The institution provides financial statements and related documents, including multiple measures for determining financial health as requested by the Commission that accurately and appropriately represent the total operation of the institution.

_X_Compliance                      ___Partial Compliance                       ___Non-Compliance

Narrative

St. Petersburg College is in compliance with this comprehensive standard because it has provided all information requested by the Commission, accurately representing its financial health.

Institutional Profile for Financial Information

Yes, the Institution has submitted its most recent institutional profile for financial information (SPC Financial Profile 2006) as requested by the Commission.

Institutional Profile for General and Enrollment Information

Yes, the Institution has submitted its most recent institutional profile for general and enrollment information (SPC Profile for General Information and Enrollment Data, Fall 2006) as requested by the Commission.

Additional Financial Information Requested by Commission

None

Documents that Demonstrate Institution’s Capability to Sustain Future Financial Status

St. Petersburg College provides financial statements and other related documents which accurately and appropriately represent its total operation.  Comparative financial statements are prepared and presented to the College’s President and Board of Trustees for review.  Annual financial statements are submitted to the State of Florida’s Department of Education.  These financial statements are prepared according to guidelines set by the Governmental Accounting Standards Board, the Florida State Accounting Manual for Community Colleges, guidelines set by the National Association of College and University Business Officers, and American Institute for Certified Public Accountants.

St. Petersburg College prepares the Annual Financial Report at the close of each fiscal year which includes the unaudited financial statements and other financial schedules. Multiple measures of financial health are evidenced in these financial statements and documents.  For example, the Statement of Net Assets in the Annual Financial Report provided to the State indicates the Unrestricted Fund Balance of the College at June 30, 2006 was $23,738,520, June 30, 2005 was $24,002,769, June 30, 2004 was $19,881,535, and at June 30, 2003 was $20,043,927.

Accuracy of the information provided in the financial statements is verified through an external audit process conducted annually by the State Auditor General’s Office (State of Florida Auditor General Financial Report 2004-2005; 2003-2004; 2002-2003).  These audited statements are provided by the Auditor General directly to the St. Petersburg College Board of Trustees as well as to the College President; the statements are also posted on the State Auditor General’s Web site.  The integrity of the systems used to maintain and present data is verified by the State Auditor General’s Executive Summary (page –v- of the St. Petersburg College Financial Audit for The Fiscal Years Ended June 30, 2005; 2004; 2003) states that they found the College’s financial statements presented fairly, in all material respects, the financial positions of the College and its discretely presented component units; the revenues, expenses, and changes in net assets; and the cash flows for the fiscal year then ended.

The College prepares a financial report, which is given periodically to the Board of Trustees.  These financial reports allow the Board of Trustees frequent review of revenue, expenditures, and fund balance.  Reports printed from the PeopleSoft Financial System, Statement of Revenues and Expenses and Comparative Balance Sheet for Unrestricted General Operating are also included in the Board of Trustees financial packet.  As a result of the State of Florida Auditor General’s Operational Audit for fiscal year 2005-2006, several new interim financial reports are also included in the Board’s quarterly financial packet.  These reports include Budget Summary Reports, Revenues and Expenditures by Fund and the Statement of Net Assets by Fund.  These new reports provide a current-year-only summary of revenues and expenditures as well as the assets, liabilities and fund balances for Funds 10-18 and selected other Funds 20-77.  A current year summary provided to the Board for July 1, 2006 - September 30, 2006 of the College’s Revenues and Expenditures by Fund & Statement of Net Assets by Fund are as follows:

·         Funds 10, 14, 16, 18: Current Funds Unrestricted for Operations of Lower Division

Total revenues exceed expenditures by $7.8 million, reflecting increases in State Appropriations, student fees and other revenues, while expenditures reflect timing delay in career, A&P, and student assistants’ salary increases, as well as less than normal capital expenditures due to accelerated lab equipment in the previous year and leasing of data center equipment in the current year.  Assets of $29.8 million consist primarily of investments and amounts due from other funds.  Liabilities of $6.8 million consist primarily of accrued vacation and sick leave.

·         Funds 12, 17: Current Funds Unrestricted for Operations of Upper Division

Total revenues are short of expenditures by $0.8 million, reflecting increases in student fees as well as a year-over-year timing lag in State Appropriations, while expenditures reflect the increase in Faculty positions, the timing delay in career and A&P, salary increases, and year-over-year timing-driven decreases in current expenses and capital expenditures.  Assets of $1.0 million consist primarily of investments.  Liabilities of $0.4 million consist primarily of accrued vacation and sick leave.

