comprehensive annual financial reportgfoa.net/cafr/coa2012/baltimorecountycommunitycollegemd.pdf ·...

The Community College of Baltimore County

Comprehensive Annual Financial Report

The incredible value of education. www.ccbcmd.edu

For the Fiscal Year Ended June 30, 2012 A Component Unit of Baltimore County, Maryland

comprehensiveannual financial report

For the Fiscal Year Ended June 30, 2012

The Community Collegeof Baltimore County

A component unit of Baltimore County, Maryland

Prepared by:

Office of Finance

MCM LV I I

MissionThe Community College of Baltimore County provides

an accessible, affordable and high-quality education that

prepares students for transfer and career success, strengthens

the regional work force and enriches our community.

VisionWe will be the institution of choice for students, where

together we make teaching purposeful, learning powerful,

and community paramount.

ValuesLearning

Responsibility

Integrity

Inclusiveness

Excellence

______________________________________________________________________________

TABLE OF CONTENTS

Introductory Section Letter of Transmittal ............................................................................................................................................................. i

Strategic Plan Overview .................................................................................................................................................... vii

Board of Trustees ............................................................................................................................................................... xii

Principal Officials ............................................................................................................................................................. xiii

Certificate of Achievement ............................................................................................................................................... xiv

Financial Section Independent Auditor‟s Report ............................................................................................................................................. 1

Management‟s Discussion and Analysis ............................................................................................................................. 3

Basic Financial Statements Statement of Net Assets ..................................................................................................................................................... 22

Statement of Revenues, Expenses and Changes in Net Assets .......................................................................................... 23

Statement of Cash Flows ................................................................................................................................................... 24

Summary of Significant Accounting Policies .................................................................................................................... 25

Notes to Financial Statements ........................................................................................................................................... 32

Required Supplementary Information Schedule of Funding Progress (OPEB) for Other Postemployment Benefits ..................................................................... 51

Other Supplementary Information Comparison of Actual and Budget Revenue for Unrestricted Current Funds .................................................................... 52

Comparison of Budget Basis Expenditures and Encumbrances with

Budgeted Appropriations – Unrestricted Current Funds ................................................................................................... 53

Operations of Auxiliary Enterprises .................................................................................................................................. 54

Schedule of Full-Time Equivalent Students ...................................................................................................................... 55

Statistical Section Full-Time Equivalent Students .......................................................................................................................................... 58

Unrestricted Funds – Comparison of Revenues to Expenditures, Encumbrances and

Transfers by Function (Budgetary Basis) ....................................................................................................................... 59

Net Assets ........................................................................................................................................................................... 61

Changes in Net Assets ........................................................................................................................................................ 61

Credit Tuition and Fees per Credit Hour ........................................................................................................................... 63

Schedule of Capital Asset Information .............................................................................................................................. 64

Schedule of Capital Leases ................................................................................................................................................ 65

Schedule of Operating Indicators – Level of Service ........................................................................................................ 65

Principal Employers – Baltimore County, Maryland ......................................................................................................... 66

Net Assets by Component – Baltimore County, Maryland ................................................................................................ 67

Fund Balances of Governmental Funds – Baltimore County, Maryland ............................................................................ 69

Changes in Net Assets – Baltimore County, Maryland ..................................................................................................... 71

Legal Debt Margin – Baltimore County, Maryland ........................................................................................................... 75

General Fund Tax Revenues by Source – Baltimore County, Maryland ........................................................................... 77

Property Tax Levies & Collections – Baltimore County, Maryland ................................................................................. 77

Property Tax Rates – Direct and Overlapping Governments – Baltimore County, Maryland ........................................... 78

Taxable Assessed Value and Estimated Actual Value of Taxable Property – Baltimore County, Maryland .................... 78

Principal Property Taxpayers – Baltimore County, Maryland ........................................................................................... 79

Demographic and Economic Statistics – Baltimore County, Maryland ............................................................................ 79

Ratios of Metropolitan District (MD)/Consolidated Public Improvement (CPI) General Obligation (GO) Debt to

Estimated Actual Value of Property and MD/CPI GO Debt Per Capita – Baltimore County, Maryland .......................... 80

Full-Time Equivalent County Government Employees by Function – Baltimore County, Maryland ............................... 81

CCBCThe Community College

of Baltimore County

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introductorysection

MCM LV I I

F Y 2 0 1 1 - F Y 2 0 1 3S t r a t e g i c D i r e c t i o n s

i student success

ii teaching and learning

excellence

iii organizational excellence

iv community engagement

i

December 1, 2012

Board of Trustees

The Community College of

Baltimore County

We are pleased to submit the

Comprehensive Annual Financial

Report (CAFR) of the Community

College of Baltimore County

(CCBC) for the fiscal year ended

June 30, 2012.

We believe the financial statements

and data are accurate in all material

respects, and are presented in a

manner designed to fairly reflect the

College‟s financial position and

changes in financial position. The

management of CCBC is responsible

for both the accuracy of the

presented data and the completeness

and fairness of the presentation. We

believe that all disclosures necessary

to enable the reader to gain the

maximum understanding of CCBC‟s

financial affairs have been included

in this document.

CCBC is responsible for establishing

and maintaining an internal control

structure designed to ensure that the

College‟s assets are protected from

loss, theft or misuse and to ensure

that adequate accounting data are

compiled to allow for the preparation

of financial statements in conformity

with generally accepted accounting

principles as applicable to colleges in

the United States. 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 (1) the cost

of a control should not exceed the

benefits likely to be derived; and (2)

the valuation of costs and benefits

requires estimates and judgment by

management.

The independent certified public

accounting firm of

CliftonLarsonAllen LLP (formerly

known as Clifton Gunderson), in

accordance with the laws of the State

of Maryland, has audited CCBC‟s

financial statements. They have

issued an unqualified “clean”

opinion. The independent auditor‟s

report is located at the beginning of

the financial section of this report.

CCBC‟s financial statements have

also been audited in accordance with

the provisions contained in the U.S.

Office of Management and Budget‟s

Circular A-133. This audit is

conducted in accordance with

generally accepted government

auditing standards, and the related

“single audit” report includes

schedules of federal financial

assistance, a report on internal

controls and compliance with laws

and regulations, and a schedule of

findings. CCBC‟s single audit report

has been separately issued and is not

included herein.

Management‟s discussion and

analysis (MD&A) immediately

follows the independent auditor‟s

report and provides a narrative

introduction, overview, and an

analysis of the basic financial

statements. The MD&A

complements this letter of transmittal

and should be read in conjunction

with it.

____________________________________________________________________________

ii

Profile of the Entity CCBC is considered a “body politic” under

Maryland state law as an instrumentality of

the State of Maryland and is governed by a

15 member Board of Trustees who are

appointed for five-year terms by the

governor of Maryland with the advice and

consent of the State Senate.

CCBC was formed on October 1, 1998 by

state legislation. This legislation combined

three separate colleges, Catonsville,

Dundalk and Essex Community Colleges,

into one college. Currently, CCBC offers

credit and non-credit courses at three

campuses - Catonsville, Dundalk and Essex,

and three extension centers located in

Owings Mills, Randallstown and Hunt

Valley. CCBC is the largest community

college in Maryland serving 70,951 students

in FY2012.

In accordance with Governmental

Accounting Standards Board Statement No.

39, Determining Whether Certain

Organizations are Component Units, the

foundation that is affiliated with CCBC is

discretely presented herein as a component

unit. This component unit is reported

separately within the College‟s financial

statements to emphasize that it is legally

separate from the College. Effective July 1,

2011, the CCBC Essex Foundation merged

with the CCBC Foundation. The information

presented hereafter presents the combined

CCBC Foundation.

CCBC is not a Baltimore County (County),

Maryland agency. However, as a result of

its relationship with the County, CCBC is

considered to be a component unit of the

County and its financial statements are

included in the County‟s Basic Financial

Statements in accordance with generally

accepted accounting principles.

CCBC is required under the laws of the

State of Maryland to submit an annual

budget for all of its operating funds. Prior to

submission to the State, the Baltimore

County Council must first adopt the budget

into law.

Internal controls over the budget process are

incorporated within the accounting system.

Quarterly financial reports are prepared and

presented to the Board of Trustees during

the fiscal year. CCBC engages in proactive

budget management year round.

Additionally, organizational managers are

responsible for assuring that expenditures

remain within appropriation balances by

category.

Economic Environment Baltimore County is situated in the

geographic center of Maryland, surrounding

the City of Baltimore almost entirely. The

County is the largest jurisdiction in the

Baltimore metropolitan area. (The City of

Baltimore and the County are entirely

separate political units.) The County‟s

overall population grew by 6.7% from 2000

to 2010. This increase is based mostly in

two targeted growth areas – White Marsh

and Owings Mills.

The economic condition of the County has a

direct and significant effect on CCBC. For

example, 73% of credit students who

attended CCBC during FY2012 were

Baltimore County residents. In addition,

Baltimore County Government provides

significant revenue appropriations to CCBC

in the form of direct aid (approximately 22%

of CCBC‟s annual operating budget

excluding grant sources).

____________________________________________________________________________

iii

Baltimore County, with an estimated

population of approximately 805,029,

contributes approximately 423,480

participants to the region‟s labor force. The

County‟s economy is integrated with other

jurisdictions in the Baltimore metropolitan

area, as evidenced by the degree of inter-

jurisdictional commuting.

As of May 2012, Baltimore County‟s

unemployment rate was 7.5%. Even though

this rate is higher than the Maryland rate of

7.0%, Baltimore County‟s unemployment

rate still remains a point below the national

rate of 8.5%.

Within the “25 or older” age category, more

than 40% of the County‟s population holds

an Associate‟s degree or higher. Thus,

Baltimore County‟s workforce continues to

be a major asset for economic development

attraction for many business sectors.

Baltimore County enjoys a diverse

economic base, ranging from trade

transportation and utilities, education and

health services and governmental business

sectors. The County‟s 21,309 businesses

employ 423,480 workers. Major employers

include Franklin Square Hospital, Greater

Baltimore Medical Center, St. Joseph

Medical Center, Erickson Retirement

Communities, Sheppard Pratt Health

Systems, T. Rowe Price and McCormick &

Company, Inc. Additionally, the Social

Security Administration and Centers for

Medicare and Medicaid headquarters

together employ 16,000 federal workers.

Major Initiatives and Highlights The following paragraphs present several

initiatives and highlights from this eventful

year.

Middle States Reaccreditation Confirmed

The Middle States Commission on Higher

Education accredits degree-granting colleges

and universities in the Middle States region,

which includes Delaware, the District of

Columbia, Maryland, New Jersey, New

York, Pennsylvania, Puerto Rico, the U.S.

Virgin Islands, and several locations

internationally.

The Commission is a voluntary, non-

governmental, membership association that

defines, maintains, and promotes

educational excellence across institutions

with diverse missions, student populations,

and resources. It examines each institution

as a whole, rather than specific programs

within institutions.

At least once every ten years, a college is

evaluated to determine its continued

accreditation. The process includes a

rigorous internal self-study that usually

takes two years to complete. The evaluation

standards include measures of institutional

context (i.e. the College‟s mission, goals and

resources) and educational effectiveness (i.e.

student admissions and retention and student

support services).

In FY2012, CCBC completed its written

self-study and submitted it to the

Commission. A team of higher education

professionals from other institutions in the

Middle States Region evaluated CCBC and

its self-study in a visit in April, 2012. The

results have been received and CCBC is

has met all 14 standards of Excellence, an

increasingly rare accolade in a national

accreditation environment which

demands more rigorous assessment. In

the accreditation parlance of today, this

rating is equivalent to an A+.

____________________________________________________________________________

iv

Completion Agenda is Preeminent

President Barack Obama has set forth an

ambitious agenda for U.S. postsecondary

education to have the highest

proportion of college graduates

in the world by 2020. In the fall

of 2011, CCBC was awarded a

Title III grant to support its

goal of increasing student

engagement, persistence, and

completion rates. The award of

this grant enables CCBC to

expand its ongoing efforts to

address these success indicators

and to engage in a continuous

feedback loop through well-

defined evaluative criteria.

With its rigorous

developmental education and

student support goals, this grant

strengthens the initiatives of the

Achieving the Dream project and positions

the College to institutionalize practices of

success.

Recognized as one of the fastest-growing

colleges in the United States, one of the

nation‟s top 100 associate degree producers,

and Maryland‟s top transfer preparation

school, CCBC is poised to make a

considerable impact on the national and state

Completion Agenda to significantly increase

the number of degree, certificate and

credential completers. CCBC‟s completion

initiatives are summarized on the website.

http://www.ccbcmd.edu/commitment/index.

html

Information taken from the website:

Here are the facts:

Students who earn their associate degree

or certificate can expect to earn as much

as $8,000 more per year and about

$500,000 more in a lifetime than a high

school graduate.

People change jobs up to 10

times in their working lives –

and when you are job-

hunting, a college credential

will always give you an edge.

Credential holders are more

likely to keep their jobs.

Unemployment for

community college graduates

is typically 30 percent lower

than for high school grads.

College graduates tend to live

longer, healthier lives and the

children of college graduates

are more likely to graduate

themselves.

It is for these and many other reasons that in

FY2011 and FY2012 CCBC has developed

a comprehensive Completion Agenda

designed to maximize student success

through assessing outcomes, testing

innovations, expanding best practices and

fostering a culture of continuous

improvement.

More Capital Improvements at CCBC

CCBC has continued its aggressive capital

agenda. It serves about 70,000 students in

facilities totaling 1.6 million gross square

feet. Demonstrating the recent effort to

improve facilities, CCBC had about $221

million of construction projects in progress

as of June 30, 2012.

In FY2012, $6.2 million of renovations to

the library, café, bookstore and student

success center at CCBC Dundalk were

completed and made available for use.

http://www.ccbcmd.edu/commitment/index.html

http://www.ccbcmd.edu/commitment/index.html

____________________________________________________________________________

v

In the summer of 2010, CCBC began a

multi-phased project to renovate the Science

and Math building at CCBC Essex. Funds

were provided by County and State

appropriations as well as by CCBC‟s

operating funds. This $15.6 million project

was completed and opened for the fall 2012

session.

In FY2012, the one stop enrollment center at

CCBC Catonsville was completed. The

project was to centralize enrollment services

to best serve the student population. The

project cost was $1.3 million.

CCBC‟s Owings Mills project is making

good progress and is scheduled to open the

summer of 2013. The cost of this facility is

$27 million and will replace the existing

leased space at Owings Mills. The facility,

which will be shared with Baltimore County

Library, is programmed at 46,175 net

assignable square feet and will include

science labs, computer labs, smart

classrooms, offices, a bookstore, food

services, study areas, and storage areas.

CCBC Campus Smoke/Tobacco Free

The Board of Trustees has implemented a

tobacco-free policy effective July 1, 2012

that designates that the core of each campus

be smoke and tobacco free. In support of

this policy, the wellness center will continue

to facilitate cessation classes designed to

help users reduce or eliminate the use of

tobacco products. The classes are open to all

college employees and students at no cost.

This policy is supported by the

overwhelming evidence as presented by the

Center for Disease Control, the National

Institute of Health, the Surgeon General of

the United States, and the American Lung

Association, regarding the health effects of

tobacco use, smoking, and passive smoke.

This tobacco-free policy enables CCBC to

better support the State of Maryland Clean

Air Act of December 2007. This shift in

college policy better aligns CCBC with

similar policies of its funding agencies: The

State of Maryland and Baltimore County

governments, as well as Baltimore County

Public Schools. This new policy is similar

to the tobacco-free policies at other area

institutions, like Montgomery College,

Towson University, Howard Community

College, and Carroll Community College.

CCBC plays a key educational role in

promoting the lifelong intellectual and

physical health and well-being of its

citizens.

