1. Summary Operating Statements
For the Period
September 1, 2013 ‐ October 31, 2013
For the Meeting of the Board of Trustees ‐ November 21, 2013
for
Houston Community College System
&
Houston Community College Public Facility Corporation

2. Managements Discussion and Analysis
Thru October 31, 2013
Total revenues and expenditures by expense type for the Operating Fund for 2013‐2014 are reported on page one, behind
the tab Detailed Financial Statements. Highlights of financial activities year‐to‐date are as follows:
Revenues

State Appropriations received year to date totaled $16,595,742, 7.1% below last year. The reduction is namely due
to one‐time funding issued to community colleges for the previous biennium. Under Article IX, the state provided
this supplemental funding in the prior biennium of $1.4M per year. The state adopted a new funding formula during
the 83rd Legislative Session; 10% of appropriations will be based on student success points and must be earned.
However, for the first biennium, the state waived the use of the formula and will grant each community college full
funding. Total biennium funding was reduced by 1.5% compared to the previous biennium. Total appropriations
received are expected to be $69,148,935.

Ad Valorem Tax collections totaled $13,726 year‐to‐date. The tax rate for FY 2014 will remain the same as the prior
year tax rate at $0.097173. However, the proportion of tax revenue applied to operations will decrease this year due
to the increase in tax revenue applied to debt service. We project that the total tax revenue for the fiscal year will be
$101,478,107, which is a 5% decrease compared to the previous year.

Tuition and Fees net revenue year to date totaled $43,646,980 which is 0.7% lower than the same time last year. Fall
2013 enrollment shows a 1.3% decrease to‐date. We are projecting tuition and fees revenue to be $106,375,859.

Tuition & Fee‐Extended Learning receipts totaled $1,867,496 year to date, 7.6% below last year. Total tuition and
fees‐Extended Learning at fiscal year end are expected to be $6,565,665.
Total revenue collections, net of exemptions and waivers, totaled $62,685,141 year‐to‐date. Revenue, net of
exemptions & waivers, and transfer‐ins are expected to be $308,050,085 at fiscal year end.
Expenditures

Total Salaries are $29,847,187 year‐to‐date, 4.2% above the previous year, namely due to the 3% annual salary
increases. Total salaries at year end are expected to be $170,341,988.

Benefits costs totaled $3,771,344 year‐to‐date, 22.4% above last year. This increase is due namely to the reduction
in the state's contribution to TRS and ORP and an increase in health insurance premiums. Total benefits at fiscal year
end are expected to be $18,152,880.

Other Departmental expenses in the Auxiliary Fund total $1,732,332, year‐to‐date. Expenses of $1.6M are attributed
to Yaffe/Duetser & Dynamo Soccer for marketing/recruiting related expenses.

Athletic Field Project ‐ In April 2012, the Board approved approximately $4.1M in Auxiliary funds for six athletic
fields. This amount has been set aside from the Auxiliary Fund Balance.
Total operating fund expenditures year‐to‐date total $54,500,628. We are projecting expenditures to be
$308,050,085 at fiscal year end.
i

3. Managements Discussion and Analysis
Thru October 31, 2013

Budget Priorities funding allocated for the year are detailed below through October 31, 2013.
Contingency/Budget Priority Funding
Expense:
Budget
Position Management
$ 2,374,415
1
New Funding Requests
Increase in FT Faculty to Meet SACS Requirement
QEP Additional Funding
Investment in Retention and Completion
Faculty Compensation Committee Request
Police Staffing ($6.6M over 5 years)
Security Upgrades ($4M over 4 years)
Designated Fund Balance Transfer
Other
5,535,476
1,300,000
125,000
2,500,000
527,000
1,320,000
1,000,000
‐
49,500
Total Contingency/Budget Priorities
$
14,731,391
1
Items requested during the budget planning process for new funding (i.e. Equipment, personnel, adjunct faculty
funding, etc..)
ii

