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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Financial Highlights

The Bottom Line:
The University had a $2.8 million net loss for the four months ending October 31, 2008. This is $2.8 million less than the FY08 equivalent period's net loss of $31 thousand. The difference is due to an increase in fringe benefits and loss on investments.

Balance Sheet Variances:

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

Investments:
The University had 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 $2.6 million.

Deferred revenue:
Research activity deferred revenue is  down $960 thousand.

Insurance and Benefits Reserves:
The University has booked its FY09 GASB 45 projected Annual Required Contribution (ARC) of $1.0 million. This is the second year of the GASB 45 (Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions) implementation.   The FY08 interim financial statements did not include the GASB 45 projected ARC and liability.  The FY08 ARC was $950 thousand.

Funds Due to Michigan Tech Fund:
Decrease represents MTU's payment to 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 6%. This is a function of both raises and additional employees.

Fringe benefits:   The FY09 Combined funds summary fringe benefits have increased (32%) which is greater than the increase in salaries (6%). Net health care costs, net of employee premiums, are up 24% 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.  Part of the increase is also due to the $1.0 million recognition of the GASB 45 ARC.