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COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2016
Leslie A. Jamison, CPA Dean of Finance
5100 Black Horse Pike · Mays Landing, New Jersey 08330 · 609-625-1111
ATLANTIC CAPE COMMUNITY COLLEGE COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2016
TABLE OF CONTENTS
Introductory Section Page(s) President’s Letter 1 Transmittal Letter 2-6 Principal Officials 7 Organization Chart 8 Financial Section Independent Auditors‘ Report 9-11 Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 12-13 Required Supplementary Information – Part I: Management’s Discussion and Analysis (Unaudited) 14-23 Basic Financial Statements: Statements of Net Position 24 Statements of Revenues, Expenses, and Changes in Net Position 25 Statements of Cash Flows 26-27 Notes to Financial Statements 28-68 Required Supplementary Information – Part II: RSI-1 Schedule of the College’s Proportionate Share of the
Net Pension Liability – Public Employees’ Retirement System 69 RSI-2 Schedule of College’s Contributions – Public Employees’
Retirement System 70 Notes to Required Supplementary Information – Part II 71 Supplemental Financial Information:
Balance Sheets 72-73 Statement of Changes in Fund Balances 74
Statement of Current Fund Revenues, Expenditures and Other Changes 75
Budget Comparison to Actual 76 Salary Expenditures 77 Single Audit Section
Report on Compliance for Each Major Program and Report On Internal Control Over Compliance Required By The Uniform Guidance and State of New Jersey Circular 15-08 OMB 78-79
Schedule of Expenditures of Federal Awards 80-81 Schedule of Expenditures of State Financial Assistance 82 Notes to the Schedules of Expenditures of Financial Awards 83 Schedule of Findings and Questioned Costs 84-86 Summary Schedule of Prior Audit Findings 87
Statistical Section (Unaudited) Net Position 88 Capital Assets 89 Revenues by Source 90-91 Current Unrestricted Fund Revenues by Source 92-93 Expenditures by Natural Classification 94-95 Current Unrestricted Fund Expenditures by Function 96-97 Enrollment Data 98-102 Demographic and Economic Statistics 103 Principal Employers 104 College Staffing 105
INTRODUCTORY SECTION
President’s Letter
Members of the Atlantic Cape Board of Trustees:
I am pleased to provide you and the college community with the Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2016. The 2016 Fiscal Year represents my eleventh year as President of Atlantic Cape and it was a year of substantial accomplishments for the institution. A review of the data in this report suggests that the College’s financial picture continues to be sound. I would like to recognize the efforts of the Finance Department, led by Dean Leslie Jamison, for their work to ensure the rigorous standards of the CAFR have been met. The ongoing loss of population in New Jersey, which impacts on our service area, has contributed to a pattern of decreased enrollment for the community college sector, and for Atlantic Cape in particular. This trend creates a significant challenge for Atlantic Cape. To help meet that challenge, the College will enhance our efforts to provide proven leadership in meeting the academic and workforce training needs in our two-county service area. That role, in my view, is the college’s most important contribution to the
economic prosperity of our residents. Fiscal Year 2016 was an exciting period at Atlantic Cape Community College. Reflecting the priorities in the strategic plan, the College maintained its commitment to a comprehensive Student Success and Completion Initiative. Atlantic Cape is proud to be an Achieving the Dream institution. During Fiscal Year 2016, the College focused on seven core student success initiatives, including accelerated learning in English and Math, the early alert retention initiative, career development, honors program, math boot camp, and prior learning assessment. We also continued utilizing strategies under the Board-endorsed Strategic Finance model, designed to ensure that the institution is able to efficiently maximize resources. In doing so, Atlantic Cape continues to fulfill its published mission of creating opportunity by providing access to superior, affordable associate degree programs and continuing education to residents of our service area. Furthermore, extensive renovations to existing academic space at the Mays Landing campus were completed in Fiscal Year 2016, as well as renovations for student success and career planning centers at the Cape May and Atlantic City campuses. We began construction of a new student success and career planning center at the Mays Landing campus. These capital projects are part of Atlantic Cape’s Blueprint 2020: Facilities Master Plan. The key focus of this comprehensive, integrated capital expansion plan is to enhance the ability of the College to fulfill its published mission. We are extremely appreciative of the leadership and advocacy provided by the Board of Trustees. Your dedication and vision are essential for the future success of this institution. Working together, the Board of Trustees, the college community, and our external stakeholders enable Atlantic Cape to continue to fulfill its legacy of truly serving as the “community’s college.” Sincerely,
Peter L. Mora Sr. President
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December 22, 2016 The Board of Trustees Atlantic Cape Community College Mays Landing, New Jersey We are pleased to provide you with the Comprehensive Annual Financial Report of Atlantic Cape Community College (the College) for the Fiscal Year ended June 30, 2016. The purpose of this report is to provide the Board of Trustees, college staff, citizens, and other interested parties with useful information concerning the College’s operations and financial position. The College’s Finance Office prepared this report. The responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the management of the College. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the College as of June 30, 2016, and for the Fiscal Year then ended. All disclosures necessary to enable the reader to gain an understanding of the College’s financial activities in relation to its mission have been included. The Comprehensive Annual Financial Report is organized in four sections, as follows:
1. The Introductory Section contains the President’s letter, this letter of transmittal with an overview of the College that includes factors affecting the financial condition and required supplementary information, a listing of principal officials, and the organizational chart. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
2. The Financial Section includes Management’s Discussion and Analysis (MD&A), the basic financial
statements and accompanying notes, required supplementary information, supplemental financial and management information, as well as the independent auditors’ reports.
3. The Single Audit Section contains the report of the independent auditors’, the schedules of expenditures of federal awards and state financial assistance and notes to the schedules of expenditures of financial awards.
4. The Statistical Section includes selected unaudited financial and demographic information, generally
presented on a multi-year basis. The organization, form and contents of this report were prepared in accordance with the standards prescribed by the Governmental Accounting Standards Board (GASB), the Government Finance Officers Association of the United States and Canada (GFOA), and the American Institute of Certified Public Accountants. College Information
Atlantic Cape Community College is a two-year publicly supported community college operating under the provisions of N.J.S.A. 18A:64 A1, et seq. In December 1963, the State of New Jersey Department of Education granted approval for the establishment of the College, which became the second community college to be organized by the State on April 14, 1964. The College offers a wide range of programs to meet the needs of the surrounding community. Financial support is received from county and state governments.
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The Board of Trustees of the College voted on August 28, 1998 to approve a resolution authorizing Atlantic Community College to enter into a joint venture college with Cape May County. Officials from the College, Atlantic County and Cape May County signed a contract outlining the terms of the agreement. The New Jersey Legislature approved changes to the New Jersey Community College funding formula. The jointure agreement became effective January 1, 1999, and the College was renamed Atlantic Cape Community College in February 1999. The Counties of Atlantic and Cape May provide support to the College based upon the funding formula specified in the jointure agreement. Atlantic County has eight voting members on the Board of Trustees of the College. Cape May County has four voting members on the Board of Trustees of the College. In addition to these voting members, both counties are represented on the Board of Trustees of the College by the Executive County Superintendent of Schools (Atlantic & Cape May) who is also a voting member. Also, one voting alumnus member from Atlantic or Cape May County is elected for a one-year term by each year’s graduating class.
The College serves Atlantic and Cape May counties in southern New Jersey from three campuses. The College’s main campus in Mays Landing is situated on 541 acres in the picturesque New Jersey Pinelands, 15 miles west of Atlantic City's boardwalk and 45 miles from Philadelphia. The Charles D. Worthington Campus (WACC) in Atlantic City provides a broad range of educational and related services to students, especially those who live and/or work in the Atlantic City area. The College’s Cape May County campus in Cape May Court House enhances the Cape May County student experience.
For the Fiscal Year ended June 30, 2016, the College enrolled 8,860 credit students, compared to 9,551 the prior year. The Fall 2015 unduplicated credit student headcount was 6,361. Of these, 89.1% of the students are from either Atlantic or Cape May County. Atlantic Cape Community College accounts for approximately 4% of the 19 New Jersey community college student credit hour enrollments. College Mission The mission of Atlantic Cape Community College is to:
Create opportunity by providing access to superior educational programs
The College offers more than forty transfer and career degree programs. Students may choose from an Associate in Arts, Associate in Applied Science, Associate in Science, industry certifications and continuing education professional development and training services.
Nationally recognized programs are the College’s Casino Career Institute and the Academy of Culinary Arts.
The College is accredited by the Middle States Commission on Higher Education (MSCHE). Inquiries may be sent to: Middle States Commission on Higher Education at 3624 Market Street, 2nd Floor West, Philadelphia, PA 19104. Telephone: (267) 284-5000. E-mail: [email protected] Spanish: [email protected] Professional associations have also accredited those professional-technical programs that require approval. Long Term Strategic Financial and Operational Planning The College engages in an annual strategic and operational planning cycle that involves all levels of the organization. This planning process provides a framework to advance the College’s mission and goals in order to meet the needs of the students and the community.
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Financial Information The College maintains its accounts and prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP) as set forth by the Governmental and Financial Accounting Standards Boards (GASB and FASB) and the National Association of College and University Business Officers (NACUBO). The College follows GASB Statement No. 35 Basic Financial Statements and Management Discussion and Analysis for Public Colleges and Universities. The financial records are maintained on the accrual basis of accounting whereby all revenues are recorded when earned and all expenses are recorded when a legal obligation to pay exists. The notes to the financial statements expand upon the accounting principles applied. State statutes require an annual audit by an independent certified public accounting firm. The College’s Board of Trustees selected the independent public accountants, Bowman & Company LLP, to audit the College’s financial statements. Their report is included as part of the financial presentation. In accordance with GASB pronouncements, the College’s financial statements include all funds and departments of the College (the primary government) and the Atlantic Cape Community College Foundation, Inc., its component unit. The foundation is included in the College’s reporting entity because of the significance of their operational and financial relationship with the College. Notes 2 and 24 to the financial statements give further information about the foundation included in the financial statements. Internal Controls Management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the College are protected from loss, theft, or misuse and to ensure adequate accounting information is available for the preparation of the financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and that the valuation of costs and benefits requires estimates and judgments by management. Budgetary Controls The College maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual budget approved by the College’s Board of Trustees. The budget is prepared on an annual basis as part of the College’s strategic planning process, and the recommended budget parameters are presented to the Budget, Audit and Finance Committee of the Board of Trustees for review. After these parameters are established, the annual budget request is developed and approved by the College Board of Trustees. The Atlantic Cape Community College Board of School Estimate approves the Atlantic and Cape May Counties appropriations. Financial Reporting An automated financial record system captures all financial transactions and provides data for the preparation of this CAFR, including the audited financial statements. The CAFR is distributed to the College’s Board of Trustees and executive management, federal and state agencies, and financial institutions as well as others throughout the general public. The Budget, Audit and Finance Committee of the Board of Trustees routinely monitors and reports on revenue collections compared to budget and actual expenses compared to budget, carefully reviewing variances. Internal management reports, customized to meet the information and decision-making needs at all levels of the organization, aid in the management of financial resources.
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Cash Management The College is governed by New Jersey statute when depositing funds or investing excess funds. The Board of Trustees approves all depositories and investment policies. All excess funds are invested in a prudent, conservative and secure manner with the intent to maximize investment income. Risk Management Comprehensive business insurance is purchased through a cooperative pool. The pool provides its members with property, liability, motor vehicle, and other miscellaneous insurance. The pool is a risk sharing public entity that is both an insured and self-administered group established for the purpose of providing low cost insurance coverage to its members. In addition the College participates in a self-insurance pool for workers’ compensation. Economic Condition and Outlook After a decade of population growth rates that exceeded those of the state, population in both counties in the service area have now shown declines. The peak in 2013 at 372,016 declined to 368,946 in 2015. With the closing of four casino hotel properties in 2014 and a fifth in late 2016, the region has one of the highest residential home foreclosure rates in the country. While actual employment has continued its decline from a 2007 peak, the unemployment rate has improved from 13.5% in 2012 to 9.8% in 2015 as the employment force has contracted. The College plays a key role in providing the necessary workforce development and job training offerings to meet the current employment market needs. According to the N.J. Department of Labor and Workforce Development, N.J. can expect a 6.5% increase in employment opportunities by 2024. This rate is expected to be substantially lower in Atlantic (2.6%) and in Cape May (3.4%) counties. Many of the jobs with the greatest projected growth rates in this period are within the health and construction industries. Estimates of projected New Jersey employment by education and training requirements indicate that the occupations with a minimum requirement of an Associate Degree will increase by 9.1% by 2024.
The College's financial outlook for the future is positive, but with challenges influenced by the economic climate of the State and Counties. Although College enrollments reached their highest levels in the spring semester of 2010, with over 7,600 credit students taking courses, enrollment has been declining, following a predicted decline in anticipated high school graduates which began in 2009. Fall semester 2015 saw a 7% decrease in overall enrollment compared to the same period in 2014.
In addition to student enrollment, the State of New Jersey and Counties of Atlantic and Cape May support the College. The counties have steadily supported the College with operating and capital appropriations. Although the State of New Jersey continues to experience economic constraints, it has maintained the same level of funding to the sector. The College has maintained its 4% share of that overall appropriation. In Fiscal Year 2016 students paid 59.4% toward the cost of education, with the counties funding 21.4% and the State 15.6%. The balance of revenue is provided by investment income and other sources. Operating costs in the areas of health benefits, security, technology and renewal and replacement of facilities continue to escalate. The College is maintaining its program of cost containment, cost avoidance and revenue enhancement efforts, while continuing to operate within its resources.
Page 5
As increases in the population base and student enrollments moderate, tuition and fee revenue will grow more slowly. The College is challenged to provide exemplary services and continue its fiduciary responsibility of maintaining facilities with shrinking resources. Major initiatives by the College include addressing deferred maintenance on college campuses. A capital improvement plan supported by Chapter 12 and the “Building Our Futures Act” (state and county support) is ongoing. Student success and career planning centers at the Cape May and Atlantic City campuses were completed in Fiscal Year 2016. Construction of a new student success and career planning center at the Mays Landing campus has begun. Two major construction projects, the STEM (Science, Technology, Engineering and Math) building on the Mays Landing campus and a hospitality wing on our Worthington Atlantic City campus opened during Fiscal Year 2015, with completion dates of Spring, 2015 and Fall, 2014, respectively. Our ability to service students will be enhanced through our partnership with Rutgers University, who completed construction on a facility on our Mays Landing campus which opened for classes in September, 2012. College administration recognizes the challenges involved in providing the access that our students and community need. It will continue to maintain the balance between affordable tuition and fees while delivering quality services. Acknowledgments The timely preparation of the College’s comprehensive annual financial report was made possible by the dedicated service of the entire staff of the Finance Office. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. Respectfully submitted,
Leslie A. Jamison Dean of Finance
Page 6
ATLANTIC CAPE COMMUNITY COLLEGE
BOARD OF TRUSTEES Maria Ivette Torres, Chairperson Dave Coskey, Vice Chairperson
Maria K. Mento, Treasurer Ellen Byrne, Esq. Christina Clemans
David A. Evans James B Kennedy, Esq.
Brian G. Lefke Mary B. Long
Thomas E. Milhous Israel Negron II, Alumni Representative
Donald J. Parker Dr. Richard Stepura, Interim Executive County Superintendant of Schools (Atlantic & Cape May)
Helen W. Walsh Louis J. Greco, Esquire, Board Attorney
Jean McAlister, Board Secretary
OFFICERS OF THE COLLEGE Maria Ivette Torres, Chairperson Dave Coskey, Vice Chairperson
Maria K. Mento, Treasurer
ATLANTIC COUNTY EXECUTIVE Dennis Levinson
ATLANTIC COUNTY ADMINISTRATOR
Gerald DelRosso
ATLANTIC COUNTY BOARD OF CHOSEN FREEHOLDERS
Frank D. Formica, Chairman Will Pauls, Vice Chairman
James A Bertino John L. Carman
Ernest D. Coursey Richard R. Dase Maureen Kern
Alexander C. Marino John W. Risley
CAPE MAY COUNTY DIRECTOR of OPERATIONS
Michael Laffey
CAPE MAY COUNTY BOARD OF CHOSEN FREEHOLDERS
Gerald M. Thornton, Director Leonard C. Desiderio, Vice Director
Kristine Gabor E. Marie Hayes
Will Morey
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College President
Resource Development & President/Board
of Trustees Operations
Planning, Research,
Facilities & Executive Support
Student Affairs & Branch Campus
Management
Board of Trustees
Enrollment Management &
College Relations
Academic Affairs
Finance Information Technology
Services
Human Resources, Public Safety and
Compliance
Administration And
Business Services
Office of President/Board of Trustee Services
Resource/Alumni Development
Accounting/ Budgets
Bursar’s Office
Administrative Computing
PC Services & Telephony
College Relations
Admissions & Recruitment
Testing
Financial Aid
Institutional Research,
Planning & Assessment
Facilities & Capital Projects
Business Services
Purchasing
Perishable Storeroom
Human Resources
Public Safety
Health Services & Compliance
Counseling and Support Services
Student Development
CMCC Student Services & Campus
Management
WACC Student Services & Campus
Management
Enrollment Services
Liberal Studies
Career Education
Continuing Education
Academic Support Services
Academy of Culinary Arts
STEM Programs
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FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT Board of Trustees Atlantic Cape Community College Mays Landing, New Jersey 08330 Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities of Atlantic Cape Community College (the “College”), a component unit of the County of Atlantic, State of New Jersey, and its discretely presented component unit (Atlantic Cape Community College Foundation), as of and for the fiscal years ended June 30, 2016 and 2015, and the related notes to the financial statements, which collectively comprise the College's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of the College’s discretely presented component unit. Those financial statements were audited by other auditors, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the discretely presented component unit, are based on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. The financial statements of the College’s discretely presented component unit were audited in accordance with auditing standards generally accepted in the United States of America, but were not audited in accordance with Government Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the College’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the College’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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Opinion In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities of Atlantic Cape Community College and the College’s discretely presented component unit, as of June 30, 2016 and 2015, and the respective changes in financial position and, where applicable, cash flows for the fiscal years then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of the College’s proportionate share of the net pension liability and schedule of College contributions, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the College's basic financial statements. The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The introductory section, supplemental financial information, and statistical section, are presented for purposes of additional analysis and are also not a required part of the basic financial statements. The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance, and supplemental financial information are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedules of Expenditures of Federal Awards and State Financial Assistance, and supplemental financial information are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2016, on our consideration of Atlantic Cape Community College’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the College's internal control over financial reporting and compliance.
Respectfully submitted,
BOWMAN & COMPANY LLP Certified Public Accountants & Consultants
Woodbury, New Jersey December 22, 2016
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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITORS’ REPORT Board of Trustees Atlantic Cape Community College Mays Landing, New Jersey 08330 We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial statement audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the business-type activities of Atlantic Cape Community College (the “College”), a component unit of the County of Atlantic, State of New Jersey, and its discretely presented component unit (Atlantic Cape Community College Foundation), as of and for the fiscal year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the College’s basic financial statements, and have issued our report thereon dated December 22, 2016. Our report on the financial statements includes a reference to other auditors who audited the financial statements of the College’s discretely presented component unit (Atlantic Cape Community College Foundation), as described in our report on the College’s financial statements. The financial statements of the College’s discretely presented component unit (Atlantic Cape Community College Foundation) were audited in accordance with auditing standards generally accepted in the United States of America, but were not audited in accordance with Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Atlantic Cape Community College’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the College’s internal control. Accordingly, we do not express an opinion on the effectiveness of Atlantic Cape Community College’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the College’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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Compliance and Other Matters As part of obtaining reasonable assurance about whether Atlantic Cape Community College’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the College’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the College’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Respectfully submitted,
BOWMAN & COMPANY LLP Certified Public Accountants & Consultants
Woodbury, New Jersey December 22, 2016
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ATLANTIC CAPE COMMUNITY COLLEGE MANAGEMENT’S DISCUSSION AND ANALYSIS
(UNAUDITED)
Management’s discussion and analysis of the College’s financial performance during the Fiscal Years ended June 30, 2016 and 2015, as well as Fiscal Year ended June 30, 2014 activity, is presented in this section of the annual financial report. Management prepared this discussion along with the financial statements and the related footnote disclosures, and this discussion should be read in conjunction with and is qualified in its entirety by the financial statements and footnotes. The financial statements, footnotes and this discussion are the responsibility of management. Using This Annual Report These financial statements focus on the College as a whole and are designed to emulate corporate presentation models whereby all College activities are consolidated into one total. The financial statements are prepared using the accrual basis of accounting which recognizes revenues when earned and expenses when incurred. This annual report consists of a series of financial statements prepared in accordance with Statement 35, Basic Financial Statements-and Management’s Discussion and Analysis for Public Colleges and Universities, of the Governmental Accounting Standards Board. The College implemented these reporting standards for the Fiscal Year ended June 30, 2002. The Statement of Net Position presents all of the College’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net position. The assets and liabilities are reported in order of relative liquidity while net position is categorized as Net Investment in Capital Assets, Restricted, or Unrestricted. Over time, increases or decreases in net position are an indicator of the improvement or erosion of the College’s financial health. The Statement of Revenues, Expenses, and Changes in Net Position focuses on the gross and net costs of College activities occurring during the year, and how these activities are supported. Revenues and expenses are reported as either operating or non-operating. State and county appropriations, federal and state student financial aid, as well as investment activities, are reported as non-operating and denote the dependency the College has on their support. Another way to assess the financial health of an institution is to look at the Statement of Cash Flows. Its primary purpose is to provide relevant information about the cash receipts and cash payments of an entity during a period. The Statement of Cash Flows also helps users assess:
An entity’s ability to generate future net cash flows Its ability to meet its obligations as they come due and Its needs for external financing
The Comprehensive Annual Financial Report (CAFR) is presented in four sections: introductory, financial, single audit and statistical. The introductory section includes the President’s letter, the transmittal letter, the College’s principal officers, and an organizational chart. The financial section includes the reports of the independent auditors’, management’s discussion and analysis, the basic financial statements, notes to the financial statements, required supplementary information, and supplemental financial and management information. The single audit section contains the report of the independent auditors’, the schedules of expenditures of federal awards and state financial assistance and notes to the schedules of expenditures of financial awards. The statistical section includes unaudited financial information.
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ATLANTIC CAPE COMMUNITY COLLEGE MANAGEMENT’S DISCUSSION AND ANALYSIS
(UNAUDITED)
Financial Highlights Fiscal Year 2016 Compared to 2015
Cash balances increased by $253,547 during the year ended June 30, 2016, compared to an increase of $2,831,071 during the year ended June 30, 2015. There was a 2.2% increase in net tuition and fee revenues, which is largely due to an 8.5% decrease in allowances. Student credit hour enrollments continue a decline which began five years ago. This enrollment decline is partially mitigated by a 2.8% average increase in rates. College-wide, salaries and benefits increased by $1,051,979, or 3%. Included in this increase is the effect of GASB 68 adjustments causing an increase of $363,832 in benefits. Additions of $6,443,873 in buildings and improvements reflects the completion of major renovations to existing academic facilities during the year ended June 30, 2016. The College also completed renovations for student success and career planning centers at the Cape May and the Worthington Atlantic City campuses. These capital projects were supported by State of New Jersey Chapter 12 funding and New Jersey Educational Facilities Authority Building Our Future Bonds matched by Atlantic and Cape May County funds. The following summary of cash flows for the years ended June 30, 2016, 2015, and 2014 was prepared from the College’s Statement of Cash Flows:
FY2016 FY2015 FY2014Change
FY2015-2016
Cash provided (used) by:Operating activities (29,986,496)$ (31,082,506)$ (31,693,181)$ $ 1,096,010
Non-capital financing activities 30,735,091 32,459,328 33,489,295 (1,724,237)
Capital and related financing activities (576,192) 1,376,525 (3,728,370) (1,952,717)
Investing activities 81,144 77,724 68,168 3,420Net increase (decrease) in cash 253,547 2,831,071 (1,864,088) (2,577,524)
Cash, beginning of year 17,304,800 14,473,729 16,337,817 2,831,071 Cash, end of year 17,558,347$ 17,304,800$ 14,473,729$ 253,547$
The College’s net position at June 30, 2016 increased $2,592,605. The major factor contributing to the increase in Fiscal Year 2016 is additions to net investment in capital assets. The College’s financial position, as a whole, is healthy. Net position increased by 5.3% from the level at the previous year-end. A decrease of 3.6% in expendable restricted net position is primarily attributable to the change in capital projects. Non-expendable net position increased by 1.1% as the College’s endowments increased by $8,605. An increase of 5.2% in net investment in capital assets is due to capital additions in excess of depreciation expense and retirements. Total unrestricted net position decreased by 3.4%, mainly due to the Fiscal Year 2016 education and general operating margin of $(206,671) and the change in pension related items.