·         Funds 20-27: Current Funds Restricted for Grants, Gifts, and Student Activities

Total revenues are short of expenditures by $0.8 million due to accelerated timing of grant expenditures in advance of billing for reimbursements.  Grants are primarily funded on a reimbursement basis and the billings and recording of the revenues do not occur until the financial reporting period following actual expenditures, as per grant terms.  Assets of $2.1 million consist primarily of cash and accounts receivable.  Liabilities of $0.7 million consist primarily of deferred revenue (revenue received but not yet earned) and accrued vacation and sick leave.

·         Funds 30: Auxiliary Funds Current

Total revenues exceed expenditures by $0.1 million; reflecting current revenue and expenditure plans.  Assets of $9.1 million consist primarily of investments and amounts due from other funds for construction loans.  Liabilities of $0.4 million consist primarily of the internal lease associated with the Collegiate High School portable building.

·         Funds 40, 50-57: Scholarship / Short Term Loans to Students Funds Current

Total revenues exceed expenditures by $0.7 million, reflecting the recording of financial aid grant revenues and student financial aid fee revenues to be expended during the year for scholarships and grants.  Assets of $4.0 million consist primarily of investments.  Liabilities of $0.02 million consist primarily of unused amounts for repayment to grantors.

·         Funds 60-62: Agency Funds

Total revenues are short of expenditures by $1.6 million, reflecting agency billings and the recognition for agency revenues that will not occur until the financial reporting period following actual expenditures, as per Agency agreement terms.  Assets of $5.5 million consist primarily of cash and investments.  Liabilities of $7.1 million consist primarily of amounts held in custody for other agencies and amounts due to other funds for student tuition.

·         Funds 70-77: Unexpended Plant and Renewal/Replacement Funds

Total revenues exceed expenditures by $23.8 million, reflecting PECO and Facilities Enhancement Challenge Grant appropriation revenues for the entire year, which are recorded at the beginning of the fiscal year.  Capital expenditures may not occur until later in the year or may have occurred in the prior year under an internal loan and can now be repaid.   Assets of $41.7 million consist primarily of amounts due from the State of Florida (PECO) and investments.  Liabilities of $14.9 million consist primarily of amounts due to other funds for construction loans.

Some prior fiscal year information is as follows.  These excerpts were obtained from the financial summary report Memo dated March 3, 2006 by the College’s President to the Board of Trustees for financial information from July 1, 2005 – January 31, 2006.

• Summary of Revenues and Expenses Upper Division Operations:  Total upper division revenues for the seven months ending January 31, 2006 are up 26.5% compared to the same period the previous year.  State revenues are up 15.4%, reflecting appropriation receipts in line with projected total increase in 2005-2006 State appropriations.  Total upper division student fee revenues are up 54.9%, driven by net overall student tuition fee rate increases of 3.7% and 4.7% for residential and non-residential, respectively, and by a 42% year-over-year increase upper division student enrollment growth for the Fall Session and 27% for the Spring Session.  Other revenues are up by 15.0% on small dollar volumes.  Total upper division expenses through this same period are up 29.2% compared to the same period the previous year.  Payroll expenses are up 41.2% for the period, reflecting approved merit increases in salary and benefits of up to 7% for A&P, Career staff and student assistants, and an aggregate increase of approximately 8.2% for full-time Faculty, including Faculty regression adjustments.  The increase in payroll expenses is also driven by the addition of seven new Faculty and staff to support new programs, and adjunct Faculty to support enrollment growth.  Current operating expenses are up 1.9%, driven primarily by increases in advertising, minor equipment and office materials, and travel, but off-set partially by decreases in consulting fees, professional services, and postage costs.  Capital expenditures are down by 45% due to timing differences in requests for purchase orders, and less capital equipment anticipated being required this year.  Revenues exceeded expenses by $1.3 million through the seven months of the fiscal year.  Purchase commitments/encumbrances of $0.29 million are reserved against this excess at January 31, 2006.

• Summary of the Balance Sheet at January 31, 2006 Upper Division Operations:  Total upper division assets are $2.4 million; comprised primarily of cash and investments in money market funds, securities and instrumentalities of the U.S. Government.  Liabilities totaled $0.35 million primarily comprised of accrued sick leave and vacation pay.

