Financial Statement July 2016

1. Summary Operating Statements
For the Period
September 1, 2015 ‐ July 31, 2016
For the Meeting of the Board of Trustees ‐ September 8, 2016
for
Houston Community College System
&
Houston Community College Public Facility Corporation

2. Summary Summary of Financial Statements 1
Fund Balances Fund Balance Statement 2
Operating Summary HCCS Unrestricted Revenue & Expenditures 3
Auxiliary Sources and Uses of Auxiliary Funds 4
Budgets Adjusted Budgets by Divisions 6
Balance Sheet Balance Sheet by Fund 8
Exemptions/Waivers Exemptions & Waivers Detail 9
Table of Contents
For the Period September 1, 2015 ‐ July 31, 2016
Houston Community College System

3. 1
Houston Community College System
Summary of Financial Statements
As of July 31, 2016
In the Unrestricted Fund as of July 31, 2016, total revenue received is $312.3 million. This
represents 96.2% of budgeted annual revenues of $324.6 million. Expenses total $284.6 million
to date; which is 87.7% of the total expense budget of $324.6 million. Compared with the same
time last year, revenue shows a 3% increase, and expenses are 8.7% higher than the prior year.
Actual net revenue is $27.7 million to‐date. That translates into a like amount increase in fund
balance.
Salaries increased 6.6%. This increase is due namely to the compensation study alignment and
an across the board salary increase of 2% for full‐time employees.
The expenses in Transfers & Debt show an increase of $8.7 million namely due to the
redemption of the PFC Westgate Bonds Series 2005A in the amount of $8.1 million.
Total revenue and expenses are expected to fall within budget plan at year end.

4. Unrestricted1
Restricted Auxiliary
Loan &
Endowments Scholarship Agency
Unexpended
Plant
Capital and
Technology
Retirement of
Debt
Investment in
Plant
Public Facility
Corp. Grand Total
Fund Balance as of 9/1/2015, Audited $ 45,130,654 $ 4,540,237 $ 7,699,183 $ 509,932 $ (29,805) $ ‐ $ 27,332 $ 5,660,509 $ 52,039,009 $ 251,542,378 $ (2,701,008) $ 364,418,421
Revenues 312,302,899 27,364,223 9,379,896 ‐ 95,964,710 ‐ 2,274,890 ‐ 51,538,383 (4,971,444) 278,845 494,132,403
Expenses
Salaries 169,924,465 4,819,206 1,799,647 ‐ 1,727,472 ‐ 267,702 ‐ ‐ ‐ ‐ 178,538,492
Employee Benefits 21,075,960 13,076,791 599,781 ‐ ‐ ‐ 59,896 ‐ ‐ ‐ ‐ 34,812,428
Supplies & General Exp 4,530,568 187,206 1,088,093 ‐ ‐ ‐ 1,447 29,667 ‐ ‐ ‐ 5,836,982
Travel 976,920 117,056 220,919 ‐ ‐ ‐ 1,085 ‐ ‐ ‐ ‐ 1,315,981
Marketing Costs 637,959 73,955 939,992 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,651,906
Rentals & Leases 2,197,169 108,047 53,619 ‐ ‐ ‐ 6,735 ‐ ‐ ‐ ‐ 2,365,570
Insurance/Risk Mgmt 4,570,897 10,010 4,778 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 4,585,685
Contracted Services 19,560,054 3,779,349 2,094,916 ‐ ‐ ‐ 1,453,765 26,125 289,556 ‐ ‐ 27,203,765
Utilities 7,929,047 ‐ 498,753 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 8,427,800
Other Departmental Expenses 1,729,361 200,587 1,568,521 ‐ ‐ ‐ 150 ‐ ‐ ‐ ‐ 3,498,619
Instructional and Other Materials 8,146,805 352,779 202,982 ‐ ‐ ‐ 807,736 ‐ ‐ ‐ ‐ 9,510,303
Maintenance and Repair 748,775 367,412 9,491 ‐ 185,571 ‐ ‐ 62,375 ‐ ‐ ‐ 1,373,623
Transfers (In)/Out2
39,295,532 4,000,000 ‐ 251,000 (2,644,962) ‐ (3,362,542) (9,000,000) (26,273,929) (2,265,100) ‐ 0
Debt 125,863 ‐ 279 ‐ ‐ ‐ ‐ ‐ 64,036,045 834,697 ‐ 64,996,884
Capital Outlay 3,130,495 2,373,644 67,394 ‐ ‐ ‐ 123,643,887 5,670,554 ‐ ‐ 133,055 135,019,031
Depreciation ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 20,233,320 ‐ 20,233,320
Scholarship Distribution ‐ ‐ ‐ ‐ 96,664,932 ‐ ‐ ‐ ‐ ‐ ‐ 96,664,932
Total Expenses 284,579,873 29,466,044 9,149,164 251,000 95,933,013 ‐ 122,879,862 (3,211,278) 38,051,672 18,802,917 133,055 596,035,321
NET REVENUE/(EXPENSES) 27,723,026 (2,101,821) 230,732 (251,000) 31,697 ‐ (120,604,971) 3,211,278 13,486,710 (23,774,361) 145,790 (101,902,918)
Fund Balance Entries (477,401) 1,124,691 ‐ ‐ ‐ ‐ 139,875,467 1,261,372 2,394,037 30,851,708 (882,098) 174,147,776
Fund Balance as of 7/31/2016 72,376,280$ 3,563,107$ 7,929,915$ 258,932$ 1,892$ ‐$ 19,297,828$ 10,133,160$ 67,919,757$ 258,619,725$ (3,437,316)$ 436,663,279$
1
The significant change in the unresticted fund balance is attributable to the implementation of GASB 68, Accounting and Reporting for Financial Pension.
2
Transfers include student revenue bond payment funds, scholarship matching funds, and transfers to Unexpended Plant and Capital and Technology Funds.
Unaudited Fund Balances and Activities ‐ All Funds
as of July 31, 2016
2
HOUSTON COMMUNITY COLLEGE SYSTEM