Page 15
ATLANTIC CAPE COMMUNITY COLLEGE MANAGEMENT’S DISCUSSION AND ANALYSIS
(UNAUDITED)
The summary schedule below is prepared from the College’s Statement of Net Position. The schedule displays the change in net position from 2015 to 2016 and 2014 activity.
Assets
FY2016 FY2015 FY2014 Change FY2015-
2016
% Change
Current assets $ 18,196,611 $ 18,539,624 $ 19,883,788 $ (343,013) (1.9)% Noncurrent assets 74,708,021 71,494,519 65,726,295 3,213,502 4.5 %
Total assets 92,904,632 90,034,143 85,610,083 2,870,489 3.2 %
Deferred Outflows of Resources Liabilities
5,612,130
2,170,090
3,442,040
158.6 %
Current liabilities 8,930,813 8,765,397 9,887,448 165,416 1.9% Noncurrent liabilities 34,811,863 31,006,438 2,188,812 3,805,425 12.3 % Total liabilities 43,742,676 39,771,835 12,076,260 3,970,841 10.0 %
Deferred Inflows of Resources
3,306,438
3,557,355
(250,917)
(7.1) %
Net Position Unrestricted (Deficit) (23,603,807) (22,816,930) 7,212,590 (786,877) (3.4)% Restricted 4,372,942 4,497,483 4,864,484 (124,541) (2.8)% Net investment in
capital assets 70,698,513 67,194,490 61,456,749 3,504,023 5.2 %
51,467,648 48,875,043 73,533,823 2,592,605 5.3%
Restatement of: Net pension liability and Pension related deferred outflows of resources per GASB 68
(30,443,478)
Total Net Position $ 51,467,648 $48,875,043 $ 43,090,345 $ 2,592,605 5.3%
Enrollment College enrollment is comprised of credit and non-credit full-time equated students (FTEs). A full time equated student represents a student or combination of students taking thirty (30) credits.
FY2016 FY2015 FY2014
Change FY2015-2016
%Change
Credit FTEs 4,544 4,903 5,244 ( 359) ( 7.3)% Non Credit FTEs 196 178 145 18 10.1% Leased/High School Curriculum
23 23 20 0 0.0%
Total FTEs 4,763 5,104 5,409
Page 16
ATLANTIC CAPE COMMUNITY COLLEGE MANAGEMENT’S DISCUSSION AND ANALYSIS
(UNAUDITED)
Revenue The College received its revenue from three main sources: tuition and fees, state aid and county support. Nonoperating revenues include $13.2 million in student financial aid received by the College for participating in the Pell Grant Program. The balance of revenue was received from miscellaneous sources that included grants, investment income, and other income. Tuition Rates The College charged $116.00 per in-county general education student credit hour (SCH) for an average of $1,740 per term. In Fiscal Years 2015 and 2014, the tuition charged was $113.00 and $108.00, respectively, per in-county student credit hour. General Fee The College charged $21.30 per student credit hour for an average of $319.50 per term during Fiscal Year 2016. The general fee that was charged during Fiscal Years 2015 and 2014 was $20.60 and $13.60, respectively. In Fiscal Year 2015, the information services fee, previously charged separately, was incorporated into the general fee. The following chart illustrates sources of revenue for the year ended June 30, 2016:
Page 17
ATLANTIC CAPE COMMUNITY COLLEGE MANAGEMENT’S DISCUSSION AND ANALYSIS
(UNAUDITED)
Fiscal Year 2016 Compared to 2015 From 2015 to 2016, there was a 3.2% decrease in the College’s total revenue from $57.6 million to $55.8 million. Operating revenue increased by 7.8% or $1.3 million from the level achieved during the previous year. Of that total, net tuition and fee revenue increased 2.2%, or $280 thousand, mainly attributable to an 8.5% decrease in student allowances. Operating revenues from federal, state and local grants and contracts total $4.2 million. Federal grants and contracts operating revenue increased 25.2%, or $677 thousand, mainly due to the U.S. Department of Labor’s WIA Dislocated Worker Formula Grants and Trade Adjustment Assistance Community College Career and Training Program grant. Other state and local grants and contracts increased by 88.4%, or $353 thousand, primarily due to the workforce training grants and contracts which took place in Fiscal Year 2016. Net nonoperating revenues decreased by 5.9%, or $1.9 million. The Atlantic and Cape May Counties appropriation to the College remained virtually unchanged. The State of New Jersey appropriation for operating costs decreased by 1.5%, or $82 thousand. Federal student financial aid, such as PELL and SEOG, decreased 10.4%, or $1.6 million. State student financial aid (excluding loans) decreased by 11.3% or $274 thousand. Charitable contributions increased 14.7%, or $51 thousand. Investment revenue increased 4.4%, or $3 thousand. Capital appropriations decreased by $1.2 million as two major construction projects, the STEM building on the Mays Landing campus and the hospitality wing on the Worthington Atlantic City campus, opened in Fiscal Year 2015. Capital appropriations reflects the support by federal, state and county agencies for the College’s master facilities plan. Expenses The following chart illustrates the relative size of operating expenses for the year ended June 30, 2016:
Page 18
ATLANTIC CAPE COMMUNITY COLLEGE MANAGEMENT’S DISCUSSION AND ANALYSIS
(UNAUDITED)
The College engages in an annual strategic and operational planning cycle that involves all levels of the organization. This planning process provides a framework to advance the College’s mission and goals in order to meet the needs of the students and the community. The schedule below lists the College’s strategic goals for the five years ending June 2016, and the current unrestricted fund budgeted and expended amounts for the Fiscal Year ended June 30, 2016:
FY16 Revised FY16 Expended Strategic Goals
Budget Amount Amount 2012 - 2016
Goal 1 $25,442,666 $24,656,938 Maximize student success
Goal 2 1,228,514 1,151,330 Strengthen community partnerships
Goal 3 14,500,916 13,719,802 Demonstrate effectiveness, continuous
improvement and efficient use of resources
$41,172,096 $39,528,070
The following chart illustrates the relative size of current unrestricted fund operating expenses for the year ended June 30, 2016 by strategic goal:
Page 19
ATLANTIC CAPE COMMUNITY COLLEGE MANAGEMENT’S DISCUSSION AND ANALYSIS
(UNAUDITED)
Fiscal Year 2016 Compared to 2015 Operating expenses increased by 2.6% or $1.3 million over the prior year. Overall, salaries of $24.8 million increased by 1.7% or $413 thousand, and fringe benefits of $9.9 million increased 6.9%, or $639 thousand. Included in this increase is the effect of GASB 68 adjustments causing an increase of $364 thousand in benefits. The College’s cost for medical benefits is offset by employee contributions which began on July 1, 2010. A comparison of operating expenses for the years ended June 30, 2016, 2015 and 2014 is illustrated in the following graph:
Operating Results The following summary of operating results displays the change from 2015 to 2016 and 2014 activity and was prepared from the College’s Statement of Revenues, Expenses, and Changes in Net Position:
Change
FY2016 FY2015 FY2014 FY2015-2016
Total Operating Revenue 17,965,138$ 16,666,193$ 17,684,668$ 1,298,945$
Total Operating Expenses 53,061,643 51,727,500 52,194,555 1,334,143
Operating Loss (35,096,505) (35,061,307) (34,509,887) 35,198
Net Nonoperating Revenue 30,426,056 32,334,250 33,438,105 (1,908,194)
Loss Before Net
Other Revenues (4,670,449) (2,727,057) (1,071,782) (1,943,392)
Capital Appropriation 7,254,485 8,502,101 15,476,336 (1,247,616)
Additions to Permanent
Endowments 8,569 9,654 15,499 (1,085) Increase in Net Position 2,592,605 5,784,698 14,420,053 (3,192,093)$
Net Position, Beginning of Year 48,875,043 43,090,345 59,113,770
Restatement for GASB 68 (30,443,478) Net Position, End of Year 51,467,648$ 48,875,043$ 43,090,345$
Page 20
ATLANTIC CAPE COMMUNITY COLLEGE MANAGEMENT’S DISCUSSION AND ANALYSIS
(UNAUDITED)
Fiscal Year 2016 Budget to Actual Comparison Comparing the total budget to actual activity for the current unrestricted fund, the College earned 97.7% of budgeted revenues and expended 96.5% of budgeted expenditures. Encumbrances at June 30, 2016, subject to automatic re-appropriation in FY2017, totaled $212,683. The summary schedule below is prepared from the College’s Supplemental Financial Information, Budget Comparison to Actual for the Fiscal Year ended June 30, 2016.
Original Adjusted Actual Variance from
Budget Revised Budget Activity Original Budget
over (under)
Total Education and General Income 39,649,880$ 39,649,880$ 38,697,280$ (952,600)$
ABP Reimbursement 600,000 600,000 624,119 24,119 Adjusted Education and General
Income 40,249,880 40,249,880 39,321,399 (928,481) Total Education and General
Expenditures 41,085,000 41,172,096 39,528,070 (1,556,930)
Education and General Operating Margin (835,120)$ (922,216)$ (206,671)$ 628,449$
The variance in revenues was $(928,481). This negative variance resulted primarily from less credit tuition and student fees realized than budgeted due to the decline in enrollment and from a shortfall of continuing education revenues. These budget shortfalls were partially offset by higher than budgeted investment income, costs recovered and other revenue. The original revenue budget was based on an average decrease of 4% from the prior year projected student credit hour enrollments. Actual enrollments of 136,316 student credit hours (excluding dual enrollment) were 7.3% less than the prior year, and under budget projections by 4.4%. Savings in actual salaries and benefits expenditures from the budgeted amount total $941,002 and are reflected in the total education and general expenditures original budget variance of $(1,556,930). The savings are primarily an outcome of cost containment strategies used by management and lower adjunct and overload costs resulting from the decline in enrollment. The educational and general operating margin for Fiscal Year 2016 was $(206,671), and an additional $212,683 was appropriated for encumbrances carried forward to Fiscal Year 2017. Student activities resulted in net funds used of $22,242. Fund Balance transfers during Fiscal Year 2016 were approved by Board Resolution for a boiler replacement project totaling $99,130, and for the consent decree in the amount of $500,000. The adjusted net operating margin was $(827,880). Facilities Expansion Plans Two major construction projects, the STEM (Science, Technology, Engineering and Math) building on the Mays Landing campus and a hospitality wing on our Worthington Atlantic City campus opened during Fiscal Year 2015. These projects were funded by federal US EDA, State of New Jersey Chapter 12, CRDA, and College funds, with matching funds from Atlantic County.
Page 21
ATLANTIC CAPE COMMUNITY COLLEGE MANAGEMENT’S DISCUSSION AND ANALYSIS
(UNAUDITED)
The State of New Jersey authorized a 2007 allocation totaling $6,244,000 of Chapter 12 funds (Public Law 1971) to renovate facilities at the college’s Worthington Atlantic City and Mays Landing campuses. Atlantic County issued bonds to fund the construction, and the State shared the debt service equally with the County. A 2008 allocation of $9,009,000 is designated for deferred maintenance and capital improvements and new construction based on master plan priorities. A 2010 allocation of $2,352,750 bonded by Atlantic County in November, 2011 is designated for the STEM building. A 2012 allocation of $8,500,000 and 2013 allocation of $1,500,000 supported campus renovations, including repurposing Building A, academic classrooms. A 2014 allocation of $4,200,000 will support the construction of a Student Success/ Career and Planning Center. A 2015 allocation of $3,200,000 is designated for academic, lab and office renovations at the Mays Landing campus, fire suppression and plumbing upgrades, as well as exterior upgrades to the Worthington Atlantic City Campus. In Fiscal Year 2014, the State of New Jersey, Secretary of Higher Education awarded the College four Building Our Future Bond Act grants totaling $6,841,115, with Atlantic and Cape May Counties providing 25% in matching funds for each county’s share, providing an additional amount of $2,280,372. The Building Our Future Bond Act provides funds for the construction of higher education buildings, the expansion of additional facilities, and the acquisition and installation of additional and upgraded equipment for the purpose of increasing academic capacity. The College is using the funds for renovations of existing academic buildings, the construction of a Student Success/ Career and Planning Center on the Mays Landing campus, and the renovation of space to create Student Success/ Career and Planning Centers at the Worthington Atlantic City and Cape May County campuses. In Fiscal Year 2014, the College was awarded a $567,000 grant through the New Jersey Educational Facilities Authority, for the State of New Jersey’s Higher Education Technology Infrastructure Fund for the purpose of developing technology infrastructure, with Atlantic and Cape May counties providing matching funds in an amount equal to the grant amount. In Fiscal Year 2014, the College also entered into a $803,542 lease agreement with the New Jersey Educational Facilities Authority for the State of New Jersey’s Higher Education Equipment Leasing Fund Program for the purpose of providing educational equipment. The lease agreement requires that the College pay 25% of the debt service of which Atlantic and Cape May counties will provide the funds proportionately. Capital asset activity for the Fiscal Year ended June 30, 2016 was as follows:
Beginning Ending
Balance Additions Retirements Balance Land $2,370,097 $ - $ - $ 2,370,097
Construction in Progress 1,618,228
1,107,665 (1,069,454) 1,656,439
Land Improvements 2,383,401 7,603 - 2,391,004
Infrastructure 224,847 - - 224,847
Buildings and Improvements 89,947,849 6,443,873 - 96,391,722
Furniture and Equipment 12,089,310 1,598,980 (797,676) 12,890,614
Library Collection 1,340,031 19,436 - 1,359,467
Other Improvements 9,600 - - 9,600
Leasehold Improvements 121,295 - - 121,295
Other Assets 3,054,228 65,904 - 3,120,132
Total 113,158,886 9,243,461 (1,867,130) 120,535,217 Less Accumulated Depreciation
and Amortization (45,964,396) (4,662,374) 790,066 (49,836,704)
Capital Assets, Net $67,194,490 $ 4,581,087 $(1,077,064) $70,698,513
Page 22
ATLANTIC CAPE COMMUNITY COLLEGE MANAGEMENT’S DISCUSSION AND ANALYSIS
(UNAUDITED)
Economic Factors That Affect The Future Although the College’s financial position is currently healthy, the economic position of the College is closely tied to that of the State of New Jersey and the Counties of Atlantic and Cape May. The College’s state and county appropriations and many state and local grants and contracts are influenced by the economic climate of the state and counties. Other factors that affect college tuition and fee revenues include population growth rate, unemployment rate, and the number of high school graduates in Atlantic and Cape May counties. The state of the regional economy, especially Atlantic County, has deteriorated substantially with the closing of five casino hotels from 2014 to 2016 due to competition from neighboring states. As the main economic driver in the South Jersey region, the loss of over 20,000 employees in the casino industry since the recession of 2007 began has now spread employment and income losses to the overall economy. In fact, total employment in Atlantic County remains 16% below the peak reached in 2006, a loss of 25,000 jobs. Cape May County, largely dependent on the summer tourism season, has fared somewhat better but has also not yet recovered the jobs lost since the peak in 2005. These trends in the college’s service area indicate that enrollment pressures will be negative for the near future as the lack of job growth causes an aging of the population. This is reflected in the continued decline in high school graduates as well as overall secondary and elementary enrollments. Salaries and benefits account for 65.4% of the College’s operating expenses. The College’s four bargaining agreements were renegotiated in Fiscal Year 2015 for the period July 1, 2014 to June 30, 2018. This report reflects the negotiated 2% increase for Fiscal Year 2016. Health benefit costs continue to rise. Beginning in Fiscal Year 2011, all covered full-time employee salaries began to contribute to health benefits costs. Their contributions totaled $944 thousand in 2016. Utilities and telephone expenses remained at $1.63 million, or 3% of operating expenses. As new buildings in the master plan are completed, facilities costs will increase. This increase will be partially offset by expected savings on electricity costs from the solar projects on the Mays Landing and Cape May campuses. The cost of technology continues to accelerate and, in order to offer exemplary programs, the College must continue to provide instruction, support, and maintenance at a cost of $3.0 million annually. This includes costs to support the College’s Colleague management information system on which implementation was completed in 2011.
Planning for the maintenance of aging facilities and identifying the funding sources required continues to be a challenge. The College currently relies heavily on Chapter 12 funding supported by the counties and state. Most of the College’s equipment needs are currently funded through grants from various agencies and equipment leasing fund programs made available through the State. Funds from the college’s facilities fee, which is charged on a per student credit hour basis, are dedicated to deferred maintenance. It should be noted that the Board of Trustees has recognized $21.8 million needed for capital projects identified in the College’s facilities master plan. Contacting the College’s Financial Management This financial report is designed to provide readers with a general overview of Atlantic Cape Community College’s finances and to demonstrate the College’s accountability for the resources it receives. Questions concerning this report or requests for additional financial information should be directed to Leslie A. Jamison, Dean of Finance, 5100 Black Horse Pike, Mays Landing, N.J. 08330.
