HomeMy WebLinkAboutLansing Community College - Public Financial ReportPopular Annual Financial Statements
For the Fiscal Year Ended June 30, 2021
LANSING COMMUNITY COLLEGE · LANSING, MI
LANSING COMMUNITY COLLEGE
TABLE OF CONTENTS
01 College Overview
02 Financial Report
03
2021 Assets, Liabilities and Net Position
05
Condensed Statement of Net Position for the Years Ended June 30 – Five-Year History
06
2021 Operating Revenue and Expenses
08
Revenues, Expenses, and Changes in Net Position for the Years Ended June 30 – Five-Year History
Overview
Lansing Community College (LCC),
founded in 1957, is the seventh-largest
community college in Michigan, serving
more than 10,000 students last fall and nearly
5,000 corporate training and workforce
development participants in the past year.
Each year, the college offers more than 200
degree and certificate programs and over
950 courses to match career and workforce
development pursuits, transfer curricula,
developmental, and special interest needs.
During the pandemic, LCC was able to pivot
quickly to offer quality educational experiences
through remote learning. In 2020 – 2021 LCC
offered 2,638 sections in 581 courses online;
10 associate degrees and certificates can be
earned solely through online study. In 2020
– 2021, the college awarded a total of 2,144
degrees, credentials and certifications.
Through the University Center at LCC,
students can earn bachelors and masters
degrees in more than 20 majors, without
leaving campus, from five partner universities
(Central Michigan University, Ferris State
University, Northwood University, Siena Heights
University, and University of Michigan–Flint).
In addition to the Downtown Campus, LCC
operates West Campus in Delta Township
(home to the Michigan Technical Education
Center, or M-TEC), LCC East in East
Lansing, the Livingston Center in Howell,
and the Aviation Maintenance Center at
the Mason-Jewett Airport in Mason.
LCC is accredited by the Higher
Learning Commission, and on June
27, 2016, the college’s accreditation
was reaffirmed for 10 years.
College Overview
01
College Overview
In-District $114 In-state$228 Out-of-state$342 International$399
2021 Tuition (per credit hour)
2020 2019 2018 2017 2016
Enrollment for Fall
College (unduplicated head count)10,306 11,673 11,771 12,882 13,583
Full-time Equivalents 5,783 6,674 6,804 7,461 7,920
Total Credit Hours 93,116 106,100 107,257 117,655 123,341
As the financial report shows, LCC continues to exercise fiscal prudence, maintain a healthy financial condition, and practice good stewardship in the use of public and tuition dollars for academic programs and services.
Lansing Community College remains fiscally
sound. This Popular Annual Financial Report
(PAFR) is formatted as an easy-to-read version
of the college’s Comprehensive Annual
Financial Report that is published each year.
The Comprehensive Annual Financial Report is
a detailed account of the financial statements
prepared in accordance with Generally Accepted
Accounting Principles (GAAP), including financial
disclosures, management’s discussion and
analysis, and the college’s component unit, the
Lansing Community College Foundation. The
LCC Foundation’s financial statements are not
included in this report. View the complete FY
2021 Comprehensive Annual Financial Report.
To receive a hard copy of the
Comprehensive Annual Financial Report,
please contact the Financial Services
Division via email at pearcel@lcc.edu.
Government Finance Officers Association
Award for Outstanding Achievement in Popular Annual Financial Reporting
Presented to
Lansing Community College
Michigan
For its Annual Financial Report for the Fiscal Year Ended 2020
Executive Director/CEO
Financial Report
Financial Report
02
Assets
Current assets are those resources reasonably
available within one year. Unlike other forms
of assets, cash and cash equivalents can be
used immediately for current operational
needs, such as meeting the payroll or paying
vendors. Short-term investments represent
the College’s holding in allowable financial
instruments maturing within one year or less,
such as certificates of deposits and money
market accounts. Receivables represent
those monies due to the College but not
yet available for use; examples include
property taxes not yet received for the prior
and current year levies, remaining state
appropriation payments, and accrued interest.
Non-current assets are the College’s long-
term financial and plant resources. Long-term
investments represent the College’s holding
in allowable financial instruments maturing
in more than one year, such as certificates of
deposit. Property and equipment account
for the College’s equity in land, buildings,
real estate improvements (such as roads and
security lighting), and capital equipment
such as computer hardware and software,
furniture, and media equipment. Depreciation
is the allocation of the costs of buildings and
equipment over their expected useful lives.
Liabilities
Current liabilities are short-term obligations.