4. Operating Statement ‐ Unaudited Fund Balalnces (Across all Funds)
as of October 31, 2013
Funds
Unrestricted
Restricted
Auxiliary
1
Loan &
Endowments
Scholarship
Agency Unexpended Plant Retire of Debt
Invest in Plant
PFC
Grand Total
Fund Balance as of 9/1/2013 $ 90,782,747 $ 8,722,535 $ 9,422,619 $ 509,932 $ 705,617 $ (59,611) $ 3,178,982 $ 9,482,219 $ 224,314,173 $ (6,325,820) $ 340,733,392
2
Revenue 62,685,141 6,982,995 3,251,523 ‐ 37,709,888 10 1,107,271 2,235,088 ‐ 3,652 113,975,569
Expenses
Salaries
Employee Benefits
Supplies & General Exp
Travel
Marketing Costs
Rentals & Leases
Insurance/Risk Mgmt
Contracted Services
Utilities
3
Other Departmental Expenses
Instructional and Other Materials
Maintenance and Repair
6
Transfers In/Out
Debt
Capital Outlay
Depreciation
Scholarship Distribution
Total Expenses
Net of Revenue/Expenses
Fund Balance Entries
Debt Funded
Fund Balance as of 10/31/2013
29,847,187
3,771,344
1,116,075
133,045
179,464
403,316
6,479,231
2,418,108
964,404
119,390
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
36,201
7,974
‐
‐
‐
‐
‐
100,409
‐
‐
‐
‐
‐
‐
‐
‐
15,494
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
313,319 8,452 1,732,332 ‐
4 & 5
1,075,860
1,676,897
37,370
20,074
2,604
39,597
550
531,829
‐
‐
‐
‐
‐
‐
‐
2,054,103
2,173,193 5,121
38,886 ‐
236,686 98,472 2,656 ‐
‐
‐
30,845 ‐
‐
‐
29,098 ‐
‐
‐
‐
‐
2,217,199
397,757
4,938,856
17,133
1,509,267
‐
‐
‐
‐
‐
‐
‐
9,505,979
‐
‐
‐
‐
3,178,393
‐
615,397
‐
‐
0
4,301,151
11,093,811
3,178,393
54,500,628 3,496,824 3,750,174 ‐
(1,270,235)
‐
‐
‐
38,788,387
37,668,387
‐
9,679,660
15,494
3,178,393
615,397 74,116,570
8,184,513 3,486,171 (498,650) ‐
41,502 10 (8,572,390) 2,219,594 (3,178,393) (611,745) 1,070,611
‐
‐
‐
‐
1,335,532
250,313
117,124
14,627
21,333
10,350
‐
114,822
33,633
‐
‐
78,565
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
(7,328)
(3,668,621)
3,668,621
‐
‐
7,249,921
1,532,808
32,414,170
5,706,528
1,270,570
167,745
203,401
453,263
6,479,781
3,180,662
998,037
8,775,401
‐
$
98,967,260 $
12,201,377 $ 8,923,968 $ 509,932 $
747,118 $ (59,601) $ 1,856,514 $ 11,701,814 $ 222,668,588 $
(6,937,566) $ 350,579,405
1
Inculdes Foundation expenses of approx. $1.5M (since inception) supplemental funding approved by the Board.
2
Revenue in Unrestricted Fund is shown net of Exemptions/Waivers, namely $2.6M for Dept. of Corrections & Dual Credit waivers.
3
Institution‐wide is inclusive of colleges and/or system administration expenditure (ie. Accredition fees, Graduation Expense, Elections Expense).
4
Expenses of $2,173,193 in the Unrestricted Fund includes, not limited to, classroom materials such as workbooks, textbooks, music supplies, physical education supplies, art materials
and the maintenance of theses instructional materials/equipment.
5
Expenditures of $32,896 in the Auxiliary category is attributed to NEO Café.
6
Items in this category include all student revenue bond payments, transfers for scholarship matching funds,
and transfers to the Unexpended Plant Fund.
*HCC has adopted and adheres to GASB 34(1999) , GASB 54(2010) and OMB 134(1993). The college has received unqualified audit opinions since the adoption of each.
1