Sustainability at CCBC

CCBC has developed a Sustainability

Committee that endeavors to reduce the rate

at which the College contributes to the

depletion and degradation of natural

resources while also increasing its use of

renewable resources. It is the mission of the

Sustainability Committee to incorporate

concepts of sustainability into all aspects of

the academic and daily affairs of the

College. The College continues to make

great strides in the areas of climate change

and energy, consumption habits,

transportation and green building. CCBC

strives to “meet the needs of the present

without compromising the quality of life for

future generations.”

Merging of two CCBC Foundations

To complete the transition to “one college”,

the CCBC Essex Foundation merged with

the CCBC Foundation on July 1, 2011. This

merger allowed the pooling of resources to

promote unity amongst all facets of the

College – not just campus by campus, but

for the College as a whole. The combined

net assets of the Foundation total $8.8

million.

7

____________________________________________________________________________

vi

Fiscal Management CCBC is dedicated to making sure that budgets and budget processes are constantly reviewed, given the current fiscal climate. With fewer resources, CCBC actively manages the budgetary needs by being proactive and having open communication with its budget managers. CCBC works closely with the County to develop the changing needs of the College by requesting mid-year budget adjustments when necessary. Additionally, CCBC actively manages its expenses including operational staffing to ensure that budgetary targets are met. Since FY2008, CCBC has automatically “frozen” all non-faculty positions when they became vacant. Vacant positions were subject to review by senior management with prioritized periodic “thaws” which authorized the search for the replacement staff. At year end, approximately 80% of the vacancies were “thawed” and under search. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded an annual Certificate of Achievement for Excellence in Financial Reporting to The Community College of Baltimore County for its comprehensive annual financial report for the fiscal year ended June 30, 2011. This was the 14th consecutive year that CCBC has received this prestigious award. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program‟s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The development of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the CCBC Finance Office. I would like to express my appreciation to them and all other individuals who assisted in the timely preparation of this report. Respectfully submitted, Melissa L. Hopp Vice President of Administrative Services

____________________________________________________________________________

vii

Strategic Plan Overview EDUCATION from a 360° PERSPECTIVE

Mission Statement The Community College of Baltimore County provides an accessible, affordable and high-

quality education that prepares students for transfer and career success, strengthens the regional

work force and enriches our community.

Vision Statement We will be the institution of choice for students, where together we make teaching purposeful,

learning powerful, and community paramount.

Values

Learning: We celebrate learning and are committed to ensuring our students grow as learners,

develop a passion for lifelong learning, and use what they have learned to benefit the

community.

Responsibility: We encourage open and honest communication, fairness, mutual respect,

collegiality and civility in all college-related matters. We have high expectations for the work of

our employees, the academic rigor of our offerings, the scholarship of our students, and the

involvement of the community and the workplace in the college‟s future.

Integrity: We inspire public trust by maintaining ethical, honest and trustworthy relationships

with faculty, students, staff and community.

Inclusiveness: We welcome, respect and embrace the differences and similarities of our

employees, our students and the communities we proudly serve. We acknowledge the richness

of diversity and the dignity of all persons.

Excellence: We strive for personal and organizational improvement and the wise and prudent

management of our resources. We will continuously improve teaching and learning experiences

to meet or exceed the needs of the workplace and the highest expectations of our community.

____________________________________________________________________________

viii

CCBC Strategic Directions FY2011-FY2013 Student Success - We will guide students

to develop realistic and challenging goals

and provide appropriate student support

services to assist them in achieving their

goals, whether those goals lead to earning a

degree or certificate, obtaining transfer

credits, developing specific skills, or

enriching their personal lives.

We believe:

Individual student success is our

collective success.

Student success should be viewed as

a part of a continuum and series of

evolutionary events that form the

basis for lifelong learning.

Efforts to measure and track student

success must ultimately focus on

enhancing student outcomes.

The intellectual, cultural and

economic growth of individuals and

the community are direct outcomes

of student success.

Student success can be fostered both

within and outside of the classroom.

We will pursue the following goals and

continue to:

Make student success an ongoing

part of the college‟s daily work that

guides the college‟s efforts and

decision making.

Provide quality academic programs

that have depth and value and

challenge and develop the abilities of

all students.

Assure that outcomes, standards and

assessments reflect appropriate

academic criteria and/or industry-

based standards.

Challenge students using

intellectually rigorous teaching the

learning techniques to help them

meet academic standards and

expectations.

Support success for current and

prospective students by maintaining

student-oriented policies, practices

and programs.

Enrich whole-learning opportunities

for students by integrating student

development, service-to-community

and co-curricular initiatives with

academic activities.

Develop and incorporate high-

impact success strategies and

interventions for groups of learners

whose academic achievement is “at

risk”.

Provide regular faculty and staff

development opportunities to

support student success initiatives.

Measure and assess student

outcomes routinely, evaluate

multiple measures of student

achievement and success, and act

upon the results to improve student

outcomes.

Teaching and Learning Excellence –

We will provide and support a quality

educational experience for students by

ensuring state-of-the-art teaching that

combines outstanding faculty with

committed support and services staff.

We believe:

The strongest aspect of CCBC is its

emphasis on quality teaching and

learning.

Highly focused support services are

important for student entry, steady

progress and goal attainment.

All students, faculty and staff are

part of the teaching and learning

environment; all employees have a

responsibility to seek continuous and

measurable improvements in

____________________________________________________________________________

ix

programs and services that support

student success.

Student preparedness for and

engagement with higher education

are important in encouraging future

student success and lifelong

learning.


continue to:

Provide effective services that will

attract, enroll, engage and retain

students.

Expand teaching and learning

initiatives to promote a student

success-centered environment.

Create supportive learning

environments to help students

identify and achieve their goals.

Provide a learning environment that

values diversity, multiculturalism,

global awareness and inclusiveness.

Encourage students to develop an

appreciation for lifelong learning,

personal development, and

educational and professional

advancement.

Create opportunities inside and

outside of the classroom for students

to examine their abilities, reflect on

their academic effort, and develop a

healthy approach to learning.

Maintain our strong commitment to

provide quality programming and

services that have currency and

market viability.

Provide rigorous, intellectually

challenging and relevant outcomes-

based curricula, and offer specialized

formats and instructional delivery

systems aligned with our mission.

Deliver instruction using the most

effective teaching methods to foster

successful learning outcomes.

Review and assess existing curricula,

services and programs based on

student, community and workplace

needs, and develop new curricula to

support areas of targeted growth.

Coordinate credit and non-credit

programming to meet student,

workplace, work force and

community needs.

Organizational Excellence – We will

promote an organizational culture that

encourages excellence and success by

developing and supporting individuals,

teams and processes that contribute to the

effective and responsible management of

teaching and learning, student success,

human resources, facilities, services,

technology and finances.

We believe:

Appropriate change and renewal

must occur at all levels of the

organization to improve operations

across the college.

Efficiency, effectiveness and „best

practices” must be woven throughout

our daily tasks, processes, operations

and programs.

Our work is important to the mission

and vision for the college, and all

employees should be encouraged and

provided with the tools and support

they need to succeed.

All employees should be recognized

for their contributions to the college

and be valued as individuals.


continue to:

Rely on an effective planning

process and a system of continuous

assessment and improvement to

respond to and implement

appropriate change.

Provide the highest quality

managerial, administrative, and

____________________________________________________________________________

x

operational support for all strategic

directions to ensure organizational

viability and sustainability.

Align policies, evaluations,

processes and operations to ensure

appropriate consistency, fairness and

effectiveness across the college.

Support all levels of instruction.

Revitalize and enhance the physical

infrastructure, including buildings,

grounds, offices, classrooms,

campuses and sites.

Improve programs, services,

processes and operations by

upgrading technology in our

classrooms and office environments.

Maximize training and ongoing

support for all employees in the

effective use of technology needed to

perform their jobs.

Promote the personal and workplace

growth of all employees through

professional development and

opportunities.

Provide for safe, clean, secure and

respectful college environment for

our students, faculty, staff,

community and guests.

Utilize and build upon the rich

diversity of talents, skills and

perspectives of our students, faculty

and employees.

Improve communications to inform,

engage and involve our internal and

external communities.

Community Engagement – We will earn

the support and respect of our communities

by being a good neighbor and providing

beneficial learning experiences highly

valued by individuals, community

organizations, businesses, industries and the

county government.

We believe:

Earning and maintaining the support

of our communities by anticipating

and responding to their current and

future needs and interests is essential

to our mission.

Transparency and accountability to

our public and private supporters are

vital.

Respecting and honoring the close

attachments our unique communities

have to our individual campuses is

important in encouraging community

support and participation.

Continuous promotion and targeted

marketing for our programs and

services must be maintained to gain

student, community, business and

work force recognition.

Identifying and cultivating mutually

beneficial partnerships with

businesses, educational institutions,

not-for-profit organizations and

associations, and governmental

entities throughout the Greater

Baltimore region and the state are in

the best interests of CCBC.


continue to:

Involve our communities and groups

within our communities as partners

in our mission.

Meet the educational needs of the

county and the region by offering

credit and non-credit programs and

courses that respond to the changing

needs of our communities.

Build community awareness,

participation and support through

communications, services,

partnerships, cultural events and

marketing to bring attention to the

college‟s local impact, value and

merit.

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xi

Expand our relationships and

partnerships with high schools and

transfer institutions.

Bring about a richer learning and

working environment for all by

supporting a college community that

embraces the diversity of our

communities.

Renew and expand our affiliations

and partnerships with college

sponsors, donors, alumni and

supporters.

Seek external funds for learning and

student success, support,

infrastructure renovations,

maintenance, development and

college sustainability efforts to

advance strategic initiatives.

The strategic plan is updated every three

years and the plan for FY2014-2016 is

underway.

____________________________________________________________________________

xii

Board of Trustees As of June 30, 2012

The Community College of Baltimore County (CCBC) is considered a “body politic” under

Maryland state law as an instrumentality of the State of Maryland. CCBC is operated in

accordance with legislation specified in the Annotated Code of Maryland, Education Article, and

Title 16. CCBC is governed by a Board of Trustees (Board) of 15 members who are appointed

for five-year terms by the Governor of Maryland with the advice and consent of the State Senate.

The Board elects a chair and vice-chair annually from the members. The president of CCBC

serves the Board as secretary-treasurer. The members receive no salary, except reimbursement

for expenses incurred in attending meetings or transacting business of the Board. The Board is

responsible for establishing policy governing CCBC and of exercising general control over the

College.

The Board meets on a regular basis, generally six times a year in meetings that are open to the

public. Occasionally, in accordance with State law, the Board meets in executive sessions, not

open to the public, to discuss matters such as personnel issues, legal issues or site acquisition. All

official decisions of the Board are voted on at scheduled public meetings.

The members of the Board as of June 30, 2012 and their councilmanic districts are as follows:

Members District

Chair: The Honorable Barbara Kerr Howe 5

Vice Chair: Charles E. Kountz, Jr., Esq. 1

Other

Members:

Sheldon K. Caplis 2

Michael P. Ertel

Dorothy E. Foos 5

3

H. Scott Gehring, Ed.D. at large

Linda C. Goldberg 2

James G. Gresham, Ed.D. 4

Warren C. Hayman, Ed.D. 4

Gloria K. McJilton 7

Cecile V. Myrick 6

Wayne McDowell 1

Gloria E. Nelson 7

Stephen J. Nolan, Esq. 3

Patricia R. Norman

6

xiii

Principal OfficialsAs of June 30, 2012


of Baltimore County

President

Vice President,Enrollment and Student Services

Vice President,Institutional

Advancement

Vice President, Administrative

Services

Vice President, Instruction

President: Dr. Sandra L. Kurtinitis

President's Staff

Vice President of Instruction: Dr. Mark McColloch

Vice President of Enrollment and Student Services: Dr. Richard Lilley

Vice President of Administrative Services: Melissa L. Hopp

Vice President of Institutional Advancement: Kenneth A. Westary


of Baltimore County


financialsection

MCM LV I I


i student success

CCBC will guide students to develop realistic and

challenging goals and provide appropriate student

support services to assist them in achieving their

goals, whether those goals lead to earning a degree or

certificate, obtaining transfer credits, developing specific

skills, or enriching their personal lives.

1

Independent Auditor’s Report Board of Trustees The Community College of Baltimore County Baltimore, Maryland We have audited the accompanying financial statements of the business-type activities and the aggregate discretely presented component units of The Community College of Baltimore County (a component unit of Baltimore County) as of and for the year ended June 30, 2012, which collectively comprise The Community College of Baltimore County’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of The Community College of Baltimore County’s management. Our responsibility is to express an opinion on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, based on our audit, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and the aggregate discretely presented component units of The Community College of Baltimore County as of June 30, 2012, and the respective changes in financial position and cash flows of its business-type activities and changes in net assets of its discretely presented component units, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated September 26, 2012 on our consideration of The Community College of Baltimore County’s internal control over financial reporting and on 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 and should be considered in assessing the results of our audit.

CliftonLarsonAllen LLP www.cliftonlarsonallen.com

2

Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and Schedule of Funding Progress for Other Postemployment Benefits 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. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise The Community College of Baltimore County’s basic financial statements. The other supplementary information listed in the table of contents is presented for purposes of additional analysis and is not a required part of 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 financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The other data, listed under the “Introductory” and “Statistical Section” in the table of contents, have not been subjected to the auditing procedures applied in the audit of the component unit financial statements and, accordingly, we express no opinion on them.

a Baltimore, Maryland September 26, 2012

____________________________________________________________________________

3

MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012

This section of The Community College of Baltimore County‟s (College) basic financial

statements presents management‟s discussion and analysis (MD&A), providing an overview of

its financial activities as of and for the years ended June 30, 2012, 2011 and 2010. The intent of

this review is to look at the College‟s financial performance as a whole. This analysis should be

read in conjunction with the financial statements on pages 22 through 24, as well as the more

detailed information in the related notes to the financial statements on pages 25 through 50. The

MD&A, financial statements and the related notes are the responsibility of management.

This narrative explaining management‟s review and analysis of the June 30, 2012 financial

statements is divided into the following five parts:

An overview of all of the College‟s financial statements and financial highlights.

An analysis of the College‟s Statement of Net Assets.

An analysis of the College‟s Statement of Revenues, Expenses and Changes in Net

Assets.

A review of the conditions that may affect the College‟s future financial position.

An analysis of the CCBC Foundation (a Discretely Presented Component Unit) financial

activity.

OVERVIEW OF CCBC’S FINANCIAL STATEMENTS

The College‟s three basic financial statements are prescribed by the Governmental Accounting

Standards Board (GASB): the Statement of Net Assets, the Statement of Revenues, Expenses

and Changes in Net Assets, and the Statement of Cash Flows. These statements demonstrate the

net value of assets and the results of operations on a college-wide basis and include the results of

the CCBC Foundation, which is presented as a component unit in accordance with GASB 39.

The supplementary information section contains statements and schedules, which are

informational in their support to the college-wide financial statements. All statements are

prepared using the accrual basis of accounting similar to the accounting method used by most

private-sector companies. This accrual basis of accounting records all of the current year‟s

revenues and expenses regardless of when cash is received or paid.

The major impact on operations in FY2012 were the leveling off of the growth in student

enrollment, the continual stability of governmental support to the College, CCBC‟s efficiency

measures and the aggressive capital agenda to improve and maintain the learning facilities for the

students, faculty and staff.

____________________________________________________________________________

4

MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 Full-time Equivalent (FTE) Students - Total FY2012 student enrollment approximated actual

FY2011 FTE, but was 2.7% lower than budgeted FTE. Overall, CCBC‟s enrollment has grown

34.1% over the past four years. With the stabilization of enrollment in FY2012, we believe that

an education at CCBC remains attractively priced and maintains quality educational and training

opportunities.

