracts .........................$2.8
State, local and non-governmental
grants and contracts ...................................$1.0
Auxiliary and miscellaneous revenues .........$4.0
► Total operating revenues ...........................37.9
Non-operating revenues
Pell grant revenue .........................................$13.9
Other federal revenue ..................................$26.3
Property taxes ................................................$92.8
State appropriations .....................................$26.2
State appropriations for UAAL ......................$6.9
Investment income..........................................$6.0
Net realized and unrealized loss
on investments ..........................................($6.7)
► Total non-operating revenues ...............$165.4
► Total revenues .......................................$203.3
EXPENSES
Instruction.......................................................$54.8
Academic Support ........................................$20.4
Student Services ............................................$27.4
Institutional Support/ Public Services .........$19.0
Information Technology ...............................$12.4
Physical plant operations .............................$14.5
Depreciation ..................................................$16.1
► Total expenses ......................................$164.6
16 2021 POPULAR ANNUAL FINANCIAL REPORT
$550,000,000
$500,000,000
$450,000,000
$400,000,000
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0 Total
Assets
Total Deferred
Outflows of Resources
Total
Liabilities
Total Deferred
Inflows of Resources
Net
Position
2020 2021
STATEMENT OF NET POSITION
The College’s net position, which
represents the residual interest in the
College’s assets and deferred outflows
after liabilities and deferred inflows are
deducted, totaled $286.3 million as of
June 30, 2021. Although unrestricted
net position is not subject to externally
imposed restrictions, virtually all of the
College’s unrestricted net position is
designated to fulfill the College’s mission
including designations for future retirement
obligations and insurance, designations
to meet the College’s reserve policy for
operating expenses and capital projects,
and designations of quasi-endowment for
future debt payments and scholarships.
Total Assets
2021 $ 544,728,839
2020 $ 503,227,483
2019 $ 464,519,632
2018 $ 433,031,041
2017 $ 408,610,090
$0 $275 $550
Millions
Total Net Position
2021 $ 286,311,544
2020 $ 247,583,280
2019 $ 215,863,483
2018 $ 180,500,083
2017 $ 215,600,667
$0 $150 $300
Millions
HISTORICAL INFORMATION
State Appropriations
UAAL
$6,950,580
(3.42%)
State
Appropriations
$26,152,183
(12.86%)
Auxiliary Activities
and Other Revenues
$3,972,032
(1.95%)
State, Local,
and Other Grants
$1,047,367
(0.52%)Federal Grants
and Contracts
$43,040,917
(21.17%)
Net Tuition and Fees
$30,088,766
(14.80%)
Investment
Incomes
($704,747)
(-0.35%) Property Taxes
$92,782,896
(45.63%)
2021 POPULAR ANNUAL FINANCIAL REPORT 17
WHERE DOES THE MONEY COME FROM?
Operating and Non-Operating Revenues
Operating revenues include all transactions
that result in sales and/or receipts from
goods and services, such as tuition, fees,
and bookstore operations. In addition,
certain federal, state, and private
grants are considered operating if they
are not for capital purposes and are
considered a contract for services.
Non-operating revenues are all revenue
sources that are not a result of College
operations. They consist primarily of
state appropriations, other federal grant
revenue (HEERF/CRF), Pell grant revenue,
property tax revenue, interest income and
realized and unrealized gains and losses.
Net student tuition and fee revenue (after
scholarship allowance) remained fairly stable
with a modest increase of 1.1 percent for
the year ended June 30, 2021. Gross tuition
and fee revenue also remained stable with a
modest increase of approximately 2.8 percent
for fiscal year ended June 30, 2021. Contact
hours increased by less than 1.0 percent for
fiscal year ended June 30, 2021. The modest
contact hour increases in fiscal year 2021
along with the tuition rate increases of 3%
for both In-district and Out-of-district tuition
brought about modest increases in net and
gross student tuition and fee revenue.
In 2021, total Federal grants and contracts
revenue (operating) decreased by 8.7
percent from 2020. Modest increases in
enrollments continue to affect the revenue
received for the federal Pell grant program
and campus closures due to COVID-19
affected the Federal Work Study program.
Other federal grants for HEERF and CRF
are recorded in non-operating revenues
and increased from $1.7 million in 2020
to $26.4 million in 2021. These grants
were for both direct payments to students
to assist with continuing their education
and institutional expenses related to the
disruption of campus operations and
increased expenses due to COVID-19.