• Summary of Revenues and Expenses Lower Division Operations:  Total lower division revenues for the seven months ending January 31, 2006 are down 0.6% compared to the same period the previous year.  State revenues are up 5.8% reflecting the catch-up in lottery appropriation receipts which had lagged in the previous period.  Total lower division student fee revenues are up 2.2% driven by a 5.0% student tuition fee rate increase and strong growth in Internet fees but off-set by reductions in Lab fees and a projected 1-2% reduction in year-over-year student enrollment.  Other revenues are down by 60.9% due largely to a one-time gain of $3.2 million from sale of the District Office building in the previous year which is partially off-set by increases in rents from use of College facilities, indirect cost recovery from State and Federal Grants, and other miscellaneous revenues. Fund Transfers In are up 8.8% reflecting increases in transfers from Internet Fees to partially cover collegewide Fund 10 Helpdesk and networking costs, as approved in the Fiscal Year 2006 Budget Picture Frame for Fund 10. Excluding the effect of the one-time gain of $3.2 million in the previous year, total lower division revenues fro the seven months ending January 31, 2006 would be up 4.6%.  Total lower division expenses through January 31, 2006 are up 5.9% compared to the same period the previous year. Payroll expenses are up 8.4% for the period, reflecting approved merit increases in salary and benefits of up to 7% for A&P, Career staff and student assistants, and an aggregate increase of approximately 8.2% for full-time Faculty, including Faculty regression adjustments.  The payroll expense increase is also driven by an increase of 22.4% in the per-employee monthly rate charges to their departments for medical insurance coverage.  Current operating expenses are down 18% primarily to a one-time Non-Mandatory Transfer-Out to Unexpended Plant of $3.67 million in the previous year consisting of proceeds from sale of District Office applied to the EpiCenter and loans for other accelerated construction projects.  The reduction-effect of the prior year one-time Non-Mandatory Transfer Out is partially off-set in the current period by increases in electricity bills and fuel costs, an earlier payment of property insurance compared to the previous year, general liability insurance, and annual maintenance fees for technology systems.  Capital expenditures for instructional computing equipment and education/classroom furniture are up 286.6%, driven by College Management’s accelerated spend down of lab fee reserve to meet management consulting recommendations.

• Revenues exceeded expenses by $10.5 million through the seven months of the fiscal year, including purchase commitments/encumbrances of $3.7 million at January 31, 2006.

• Summary of Lower Division Balance Sheet at January 31, 2006:  Total lower division assets are $35.2 million; comprised primarily of investments in money market funds, securities and instrumentalities of the U.S. Government; amounts due from other funds, and accounts receivables.  Amounts due from other funds are up by $7.8 million, driven by year-over-year timing variations in loans to Fund 70 for accelerated construction projects and by increases in Fund 60 agency billings for student tuition and fees recorded as student fee revenues in Fund 10.

Documents Provided by Institution Accurately and Appropriately Represent Total Operations

As another example, previous fiscal year data reported to the Board of Trustees indicates that the College had on hand, in cash and short-term securities (Funds 10, 14, 16), $21.0 million as of January 31, 2006, $16.1 million as of December 31, 2005 and $8.7 million as of November 30, 2004.  This report demonstrates sufficient liquidity to satisfy the College’s operations and capital expenditure requirements.  A copy of the College’s Comparative Balance Sheet as of January 31, 2006 Unrestricted General Operating is depicted below.

St. Petersburg College Comparative Balance Sheet as of January 31, 2006 Unrestricted General Operating

Furthermore, each fiscal year, the approved operating budget is implemented to ensure that the unencumbered balance remains above five percent of the total operating funds available for the fiscal year. The College has consistently maintained this level in unallocated fund balance (current fund unrestricted) and percent of total funds available as depicted in the following table.

                                        Unallocated Fund Balance – Current Fund Unrestricted

Fiscal Year :	2005-2006	2004-2005	2003-2004	2002-2003	2001-2002
Unallocated Fund Balance:	$6,275,487	$5,944,296	$5,765,614	$5,123,073	$4,913,307
Percent of Total Funds Available:	5.31%	5.22%	5.51%	5.11%	5.40%

Additionally, the College provides internal reviews and reports documenting multiple measures of financial health.  Revenue from auxiliary (Fund 30) operations, capital-spending progress, grant spending activity, outstanding receivables, and investment returns are routinely examined by the Associate Vice President of Financial and Business Services. Revenue and expenditure activity are examined monthly to ensure that targeted levels can be achieved.  Monthly process measurements include account receivable collections and bank reconciliation timeliness.

References