The chart below reflects credit and non-credit student FTE for the last five years. It illustrates

the stabilization of the previously significant growth rate in FY2012 for credit and non-credit

enrollment.

Government Support/Appropriations – CCBC‟s mission is supported by “operating revenues”

which include tuition and fees, auxiliary sales, as well as “non-operating revenues” which

include state appropriations, county appropriations and grants. For FY2012, governmental

support has remained relatively stable with the increase in the state support created by CCBC‟s

allocation of the Keeping Education Affordable Grant in the amount of $728,018.

The following table illustrates that the support the College received from both the County and

State has remained stable over the last several years.

FY2012 FY2011 FY2010

2012/11 2011/10

State appropriations 34,398,366$ 33,670,348$ 34,524,096$ 2.2% -2.5%

County appropriations 38,462,795 38,262,795 38,332,055 0.5% -0.2%

Total 72,861,161$ 71,933,143$ 72,856,151$ 1.3% -1.3%

Percent Change

____________________________________________________________________________

5

MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 Cost Efficiencies – In FY2012 and prior years, CCBC has worked diligently to ensure that it is

cost efficient. CCBC employed various specific cost saving/sustainability initiatives during

FY2012.

To maintain its lean cost structure, salary has been managed through the implementation

of a hiring “chill”, which requires senior management review and approval of every

vacated position prior to replacement.

CCBC continues to implement the appropriate reductions in non-essential expenditures

through the strategic budget development and monitoring process.

In an effort to continue to capture additional cost efficiencies, CCBC continues to support

the Dollar Reduction through Efficient and Active Management (D.R.E.A.M.) team.

Ideas for conservation and other cost efficiencies as well as suggestions for “best

practices” are submitted from all segments of the college community. After a feasibility

review, ideas are put into practice as new procedures or other cost avoidance programs.

Capital Agenda – CCBC continues to concentrate on the renewal of and enhancements to

physical infrastructure, including buildings, offices and classrooms. CCBC‟s goal is to also

provide for safe, clean and secure classroom and workplace environments for students and

employees. Therefore the agenda for capital improvements continues to be aggressive to meet

those needs. Demonstrating this trend, the total amount for net capital assets (i.e. capital assets

less depreciation) in FY2012 is $149.86 million versus $133.25 million for FY2011. The chart

below reflects the significant upward trend in total net capital assets for the last five years.

____________________________________________________________________________

6

MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 In FY2012, total net capital assets increased by $16.61 million representing an increase in

depreciable capital assets of $24.83 million less additional depreciation of $8.22 million. There

were several funding sources used to finance this increase in capital assets. These include capital

funding from the State of Maryland and Baltimore County, FY2012 operating funds, the Board

Designated Spectrum Fund, two long term capital leases, and grant monies received from the

U.S. Department of Labor.

As the years have taken its toll on the College‟s older buildings, infrastructure, and facilities,

CCBC continued its aggressive capital agenda in FY2012 to provide for much needed

renovations and repairs. The construction of new buildings and extensive additions and

renovations to existing facilities will continue to remain a priority.

During FY2012, funds of $23.89 million were used for the following capital projects shown

below.

There were four significant capital projects at various stages of completion in FY2012.

In June 2012, CCBC completed the $16.10 million Science

Lab Renovation project at CCBC Essex. The scope of work

for this project included the renovation of 13 science labs

and the abatement and replacement of the entire eight story

brick façade. CCBC received a certificate of occupancy in

August 2012 and the building was open for fall 2012

classes.

Project Description Amount

Science Labs Renovations - CCBC Essex 10,894,420$

Library Renovation - CCBC Dundalk 3,106,936

Multi-Building Reroofing - CCBC - All campuses 2,961,417

Central Hot/Chilled Water Facility - CCBC Catonsville 1,629,834

Brick Pavers & Concrete - CCBC - All campuses 861,199

Bituminous Removal/Replacement - CCBC Catonsville and Essex 816,305

Various renovations - CCBC Catonsville 720,471

HVAC Upgrades, Library, One -Stop Shop - CCBC Catonsville 665,649

G Building, Alterations to Spaces, R Building Renovations - CCBC Essex 616,176

Video Security Infrastructure - CCBC - All campuses 470,892

Restroom Renovations/Asbestos Abatement - CCBC - All campuses 437,919

Other projects less than $100,000 each - CCBC - All campuses 712,470

23,893,688$

____________________________________________________________________________

7


The new $27.63 million Owings Mills Learning Center is a

120,000 gross square foot (GSF) building that will be a

shared facility with Baltimore County Public Library. The

first two levels of the Center is approximately 40,000

square feet and will be occupied by the Library. CCBC will

occupy the remaining 80,000 square feet. CCBC‟s new

facility will have classrooms, labs, corporate training

rooms, a bookstore, and a one-stop registration center. A

groundbreaking ceremony was held in July 2011 and

construction is expected to be completed in February

2013. CCBC will open the center for summer 2013 classes. The new Owings Mills Center

is being constructed to achieve LEED-Silver certification.

In July 2011, CCBC began the design to convert the old library at CCBC Catonsville into a

new state-of-the-art math and science building. This is a $39.46 million project and will be

done in two phases. Phase I will include the renovation of the existing 46,000 gross square

foot building and phase II will include the construction of a 50,000 gross square foot

addition. The design is expected to be completed in October 2012 and construction will

begin in January 2013 with a projected May 2017 completion date.

In March 2012, CCBC completed phase

II of the $6.20 million Library and

Ancillary Spaces Renovation project at

CCBC Dundalk. Phase II included the

creation of an interior campus “main

street.” The location serves as a campus

gathering and focal point and from

where main services such as the

bookstore, café, and student success

center are accessed. A ribbon cutting

ceremony was held on May 2, 2012 and

attendees included College faculty,

staff, students, elected officials,

community leaders and members of the public. Phase I of this project included the re-

location and renovation of CCBC Dundalk‟s 19,500 GSF library and was completed in June

2011.

____________________________________________________________________________

8


ANALYSIS OF CCBC’S STATEMENT OF NET ASSETS

The Statement of Net Assets includes all assets and liabilities of the College. This statement is

prepared using the accrual basis of accounting, whereby revenues and assets are recognized

when the service is provided, and expenses and liabilities are recognized when others provide a

service to the College, regardless of when cash is exchanged.

Captured in the table below are the highlights of the components of the net assets (in millions) as

of June 30, 2012, 2011 and 2010:

A review of the net assets at June 30, 2012 indicates the following:

Cash and cash equivalents - At June 30, 2012, the College had $18.98 million in cash and

invested balances which are an increase of $3.47 million from the $15.51 million balance on

June 30, 2011 and a $1.50 million increase from June 30, 2010. The current period increase can

be attributed to the receipt of state capital reimbursement in the amount of $3.74 million that was

subsequently repaid to the County in the first quarter of FY2013.

CCBC‟s invested cash balances continue to be secure but earn a very modest current market

interest rate. As of June 30, 2012, the invested cash balances were earning approximately

0.14%, slightly higher than the rate as of June 30, 2011, which was 0.10%. CCBC‟s funds are

invested in a traditionally stable and extremely safe investment, called the Maryland Local

Government Investment Pool. Additional cash balances are maintained in a demand deposit

account with M&T Bank that is covered by a combination of FDIC and blanket collateral

coverage.

2012 2011 2010 2012/11 2011/10

Assets

Cash and cash equivalents $ 18.98 $ 15.51 $ 17.48 22.4% -11.3%

Other current assets 15.48 16.52 17.79 -6.3% -7.1%

Net capital assets 149.86 133.25 120.71 12.5% 10.4%

Net OPEB Asset 0.00 0.00 2.10 0.0% -100.0%

Total assets $ 184.33 $ 165.28 $ 158.08 11.5% 4.6%

Current liabilities $ 27.03 $ 24.11 $ 26.70 12.1% -9.7%

Noncurrent liabilities 10.65 4.20 1.77 153.7% 136.8%

Total liabilities $ 37.68 $ 28.31 $ 28.47 33.1% -0.6%

Invested in capital assets $ 148.48 $ 131.48 $ 120.71 12.9% 8.9%

Unrestricted -1.84 5.49 8.90 -133.5% -38.4%

Total net assets $ 146.65 $ 136.97 $ 129.61 7.1% 5.7%

Liabilities

Net Assets

Percent Change

____________________________________________________________________________

9


Other current assets – These assets consist of accounts receivable, bookstore inventory, deferred

or prepaid charges and other assets as shown in the following schedule.

Federal, state, county and local accounts receivable was lower in FY2012, compared to both

prior years. This is largely attributed to the more timely reimbursements from the state. Tuition

receivables increased as tuition has trended higher. Net capital assets – The schedule below includes a presentation of capital assets, which includes

the recording of depreciation. CCBC‟s capital assets (in millions) as of June 30, 2012, 2011 and

2010 are presented in the table below.

As further evidence of the College‟s aggressive capital agenda, CCBC‟s capital assets have

increased cumulatively by over 24.1% in the past three years. The most significant increases

Other Current Assets (in millions) 2012 2011 2010 2012/11 2011/10

Accounts Receivable:

Federal, state, county and local $ 10.06 $ 10.93 $ 13.40 -8.0% -18.4%

Tuition receivable, net 3.62 3.67 2.43 -1.1% 50.6%

Inventories 1.71 1.86 1.85 -8.1% 0.5%

Deferred charges and other assets 0.09 0.06 0.11 38.9% -43.7%

Total Current Assets $ 15.48 $ 16.52 $ 17.79 -6.3% -7.1%

Percent Change

Capital Assets 2012 2011 2010 2012/11 2011/10

Land $ 4.80 $ 4.80 $ 4.80 0.0% 0.0%

Buildings 158.93 151.74 122.24 4.7% 24.1%

Infrastructure 25.24 25.24 24.09 0.0% 4.8%

Equipment 19.65 19.02 18.39 3.3% 3.4%

Vehicles 2.43 2.28 2.37 6.3% -3.6%

Library materials 6.72 6.46 6.07 4.0% 6.4%

Capital lease 2.07 2.05 - 0.7% 0.0%

Construction in progress 29.78 13.18 27.28 126.0% -51.7%

249.61 224.77 205.24 11.1% 9.5%

Accumulated depreciation -99.75 -91.52 -84.53 9.0% 8.3%

Net capital assets $ 149.86 $ 133.25 $ 120.71 12.5% 10.4%

Percent Change

____________________________________________________________________________

10

MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 have been in the buildings and construction in progress lines. In FY2011, the CCBC Catonsville

library was completed and capitalized at $26.63 million. This was followed up by the FY2012

capitalization of CCBC Dundalk library and the G building at CCBC Essex. For FY2012,

construction in progress is higher as the renovations of the science lab at CCBC Essex, the

library at CCBC Dundalk and the reroofing projects on all CCBC campuses near completion.

Vehicles increased due to the purchase of four vehicles – two shuttles for College transportation

of students between campuses and two public safety vehicles.

In the previous year, CCBC entered into a five-year lease purchase contract for $1.90 million to

replace obsolete data network equipment including switches, UPS units and software

configuration and implementation services. Furthermore, this acquisition allowed the College to

meet several key objectives. There are four years remaining on the lease. Refer to Note 5 (pg.

39) for details of the capital asset categories and amounts.

Current liabilities – Current liabilities include accounts payable and accrued expenses of $19.13

million, which is $3.31 million higher than FY2011 and $0.50 million lower than FY2010. The

chart below shows a comparison of current liabilities for the last three fiscal years.

The fluctuation in the accounts payable/accrued expenses over the last three years was primarily

due to the timing of payments related to capital projects and the related accrued expenses, which

caused a decrease from FY2010 to FY2011 and was followed by an increase in FY2012.

Compensated absences and accrued salaries have cumulatively grown by approximately 12.7%

over the past three years. There were 85 employees who retired from CCBC in FY2012. The

accrual for the payout of vacation leave balances explains the increase in this area. These

payouts will occur in the first quarter of FY2013. Compensated absences represent the

accumulation of earned vacation that is shown as a current (accumulation of 4 weeks) and long

term liability (accumulation of amounts exceeding 4 weeks up to a total of 8 weeks) on the

Statement of Net Assets. Accrued salaries represent salary expense that has been incurred, but

not paid until the next fiscal year.

Current Liabilities (in millions) 2012 2011 2010 2012/11 2011/10

Accounts payable/accrued expenses $ 11.59 $ 8.65 $ 12.94 34.0% -33.1%

Accrued compensated absences 3.88 3.41 3.24 13.8% 5.4%

Accrued salaries 3.66 3.76 3.45 -2.7% 8.9%

Unearned revenue 5.92 6.10 5.56 -2.9% 9.8%

Capital leases 0.45 0.41 0.00 9.8% 0.0%

Deposits held in custody for others 1.53 1.78 1.51 -14.1% 17.7%

Total Current Liabilities $ 27.03 $ 24.11 $ 26.70 12.1% -9.7%

Percent Change

____________________________________________________________________________

11


As explained on the previous page, the capital lease that commenced in FY2011 was for the

upgrade and enhancement of the IT infrastructure. The capital lease payments that are due within

the next 12 months are shown as a current liability. The portion paid in FY2012 was $390,738.

See Note 7 (pg. 40) for more details on these capital leases.

Deposits held in custody for others are fairly stable over the past two years with an overall

change of 2.0%. A large portion of this liability grouping is historically attributed to funds

related to CCBC‟s student government and student athletics. These funds are used to support

student activities and are self-supporting based upon student activity fees.

Noncurrent liabilities – Noncurrent liabilities consist of accrued compensated absences (beyond

the next 12 months), capital leases and CCBC‟s OPEB obligation. Total noncurrent liabilities of

$10.65 million have increased by $6.45 million or 153.7% since FY2011. The majority of this

change is attributed to the increase in the Net OPEB obligation partially offset by the payment of

the obligation under capital leases in FY2012. The chart below shows a comparison of current

liabilities for the last three fiscal years.

Baltimore County‟s OPEB plan is a multiple employer postemployment healthcare plan which

includes five employers: Baltimore County, Baltimore County Public Schools, Baltimore County

Library system, Baltimore County Revenue Authority and CCBC. The plan is administered as a

trust. In FY2012, CCBC‟s OPEB liability increased by $6.86 million due to the increase in the

calculated AOC (annual OPEB contribution) per the actuarial report.

Invested in Capital Assets – The $148.48 million in FY2012 consists of the total net capital

assets of $149.86 million less the $1.38 million total liability for capital leases.

Unrestricted Net Assets – Unrestricted net assets decreased by $7.33 million from FY2011 to

FY2012 due to largely to the increase in the net OPEB liability (NOO) in the amount of $6.86

million and a small portion attributed to the FY2012 spend down of the Board designated

restricted fund containing the HITN proceeds for various projects.

Noncurrent Liabilities (in millions) 2012 2011 2010 2012/11 2011/10

Accrued compensated absences $ 1.98 $ 1.96 $ 1.77 1.3% 10.4%

Net OPEB Obligation (NOO) 7.74 0.88 0.00 779.2% 100.0%

Obligations under capital leases 0.93 1.36 0.00 -31.7% 100.0%

Total Current Liabilities $ 10.65 $ 4.20 $ 1.77 153.7% 136.8%

Percent Change

____________________________________________________________________________

12

MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 REVENUES, EXPENSES AND CHANGES IN CCBC’S NET ASSETS

The Statement of Revenues, Expenses and Changes in Net Assets presents the revenues earned

and the expenses incurred during the year using the business model as prescribed by GASB.

Activities are classified as either operating or nonoperating. Generally, a public college, like

CCBC, will report an operating loss as the required financial reporting model classifies state and

local appropriations, in addition to grants, as nonoperating revenues. The utilization of capital

assets is reflected in the financial statements as a cost of depreciation.