Auxiliary services and other miscellaneous
revenue decreased by approximately 22.5
percent during fiscal year ending June 30,
2021. The decrease is due to a combination
of circumstances including providing
students with more affordable textbook
options, like rental programs and digital
books, modest enrollment growth, and the
many other available sources for students to
purchase textbooks. However, the closure of
on-campus operations for the majority of the
fiscal directly affected the auxiliary revenue.
In 2021, state grants and contracts and
other non-governmental grants revenue
decreased by 26.5 percent from 2020 due
to decreases in funding for several state
and local programs and scholarships.
18 2021 POPULAR ANNUAL FINANCIAL REPORT
Schools Cities County Parks
OCC
In 2021, there was an increase of $2.7 million
or 8.9 percent in total state appropriations
from 2020. This increase is primarily
because of the $2.5 million in funding cut
last year from the state appropriations
late in the state’s 2020 fiscal year.
Personal property tax reimbursement from
the state in the amount of $2.3 million was
received and is included in the annual state
appropriation figure. Public Act 300 of
2012 instituted a 20.96 percent cap on the
employer’s share of the UAAL for reported
MPSERS wages. This resulted in a state
appropriation for UAAL of $8.2 million for
2021, resulting in $7.0 million of revenue
after consideration of GASB 68 and GASB
75 in 2021 as well as MPSERS related cash
outlay and expenses of equal amounts.
In 2021, property taxes increased
by $3.2 million or 3.5 percent over
2020. These increases are a result of
taxable values in Oakland County,
Michigan continuing to increase.
In 2021, investment income decreased by 28.2
percent. Realized gains on investments were
$1.9 million in 2021. With the assistance of
the College’s investment manager, the College
periodically rebalances the investment
portfolio to continually meet strategic
investment objectives. This results in year-
over-year changes to the types and maturities
of investments in the College’s portfolio.
Unrealized gains and losses are primarily a
result of market fluctuations in interest rates
due to economic conditions in the United
States. Unrealized gains and losses represent
the fluctuation in the fair market value of
investments. Bond values decline as interest
rates increase and rise as interest rates
decrease. In 2021, with interest rate increases,
the unrealized losses were $8.7 million.
Nearly 90 percent of the investments held
by the College are in government agencies
and sponsored enterprises securities, whose
prices were affected by the factors mentioned
above. As the College intends to hold
investments to maturity, it is unlikely that these
unrealized gains and losses will be realized.
Listed under non-operating revenue as other
federal grant revenue, for 2021, the College
received federal HEERF funding for student
direct payments and institutional expenses
of $22.6, million. Also, the College received
$2.4 million of CRF funding,
replacing fiscal year 2020
state aid revenue and $1.3
million in student financial aid
for Future for Frontliners and
Michigan ReConnect programs.
PROPERTY TAXES:
WHERE DOES YOUR
DOLLAR GO?
The Oakland County Treasurer’s office
is responsible for the collection and
distribution of property tax revenue.
Property taxes support cities, villages,
townships, the county, libraries, parks and
recreation, and school districts. Oakland
Community College also receives a
portion of these property taxes. The
following illustrates the distribution of
Oakland County property tax dollars
by government entity. For every dollar
of property tax, Oakland Community
College received $.03.
School Districts/State Education $ 0.54
Cities, Villages, Townships $ 0.32
County Operating $ 0.09
Parks & Recreation/Zoo/Art/Huron Clinton $ 0.02
Oakland Community College $ 0.03
TOTAL $ 1.00
2021 POPULAR ANNUAL FINANCIAL REPORT 19
Institutional
Support
$19,024,075
(11.56%)
Student Services
$27,379,122
(16.63%)
Academic Support
$20,380,771
(12.38%)
Instruction
$54,778,800
(33.29%)
Depreciation Expense
$16,149,990
(9.81%)
Physical Plant
Operations
$14,472,441
(8.79%)
Information
Technology
$12,416,531
(7.54%)
OCC
WHAT IS THE MONEY USED FOR?
Operating Expenses
Operating Expenses are the costs
for the College to conduct the
programs necessary to carry out the
principal purposes of the College.
The primary operating expenses of the
College are salaries, payroll taxes, and
related fringe benefits. The College
incurred $108.6 million of payroll-
related expenses during the year
ended June 30, 2021. This represents
approximately 66.0 percent of the College’s
operating expenses during 2021.
Salary expenses have increased in 2021
from 2020 by 1.0 percent. Payroll taxes
and related fringe benefits decreased
by 6.2 percent from 2020 to 2021. In
2021, the UAAL state appropriations
received were $7.1 million, resulting
in $7.0 million of revenue after
consideration of GASB 68 and GASB 75.