5. Year‐to‐Date Actuals
Thru July 31, 2016 FY2016 Budget
Actuals as a %
of Budget
Year‐to‐Date Actuals
Thru July 31, 2016
Year‐to‐Date Actuals
Thru July 31, 2015
Increase (Decrease)
FY2016 Compared to
FY2015
% Increase
(Decrease)
REVENUES
State Appropriations 63,495,384$ 69,995,427$ 90.7% 63,495,384$ 62,586,744$ 908,640$ 1.5%
Ad Valorem Taxes 133,015,253 136,000,000 97.8% 133,015,253 123,676,120 9,339,134 7.6%
Tuition, Net 40,395,124 40,925,000 98.7% 40,395,124 40,571,806 (176,682) ‐0.4%
Fees 63,334,532 65,325,000 97.0% 63,334,532 64,634,117 (1,299,585) ‐2.0%
Other Local Income 3,310,863 2,250,000 147.1% 3,310,863 2,113,917 1,196,946 56.6%
Tuition & Fee, Net
‐‐ Extended Learning
8,403,891 9,500,000 88.5% 8,403,891 9,208,312 (804,422) ‐8.7%
Indirect Cost Revenues, Grant 347,852 620,000 56.1% 347,852 442,563 (94,712) ‐21.4%
Total Revenues 312,302,899 324,615,427 96.2% 312,302,899 303,233,579 9,069,320 3.0%
EXPENSES
Salaries 169,924,465 189,117,266 89.9% 169,924,465 159,382,879 10,541,587 6.6%
Employee Benefits 21,075,960 21,213,263 99.4% 21,075,960 17,884,682 3,191,278 17.8%
Supplies Gen Exp 4,530,568 6,229,371 72.7% 4,530,568 3,933,340 597,228 15.2%
Travel 976,920 1,675,894 58.3% 976,920 918,375 58,545 6.4%
Marketing Costs 637,959 1,485,267 43.0% 637,959 1,052,260 (414,300) ‐39.4%
Rental & Leases 2,197,169 2,433,064 90.3% 2,197,169 2,156,934 40,235 1.9%
Insurance/Risk Mgmt 4,570,897 4,587,482 99.6% 4,570,897 6,423,136 (1,852,239) ‐28.8%
Contract Services 19,560,054 24,824,865 78.8% 19,560,054 19,831,060 (271,006) ‐1.4%
Utilities 7,929,047 10,235,600 77.5% 7,929,047 7,512,585 416,462 5.5%
Other Departmental Expenses 1,729,361 2,450,104 70.6% 1,729,361 1,558,518 170,843 11.0%
Instructional & Other Materials 8,146,805 9,637,133 84.5% 8,146,805 7,263,414 883,391 12.2%
Maintenance & Repair 748,775 1,208,816 61.9% 748,775 855,159 (106,384) ‐12.4%
Transfers/Debt 39,421,395 40,937,612 96.3% 39,421,395 30,732,069 8,689,326 28.3%
Contingency ‐ 2,791,230 0.0% ‐ ‐ ‐ 0.0%
Capital Outlay 3,130,495 5,788,459 54.1% 3,130,495 2,207,870 922,625 41.8%
Total Expenses 284,579,873$ 324,615,427$ 87.7% 284,579,873$ 261,712,281$ 22,867,592 8.7%
NET REVENUE/(EXPENSES) 27,723,026$ 0$ 0.0% 27,723,026$ 41,521,298$ (13,798,272)$ ‐33.2%
HOUSTON COMMUNITY COLLEGE SYSTEM
Comparison to Budget and Comparison to Previous Fiscal Year
as of July 31, 2016
HCCS CURRENT UNRESTRICTED
3
91.7% of Year Expended