The following schedule includes the components of the revenues, expenses and changes in

CCBC‟s net assets for the years ended June 30, 2012, 2011 and 2010 (in millions):

Operating Revenues and Expenses 2012 2011 2010 2012/11 2011/10

Operating revenues:

Student tuition and fees $ 60.94 $ 58.64 $ 51.99 3.9% 12.8%

Auxiliary enterprises 8.84 9.28 6.89 -4.8% 34.7%

Other 2.31 1.95 2.04 18.6% -4.6%

Total operating revenues 72.09 69.87 60.92 3.2% 14.7%

Operating expenses:

Instruction 88.70 85.56 79.01 3.7% 8.3%

Public service 0.40 0.39 0.39 2.3% -0.9%

Academic support 11.33 11.70 10.81 -3.2% 8.2%

Student services 17.65 17.43 16.76 1.2% 4.0%

Institutional support 33.57 31.00 28.37 8.3% 9.3%

Operation and maintenance of plant 15.24 14.27 14.74 6.8% -3.2%

Depreciation 8.22 7.06 5.98 16.4% 18.2%

Student aid 19.70 19.14 14.14 2.9% 35.4%

Auxiliary enterprises 10.79 10.87 10.34 -0.7% 5.1%

Certain fringe benefits paid directly by State of Maryland 7.27 7.07 6.43 2.9% 9.9%

Other 11.34 5.65 0.99 100.7% 469.2%

Total operating expenses 224.22 210.15 187.96 6.7% 11.8%

Operating loss -152.13 -140.28 -127.03 8.4% 10.4%

Nonoperating Revenues and Expenses

State appropriations 34.40 33.67 34.52 2.2% -2.5%

Certain fringe benefits paid directly by the State 7.27 7.07 6.43 2.9% 9.9%

County appropriations, net of debt service 38.46 38.26 36.86 0.5% 3.8%

Grants 54.84 50.58 43.00 8.4% 17.6%

Gifts 0.45 0.44 0.52 3.2% -16.7%

Interest income 0.01 0.02 0.03 -39.7% -13.0%

Disposal of assets 0.00 -0.02 0.00 -100.0% 100.0%

Net nonoperating revenues 135.44 130.02 121.36 4.2% 7.1%

Loss before other revenues, expenses, gains, or losses -16.69 -10.26 -5.67 62.8% 80.9%

Other Revenues

County capital appropriations 25.75 17.01 23.64 51.4% -28.1%

State capital appropriations 0.61 0.61 0.65 0.0% -6.7%

Total other revenues 26.36 17.62 24.29 49.6% -27.5%

Increase in net assets $ 9.67 $ 7.36 $ 18.61 31.4% -60.5%

Percent Change

____________________________________________________________________________

13

MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 Revenue - The impact of the slight decrease in student enrollment flowed through tuition and fee

revenue, bookstore revenue (auxiliary enterprises) as students purchased fewer textbooks and

grants. More students received Pell awards and the maximum Pell award remained consistent at

$5,550 per student. The table below contains a comparison of the main sources of revenue (in

millions) for the last three fiscal years.

2012 2011 2010 2012/11 2011/10

Student Tuition $ 60.94 $ 58.64 $ 51.99 3.9% 12.8%

County Appropriations 38.46 38.26 36.86 0.5% 3.8%

State Appropriations 34.40 33.67 34.52 2.2% -2.5%

Grants 54.84 50.58 43.00 8.4% 17.6%

Auxiliary 8.84 9.28 6.89 -4.8% 34.7%

Other 36.40 27.08 33.31 34.4% -18.7%

Total revenues $ 233.89 $ 217.51 $ 206.57 7.5% 5.3%

Comparative Sources of Revenues

Percent Change

____________________________________________________________________________

14

MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 Total revenue increased by $27.32 million or 13.2% over the past two years. The significant

revenue changes are described below.

Student Tuition – CCBC has experienced stabilization in enrollment in FY2012. Traditional

high school graduates are still turning to CCBC as a source of a more affordable cost of higher

education. There are also students who are selecting CCBC due to the unique or competitive

offerings such as Cyber Security and Dental Hygiene. Credit tuition was impacted by the level of

enrollment and modest tuition increase in both FY2011 and FY2012. As shown in the following

table, tuition amounts, as presented in accordance with GAAP, are net of the portion of Pell

grants that covered student tuition.

FY2012 FY2011 FY2010

Total Tuition and Fees $81,916,855 $75,792,144 $65,774,036

Less Student Aid (20,975,047) (17,148,877) (13,781,340)

Net Tuition and Fees $60,941,808 $58,643,267 $51,992,696

Pell Grants – Pell grants rose by $24.05 million or 129.2% from FY2009 to FY2012 due to an

increase in Pell award amounts and the number of students who were eligible. It is anticipated

that the growth in Pell grants will stabilize due to recent changes in legislation that has imposed

more strict guidelines for Pell awardees to continue to receive benefits.

The College Affordability Act along with the American Recovery and Reinvestment Act

(ARRA) is enabling more

students to qualify for Pell

grants, but has implemented

more strict guidelines for

current recipients in order

for them to continue to earn

the award. For award year

2011-2012, the maximum

Pell grant was at the same

level as the prior year,

which was $5,550 per

student. The chart on right

shows the relation of Pell

grants as compared to other

grant sources.

Other grants - The College was awarded a three year ARRA grant from the Department of

Labor for Healthcare in the amount of $4.90 million to assist in the training of individuals

enrolled in nursing fields for both credit and noncredit. Since this is a sizable grant, the

expenditures are impacting the restricted budget considerably. The College also received two

other ARRA grants

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15

MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 from pass-through agencies, with a combined budgeted expenditure of almost $900K for

workforce training. Another grant is a Department of Labor construction grant to provide

construction and related trade skills training. There is also a four year grant from MHEC in the

amount of approximately $1.20 million that will be used to maximize nursing retention by

providing tutoring and supplemental instruction to nursing students. These grants are in addition

to ongoing significant activity with regards to MSDE Perkins IV program improvement and

Federal TRIO program funding. Additionally, the State of Maryland provided the College with a

Keeping Education Affordable Grant in the amount of $728,018, as part of a statewide effort to

control the level of tuition increases at public institutions.

Auxiliary Enterprises – The decrease in revenue follows the modest decrease in enrollment,

creating a lower demand for textbooks and related instructional materials supplied to the students

through bookstore operations. In FY2012, CCBC piloted and subsequently implemented a book

rental program. This program is in response a College goal to provide more affordable

alternatives for students with regards to textbook purchases. The rentals are available to students

at a lower cost than the retail amount for the books. The total revenue from the rental program

including rebates is $247,431, indicating the success of this program.

Operating Expenses- Total expenses were $224.21 million for the year ended June 30, 2012

representing an increase of $14.06 million or 6.7% from the FY2011 expenses of $210.15

million. The table below contains a functional comparison of expenditures for the last three

fiscal years (expressed in millions).

The significant changes in expenses are further described below:

The increase in other expenses is attributable to the increase in Net OPEB cost, increase in

depreciation of CCBC‟s net capital assets, and the increase in expenses related

2012 2011 2010 2012/11 2011/10

Instruction $ 88.70 $ 85.56 $ 79.01 3.7% 8.3%

Public Service 0.40 0.39 0.39 2.3% -0.9%

Academic Support 11.33 11.70 10.81 -3.2% 8.2%

Student Services 17.65 17.43 16.76 1.2% 4.0%

Institutional Support 33.57 31.00 28.37 8.3% 9.3%

Plant 15.24 14.27 14.74 6.8% -3.2%

Auxiliary 10.79 10.87 10.34 -0.7% 5.1%

Student aid 19.70 19.14 14.14 2.9% 35.4%

Other 26.83 19.79 13.40 35.6% 47.7%

Total expenses $ 224.21 $ 210.15 $ 187.96 6.7% 11.8%

Comparative Operating Expenses

Percent Change

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16

MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 to facility repairs and maintenance, library materials and capital expenses funded by the Board

designated funds.

As would be expected, CCBC devotes the majority of its resources to instruction, academic and

student support services. Of the total, 61.3%, 63.7% and 64.2% of CCBC‟s expenses were

focused on direct student interaction and support in FY2012, FY2011 and FY2010 respectively.

The chart below shows the percentage breakdown of operating expenses for FY2012.

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17

MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 The schedule below represents the operating expenses by object classification for three years (in

millions).

As with all colleges and universities, the largest expense is for salaries and fringe benefits. As a

highly intensive human capital organization, CCBC expects to spend the majority of its funds on

compensation. Yet, the College was still able to effectively manage salaries and fringe benefits

and reduce this level of cost from 65.3% in FY2011 to 63.4% in FY2012 due to the “hiring

chill”, which involves a management review of each personnel vacancy prior to authorization for

replacement. CCBC‟s second largest expense is for student aid, followed by contractual services or services

from outside parties to benefit all functional areas of the College. Contractual services increased

by $1.88 million or 7.7% due to higher costs of facility maintenance repairs, software

maintenance and interpreter services.

Due to CCBC‟s continued sustainability efforts, a slight drop in electricity rates and lower

heating costs due to the mild winter, utility expenses in FY2012 were the lowest of the last three

years at only $2.92 million. Some of CCBC‟s conservation efforts include the following:

CCBC aggressively shuts down or reduces capacity on HVAC equipment during college

breaks and holidays. In FY2009 through FY2012, we saved $322,000 in utility costs

through conservation efforts. CCBC adopts an energy conservation calendar each year to

plan for these “heating and cooling holidays”.

All college instructional and office computer workstations are powered down via network

commands at 11:00 pm each day. As a result, savings of approximately $40/year in

2012 2011

2012 2011 2010

Percent of

Expense

Percent of

Expense

Salaries and fringe benefits $ 142.05 $ 137.29 $ 128.77 63.4% 65.3%

Contracted services 17.23 15.35 13.78 7.7% 7.3%

Supplies and materials 4.87 4.66 4.55 2.2% 2.2%

Utilities 2.92 3.53 4.08 1.3% 1.7%

Furniture and equipment (non capital) 6.74 4.12 2.72 3.0% 2.0%

Depreciation 8.22 7.06 5.98 3.7% 3.4%

Student aid 19.70 19.14 14.14 8.8% 9.1%

Cost of goods sold 8.53 8.92 8.46 3.8% 4.2%

Other 13.96 10.08 5.48 6.2% 4.8%

Total $ 224.21 $ 210.15 $ 187.96 100.0% 100.0%

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18


electrical costs for each workstation. Since, CCBC has over 6,000 computer

workstations, this effort results in savings that approximate $240,000.

CCBC installed occupancy sensors in some classrooms, offices and conference rooms.

Every classroom and office light switch has a reminder sticker to turn off the lights to

save energy.

Expenses for small furniture and equipment purchases and depreciation of capital assets have

increased in the past year. Again, this trend demonstrates CCBC‟s aggressive capital agenda as

more buildings are renovated and supplied with new furniture and equipment.

CONDITIONS THAT WILL IMPACT FUTURE FINANCIAL POSITION AND RESULTS OF OPERATIONS

Baltimore County and the State of Maryland provide significant resources to CCBC and as such,

the economic condition of the state and local region has a major bearing on the future economic

health of CCBC. The following are some of the factors that will impact the future operations of

the College:

CCBC‟s FY2013 operating budget of $273.44 million, reflects a 5.0% increase over

FY2012. The continued availability and funding of federal financial aid will influence

this revenue.

The State of Maryland FY2013 budget for state aid is $34.40 million, which is the same

amount as FY2012. The FY2013 County funding will also be 1.5% higher than FY2012,

due to increases in debt service.

The continued and relatively stable funding from both the state and the county shows the

support of the College‟s program offerings.

In addition to the above trends on the state and local governmental landscape, there are other

factors which will influence CCBC‟s future fiscal picture.

For FY2013, CCBC‟s enrollment is budgeted to be 20,948 in full-time equivalent (FTE)

students (15,950 credit and 4,998 non-credit). The fall 2012 semester is projected to have

a 3.0% decrease in enrollment compared to fall 2011 for credit enrollment, which

stabilizes the upward trend that had commenced in FY2008. Even in spite of the slight

decline, students are still continuing to opt for a more economical means to achieve an

education as compared to the first two years of a four year institution and other students

are being faced with a need for retraining and other workforce development options.

The governmental accounting standard directs how state and local governments account

for and report other post-employment benefits obligations. Other post-employment

benefits include healthcare premiums, dental insurance premiums and vision

____________________________________________________________________________

19


insurance premiums. Effective July 2012, CCBC implemented a modification to the

“vesting” schedule to earn participation in postemployment healthcare. This caused an

uptick in the level of retirements in June, but will help to make these benefits more

sustainable.

The ground breaking for the new Owings Mills Center was held in July 2011. The $27.63

million education complex will function as a full service, comprehensive learning

facility, which will contain several specialized labs for science, art and technology. The

facility will be shared with a branch of Baltimore County Public Library and will offer

additional classroom space. The project is expected to be completed by the spring of

2013 with classes to be held starting the summer of 2013. Having a larger presence in

that area may entice more students to attend classes at that location and allow for

continued stabilization of enrollment.

In addition to the Owings Mills Center, there are several other capital projects that will

affect the future financial position of CCBC. One is the renovation of the science

building at CCBC Essex. The building is open for fall classes. The second is the

renovation of the old library at CCBC Catonsville to a state-of-the-art Science,

Technology, Engineering and Mathematics facility that will also include additional

classroom and laboratory space. The first phase of renovations will begin in FY2013.

Of the most recent retirees, the average years of service were twenty-five. For this

reason, CCBC is working diligently to enhance overall intellectual capital preservation

through professional development/training and mentoring efforts as a part of the FY2011-

FY2013 Strategic Direction of Organizational Excellence and will be enhanced for the

FY2014-FY2016 Strategic Direction.

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20


DISCRETELY PRESENTED COMPONENT UNIT – CCBC FOUNDATION

In accordance with Governmental Accounting Standards Board Statement No. 39, Determining

Whether Certain Organizations are Component Units, the foundation that is affiliated with

CCBC is reported as a discretely presented component unit, as described in the notes to the

financial statements.

Presented below is a comparison of the CCBC Foundation revenues and expenses. The

foundation contributed a total of $901,011 in FY2012 to provide scholarships to our students and

supplemental support to a variety of college programs. This compares to a level of support of

$734,101 in FY2011 and $669,135 in FY2010.

Net assets for the Foundation increased and are $8.82 million, which is 2.6% higher than

FY2011. The improvement at the Foundation is caused by increased operating revenues as

contributions increased by 11.3%, partially offset by increased support of students and a less

positive growth in the portfolio.

Amounts expressed in millions

2012 2011 2010 2012/11 2011/10

Revenues

Operating revenues:

Contributions $ 1.03 $ 0.93 $ 0.50 11.3% 86.9%

In-kind contributions 0.28 0.28 0.28 1.3% 0.1%

Special events and other 0.28 0.25 0.27 10.4% -7.4%

Total operating revenues 1.59 1.46 1.04 8.5% 40.4%

Expenses

Operating expenses:

Student aid 0.90 0.73 0.67 22.7% 9.7%

Fundraising and other 0.47 0.45 0.44 2.7% 3.8%

Total operating expenses 1.37 1.18 1.11 16.1% 6.5%

Operating income 0.22 0.28 -0.06 -19.9% -532.6%

Nonoperating revenues

Investment income 0.01 0.83 0.49

Total nonoperating revenues 0.01 0.83 0.49 -98.7% 68.3%

Increase (decrease) in net assets 0.23 1.11 0.43 -79.2% 160.3%

Net assets - beginning of year 8.59 7.49 7.06 14.7% 6.1%

Net assets - end of year $ 8.82 $ 8.60 $ 7.49 2.6% 14.9%

Percent Change

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21


The Foundation continues to provide scholarship and program support on a relatively consistent

and increasing basis to the CCBC students.