Page 23
College Foundation College FoundationASSETSCurrent assets: Cash and cash equivalents 13,548,839$ 285,038$ 13,004,771$ 125,158$ Security deposits 2,309 1,809 Investments 1,001,433 1,140,222 Accounts receivable: Students, net of allowance of $1,131,983 and $1,115,191 respectively 885,836 969,909 Federal, state, county, local 2,993,102 3,766,192 Other 50,328 1,990 39,123 Pledges receivable 82,641 96,483 121,309 Inventories 96,414 83,210 Prepaid expenses 569,683 9,601 569,127 Other 50,100 9,000
Total current assets 18,196,611 1,380,703 18,539,624 1,386,689
Noncurrent assets: Restricted cash and cash equivalents 4,009,508 4,300,029 Restricted investments 2,843,288 2,788,976 Capital assets, non-depreciable (Note 16) 4,026,536 3,988,325 Capital assets, net of accumulated depreciation of $49,836,704 and $45,964,396 respectively (Note 16) 66,671,977 63,206,165
Total noncurrent assets 74,708,021 2,843,288 71,494,519 2,788,976
Total assets 92,904,632 4,223,991 90,034,143 4,175,665
DEFERRED OUTFLOWS OF RESOURCES Related to pensions (Note 15) 5,612,130 2,170,090
LIABILITIESCurrent liabilities: Accounts payable and accrued liabilities 6,383,515 481,574 6,158,814 412,968 Unearned revenue 2,293,055 26,292 2,435,583 13,380 Current portion: Deposits 8,720 9,267 Compensated absences 220,518 136,730 Equipment leasing fund 25,005 25,003
Total current liabilities 8,930,813 507,866 8,765,397 426,348Noncurrent liabilities: Deposits 94,243 175,452 Compensated absences 1,672,733 1,708,833 Equipment leasing fund 149,985 174,990 Net pension liability (Note 15) 32,894,902 28,947,163
Total noncurrent liabilities 34,811,863 - 31,006,438 - Total liabilities 43,742,676 507,866 39,771,835 426,348
DEFERRED INFLOWS OF RESOURCES Related to pensions (Note 15) 3,306,438 3,557,355
NET POSITIONNet Investment in capital assets 70,698,513 67,194,490 Restricted for: Nonexpendable: Scholarships and fellowships 825,765 2,901,507 817,160 2,877,871 Expendable 3,547,177 463,300 3,680,323 545,415Unrestricted (23,603,807) 351,318 (22,816,930) 326,031
Total net position 51,467,648$ 3,716,125$ 48,875,043$ 3,749,317$
ATLANTIC CAPE COMMUNITY COLLEGESTATEMENTS OF NET POSITION
AS OF JUNE 30, 2016 and 2015
2016 2015
The accompanying notes are an integral part of the financial statements
Page 24
College Foundation College Foundation
REVENUESOperating Revenues: Student tuition and fees (including chargebacks and net of allowances of $11,810,732 and 13,010,267$ 12,730,171$
$12,905,396 respectively) Gifts and contributions 839,101$ 525,443$ Federal grants and contracts 3,361,387 2,683,945 State and local grants and contracts 751,873 399,180 Nongovernmental grants and contracts 123,422 54,304 Sales and services of educational departments 75,981 82,304 Other operating revenues 501,552 501 567,518 240 Auxillary enterprises - student activities 140,656 148,771
Total operating revenues 17,965,138 839,602 16,666,193 525,683EXPENSESOperating Expenses: Instructional 14,708,794 14,176,364 Public service 845,480 754,111 Academic support 4,979,425 4,781,393 Student services 5,199,629 5,086,851 Institutional support 10,241,084 385,792 9,548,580 368,421 Operations and maintenance of plant 6,999,871 7,074,592 Scholarship and student aid 5,262,088 441,359 6,210,634 303,806 Depreciation and amortization 4,662,374 3,946,402 Auxillary enterprises - student activities 162,898 148,573
Total operating expenses 53,061,643 827,151 51,727,500 672,227 Total operating income (loss) (35,096,505) 12,451 (35,061,307) (146,544)
NONOPERATING REVENUES (EXPENSES)State appropriations 5,502,421 5,583,996State appropriations - alternate benefit program 624,119 610,914County appropriations 8,408,622 8,409,196Federal student financial aid 13,359,985 14,912,116State student financial aid 2,144,892 2,419,079Gifts 401,750 350,384Investment income 81,144 (69,279) 77,724 10,841Insurance proceeds 2,680 5,135Repairs funded by capital appropriations
and insurance proceeds (109,865) (106,474)Gain on equipment disposals 10,308 16,980Other nonoperating revenue 55,200
Net nonoperating revenues (expenses) 30,426,056 (69,279) 32,334,250 10,841
Income (loss) before net other revenues (4,670,449) (56,828) (2,727,057) (135,703)
OTHER REVENUESCapital appropriations 7,254,485 8,502,101Additions to permanent endowments 8,569 23,636 9,654 232,909
Total other revenues 7,263,054 23,636 8,511,755 232,909 Changes in net position 2,592,605 (33,192) 5,784,698 97,206
NET POSITIONNet position - beginning of year 48,875,043 3,749,317 43,090,345 3,652,111Net position - end of year 51,467,648$ 3,716,125$ 48,875,043$ 3,749,317$
ATLANTIC CAPE COMMUNITY COLLEGESTATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN NET POSITIONFOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
2016 2015
The accompanying notes are an integral part of the financial statements
Page 25
2016 2015CASH FLOWS FROM OPERATING ACTIVITIES Tuition and fees (including chargebacks) 12,372,787$ 12,253,867$ Grants and contracts 3,705,651 2,835,404 Payments to suppliers (18,135,765) (17,426,747) Payments to employees (24,754,770) (24,606,740) Payments for scholarships and student aid (4,523,411) (5,238,753) Other receipts 1,349,012 1,100,463
Net cash used in operating activities (29,986,496) (31,082,506)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State appropriations 6,244,209 6,077,569 County appropriations 8,408,708 8,409,013 Noncapital grants received - student financial aid 15,633,941 17,303,717 Gifts and grants received for other than capital purposes 448,233 670,180 Principal paid on Perkins loan fund (193) Interest paid on Perkins loan fund (958)
Net cash provided by noncapital financing activities 30,735,091 32,459,328
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital appropriations 7,678,512 11,080,173 Proceeds from sale of capital assets 17,918 16,980 Insurance proceeds 2,680 5,135 Payments to suppliers (109,865) (106,474) Purchase of capital assets (7,066,341) (8,065,915) Construction in progress (1,107,665) (1,618,228) Other receipts 55,200 Private gifts for endowment purposes 8,569 9,654
Net cash provided by (used in) capital and related financing activities (576,192) 1,376,525
CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 81,144 77,724
Net cash provided by investing activities 81,144 77,724
Net increase in cash 253,547 2,831,071
Cash - beginning of year 17,304,800 14,473,729Cash - end of year 17,558,347$ 17,304,800$
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE COMPARATIVE STATEMENTS OF NET POSITION:
Unrestricted Current 13,548,839$ 13,004,771$ Restricted Noncurrent 4,009,508 4,300,029
17,558,347$ 17,304,800$
ATLANTIC CAPE COMMUNITY COLLEGESTATEMENTS OF CASH FLOWS
(COLLEGE ONLY)FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
The accompanying notes are an integral part of the financial statements
Page 26
RECONCILIATION OF NET OPERATING REVENUES (EXPENSES) TO NET CASH USED IN OPERATING ACTIVITIES: Operating loss (35,096,505)$ (35,061,307)$ Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation expense 4,662,374 3,946,402Pension expense 1,549,505 1,150,786Noncash Student awards -textbook scholarships 8,900 17,000
Change in assets and liabilitiesStudent accounts receivable 84,073 (70,660)
Federal, state, county and local receivables 234,514 2,646Other accounts receivable (11,205) 65,190Inventories (13,204) 31,273Prepaid expenses (556) (131,284)Other assets 3,085 (6,522)
Accounts payable and accrued liabilities 63,987 (135,456)Deposits (81,756) 28,159Deferred revenue (142,528) 344,737Deferred outflow of resources - related to pensions: Contributions made after the measurement date (1,294,723) (1,259,836)Compensated absences 47,688 (1,956)Other liabilities (145) (1,678)
Net cash used in operating activities (29,986,496)$ (31,082,506)$
NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Donated textbook vouchers 50,000$ 25,000$
(CONTINUED)
ATLANTIC CAPE COMMUNITY COLLEGESTATEMENTS OF CASH FLOWS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015 (COLLEGE ONLY)
The accompanying notes are an integral part of the financial statements
Page 27
ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 1: ORGANIZATION Atlantic Cape Community College (the College) is a two-year publicly supported community college operating under the provisions of N.J.S.A. 18A:64 A1, et seq. The College, which is located in Atlantic and Cape May Counties, New Jersey, offers a wide range of programs to meet the needs of the surrounding community. Financial support is received from county and state governments. The Board of Trustees of the College voted on August 28, 1998 to approve a resolution authorizing Atlantic Community College to enter into a joint venture college with Cape May County. Officials from the College, Atlantic County and Cape May County signed a contract outlining the terms of the agreement. The New Jersey Legislature approved changes to the New Jersey Community College funding formula. The jointure agreement became effective January 1, 1999. The Counties of Atlantic and Cape May provide support to the College based upon the funding formula specified in the jointure agreement. Atlantic County has eight voting members on the Board of Trustees of the College. Cape May County has four voting members on the Board of Trustees of the College. In addition to these voting members, both counties are represented on the Board of Trustees of the College by the Executive County Superintendent of Schools (Atlantic & Cape May) who is also a voting member. Also, one voting alumnus member from Atlantic or Cape May County is elected for a one-year term by each year’s graduating class. Atlantic Cape Community College is a component unit of the County of Atlantic as described in Governmental Accounting Standards Board Statement No. 14 – The Financial Reporting Entity. These financial statements would be either blended or discretely presented as part of the County’s financial statements if the County prepared its financial statements in accordance with GASB Statement No. 34 – Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments. The County of Atlantic currently follows a basis of accounting and reporting model prescribed by the State of New Jersey, Department of Community Affairs, Division of Local Government Services. Therefore, the financial statements of the College are not presented with the County of Atlantic. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Component Units In evaluating how to define the College for financial reporting purposes, management has considered all potential component units. The decision to include any potential component units in the financial reporting entity was made by applying the criteria set forth in GASB Statements No. 14, The Financial Reporting Entity, as amended by GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, and GASB Statement No. 61, The Financial Reporting Entity: Omnibus – an amendment of GASB Statements No. 14 and No. 34. Blended component units, although legally separate entities, are in-substance part of the government’s operations. Each Discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the government. The basic-but not the only-criterion for including a potential component unit within the reporting entity is the governing body’s ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selection of governing authority, the designation of management, the ability to significantly influence operations, and accountability for fiscal matters. A second criterion used in evaluating potential component units is the scope of public service. Application of this criterion involves considering whether the activity benefits the government and / or its citizens.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Component Units (Continued) A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the government is able to exercise oversight responsibilities. Finally, the nature and significance of a potential component unit to the primary government could warrant its inclusion within the reporting entity. Based upon the application of these criteria, the College has determined that Atlantic Cape Community College Foundation, Inc. (the Foundation) meets the requirement for discrete presentation in the financial statements of the College. In accordance with GASB Statements No. 34 and No. 35, certain presentation adjustments to the financial statements of the Foundation were required to conform to the classification and display requirements in the aforementioned GASB Statements, as applicable to the College. The Foundation is a legally separate, tax-exempt entity, and acts primarily as a fund-raising organization to provide funding and support to Atlantic Cape Community College, its students and educational endeavors, through special event fund-raising and community philanthropy. Although the College does not control the timing or amount of receipts from the Foundation, the majority of resources, or income thereon, which the Foundation holds and invests, is restricted to the activities of the College by the donors. During the fiscal years ended June 30, 2016 and 2015, the College received payments of $445,466 and $652,531 from the Foundation for scholarships, other contributions and capital asset donations. Complete financial statements for the Foundation can be obtained from the Foundation Office at 5100 Black Horse Pike, Mays Landing, NJ 08330. Basis of Accounting The College prepares its financial statements in conformity with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board (GASB), including GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, and GASB Statement No. 35, Basic Financial Statements – and Management’s Discussion and Analysis – for Public Colleges and Universities, and the National Association of College and University Business Officers (NACUBO). The College follows the “business-type activities” reporting requirements of GASB Statement Nos. 34 and 35 for financial reporting purposes. Such financial statements are prepared on the accrual basis. The Foundation reports as a not-for-profit organization under Financial Accounting Standards Board (FASB) standards. As a result, certain revenue recognition criteria and presentation features are different from GASB revenue recognition and presentation features. Fund Accounting In order to ensure observance of limitations and restrictions placed on the use of resources available to the College, the accounts of the College are maintained in accordance with the principles of “fund accounting”. The procedure of fund accounting is one by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund. However, in the accompanying financial statements, all funds are combined for an entity-wide presentation to meet the financial reporting requirements under accounting principles generally accepted in the United States of America as promulgated by GASB.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Contributions Contributions, including unconditional promises to give, are recognized as revenues in the period received. Conditional promises to give are not recognized until they become unconditional, that is, when the conditions on which they depend are substantially met. Contributions of assets other than cash are recorded at their estimated fair value. Contributions to be received after one year are discounted at an appropriate discount rate commensurate with the risks involved. Amortization of discount is recorded as additional contribution revenue in accordance with donor-imposed restrictions, if any, on the contributions. An allowance for uncollectible contributions receivable is provided based upon management’s judgment including such factors as prior collection history, type of contribution and nature of fund-raising activity. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents includes petty cash, amounts in deposits, and short-term investments with original maturities of three months or less. Certificates of deposit that have original maturity dates of more than three months but less than twelve months from the date of purchase are classified as investments. Cash in excess of daily requirements is invested in short-term marketable securities consisting of commercial paper, certificates of deposit and U.S. Treasury obligations. Such investments with maturities of three months or less are deemed to be cash equivalents for the purpose of the College’s financial statement presentation. Cash is categorized as restricted in compliance with purpose restrictions, such as endowment provisions, Board of Trustee funds designations, or federal, state, or other external agency requirements. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. GASB 40 requires that disclosure be made as to the credit rating of all fixed income securities except obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government. The cash management fund is unrated. New Jersey statutes require that county colleges deposit public funds in public depositories located in New Jersey that are insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation, or by any other agency of the United States that insures deposits made in public depositories. County colleges are also permitted to deposit public funds in the State of New Jersey Cash Management Fund. New Jersey statutes require public depositories to maintain collateral for deposits of public funds that exceed depository insurance limits as follows:
The market value of the collateral must be equal to at least 5% of the average daily balance of collected public funds on deposit.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Credit Risk (Continued)
In addition to the above collateral requirements, if the public funds deposited exceed 75% of the capital funds of the depository, the depository must provide collateral having a market value at least equal to 100% of the amount exceeding 75%.
All collateral must be deposited with the Federal Reserve Bank of New York, the Federal Reserve Bank of Philadelphia, the Federal Home Loan Bank of New York, or a banking institution that is a member of the Federal Reserve System and has capital funds of not less than $25,000,000.
Accounts Receivable Accounts receivable consists of tuition and fees charged to students and various other receivables. Accounts receivable are recorded net of estimated uncollectible amounts. Revenues are charged and an allowance is credited with a provision for uncollectible accounts based on experience and on any unusual circumstances that may affect the ability of students or student sponsors to meet their obligations. It is the College policy to write off uncollectible accounts after two years of delinquency. Accounts deemed uncollectible are charged against this allowance. Accounts receivable are reported net of an accumulated allowance of $1,131,983 and $1,115,191 as of June 30, 2016 and 2015, respectively. Tuition Each year the Board of Trustees sets tuition and fee rates based on a per credit hour rate. Rates vary based upon residence within Atlantic and Cape May Counties, out of county, out of state and international students. Inventory Inventory is valued at cost, with cost being determined on a first-in, first-out basis. Prepaid Expenses Prepaid expenses represent payments made to vendors for services that will benefit periods beyond June 30, 2016. Capital Assets Capital assets include land, building and improvements, equipment and infrastructure assets, such as sewer. Capital assets are defined by the College as assets with an initial unit cost of $2,500 or more, or, an aggregate purchase greater than $15,000. The costs of normal maintenance and repairs that do not add value to the asset are not capitalized. Major outlays for capital assets are capitalized as projects are constructed. Such assets are recorded at historical cost and net of accumulated depreciation and amortization of $49,836,704 and $45,964,396 for the years ended June 30, 2016 and 2015, respectively.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) On-Behalf Payments for Pension Contributions In fiscal year 1997, the College adopted the requirements of Governmental Accounting Standards Board (GASB) Statement No. 24 – Accounting and Financial Reporting for Certain Grants and Other Financial Assistance. GASB Statement No. 24 recommends that revenue and expenditures be recorded in the financial statements for the State of New Jersey Pension payments for the Alternate Benefit Program (ABP). Depreciation and Amortization Depreciation has been applied using the straight-line method, with the half-year convention, over the following useful lives: Buildings and improvements 40 years Infrastructure 40 years Improvements (acquired after June 30, 2005) 15 years Other improvements (acquired after June 30, 2006) 25 years Small building 20 years Equipment and furnishings 10 years Vehicles 7 years Library books and audiovisual equipment 7 years Computer equipment (acquired after June 30, 2001) 5 years Amortization has been applied over the term of the applicable lease as follows: Leasehold improvements 2.5 to 5 years Other assets 5 to 20 years Depreciation and amortization expense amounted to $4,662,374 and $3,946,402 for the years ended June 30, 2016 and 2015, respectively. Classification of Revenue The College has classified its revenues as either operating or non-operating revenues in accordance with GASB Statement No. 33 – Accounting and Financial Reporting for non-exchange Transactions. Operating revenues include activities that have the characteristics of exchange transactions, such as (1) student tuition and fees, net of scholarship discounts and allowances, (2) sales and services of auxiliary enterprises, net of scholarship discounts and allowances and (3) most federal and state grants and contracts as well as federal appropriations. Non-operating revenues include activities that have the characteristics of non-exchange transactions, such as gifts and contributions, and other revenue sources that are defined as non-operating revenues by GASB Statement No. 9 – Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting and GASB No. 35, such as state appropriations and investment income. Unearned Revenue Unearned revenue represents tuition revenue that has been received on or before June 30, 2016 for classes that are scheduled in Summer and Fall 2016. It may also include cash which has been received for grants and/ or commissions but not yet earned. Enrollment from an academic term (for example, summer session) which is conducted over a fiscal year end, is reported totally within the fiscal year in which the term is predominantly conducted. The first Summer 2016 session began May 23, 2016.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Scholarship Discounts and Allowances Student tuition and fee revenues are reported net of scholarship discount and allowances in the statement of revenues, expenses and changes in net position. Scholarship discount and allowances are the difference between the stated charge for goods and services provided by the College, and the amount that is paid by students and/or third parties making payments on the students’ behalf. Certain government grants, such as Pell grants, as well as other federal grants and state grants are recorded as either operating or non-operating revenue in the College’s financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees, the College has recorded a scholarship discount and allowance. The amount of scholarship discount and allowances for the fiscal years ended June 30, 2016 and 2015 was $11,810,732 and $12,905,396, respectively. Federal Financial Assistance Programs The College participates in the following federally funded financial assistance programs: Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), Federal Work-Study Grants and Federal Direct Loan Programs (FDLP). Federal programs are audited in accordance with the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Income Taxes The College is a political subdivision of the State of New Jersey and is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended. Deferred Outflows and Deferred Inflows of Resources The statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources. Deferred outflows of resources, reported after total assets, represents a reduction of net position that applies to a future period(s) and will be recognized as an outflow of resources (expense) at that time. Deferred inflows of resources, reported after total liabilities, represents an acquisition of net position that applies to a future period(s) and will be recognized as an inflow of resources (revenue) at that time. Transactions are classified as deferred outflows of resources and deferred inflows of resources only when specifically prescribed by the Governmental Accounting Standards Board (GASB) standards. The College is required to report the following as deferred outflows of resources and deferred inflows of resources:
Defined Benefit Pension Plans - The difference between expected (actuarial) and actual experience, changes in actuarial assumptions, net difference between projected (actuarial) and actual earnings on pension plan investments, changes in the College’s proportion of expenses and liabilities to the pension as a whole, differences between the College’s pension contribution and its proportionate share of contributions, and the College’s pension contributions subsequent to the pension valuation measurement date.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Public Employees' Retirement System (“PERS”) and additions to/deductions from PERS’s fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Net Position The College’s net position is classified as follows:
Net Investment in Capital Assets represents the College’s total investment in capital assets, net of accumulated depreciation. Restricted for Nonexpendable Net Position include resources in which the College is prohibited from expending the principal portion of the funds and is legally or contractually obligated to spend the interest earnings in accordance with restrictions imposed by external third parties. Restricted for Expendable Net Position include resources in which the College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties. Unrestricted Net Position represent resources derived from student tuition and fees, state and county appropriations and sales and services of educational departments or auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the College and may be used at the discretion of the Board to meet current expenses for any purposes. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff.
Reclassifications Certain accounts in the prior year financial statements have been reclassified for comparative purposes to conform to the presentation in the current year financial statements. NOTE 3: SUPPORT OF THE COLLEGE State Aid The New Jersey Department of Treasury, Office of Management and Budget (OMB) allocates the annual appropriation for community college operating aid according to credit hour enrollments as prescribed by N.J.S.A. 18A:64A-22. County Aid Support is provided by the Counties of Atlantic and Cape May and from in-county, out-of-county, and out-of-state students who pay tuition and fees up to approximately $2,133, $2,973 and $3,768, respectively, per full-time student for each of the two academic semesters.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 3: SUPPORT OF THE COLLEGE (CONTINUED) County Aid (Continued) The Board of School Estimate of Atlantic Cape Community College (consisting of four members of the Boards of Chosen Freeholders (two from each county) and two members of the College’s Board of Trustees) adopts a budget for each fiscal year ending June 30 and levies the amount necessary to be raised during that fiscal period on the Atlantic County and Cape May County Boards of Chosen Freeholders. The County operates on a calendar year fiscal period and generates the necessary revenue through a levy on a local property in the form of taxation. NOTE 4: ECONOMIC DEPENDENCY The College receives a substantial amount of its support from federal, state and county governments. A significant reduction in the level of support, if this were to occur, may have an effect on the College’s programs and activities. NOTE 5: CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of the following as of June 30, 2016 and 2015:
2016 2015
Cash and cash equivalents:Cash on hand $ 1,900 1,900 Cash (bank accounts) 14,515,466 14,269,309 New Jersey Cash Management Fund 3,040,981 3,033,591
$ 17,558,347 17,304,800
Bank balances of cash amounted to $14,855,071 and $14,974,528 as of June 30, 2016 and 2015, respectively of which $250,000 was FDIC insured. Bank balances in excess of insured amounts are collateralized in accordance with the provisions of the Governmental Unit Deposit Protection Act (GUDPA).
New Jersey Cash Management Fund During the year, the College participated in the New Jersey Cash Management Fund. The Fund is governed by regulations of the State investment Council, who prescribe standards designed to insure the quality of the investments in order to minimize risk to the Fund’s participants. Deposits with the New Jersey Cash Management Fund are not subject to FDIC or GUDPA categorizations. At June 30, 2016 and 2015, the College had $3,040,981 and $3,033,591, respectively, invested in the Fund. NOTE 6: ENDOWMENTS Donor restricted endowments totaled $825,765 and $817,160 for the fiscal years ended June 30, 2016 and 2015. Investments, if any, are stated at fair value at the date of the financial statements.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 7: PROMISE TO GIVE Unconditional promises to give at June 30, 2016 and 2015 are as follows: 2016 2015 Pledges Receivable $ 0 $ 96,483 NOTE 8: INVENTORIES Inventory for the college at June 30, 2016 and 2015 consisted of the following: 2016 2015 Supplies $ 72,982 $ 60,659 Perishable Stores 23,432 22,551 $ 96,414 $ 83,210 NOTE 9: NON-CURRENT LIABILITIES Non-current liability activity for the fiscal years ended June 30, 2016 and 2015 was as follows:
June 30, 2015 Additions Reductions June 30, 2016 Current Portion
Deposits 184,719$ -$ (81,756)$ 102,963$ 8,720$ Compensated Absences 1,845,563 262,651 (214,963) 1,893,251 220,518 Equipment Leasing Fund 199,993 - (25,003) 174,990 25,005 Net Pension Liability 28,947,163 9,424,267 (5,476,528) 32,894,902 -
31,177,438$ 9,686,918$ (5,798,250)$ 35,066,106$ 254,243$
June 30, 2014 Additions Reductions June 30, 2015 Current Portion
Deposits 156,560$ 28,159$ -$ 184,719$ 9,267$ Compensated Absences 1,847,519 134,919 (136,875) 1,845,563 136,730 Equipment Leasing Fund 224,978 - (24,985) 199,993 25,003 Net Pension Liability 31,718,058 - (2,770,895) 28,947,163 -
33,947,115$ 163,078$ (2,932,755)$ 31,177,438$ 171,000$
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 10: COMPENSATED ABSENCES College employees may accrue annual vacation and sick leave based on length of service but subject to certain limitations regarding the amount that will be paid in the event of retirement or termination. Personal time earned but unused at June 30 is rolled into sick leave and accounted for in compensated absences. The estimated costs of compensated absences, including the college’s FICA match, for which employees are vested is estimated at $1,893,251 and $1,845,563 for the fiscal years ended June 30, 2016 and 2015, respectively. NOTE 11: NET POSITION The following is a summary of Net Position balances of the College for the fiscal years ended June 30, 2016 and 2015:
2016 2015
Net Investment in Capital Assets
Gross $ 70,698,513 $ 67,194,490
Related Debt ‐ ‐
Total Net Invested In Capital Assets 70,698,513 67,194,490
Restricted Net Position
Nonexpendable Scholarships and Fellowships 825,765
817,160
Expendable
Grants, Scholarships and Fellowships 260,591 221,473
Consent Decree 450,778 300,000
State Unemployment Fund 775,000 775,000
Capital Projects 885,421 1,212,678
Renewal and Replacement Reserve (JEC Bond Act) 872,170 971,300
Student Government 90,534 112,776
Appropriated for Encumbrances 212,683 87,096
Subtotal Expendable 3,547,177 3,680,323
Total Restricted Net Position 4,372,942 4,497,483
Unrestricted Net Position (Deficit)
Assignment to FY17 and FY16 Budget 1,124,894 835,120
Pension Related Items (30,589,210) (30,334,428)
Undesignated before Pension Related Items 5,860,509 6,682,378
Total Unrestricted Net Position (23,603,807) (22,816,930)
TOTAL NET POSITION $ 51,467,648 $ 48,875,043
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 12: NONCASH DONATIONS During the fiscal years ended June 30, 2016 and 2015, the college received the following non-cash donations that have been reflected in the financial statements: 2016 2015 Student textbook vouchers $ 50,000 $ 25,000 NOTE 13: EXPENDITURES Operating expenditures by natural classification for the fiscal years ended June 30, 2016 and 2015 were:
2016 2015
Compensation:
Salaries $ 24,805,205 $ 24,392,423
Staff benefits 9,877,457 9,238,260
Total Compensation 34,682 ,662 33,630,683
Other Expenditures:
Supplies and other 5,539,948 5,002,350
Utilities and telephone 1,633,870 1,633,998
Insurance 725,052 704,949
Repairs and maintenance 148,320 222,468
Rent 7,284 7,083
Depreciation and amortization 4,662,374 3,946,402
Scholarship and student aid 5,262,088 6,210,634
Travel 237,147 220,360
Total other expenses before auxiliary enterprises
18,216,083 17,948,244
Auxiliary Enterprises
Student activities expenses 162,898 148,573
Total Expenditures $ 53,061,643 $ 51,727,500
NOTE 14: DEFERRED COMPENSATION SALARY ACCOUNT The College offers its employees a Deferred Compensation Plan in accordance with Internal Revenue Service Code 457. The Plan, available to full time employees at their option, permits employees to defer a portion of their salary to future years. The deferred compensation is not available to participants until termination, retirement, death or unforeseeable emergency. Amounts deferred under Section 457 plans must be held in trust for the exclusive benefit of participating employees and not be accessible by the College or its creditors. The Plan is administered by the College through TIAA-CREF.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 15: PENSION PLANS The College participates in several retirement plans, administered by the State of New Jersey, Division of Pensions and Benefits (the “Division”), covering its employees – the Public Employees' Retirement System (PERS), the New Jersey Alternate Benefit Program (ABP) and the Defined Contribution Retirement Program (DCRP). PERS is a defined benefit pension plan while ABP and DCRP are defined contribution pension plans. Generally, all employees, except certain part-time employees, participate in one of these plans.
The State issues a publicly available Comprehensive Annual Financial Report (CAFR) of the State of New Jersey Division of Pensions and Benefits, which includes financial statements, required supplementary information and detailed information about the PERS’s fiduciary net position. This CAFR can be obtained by writing to the State of New Jersey or by visiting the website below.
State of New Jersey
Division of Pensions and Benefits P.O. Box 295
Trenton, New Jersey 08625-0295 http://www.nj.gov/treasury/pensions
General Information About the Pension Plans Plan Descriptions
Public Employees' Retirement System - The PERS is a cost-sharing multiple-employer defined benefit pension plan which was established as of January 1, 1955, under the provisions of N.J.S.A. 43:15A. The PERS’s designated purpose is to provide retirement, death, disability and medical benefits to certain qualified members. Membership in the PERS is mandatory for substantially all full-time employees of the College, provided the employee is not required to be a member of another state-administered retirement system or other state pensions fund or local jurisdiction’s pension fund. The PERS’s Board of Trustees is primarily responsible for the administration of the PERS.
