General Information

Since 1998 the most recent quarterly financial reports have been posted to this web site.  Although the report formats are not as "dressed up" as our annual audited financial statements, they fairly reflect the University's financial condition.  The format of these interim reports reflects the adoption of the Governmental Accounting Standards Board ("GASB") Statement No. 35 financial reporting.  Fund accounting reports are also provided for managerial review.

Since these are only unaudited interim financial statements, immaterial discrepancies may be included in these statements. However, these discrepancies have been noted and the appropriate corrections will be made in the subsequent month.

The University has adopted GASB 39 (inclusion of the Michigan Tech Fund (MTF) financial statements).  However, we are including MTF only on our year-end financial statements.  There is no inclusion of (MTF) activity in the MTU interim financial reporting.  If you would like to see the MTF interim reports, click here:  http://www.mtf.mtu.edu/trustee_site/financial.php

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Visit our Frequently Asked Questions  section.

Financial Highlights

The Bottom Line:
The University had a $961 thousand net loss for the eleven months ending May 31, 2008. This is $7.6 million less than the FY07 equivalent period's net income of $6.6 million. The difference is due to the recognition of one-time monies. Capital appropriations and Capital gifts (Capital revenues) are one-time non-operating revenues received for a specific purpose. The FY07 revenue was due to the $10 million general campus renovation appropration.

Balance Sheet Variances:

Accounts Receivable:
 For a detailed analysis see the Supporting Schedules  - Accounts receivable.

Investments:
The University has dollar-cost-averaged approximately $7 million dollars of R&I fund cash back into the equity markets. This was consistent with the University Senate Proposal:  http://www.admin.mtu.edu/usenate/propose/8-05.htm

With the market adjusting downard, investments have decreased $600 thousand.

Deferred revenue:
Research activity deferred revenue is up $828 thousand.

Insurance and Benefits Reserves:
The University has booked its GASB 45 projected Annual Required Contribution (ARC). This is the first year of the GASB 45 (Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions) implementation.

Capital Lease Obligations:
This increase represents the new, four-year, Dell Lease which was approved at the June 2007 Board of Control meeting.

Funds Due to Michigan Tech Fund:
Increase represents MTU's commitment to repay the Michigan Tech Fund for the monies advanced to acquire MTRI, our Ann Arbor research facility.

Income Statement Variances:

Natural Classification Reporting

Salaries and wages are up 8%. This is a function of both raises and additional employees. We have hired new employees as well as added 22 Michigan Tech Research Institute employees (October 2006).

Fringe benefits:   The FY08 Combined funds summary fringe benefits have increased (15%) which is greater than the increase in salaries (8%). Net health care costs, net of employee premiums, are up 16% a function of increased utilization, inflationary pressure, and an increased number of employees.  The University has redesigned its health care plans to better position itself to address future health care expenditures.

Supplies and Services:
This increase in expense is due to the increase of sponsored research activity.