CONTACTING CCBC’S FINANCIAL MANAGEMENT

This financial report is designed to provide interested parties with a general overview of CCBC‟s

finances. If you have questions about this report or require additional financial information,

contact The Community College of Baltimore County, Office of Finance, 7200 Sollers Point

Road, Baltimore, Maryland 21222-4694.

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22

June 30, 2012

CCBC Component UnitAssets

Current assets:

Cash and cash equivalents 18,984,934$ 2,903,962$

Accounts receivables:

Federal, state, county and local 10,056,099 -

Contributions receivable - 121,978

Tuition receivable and other (net of allowance for doubtful

accounts of $1,396,682) 3,623,062 -

Assets held for charitable gift annuities - 10,080

Bookstore inventories, at cost 1,714,061 -

Deferred charges and other assets 88,874 16,085

Total current assets 34,467,030 3,052,105

Noncurrent assets:

Investments - 5,672,112

Contributions receivable - 161,712

Capital assets, net 149,864,327 -

Total noncurrent assets 149,864,327 5,833,824

Total assets 184,331,357$ 8,885,929$

Liabilities and Net Assets

Current liabilities:

Accounts payable and accrued expenses 11,592,404$ 40,898$

Accrued compensated absences 3,884,320 -

Accrued salaries 3,658,511 -

Annuities payable from charitable gifts - 11,369

Unearned revenue 5,923,102 9,870

Deposits held in custody for others 1,525,345 -

Obligations under capital leases 451,044 -

Total current liabilities 27,034,726 62,137

Noncurrent liabilities:

Accrued compensated absences 1,982,174 -

Net OPEB Obligation 7,737,775 -

Obligations under capital leases 929,344 -

Total noncurrent liabilities 10,649,293 -

Total liabilities 37,684,019 62,137

Net assets:

Invested in capital assets, net of related debt 148,483,939 -

Restricted:

Temporarily - 3,370,806

Permanently - 4,489,230

Unrestricted (1,836,601) 963,756

Total net assets 146,647,338 8,823,792

Total liabilities and net assets 184,331,357$ 8,885,929$

Statement of Net Assets

These financial statements should be read only in conjunction with the accompanying

summary of significant accounting policies and notes to financial statements.

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23

Statement of Revenues, Expenses and Changes in Net AssetsFor the year ended June 30, 2012

CCBC Component Unit

Revenues

Operating revenues:

Student tuition and fees (net of scholarship allowances of $20,975,047) 60,941,808$ -$

Auxiliary enterprises (net of scholarship allowances of $3,385,504) 8,840,161 -

Contributions (including in-kind contributions of $280,348) - 1,311,753

Special events and other income 2,308,525 275,520

Total operating revenues 72,090,494 1,587,273

Expenses

Operating expenses:

Instruction 88,701,180 -

Public service 398,151 -

Academic support 11,325,684 -

Student services 17,646,615 -

Institutional support 33,569,783 -

Operation and maintenance of plant 15,242,584 -

Depreciation 8,221,825 -

Student aid 19,699,324 901,011

Auxiliary enterprises 10,792,195 -

Certain fringe benefits paid directly by State of Maryland 7,270,896 -

Fundraising - 4,410

Other 11,341,882 460,889

Total operating expenses 224,210,119 1,366,310

Operating income (loss) (152,119,625) 220,963

Nonoperating Revenues (Expenses)

State appropriations 34,398,366 -

Certain fringe benefits paid directly by State of Maryland 7,270,896 -

County appropriations (net of debt service of $5,794,873) 38,462,795 -

Grants-federal, state, county and local (Pell grants, $42,660,691) 54,840,160 -

Gifts 450,242 -

Investment income 13,630 10,823

Disposal of capital assets - -

Total nonoperating revenues 135,436,089 10,823

Income (loss) before other revenues, expenses, gains, or losses (16,683,536) 231,786

Other Revenues

County capital appropriations 25,717,631 -

State capital appropriations 641,430 -

Total other revenues 26,359,061 -

Increase in net assets 9,675,525 231,786

Net assets - beginning of year 136,971,813 8,592,006

Net assets - end of year 146,647,338$ 8,823,792$

These financial statements should be read only in conjunction with the accompanying

summary of significant accounting policies and notes to financial statements.

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24

For the year ended June 30, 2012

Cash flows from operating activities: CCBC

Tuition and fees received 60,877,118$

Auxiliary enterprises 8,840,161

Payments to employees (133,798,761)

Payments to suppliers (64,010,628)

Other receipts 2,276,187

Net cash used in operating activities (125,815,923)

Cash flows from noncapital financing activities:

State appropriations 34,398,366

County appropriations 38,462,795

Grants, scholarships and direct lending 54,322,132

Gifts 450,242

Net cash provided by noncapital financing activities 127,633,535

Cash flows from capital and related financing activities:

Capital appropriations 26,869,845

Purchases of capital assets (24,832,055)

Payment on capital lease obligations (390,738)

Net cash provided by capital and related financing activities 1,647,052

Cash flows from investing activities:

Interest income 13,630

Net increase in cash and cash equivalents 3,478,294

Cash and cash equivalents - beginning of year 15,506,640

Cash and cash equivalents - end of the year 18,984,934$

Operating loss (152,119,625)$

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation 8,221,825

Certain fringe benefits paid directly by State of Maryland 7,270,896

Effects of changes in operating assets and liabilities:

Accounts receivable (net) 925,555

Bookstore inventories 150,375

Deferred charges and other assets (27,591)

Accounts payable and accrued expenses 2,940,278

Increase in NOO (OPEB) 6,857,712

Accrued salaries (102,557)

Accrued compensated absences 496,318

Unearned revenue (178,808)

Deposits held in custody for others (250,301)

Net cash used in operating activities (125,815,923)$

Reconciliation of Operating Loss to Net Cash Used In Operating Activities

Statement of Cash Flows

These financial statements should be read only in connection with the accompanying

summary of significant accounting policies and notes to the financial statements.

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25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

JUNE 30, 2012

REPORTING ENTITY

The Community College of Baltimore County (CCBC) is considered a “body politic” under

Maryland state law as an instrumentality of the State of Maryland (the State). CCBC is governed

by a 15-member Board of Trustees (the Board). Trustees are appointed for five-year terms by the

Governor of the State with the advice and consent of the State Senate.

CCBC is not a Baltimore County, Maryland (the County) agency, but as a result of CCBC‟s

relationship with and significant funding from the County, CCBC is considered a component unit

of the County. CCBC‟s financial statements are summarized in the basic financial statements of

the County in accordance with accounting principles generally accepted in the United States of

America.

The significant accounting policies followed by CCBC are described below.

BASIS OF PRESENTATION

CCBC follows the reporting and disclosure requirements for special purpose governments

involved in business-type activities as outlined in Governmental Accounting Standards Board

(GASB) Statements No. 34, 35 and 38. This provides an entity-wide perspective in the financial

statement presentation. These standards require capitalization of assets, recording of

depreciation, presentation of management‟s discussion and analysis, as required supplementary

information and presentation of a Statement of Net Assets, Statement of Revenues, Expenses and

Changes in Net Assets and Statement of Cash Flows.

BASIS OF ACCOUNTING

The financial statements of CCBC have been prepared using the economic resources

measurement focus and the accrual basis of accounting whereby all revenues are recorded when

earned and all expenses are recorded when a liability is incurred.

REVENUE RECOGNITION

Revenue is recognized when earned and on an accrual basis with the establishment of

corresponding accounts receivable. Tuition receivables are uncollateralized obligations of

students resulting from course registration. The allowance method for accounts receivable is

used to measure bad debts, which include account charge offs. The allowance for doubtful

accounts is determined based upon aging analysis and management‟s estimation of collectability

of such accounts.

Student tuition and fees received for the summer sessions with a start date after June 30, 2012

have been deferred for financial statement purposes.

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26


JUNE 30, 2012

SCHOLARSHIP ALLOWANCES

Student tuition and fees are reported net of any scholarship allowance. A scholarship allowance

is the difference between the stated charge for tuition, goods and services provided by CCBC and

the amount that is paid by the student or third parties making payments on behalf of the student.

Scholarship allowances represent funds received from outside resources such as the Title IV

Federal Grant Program.

CAPITAL ASSETS

Capital assets are long-lived tangible assets which include real property (land and buildings) and

personal property (equipment and library materials) that are capitalized when their value exceeds

the specific threshold for that class of asset. The general capitalization threshold for equipment

is $5,000 and library materials are capitalized when purchased regardless of amount. Capital

assets include land, buildings, infrastructure, equipment, vehicles and library materials. Such

assets are recorded at historical cost or estimated historical cost, if purchased or constructed.

Land is not depreciated as it is considered to have an indefinite useful life. Donated assets are

recorded at the estimated fair value at the date of donation. Capital assets are depreciated using

straight-line method, booked in aggregate by year, over the following useful lives:

Buildings 50 years

Building improvements 20 years

Infrastructure 20 years

Equipment 10 years

Vehicles 8 years

Library materials 7 years

ENCUMBRANCES

At year-end, encumbrances totaled approximately $15,069,793, which represented the estimated

amount of expenses when unperformed obligations are completed. Included in the

encumbrances total is approximately $11,017,347 representing commitments for capital projects.

Encumbrances outstanding at June 30, 2012 do not constitute expenses or liabilities and are not

reflected in these financial statements.

FEDERAL AND STATE INCOME TAX STATUS

CCBC is exempt from Federal and State income taxes as it is essentially a subdivision of the

state.

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27


JUNE 30, 2012

USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS

The preparation of financial statements in conformity with accounting principles generally

accepted in the United States of America requires management to make estimates and

assumptions that affect the reported amounts of assets and liabilities and disclosures of

contingent assets and liabilities at the date of the financial statements and the reported amounts

of revenue and expenditures during the reporting period. Actual results could differ from those

estimates.

COMPENSATED ABSENCES

Each 12-month professional employee accrues 20 paid vacation days annually at a rate of one

and two-third days per month. A 12-month employee may not carry forward more than 40 days

of unused vacation leave from one fiscal year to the next.

At the time of termination, an employee (professional and classified) shall be paid the balance of

accrued vacation days up to a maximum of two years accrued.

Permanent, full-time classified employees with less than five years of service accrue paid

vacation at a rate of 10/12 of a normal workday for each month of employment to a maximum of

10 workdays per year. Permanent, full-time classified employees with five, but less than 10 years

accrue up to 15 days per year. Those classified employees with 10 or more years of service

accrue up to 20 days per year. A classified employee may carry forward no more than the

vacation accrued in two years.

Vacation benefits earned but not yet taken are charged to expense in the current fiscal year.

These benefits will be funded by future appropriations when paid. The future appropriations are

considered recorded as a current and long term liabilities on the Statement of Net Assets.

Each employee accrues sick leave at a rate of one day per month during the first year of

employment and one and one-half days per month during subsequent years. The amount of sick

leave, which is accumulated, is not limited. At retirement, an eligible employee may convert

unused sick leave into membership service credit as specified by the Maryland State Retirement

System. Since CCBC is not liable for payment of unused sick leave, no accrual is recorded.

INVENTORIES

Inventories consist of books and supplies at the bookstores and are stated at the lower of cost or

market. Cost is determined by the first-in/first-out (FIFO) method.

OPERATING AND NONOPERATING CLASSIFICATION

The policy of CCBC is to report as operating revenues and expenses items that result from

providing services and delivering goods in connection with the principal ongoing activities of the

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28


JUNE 30, 2012

College. All revenues and expenses not meeting this definition are reported as nonoperating

revenues and expenses. Included within nonoperating revenues would be such items as capital

and related financing activities, investing activities, grants, as well as State and County

appropriations.

NET ASSET CLASSIFICATION

Net Assets

The College maintains the following net asset classifications:

Invested in capital assets, net of related debt

Capital assets, net of accumulated depreciation and outstanding principal balances of debt

attributable to the acquisition, construction, repair or improvement of those assets.

Unrestricted

Unrestricted net assets may be designated for specific purposes by the College‟s Board of

Trustees.

PRIVATE SECTOR GUIDANCE

The GASB allows the option for governmental business-type activities to apply all Financial

Accounting Standards Boards (FASB) Statements and Interpretations issued after November 30,

1989, except those that conflict with or contradict GASB pronouncements. CCBC has elected

not to implement FASB pronouncements issued after that date.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents are items that are readily convertible to cash while carrying an

insignificant risk of change in value, which is defined as having a maturity rate of three months

or less at the time of purchase. Cash equivalents include a money market fund that invests in

instruments, which are issued or guaranteed by the U.S. Government or any of its agencies and

the Maryland Local Government Investment Pool. Included in the MLGIP funds are investments

maturing in three months or less.

DISCRETELY PRESENTED COMPONENT UNIT OF THE COLLEGE

An individual board governs the discretely presented component unit. The CCBC Foundation,

Inc. (the Foundation) is a separate entity that has been recognized as a tax exempt organization

as defined by Section 501(c)(3) of the Internal Revenue Code.

Although the College does not control the timing or amount of receipts from the Foundation, all

of the resources or income thereon that the Foundation holds and invests is restricted to the

activities of the College by the donors. Because these restricted resources held by the

Foundation can only be used by, or for the benefit of the College, the Foundation is considered a

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29


JUNE 30, 2012

component unit of the College under GASB Statement No. 39 and is discretely presented in the

College‟s financial statements.

Complete financial statements for the Foundation can be obtained from the administrative office

listed below:

The CCBC Foundation, Inc.

c/o Institutional Advancement

7200 Sollers Point Road

Baltimore, Maryland 21222

The Foundation is a private nonprofit organization that reports under FASB standards, including

FASB Statement No. 117, “Financial Reporting for Not-for-Profit Organizations.” As such,

certain revenue recognition criteria and presentation features are different from GASB revenue

recognition criteria and presentation features. No modifications have been made to the

Foundation‟s financial information in the College‟s financial report.

Nature of Activities

The CCBC Foundation, Inc. was incorporated under the laws of Maryland on June 29, 2005 and

commenced operations on July 1, 2005. The Foundation was formed for the purposes of

providing scholarships to students, administering funds restricted for special college programs,

and providing special awards and grants to students attending the Community College of

Baltimore County (the College) located in Baltimore County, Maryland. The CCBC Essex

Foundation, Inc. merged with the CCBC Foundation as of July 1, 2011.

Basis of Accounting

The financial statements of the Foundation have been prepared on the accrual basis of

accounting. Net assets and revenues, expenses, gains, and losses are classified on the existence

or absence of donor-imposed restrictions. Accordingly, net assets of the Foundation and changes

therein are classified and reported as follows:

Unrestricted net asset

Net assets that are not subject to donor-imposed stipulations.

Temporarily restricted net assets

Net assets subject to donor-imposed stipulations that may or will be met, either 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.

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30


JUNE 30, 2012

Temporarily restricted net assets are available for the following purposes:

Program activities:

Scholarships and instructional programs $ 3,370,806

Net assets were released from donor restrictions by incurring expenses satisfying the purpose or

time restrictions specified by donors as follows:

Purpose restriction accomplished:

Scholarships and instructional programs $ 865,599

Permanently restricted net assets

Net assets subject to donor-imposed stipulations that they be maintained permanently by the

Foundation. Generally, the donors of these assets permit the Foundation to use all or part of

income earned on any related investments for general or specific purposes.

Cash and Cash Equivalents

The Foundation considers all highly liquid debt instruments with a maturity of three months or

less at date of purchase to be cash equivalents.