6. Main Leasing Misc. Auxiliary
*
Foundation Marketing
Bookstore
Commission
International
Student Services
Cafe Club NEO
3100 Main Scholarships
Subtotal
Uncommitted
21,608,919$ (15,867,575)$ (1,919,115)$ (22,697,403)$ 26,337,287$ (2,029,029)$ (1,579,123)$ (462,396)$ 3,391,564$
FY2016
Revenue 6,240,019 635,296 ‐ ‐ 1,664,404 ‐ 414,517 ‐ 8,954,236
Salaries 259,965 583,233 100,370 303,543 214,344 1,461,455
Benefits 64,065 327,310 23,401 73,446 47,126 535,347
Supplies Gen Exp 36,913 148,816 10,419 6,787 202,935
Travel 19,261 5,931 2,405 27,598
Marketing Costs 2,874 936,142 939,016
Rental & Leases 4,216 37,950 2,881 45,047
Contract Services 1,607,629 144,740 41,490 3,011 1,796,870
Utilities 495,353 3,400 498,753
Departmental Expenses 300 270,233 1,216,730 15,727 1,502,990
Instructional & Other
Materials 600 4,044 198,047
202,691
Maintenance & Repair 1,432 119 7,940 9,491
Insurance/Risk Mgmt 168 168
Exemptions and Waivers 1,600,851 1,600,851
Transfer/Debt ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Capital Outlay 43,179 19,382 62,560
Total Expense 2,513,652 1,558,129 181,611 2,152,872 ‐ 395,121 483,536 1,600,851 8,885,771
Contribution to Fund Balance 3,726,368 (922,833) (181,611) (2,152,872) 1,664,404 (395,121) (69,019) (1,600,851) 68,465
Auxiliary Fund Balance ‐ Uncommitted Portion 3,460,029$
*
Expenditures in this category include mailroom, child day care, Minority Male Initiative, Govt. Relation, Mobile Go, etc.
4
Fund Balance –
September 1, 2015 (Audited )
HOUSTON COMMUNITY COLLEGE SYSTEM
Auxiliary Budget By Fund
as of July 31, 2016
Auxilary Funds ‐ Uncommitted Portion