Alternate Benefit Program - The ABP is a tax-sheltered, defined contribution retirement program for certain higher education faculty, instructors and administrators which was established pursuant to P.L.1969, c. 242 (N.J.S.A. 52:18A-107 et seq., specifically, 18A:66-192). The ABP is an agency fund overseen by the State of New Jersey Division of Pensions and Benefits.
Defined Contribution Retirement Program - The Defined Contribution Retirement Program is a multiple-employer defined contribution pension fund established on July 1, 2007 under the provisions of Chapter 92, P.L. 2007, and Chapter 103, P.L. 2007 (N.J.S.A. 43:15C-1 et. seq.). The DCRP is a tax-qualified defined contribution money purchase pension plan under Internal Revenue Code (IRC) § 401(a) et seq., and is a “governmental plan” within the meaning of IRC § 414(d). The DCRP provides retirement benefits for eligible employees and their beneficiaries. Individuals covered under DCRP are employees enrolled in TPAF or PERS on or after July 1, 2007, who earn salary in excess of established “maximum compensation” limits; employees enrolled in SPRS or PFRS after May 21, 2010, who earn salary in excess of established “maximum compensation” limits; employees otherwise eligible to enroll in TPAF or PERS on or after November 2, 2008, who do not earn the minimum annual salary for tier 3 enrollment but who earn salary of at least $5,000 annually; and employees otherwise eligible to enroll in TPAF or PERS after May 21, 2010 who do not work the minimum number of hours per week required for tiers 4 or 5 enrollment, but who earn salary of at least $5,000 annually.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 15: PENSION PLANS (CONTINUED) General Information About the Pension Plans (Continued) Vesting and Benefits Provisions Public Employees’ Retirement System - The vesting and benefit provisions are set by N.J.S.A. 43:15A and 43:3B. The PERS provides retirement, death and disability benefits. All benefits vest after 10 years of service, except for medical benefits, which vest after 25 years of service or under the disability provisions of the PERS.
The following represents the PERS membership tiers:
Tier Definition
1 Members who were enrolled prior to July 1, 2007 2 Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 2008 3 Members who were eligible to enroll on or after November 2, 2008 and prior to May 21, 2010 4 Members who were eligible to enroll after May 21, 2010 and prior to June 28, 2011 5 Members who were eligible to enroll on or after June 28, 2011 Service retirement benefits of 1/55th of final average salary for each year of service credit is available to tiers 1 and 2 members upon reaching age 60 and to tier 3 members upon reaching age 62. Service retirement benefits of 1/60th of final average salary for each year of service credit is available to tier 4 members upon reaching age 62 and tier 5 members upon reaching age 65. Early retirement benefits are available to tiers 1 and 2 members before reaching age 60, tiers 3 and 4 before age 62 with 25 or more years of service credit and tier 5 with 30 or more years of service credit before age 65. Benefits are reduced by a fraction of a percent for each month that a member retires prior to the age at which a member can receive full early retirement benefits in accordance with their respective tier. Tier 1 members can receive an unreduced benefit from age 55 to age 60 if they have at least 25 years of service. Deferred retirement is available to members who have at least 10 years of service credit and have not reached the service retirement age for the respective tier.
Alternate Benefit Program - ABP provides retirement benefits, life insurance and disability coverage to qualified members. Benefits are determined by the amount of individual accumulations and the retirement income option selected. All benefits vest after the completion of one year of service. Defined Contribution Retirement Program - Eligible members are provided with a defined contribution retirement plan intended to qualify for favorable Federal income tax treatment under IRC Section 401(a), a noncontributory group life insurance plan and a noncontributory group disability benefit plan. A participant's interest in that portion of his or her defined contribution retirement plan account attributable to employee contributions shall immediately become and shall at all times remain fully vested and nonforfeitable. A participant's interest in that portion of his or her defined contribution retirement plan account attributable to employer contributions shall be vested and nonforfeitable on the date the participant commences the second year of employment or upon his or her attainment of age 65, while employed by an employer, whichever occurs first.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 15: PENSION PLANS (CONTINUED) General Information About the Pension Plans (Continued) Contributions Public Employees’ Retirement System - The contribution policy is set by N.J.S.A. 43:15A and requires contributions by active members and contributing employers. Members contribute at a uniform rate. Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rate increased from 5.5% of annual compensation to 6.5% plus an additional 1% phased-in over 7 years beginning in July 2012. The member contribution rates were 7.06% and 6.92% in fiscal years 2016 and 2015, respectively. The phase-in of the additional incremental member contribution rate takes place in July of each subsequent fiscal year. The rate for members who are eligible for the Prosecutors Part of PERS (Chapter 366, P.L. 2001) increased from 8.5% of base salary to 10%. Employers' contribution amounts are based on an actuarially determined rate. The College’s contribution amounts are based on an actuarially determined rate which included the normal cost and unfunded accrued liability. The College’s contractually required contribution rates were 13.15% and 12.83% of the College’s covered payroll for the fiscal years ended June 30, 2016 and 2015, respectively. These amounts were actuarially determined as the amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year, including an additional amount to finance any unfunded accrued liability. Based on the most recent PERS measurement date of June 30, 2015, the College’s contractually required contribution to the pension plan for the fiscal year ended June 30, 2016 was $1,259,836, and was paid by April 15, 2016. College employee contributions to the pension plan during the fiscal year ended June 30, 2016 were $700,173.
Based on the PERS measurement date of June 30, 2014, the College’s contractually required contribution to the pension plan for the fiscal year ended June 30, 2015 was $1,274,580, and was paid by April 15, 2015. College employee contributions to the pension plan during the fiscal year ended June 30, 2015 were $687,471. Alternate Benefit Program - The contributions requirements of plan members are determined by State statute. In accordance with N.J.S.A. 18A:66-173, required contributions, calculated on the employee’s base pay, are 5% for plan members, and 8% for employers. Plan members may make additional voluntary contributions subject to section 403(b) of the internal revenue code. Under N.J.S.A 18A:66-174, most employer contributions are made by the State of New Jersey on-behalf of the College. The College is responsible for the employer contributions for non-academic employees. Plan members direct the investment of contributions to insurance companies and mutual fund companies selected by the New Jersey Division of Pensions' Pension Provider Selector Board. These companies administer plan funds based on alternate benefit contracts with the New Jersey Division of Pensions.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 15: PENSION PLANS (CONTINUED) General Information About the Pension Plans (Continued) Contributions (Continued) Amounts deferred under the plan are not available to employees until termination, retirement, death or unforeseeable emergency. The plan carriers are as follows:
MetLife (Travelers/CitiStreet)
AXA Financial (Equitable) MassMutual Retirement Services (The Hartford)
Voya Financial Services Prudential Retirement Services
Teacher’s Insurance and Annuity Association/College Retirement Equities Fund (TIAA/CREF)
The Variable Annuity Life Insurance Company (VALIC) During the fiscal year end June 30, 2016, employee contributions to the plan were $472,721, and the State of New Jersey made on-behalf payments for the College contributions of $624,119.
During the fiscal year end June 30, 2015, employee contributions to the plan were $469,953 and the State of New Jersey made on-behalf payments for the College contributions of $610,914. Defined Contribution Retirement Program - The contribution policy is set by N.J.S.A. 43:15C-3 and requires contributions by active members and contributing employers. In accordance with Chapter 92, P.L. 2007 and Chapter 103, P.L. 2007, plan members are required to contribute 5.5% of their annual covered salary. In addition to the employee contributions, the College contributes 3% of the employees' base salary, for each pay period, to Prudential Financial not later than the fifth business day after the date on which the employee is paid for that pay period.
For the fiscal year ended June 30, 2016, employee contributions totaled $14,379, and the College recognized pension expense of $7,843. There were no forfeitures during this fiscal year. For the fiscal year ended June 30, 2015, employee contributions totaled $9,879, and the College recognized pension expense of $6,960. There were no forfeitures during this fiscal year. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions The following information relates only to the Public Employees' Retirement System (“PERS”), which is a cost-sharing multiple-employer defined benefit pension plan.
The College reported a liability of $32,894,902 and $28,947,163 for its proportionate share of the net pension liability for the fiscal years ended June 30, 2016 and 2015, respectively. The net pension liability reported at June 30, 2016 was measured by the PERS plan as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2014. The total pension liability was calculated through the use of updated procedures to roll forward from the actuarial valuation date to the measurement date of June 30, 2015. The College’s proportion of the net pension liability was based on a projection of the College’s long-term share of contributions to the pension plan relative to the projected contributions of all
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 15: PENSION PLANS (CONTINUED) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) participating employers, actuarially determined. For the June 30, 2015 measurement date, the College’s proportion was .1465382569%, which was a decrease of .0080714349% from its proportion measured as of June 30, 2014.
The net pension liability reported at June 30, 2015 was measured by the PERS plan as of June 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2013. The total pension liability was calculated through the use of updated procedures to roll forward from the actuarial valuation date to the measurement date of June 30, 2014. The College’s proportion of the net pension liability was based on a projection of the College’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. For the June 30, 2014 measurement date, the College’s proportion was .1546096918%, which was a decrease of .0113492859% from its proportion measured as of June 30, 2013. The College recognized $1,549,459 and $1,193,010, in its financial statements for pension expense for PERS, for the fiscal years ended June 30, 2016 and 2015, respectively. These amounts were based on the plans June 30, 2015 and 2014 measurement dates, respectively.
At June 30, 2016, the College reported deferred outflows of resources and deferred inflows of resources related to PERS from the following sources:
DeferredOutflows Inflows
June 30, 2015 Measurement Date of Resources of Resources
Differences between Expected and Actual Experience 784,757$ -$
Changes of Assumptions 3,532,650 -
Net Difference between Projected and Actual Earnings on Pension
Plan Investments - 528,887
Changes in Proportion and Differences between College Contributions and Proportionate Share of Contributions - 2,777,551
College Contributions Subsequent to the Measurement Date 1,294,723 -
5,612,130$ 3,306,438$
Deferred
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 15: PENSION PLANS (CONTINUED) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) $1,294,723 included in deferred outflows of resources, will be included as a reduction of the net pension liability in the fiscal year ending June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
($600,760) was recognized within pension expense during fiscal year ended June 30, 2016.
At June 30, 2015, the College reported deferred outflows of resources and deferred inflows of resources related to PERS from the following sources:
$1,259,836 included in deferred outflows of resources for June 30, 2015, was included as a reduction
of the net pension liability in the fiscal year ending June 30, 2016.
FiscalYear EndingJune 30,
2017 84,363$ 2018 84,363 2019 84,361
2020 515,638 2021 242,244
1,010,969$
Deferred DeferredOutflow Inflow
June 30, 2014 Measurement Date of Resources of Resources
Differences Between Expected and Actual Experience -$ -$
Changes of Assumptions 910,254 -
Net Difference Between Projected and Actual Earnings on Pension Plan Investments - 1,725,094
Changes in Proportion and Differences Between College Contributions and Proportionate Share of Contributions - 1,832,261
College Contributions Subsequent to the Measurement Date 1,259,836 -
2,170,090$ 3,557,355$
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 15: PENSION PLANS (CONTINUED) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) The amortization of the above other deferred outflows of resources and deferred inflows of resources related to pensions will be over the following number of years:
Actuarial Assumptions
The net pension liability at June 30, 2016 was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2014. The total pension liability was calculated through the use of updated procedures to roll forward from the actuarial valuation date to the measurement date of June 30, 2015.
The net pension liability at June 30, 2015 was measured as of June 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2013. The total pension liability was calculated through the use of updated procedures to roll forward from the actuarial valuation date to the measurement date of June 30, 2014.
Deferred DeferredOutflows Inflows
of Resources of ResourcesDifferences between Expected and Actual Experience
Year of Pension Plan Deferral:June 30, 2014 - -June 30, 2015 5.72 -
Changes of Assumptions
Year of Pension Plan Deferral:June 30, 2014 6.44 -June 30, 2015 5.72 -
Net Difference between Projected and Actual Earnings on Pension Plan Investments
Year of Pension Plan Deferral:June 30, 2014 - 5.00June 30, 2015 - 5.00
Changes in Proportion and Differences between College Contributions and
Proportionate Share of ContributionsYear of Pension Plan Deferral:June 30, 2014 6.44 6.44June 30, 2015 5.72 5.72
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 15: PENSION PLANS (CONTINUED) Actuarial Assumptions (Continued) These actuarial valuations used the following actuarial assumptions, applied to all periods included in the measurement:
Mortality rates were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback 1 year for males and females) for service retirement and beneficiaries of former members with adjustments for mortality improvements from the base year of 2012 based on Projection Scale AA. The RP-2000 Disabled Mortality Tables (setback 3 years for males and setback 1 year for females) are used to value disabled retirees.
In accordance with State statute, the long-term expected rate of return on plan investments (7.90% at the June 30, 2015 and 2014 measurement dates) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic rates of return for each major asset class included in target asset allocation are summarized in the following tables:
Measurement Date Measurement DateJune 30, 2015 June 30, 2014
Inflation 3.04% 3.01%
Salary Increases: 2012-2021 2.15% - 4.40% Based on Age 2.15% - 4.40% Based on Age Thereafter 3.15% - 5.40% Based on Age 3.15% - 5.40% Based on Age
Investment Rate of Return 7.90% 7.90%
Mortality Rate Table RP-2000 RP-2000
Period of Actuarial Experience Study upon which Actuarial Assumptions were Based July 1, 2008 - June 30, 2011 July 1, 2008 - June 30, 2011
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 15: PENSION PLANS (CONTINUED) Actuarial Assumptions (Continued)
Discount Rate -The discount rate used to measure the total pension liability was 4.90% and 5.39% as of the June 30, 2015 and 2014 measurement dates, respectively. The respective single blended discount rates were based on the long-term expected rate of return on pension plan investments of 7.90%, and a municipal bond rate of 3.80% and 4.29% as of June 30, 2015 and 2014, respectively, based on the Bond Buyer Go 20-Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based on the average of the last five years of contributions made in relation to the last five years of actuarially determined contributions. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make projected future benefit payments of current plan members through 2033. Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through 2033, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.
Long-Term Long-TermTarget Expected Real Target Expected Real
Asset Class Allocation Rate of Return Allocation Rate of Return
Cash 5.00% 1.04% 6.00% 0.80%
Core Bonds 1.00% 2.49%U.S. Treasuries 1.75% 1.64%Investment Grade Credit 10.00% 1.79%Intermediate-Term Bonds 11.20% 2.26%Mortgages 2.10% 1.62% 2.50% 2.17%High Yield Bonds 2.00% 4.03% 5.50% 4.82%Inflation-Indexed Bonds 1.50% 3.25% 2.50% 3.51%Broad U.S. Equities 27.25% 8.52% 25.90% 8.22%Developed Foreign Equities 12.00% 6.88% 12.70% 8.12%Emerging Market Equities 6.40% 10.00% 6.50% 9.91%Private Equity 9.25% 12.41% 8.25% 13.02%
Hedge Funds / Absolute Return 12.00% 4.72% 12.25% 4.92%Real Estate (Property) 2.00% 6.83% 3.20% 5.80%Commodities 1.00% 5.32% 2.50% 5.35%Global Debt ex U.S. 3.50% -0.40%REIT 4.25% 5.12%
100.00% 100.00%
Measurement DateJune 30, 2015
Measurement DateJune 30, 2014
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 15: PENSION PLANS (CONTINUED) Sensitivity of College’s Proportionate Share of Net Pension Liability to Changes in the Discount Rate The following presents the College’s proportionate share of the net pension liability at June 30, 2015 calculated using a discount rate of 4.90%, as well as what the College’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current rates used:
The following presents the College’s proportionate share of the net pension liability at June 30, 2014 calculated using a discount rate of 5.39%, as well as what the College’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current rates used:
Pension Plan Fiduciary Net Position For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the respective fiduciary net position of the PERS and additions to/deductions from PERS’ respective fiduciary net position have been determined on the same basis as they are reported by PERS. Accordingly, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For additional information about PERS, please refer to the plan’s Comprehensive Annual Financial Report (CAFR) which can be found at www.nj.gov/treasury/pensions/annrpts.shtml.
1% Current 1%Decrease Discount Rate Increase(3.90%) (4.90%) (5.90%)
College's Proportionate Share of the Net Pension Liability 40,884,339$ 32,894,902$ 26,196,617$
June 30, 2015 Measurement Date
1% Current 1%Decrease Discount Rate Increase(4.39%) (5.39%) (6.39%)
College's Proportionate Share of the Net Pension Liability 36,416,517$ 28,947,163$ 22,674,807$
June 30, 2014 Measurement Date
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 16: CAPITAL ASSET ACTIVITY
The fiscal years 2016 and 2015 activity in capital assets and accumulated depreciation was as follows:
June 30, 2015 June 30, 2016 Balance Additions Retirements Balance
Non-depreciable assets: Land $2,370,097 $ - $ - $2,370,097
Construction in Progress 1,618,228 1,107,665 (1,069,454) 1,656,4393,988,325 1,107,665 (1,069,454) 4,026,536
Depreciable assets:
Land Improvements 2,383,401 7,603 - 2,391,004
Infrastructure 224,847 - - 224,847
Buildings and Improvements 89,947,849 6,443,873 - 96,391,722
Furniture and Equipment 12,089,310 1,598,980 (797,676) 12,890,614
Library Collection 1,340,031 19,436 - 1,359,467
Other Improvements 9,600 - - 9,600
Leasehold Improvements 121,295 - - 121,295
Other Assets 3,054,228 65,904 - 3,120,132109,170,561 8,135,796 (797,676) 116,508,681
Less accumulated depreciation and amortization: Land Improvements 1,155,302 159,147 - 1,314,449
Infrastructure 23,336 5,621 - 28,957
Buildings and Improvements 35,009,497 3,278,385 - 38,287,882
Furniture and Equipment 7,197,864 956,958 (790,066) 7,364,756
Library Collection 1,230,691 42,655 - 1,273,346
Other Improvements 3,264 384 - 3,648
Leasehold Improvements 121,295 - - 121,295
Other Assets 1,223,147 219,224 - 1,442,37145,964,396 4,662,374 (790,066) 49,836,704
Net Depreciable Assets 63,206,165 3,473,422 (7,610) 66,671,977
Net Capital Assets $67,194,490 $4,581,087 $(1,077,064) $70,698,513
Depreciation and amortization expense for the year ended June 30, 2016 was $4,662,374. Projects were completed during the year resulting in $1,069,454 being reclassified from Construction in Progress.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 16: CAPITAL ASSET ACTIVITY (CONTINUED)
June 30, 2014 June 30, 2015 Balance Additions Retirements Balance
Non-depreciable assets: Land $2,360,035 $ 10,062 $ - $2,370,097
Construction in Progress 18,923,210 1,618,228 (18,923,210) 1,618,22821,283,245 1,628,290 (18,923,210) 3,988,325
Depreciable assets:
Land Improvements 2,383,401 - - 2,383,401
Infrastructure 203,915 20,932 - 224,847
Buildings and Improvements 65,916,193 24,031,656 - 89,947,849
Furniture and Equipment 9,587,593 2,899,494 (397,777) 12,089,310
Library Collection 1,322,367 17,664 - 1,340,031
Other Improvements 9,600 - - 9,600
Leasehold Improvements 121,295 - - 121,295
Other Assets 3,100,111 9,317 (55,200) 3,054,22882,644,475 26,979,063 (452,977) 109,170,561
Less accumulated depreciation and amortization: Land Improvements 996,409 158,893 - 1,155,302
Infrastructure 17,976 5,360 - 23,336
Buildings and Improvements 32,277,325 2,732,172 - 35,009,497
Furniture and Equipment 6,830,321 765,320 (397,777) 7,197,864
Library Collection 1,177,021 53,670 - 1,230,691
Other Improvements 2,880 384 - 3,264
Leasehold Improvements 121,295 - - 121,295
Other Assets 1,047,744 230,603 (55,200) 1,223,14742,470,971 3,946,402 (452,977) 45,964,396
Net Depreciable Assets 40,173,504 23,032,661 - 63,206,165
Net Capital Assets $61,456,749 $24,660,951 $(18,923,210) $67,194,490
Depreciation expense for the year ended June 30, 2015 was $3,946,402. Projects were completed during the year resulting in $18,923,210 being reclassified from Construction in Progress.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 17: CAPITAL IMPROVEMENT PROGRAM At June 30, 2016, the status of bond related capital improvement projects was: Budget Expended FY15 Chapter 12 – Atlantic County $ 3,200,000 $ 88,597 FY14 Chapter 12 – Atlantic County 4,200,000 380,967 FY13 Chapter 12 – Atlantic County 1,500,000 826,915 FY12 Chapter 12 – Atlantic County 8,500,000 4,185,610 FY10 Chapter 12 – Atlantic County 2,352,750 2,067,442 FY08 Chapter 12 – Atlantic County 9,009,000 8,020,884 FY07 Chapter 12 – Atlantic County 6,244,000 5,780,017 The bond related capital improvement project expenditures have been reflected in the accompanying financial statements. Reimbursements from the County and the State occur as capital expenditures are incurred and are recorded by the College in accordance with the terms of the agreements. NOTE 18: COMMITMENTS AND CONTINGENCIES Operating Leases The College leases copiers, and facilities under long-term operating leases. Rental expenditures in fiscal years 2016 and 2015 under these leases amounted to $54,245 and $58,243, respectively. Aggregate approximate future minimum rental payments under non-cancelable operating leases are as follows: Year Ending Rental June 30 Payment
2017 $ 26,940 2018 23,534 2019 6,590 2020 1,392 2021 431
Capital Leases There are no future minimum lease payments under capital leases.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 18: COMMITMENTS AND CONTINGENCIES (CONTINUED) Lease Purchase The College has entered into a lease agreement with the New Jersey Educational Facilities Authority for the lease-purchase of equipment approved by the State Board of Higher Education. The total approved project amount is $803,542. The College will pay to the Authority 25% of the principal and interest on the bonds to be issued to finance equipment purchases. Lease payments to the Authority for the fiscal years ended June 30, 2016 and 2015 totaled $25,003 and $24,985, respectively. The title to the equipment will pass to the College upon final payment of the lease obligation. Approximate future minimum lease payments are:
June 30 Payment
2017 25,005$ 2018 25,006 2019 25,005 2020 24,999 2021 24,988
Solar Site Lease and Power Purchase Agreement The College entered into a solar site lease agreement and power purchase agreement with Energenic, LLC, on February 26, 2013. The College has no capital investment, but will be assured of a predictable cost of energy over the 15 year term of the lease. Solar arrays were substantially complete in October, 2013 on the Mays Landing and Cape May County campuses. Rutgers University Ground Lease The College has entered into a 50 year ground lease with Rutgers University. Rutgers completed construction of an academic building on the College’s Mays Landing campus which opened for classes in September, 2012. The tenant shall pay the college an annual student use fee, adjusted annually. The student use fees for the fiscal years ended June 30, 2016 and 2015 were $22,509 and $26,885, respectively. Encumbrances The College has encumbrances representing outstanding purchase orders and other commitments with various vendors for materials and services not received as of June 30, 2016 and 2015 as follows: 2016 2015 Current unrestricted $ 212,683 $ 87,096 Not included in the above schedule are commitments of $317,637 and $7,270 for June 30, 2016 and 2015 to be offset with current restricted funds, and capital projects commitments of $13,427,711 and $6,670,061 to be offset with state Chapter 12 and Building our Future Bond Act and local CRDA and county match funds. Except as reported as allocated fund balances on the balance sheet, these commitments are not reflected on the accompanying financial statements.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 18: COMMITMENTS AND CONTINGENCIES (CONTINUED) Assignment To FY17 Current Operating Budget The Board of Trustees of the College has assigned a $1,124,894 fund balance transfer into its FY17 Current Operating Budget - Education and General Revenues. Restricted Maintenance Reserve The Jobs Education and Competitiveness Grant (JEC) which provided funding for the Cape May County Campus requires the college to retain a maintenance reserve of $971,300. When used, the reserve must be replenished over a five year period. In FY16, the College used $99,130 of the JEC reserve for a boiler replacement project at the Cape May County Campus. Grantor Agencies Amounts received or receivable from grantor agencies could be subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time, although the College expects such amount, if any, to be immaterial. NOTE 19: RISK MANAGEMENT
The College is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The College is self-insured for unemployment benefits compensation and participates in a self-insurance pool for workers’ compensation. Property and Liability Insurance Comprehensive commercial business insurance is purchased through a cooperative pool. Liability coverage limits are as follows: Property $138,948,173 General Liability 1,000,000 Automobile Liability 1,000,000 Crime / Employee Bond 1,000,000 Board of Ed Liability 5,000,000 Board of Ed Excess Liability/ Products 15,000,000 Umbrella, Auto and General 15,000,000 Workers’ Compensation Statutory Environmental 1,000,000/3,000,000 Flood & Earthquake 10,000,000 Boiler & Machinery 50,000,000 Data Security 1,000,000 Owned UAV and Non-owned Aircraft 2,000,000 Builder’s Risk 16,200,000
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 19: RISK MANAGEMENT (CONTINUED) New Jersey Unemployment Compensation Insurance The College has elected to fund its New Jersey Unemployment Compensation Insurance under the "Benefit Reimbursement Method". Under this plan, the College is required to reimburse the New Jersey Unemployment Trust fund for benefits paid to its former employees and charged to its account with the State. The College is billed quarterly for amounts due to the State. The following is a summary of College contributions, reimbursements to the State for benefits paid and the ending balance of the College's restricted net assets for the current and previous four fiscal years:
Fiscal Year College Employee Amount Ending Ended June 30, Contributions Contributions Reimbursed Balance
2016 $46,084 $46,268 ($92,352) $775,0002015 67,925 46,970 (114,895) 775,0002014 82,303 45,398 (102,701) 775,0002013 142,376 46,743 (189,119) 750,0002012 402,145 49,509 (190,907) 750,000
Workers’ Compensation Insurance Pool The College is a member of the New Jersey Community College Insurance Pool, a non-profit self-insurance pool created pursuant to the provisions of the New Jersey State Government Regulations Act, Chapter 204, P.L. 1985, to provide workers’ compensation insurance to its members. Membership in the insurance pool is limited to New Jersey community colleges. As of June 30, 2016, fourteen colleges participated in the insurance pool. Contributions to the Pool are payable in an annual premium and are based on actuarial assumptions determined by the Pool's actuary. Contributions to the Pool for the fiscal years ended June 30, 2016 and 2015 were $281,688 and $281,101, respectively. NOTE 20: LITIGATION The College is a defendant in several legal proceedings that are in various stages of litigation. It is believed that the outcome, or exposure to the College, from such litigation is either unknown or potential losses, if any, would not be material to the financial statements. NOTE 21: NJ COMMUNITY COLLEGE CONSORTIUM FOR WORKFORCE AND ECONOMIC DEVELOPMENT AGREEMENT The College paid a $100,000 fee during fiscal year 2004 to participate in the New Jersey County College Workforce Consortium. The participation agreement allows the College to share in royalties and training revenues as a subcontractor. The effective date of participation begins July 1, 2004, and extended through September 30, 2008. The participation fee was amortized over this period. Royalties earned for the fiscal years ended June 30, 2016 and 2015 were $28,216 and $40,353, respectively. There is no future amortization expense related to this cost.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 22: STATE OF NJ POST-RETIREMENT MEDICAL BENEFITS P.L. 1987, c.384 of P.L. 1990, c.6 required Public Employees’ Retirement System (“PERS”), to fund post-retirement medical benefits for those State employees who retire after accumulating 25 years of credited service or on a disability retirement. P.L. 2007, c.103 amended the law to eliminate the funding of postemployment medical benefits through the PERS. It created separate funds outside of the pension plans for the funding and payment of postemployment medical benefits for retired State employees and retired educational employees. As of June 30, 2015, there were 107,314 retirees receiving postemployment medical benefits, and the State contributed $1.25 billion on their behalf. The cost of these benefits is funded through contributions by the State in accordance with P.L. 1994, c.62. Funding of post-retirement medical premiums changed from a pre-funding basis to a pay-as-you-go basis beginning in fiscal year 1994. The State is also responsible for the cost attributable to P.L. 1992 c.126, which provides free health benefits to members of PERS and the Alternate Benefit Program who retire from a board of education or county college with 25 years of service. The State paid $214.1 million toward Chapter 126 benefits for 19,056 eligible retired members in fiscal year 2015. NOTE 23: IMPACT OF RECENTLY ISSUED ACCOUNTING PRINCIPLES Recently Issued and Adopted Accounting Pronouncements
For the fiscal year ended June 30, 2016, the College adopted GASB Statement No. 72, Fair Value Measurement and Application. This Statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement provides guidance for determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The adoption of this Statement had no impact on the basic financial statements of the College. The College adopted GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. The objective of this Statement is to improve the usefulness of information about pensions included in the general purpose external financial reports of state and local governments for making decisions and assessing accountability. The adoption of this Statement had no impact on the basic financial statements of the College.