Investments

Investment income and losses on investments of temporarily restricted assets is added to or taken

from temporarily restricted net assets when restricted as to use by the donor. Unrealized gains

(losses) on the invested corpus of the permanently restricted net assets are recorded within

temporarily restricted net assets. However, realized and unrealized losses on permanently

restricted net assets in excess of realized and unrealized gains on permanently restricted net

assets are recorded as reductions of unrestricted net assets.

The Foundation has investments with readily determinable fair values, which are reported at fair

value in the Statement of Net Assets. Investments whose fair value is not readily determinable

are recorded at cost. Gains and losses on investments for the year are reported in the Statement

of Revenues, Expenses and Changes in Net Assets.

Contributions Receivable

Pledges are recorded at the value pledged by the donor. Pledges deemed to be uncollectible are

charged directly against gift and contribution revenue and pledges receivable is reduced.

Unearned Revenue

The Foundation holds golf tournaments each year in July and September. All donations and fees

paid for the tournament prior to year end are recognized as unearned revenue.

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31


JUNE 30, 2012

Tax Status

The Foundation has been recognized by the Internal Revenue Service as a tax-exempt

organization as defined by Section 501(c)(3) of the Internal Revenue Code. The Foundation is

publicly supported and, therefore, not a private foundation.

Contributed Services

A substantial number of unpaid volunteers have made significant contributions of their time and

services to the Foundation. The value of this contributed time is not reflected in these financial

statements since it is not susceptible to objective measurement or valuation. The College has

allowed the Foundation to utilize office space on its campus. The utilities, water, and the space

are provided at no cost to the Foundation and are not deemed significant. There are no amounts

for utilities, water and the space reflected in the financial statements.

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32

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2012

NOTE 1 – COLLEGE CASH, CASH EQUIVALENTS AND INVESTMENTS

CCBC‟s policy is to invest funds in a manner which will provide the highest investment return

with the maximum security while meeting the daily cash flow needs of the business operations

and conforming to all state statutes governing the investment of public funds.

Deposits

At June 30, 2012, the bank deposits totaled $8,870,463. The carrying amount of those deposits

totaled $6,340,850. All of CCBC‟s bank balances are insured by the Federal Deposit Insurance

Corporation or secured by the US Government. The College‟s deposits are fully collateralized

under the Transaction Account Guarantee Program, which has been extended to December 31,

2012.

Cash and cash equivalents and investments

CCBC‟s investments conform to Article 95, Section 22 of the Annotated Code of Maryland.

Allowable investments include money market mutual funds, the Maryland Local Government

Investment Pool (MLGIP), repurchase agreements, bankers‟ acceptances, commercial paper and

various issuances of the United States, its agencies and instrumentalities.

At year-end, CCBC had investments in the MLGIP. The external investment pool is treated as a

2a-7pool. The MLGIP also has a Standard and Poor‟s rating of AAAm and is administered by

the State Treasurer. The College only invests in obligations that are AAA rated. Because of this,

any potential credit risk is minimized. The College has no formal policy relating to interest rate

or credit risk for investments. The funds maintain a $1.00 per share net asset value and are stated

at cost, which is the same as fair value. CCBC‟s cash and cash equivalents at June 30, 2012 are

summarized as follows:

Amount and

Fair Value

Cash $ 6,340,850

Maryland Local Government Investment Pool 7,163,497

MLGIP-Board Designated Fund (License Sale) 5,480,587

Total cash and cash equivalents (CCBC) $ 18,984,934

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33


JUNE 30, 2012

NOTE 2 –CASH, CASH EQUIVALENTS AND INVESTMENTS - FOUNDATION

The Foundation has the following cash, cash equivalents and investments, which are carried at

fair value as of June 30, 2012 and are presented below.

CCBC Foundation endowment funds showing the net unrealized gain at June 30, 2012:

CCBC Foundation investment income consisted of the following at June 30, 2012:

CCBC

Foundation

Cash and cash equivalents $ 2,903,962

Investments:

University Systems of MD Foundation $ 5,672,112

Cost Market

Unrealized

Gain

USMF - endowment funds 4,769,724$ 5,672,112$ 902,388$

Unrestricted

Temporarily

Restricted Total

Interest and dividends 6,785$ 69,936$ 76,721$

Realized and unrealized income (233) 9,313 9,080

Investment expenses (3) (74,975) (74,978)

Total investment income 6,549$ 4,274$ 10,823$

____________________________________________________________________________

34


JUNE 30, 2012

The table below shows the breakdown of holdings based on the percentage breakdown for the

entire Unitized Investment Fund invested by USMF at June 30, 2012 for the CCBC Foundation:

NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTS - FOUNDATION

The accounting guidance establishes a framework for measuring fair value. That framework

provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure

fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets

for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable

inputs (Level 3 measurements).

The three levels of the fair value hierarchy under the accounting guidance are described as

follows:

Level 1

Inputs to the valuation methodology are unadjusted quoted prices for identical assets or

liabilities in active markets that the Plan has the ability to access.

Level 2

Inputs to the valuation methodology include:

Quoted prices for similar assets or liabilities in active markets.

Quoted prices for identical or similar assets or liabilities in inactive markets.

Inputs other than quoted prices that are observable for the asset or liabilities.

Inputs that are derived principally from or corroborated by observable market data by

correlation or other means.

Endowment 2012

Money Market 5.69%

Long duration and low duration bond funds 2.05%

Foreign bonds 0.00%

Global equities 8.27%

US Treasury notes and bonds 1.45%

US agencies 0.00%

CMO's and asset-and-mortgage-backed securities 2.29%

Hedged Global and US equity 27.21%

Private capital 13.15%

Absolute return 19.55%

Real estate 9.15%

Energy and natural resources 11.19%

100.00%

____________________________________________________________________________

35


JUNE 30, 2012

If the asset or liability has a specified (contractual) term, the Level 2 input must be

observable for substantially the full term of the asset or liability.

Level 3

Inputs to the valuation methodology are unobservable and significant to the fair value

measurement.

The asset or liability‟s fair value measurement level within the fair value hierarchy is based on

the lowest level of any input that is significant to the fair value measurement. Valuation

techniques used need to maximize the use of observable inputs and minimize the use of

unobservable inputs.

Some of USMF‟s investments may be illiquid and USMF may not be able to vary the portfolio in

response to changes in economic and other conditions. Some of the investments that are purchased

and sold are traded in private, unregistered transactions and are subject to restrictions on resale or

otherwise have no established trading market. In addition, if USMF is required to liquidate all or a

portion of its portfolio quickly, the Foundation may realize significantly less than the value at

which it previously recorded those investments.

Money market funds and short-term investments include amounts invested in accounts with

depository institutions which are readily convertible to known amounts of cash. USMF invests in

these assets to maintain liquidity for spending needs and unfunded commitment liability. Total

deposits maintained at these institutions at times exceed the amount insured by federal agencies

and therefore, bear a risk of loss. USMF has not experienced such losses on these funds. These

are included in Level 1.

For investments in U.S. treasury notes and bonds, corporate and foreign bonds, and collateralized

mortgage obligations and mortgage backed securities, fair value is based upon quotes for similar

securities; therefore these investments are rendered Level 2.

The value, liquidity, and related income of these securities are sensitive to changes in economic

conditions, including real estate value, delinquencies and/or defaults, and may be adversely

affected by shifts in the market‟s perception of the issuers and changes in interest rates and credit

downgrades. USMF invests in these assets to protect in the event of sudden interest rate changes as

well as to maintain liquidity for spending needs and unfunded commitment liability.

In general, equity securities traded on national securities exchanges are valued at the last quoted

sales price, except securities traded on the NASDAQ Stock Market, Inc. (NASDAQ), which are

valued in accordance with the NASDAQ Official Closing price. Over the counter securities are

valued at the mean between the latest bid and asked prices as furnished by dealers who make

markets in such securities. Equities are classified as Level 1. USMF invests in equities to gain

exposure to the overall direction of global equity markets.

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36


JUNE 30, 2012

Absolute return assets consist of investments that involve the purchase and sale of shares in

companies that are the subject of publicly announced transactions, including corporate

combinations (for cash or exchange of shares), tender offers, restructurings, liquidations,

bankruptcies, capitalizations and deals in distressed securities, which are discounted securities of a

company in financial distress or bankruptcy. The fair value of these investments has been

estimated using the net asset value per share of the investments. The majority of these investments

can be redeemed within one year. The remainder of these investments has liquidity provisions that

extend past one year. Notice period for redemption of investment ranges from one month to six

months. There are no outstanding unfunded commitments to this asset category.

Long/short strategies take long and short positions in publicly traded equity securities in an effort

to achieve attractive returns with moderate risk. Also included in these categories are off-shore

investment vehicles. The investment managers, as noted in the audited financial statements, value

the assets held in the fund at all hierarchy levels. However, USMF‟s subscription agreement locks

up its investment for a period of time and does not allow for sale to another. Also, early

withdrawal carries a penalty. Therefore, even though the underlying assets in some of the vehicles

are readily saleable in the open market, USMF does not have that ability and, therefore, has

classified investments in those vehicles as Level 3. The fair value of these investments has been

estimated using the net asset value per share of the investments. The majority of these investments

can be redeemed within one year. The remainder of these investments has liquidity provisions that

extend past one year. Notice period for redemption ranges from one month to six months. There

are no outstanding commitments to this asset category.

Private capital consists of private equity and venture capital investments. Private equity

investments represent purchases of all or a portion of the equity interest in a company and the

arrangement allows the purchasing group to take control. Venture capital investments are made in

non-marketable securities of new companies or companies considered to be in the early stages of

growth.

Real estate, energy and natural resources investments include investments in partnerships where

the underlying investment is real estate or related to the energy sector. Investments in private

equity investment companies and funds are presented at fair value as approved by USMF‟s

management based, in part, on information and valuations provided by the general partner of the

partnerships or investment manager.

The general partner or manager generally values their investments at fair value. Securities with no

readily available market are initially valued at cost, with subsequent adjustment to values which

reflect either the basis of meaningful third-party transactions in the private market or the fair value

deemed appropriate by USMF‟s management.

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37


JUNE 30, 2012

In such instances, consideration is also given to the financial condition and operating results of the

issuer, the amount that the investment company/fund can reasonably expect to realize upon the sale

of the securities, and any other factors deemed relevant. Such value represents USMF‟s

proportionate share of the capital in the investment company/fund. Accordingly, the value of the

investment is generally increased by additional contributions and the share of net earnings from the

investments and decreased by distributions from the partnerships and the partner‟s share of net

losses. These investments have been labeled as Level 3 based on their lock up periods and the

transparency of their assets. Redemption of these investments is left to the discretion of the general

partner/manager of the funds. Distributions from each fund will be received as the underlying

investments are liquidated. As of June 30, 2012, unfunded commitments within the private capital

category and the real estate and energy and natural resources category equal approximately 31.1%

and 16.6% of the assets in those categories, respectively.

The methods described above may produce a fair value calculation that may not be indicative of

net realizable value or reflective of future fair values. Furthermore, while USMF believes its

valuation methods are appropriate and consistent with other market participants, the use of

different methodologies or assumptions to determine the fair value of certain financial instruments

could result in a different estimate of fair value at the reporting date.

The following table presents assets and liabilities measured at fair value by classification within

the fair value hierarchy as of June 30, 2012. The categorizations within the fair value hierarchy

of the assets at USMF represent the Foundation‟s proportion of its assets of the total held by the

pool for each category as disclosed by USMF:

As of June 30, 2012:

Quoted Prices

in Active

Markets for

Identical

Assets

(Level 1)

Significant

Other

Observable

Inputs

(Level 2)

Significant

Unobservable

Inputs

(Level 3) Total

Assets as USMF 970,881$ 486,130$ 4,215,101$ 5,672,112$

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38


JUNE 30, 2012

The following is a reconciliation of the beginning and ending balances of assets and liabilities

measured at fair value on a recurring basis using significant unobservable (Level 3) inputs during

the year ended June 30, 2012 for the CCBC Foundation:

NOTE 4 – CONTRIBUTIONS RECEIVABLE – FOUNDATION

The discount rate used on long-term promises to give was 0.37% in 2012, which was calculated

using discount rates for United States Treasury securities for the applicable terms. Management

recorded an allowance of $8,000 at June 30, 2012 for pledge balances deemed uncollectible. The

current amount (amount receivable within one year) of the contributions receivable is $121,978

as shown on the Statement of Net Assets under current assets. The rest is recorded under

noncurrent assets.

Balance, July 1, 2011 3,018,122$

Investments from merger 1,601,906

Realized/unrealized gains 55,548

Net purchases (460,475)

Balance, June 30, 2012 4,215,101$

Unconditional promises to give at June 30 are as follows:

2012

Amounts due in:

Less than one year 131,062$

One to five years 161,712

292,774

Less: discounts to net present value (1,084)

Allowance for doubtful accounts (8,000)

Net unconditional promises to give 283,690$

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39


JUNE 30, 2012

NOTE 5 – CAPITAL ASSETS

NOTE 6 - OPERATING LEASES

CCBC has entered into operating lease agreements for instructional facilities with expiration

dates at various times from October 2013 to July 2021. The minimum future rentals as of June

30, 2012 were as follows:

Balance Additions Deletions Balance

June 30, 2011 and Transfers and Transfers June 30, 2012

Capital assets not being depreciated

Land $ 4,797,824 $ - $ - $ 4,797,824

Construction in progress 13,190,839 23,893,688 7,300,629 29,783,898

Total capital assets not being

depreciated 17,988,663 23,893,688 7,300,629 34,581,722

Capital assets being depreciated

Buildings and improvements 151,736,913 7,189,125 - 158,926,038

Infrastructure 25,243,759 - - 25,243,759

Equipment 19,015,743 630,321 - 19,646,064

Vehicles 2,281,188 144,361 - 2,425,549

Capital leases 2,052,448 15,156 - 2,067,604

Library materials 6,460,077 260,031 - 6,720,108

Total capital assets being depreciated 206,790,128 8,238,994 - 215,029,122

Less accumulated depreciation

Buildings and improvements 56,555,371 5,560,408 - 62,115,779

Infrastructure 14,642,607 782,177 - 15,424,784

Equipment 13,068,263 1,157,179 - 14,225,442

Vehicles 1,645,497 166,374 - 1,811,871

Capital leases 128,278 257,966 - 386,244

Library materials 5,484,676 297,721 - 5,782,397

Total accumulated depreciation 91,524,692 8,221,825 - 99,746,517

Total capital assets being depreciated, net 115,265,436 17,169 - 115,282,605

Total capital assets, net $ 133,254,099 $ 23,910,857 $ 7,300,629 $ 149,864,327

____________________________________________________________________________

40


JUNE 30, 2012

Lease expense under these agreements for the year ended June 30, 2012 was $1,127,528 for

building rentals and $926,912 for equipment rentals, for a total of $2,054,440.

NOTE 7 – CAPITAL LEASES

CCBC has entered into an agreement for the lease of computer and networking services for IT

infrastructure/networking equipment and data center equipment for a period of five years. These

lease agreements qualify as capital leases for accounting purposes and have been recorded at the

present value of the future minimum lease payments at the inception date. Assets acquired under

leases were capitalized in accordance with GAAP (generally accepted accounting principles).

The current amount (amount due within one year) of the capital lease is $451,044 as shown on

the Statement of Net Assets under current liabilities.