7. Total
Saigon Tech
Other
International
Initiatives
Subtotal
International
Minority
Business
Development
Agency
Student
Vending
Commission
Student
Activity Fee
Student
Athletic Fee Subtotal
Committed Total Auxiliary
328,922$ (92,954)$ 1,818,386$ ‐$ 324,132$ 1,005,688$ 1,159,414$ 2,489,233$ 7,699,183$
(Audited)
FY2016
Revenue 23,333 ‐ 23,333 ‐ 105,000 1,070,381 864,381 2,039,762 11,017,331
Salaries 1,200 1,200 ‐ 4,200 103,934 228,858 336,992 1,799,647
Benefits ‐ ‐ 10,607 53,827 64,434 599,781
Supplies Gen Exp 511 511 ‐ 66,572 609,763 208,311 884,646 1,088,093
Travel 7,210 49,139 56,348 ‐ 145 74,208 62,621 136,973 220,919
Marketing Costs ‐ ‐ 975 975 939,992
Rental & Leases ‐ ‐ 2,476 6,096 8,572 53,619
Contract Services ‐ ‐ 1,000 117,663 179,383 298,046 2,094,916
Utilities ‐ ‐ ‐ 498,753
Departmental Expenses 4,980 4,980 ‐ 21,000 20,348 19,204 60,551 1,568,521
Instructional & Other
Materials
‐
‐ 292
292 202,982
Maintenance & Repair ‐ ‐ ‐ 9,491
Insurance/Risk Mgmt ‐ ‐ 2,072 2,538 4,610 4,778
Exemptions and Waivers ‐ ‐ 35,690 893 36,584 1,637,435
Transfer ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Capital Outlay ‐ ‐ 1,896 3,217 5,113 67,673
Total Expense 8,921 54,118 63,039 ‐ 92,916 979,632 765,240 1,837,789 10,786,599
Contribution to Fund Balance 14,412 (54,118) (39,706) ‐ 12,084 90,749 99,141 201,973 230,732
Auxiliary Fund Balance ‐ Intl, Committed, Total 1,778,680$ ‐$ 336,215$ 1,096,437$ 1,258,555$ 2,691,206$ 7,929,915$
HOUSTON COMMUNITY COLLEGE SYSTEM
Auxiliary Budget By Fund
as of July 31, 2016
5
Auxiliary Funds ‐ International and Committed Portions
International Committed
Fund Balance –
September 1, 2015

8. as of July 31, 2016
Budgeted Expenditures CENTRAL
NORTH
WEST
NORTH
EAST
SOUTH
WEST
SOUTH
EAST
COLEMAN
EXTENDED
LEARNING
ACADEMIC
INSTRUCTION
Salary 8,816,924$ 8,957,863$ 11,346,480$ 9,952,329$ 5,610,028$ 11,835,640$ 11,121,516$ 58,714,234$
Employee Benefits 3,088 ‐ ‐ ‐ ‐ ‐ ‐ ‐
Supplies & Gen 227,022 277,888 223,755 325,060 324,484 315,744 210,901 402,611
Travel 36,855 75,523 22,707 49,612 14,653 98,403 93,977 115,049
Marketing Costs 13,645 61,695 56,019 28,363 174,011 10,210 276,057 8,466
Rentals & Leases 2,530 50,529 938,124 498,206 55,599 497,054 25,169 9,634
Insurance/Risk Mgmt ‐ ‐ ‐ ‐ ‐ 126 ‐ 399
Contracted Services 286,511 272,481 75,719 18,926 46,423 169,202 104,259 329,916
Utilities 5,125 ‐ ‐ 2,050 ‐ ‐ ‐ ‐
Other Departmental Expenses 60,541 74,496 27,754 31,080 16,653 80,993 56,479 70,937
Instructional And Other Materials 319,629 68,465 186,980 121,552 61,941 265,897 704,333 1,105,265
Maintenance and Repair 152,631 49,873 107,751 8,776 13,205 60,590 118,153 30,345
Transfers/Debt ‐ 7,723 1,186 ‐ ‐ ‐ ‐ ‐
Contingency 431,381 341,481 45,992 226,102 ‐ 424,218 201,794 ‐
Capital Outlay 505,947 297,211 327,851 239,323 570,784 138,762 146,855 364,745
Total 10,861,829$ 10,535,228$ 13,360,318$ 11,501,379$ 6,887,781$ 13,896,840$ 13,059,493$ 61,151,601$
HOUSTON COMMUNITY COLLEGE
FY 2015‐16 Adjusted Budget by Divisions
6