The College adopted GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The objective of this Statement is to identify, in the context of the current governmental financial reporting environment, the hierarchy of generally accepted accounting principles (GAAP). The “GAAP hierarchy” consists of the sources of accounting principles used to prepare financial statements of state and local governmental entities in conformity with GAAP and the framework for selecting those principles. This Statement reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses the use of authoritative and nonauthoritative literature in the event that the accounting treatment for a transaction or other event is not specified within a source of authoritative GAAP. The adoption of this Statement had no impact on the basic financial statements of the College.
Lastly, the College adopted Statement No. 79, Certain External Investment Pools and Pool Participants. This Statement addresses accounting and financial reporting for certain external investment pools and pool participants. The Statement will become effective for the College in fiscal year 2017. The adoption of this Statement had no impact on the basic financial statements of the College.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 23: IMPACT OF RECENTLY ISSUED ACCOUNTING PRINCIPLES (CONTINUED) Recently Issued Accounting Pronouncements The GASB has issued the following Statements during the fiscal year ended June 30, 2016 which will become effective in future fiscal years as shown below:
Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The objective of this Statement is to improve the usefulness of information about postemployment benefits other than pensions (other postemployment benefits or OPEB) included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. The Statement will become effective for the College in fiscal year 2017. Management does not expect this Statement will have an impact on the basic financial statements of the College.
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by state and local governmental employers about financial support for OPEB that is provided by other entities. The Statement will become effective for the College in fiscal year 2018. Management has not yet determined the impact of this Statement on the basic financial statements of the College.
Statement No. 77, Tax Abatement Disclosures. This Statement requires governments that enter into tax abatement agreements to disclose certain information about the agreements. The Statement will become effective for the College in fiscal year 2017. Management does not expect this Statement will have an impact on the basic financial statements of the College. Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. The objective of this Statement is to address a practice issue regarding the scope and applicability of Statement No. 68, Accounting and Financial Reporting for Pensions. This issue is associated with pensions provided through certain multiple-employer defined benefit pension plans and to state or local governmental employers whose employees are provided with such pensions. The Statement will become effective for the College in fiscal year 2017. Management does not expect this Statement will have an impact on the basic financial statements of the College.
Statement No. 80, Blending Requirements for Certain Component Units an amendment of GASB Statement No. 14. This Statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does not apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are Component Units. The Statement will become effective for the College in fiscal year 2017. Management does not expect this Statement will have an impact on the basic financial statements of the College.
Statement No. 81, Irrevocable Split-Interest Agreements. The objective of this Statement is to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. The Statement will become effective for the College in fiscal year 2018. Management does not expect this Statement will have an impact on the basic financial statements of the College.
Page 56
ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 23: IMPACT OF RECENTLY ISSUED ACCOUNTING PRINCIPLES (CONTINUED) Recently Issued Accounting Pronouncements (Continued) Statement No. 82, Pension Issues and amendment of GASB Statements No. 67, No. 68, and No. 73. This Statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The Statement will become effective for the College in fiscal year 2017. Management does not expect this Statement will have a material impact on the basic financial statements of the College. NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Atlantic Cape Community College Foundation, Inc. was formed in 1978 as an independent nonprofit organization for the purpose of promoting and furthering higher education among the citizens of Atlantic and Cape May Counties, New Jersey and to provide physical facilities and services at Atlantic Cape Community College. The Foundation is considered a component unit of Atlantic Cape Community College for financial reporting purposes. Accordingly, the Foundation’s financial statements are included in the College’s basic financial statements. Financial Statement Presentation These financial statements have been prepared to focus on the Foundation as a whole and to present balances and transactions according to the existence or absence of donor-imposed restrictions. Net assets and changes therein are classified as follows: Unrestricted net assets- Net assets that are not subject to donor-imposed restrictions.
Temporarily restricted net assets-Net assets subject to donor-imposed stipulations that may or will be met by actions of the Foundation and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.
Permanently restricted net assets- Permanently restricted net assets represent the principal amount of gifts and bequests accepted with the donor stipulation that the principal be maintained intact in perpetuity until the occurrence of a specified event, or for a specified period, with only the income to be utilized.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES (CONTINUED) NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Donated Services A substantial number of unpaid volunteers have made significant contributions of their time to operating the various Foundation programs as well as to fundraising activities. No amounts have been recognized in the accompanying statement of activities because the criteria for recognition of such volunteer effort under generally accepted accounting principles has not been satisfied. Under this criterion, services are recognized if the services received create or enhance nonfinancial assets or they require specialized skills, they are provided by individuals possessing those skills, and they would typically need to be purchased if not provided by donation. However, the college employees provide services to the Foundation as described in Note H. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents For purposes of the statement of cash flows, the Foundation considers all short-term debt securities purchased with an original maturity of three months or less to be cash equivalents. Certain money market accounts intended for non-operating purposes are classified as investments. The Foundation maintains cash balances with a local bank, which at times throughout the year may exceed the FDIC insured limit. At June 30, 2016 and 2015, all balances were insured. Accounts and Pledges Receivable Accounts receivable represent amounts due for event participation fees, event sponsorships and other support that is collectible in a single installment. Pledges receivable represent contributions recognized when a donor makes an unconditional promise to give to the Foundation over multiple years. The Foundation does not accrue interest on unpaid accounts or pledges receivable. Multiple year pledges are recorded at the discounted present value of the future payments. Accounts and pledges receivable are stated at the amount management expects to collect from outstanding balances based on experience and on any unusual circumstances that may affect collectability. Management provides for probable uncollectible amounts through a valuation allowance and a charge to bad debt expense based on its assessment of the current status of individual accounts. At June 30, 2016 and 2015, the allowance for uncollectible accounts was $2,000 and $5,000, respectively. Balances that are still outstanding after management has used reasonable collection efforts are written off against the valuation allowance.
Page 58
ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES (CONTINUED) NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Investments Investments consist primarily of mutual funds, and are measured at fair value at the date of the financial statements. No alternative investments are included in the Foundation’s portfolio. Investment income or loss (including both realized and unrealized gains and losses, interest and dividends) is included in change in net assets. Investment accounts are maintained with stock brokerage firms, all of which are members of the Securities Investor Protection Corporation. The Foundation has adopted a total return investment policy in accordance with State law. The primary investment objective is to maximize long-term return through a combination of income and capital appreciation achieved in a prudent manner. The investment policy of the Foundation provides for certain allocation of assets between equity and fixed income instruments as well as cash and cash equivalents. The allocations are set to provide the highest probability of meeting or exceeding the return objectives at the lowest possible risk. The Foundation’s goal is to preserve the purchasing power of the endowed assets. At times, permanently restricted endowment funds of the Foundation may erode in value due to market conditions and fall below the original endowed amount. The Foundation’s Board’s policy is to restore these funds to the original endowed amount by enduring any market losses in their operating fund thus enabling the endowment to remain whole. The Foundation has adopted an investment spend policy. Unless otherwise directed by the donor at the time of the donation and agreed to by the Foundation, 80% of annual audited net interest (interest earned less fees paid) shall be distributed from the endowed funds as per donor designation or Foundation Board direction. The remaining 20% shall be reinvested to preserve the purchasing power of the corpus over time. Contributions from Trade Donations Harrah’s Atlantic City donated labor, set up and decor worth $31,256; Morey’s Pier donated Steel Pier admissions worth $21,888; Longport Media, The Press of AC, and SNJ Today donated online, in print, on-air, and radio promotion worth $10,000, $5,000, and $5,000 respectively; 44 local restaurants donated food worth $25,911; various other vendors and individuals donated their services and products worth $32,298 in exchange for advertising and/or tickets for the Restaurant Gala, Golf and Alumni events. The computation of the value of the contribution of these services and products represent the difference between market value of these services or products and the market value of the services given in exchange. For the year ended June 30, 2016, the information is summarized as follows:
Value of services received 131,353$ Value of tickets provided (19,600)
Net contribution to the Foundation 111,753$
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES (CONTINUED) NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Functional Allocation of Expenses The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of functional expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Income Taxes Atlantic Cape Community College Foundation, Inc. has been granted exemption from income taxation by the Internal Revenue Service under Section 501(c)(3) of the Internal Revenue Code and, therefore has made no provision for federal and state income taxes in the accompanying financial statements. In addition, the Foundation has been determined by the Internal Revenue Service not to be a “private foundation” within the meaning of Section 509(a) of the Internal Revenue Code, and qualifies for the charitable contribution deduction under section 170(b)(1)(a). There was no unrelated business income for the years ended June 30, 2016 and 2015. Management has evaluated uncertain tax positions taken by the Foundation. The financial statement effects of a tax position are recognized when the position is more likely than not, based on the technical merits, to be sustained upon examination by the Internal Revenue Service or other taxing authority. The Foundation has recognized no interest or penalties related to uncertain tax positions. The Foundation is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Management believes it is no longer subject to income tax examinations for years prior to 2013. Advertising
The Foundation expenses advertising production costs as they are incurred and advertising communication costs the first time the advertising takes place. Advertising expense for the years ended June 30, 2016 and 2015 was $22,220 and $26,268, respectively. Reclassifications Certain accounts in the prior-year financial statements have been reclassified for comparative purposes to conform with the presentation in the current-year financial statements. Date of Management’s Review of Subsequent Events
Management has evaluated subsequent events through December 13, 2016 the date which the financial statements were available to be issued.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES (CONTINUED) NOTE B - PLEDGES RECEIVABLE Pledges receivable at June 30, 2016 and 2015 were as follows:
2016 2015
Pledges receivable, net of allowance for doubtful accounts of $2,000 and $5,000
Due within one year 53,550$ 71,200$ Due in one to five years 30,690 54,507
Total pledges receivable 84,240 125,707
Less: unamortized discount 1,599 4,398
Net pledges receivable 82,641$ 121,309$
Capital campaign pledges have been discounted to present value utilizing a 3.25% prime interest rate for the years ended June 30, 2016 and 2015. NOTE C - FAIR VALUES OF FINANCIAL INSTRUMENTS The fair value measurement accounting literature establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority. Level 2 inputs consist of observable inputs other than quoted prices for identical assets. Level 3 inputs are unobservable and have the lowest priority. The Foundation uses appropriate valuation techniques based on the available inputs to measure the fair value of its investments. When available, the Foundation measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value. Level 1 inputs at June 30, 2016 and 2015 consist of mutual funds and money funds. In the absence of Level 1 inputs, Level 2 inputs are used when available to the Plan. Level 3 inputs were only used when Level 1 or Level 2 inputs were not available. The Company's policy is to recognize transfers in and transfers out as of the actual date of the event or change in circumstance that caused the transfer.
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES (CONTINUED) NOTE D - INVESTMENTS Investments at June 30, 2016 and 2015 consist of the following:
Fair Value Fair ValueUsing Quoted Using QuotedMarket Prices Market Pricesfor Identical for Identical
Assets AssetsCost (Level 1) Cost (Level 1)
Fixed income mutual funds 1,701,184$ 1,677,989$ 1,584,162$ 90,070$ Domestic equities mutual funds 1,510,965 1,598,168 1,536,286 1,655,608 International equities mutual funds 469,692 459,460 504,303 503,104 Money funds 109,104 109,104 90,400 1,680,416
3,790,945$ 3,844,721$ 3,715,151$ 3,929,198$
2016 2015
Investment income/(loss) for the years ended June 30, 2016 and 2015 consists of the following:
Unrestricted Temporarily Permanently
Interest and dividend income 51,907$ 108,194$ 17,024$ Investment fees (8,736) (23,745) (3,818)
Net interest and dividend income 43,171 84,449 13,206
Net realized losses on investments (6,635) (47,165) (10,942) Unrealized losses on investments (45,440) (97,659) (17,170)
Net realized and unrealized gains/(losses) (52,075) (144,824) (28,112)
(8,904)$ (60,375)$ (14,906)$
Restricted2016
Page 62
ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES (CONTINUED) NOTE D – INVESTMENTS (CONTINUED)
Unrestricted Temporarily Permanently
Interest and dividend income 54,786$ 104,535$ 14,796$ Investment fees (9,690) (23,151) (3,742)
Net interest and dividend income 45,096 81,384 11,054
Net realized gains on investments 10,603 111,658 12,942 Unrealized losses on investments (67,988) (169,912) (25,123)
Net realized and unrealized gains/(losses) (57,385) (58,254) (12,181)
(12,289)$ 23,130$ (1,127)$
2015Restricted
NOTE E - ENDOWMENTS The State of New Jersey recently adopted the Uniform Prudent Management of Institutional Funds Act (UPMIFA), replacing the 1975 Uniform Management of Institutional Funds Act (UMIFA). Management has interpreted the law as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations. As a result, the Foundation classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts made to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Foundation in a manner consistent with the law. The Foundation’s endowment had the following activity for the years ended June 30, 2016 and 2015:
Temporarily PermanentlyUnrestricted Restricted Restricted
Endowment net assets - June 30, 2014 -$ 271,640$ 2,559,186$
Contributions 230,917
Transfers (20,404)
Investment return: Interest and dividends 104,535 14,796 Investment fees (23,151) (3,742) Net losses on investments (58,254) (12,181)
Endowment net assets - June 30, 2015 -$ 274,366$ 2,788,976$
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES (CONTINUED) NOTE E – ENDOWMENTS (CONTINUED)
Temporarily PermanentlyUnrestricted Restricted Restricted
Endowment net assets - June 30, 2015 -$ 274,366$ 2,788,976$
Contributions 69,218 Transfers (110,077)
Investment return: Interest and dividends 108,194 17,024 Investment fees (23,745) (3,818) Net losses on investments (144,824) (28,112)
Endowment net assets - June 30, 2016 -$ 103,914$ 2,843,288$
From time-to-time, the fair value of assets associated with an individual donor restricted endowment fund may fall below the level that the donor or State law required the Foundation to retain as a fund of perpetual duration. The Foundation’s Board’s policy is to restore these funds to the original endowed amount by enduring any market losses in their unrestricted funds thus enabling the endowment to remain whole. NOTE F - TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets include monies raised by the Restaurant Gala, golf events, other fundraisers, and amounts specifically designated by donors which generally have been restricted for distributions to Atlantic Cape Community College for scholarships. Restaurant Gala monies are awarded to Culinary School students, and Golf Classic monies are awarded on a preferential basis first to Liberal Arts students and then to other college majors. Also included in temporarily restricted net assets is 90% of the income from one endowment to be used for healthcare scholarships and 100% income from other endowments to be awarded for various scholarships. As of June 30, 2016 and 2015, temporarily restricted net assets consisted of the following:
2016 2015
General scholarships 272,552$ 415,165$ Restaurant Gala/Raffle scholarships 139,096 98,400 Golf Event scholarships 21,652 16,850 Grants 30,000 15,000
463,300$ 545,415$
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES (CONTINUED) NOTE F – TEMPORARILY RESTRICTED NET ASSETS (CONTINUED) The Foundation’s net assets released from restrictions were for the following purposes:
2016 2015
Scholarships 423,585$ 303,211$ Program gifts to college 16,497 - Scholarship ceremony 1,277 595
441,359$ 303,806$
NOTE G - PERMANENTLY RESTRICTED NET ASSETS
Permanently restricted net assets consist of investments to be held in perpetuity. One endowment requires that 10% of the income be added to principal and the remainder be used to fund scholarships. According to the new investment policy, 20% of the income earned on endowment funds received after the effective date of May 1, 2010 is added to principal. All other endowments require that all income be used for scholarships. NOTE H - ATLANTIC CAPE COMMUNITY COLLEGE The following summarizes the Foundation’s financial transactions with Atlantic Cape Community College in 2016:
Due at New Due at6/30/2015 Support Payments 6/30/2016
New Support Promised Scholarships 384,176$ 423,585$ (339,049)$ 468,712$ Program gifts to college - 16,497 (5,934) 10,563 Reimbursements of administrative expenses 711 2,939 (4,000) (350)
384,887$ 443,021$ (348,983)$ 478,925$
In addition, the Foundation received fundraising and administrative support from the College from services provided by College employees, shown below, which have been included in the accompanying financial statements.
In-Kind In-KindServices Services
2016 2015
In Kind Services Fundraising support 139,640 141,521 Administrative support 82,768 83,549
222,408$ 225,070$
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES (CONTINUED) NOTE H - ATLANTIC CAPE COMMUNITY COLLEGE (CONTINUED) The Foundation is located on the campus of the Atlantic Cape Community College. College personnel and facilities are used at varying times during the years for which the College is nominally reimbursed. The value of these services and facilities are unable to be estimated at this time and are not included in the accompanying financial statements. NOTE I – FUNDRAISING Fundraising proceeds for the years ended June 30, 2016 and 2015 consisted of the following:
Restaurant Gala Golf Golf Other In KindGala Raffle Event Raffle Events Services Total
Gross receipts 305,425$ 27,665$ 39,340$ 6,408$ 41,881$ 139,640$ 560,359$
Expenses: Catering and meals 30,744 4,140 3,080 37,964 Wine and liquor 9,263 317 46 9,626 Entertainment 6,650 750 27,018 34,418 Room rental and setup 61,957 5,160 67,117 Décor 17,489 17,489 Donor recognition 274 274 Photos and videos 1,100 1,100 Gifts and souvenirs 1,761 3,043 2,308 7,112 Plates 2,375 2,375 Raffle prizes 14,145 4,878 19,023 Scholarship - Licenses and fees 50 50 Supplies 261 160 155 576
Direct expenses 131,650 14,145 13,570 4,878 32,881 - 197,124
In Kind Services 139,640 139,640 Advertising 20,570 1,500 22,070 Printing 8,102 385 155 8,642 Postage and delivery 3,072 311 3,383 Travel 419 189 257 865 Miscellaneous 25 24 49
Total expenses 163,838 14,145 15,979 4,878 33,293 139,640 371,773
Net proceeds 141,587$ 13,520$ 23,361$ 1,530$ 8,588$ -$ 188,586$
Net proceeds for general use (22,654)
Net proceeds to be used for scholarships and college support 165,932$
2016
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ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES (CONTINUED) NOTE I – FUNDRAISING (CONTINUED)
Restaurant Gala Golf Other In KindGala Raffle Event Events Services Total
Gross receipts 262,523$ 21,400$ 32,200$ 9,097$ 141,521$ 466,741$
Expenses:Catering and meals 24,175 2,962 27,137 Wine and liquor 15,664 430 16,094 Entertainment 7,000 6,510 13,510 Room rental and setup 66,462 66,462 Décor 14,770 14,770 Donor recognition 6,734 6,734 Gifts and souvenirs 943 4,308 5,251 Plates 2,065 2,065 Raffle prizes 12,255 12,255 Scholarship 1,310 1,310 Licenses and fees 442 4,460 80 4,982 Supplies 751 94 629 1,474
Direct expenses 132,272 12,255 12,254 15,263 - 172,044
In Kind Services 141,521 141,521 Advertising 22,450 318 3,500 26,268 Printing and reproduction 5,968 760 94 6,822 Postage and delivery 874 874 Travel 605 605 Miscellaneous 191 138 329
Total expenses 162,360 12,255 13,470 18,857 141,521 348,463
Net proceeds 100,163$ 9,145$ 18,730$ (9,760)$ -$ 118,278$
Net proceeds for general use (12,788)
Net proceeds to be used for scholarships and college support 105,490$
2015
NOTE J - RESTATEMENT OF PRIOR YEAR FINANCIAL STATEMENTS Prior year statement of activities and statement of functional expenses have been restated to reflect in-kind services income and in-kind services expense in the amount of $225,070 that represents salaries and benefits paid by the College to the Foundation employees during the fiscal year ended June 30, 2015.