5. HOUSTON COMMUNITY COLLEGE
2013‐2014 Budget vs. Actuals
as of October 31, 2013
HCCS CURRENT UNRESTRICTED
FY 2013‐2014
FY2013 Actuals
Adjusted Budget
Year‐to‐Date
Actuals
$ 70,014,003
106,097,476
40,063,500
63,996,717
2,184,999
6,400,587
$ 69,148,935
101,478,107
41,453,277
64,922,582
2,543,140
6,565,665
$ 16,595,742
13,726
16,796,466
26,850,513
444,704
1,867,496
24.0%
0.0%
40.5%
41.4%
17.5%
28.4%
$ (52,553,193)
(101,464,381)
(24,656,811)
(38,072,069)
(2,098,436)
(4,698,169)
517,655 434,410 116,495
‐
14,731,391
‐
Assigned Fund Balance Transfers In
FY2013 Purchase Order Rolls
‐
6,772,578
‐
Total Revenues $
289,274,937 $ 308,050,085 $ 62,685,141
26.8%
0.0%
0.0%
20.3%
(317,915)
(14,731,391)
(6,772,578)
$ (245,364,944)
17.5%
20.8%
18.5%
12.7%
10.9%
10.7%
91.9%
9.5%
8.5%
15.4%
16.9%
13.7%
15.6%
0.0%
20.2%
17.7%
(140,494,801)
(14,381,536)
(4,909,635)
(917,415)
(1,472,108)
(3,374,214)
(573,435)
(22,997,885)
(10,357,927)
(1,726,751)
(10,668,023)
(1,485,067)
(26,730,363)
(7,509,965)
(5,950,331)
$ (253,549,457)
REVENUES
State Appropriations
Ad Valorem Taxes
Tuition, Net
Fees1
Other Local Income2
Tuition & Fee, Net
‐‐ Extended Learning
Grant Revenue
Actuals as a Actuals vs. Adjusted
% of Budget
Budget
3
EXPENSES
Salaries
Employee Benefits
Supplies Gen Exp
Travel
Marketing Costs
Rental & Leases
Insurance/Risk Mgmt
158,833,961 170,341,988
18,704,344 18,152,880
5,216,679 6,025,710
883,137 1,050,460
1,350,751 1,651,572
2,234,487 3,777,530
6,521,682 7,052,666
4
Contract Services
21,328,764 25,415,993
Utilities
8,414,469 11,322,331
Other Departmental Expenses5
1,799,321 2,040,071
Instructional & Other Materials
6,263,298 12,841,216
Maintenance & Repair
1,082,934 1,721,753
Transfers/Debt
33,095,470 31,686,352
Contingency
‐ 7,509,965
Capital Outlay
4,451,702 7,459,598
Total Expenses $
270,180,997 $ 308,050,085
REVENUES H/(L) Vs EXPENSES $
19,093,940
29,847,187
3,771,344
1,116,075
133,045
179,464
403,316
6,479,231
2,418,108
964,404
313,319
2,173,193
236,686
4,955,989
‐
1,509,267
$ 54,500,628
$ 8,184,513
1
Fees charged to student include: Out‐of‐District fees, Technology fees, lab fees, etc.
2
Includes interest & dividends income, fines & penalties and parking fines
3
Planned Fund Balance transfer and additional budget commitments related to Student Services & Instruction
as approved by the Board during the budget process.
4
Contracted Services includes consulting, auditing and maintenance & ground services.
5
Institution‐wide is inclusive of colleges and/or system administration expenditure (ie. Accredition fees,
Graduation Expense, Elections Expense).
2