9. as of July 31, 2016
HOUSTON COMMUNITY COLLEGE
FY 2015‐16 Adjusted Budget by Divisions
Budgeted Expenditures CHANCELLOR
FINANCE &
ADMIN.
SUSTAINABILITY
INSTRUCTIONAL
SERVICES
STUDENT
SERVICES
SYSTEM Grand Total
Salary 5,751,268$ 30,318,222$ 3,052,971$ 17,587,754$ 4,432,997$ 1,619,040$ 189,117,266$
Employee Benefits ‐ ‐ ‐ ‐ ‐ 21,210,175 21,213,263
Supplies & Gen 792,466 1,033,892 166,371 430,511 198,666 1,300,000 6,229,371
Travel 154,915 219,037 81,388 671,247 42,528 ‐ 1,675,894
Marketing Costs 599,786 228,537 26,378 2,000 100 ‐ 1,485,267
Rentals & Leases 87,700 188,171 61,429 13,519 5,400 ‐ 2,433,064
Insurance/Risk Mgmt 4,585,724 57 ‐ 1,176 ‐ ‐ 4,587,482
Contracted Services 3,518,497 15,888,705 72,206 89,711 1,405,756 2,546,553 24,824,865
Utilities ‐ 1,745,552 ‐ 94 ‐ 8,482,779 10,235,600
Other Departmental Expenses 796,519 376,532 109,177 633,156 115,787 ‐ 2,450,104
Instructional And Other Materials 45,600 5,822,059 48,811 581,946 304,655 ‐ 9,637,133
Maintenance and Repair 6,960 652,573 6,138 150 1,671 ‐ 1,208,816
Transfers/Debt 200,000 43,591 ‐ ‐ ‐ 40,685,112 40,937,612
Contingency 64,500 100,064 179,059 15,000 ‐ 761,639 2,791,230
Capital Outlay 144,918 2,706,379 220,163 97,277 28,245 ‐ 5,788,459
Total 16,748,853$ 59,323,371$ 4,024,091$ 20,123,541$ 6,535,805$ 76,605,298$ 324,615,427$
7

10.
CURRENT & LOAN
FUNDS1
PLANT & BOND
FUNDS2
Total All Funds
ASSETS
Current Assets:
Cash & cash equivalents 136,551,977$ 32,825,524$ 169,377,501$
Restricted cash & cash equivalents 1,402,589 ‐ 1,402,589
Short term Investments ‐ ‐ ‐
Accounts/Other receivable (net) 28,523,011 2,934,517 31,457,528
Deferred charges 1,053,446 ‐ 1,053,446
Prepaids 1,965,587 673,299 2,638,886
Total Current Assets 169,496,609 36,433,340 205,929,949
Non‐current Assets:
Restricted cash & cash equivalents ‐ 152,468,638 152,468,638
Restricted long‐term investments ‐ 73,893,516 73,893,516
Long‐term Investments 27,452,232 ‐ 27,452,232
Deferred Outflows of Resources: Pension 11,299,015 ‐ 11,299,015
Advance Funding Valuation Outflows ‐ 7,936,830 7,936,830
Capital Assets, net 1,200,172 1,046,758,375 1,047,958,548
Total Non‐current Assets 39,951,419 1,281,057,358 1,321,008,777
Total Assets 209,448,028$ 1,317,490,698$ 1,526,938,727$
LIABILITIES
Current Liabilities:
Accounts payable 7,345,811 4,031,547 11,377,358
Accrued liabilities 2,559,721 1,257,916 3,817,637
Compensated absences 2,526,083 ‐ 2,526,083
Funds held for others 704,132 189,209 893,341
Deferred revenue 24,127,245 1,416,031 25,543,277
Notes payable‐current portion ‐ 9,143,299 9,143,299
Bonds payable‐current portion ‐ 25,625,000 25,625,000
Total Current Liabilities 37,262,993 41,663,003 78,925,996
Non‐current Liabilities:
Deposits ‐ ‐ ‐
Net Pension Liability 67,428,372 ‐ 67,428,372
Deferred Inflows of Resources: Pension 20,626,539 ‐ 20,626,539
Advance Funding Valuation Inflows ‐ 722,950 722,950
Notes payable ‐ 143,468,465 143,468,465
Bonds payable ‐ 729,860,307 729,860,307
Capital lease obligations ‐ 45,805,503 45,805,503
Total Non‐current Liabilities 88,054,911 919,857,226 1,007,912,137
Total Liabilities 125,317,904$ 961,520,228$ 1,086,838,133$
Fund Balance‐
August 31, 2015 Audited 57,850,201 309,269,229 367,119,430
Revenues Over Expenditures
Unrestricted 27,476,357 ‐ 27,476,357
Restricted (1,196,433) ‐ (1,196,433)
Net Investment in Plant ‐ 46,701,241 46,701,241
Total Fund Balances 84,130,126$ 355,970,470$ 440,100,596$
Total Liabilities & Fund Balances 209,448,030$ 1,317,490,698$ 1,526,938,727$
1
In cludes Unrestricted, Restricted, Loan & Endowment, Scholarship, Agency and Auxiliary Funds.
2
Includes Unexpended Plant, Retirement of Debt and Investment in Plant Funds.
Houston Community College
Balance Sheet By Fund
For Month Ended July 31, 2016
8