Accrued payroll, accounts payable, and
other accrued liabilities represent amounts
due to employees or vendors for services,
supplies, or equipment provided to the
College. Unearned revenues include the
tuition revenue for the remainder of the
summer semester and amounts received
for services to be provided in the future.
0 $50M $100M $150M $200M $250M $300M
Total Assets
2021 $318,071,090
2020 $304,654,572
2019 $266,283,913
2018 $272,253,719
2017 $259,929,076
Assets, Liabilities and net position
03
2021 Assets, Liabilities and Net Position
Net Position
Net position represents the difference between
the aggregated total of assets plus deferred
outflows of resources and the aggregated
total of liabilities plus deferred inflows of
resources, and is classified by the following
categories: Net investment in capital assets
– this is the total capital assets and restricted
cash for debt service less accumulated
depreciation and the outstanding balance of
related debt; Restricted – this is net position
that has limitations imposed on its use by
external parties or by laws or regulations;
Unrestricted (primarily the college’s General
Fund) – this is net position that may be used
to meet the college’s ongoing obligations.
When reviewed over time, net position may
serve as a useful indicator of the college’s
financial position. In fiscal year 2021, the
college’s overall net position increased by
$11.0 million. This is mainly due to decreased
expenses due to the pandemic, including
a reduction in college travel, for example,
and the impact of federal stimulus grants.
The large decrease in net position from
2017 to 2018 and again from 2019 to 2020
were the result of the implementation of
Governmental Accounting Standards Board
Statements 68 and 75, respectively.
The revenues (inflows) and expenses (outflows)
listed on the statements are related to a
particular fiscal year, as noted. Deferred
Outflows of Resources and Deferred Inflows
of Resources represent flows of resources into
and out of a reporting entity that are related
to and will be recognized in a future period.
2021 Assets, Liabilities and Net Position cntd.
Assets, Liabilities and net position
04
0 $50M $100M $150M
Total Net Position
2021 $17,023
2020 -$11,009,419
2019 $142,135
2018 $900,251
2017 $48,107,556
Condensed Statement of Net
Position for the Years Ended June 30
2021 2020 2019 2018 2017
Current assets
Cash and cash equivalents $24,920,161 $15,073,366 $18,019,750 $11,779,096 $13,726,408
Short-term investments $47,329,813 $40,476,077 $22,279,173 $31,963,912 $22,565,496
Receivables $12,372,853 $9,095,193 $12,295,399 $13,079,373 $12,632,440
Inventories $- $- $- $96,703 $134,348
Prepaid expenses and other assets $2,641,304 $2,056,847 $2,217,174 $1,991,127 $1,863,192
Noncurrent assets
Restricted cash and short-term investments-unspent bond proceeds $33,840,908 $32,514,565 $9,201,083 $10,793,418 $-
Restricted long-term investments, unspent bond proceeds $1,982,077 $18,917,682 $- $- $-
Long-term investments $- $- $10,117,126 $3,119,926 $8,211,410
Property and equipment, net $194,983,974 $186,520,842 $192,154,208 $199,430,164 $200,795,782
Total Assets $318,071,090 $304,654,572 $266,283,913 $272,253,719 $259,929,076
Deferred outflows of resources
Deferred charge on bond refunding $1,650,664 $1,867,316 $2,083,969 $2,300,622 $831,639
Deferred pension amounts $48,160,423 $60,577,120 $59,515,517 $33,928,655 $19,460,975
Current Liabilities
Accounts payable and other current liabilities $7,035,427 $4,146,993 $4,455,991 $8,203,995 $4,959,369
Accrued payroll and other compensation $8,864,740 $9,593,412 $8,306,502 $8,651,326 $8,728,754
Unearned revenue $4,234,554 $3,428,552 $3,425,760 $3,728,060 $3,438,610
Current portion of debt obligations $4,495,000 $4,345,000 $4,255,000 $4,120,000 $3,875,000
Noncurrent liabilities
Long-term debt obligations, net of current portion $102,664,863 $107,942,173 $68,401,166 $73,217,199 $64,790,095
Net pension liability $176,522,247 $177,789,942 $163,974,876 $141,871,522 $139,408,096
Net OPEB liabilities $26,773,639 $37,657,910 $43,350,196 $48,713,989 $-
Total liabilities $330,590,470 $344,903,982 $296,169,491 $288,506,091 $225,199,924
Deferred inflows of resources
Deferred pension and OPEB amounts $37,274,684 $33,204,445 $31,571,773 $19,076,653 $6,914,210
Net position
Invested in capital assets, net of related debt $125,297,760 $127,533,232 $130,783,094 $135,187,005 $132,962,327
Restricted $221,826 $143,914 $246,003 $199,611 $7,917
Unrestricted $(125,502,563) $(138,686,565) $(130,886,962) $(134,486,365) $(84,862,688)
Total net position $17,023 $(11,009,419) $142,135 $900,251 $48,107,556
Assets, Liabilities and net position
05
Operating Revenue
Student tuition and fees are the primary
operating source of revenues for the
college. LCC’s in-district rate of tuition of
$114 per billing hour in FY 2021 remains
among the most competitive in the state.