Page 67
ATLANTIC CAPE COMMUNITY COLLEGE NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015
NOTE 24: DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURES (CONTINUED) NOTE J - RESTATEMENT OF PRIOR YEAR FINANCIAL STATEMENTS (CONTINUED) Prior year statement of activities has been restated for the 10% portion of net proceeds from fundraising events to have unrestricted use by the Foundation in the amount of $12,788. NOTE K - TRANSFER OF ENDOWED PORTION OF GOLF TOURNAMENT. A transfer in the amount of $40,857 between temporary and permanently restricted net assets was made for periods prior to year ended June 30, 2015. This amount represents cumulative net proceeds given by the main sponsor of the golf event which were recorded as temporarily restricted net assets. According to an agreement between the main sponsor of the golf tournament and the Foundation, the funds would be transferred into a named endowed fund, The Mollock Family Endowment for Scholarships. NOTE 25: SUBSEQUENT EVENTS Management has reviewed and evaluated all events and transactions that occurred between June 30, 2016 and December 22, 2016, the date that the financial statements were issued for possible disclosure and recognition in the financial statements, and no items have come to the attention of the college that would require disclosure.
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REQUIRED SUPPLEMENTARY INFORMATION
PART II
RSI-1
ATLANTIC CAPE COMMUNITY COLLEGE
2015 2014 2013
College's Proportion of the Net Pension Liability 0.1465382569% 0.1546096918% 0.1659589777%
College's Proportionate Share of the Net Pension Liability 32,894,902.00$ 28,947,163.00$ 31,718,058.00$
College's Covered Payroll (Plan Measurement Date) 10,353,340.00$ 11,023,844.00$ 11,789,404.00$
College's Proportionate Share of the Net PensionLiability as a Percentage of it's Covered Payroll 317.72% 262.59% 269.04%
Plan Fiduciary Net Position as a Percentage of the TotalPension Liability 47.93% 52.08% 48.72%
Note: This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, this presentation will only include information for those years for which information is available.
Measurement Date Ending June 30,
Required Supplementary InformationSchedule of the College's Proportionate Share of the Net Pension Liability
Public Employees' Retirement System (PERS)Last Three Fiscal Years
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RSI-2
ATLANTIC CAPE COMMUNITY COLLEGE
2016 2015 2014
Contractually Required Contribution 1,294,723.00$ 1,259,836.00$ 1,274,580.00$
Contributions in Relation to theContractually Required Contribution (1,294,723.00) (1,259,836.00) (1,274,580.00)
Contribution Deficiency (Excess) -$ -$ -$
College's Covered Payroll (Fiscal Year) 9,843,180.00$ 9,823,077.00$ 10,102,683.00$
Contributions as a Percentage ofCollege's Covered Payroll 13.15% 12.83% 12.62%
Note: This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, this presentation will only include information for those years for which information is available.
Fiscal Year Ended June 30,
Required Supplementary Information
Public Employees' Retirement System (PERS)Last Three Fiscal Years
Schedule of the College's Contributions
Page 70
ATLANTIC CAPE COMMUNITY COLLEGE
Public Employees' Retirement System (PERS)
Changes in Benefit Terms - None
Changes in Assumptions - The discount rate changed from 5.39% as of June 30, 2014, to 4.90% as of June 30, 2015,in accordance with Paragraph 44 of GASB Statement No. 67.
Notes to Required Supplementary Information - Part IIFor the Fiscal Year Ended June 30, 2016
Page 71
Supplemental Financial Information
ATLANTIC CAPE COMMUNITY COLLEGE
June 30, 2016
ATLANTIC CAPE COMMUNITY COLLEGE
SUPPLEMENTAL FINANCIAL INFORMATION
BALANCE SHEETS
JUNE 30, 2016 and 2015
2016 2015 2016 2015
ASSETS LIABILITIES AND FUND BALANCES
Current funds: Current funds:
Unrestricted: Unrestricted:
Cash and cash equivalents 13,548,839$ 13,004,771$ Accounts payable and other accruals 4,527,999$ 4,309,473$
Security deposit 1,309 1,309 Compensated absences 1,893,251 1,845,563
Restricted cash 4,009,508 4,300,029 Deferred revenue 2,215,319 2,302,880
Interfund balances - - Interfund balances 1,635,373 838,013
Accounts receivable: Student deposits and other liabilities 102,963 184,719
Students, less allowance for 10,374,905 9,480,648
uncollectible accounts of
$1,131,983 and $1,115,191 respectively 885,836 969,909
Federal, state, county and local 180,644 307,629 Fund balances:
Other 50,328 39,123 Allocated for student activities 90,534 112,776
Inventories, at cost 96,414 83,210 Allocated for JEC reserve 872,170 971,300
Prepaid expenses 537,817 538,338 Allocated for SUI reserve 775,000 775,000
Allocated for consent decree - 300,000
Allocated for encumbrances 212,682 87,096
Unallocated 6,985,404 7,517,498
8,935,790 9,763,670
Total unrestricted 19,310,695 19,244,318 Total unrestricted 19,310,695 19,244,318
Restricted: Restricted:
Accounts receivable Accounts payable and other accruals 836,758 975,737
Federal, state, county and local 1,207,226 1,548,868 Deferred revenue 77,736 132,703
Pledges receivable - 96,483 Interfund balances - 355,227
Other assets 50,100 9,000 914,494 1,463,667
Prepaid expenses 31,866 30,789
Interfund balances 336,671 - Fund balance 711,369 221,473
Total restricted 1,625,863 1,685,140 Total restricted 1,625,863 1,685,140
Total current funds 20,936,558$ 20,929,458$ Total current funds 20,936,558$ 20,929,458$
(CONTINUED)
Page 72
ATLANTIC CAPE COMMUNITY COLLEGE
SUPPLEMENTAL FINANCIAL INFORMATION
BALANCE SHEETS
JUNE 30, 2016 and 2015
2016 2015 2016 2015
ASSETS LIABILITIES AND FUND BALANCES
Endowment fund: Endowment fund:
Cash -$ -$ Fund balance - true endowment 825,765$ 817,160$
Interfund balances 825,765 817,160
Total endowment fund 825,765$ 817,160$ Total endowment fund 825,765$ 817,160$
Plant funds: Plant funds:
Unexpended: Unexpended:
Cash -$ -$ Accounts payable 1,018,758$ 873,604$
Security deposits 1,000 500 Current portion of long term debt 25,005 25,003
Accounts receivable Long term debt 149,985 174,990
Federal, state, county and local 1,605,232 1,909,695 Interfund balances - -
Interfund balances 472,937 376,080 Fund balances:
Restricted expendable 885,421 1,212,678
885,421 1,212,678
Total unexpended plant funds 2,079,169 2,286,275 Total unexpended plant funds 2,079,169 2,286,275
Investment in plant: Investment in plant:
Land 2,370,097 2,370,097 Fund balance 70,698,513 67,194,490
Construction in progress 1,656,439 1,618,229
Land improvements 1,076,555 1,228,099
Infrastructure 195,890 201,511
Buildings and improvements 58,103,840 54,938,352
Other improvements 5,952 6,336
Furniture and equipment 5,525,858 4,891,446
Library books and audio equipment 86,121 109,339
Other assets 1,677,761 1,831,081
Total investment in plant 70,698,513 67,194,490 Total investment in plant 70,698,513 67,194,490
Total plant funds 72,777,682$ 69,480,765$ Total plant funds 72,777,682$ 69,480,765$
Page 73
ATLANTIC CAPE COMMUNITY COLLEGE
SUPPLEMENTAL FINANCIAL INFORMATION
STATEMENT OF CHANGES IN FUND BALANCES
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Endowment
Fund
Investment
Unrestricted Restricted Unexpended in Plant
Revenues and other additions:
Educational and general revenues 38,619,158$ 390,163$
Sales and services auxiliary enterprises 140,656
Federal, state and county grants and contracts - restricted 19,061,231$
Private gifts, grants and contracts - restricted 401,750 8,569$
Chargeback minor capital 1,451
State pension contribution 624,119
Insurance proceeds 2,680
Investment and other income 78,122 3,022
Restricted appropriations 7,254,485
Funds for plant facilities 6,451,476$
Capital funded by operations 1,684,319
Proceeds - sale of assets 10,308
Total revenues and other additions 39,462,055 19,468,683 8,569 7,646,099 8,146,103
Expenditures and other deductions:
Educational and general expenditures 39,452,765 19,106,737
Auxiliary enterprises expenditures 162,898
Depreciation and amortization expense 4,662,374
Expansion of plant facilities 75,305 371,851 8,052,192
Total expenditures and other deductions 39,690,968 19,478,588 - 8,052,192 4,662,374
Transfers among funds:
Non-mandatory:
Plant fund (99,130) 99,130
Endowment fund (36) 36
Restricted fund (499,837) 499,837
Other transfers
Interfund transfers 17,917 (17,917)
Construction in progress (38,211) 38,211
Net transfers (598,967) 499,801 36 78,836 20,294
Net increase (decrease) (827,880) 489,896 8,605 (327,257) 3,504,023
Fund balance, beginning of year 9,763,670$ 221,473$ 817,160$ 1,212,678$ 67,194,490$
Fund balance, end of year 8,935,790$ 711,369$ 825,765$ 885,421$ 70,698,513$
Current Funds Plant Funds
Page 74
ATLANTIC CAPE COMMUNITY COLLEGE
SUPPLEMENTAL FINANCIAL INFORMATION
STATEMENT OF CURRENT FUND REVENUES, EXPENDITURES
AND OTHER CHANGES
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Unrestricted Restricted Total
Revenues:
Tuition and fees 23,549,566$ 23,549,566$
Appropriations:
State 6,126,540 6,126,540
Local 8,407,171 8,407,171
Chargebacks 94,387 94,387
Grants and contracts:
Federal, state and local 680,328 18,699,286$ 19,379,614
Private gifts, grants and contracts 401,750 401,750
Sales and services of educational departments 75,981 75,981
Sales and services auxiliary enterprises 140,656 140,656
Other sources 579,674 5,702 585,376
Total current revenues 39,654,303 19,106,738 58,761,041
Expenditures:
Educational and general:
Instruction 13,701,517 1,007,278 14,708,795
Public service 29,957 815,523 845,480
Academic support 4,367,580 611,845 4,979,425
Student services 4,646,032 553,596 5,199,628
Institutional support 9,986,231 72 9,986,303
Operation and maintenance of plant 6,721,447 24,736 6,746,183
Scholarship and other student aid 192,249 16,093,688 16,285,937
Total education and general expenditures 39,645,013 19,106,738 58,751,751
Auxiliary enterprises 162,898 162,898
Total expenditures 39,807,911 19,106,738 58,914,649
Transfers among funds and other additions:
Non-mandatory:
Plant fund (99,130) (99,130)
Endowment fund (36) (36)
Restricted fund (499,837) 499,837
Expansion of plant facilities (75,305) (371,851) (447,156)
Other
Excess of restricted revenues over
expenditures and transfers 361,946 361,946
Net transfers (674,272) 489,896 (184,376)
Net increase (decrease) in fund balances (827,880)$ 489,896$ (337,984)$
Page 75
Original Adjusted Actual Variance from
Budget Revised Budget Activity Original Budget
Current Unrestricted Income
General Education:
Credit Tuition 17,795,406$ 17,795,406$ 16,837,268$ (958,138)$
Continuing Education 1,250,000 1,250,000 1,066,620 (183,380)
Student Fees 5,877,607 5,877,607 5,453,429 (424,178)
Government Appropriations:
Atlantic County 6,762,717 6,762,717 6,762,717 -
Cape May County 1,644,454 1,644,454 1,644,454 -
State of New Jersey 5,550,000 5,550,000 5,502,421 (47,579)
Chargeback 119,696 119,696 94,387 (25,309)
Other Source (includes Investment Income, Bookstore
and Vending Commissions, Rents, Conferencing, 650,000 650,000 1,335,984 685,984
Total Education and General Income 39,649,880 39,649,880 38,697,280 (952,600)
ABP Reimbursement 600,000 600,000 624,119 24,119
Adjusted Education and General Income 40,249,880 40,249,880 39,321,399 (928,481)
Current Unrestricted Expenses
Instructional 14,134,346 14,121,459 13,709,139 (425,207)
Public Service 107,917 49,326 29,957 (77,960)
Academic Support 4,754,481 4,644,501 4,420,263 (334,218)
Student Services 4,730,221 4,756,361 4,646,032 (84,189)
Institutional Support 10,293,596 10,418,224 9,986,231 (307,365)
Plant Operations and Maintenance 7,064,439 7,182,225 6,736,448 (327,991)
Total Education and General Expenditures 41,085,000 41,172,096 39,528,070 (1,556,930)
Education and General Operating Margin (835,120)$ (922,216)$ (206,671) 628,449$
**
Non-Mandatory Transfers
From Current Restricted funds for Beacons professor 163
To Plant Fund Board Resolution #19 JEC Reserve Cape May Boiler (99,130)
To Restricted Fund Board Resolution #69 Consent Decree (500,000)
Auxiliary Enterprises (22,242)
Adjusted Operating Margin (827,880)$
**Note: Mandatory and non-mandatory transfers requiring use of funds from the current unrestricted fund
balance are recorded as additions or deductions from the current year operations in the above schedule.
ATLANTIC CAPE COMMUNITY COLLEGE
SUPPLEMENTAL FINANCIAL INFORMATION
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
BUDGET COMPARISON TO ACTUAL
Page 76
Current unrestricted fund:
Educational and general:
Instruction $9,982,859
Public service 407
Academic support 2,810,434
Student services 2,742,576
Institutional support 5,086,611
Operations and maintenance of plant 2,643,496
Total educational and general expenditures 23,266,383
Auxiliary enterprises 600
Total unrestricted salary expenditures 23,266,983
Restricted funds salary expenditures 1,642,160
Capital projects salary expenditures 72,340
Subtotal 24,981,483
Federal college work study program
included in Restricted funds salary expenditures (175,678)
Total salary expenditures $24,805,805
* This schedule presents wages only. Fringe benefits are not included.
ATLANTIC CAPE COMMUNITY COLLEGESUPPLEMENTAL FINANCIAL INFORMATION
SALARY EXPENDITURESFOR THE FISCAL YEAR ENDED JUNE 30, 2016
Page 77
SINGLE AUDIT SECTION
ATLANTIC CAPE COMMUNITY COLLEGE
June 30, 2016
The Following single audit financial information is provided in accordance with the
Title 2 U.S. Code of Federal Regulations Part 200 and New Jersey OMB Circular 15-08
REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND REPORT ON INTERNAL CONTROLOVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND
STATE OF NEW JERSEY CIRCULAR 15-08-OMB
INDEPENDENT AUDITORS’ REPORT
Board of TrusteesAtlantic Cape Community CollegeMays Landing, New Jersey 08330
Report on Compliance for Each Major Federal and State Program
We have audited Atlantic Cape Community College’s (the “College”) compliance with the types of compliance requirements described in the OMB Compliance Supplement and the New Jersey State Grant Compliance Supplement that could have a direct and material effect on each of the College’s major federal and state programs for the fiscal year ended June 30, 2016. The College's major federal and state programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs.
Management’s Responsibility
Management is responsible for compliance with federal and state statutes, regulations, and the terms and conditions of its federal and state awards applicable to its federal and state programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the College's major federal and state programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Those standards, the Uniform Guidance, and State of New Jersey Circular 15-08-OMB, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal or state program occurred. An audit includes examining, on a test basis, evidence about the College’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal and state program. However, our audit does not provide a legal determination of the College's compliance.
Opinion on Each Major Federal and State Program
In our opinion, Atlantic Cape Community College complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal and state programs for the fiscal year ended June 30, 2016.
Page 78
Report on Internal Control Over Compliance
Management of Atlantic Cape Community College is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the College's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal or state program to determine theauditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal or state program and to test and report on internal control over compliance in accordance with the Uniform Guidance and State of New Jersey Circular 15-08-OMB, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the College’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal or state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal or state program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal or state program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might bematerial weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and State of New Jersey Circular 15-08-OMB. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,
BOWMAN & COMPANY LLPCertified Public Accountants& Consultants
Woodbury, New JerseyDecember 22, 2016
Page 79
AWARD FY16 AMOUNT FY16 FY16 CUMULATIVE DUE TO
CFDA GRANT ID GRANT AUTHOR- CASH RECEIVED RETURN TO GRANT PASS-THROUGH GRANT ACCOUNTS DEFERRED GRANTOR AT
NUMBER NUMBER PERIOD IZATIONS RECEIVED TO DATE GRANTOR EXPENDITURES TO SUBRECIPIENTS EXPENDITURES RECEIVABLE REVENUE 6/30/2016
U.S. DEPARTMENT OF EDUCATION: (DIRECT FUNDING) Student Financial Aid Cluster: Federal Pell Grant Program- FY16 Authorization 84.063 P063P151803 7/1/15-8/31/16 13,194,785$ 12,713,914$ 12,713,914$ (13,647)$ 13,194,785$ 13,194,785$ 494,518$ Federal Pell Grant Program- FY16 ACA 84.063 P063Q151803 7/1/15-8/31/16 20,015 16,470 16,470 20,015 20,015 3,545 Federal Pell Grant Program- FY15 Authorization 84.063 P063P141803 7/1/14-8/31/15 14,682,514 655,604 14,715,993 (33,371) 14,682,514 108$ Federal Pell Grant Program- FY15 ACA 84.063 P063Q141803 7/1/14-8/31/15 22,445 4,115 22,415 4,145 22,445 30 Federal Pell Grant Program- FY14 Authorization 84.063 P063P131803 7/1/13-8/31/14 15,264,755 60 15,264,755 60 15,264,755
13,390,163 42,733,547 (47,018) 13,219,005 43,184,514 498,093 108
Federal Supplemental Educational Opportunity Grants - FY16 84.007 P007A152529 7/1/15-8/31/16 186,959 143,400 143,400 (1,000) 182,244 182,244 39,844 Federal Supplemental Educational Opportunity Grants - FY15 84.007 P007A142529 7/1/14-8/31/15 244,617 20,239 240,639 240,639
163,639 384,039 (1,000) 182,244 422,883 39,844
Federal Work-Study Program - FY16 84.033 P033A152529 7/1/15-6/30/16 184,105 175,678 175,678 175,678 175,678 Federal Work-Study Program - FY15 84.033 P033A142529 7/1/14-6/30/15 219,810 1,054 223,788 223,788
176,732 399,466 175,678 399,466
Federal Direct Student Loans - Subsidized 84.268 N/A 7/1/15-8/31/16 3,456,806 3,456,806 3,456,806 3,456,806 3,456,806 Federal Direct Student Loans - Unsubsidized 84.268 N/A 7/1/15-8/31/16 2,943,132 2,943,132 2,943,132 2,943,132 2,943,132 Federal Direct Student Loans - PLUS 84.268 N/A 7/1/15-8/31/16 203,906 203,906 203,906 203,906 203,906
6,603,844 6,603,844 6,603,844 6,603,844
Total Student Financial Aid Cluster 20,334,378 50,120,896 (48,018) 20,180,771 50,610,707 537,937 108
Student Support Services - FY16 84.042 P042A0101092 9/1/15-8/31/16 292,340 213,412 213,412 229,623 229,623 16,211 Student Support Services - FY15 84.042 P042A0101092 9/1/14-8/31/15 292,340 57,194 306,056 49,197 306,056
270,606 519,468 278,820 535,679 16,211
(PASS THROUGH NEW JERSEY DEPARTMENT OF EDUCATION) Vocation Education - Basic Grants to States - FY16 84.048 PSFS017101 7/1/15-6/30/16 484,521 233,046 233,046 482,544 482,544 249,498 Vocation Education - Basic Grants to States - FY15 84.048 PSFS017101 7/1/14-6/30/15 671,643 256,262 598,629 598,629
489,308 831,675 482,544 1,081,173 249,498
NJ Gear Up State Project Grant Program - FY16 84.334 16YR5-809170-0007 9/26/15-9/25/16 284,200 200,650 200,650 174,212 174,212 26,438$ NJ Gear Up State Project Grant Program - FY15 84.334 15YR4-809170-0007 9/26/14-9/25/15 284,200 267,490 (25,225) 98,035 242,265 College Bound/NJ GEAR UP State Project Capacity 84.334 16YR5-809170-0007 11/7/14-5/31/15 25,856 12,020 12,020 12,020
200,650 468,140 (25,225) 284,267 428,497 12,020 26,438
689,958 1,299,815 (25,225) 766,811 1,509,670 261,518 26,438
(PASS THROUGH NEW JERSEY COUNCIL OF COMMUNITY COLLEGES) College Readiness Now II 84.378A N/A 6/1/15-8/31/16 34,066 17,688 17,688 32,296 34,066 16,378
17,688 17,688 32,296 34,066 16,378
(PASS THROUGH NJ DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT) Adult Basic Education Programmatic - FY16 84.002 ABS-FY2016 7/1/15-6/30/16 672,900 537,422 537,422 (425) 656,423 361,277$ 656,423 119,426 Adult Basic Education Programmatic - FY15 84.002 ABS-FY2015-016 7/1/14-6/30/15 599,050 111,294 563,078 563,078
648,716 1,100,500 (425) 656,423 361,277 1,219,501 119,426
Total U.S. Department of Education 21,961,346 53,058,367 (73,668) 21,915,121 361,277 53,909,623 951,470 26,438 108
BALANCE JUNE 30, 2016
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
ATLANTIC CAPE COMMUNITY COLLEGE
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
(CONTINUED)
Page 80
AWARD FY16 AMOUNT FY16 FY16 CUMULATIVE DUE TO
CFDA GRANT ID GRANT AUTHOR- CASH RECEIVED RETURN TO GRANT PASS-THROUGH GRANT ACCOUNTS DEFERRED GRANTOR AT
NUMBER NUMBER PERIOD IZATIONS RECEIVED TO DATE GRANTOR EXPENDITURES TO SUBRECIPIENTS EXPENDITURES RECEIVABLE REVENUE 6/30/2016
BALANCE JUNE 30, 2016
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
ATLANTIC CAPE COMMUNITY COLLEGE
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
U.S. DEPARTMENT OF LABOR: (DIRECT FUNDING) Trade Adj. Assistance Community College & Career Training 17.245 TC250631360A34 10/1/13-9/30/17 1,027,886$ 502,844$ 661,394$ 524,936$ 746,918$ 85,524$
502,844 661,394 524,936 746,918 85,524
(PASS THROUGH NJ DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT)WIA Dislocated Worker Formula Grants Atlantic City Re-employment Project (Literacy) 17.277 N/A 12/15/14-12/14/16 991,500 953,200 976,700 (10,600)$ 721,500 966,100 Atlantic City Re-employment Project (ACRE) 17.277 N/A 12/15/14-12/14/15 200,000 54,500 110,800 1,200 110,800 (PASS THROUGH ATLANTIC CAPE MAY WORKFORCE INVESTMENT BOARD) Atlantic City Re-employment Project (Literacy) 17.277 N/A 12/1/15-6/30/16 3,100 3,100 3,100 3,100 3,100
1,010,800 1,090,600 (10,600) 725,800 1,080,000
(PASS THROUGH ATLANTIC CAPE MAY WORKFORCE INVESTMENT BOARD)WIA Youth Activities Cape May County Out of School Youth - FY16 17.259 K.15.273B 12/1/15-6/30/16 90,000 4,063 4,063 10,437 10,437 6,374 Atlantic County In School Youth - FY15 17.259 K.14.280A 11/1/14-8/31/15 187,401 85,054 96,168 (92) 60,331 96,076
89,117 100,231 (92) 70,768 106,513 6,374
Total U.S. Department of Labor 1,602,761 1,852,225 (10,692) 1,321,504 1,933,431 91,898
NATIONAL AERONAUTICS AND SPACE ADMINISTRATON (NASA): (PASS THROUGH RUTGERS UNIVERSITY) K-12 STEM Outreach in Atlantic County, NJ 43.001 5516 1/15/15-8/12/16 10,000 3,108 3,108 2,412 5,520 2,412
Total NASA 3,108 3,108 2,412 5,520 2,412
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES: (PASS THROUGH NEW JERSEY DEPARTMENT OF CHILDREN AND FAMILIES) Super Storm Sandy Displaced Homemaker Contract 93.095 SSBG Sandy - 1301NJS0S2 5/1/14-6/30/15 145,714 95,119 (71,052) 24,067
95,119 (71,052) 24,067
(PASS THROUGH KEAN UNIVERSITY PROFESSIONAL IMPACT NJ) Child Care Workforce Professional Development 93.575 2016G996005 5/1/15-9/23/16 373,064 46,610 46,610 81,626 81,626 35,016 & Data System 46,610 46,610 81,626 81,626 35,016
Total U.S. Department of Health and Human Services 46,610 141,729 (71,052) 81,626 105,693 35,016
Total Federal Aid 23,613,825$ 55,055,429$ (155,412)$ 23,320,663$ 361,277$ 55,954,267$ 1,080,796$ 26,438$ 108$
The accompanying Notes to the Financial Statements and Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance are an integral part of this schedule.