6. HOUSTON COMMUNITY COLLEGE SYSTEM
Auxiliary Budget By Fund
as of October 31, 2013
Auxiliary Funds1
3101‐3100
Main Leasing
3111
International
3110
4
Auxiliary2
Assigned Fund Balance at
August 31, 2013
$ 18,913,317
$
7,766,831
3
Foundation
Student Services
3207
3201
International
Cafe Club NEO
3100 Main
Initiatives5
3208
Saudi Consulting
3209
Qatar
6
Services
Subtotal
Marketing
$ (1,458,032) $
(16,164,079) $ (1,158,351) $ (1,435,926) $ (43,204) $ 203,712
$ 1,040,292
$ 7,664,560
‐
1,280,404
2,386,867
FY2013
Revenue
924,174 64,814
‐
94,143
‐
23,333
‐
50,692
110,729 17,305
56,993 45,518
1,021,348 1,302,586
Benefits
13,462 28,387 3,450
13,716 11,374
173,601
243,989
Supplies Gen Exp
1,520 14,685 7,613
2,605 25
512 26,960
Travel
1,098 661
378
11,470 13,607
Marketing Costs
21,333
Rental & Leases
3
Salaries
445 9,525
Contract Services
17,700 32,356 51,519
Utilities
32,383
Departmental Expenses
Instructional & Other
Materials
Maintenance & Repair
21,333
380
10,350
101,575
1,250
33,633
83,935 649 1,608,631 2,917
1,696,132
5,231
32,896
38,127
1,568 198 159
1,490
3,415
Insurance/Risk Mgmt
‐
Exemptions and Waivers
‐
Transfer
‐
78,565
Capital Outlay
Total Expense 117,770
Contribution to Fund Balance
806,404
7
Athletic Fields Project
Net Assigned Fund Balance
380,812
78,565
86,588
73,626
95,512
403
(315,998) (86,588) (1,608,631)
(73,626) (1,369) 22,930
‐
1,206,932
3,570,273
‐
73,472
(1,183,406)
(4,095,000)
$ 19,719,721
$
3,355,833
$ (1,544,620) $
(17,772,710) $ (1,231,977) $ (1,437,296) $ (20,273) $ 203,712
1
Restricted by limitations; must comply with laws, statues and regulations.
2
Common Area ‐ Revenue in this category include bookstore commission, facility rental income and child day care revenue.
3
Approx. $1.5M (since inception) supplemental funding, approved by the Board. Return on Investment (ROI) is approximately 3:1.
4
Activity in this fund is related to International Student Support.
5
Revenue is associated with Saigon Tech
6
Fund Balance is comprised of Settlements from NCAAA Contract & Education Experts Co.
7
In April 2012 the Board approved approx. $4.1M in auxiliary funds for six athletic fields.
$ 1,113,764
$ 2,386,154

7. HOUSTON COMMUNITY COLLEGE SYSTEM
Auxiliary Budget By Fund
as of October 31, 2013
Student Auxiliary Funds ‐ Committed1
3111
3112
3110
Student Activity Fee Student Athletic Fee
Student
Vending
Commission
Committed Fund Balance at 8/31/13
Subtotal
Grand Total
$ 1,758,059
$ 9,422,618
49,353
466,784 348,519
864,656
3,251,523
$ 234,880
$ 841,755
$ 681,424
FY2013
Revenue
Salaries
5,590
27,356 32,946
Benefits
73 6,251 6,324
1,335,532
250,313
Supplies Gen Exp 9,389 77,421 3,354 90,164 117,124
Travel
340 680
1,020
Marketing Costs
‐
14,627
21,333
Rental & Leases
‐
10,350
12,247 1,000 13,247
114,822
‐
5,000 1,200
30,000 36,200
33,633
1,732,332
‐
38,127
Maintenance &
Repair
Insurance ‐ Risk
Mgmt
Exemptions and
Waivers
Transfer
‐
3,415
‐
‐
‐
‐
‐
Capital Outlay
‐
‐
78,565
4
Contract Services
Utilities
Departmental
Expenses
Instructional &
Other Materials
Total Expense
14,729
97,211
67,961
179,901
3,750,174
Contribution to Fund Balance
34,624
369,573
280,558
684,755
(498,650)
Net Committed Fund Balance
$ 269,504
$ 1,211,328
$ 961,982
$ 2,442,814
$ 4,828,968
1
Funds are committed for services related to students