Instruction costs increased by less than
1.0 percent in 2021. Academic Support
expenses increased by 2.2 percent
in 2021. Costs in Student Services
decreased by approximately 1.0
percent in 2021. Institutional Support
expenses increased by 4.0 percent in
2021. There were moderate increases
and decreases in all non-technology
operations and expenses of the College.
Information Technology expense
increased in 2021 from 2020 by 35.8
percent due to contracted salaries and
total expenses for software and hardware
throughout the College, primarily to
address the impact of COVID-19.
Physical Plant Operations decreased by
19.9 percent in 2021. These decreases
are a result of lower maintenance
and repair expenses as well as a
decrease in overall utility costs.
20 2021 POPULAR ANNUAL FINANCIAL REPORT
FACILITIES AND GROUNDS
Oakland Community College is a large, multi-campus, two-year institution of higher education located in Oakland County. The Oakland
Community College physical plant is made up of five academic campuses and one administrative campus. There are 527 acres of land,
70 buildings and over 2.1 million square feet of space. The estimated value of the College buildings exceeds $700 million and annual
physical plant costs approximate $25 million.
2021 POPULAR ANNUAL FINANCIAL REPORT 21
With over 2 million square feet of building
space, OCC maintains a large footprint.
To assist in prioritizing facility needs, the
College has employed a consulting firm to
provide a comprehensive facility condition
needs assessment. The assessment, which is
done every 5 years and was last completed
in August 2017 and will begin again in
2022 and is used as the starting point for
future project planning. In addition to the
report, the consultants also provide the
College with an interactive database that is
maintained by the College to monitor costs
and track improvements and renovations.
The comprehensive facility condition
needs assessment was performed to
accomplish the following objectives:
Provide an inventory of the College’s
facilities in a database format to be
easily updated and maintained by
OCC personnel and allow for quick
access to facilities information.
Determine the condition of the buildings
and grounds at OCC and provide the
data in a concise format, allowing quick
determination of the current replacement
value and condition of each facility.
Determine a Facilities Condition Needs
Index (FCNI) for each building, each
campus and OCC as a whole. The FCNI
is a benchmark index that rates the
condition of existing college buildings
and is used by facilities managers
nationwide to quantify and prioritize
Budgeting for Facilities
As our facilities wear with age and
heavy use, we must strategically plan
to ensure we are meeting the needs
and expectations of our students and
community while at the same time,
balancing the financial challenges
currently present in higher education.
The average building at OCC is
approximately 33 years old.
Over 25 years ago, the taxpayers of
Oakland County approved a .8 mill levy
to provide additional financial resources
to assist the College in building and
maintaining facilities, offering new
programs, and providing student
scholarships. The millage was renewed by
voter consent in 2002, 2010 and again in
November 2020. These funds have been
used for their proposed purposes and
are a critical part of our capital budget.
Each year, the College budgets General
Fund dollars to be transferred to the Plant
Fund for capital and equipment needs.
Recent capital projects funded through
the Plant Fund include maintenance
and replacement of large equipment
and infrastructure including boilers at
Orchard Ridge campus, roof replacement
at Auburn Hills, and paving a various
campuses. In addition, a major building
project at for a new science building
began over a year ago at Auburn
Hills with completion in fall 2021.
deferred maintenance projects
for capital planning purposes.
Assist OCC in meeting the goals of
its Mission Statement through timely
maintenance of the physical backbone
of the College — the buildings of OCC.
Based on the report, we have prioritized
our major capital projects into the ten
buildings with the highest deferred
maintenance needs. These ten buildings
are all student-utilized spaces that
require attention in order to continue
providing adequate instructional space
for student learning and safety.
22 2021 POPULAR ANNUAL FINANCIAL REPORT
MAJOR CAPITAL PROJECTS
science and computer information system
(CIS) classrooms. It is also a connector
building for the Auburn Hills campus
which is used by many students to travel
from one side of campus to the other.
Auburn Hills C-Building was originally
constructed as a second floor in 1970
and the first floor was added later. We
have experienced water infiltration on
the first floor, the second floor echoed
as you walked on it and classrooms were
out of date. OCC has a continued desire
to be a leader in the science, technology,
engineering, and mathematics (STEM) field
as there continues to be a high demand
for these students. As such, the science
and CIS classroom space did not provide
adequate learning spaces for students.
Construction began on the Auburn Hills
C-Building early in fiscal year 2020. After
a slight delay due to COVID-19 and the
governor’s executive stay-at-home order in
March 2020, construction resumed and the
newly renovated facility opened for classes
in fall 2021. Additional work continues
to wrap up the complete construction
project and will be finalized in late 2021.