Page 81
AWARD FY16 AMOUNT FY16 FY16 CUMULATIVE DUE TO
GRANT AUTHORIZ- CASH RECEIVED RETURN TO GRANT GRANT ACCOUNTS GRANTOR AT
GRANT ID NUMBER PERIOD ATIONS RECEIVED TO DATE GRANTOR EXPENDITURES EXPENDITURES RECEIVABLE 6/30/2016
STUDENT FINANCIAL AID CLUSTER: NEW JERSEY OFFICE OF THE SECRETARY OF HIGHER EDUCATION:
Educational Opportunity Fund (EOF) Article III - FY16 100-074-2401-001 7/1/15-6/30/16 183,096$ 189,147$ 189,147$ (6,430)$ 182,717$ 182,717$
Educational Opportunity Fund (EOF) Article III - FY15 100-074-2401-001 7/1/14-6/30/15 212,104 153,308 (1,838) 151,470
Educational Opportunity Fund (EOF) Article III - Summer 100-074-2401-001 7/1/15-6/30/16 29,589 29,589 29,589 29,589 29,589
NEW JERSEY HIGHER EDUCATION STUDENT ASSISTANCE AUTHORITY:
Tuition Aid Grant (TAG) - FY16 100-074-2405-007 7/1/16-6/30/16 1,668,598 1,737,649 1,737,649 (67,240) 1,668,598 1,668,598 1,811$
Tuition Aid Grant (TAG) - FY15 100-074-2405-007 7/1/14-6/30/15 1,911,920 53 1,924,570 (14,364) 1,910,153 53
Governor's Urban Scholarship 100-074-2405-278 7/1/15-6/30/16 1,000 1,000 1,000 1,000 1,000
NJ Stars Program - FY16 100-074-2405-313 7/1/15-6/30/16 262,988 264,887 264,887 (3,571) 262,988 262,988 1,672$
NJ Stars Program - FY15 100-074-2405-313 7/1/14-6/30/15 325,215 1,820 325,215 325,215
New Jersey Class Loans - FY16 N/A 7/1/15-6/30/16 71,558 71,558 71,558 71,558 71,558
Total Student Financial Aid Cluster 2,295,703 4,696,923 (93,443) 2,216,450 4,603,288 1,672 1,864
NEW JERSEY OFFICE OF THE SECRETARY OF HIGHER EDUCATION:
Educational Opportunity Fund (EOF) Article IV - FY16 100-074-2401-002 7/1/15-6/30/16 197,809 197,809 197,809 197,809 197,809
College Bound - FY16 100-074-2400-012 9/26/15-6/30/16 50,000 50,000 50,000 37,683 37,683 12,317
College Bound - FY15 100-074-2400-012 9/26/14-6/30/15 50,000 50,000 (3,022) 46,978
College Bound - FY14 100-074-2400-012 9/26/13-6/30/14 50,000 50,000 (11,762) 38,238
Building our Future Bond Act 586-074-2400-019 3/1/14-Completion 2,676,394 63,258 126,388 138,104 231,112 104,724
Building our Future Bond Act 586-074-2400-020 3/1/14-Completion 2,984,039 2,780,768 2,841,952 2,489,744 2,984,038 142,086
Building our Future Bond Act 586-074-2400-021 3/1/14-Completion 680,062 480,967 496,099 449,014 512,307 16,208
Building our Future Bond Act 586-074-2400-022 3/1/14-Completion 500,620 386,690 398,108 354,413 416,979 18,871
3,711,683 3,862,547 3,431,275 4,144,436 281,889
3,959,492 4,210,356 (14,784) 3,666,767 4,465,144 281,889 12,317
NEW JERSEY DEPARTMENT OF TREASURY HIGHER EDUCATION ADMINISTRATION:
Operational Costs - County Colleges 100-082-2155-015 7/1/15-6/30/16 5,502,421 5,502,421 5,502,421 5,502,421 5,502,421
Employer Contributions - Alternate Benefits Program 100-082-2155-017 7/1/15-6/30/16 624,119 457,293 457,293 624,119 624,119 166,826
Employer Contributions - Alternate Benefits Program 100-082-2155-017 7/1/14-6/30/15 610,914 177,742 610,914 610,914
P.L. 1971, Chapter 12 Debt Service 100-082-2155-016 7/1/15-6/30/16 1,228,191 1,228,191 1,228,191
6,137,456 6,570,628 7,354,731 7,965,645 166,826
NEW JERSEY EDUCATIONAL FACILITIES AUTHORITY:
Higher Education Technology Infrastructure 100-082-2155-059 1/1/14 - 567,000 4,896 567,000 567,000
4,896 567,000 567,000
NEW JERSEY DEPARTMENT OF EDUCATION:
(PASS THROUGH RUTGERS UNIVERSITY)
Race to the Top, NJ - Early Learning Training Academy 14-100-034-5069-030-H300-361021B4 7/18/14-12/31/15 123,853 14,963 22,585 12,082 22,585
14,963 22,585 12,082 22,585
NEW JERSEY DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT:
Customized Training-Gas Industry S4J15207 780-062-4545-003 1/30/15-1/30/16 54,400 46,400 46,400 37,173 46,400
Customized Training-AtlantiCare S4J15208 780-062-4545-003 1/30/15-1/30/16 108,800 100,620 100,620 97,269 100,620
Customized Training-Financial Services S4J14079 780-062-4545-003 1/1/14-12/31/14 104,254 36,220 97,552 97,552
183,240 244,572 134,442 244,572
(PASS THROUGH ATLANTIC CAPE MAY WORKFORCE INVESTMENT BOARD)
English as a Second Language Program K.15.88 4/1/15-6/30/15 23,287 11,484 11,484 11,484
11,484 11,484 11,484
NEW JERSEY DEPARTMENT OF HEALTH AND HUMAN SERVICES: Director's Orientation N/A 2/2/16-12/30/16 18,138 5,263 5,263 5,263
5,263 5,263 5,263
(PASS THROUGH ATLANTIC CAPE MAY WORKFORCE INVESTMENT BOARD)
TANF/Adult Basic Education Program N/A 10/19/15-6/30/16 52,714 28,818 28,818 46,986 46,986 18,168
TANF/Front Desk Agent Training N/A 5/1/16-6/30/16 11,433 4,296 4,296 4,296
28,818 28,818 51,282 51,282 22,464
DEPARTMENT OF COMMUNITY AFFAIRS:
Code Official Tution Remission - FY16 100-022-8015-036 7/1/15-6/30/16 10,000 15,660 15,660 15,660
Code Official Tution Remission - FY15 100-022-8015-036 7/1/14-6/30/15 10,000 4,340 9,340 9,340
4,340 9,340 15,660 25,000 15,660
Total State Financial Assistance 12,640,392$ 16,361,706$ (108,227)$ 13,456,677$ 17,961,263$ 493,774$ 14,181$
ATLANTIC CAPE COMMUNITY COLLEGE
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED JUNE 30, 2016
The accompanying Notes to the Financial Statements and Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance are an integral part of this schedule.
BALANCE JUNE 30, 2016
Page 82
ATLANTIC CAPE COMMUNITY COLLEGE Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance
For the Fiscal Year Ended June 30, 2016 Note 1: BASIS OF PRESENTATION
The accompanying schedules of expenditures of federal awards and state financial assistance include federal and state award activity of Atlantic Cape Community College (hereafter referred to as the “College”). The College is defined in note 1 to the College's basic financial statements. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the schedules of expenditures of federal awards and state financial assistance. Because these schedules present only a selected portion of the operations of the College, it is not intended to and does not present the financial position and changes in operations of the College.
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedules of expenditures of federal awards and state financial assistance are presented using the accrual basis of accounting as described in note 1 to the College's basic financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The College has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.
Note 3: RELATIONSHIP TO FINANCIAL STATEMENTS Amounts reported in the accompanying schedules agree with amounts reported in the financial statements.
Note 4: OTHER STUDENT LOAN PROGRAMS The College is responsible only for the performance of certain administrative duties with respect to Federal Direct Student Loans and New Jersey Class Loans; accordingly, these loans balances are not included in the College’s basic financial statements. It is not practical to determine the balance of loans outstanding to students of the College under these programs as of June 30, 2016.
Note 5: SUBRECIPIENTS
Of the expenditures presented in the schedule of expenditures of federal awards, the College provided the following amounts to subrecipients during the fiscal year ended June 30, 2016: Program
CFDA Number
Amount
Adult Basic Skills 84.002 $361,277
Note 6: MAJOR PROGRAMS
Major programs are identified in the Summary of Auditor's Results section of the Schedule of Findings and Questioned Costs.
Page 83
Section 1- Summary of Auditor's Results
Financial Statements
Type of auditor's report issued
Internal control over financial reporting:
Material weakness(es) identified? yes X no
Significant deficiency(ies) identified? yes X none reported
Noncompliance material to financial statements noted? yes X no
Federal Awards
Internal control over major programs:
Material weakness(es) identified? yes X no
Significant deficiency(ies) identified? yes X none reported
Type of auditor's report issued on compliance for major programs
Any audit findings disclosed that are required to be reported in accordance
with Section 516 of Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance)? yes X no
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
Student Financial Aid Cluster:
Federal PELL Grant Program
Federal Supplemental Educational Opportunities Grants
Federal Work-Study Program
Federal Direct Student Loans
Dollar threshold used to determine Type A programs
Auditee qualified as low-risk auditee? X yes no
Unmodified
Unmodified
84.033
750,000$
84.063
84.007
84.268
17.277 WIA Dislocated Worker Formula Grant
(Continued)
ATLANTIC CAPE COMMUNITY COLLEGE
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2016
Page 84
Section 1- Summary of Auditor's Results (Cont'd)
State Financial Assistance
Internal control over major programs:
Material weakness(es) identified? yes X no
Significant deficiency(ies) identified? yes X none reported
Type of auditor's report issued on compliance for major programs
Any audit findings disclosed that are required to be reported in
accordance with New Jersey Circular 15-08-OMB? yes X no
Identification of major programs:
GMIS Number(s) Name of State Program
Student Financial Aid Cluster:
Educational Opportunities Fund (EOF) - Article III
Tuition Aid Grant
New Jersey Stars Program
Governor's Urban Scholarship
New Jersey Class Loans
Operational Costs - County Colleges
Dollar threshold used to determine Type A programs
Auditee qualified as low-risk auditee? X yes no
100-074-2405-313
100-074-2405-278
100-082-2155-015
Unknown
Unmodified
For the Fiscal Year Ended June 30, 2016
750,000$
100-074-2401-001
100-074-2405-007
ATLANTIC CAPE COMMUNITY COLLEGE
Schedule of Findings and Questioned Costs
Page 85
ATLANTIC CAPE COMMUNITY COLLEGESchedule of Findings and Questioned Costs
For the Fiscal Year Ended June 30, 2016
Section 2- Schedule of Financial Statement Findings
This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance related to the financial statements that are required to be reported in accordance with Government Auditing Standards.
No Current Year Findings
Section 3- Schedule of Federal Award Findings and Questioned Costs
This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance, including questioned costs, related to the audit of major Federal programs, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
No Current Year Findings
Section 4- Schedule of State Financial Assistance Findings and Questioned Costs
This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance, including questioned costs, related to the audit of major State programs, as required by State of New Jersey Circular 15-08-OMB.
No Current Year Findings
Page 86
ATLANTIC CAPE COMMUNITY COLLEGESummary Schedule of Prior Year Audit Findings
and Questioned Costs as Prepared by Management
This section identifies the status of prior year findings related to the financial statements and federal awards and state financial assistance that are required to be reported in accordance with Government Auditing Standards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and State of New Jersey Circular 15-08-OMB.
FINANCIAL STATEMENT FINDINGS
No Prior Year Findings
FEDERAL AWARDS
No Prior Year Findings
STATE FINANCIAL ASSISTANCE PROGRAMS
No Prior Year Findings
Page 87
STATISTICAL SECTION
(UNAUDITED)
Financial Trends Information
Financial trends information is intended to assist the user in understanding and assessing how the College’s financial position has changed over time. Please refer to
the following schedules for a historical view of the College’s financial performance.
ATLANTIC CAPE COMMUNITY COLLEGENET POSITION BY COMPONENT
LAST TEN FISCAL YEARS(UNAUDITED)
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Investment in Capital Assets 70,698,513$ 67,194,490$ 61,456,749$ 47,644,622$ 47,296,098$ 48,252,911$ 47,149,289$ 46,140,245$ 44,186,457$ 42,414,112$ Restricted - expendable 3,547,177 3,680,323 4,057,005 5,182,967 5,874,091 5,754,594 5,288,263 6,898,483 5,439,365 3,768,740 Restricted - nonexpendable 825,765 817,160 807,479 791,954 790,704 778,699 762,605 747,218 730,273 706,378 Unrestricted (23,603,807) (22,816,930) 7,212,590 5,494,227 4,635,171 4,351,237 5,426,741 3,561,662 7,082,888 6,588,538
Total Net Position 51,467,648$ 48,875,043$ 73,533,823$ 59,113,770$ 58,596,064$ 59,137,441$ 58,626,898$ 57,347,608$ 57,438,983$ 53,477,768$
Note: GASB Statement No. 68 was implemented for June 30, 2015 year end.
Source: College records
For the Year Ended June 30,
Page 88
June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30,
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Academic Space Net assignable square feet 167,629 167,629 117,214 117,214 117,214 117,214 117,214 117,214 117,214 113,448 Mays Landing 93,879 93,879 65,964 65,964 65,964 65,964 65,964 65,964 65,964 65,964 Worthington Atlantic City 53,182 53,182 30,682 30,682 30,682 30,682 30,682 30,682 30,682 26,916 Cape May County 20,568 20,568 20,568 20,568 20,568 20,568 20,568 20,568 20,568 20,568
Libraries 3 3 3 3 3 3 3 3 3 2 Number of volumes 76,315 75,927 75,574 74,999 74,657 79,516 80,538 80,538 80,237 80,320 Mays Landing 64,122 63,856 63,570 63,152 63,614 69,067 70,089 70,089 71,575 72,122 Worthington Atlantic City 4,192 4,130 4,090 4,012 3,378 2,878 2,878 2,878 1,646 1,266 Cape May County 8,001 7,941 7,914 7,835 7,665 7,571 7,571 7,571 7,016 6,932
Administrative and support buildings Net assignable square feet 181,959 181,959 181,959 181,959 181,959 181,959 181,959 181,959 181,959 180,427 Mays Landing 134,846 134,846 134,846 134,846 134,846 134,846 134,846 134,846 134,846 134,846 Worthington Atlantic City 22,662 22,662 22,662 22,662 22,662 22,662 22,662 22,662 22,662 21,130 Cape May County 24,451 24,451 24,451 24,451 24,451 24,451 24,451 24,451 24,451 24,451
Athletic facilities Practice and intramural fields 3 3 3 3 3 3 3 3 3 3 Gymnasiums 1 1 1 1 1 1 1 1 1 1
Transportation Vehicles 12 12 11 10 10 9 8 8 7 5 Parking capacity 1,882 1,882 1,892 1,897 1,897 1,897 1,897 1,897 1,897 1,874 Mays Landing 1,308 1,308 1,318 1,358 1,358 1,358 1,358 1,358 1,358 1,358 Worthington Atlantic City 256 256 256 238 238 238 238 238 238 215 Cape May County 318 318 318 301 301 301 301 301 301 301
Source: College records
ATLANTIC CAPE COMMUNITY COLLEGECAPITAL ASSET INFORMATION
For the Year Ended
LAST TEN FISCAL YEARS(UNAUDITED)
Page 89
$0
$10
$20
$30
$40
$50
$60
$70
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
Millions
Auxillary enterprises: Student activities
Other revenues
Capital gifts and grants
Capital appropriations
Other nonoperating revenues
Investment income
Gifts
County appropriations
State appropriations
Federal appropriations
Other operating revenues
Sales and services of educational departments
Nongovernmental grants and contracts
State and local grants and contracts
Federal grants and contracts
Student Tuition and Fees
ATLANTIC CAPE COMMUNITY COLLEGEREVENUES BY SOURCE
LAST TEN FISCAL YEARS(UNAUDITED)
Page 90
ATLANTIC CAPE COMMUNITY COLLEGEREVENUES BY SOURCELAST TEN FISCAL YEARS
(UNAUDITED)
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
Student Tuition and Fees 24,820,999$ 25,635,567$ 26,239,396$ 25,869,285$ 25,819,320$ 26,559,492$ 26,510,080$ 22,338,957$ 20,840,756$ 19,758,547$ Allowances (11,810,732) (12,905,396) (12,415,667) (12,043,355) (11,518,502) (12,476,637) (11,815,125) (8,735,556) (10,842,990) (9,634,460)
Student tuition and fees, net 13,010,267 12,730,171 13,823,729 13,825,930 14,300,818 14,082,855 14,694,955 13,603,401 9,997,766 10,124,087Federal grants and contracts 16,721,372 17,596,061 17,477,807 17,295,837 17,539,247 18,520,866 16,776,653 10,575,236 9,152,202 8,045,104State and local grants and contracts 2,896,765 2,818,259 3,703,562 3,293,112 3,334,461 3,948,980 5,302,411 4,842,530 3,696,579 4,420,029Nongovernmental grants and contracts 123,422 54,304 74,410 75,248 76,902 82,825 25,379 10,878 505,438 134,944Sales and services of educational departments 75,981 82,304 115,185 123,409 111,018 131,342 133,421 134,523 146,108 137,885Other operating revenues 501,552 567,518 540,627 680,313 791,503 735,688 815,726 812,451 1,034,751 885,310
Operating Revenues 33,329,359 33,848,617 35,735,320 35,293,849 36,153,949 37,502,556 37,748,545 29,979,019 24,532,844 23,747,359
Federal appropriations 0 0 0 0 0 0 327,435 0 0 0State appropriations 6,126,540 6,194,910 6,208,042 6,240,332 6,376,982 6,240,731 6,393,479 6,930,883 7,505,206 7,242,909County appropriations 8,408,622 8,409,196 8,574,993 8,559,082 8,872,749 8,699,273 8,752,743 8,347,762 8,348,413 7,786,701Gifts 401,750 350,384 362,823 473,413 360,539 297,590 300,939 324,590 287,944 322,469Investment income 81,144 77,724 68,168 74,320 103,768 146,716 242,073 353,106 743,830 771,530Other nonoperating revenues 55,200 133,210 402 4,547 67,378 0 0 0 0
Nonoperating revenues 15,018,056 15,087,414 15,347,236 15,347,549 15,718,585 15,451,688 16,016,669 15,956,341 16,885,393 16,123,609
Capital appropriations 7,254,485 8,502,101 15,476,336 2,686,732 1,457,962 2,045,672 1,956,866 1,695,202 3,222,746 3,009,368Capital gifts and grants 0 0 0 0 0 350,000 0 0 22,340 49,667Other revenues 12,988 22,115 25,825 208,830 53,931 3,667 0 0
Auxillary enterprises: Student activities 140,656 148,771 152,908 156,871 151,205 145,359 201,519 119,808 115,165 111,050
55,755,544$ 57,609,018$ 66,737,625$ 53,693,831$ 53,535,632$ 55,495,275$ 55,927,266$ 47,750,370$ 44,778,488$ 43,041,053$
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
Student Tuition and Fees 44.52% 44.50% 39.32% 48.18% 48.23% 47.86% 47.40% 46.78% 46.54% 45.91%Allowances -21.18% -22.40% -18.60% -22.43% -21.52% -22.48% -21.13% -18.29% -24.21% -22.38%
Student tuition and fees, net 23.33% 22.10% 20.71% 25.75% 26.71% 25.38% 26.28% 28.49% 22.33% 23.52%Federal grants and contracts 29.99% 30.54% 26.19% 32.21% 32.76% 33.37% 30.00% 22.15% 20.44% 18.69%State and local grants and contracts 5.20% 4.89% 5.55% 6.13% 6.23% 7.12% 9.48% 10.14% 8.26% 10.27%Nongovernmental grants and contracts 0.22% 0.09% 0.11% 0.14% 0.14% 0.15% 0.05% 0.02% 1.13% 0.31%Sales and services of educational departments 0.14% 0.14% 0.17% 0.23% 0.21% 0.24% 0.24% 0.28% 0.33% 0.32%Other operating revenues 0.90% 0.99% 0.81% 1.27% 1.48% 1.33% 1.46% 1.70% 2.31% 2.06%
Operating Revenues 59.78% 58.76% 53.55% 65.73% 67.53% 67.58% 67.50% 62.78% 54.79% 55.17%
Federal appropriations 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.59% 0.00% 0.00% 0.00%State appropriations 10.99% 10.75% 9.30% 11.62% 11.91% 11.25% 11.43% 14.51% 16.76% 16.83%County appropriations 15.08% 14.60% 12.85% 15.94% 16.57% 15.68% 15.65% 17.48% 18.64% 18.09%Gifts 0.72% 0.61% 0.54% 0.88% 0.67% 0.54% 0.54% 0.68% 0.64% 0.75%Investment income 0.15% 0.13% 0.10% 0.14% 0.19% 0.26% 0.43% 0.74% 1.66% 1.79%Other nonoperating revenues 0.00% 0.10% 0.20% 0.00% 0.01% 0.12% 0.00% 0.00% 0.00% 0.00%
Nonoperating revenues 26.94% 26.19% 23.00% 28.58% 29.36% 27.84% 28.64% 33.42% 37.71% 37.46%