8. Houston Community College
Balance Sheet By Fund
For Month Ended October 31, 2013
CURRENT &
1
LOAN FUNDS
PLANT & BOND
2
FUNDS
Total All Funds
ASSETS
Current Assets:
Cash & cash equivalents
Restricted cash & cash equivalents
Short term Investments
Accounts/Other receivable (net)
Deferred charges
Prepaids
Total Current Assets
$ 83,316,719
12,032,536
‐
16,305,142
1,004,669
109,030
112,768,095
$ 11,835,418
472,610,699
‐
1,224,936
‐
881,112
486,552,165
$ 95,152,137
484,643,235
‐
17,530,078
1,004,669
990,142
599,320,260
Non‐current Assets:
Deferred charges, net
Restricted long‐term investments
Long‐term investments
Capital Assets, net
Total Non‐current Assets
‐
‐
18,706,657
‐
18,706,657
‐
34,641,675
‐
785,606,343
820,248,019
‐
34,641,675
18,706,657
785,606,343
838,954,676
Total Assets
$ 131,474,752
$ 1,306,800,184
$
1,438,274,936
LIABILITIES
Current Liabilities:
Accounts payable
Accrued liabilities
Compensated absences
Funds held for others
Deferred revenue
Notes payable‐current portion
Bonds payable‐current portion
Capital lease obligations‐current
Total Current Liabilities
5,668,315
‐
2,261,499
632,783
1,622,105
‐
‐
‐
10,184,701
554,139
1,450,264
‐
189,209
99,215
2,695,000
23,335,000
‐
28,322,827
6,222,454
1,450,264
2,261,499
821,992
1,721,320
2,695,000
23,335,000
‐
38,507,528
Non‐current Liabilities:
Deposits
Notes payable
Bonds payable
Capital lease obligations
Total Non‐current Liabilities
‐
‐
‐
‐
‐
‐
170,117,037
765,902,678
106,230,726
1,042,250,441
‐
170,117,037
765,902,678
106,230,726
1,042,250,441
Total Liabilities
$ 10,184,701
$ 1,070,573,268
$
1,080,757,967
110,083,838
236,975,374
347,059,212
(748,459)
7,685,862
3,520,354
(748,459)
Fund Balance‐
August 31, 2013 Unaudited
Revenues Over Expenditures
Unrestricted
Restricted
Net Investment in Plant
7,685,862
3,520,354
Total Fund Balances, Unaudited
$ 121,290,054
$ 236,226,916
$ 357,516,969
Total Liabilities & Fund Balances
$ 131,474,755
$ 1,306,800,184
$
1,438,274,936
1
2
I ncludes Unrestricted, Restricted, Loan & Endowment, Scholarship, Agency and Auxiliary Funds.
Includes Unexpended Plant, Retirement of Debt and Investment in Plant Funds.
5

9. HOUSTON COMMUNITY COLLEGE
FY 2013‐14 Adjusted Budget by Colleges
as of October 31, 2013
TM
CENTRAL
NORTH
WEST
NORTH
EAST
SOUTH
WEST
SOUTH EAST
COLEMAN
EXTENDED
LEARNING
SYSTEM
Grand Total
Salaries
$ 23,763,043 $ 24,297,945 $ 18,858,510 $ 26,508,507 $ 15,135,343 $ 10,455,696 $ 10,566,619 $ 40,756,325 $
170,341,988
Employee Benefits
‐
Supplies & Gen
236,248 339,225 186,373 258,610 257,862 325,735 227,496 3,971,631 5,803,180
Travel
501,455 1,050,460
109,215 98,957 34,031 68,783 51,539 97,092 89,388
Marketing Costs
51,979 46,485 85,322 29,306 71,154 40,823 378,606
938,037 1,641,712
Rentals & Leases
6,810 140,016 1,010,359 514,787 41,484 482,744 26,530 1,538,347 3,761,077
Insurance/Risk Mgmt
794 168
Contracted Services
319,192 315,291 54,815 57,122 147,480 384,845 347,232 22,444,785 24,070,762
Utilities
5,025
Other Departmental Expenses
86,925 44,665 49,917 42,869 129,924 117,080 49,771 1,493,919 2,015,070
Instructional and Other Materials
483,612 291,060 145,277 279,460 51,456 365,910 1,112,395 8,322,275 11,051,445
Maintenance and Repair
138,195 48,839 41,883 91,869 35,172 87,207 168,950
747,436 1,359,551
Transfers/Debt
‐
‐
‐
154 ‐
18,152,880 18,152,880
‐
4,600 362
845,806 5,637,942 1,200,000 ‐
7,051,550 7,052,666
11,289,717 11,299,704
‐
24,002,604 31,686,352
Contingency/Budget Priority Funding
14,671 28,943 49,640 50,000 49,662 42,341 ‐
7,274,708 7,509,965
Capital Outlay
471,247 716,811 79,377 279,431 57,629 55,205 153,995 2,667,000 4,480,695
FY2013 Purchase Order Rolls
Grand Total
‐
6,772,578 6,772,578
$ 25,686,956 $ 27,214,211 $ 26,238,046 $ 29,381,260 $ 16,028,705 $ 12,454,678 $ 13,120,982 $ 157,925,247 $ 308,050,085
6