The renovation goals for this building
were to provide an inviting facility, with
state-of-the-art science and CIS classrooms
and laboratories. The College created
cutting edge spaces that will enhance
the educational experience for students
and faculty for the next 40 years.
Active learning classrooms were integrated
into the plans to support innovative teaching
methods with flexible work space. The
renovated building also makes use of natural
lighting and windows to provide inviting
study spaces that will promote student
collaboration and interaction. Accessibility,
ADA regulations and inclusion issues were
thoughtfully considered and addressed
throughout the renovation project.
The next project that the College has begun
is the relocation of its culinary arts program
to the Royal Oak campus. The project
is in the architectural drawing phase.
Although the roadmap for future projects
has not been fully developed, it will be
focused on the future, with flexible spaces
that provide rich technological opportunities,
active learning spaces and inviting study
spaces. Oakland Community College’s
Capital Plan is an investment in the College,
the community and the students.
In consideration of upgrading facilities
and looking to better serve faculty and
students while reducing emergency
repairs, maintenance and energy cost,
the College has developed a Rolling Five
Year Capital Plan. This plan considers
major capital planning on a college wide
basis. The assessment of existing facilities
showed the infrastructure components of
many buildings have aged significantly.
Despite ongoing maintenance and repair,
which in most cases has extended the
expected usable life beyond industry
standards, OCC is currently faced with a
large amount of deferred maintenance.
Utilizing the facility needs assessment
report provided by the consultants, along
with consideration for programmatic
needs of the College community, we have
prioritized the projects. The Board of
Trustees has dedicated $30 million a year
for the next five years for these projects.
Each year, during the budget process the
Board will approve the specific project(s)
for the following year’s budget. During
the FY 2019 budget process, Auburn Hills
C-Building was selected as the top priority.
The next four projects have funding
approval and will be strategically chosen
based on overall student and community
need during the budgeting process for
that fiscal year. Auburn Hills C-Building
was selected because it is a highly used
building on our Auburn Hills campus.
The building is the home of various
2021 POPULAR ANNUAL FINANCIAL REPORT 23
DEMOGRAPHIC AND ECONOMIC
INFORMATION
Full-time Equivalent Employees – Last Ten Fiscal Years (Unaudited)
2021* 2020 2019 2018 2017
Faculty Full-Time 198 198 204 207 216
Faculty Part-Time 420 413 512 531 723
Total Faculty 618 611 716 738 939
Administrators 89 88 88 81 77
Support Full-Time 375 370 370 350 358
Support Part-Time 55 53 124 107 121
Total Support 430 423 494 457 479
Actual Total Employees Reported 1137 1122 1298 1276 1495
Total FTE 820 811 874 766 897
Notes:
Management occupations in IPEDS = administration in this report
All other non-instructional, non-management occupations = support in this report
*2021 figures are estimated — IPEDS data not yet complete
Source: IPEDS report — categories defined as instruction, management. All other categories listed under Support.
In-District Tuition Out-of-District Tuition
ACADEMIC YEAR BEGINNING IN FALL
ACADEMIC YEAR BEGINNING IN FALL
TUITION
RATE
TUITION
RATE
INCREASE (DECREASE) PERCENT
INCREASE (DECREASE) PERCENT
MICHIGAN COMMUNITY COLLEGE AVERAGE
MICHIGAN COMMUNITY COLLEGE AVERAGE
PERCENT OF STATE AVERAGE
PERCENT OF STATE AVERAGE
2011 $66.70 — $85.91 0.78
2012 $71.40 0.07 $90.03 0.79
2013 $76.40 0.07 $94.43 0.81
2014 $82.00 0.07 $98.13 0.84
2015 $88.00 0.07 $102.13 0.86
2016 $88.00 — $106.10 0.83
2017 $90.00 0.02 $110.03 0.82
2018 $92.00 0.02 $114.07 0.81
2019 $94.50 0.03 $117.33 0.81
2020 $94.50 0.03 $117.33 0.81
2011 $112.90 — $140.66 0.80
2012 $125.20 0.11 $148.12 0.85
2013 $139.10 0.11 $155.66 0.89
2014 $154.00 0.11 $161.78 0.95
2015 $171.00 0.11 $169.07 1.01
2016 $171.00 — $176.58 0.97
2017 $174.00 0.02 $183.15 0.95
2018 $178.00 0.02 $189.78 0.94
2019 $183.00 0.03 $189.54 0.97
2020 $183.00 0.03 $195.43 0.94
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22434 11/21
Oakland Community College is accredited
by the Higher Learning Commission
(hlcommission.org), a regional
accreditation agency recognized by
the U.S. Department of Education.
oaklandcc.edu