Capital appropriations 13.01% 14.76% 23.19% 5.00% 2.72% 3.69% 3.50% 3.55% 7.20% 6.99%Capital gifts and grants 0.00% 0.00% 0.00% 0.00% 0.00% 0.63% 0.00% 0.00% 0.05% 0.12%Other revenues 0.02% 0.04% 0.04% 0.39% 0.10% 0.00% 0.01% 0.00% 0.00% 0.00%
Auxillary enterprises: Student activities 0.25% 0.26% 0.23% 0.29% 0.28% 0.26% 0.36% 0.25% 0.26% 0.26%
100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
(Excludes Additions to Permanent Endowments)
Source: Statement of Revenues, Expenses, and Changes in Net Position by Year
Page 91
ATLANTIC CAPE COMMUNITY COLLEGE REVENUE BY SOURCE
CURRENT UNRESTRICTED OPERATING FUNDLAST TEN FISCAL YEARS
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
Millions
Federal Support
Other sources
Investment Income
Chargebacks
County Support
State Support
Tuition and Fees
ATLANTIC CAPE COMMUNITY COLLEGEREVENUES BY SOURCE
CURRENT UNRESTRICTED OPERATING FUNDLAST TEN FISCAL YEARS
(UNAUDITED)
Page 92
ATLANTIC CAPE COMMUNITY COLLEGEREVENUES BY SOURCE
CURRENT UNRESTRICTED OPERATING FUNDLAST TEN FISCAL YEARS
(UNAUDITED)
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
Source:Credit Tuition and fees 22,290,697$ 22,695,549$ 23,806,989$ 23,655,952$ 23,583,454$ 24,094,514$ 24,114,811$ 20,552,466$ 18,882,710$ 17,673,888$ Non-Credit Programs 1,066,620 1,093,266 911,570 981,167 1,425,012 1,396,913 1,730,355 1,282,048 1,556,349 1,648,160Tuition and Fees 23,357,317 23,788,815 24,718,559 24,637,119 25,008,466 25,491,427 25,845,166 21,834,514 20,439,059 19,322,048Federal Support 327,435State Support 6,126,540 6,194,910 6,208,042 6,240,332 6,376,982 6,240,731 6,386,507 6,923,600 7,495,903 7,242,909County Support 8,407,171 8,407,171 8,572,942 8,556,807 8,869,741 8,695,901 8,749,715 8,344,984 8,344,985 7,782,983Chargebacks 94,387 121,428 117,892 126,161 168,919 176,978 162,821 155,926 202,496 215,287Investment Income 78,122 75,505 65,979 71,941 99,147 135,887 239,208 337,805 687,450 683,871Other sources 1,257,862 1,054,243 922,132 951,336 1,076,101 1,087,969 1,173,380 1,194,459 1,443,870 1,557,367TOTAL 39,321,399$ 39,642,072$ 40,605,546$ 40,583,696$ 41,599,356$ 41,828,893$ 42,884,232$ 38,791,288$ 38,613,763$ 36,804,465$
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
Source:Tuition and Fees 59.40% 60.01% 60.87% 60.71% 60.12% 60.94% 60.27% 56.29% 52.93% 52.50%Federal Support 0.76%State Support 15.58% 15.63% 15.29% 15.38% 15.33% 14.92% 14.89% 17.85% 19.41% 19.68%County Support 21.38% 21.21% 21.11% 21.08% 21.32% 20.79% 20.40% 21.51% 21.61% 21.15%Chargebacks 0.24% 0.31% 0.29% 0.31% 0.41% 0.42% 0.38% 0.40% 0.52% 0.58%Investment Income 0.20% 0.19% 0.16% 0.18% 0.24% 0.32% 0.56% 0.87% 1.78% 1.86%Other sources 3.20% 2.66% 2.27% 2.34% 2.59% 2.60% 2.74% 3.08% 3.74% 4.23%TOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Source: Schedules of Budget Comparison To Actual
Page 93
$‐
$10
$20
$30
$40
$50
$60
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
Millions
Student activities
Scholarship and student aid
Travel
Depreciation and amortization
Rent
Repairs and Maintenance
Insurance
Utilities and telephone
Supplies and other
Fringe Benefits
Salaries and Wages
ATLANTIC CAPE COMMUNITY COLLEGEEXPENDITURES BY NATURAL CLASSIFICATION
LAST TEN FISCAL YEARS(UNAUDITED)
Page 94
ATLANTIC CAPE COMMUNITY COLLEGE EXPENDITURES BY NATURAL CLASSIFICATION
LAST TEN FISCAL YEARS(UNAUDITED)
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
CompensationSalaries and Wages 24,805,205$ 24,392,423$ 24,363,547$ 25,182,142$ 25,932,657$ 26,042,735$ 25,748,467$ 24,043,673$ 22,546,608$ 21,931,607$ Fringe Benefits 9,877,457 9,238,260 9,220,697 9,396,685 9,444,598 9,251,407 9,185,974 8,178,840 7,415,550 7,231,177Total Compensation 34,682,662 33,630,683 33,584,244 34,578,827 35,377,255 35,294,142 34,934,441 32,222,513 29,962,158 29,162,784Other ExpendituresSupplies and other 5,539,948 5,002,350 5,259,621 4,727,285 4,551,334 5,260,160 5,812,193 5,082,017 4,929,781 4,773,432Utilities and telephone 1,633,870 1,633,998 1,562,308 1,512,753 1,631,160 1,715,466 1,562,032 1,652,343 1,687,197 1,668,754Insurance 725,052 704,949 689,991 612,880 509,798 445,557 448,801 389,917 414,480 399,145Repairs and Maintenance 148,320 222,468 83,864 200,638 512,892 492,257 606,210 781,201 445,893 305,710Rent 7,284 7,083 7,617 5,969 1,400 3,598 0 502 400 75,971Depreciation and amortization 4,662,374 3,946,402 3,401,444 3,344,763 3,230,751 3,100,293 2,969,975 2,682,852 2,524,332 2,420,424Travel 237,147 220,360 168,362 167,013 147,869 184,161 205,928 233,562 212,231 194,293
12,953,995 11,737,610 11,173,207 10,571,301 10,585,204 11,201,492 11,605,139 10,822,394 10,214,314 9,837,72947,636,657 45,368,293 44,757,451 45,150,128 45,962,459 46,495,634 46,539,580 43,044,907 40,176,472 39,000,513
Scholarship and student aid 5,262,088 6,210,634 7,290,880 7,578,634 8,257,089 8,405,427 8,049,883 4,732,931 4,104,374 474,777
Auxilliary enterprisesStudent activities 162,898 148,573 146,224 162,475 134,970 128,999 121,069 122,000 118,285 129,123
53,061,643$ 51,727,500$ 52,194,555$ 52,891,237$ 54,354,518$ 55,030,060$ 54,710,532$ 47,899,838$ 44,399,131$ 39,604,413$
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
Expenditures by Natural ClassificationCompensationSalaries and Wages 52.1% 53.8% 54.4% 55.8% 56.4% 56.0% 55.3% 55.9% 56.1% 56.2%Fringe Benefits 20.7% 20.4% 20.6% 20.8% 20.5% 19.9% 19.7% 19.0% 18.5% 18.5%Total Compensation 72.8% 74.1% 75.0% 76.6% 77.0% 75.9% 75.1% 74.9% 74.6% 74.8%Other ExpendituresSupplies and other 11.6% 11.0% 11.8% 10.5% 9.9% 11.3% 12.5% 11.8% 12.3% 12.2%Utilities and telephone 3.4% 3.6% 3.5% 3.4% 3.5% 3.7% 3.4% 3.8% 4.2% 4.3%Insurance 1.5% 1.6% 1.5% 1.4% 1.1% 1.0% 1.0% 0.9% 1.0% 1.0%Repairs and Maintenance 0.3% 0.5% 0.2% 0.4% 1.1% 1.1% 1.3% 1.8% 1.1% 0.8%Rent 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2%Depreciation and amortization 9.8% 8.7% 7.6% 7.4% 7.0% 6.7% 6.4% 6.2% 6.3% 6.2%Travel 0.5% 0.5% 0.4% 0.4% 0.3% 0.4% 0.4% 0.5% 0.5% 0.5%
27.2% 25.9% 25.0% 23.4% 23.0% 24.1% 24.9% 25.1% 25.4% 25.2%100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Source: Statement of Revenues, Expenses, and Changes in Net Position by Year
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$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
Millions
ATLANTIC CAPE COMMUNITY COLLEGEEXPENDITURES BY FUNCTION
CURRENT UNRESTRICTED OPERATING FUNDLAST TEN FISCAL YEARS
Transfers out to other funds
Public Service
Operation and maintenance of plant
Institutional support
Student services
Academic support
Instruction
Page 96
ATLANTIC CAPE COMMUNITY COLLEGEEXPENDITURES BY FUNCTION
CURRENT UNRESTRICTED OPERATING FUNDLAST TEN FISCAL YEARS
(UNAUDITED)
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
Functional category:Educational and general: Instruction Credit instruction 13,162,859$ 12,948,059$ 13,469,850$ 14,274,635$ 14,203,892$ 14,200,961$ 14,222,376$ 13,043,496$ 12,694,084$ 12,417,439$ Non-credit instruction 546,280 642,532 471,032 544,660 847,591 887,197 954,265 781,271 765,685 789,332 Total Instruction 13,709,139 13,590,591 13,940,882 14,819,295 15,051,483 15,088,157 15,176,641 13,824,767 13,459,769 13,206,771 Academic support 4,420,263 4,370,483 4,132,992 3,769,718 3,915,288 4,299,880 3,818,955 3,723,954 2,997,543 2,652,147 Student services 4,646,032 4,580,976 4,555,309 4,857,323 5,128,037 5,045,442 4,775,742 3,449,210 3,061,723 3,249,065 Institutional support 9,986,231 9,683,970 9,391,470 9,661,161 9,933,648 9,732,736 9,784,216 10,299,263 10,016,854 9,437,039 Operation and maintenance of plant 6,736,448 6,684,695 6,474,015 6,552,666 6,805,272 6,761,158 6,646,731 5,954,054 5,670,631 5,754,451 Public Service 29,957 79,997 195,853 53,523 49,552 45,521 34,322 154,099 152,379 129,948 Transfers out to other funds 599,130 0 235,235 12,909 154,308 1,685,395 519,071 3,550,044 2,589,169 467,915
TOTAL 40,127,200$ 38,990,712$ 38,925,756$ 39,726,595$ 41,037,588$ 42,658,289$ 40,755,678$ 40,955,391$ 37,948,068$ 34,897,336$
FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
Functional category:Educational and general: Instruction Credit instruction 32.80% 33.21% 34.60% 35.93% 34.61% 33.29% 34.90% 31.85% 33.45% 35.58% Non-credit instruction 1.36% 1.65% 1.21% 1.37% 2.07% 2.08% 2.34% 1.91% 2.02% 2.26% Total Instruction 34.16% 34.86% 35.81% 37.30% 36.68% 35.37% 37.24% 33.76% 35.47% 37.84% Academic support 11.02% 11.21% 10.62% 9.49% 9.54% 10.08% 9.37% 9.09% 7.90% 7.60% Student services 11.58% 11.75% 11.70% 12.23% 12.50% 11.83% 11.72% 8.42% 8.07% 9.31% Institutional support 24.89% 24.84% 24.13% 24.32% 24.21% 22.82% 24.01% 25.15% 26.40% 27.04% Operation and maintenance of plant 16.79% 17.14% 16.63% 16.49% 16.58% 15.85% 16.31% 14.54% 14.94% 16.49% Public Service 0.07% 0.21% 0.50% 0.13% 0.12% 0.11% 0.08% 0.38% 0.40% 0.37% Transfers out to other funds 1.49% 0.00% 0.60% 0.03% 0.38% 3.95% 1.27% 8.67% 6.82% 1.34%
TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Source: Schedules of Budget Comparison To Actual
Page 97
Revenue Capacity Information
Revenue capacity information is intended to assist the user in understanding and assessing the factors affecting the College’s ability to generate revenues. Please refer to the following schedules for a historical view of student credit hour enrollments which are the College's most significant revenue source.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY07
Student Credit Hours
Fiscal Year
ATLANTIC CAPE COMMUNITY COLLEGECREDIT HOUR ENROLLMENTS BY TUITION TYPE
LAST TEN FISCAL YEARS(UNAUDITED)
On‐line
Leased Curr
General
Dual Enrollment
Culinary
Page 98
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
FY16 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08 FY07
StudentCredit Hours
Fiscal Year
ATLANTIC CAPE COMMUNITY COLLEGECREDIT HOUR ENROLLMENTS BY COUNTY OF ORIGIN
LAST TEN FISCAL YEARS(UNAUDITED)
International
Leased Curriculum
Other
Cape May
Atlantic
Page 99
ATLANTIC CAPE COMMUNITY COLLEGEENROLLMENT DATA
LAST TEN FISCAL YEARS(UNAUDITED)
Fiscal Year
Ended Summer Fall Spring Total
6/30/2016 13,376 63,818 59,825 137,019
6/30/2015 13,547 68,932 65,274 147,753
6/30/2014 14,365 74,309 69,240 157,914
6/30/2013 14,782 75,838 72,255 162,875
6/30/2012 15,662 77,357 72,638 165,657
6/30/2011 16,582 78,597 76,672 171,851
6/30/2010 17,347 77,636 78,445 173,428
6/30/2009 15,462 70,833 70,646 156,941
6/30/2008 15,246 69,245 65,954 150,445
6/30/2007 15,072 67,159 63,288 145,519
Source: Annual Enrollment Reports
CREDIT HOUR ENROLLMENT BY SEMESTER
*Total student credit-hours not including non-credit equivalent credit hours
Page 100
ATLANTIC CAPE COMMUNITY COLLEGEENROLLMENT DATA
LAST TEN FISCAL YEARS(UNAUDITED)
Atlantic Cape May OtherDual Enroll/ Leased Curr Total
FY16 General 80,976 18,699 3,173 102,848
Culinary 1,094 272 1,361 2,727
On-line 21,428 6,754 2,559 30,741
Dual Enrollment 703 703
Total 103,498 25,725 7,093 703 137,019
FY15 General 89,812 20,864 3,100 113,776
Culinary 1,048 333 1,706 3,087
On-line 20,291 7,365 2,559 30,215
Dual Enrollment 675 675
Total 111,151 28,562 7,365 675 147,753
FY14 General 97,309 22,726 3,361 123,396
Culinary 1,504 438 2,314 4,256
On-line 20,115 7,009 2,541 29,665
Dual Enrollment 597 597
Total 118,928 30,173 8,216 597 157,914
FY13 General 100,697 23,652 2,879 127,228
Culinary 1,816 604 2,507 4,927
On-line 20,465 7,093 2,686 30,244
Dual Enrollment 476 476
Total 122,978 31,349 8,072 476 162,875
FY12 General 103,021 24,263 2,316 129,600
Culinary 2,105 580 2,682 5,367
On-line 20,859 7,035 2,406 30,300
Dual Enrollment 390 390
Total 125,985 31,878 7,404 390 165,657
FY11 General 104,821 27,112 2,623 134,556
Culinary 2,267 537 2,847 5,651
On-line 21,549 7,575 2,110 31,234
Dual Enrollment 410 410
Total 128,637 35,224 7,580 410 171,851
FY10 General 104,017 28,267 2,870 135,154
Culinary 2,311 658 3,006 5,975
On-line 21,651 7,883 2,408 31,942
Dual Enrollment 357 357
Total 127,979 36,808 8,284 357 173,428
FY09 General 92,442 26,731 2,721 121,894
Culinary 1,782 549 2,423 4,754
On-line 20,236 7,054 2,487 29,777
Dual Enrollment 516 516
Total 114,460 34,334 7,631 516 156,941
FY08 General 90,888 23,790 3,372 118,050
Culinary 1,592 614 2,783 4,989
On-line 18,188 5,731 2,696 26,615
Dual Enrollment 287 287
Leased Curr 504 504
Total 110,668 30,135 8,851 791 150,445
FY07 General 88,546 21,925 2,873 113,344
Culinary 1,680 499 3,327 5,506
On-line 16,553 5,218 3,350 25,121
Dual Enrollment 212 212 Leased Curr 1,336 1,336
Total 106,779 27,642 9,550 1,548 145,519
Source: County and Fiscal Year totals agree to audited Full-Time Equivalent Enrollment reports
CREDIT HOUR ENROLLMENT COMPARISON BY COUNTY OF ORIGIN
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ATLANTIC CAPE COMMUNITY COLLEGEENROLLMENT DATA
LAST TEN FISCAL YEARS(UNAUDITED)
Atlantic Cape May OtherDual Enroll/ International % of Total
FY16 General 78.24% 72.69% 44.73% 75.06%
Culinary 1.06% 1.06% 19.19% 1.99%
On-line 20.70% 26.25% 36.08% 22.44%
Dual Enrollment 100.00% 0.51%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
FY15 General 80.80% 73.05% 42.09% 77.00%
Culinary 0.94% 1.17% 23.16% 2.09%
On-line 18.26% 25.79% 34.75% 20.45%
Dual Enrollment 100.00% 0.46%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
FY14 General 81.82% 75.32% 40.91% 78.14%
Culinary 1.26% 1.45% 28.16% 2.70%
On-line 16.91% 23.23% 30.93% 18.79%
Dual Enrollment 100.00% 0.38%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
FY13 General 81.88% 75.45% 35.67% 78.11%
Culinary 1.48% 1.93% 31.06% 3.03%
On-line 16.64% 22.63% 33.28% 18.57%
Dual Enrollment 100.00% 0.29%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
FY12 General 81.77% 76.11% 31.28% 78.23%
Culinary 1.67% 1.82% 36.22% 3.24%
On-line 16.56% 22.07% 32.50% 18.29%
Dual Enrollment 100.00% 0.24%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
FY11 General 81.49% 76.97% 34.60% 78.30%
Culinary 1.76% 1.52% 37.56% 3.29%
On-line 16.75% 21.51% 27.84% 18.18%
Dual Enrollment 100.00% 0.24%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
FY10 General 81.28% 76.80% 34.65% 77.93%
Culinary 1.81% 1.79% 36.29% 3.45%
On-line 16.92% 21.42% 29.07% 18.42%
Dual Enrollment 100.00% 0.21%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
FY09 General 80.76% 77.86% 35.66% 77.67%
Culinary 1.56% 1.60% 31.75% 3.03%
On-line 17.68% 20.55% 32.59% 18.97%
Dual Enrollment 100.00% 0.33%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
FY08 General 82.13% 78.94% 38.10% 78.47%
Culinary 1.44% 2.04% 31.44% 3.32%
On-line 16.43% 19.02% 30.46% 17.69%
Dual Enrollment 36.28% 0.19%
Leased Curr 63.72% 0.34%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
FY07 General 82.92% 79.32% 30.08% 77.89%
Culinary 1.57% 1.81% 34.84% 3.78%
On-line 15.50% 18.88% 35.08% 17.26%
Dual Enrollment 13.70% 0.15%
Leased Curr 86.30% 0.92%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
Source: County and Fiscal Year totals agree to audited Full-Time Equivalent Enrollment reports
% CREDIT HOUR ENROLLMENT COMPARISON BY COUNTY OF ORIGIN
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Demographic and Economic Information
Demographic and economic information is intended (1) to assist the user in understanding the socioeconomic environment within which the College operates and (2) to provide information that facilitates comparisons of financial statement information over time and among Colleges. Please refer to the following exhibits for a historical view of the demographic and economic statistics and factors prevalent in the location in which the College operates.
SERVICE AREASERVICE AREA SERVICE AREA SERVICE AREA SERVICE AREA SECONDARY AND ELEMENTARY SERVICE AREA
YEAR POPULATION PERSONAL INCOME ($ths) PER CAPITA INCOME UNEMPLOYMENT % ENROLLMENT HIGH SCHOOL GRADUATES
2015 368,946 N/A N/A 9.8 56,610 3,9892014 370,553 $16,866,555 $45,517 10.8 58,132 4,1312013 372,016 $16,270,022 $43,735 12.0 58,062 4,3522012 371,726 $16,629,499 $44,736 13.5 58,361 4,2632011 370,939 $15,749,407 $42,458 12.8 57,655 4,3952010 371,916 $15,242,347 $40,983 12.6 57,385 4,1002009 367,803 $14,834,268 $40,332 11.9 59,047 4,2372010 366,519 $15,308,814 $41,768 7.3 60,702 4,1932007 366,298 $14,776,390 $40,340 6.1 61,498 4,2452006 366,867 $14,158,842 $38,594 6.0 62,868 4,046
Source: College records
Note: The College's service area is comprised on Atlantic and Cape May Counties, New Jersey
ATLANTIC CAPE COMMUNITY COLLEGEDEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Note: Secondary & Elementry Enrollments & High School Graduates are based on fiscal year, i.e., 2015 (07/01/2014-06/30/2015)
(UNAUDITED)
Page 103
COUNTY EMPLOYER NUMBER OF EMPLOYEES TYPE
CAPE MAY Woodbine Developmental Center 1400 PUBLICCAPE MAY Cape Regional Medical Center 1050 PRIVATECAPE MAY Acme Markets 1022 PRIVATECAPE MAY Wawa 649 PRIVATECAPE MAY Cold Spring Fish and Supply Co. 500 PRIVATECAPE MAY Walmart 277 PRIVATECAPE MAY Cape Counseling Services 253 PRIVATECAPE MAY Shop Rite 248 PRIVATECAPE MAY Shores at Wesley Manor 230 PRIVATECAPE MAY Home Depot 130 PRIVATECAPE MAY Verizon 125 PRIVATE
ATLANTIC AtlantiCare Health System 4992 PRIVATEATLANTIC Shore Medical Center 1587 PRIVATEATLANTIC Shop Rite 1076 PRIVATEATLANTIC Atlantic City Electric 1000 PRIVATEATLANTIC Wawa 915 PRIVATEATLANTIC Walmart 716 PRIVATEATLANTIC Acme Markets 597 PRIVATEATLANTIC Bacharach Institute of Rehabilitation 525 PRIVATEATLANTIC Atlantic City Linen 500 PRIVATEATLANTIC South Jersey Industries Inc. 455 PRIVATEATLANTIC Caring Inc. 372 PRIVATEATLANTIC Atlantic Medical Imaging 350 PRIVATEATLANTIC Home Depot 330 PRIVATEATLANTIC Bayada Nurses 305 PRIVATEATLANTIC Seaview-Richard Stockton College 300 PRIVATE
Source: College records
ATLANTIC CAPE COMMUNITY COLLEGEPRINCIPAL NON-CASINO EMPLOYERS, 2014
Service Area: Atlantic and Cape May Counties, New Jersey
LARGEST EMPLOYERS
(UNAUDITED)
Page 104
ATLANTIC CAPE COMMUNITY COLLEGEFULL-TIME COLLEGE STAFFING
LAST TEN FISCAL YEARS(UNAUDITED)
Fiscal Credit Hour TOTALYear Ended Enrollment FTE % Change Faculty Staff FULL-TIME % Change
(AUDITED)*
6/30/2016 137,019 4,567 -7.3% 80 245 325 -2.1%
6/30/2015 147,753 4,925 -6.4% 79 253 332 -1.8%
6/30/2014 157,914 5,264 -3.0% 82 256 338 -0.9%
6/30/2013 162,875 5,429 -1.7% 88 253 341 -6.8%
6/30/2012 165,657 5,522 -3.6% 89 277 366 -0.3%
6/30/2011 171,851 5,728 -0.9% 89 278 367 0.3%
6/30/2010 173,428 5,781 10.5% 87 279 366 0.5%
6/30/2009 156,941 5,231 4.3% 85 279 364 1.4%
6/30/2008 150,445 5,015 3.4% 84 275 359 0.0%
6/30/2007 145,519 4,851 2.0% 84 275 359 0.3%
* - includes Dual Enrollment Credits
Source: College records
CREDIT HOUR ENROLLMENT AND FULL TIME COLLEGE STAFFING
0
100
200
300
400
245 253 256 253 277 278 279 279 275 275
80 79 82 88 89 89 87 85 84 84
# of Full-timeEmployees
Fiscal Year Ended
Staff Faculty
Page 105