As of June 30, 2012, the total future minimum payments under capital leases were as follows:

Year

Instructional

Facilities

2013 1,108,934$

2014 755,371

2015 613,828

2016 457,649

2017 471,339

2018-2021 2,031,050

Total future minimum rentals 5,438,171$

Year Total

2013 451,044$

2014 451,044

2015 362,643

2016 181,322

Total commitment under capital leases 1,446,053

Less amounts representing interest (65,665)

Present value of future minimum lease payments 1,380,388$

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41


JUNE 30, 2012

NOTE 8 – NONCURRENT LIABILITIES

Noncurrent liabilities of CCBC consist of accrued compensated absences, the long term capital

lease obligations and the Net OPEB obligation (NOO). Changes in noncurrent liabilities are as

follows:

NOTE 9 - PENSION AND RETIREMENT PLANS

State of Maryland Pension Plans

CCBC‟s professional and classified employees, other than security and plant operations

employees, are covered by either the Teachers Retirement System of the State of Maryland or the

Teachers‟ Pension System of the State of Maryland. These systems are part of the Maryland

State Retirement and Pension System (the State System), and are cost-sharing multiple-employer

public employee retirement systems. The State System provides pension, death and disability

benefits to plan members and beneficiaries. The State of Maryland pays substantially all

required employer contributions on behalf of CCBC. The plan is administered by the State

Retirement Agency (the Agency). Responsibility for the administration and operation of the

State System is vested in a 14-member Board of Trustees.

The State System was established by the State Personnel and Pensions Article of the Annotated

Code of Maryland. The Agency issued a publicly available financial report that includes

financial statements and required supplementary information for the State System. That report

may be obtained by writing to the State Retirement and Pension System of Maryland, 120 East

Baltimore Street, Baltimore, Maryland, 21202, or by calling 410-625-5555.

The State Personnel and Pensions Article require active members to contribute to the State

System at the rate of 5.0% of their covered salary depending upon the retirement option selected.

The combined State contribution rate is established by annual actuarial valuations. The rate is

sufficient to fund normal costs and amortize the unfunded actuarial accrued liability over a 40-

year period (as provided by law) from July 1, 1980. Also as provided by law, any new unfunded

liabilities or surpluses arising during the fiscal year ended June 30, 2001, or any fiscal year

thereafter, will be amortized over a 25-year period from the end of the fiscal year in which the

liability or surplus arose. The State‟s contributions on behalf of CCBC for the years ended

Balance Balance Due within

June 30, 2011 Additions Reductions June 30, 2012 One Year

Compensated absences $ 5,370,176 $ 3,909,733 $ 3,413,415 $ 5,866,494 $ 3,884,320

Capital leases 1,771,126 20,024 410,762 1,380,388 451,044

Net OPEB Obligation (NOO) 880,063 12,455,000 5,597,288 7,737,775 -

Noncurrent liabilities 8,021,365$ 16,384,757$ 9,421,465$ 14,984,657$ 4,335,364$

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42


JUNE 30, 2012

June 30, 2012, 2011 and 2010 were $5,356,938; $5,228,367; and $4,650,911, respectively, which

were equal to the required contributions for each year and are recognized as revenue (expenses)

during the fiscal year. In addition to the State‟s contributions, the employees contributed

$2,761,611; $1,979,298; and $1,906,939, for the respective years.

Baltimore County Plan

For the security and plant operations employees, CCBC contributes to The Employee‟s

Retirement System of Baltimore County (the System), a cost-sharing multiple-employer public

employee retirement system that acts as a common investment and administrative agent serving

five entities including the County and certain employees of the Board of Education, Board of

Library Trustees, CCBC and the Baltimore County Revenue Authority. The System provides

retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan

members and beneficiaries. The authority to establish and maintain the System is specified in

Section 23-1 of the Baltimore County Code. The System issues a separately prepared

comprehensive annual financial report that includes financial statements and required

supplementary information. The report may be obtained by writing to the Employees‟

Retirement System of Baltimore County, 400 Washington Avenue, Room 108, Towson,

Maryland 21204.

System members contribute a percentage of their salary to the System determined by the County

Code. The contribution rates for members hired prior to July 1, 2007 are actuarially determined

based on the member‟s age at enrollment and employee classification. Contribution rates for

members hired on or after July 1, 2007 are fixed based on employee classification.

CCBC is required to make contributions at actuarially determined rates that, expressed as

percentages of annual covered payroll, are sufficient to pay benefits when due. The contribution

requirements of plan members and the employers are established and may be amended by the

Baltimore County Council. CCBC‟s contributions to the System for the fiscal years ended June

30, 2012, 2011 and 2010 were $279,909; $214,86; and $232,297, respectively, which were equal

to the required contributions for each year.

Optional Defined Contribution Plan

Professional employees otherwise eligible to join the State of Maryland Plan may choose instead

to join the Optional Retirement Plan administered by the State of Maryland. This plan is a

noncontributory defined contribution plan. The plan provides for retirement and death benefits.

The plan was established by and can be amended by the State Legislature. The State of

Maryland contributes 7.25% of eligible salaries on behalf of CCBC. For the year ended June 30,

2012, the contribution made by the State of Maryland was $1,913,958.

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43


JUNE 30, 2012

Deferred Compensation Plans

CCBC offers a defined contribution 403(b) retirement plan to all of its eligible employees. The

plan is contributory on a voluntary basis with all contributions being paid to the trustee. CCBC

makes no basic or matching contributions on behalf of its employees. In addition to the 403(b)

plan, there is a 457(b) Plan, which was implemented in March 2008. This Plan provides

employees with a second major retirement tax deferral option. This plan is also contributory on

a voluntary basis with all contributions paid to the trustee. Employees have the option to choose

either or both plans that will allow more savings on a tax-deferred basis for retirement.

Certain Fringe Benefits Paid by the State of Maryland

The State of Maryland contributed a total of $7,270,896 for all retirement plans for the year

ended June 30, 2012. These on-behalf payments are included as amounts of nonoperating

revenues and operating expenses in the accompanying statements.

NOTE 10 – POSTEMPLOYMENT HEALTHCARE PLAN

The GASB has issued Statement Number 45, Accounting and Financial Reporting by Employers

for Postemployment Benefits Other Than Pensions. This standard requires the recognition of the

cost of these benefits during the period of employment rather than in periods (often many years

later) when the benefits are actually paid.

Plan Description. In addition to the pension benefits described in Note 9, CCBC provides

postemployment health care benefits, in accordance with State statutes, to all employees who are

disabled or retire from CCBC with at least 10 years of service. CCBC currently has 696 eligible

retirees as of June 30, 2012. CCBC allows such retirees to continue coverage under the group

health plan and contributes between 35.0% and 90.0% of premiums based on the employee's

years of service. Effective January 1, 2011, college retirees who are not Medicare eligible have

the choice of the CIGNA Open Access Plus In-Network (OAPIN), CIGNA Open Access Plus

(OAP), or the Kaiser Permanente HMO. Retirees may also choose a prescription plan. College

retirees who are Medicare eligible may participate in the Cigna Medicare Surround Plan with or

without a prescription plan.

Funding Policy. The contribution requirements of plan members are established and may be

amended by the CCBC Board of Trustees. The College‟s policy regarding the subsidizing of

retiree health benefits is shown in the chart on the next page.

The two-tier system shows the policy as it applies to employees hired before and after 7/1/07 as

shown on the next page.

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44


JUNE 30, 2012

The annual required contribution of the employer (ARC) is an amount actuarially determined in

accordance with the parameters of GASB Statement 45. The ARC represents a level of funding

that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any

unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The

current ARC rate is 16.34% of annual covered payroll.

Annual OPEB Cost (AOC). For FY2012, CCBC‟s net annual OPEB cost (expense) in the amount

of $12,455,000 is equal to the ARC, $12,458,000 less net adjustments for interest on the Net

OPEB Obligation (NOO) in the amount of ($3,000). The AOC was partially funded by the

College in the amount of $5,597,288.

CCBC‟s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the

resulting net OPEB asset for the last five fiscal years were as follows:

The Net OPEB Obligation (NOO) is recorded as a reduction in unrestricted net assets on the

Statement of Net Assets.

Years of Service

(Employees Hired

before 07/01/07)

(Employees Hired on or

after 07/01/07)

Less than 10 years no subsidy no subsidy

10-14 years 50% subsidy 35% subsidy





35+ years 85% subsidy 85% subsidy

Fiscal Year

Ended

Annual

OPEB Cost

Percentage of Annual

OPEB Cost

Contributed

Net OPEB

Obligation

(Asset)

June 30, 2008 $ 6,571,000 100% $ -

June 30, 2009 6,759,000 153% (3,580,757)

June 30, 2010 6,803,000 78% (2,103,847)

June 30, 2011 8,310,000 64% 880,063

June 30, 2012 12,455,000 45% 7,737,775

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JUNE 30, 2012

The following table shows the components of CCBC‟s annual OPEB cost, contributions made

and the Net OPEB Obligation at June 30, 2012.

Funded Status and Funding Progress. The funded status of the plan as of the July 1, 2011

actuarial report (reports are generated every two years) was as follows:

The schedule of funding progress in Required Supplemental Information represents multi-year

trend information about whether the actuarial value of plan assets is increasing or decreasing

relative to the actuarial accrued liability for benefits over time.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and

assumptions about the probability of occurrence of events far into the future. Examples include

assumptions about future employment, mortality, and the healthcare cost trend. Amounts

determined regarding the funded status of the plan and the annual required contributions of the

employer are subject to continual revision as actual results are compared with past expectations

and new estimates are made about the future. This fund, to provide for the future benefits for

retirees of the College, is being managed by Baltimore County.

Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are

based on the substantive plan (the plan as understood by the employer and plan members) and

include the types of benefits provided at the time of each valuation and the historical pattern of

sharing of benefit costs between the employer and plan members to that point. The actuarial

methods and assumptions used include techniques that are designed to reduce short-term

Annual required contribution (ARC) $ 12,458,000

Interest on net OPEB obligation 35,000

Adjustment to ARC (38,000)

Annual OPEB cost (expense) 12,455,000

Contributions made (5,597,288)

Increase in net OPEB obligation 6,857,712

Net OPEB obligation, beginning of year 880,063

Net OPEB obligation, end of year 7,737,775$

Actuarial accrued liability (AAL) 167,523,000$

Actuarial value of plan assets 13,527,000

Unfunded actuarial accrued liability (UAAL) 153,996,000$

Funded ratio (actuarial value of plan assets/AAL) 8.1%

Covered payroll (active plan members) 76,242,505$

UAAL as a percentage of covered payroll 202.0%

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46


JUNE 30, 2012

volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-

term perspective of the calculations.

In the July 1, 2011 actuarial valuation for FY2012, the projected unit credit cost method was

used. The actuarial assumptions included a 4.0% investment rate of return (net of administrative

expenses) and an annual healthcare cost trend rate that is consistent with the best estimate of

GNP growth or 1.4%. The rate of income growth is assumed to be 3% annually. The rates

include a 2.9% inflation assumption. CCBC‟s unfunded actuarial accrued liability (UAAL) is

being amortized as a level percentage of projected payroll. The UAAL is amortized over a period

of 30 years using level percentage of projected payroll amortization factor. The remaining

amortization period at June 30, 2012 was twenty-five years.

NOTE 11 - BALTIMORE COUNTY BONDS OUTSTANDING

Amounts received from Baltimore County include proceeds of Baltimore County Community

College Bonds that are direct obligations of the County. As of June 30, 2012, CCBC related

County bonds outstanding totaled $80,910,000 and were due in annual installments through

February 1, 2032. While CCBC is not directly obligated to repay principal and interest on any

bonded debt, the County charged CCBC‟s budgeted appropriation for debt service of $5,794,873

for the year ended June 30, 2012. For financial statement purposes, this amount is not included

in the County appropriation nor reflected as an expense.

NOTE 12 - RISK MANAGEMENT

CCBC is exposed to various risks of loss related to torts; theft of, damage to, and destruction of

assets; errors and omissions; employee health and accident; and natural disasters. CCBC

manages some of its risk by participating in Baltimore County‟s Self-Insurance Program Fund

(SIPF). The participation in the SIPF is intended to provide CCBC with general liability and

worker‟s compensation coverage. The SIPF pays claims by charging a premium to the

participants based on prior years‟ actual claims.

In addition, CCBC purchases commercial insurance to protect its interest in its property and

equipment, insurance against employee dishonesty and liability protection providing coverage

for students receiving instruction and training in various allied health fields. CCBC also

purchases private insurance for employee health coverage. Settled claims have not exceeded this

commercial coverage for the past three fiscal years.

CCBC (and/or its agents and employees) is a defendant in various lawsuits alleging tortious

conduct. Management intends to defend itself in these matters and any potential claims that may

result from these lawsuits will be satisfied by Baltimore County (pursuant to the terms and

conditions of the SIPF), not CCBC, thus any resolutions of these matters should not directly

affect the financial statements of CCBC.

____________________________________________________________________________

47


JUNE 30, 2012

NOTE 13 - CONTINGENCIES

Most grants and cost-reimbursable contracts specify the types of expenditures for which the

grant or contract funds may be used. The expenditures made by CCBC under some of these

grants and contracts are subject to audit. To date, CCBC has not been notified of any significant

unallowable costs relating to its grants or contracts. In the opinion of management, the

expenditures that have been made for grants and contracts were made in accordance with the

provisions of such grants and contracts. Any adjustments for unallowable costs, if any, that

would result from audits will not have a material effect on CCBC‟s financial statements.

NOTE 14 – DIRECT LENDING

CCBC participates in the federal direct lending program. Direct lending is making it easier for

students to secure loan funding for their education. For the year ended June 30, 2012, the total

amount loaned to CCBC students through direct lending was $33.51 million.

NOTE 15 - RELATED PARTY TRANSACTIONS

CCBC is affiliated with The CCBC Foundation (the Foundation). The primary purpose of the

Foundation is to enhance the educational activities of the campuses of CCBC. The Foundation

assists CCBC in expanding and enhancing its contribution to the local communities by providing

resources that would otherwise not be available.

CCBC paid, on behalf of the Foundation, a percentage of various overhead related expenses

totaling approximately $280,348 during the year ended June 30, 2012.

The Foundation‟s Board of Directors and CCBC have elected to treat scholarship funding of

approximately $666,869 and other donations of approximately $234,142 to CCBC during the

year ended June 30, 2012 as more than adequate reimbursement for these expenditures.

____________________________________________________________________________

48


JUNE 30, 2012

NOTE 16 - EXPENSE CLASSIFICATION

The basic financial statements presented disclose expenses in a functional classification based

upon standard industry presentations. The following presents this data by natural classification:

NOTE 17 – BOARD DESIGNATION

In FY2008, CCBC sold its EBS channels to HITN (Hispanic Information and

Telecommunications Network, Inc.) Spectrum. This sale, which required FCC approval, public

notice and review, was completed in early November 2007 when the funds were remitted to

CCBC.

Consistent with GAAP; the Board of Trustees has chosen to designate the proceeds for future

purposes. The Board can modify the amount or purpose of the fund. These funds are included in

the Maryland Local Government Investments Pool (MLGIP) and earn interest. The total bank

balance including the applicable interest as of June 30, 2012 is $5.48 million and is included in

unrestricted net assets on the Statement of Net Assets.

NOTE 18 – ENDOWMENTS – FOUNDATION

The Foundation‟s endowments consist of 197 funds established to support a variety of

scholarships at the Community College of Baltimore County. Its endowments consist of donor-

restricted endowment funds. As required by generally accepted accounting principles, net assets

associated with endowment funds, including funds designated by the Board to function as

endowments, are classified and reported based on the existence or absence of donor-imposed

restrictions.