Total Operating Revenues decreased $1.0
million from FY 2020 to FY 2021. This is
primarily due to decreases in tuition and fee
revenue reflected from enrollment declines,
decreased federal and local grants, and a
reduction in auxiliary activities and job training
programs, offset by increases in state grant
revenues and federal stimulus grants.
Operating Expenses
Instruction includes direct activities and activities
that aid in the teaching process. Instruction
expenses include not only personnel costs and
supplies, but also the personnel and materials
required to plan, implement, and manage the
instructional programs. Instructional support
comprises those programs that directly support
the instruction process, such as tutoring,
library operations and instructional media
services. Public Services include those activities
established to respond to a community need or
solve a community problem. Student Services
include registration and records, financial
aid, counseling, student success coaches and
other activities that provide non-academic
support services to students. Information
Technology includes the technology costs that
benefit the institution as a whole consisting of
the Information Technology department, the
operation of the computing system for the
institution, all programs that are purchased and
hardware that is maintained by the Information
Technology department, as well as telephone
and telecommunication services. Institutional
Administration encompasses general regulation,
direction, and administration as well as
institution-wide governance and accreditation
activities. Operation and Maintenance of Plant
includes maintenance, housekeeping, and
other costs necessary for the proper and safe
2021 Operating Revenue and Expenses
0 $50M $100M $150M $200M
Total Expenses
2021 $137,771,600
2020 $145,048,536
2019 $136,125,016
2018 $134,769,293
2017 $126,511,934
0 $50M $100M $150M $200M
Total Revenues
2021 $148,798,042
2020 $133,896,982
2019 $135,366,900
2018 $134,930,452
2017 $137,927,355
Operating Revenue and Expenses
06
2021 Operating Revenue and Expenses cntd.
FY 2021 Operating Expenses
Total $133,652,485
Information Technology $11,381,058
Operation andMaintenance of Plant$15,083,537
InstitutionalAdministration$20,723,534Student Services$23,531,260
Instructional Support$17,138,188 Depreciation$9,979,246
Public Services$2,655,040 Instruction$33,160,622
y
Public Services
Instructional Support
Information Technology
Student Services
Institutional Administration
Operation and Maintenance of Plant
Depreciation
Instruction
operation of the college’s facilities. Depreciation
represents the current year allocated costs
of capital assets. Total Operating Expenses
decreased $7.6 million from FY 2020 to
FY 2021. This Included expense decreases
related to decreased class offerings and the
cancellation of athletic programs, decreases in
Pension and Other Postemployment Benefits
(OPEB) Liabilities, and decreases in Plant Fund
expenses resulting from decreased utilization
of the campus during the pandemic, offset
by increases in payments of emergency
student financial assistance under the Higher
Education Emergency Relief Fund (HEERF)
and institution expenses related to HEERF.
Non-Operating Revenues (Expenses)
State appropriations, property tax levies,
and Pell grants are the major sources of
non-operating revenue for the College.
Total net non-operating revenues increased
by $15.3 million from FY 2020 to FY 2021,
primarily due to the receipt of federal
HEERF and Coronavirus Relief Funds.