11. FY 2014‐15 FY 2015‐16
Budget:
Adjusted Budget FY 2015‐16, Net 40,925,000$
Revenues Received:
Tuition 46,585,807 47,216,155 47,134,608
Waivers & Exemptions:
Dual Credit & Early College HS (5,045,017) (5,046,551) (5,301,869)
Other (1,603,037) (1,597,798) (1,437,615)
Total Waivers & Exemptions (6,648,054) (6,644,349) (6,739,484)
Total Tuition Revenue, Net 39,937,754$ 40,571,806$ 40,395,124$
Budget:
Budget FY 2015‐16, Net 9,500,000$
Revenues Received:
Tuition 11,329,490 10,955,825 9,887,330
Waivers & Exemptions:
Department of Corrections (1,946,863) (1,747,513) (1,483,439)
Total EL Tuition Revenue, Net 9,382,627$ 9,208,312$ 8,403,891$
FY 2014‐15 FY 2015‐16
Dept of Corrections 1,946,863$ 1,747,513$ 1,483,439$ ‐15.1%
Dual Credit & Early College HS Waiver 5,045,017 5,046,551 5,301,869 5.1%
Other:
Employee Fee Exemptions 61,121 60,347 59,037 ‐2.2%
Firemen 12,870 12,870 10,035 ‐22.0%
Hazelwood 942,773 938,969 789,422 ‐15.9%
Deaf & Blind 190,174 190,174 203,182 6.8%
High Ranking Hi SCH Grad 1,805 1,805 1,519 ‐15.8%
Child of Disabled Vet ETC 7,264 7,264 3,459 ‐52.4%
Emp of State Coll & Univ ‐ ‐ 2,372 0.0%
Nonres Teach/Research Asst 6,363 6,363 965 ‐84.8%
Nonres Competitive Scholar 8,558 8,558 39,206 358.1%
Senior Citizens 13,668 13,724 12,379 ‐9.8%
Scholarship Distribution 2,800 2,800 ‐ 0.0%
A VISA Waiver (Non‐Alien Waiver) 888 888 ‐ ‐100.0%
Foster Children‐Resident 247,117 246,967 160,180 ‐35.1%
Fire Academy Waiver ‐ ‐ (15) 0.0%
Undocumented Students 5,723 5,723 1,859 ‐67.5%
TX Tomorrow Waiver 6,076 5,810 1,792 ‐69.2%
Surviving Spouse/Children ‐ ‐ 2,942 0.0%
Peace Officer Exemption 3,868 3,867 1,929 ‐50.1%
Adopted Student Waiver 91,719 91,419 147,102 60.9%
Stipends 250 250 250 0.0%
Total Other Exemptions 1,603,037 1,597,798 1,437,615 ‐10.0%
Grand Total Exemptions & Waivers 8,594,917$ 8,391,862$ 8,222,923$ ‐2.0%
End of Year
Activity
Year‐to‐Date
Activity thru
7/31/2015
Year‐to‐Date
Activity thru
7/31/2016
Houston Community College
9
Actuals %
Inc/(Dec)YTD
vs. PriorYTD
Exemptions & Waivers
Through July 31, 2016
Account
End of Year
Activity
Year‐to‐Date
Activity thru
7/31/2015
Year‐to‐Date
Activity thru
7/31/2016
Tuition
Tuition ‐ Extended Learning
Exemptions & Waivers