Operating Revenue and Expenses
07
2021 2020 2019 2018 2017
Operating income (loss)
Total operating revenues $42,128,761 $43,142,045 $45,015,987 $42,627,974 $43,938,373
Total operating expenses $133,652,485 $141,289,141 $133,371,330 $132,144,748 $123,764,426
Operating income (loss) $(91,523,724) $(98,147,096) $(88,355,343) $(89,516,774) $(79,826,053)
Net non-operating revenues (expenses) $102,330,166 $86,995,542 $87,597,227 $89,078,232 $86,638,657
Capital gifts, grants and appropriations $220,000 $- $- $599,701 $4,602,817
Total change in net position $11,026,442 $(11,151,554) $(758,116) $161,159 $11,415,421
Net position, beginning of year $(11,009,419) $142,135 $900,251 $48,107,556 $36,692,135
Implementation of GASB 75 $- $- $- $(47,368,464) $-
Net position, end of year $17,023 $(11,009,419) $142,135 $900,251 $48,107,556
Operating revenues
Tuition and fees (net of scholarships allowances) $30,203,838 $30,728,261 $30,611,199 $31,112,089 $30,405,367
Federal, state and local grants and contracts $11,025,743 $10,515,925 $9,595,925 $9,180,805 $8,636,075
Sales and services $92,144 $892,062 $732,681 $361,849 $1,712,034
Miscellaneous $807,036 $1,005,797 $4,076,182 $1,973,231 $3,184,897
Total operating revenues $42,128,761 $43,142,045 $45,015,987 $42,627,974 $43,938,373
Operating expensesInstruction $33,160,622 $37,459,754 $37,541,664 $37,305,679 $36,462,526 Information technology $11,381,058 $13,574,193 $12,727,743 $12,258,907 $10,434,438 Public services $2,655,040 $2,560,771 $2,567,157 $2,754,459 $2,703,721
Instructional support $17,138,188 $20,207,931 $18,307,771 $16,502,356 $17,547,370 Student services $23,531,260 $17,222,229 $14,499,277 $17,352,582 $11,782,303 Institutional administration $20,723,534 $20,920,319 $19,954,545 $19,835,166 $20,265,334 Operation and maintenance of plant $15,083,537 $18,963,328 $17,269,139 $16,044,964 $15,925,694 Depreciation $9,979,246 $10,380,616 $10,504,034 $10,090,635 $8,643,040 Total operating expenses $133,652,485 $141,289,141 $133,371,330 $132,144,748 $123,764,426 Operating income (loss) $(91,523,724) $(98,147,096) $(88,355,343) $(89,516,774) $(79,826,053)
Non-Operating revenuesState appropriations $34,775,424 $29,950,889 $33,884,167 $33,759,671 $33,317,442 Property tax levy $44,956,559 $43,781,074 $42,298,367 $40,983,811 $39,910,486 Pell grant revenue $10,693,117 $13,208,069 $13,267,697 $16,461,261 $15,980,057 Financial nonoperating grants - CARES Act $16,749,041 $1,775,621 $- $- $- Investment return and other gains $(724,860) $2,039,284 $900,682 $498,034 $178,180
Interest on capital asset related debt $(4,119,115) $(3,759,395) $(2,753,686) $(2,624,545) $(2,747,508)Net non-operating revenues (expenses) $102,330,166 $86,995,542 $87,597,227 $89,078,232 $86,638,657 Increase (decrease) in net position $10,806,442 $(11,151,554) $(758,116) $(438,542) $6,812,604 State capital grants $- $- $- $599,701 $4,400,299 Capital appropriations and gifts $220,000 $- $- $- $202,518 Change in net position $11,026,442 $(11,151,554) $(758,116) $161,159 $11,415,421 Net position, beginning of year $(11,009,419) $142,135 $900,251 $48,107,556 $36,692,135
Implementation of GASB 75 $- $- $- $(47,368,464) $- Adjusted net position, beginning of year $(11,009,419) $142,135 $900,251 $739,092 $36,692,135 Net position, end of year $17,023 $(11,009,419) $142,135 $900,251 $48,107,556
Revenues, Expenses, and Changes in
Net Position for the Years Ended June 30
Operating Revenue and Expenses
08
Lansing Community College is committed to providing equal employment opportunities and equal education for all persons regardless of race, color,
sex, age, religion, national origin, creed, ancestry, height, weight, sexual orientation, gender identity, gender expression, disability, familial status, marital status, military status, veteran’s status, or other status as protected by law, or genetic information that is unrelated to the person’s ability to perform the duties of a particular job or position or that is unrelated to the person’s ability to participate in educational programs, courses, services, or activities offered by the college.The following individuals have been designated to handle inquiries regarding the nondiscrimination policies: Equal Opportunity Officer, Washington Court Place, 309 N. Washington Square, Lansing, MI 48933, 517-483-1730; Employee Coordinator 504/ADA, Administration Building, 610 N. Capitol Ave., Lansing, MI 48933, 517-483-1875; Student Coordinator 504/ADA, Gannon Building, 411 N. Grand Ave., Lansing, MI 48933, 517-483-1885; Human Resource Manager/Employee Title IX Coordinator, Administration Building, 610 N. Capitol Ave., Lansing, MI 48933, 517-483-1879; Student Title IX Coordinator, Gannon Building, 411 N. Grand Ave., Lansing, MI 48933, 517-483-9632.