2012

Compensation (including fringe benefits) 142,053,542$

Contracted services 17,229,251

Supplies and materials 4,868,897

Communications 1,515,992

Conferences and meetings 2,007,397

Utilities 2,923,085

Furniture and equipment 6,738,590

Fixed charges 1,345,017

Depreciation 8,221,825

Student aid 19,699,324

Cost of goods sold 8,532,683

Other 9,074,516

Total 224,210,119$

____________________________________________________________________________

49


JUNE 30, 2012

Interpretation of Relevant Law

The Board of the Foundation has interpreted the State Prudent Management of Institutional

Funds Act (SPMIFA) 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 to the

contrary. Consequently, the Foundation classifies permanently restricted net assets as:

The original value of gifts donated to the permanent endowment, and

The original value of subsequent gifts to the permanent endowment.

The remaining portion of the donor-restricted endowment fund not classified as permanently

restricted is classified as temporarily restricted net assets until those amounts are appropriated for

expenditure by the Foundation‟s Board. In accordance with SPMIFA, the Foundation considers

the following factors in making a determination to appropriate or accumulate donor-restricted

endowment funds:

1. The duration and preservation of the fund

2. The purpose of the Foundation and the donor-restricted endowment fund

3. General economic conditions

4. The possible effect of inflation and deflation

5. The expected total return from income and the appreciation of investments

6. Other resources of the Foundation

7. The investment policies of the Foundation

Return Objectives and Risk Parameters

The Foundation has adopted investment and spending policies for endowment assets that attempt

to provide a predictable stream of funding to the programs supported by the endowments. The

endowment assets are invested in a manner that is intended to provide results similar to the S&P

500 index while assuming a moderate level of investment risk.

Spending Policy

The Foundation has a policy of appropriating for distribution each year 4.0 to 5.0 percent of its

endowment fund‟s average balance over the prior three years preceding the fiscal year in which

the distribution is planned. Because this amount is calculated for the next fiscal year, the amount

appropriated for the following fiscal year is added to temporarily restricted net assets in the

current year.

In establishing this policy, the Foundation considered the long-term expected returns on its

endowment investments. Accordingly, over the long term, the Foundation expects the current

spending policy will allow its endowment to retain the original fair value of the gift.

____________________________________________________________________________

50


JUNE 30, 2012

Funds with Deficiencies

From time to time, the fair value of assets associated with individual donor restricted endowment

funds may fall below the level that the donor or SPMIFA requires the Foundation to retain as a

fund of perpetual duration. As of June 30, 2012, no deficiencies of this nature were reported in

unrestricted net assets.

Strategies Employed for Achieving Objectives

The Foundation relies on a total return strategy in which investment returns are achieved through

capital appreciation and current yield (interest and dividends). The Foundation targets a

diversified asset allocation that emphasizes fixed income securities to achieve its long-term

objectives within prudent risk constraints.

Changes in endowment net assets for the fiscal year ended June 30, 2012 are shown below:

NOTE 19 – SUBSEQUENT EVENTS - FOUNDATION

The Foundation has evaluated subsequent events through September 26, 2012, the date the

financial statements were available to be issued. Events or transactions occurring after June 30,

2012, but prior to September 26, 2012 that provided additional evidence about conditions that

existed at June 30, 2012 have been recognized in the financial statements for the year ended June

30, 2012. Events or transactions that provided evidence about conditions that did not exist at

June 30, 2012 but arose before the financial statements were available to be issued have not been

recognized in the financial statements for the year ended June 30, 2012.

This information is an integral part of the accompanying financial statements.

Temporarily Permanently

Unrestricted Restricted Restricted Total

Endowment net assets,

beginning of year -$ 548,760$ 3,112,376$ 3,661,136$

Transfer from merged entity - 596,525 1,320,683 1,917,208

Investment Return:

Investment income - 4,273 - 4,273

Total - 4,273 - 4,273

Contributions collected - - 58,973 58,973

Appropriations of endowment assets - (2,872) - (2,872)

Transfers - - (2,802) (2,802)

Endowment net assets, end of year -$ 1,146,686$ 4,489,230$ 5,635,916$

required supplementaryinformation

MCM LV I I


ii teaching and learning

excellence

CCBC will provide and support a quality educational

experience for students by ensuring state-of-the-art

teaching that combines outstanding faculty with

committed support and services staff.

____________________________________________________________________________

51

Schedule of Funding Progress for Other Postemployment Benefits Based on Actuarial Valuation Data as of July 1, 2011

The GASB has issued Statement Number 45, Accounting and Financial Reporting by Employers

for Postemployment Benefits Other Than Pensions. The following schedule is required and

represents five years of funded status and funding progress for CCBC. Please refer to Note 10 of

the financial statements on pages 43-46 for a more detailed description of CCBC‟s reporting of

Other Postemployment Benefits (OPEB) for FY2012.

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Funding Progress

Actuarial Valuation Date

Actuarial Value of Assets (a)

Actuarial Accrued Liability (AAL)- Entry Age (b)

Unfunded AAL (UAAL) (b - a)

Funded Ratio (a / b)

Covered Payroll (c)

UAAL as a Percentage of Covered Payroll ((b - a) / c)

7/1/2007 $0 $75,875,000 $75,875,000 0% $64,369,935 117.9%

7/1/2008 $8,075,000 $85,409,000 $77,334,000 9.5% $66,296,476 116.6%

7/1/2009 $10,427,000 $90,589,000 $80,162,000 11.5% $70,266,951 114.1%

7/1/2011 $11,703,000 $106,527,000 $94,824,000 11.0% $73,735,641 128.6%

7/1/2012 $13,527,000 $167,523,000 $153,996,000 8.1% $76,242,505 202.0%

This schedule represents years one through five and will accumulate each year until six years of

data becomes available.

Schedule of Contributions

Fiscal Year

Ended

Annual

Required

Contribution

Amount

Contributed

Percentage

Contributed

June 30, 2008 $ 6,571,000 $ 6,571,000 100%

June 30, 2009 6,847,000 10,339,757 151%

June 30, 2010 6,862,000 5,326,090 78%

June 30, 2011 8,333,000 5,326,090 64%

June 30, 2012 12,458,000 5,597,288 45%


of Baltimore County


other supplementaryinformation

MCM LV I I


iii organizational excellence

CCBC will promote an organizational culture that

encourages excellence and success by developing and

supporting individuals, teams and processes that

contribute to the effective and responsible management

of teaching and learning, student success, human

resources, facilities, services, technology and finances.

____________________________________________________________________________

52

Variance

Revenue Positive

Actual Budget (Negative)

Educational and General

Credit tuition $ 57,662,954 $ 57,430,620 $ 232,334

Credit fees 14,007,199 14,177,123 (169,924)

Subtotal 71,670,153 71,607,743 62,410

Non-credit tuition and fees 9,872,143 10,679,583 (807,440)

Total tuition and fees 81,542,296 82,287,326 (745,030)

Governmental Aid

State of Maryland 34,398,366 34,398,366 -

Baltimore County 44,257,668 44,257,668 -

Total governmental aid 78,656,034 78,656,034 -

Interest Income and Other Sources 1,535,767 1,363,996 171,771

Auxiliary Enterprises, net 1,290,053 1,621,274 (331,221)

Total revenue - unrestricted funds $ 163,024,150 $ 163,928,630 $ (904,480)


Comparison of Actual and Budget

Revenue for Unrestricted Current Funds

____________________________________________________________________________

53

Positive

Actual Budget (Negative)

Instruction:

Salaries and wages $ 69,641,829 $ 70,190,388 $ 548,559

Contracted services 4,680,621 4,690,256 9,635

Supplies and materials 1,566,321 1,672,569 106,248

Conferences and meetings 498,096 546,490 48,394

Furniture and equipment 3,274,903 3,696,969 422,066

Total instruction 79,661,771 80,796,672 1,134,901

Public service:

Salaries and wages 389,907 389,989 82

Contracted services 1,197 1,370 173

Supplies and materials 9,688 9,745 57

Conferences and meetings 2,174 2,200 26

Total public service 402,966 403,304 338

Academic support:

Salaries and wages 10,590,911 10,709,629 118,718

Contracted services 223,668 257,266 33,598

Supplies and materials 267,165 290,832 23,667


Fixed charges 212,202 215,360 3,158

Furniture and equipment 88,238 99,871 11,633

Total academic support 11,475,143 11,700,845 225,702

Student services:


Contracted services 980,466 983,161 2,695

Supplies and materials 235,180 248,350 13,170



Total student services 15,344,815 15,482,890 138,075

Institutional support:



Supplies and materials 585,461 586,149 688

Communications 1,471,491 1,531,932 60,441


Fixed charges 357,519 357,860 341


Total institutional support 33,100,898 33,234,600 133,702

Operation and maintenance of plant:



Supplies and materials 1,186,871 1,191,738 4,867


Utilities 3,182,542 3,221,212 38,670

Fixed charges 237,915 240,000 2,085


Total operation and maintenance of plant 15,701,311 15,905,502 204,191

Mandatory transfers 7,109,040 7,209,873 100,833

Total current funds - unrestricted $ 162,795,944 $ 164,733,686 $ 1,937,743

Comparison of Budget Basis Expenditures and Encumbrances with

Budgeted Appropriations - Unrestricted Current FundsFor the year ended June 30, 2012

____________________________________________________________________________

54

Children's Total

Food Learning Auxiliary

Bookstore Service Center Enterprises

Net sales 11,368,948$ -$ -$ 11,368,948$

Cost of goods sold 8,532,683 - - 8,532,683

Gross profit on sales 2,836,265 - - 2,836,265

Other income 17,001 190,488 878,429 1,085,918

Total income 2,853,266 190,488 878,429 3,922,183

Less expenses:

Salaries and benefits 933,185 - 1,119,325 2,052,510

Other expenses 186,125 32,707 133,132 351,964

Total expenses 1,119,310 32,707 1,252,457 2,404,474

Income (loss) of

auxiliary enterprises 1,733,956$ 157,781$ (374,028)$ 1,517,709$

Bookstore percentages:

Gross profit to net sales 24.9%

Expenses to net sales 9.8%

Revenue Expenditures

Bookstore net sales 11,368,948$ Bookstore cost of goods sold 8,532,683$

Other income 1,085,918 Total expenses 2,404,474

Scholarship allowances (3,385,505) Eliminations (144,962)

Interfund sales (229,200)

Total 8,840,161$ Total 10,792,195$

Summary of Total Revenue and Expenditures

Reconciliation to Statement of Revenues, Expenses and Changes in Net Assets

Operations of Auxiliary EnterprisesFor the year ended June 30, 2012

____________________________________________________________________________

55

Credit Non-Credit Total

Maryland resident students:

In county credit students 11,593.95 - 11,593.95

Out of county credit students 3,853.43 - 3,853.43

Non-credit students - 4,505.77 4,505.77

Total state eligible FTE's 15,447.38 4,505.77 19,953.15

Total ineligible FTE's

Out of State 438.88 - 438.88

Other 88.58 354.91 443.49

Total ineligible FTE's 527.46 354.91 882.37

Total FTE's 15,974.84 4,860.68 20,835.52


Schedule of Full-Time Equivalent Students

statisticalsection

MCM LV I I


iv community engagement

CCBC will earn the support and respect of our

communities by being a good neighbor and providing

beneficial learning experiences highly valued by

individuals, community organizations, businesses,

industries and the county government.

____________________________________________________________________________

56

Statistical Section

This section of the CCBC comprehensive annual financial report presents detailed information as

a context for understanding what the information in the financial statements, note disclosures,

and required supplementary information says about CCBC‟s overall financial health.

Since CCBC is a component unit of Baltimore County, Maryland, there is data included from the

Baltimore County comprehensive annual financial report. The data contained in the County

schedules has not been subjected to independent audit. The schedules are intended to support the

basic financial statements and supporting schedules in the Financial Section.

Financial Trends

The following schedules contain trend information to help the reader understand how CCBC and

Baltimore County‟s performance and well-being has changed over time.

Unrestricted funds-Revenue and expenditures by function (budget basis)

Net assets and changes in net assets (ten-year trend)

Net assets and changes in net assets by component – Baltimore County, Maryland

(ten-year trend)

Fund balances of governmental funds – Baltimore County, Maryland (ten-year trend)

Schedule of Capital Asset Information

Revenue Capacity

The following schedules contain information to help the reader assess CCBC‟s most significant

local revenue source, tuition and fees.

Full-time equivalent students (ten-year trend)

Tuition and fees for full-time credit students (ten-year trend)

General fund tax revenues by source, Baltimore County, Maryland

Property tax levies & collections – Baltimore County, Maryland

Property tax rates – direct and overlapping governments – Baltimore County,

Maryland

Taxable assessed value and estimated actual value of taxable property – Baltimore

County, Maryland

Principal property taxpayers – Baltimore County, Maryland

____________________________________________________________________________

57

Debt Capacity

The following schedules contain information to help the reader assess the affordability of

Baltimore County‟s current levels of outstanding debt and the County‟s ability to issue additional

debt in the future.

Schedule of Capital Leases

Legal Debt Margin – Baltimore County, Maryland

Ratios of Metropolitan District (MD) General Obligation (GO) Debt to Estimated

Actual Value of Property and MD GO Debt Per Capita – Baltimore County,

Maryland

Ratios of Consolidated Public Improvement (CPI) General Obligation (GO) Debt to

Estimated Actual Value of Property and CPI GO Debt Per Capita – Baltimore

County, Maryland

Demographic and Economic information

The following schedules offer demographic and economic indicators to help the reader

understand the environment within which Baltimore County‟s and CCBC‟s financial activities

take place.

Demographic and Economic Statistics – Baltimore County, Maryland

Principal Employers – Baltimore County, Maryland

Operating information

A review of all of the schedules in this statistical section (pgs 58-81) will help the reader

understand how the information in CCBC‟s and Baltimore County, Maryland‟s financial report

relate to the services each provides and the activities each performs. Including the schedules

below:

Full-Time Equivalent County Government Employees by Function – Baltimore

County, Maryland

Schedule of Operating Indicators – Level of Service

____________________________________________________________________________

58

Full-Time Equivalent Students

Included is the last ten years of FTE (full time equivalent) students for CCBC. This shows the

level of growth or decline for the ten-year time frame. The number of FTE students is directly

related to revenue capacity with regard to tuition and fees. This schedule includes all FTE

regardless of whether or not they were counted for state funding.

Credit Non Credit

Fiscal Year FTE FTE Total

2003 11,622 5,346 16,968

2004 11,819 5,139 16,958

2005 12,027 5,164 17,191

2006 12,010 4,757 16,767

2007 11,763 4,494 16,257

2008 11,912 4,468 16,380

2009 12,915 4,923 17,838

2010 14,970 5,167 20,137

2011 16,020 4,946 20,966

2012 15,975 4,861 20,836

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

FT

E

Fiscal Year

Credit Non Credit

____________________________________________________________________________

59

Unrestricted Funds - Comparison of Revenues to Expenditures,

Encumbrances and Transfers by Function (Budgetary Basis)Last Ten Fiscal Years

2012 2011 2010 2009

Revenue by Source:

Student Tuition & Fees 81,542,296$ 75,595,996$ 65,337,456$ 54,838,459$

State of Maryland 34,398,366 33,670,348 34,524,096 35,977,760

Baltimore County 44,257,668 43,631,309 42,635,645 42,077,644

Other 2,825,820 3,129,133 4,796,912 4,293,269

Total 163,024,150$ 156,026,786$ 147,294,109$ 137,187,132$

Expenditures and Encumbrances:

Instruction 79,661,771$ 77,246,431$ 72,087,865$ 65,277,829$

Public Service 402,966 385,361 391,544 383,222

Academic Support 11,475,143 11,712,432 11,529,657 11,522,326

Student Services 15,344,815 14,678,548 13,862,617 12,586,841

Institutional Support 33,100,898 30,813,445 28,709,164 29,054,708

Operations & Maint of Plant 15,701,311 14,229,197 14,762,388 13,980,555

Mandatory Transfers 7,109,040 6,287,422 5,155,814 4,361,333

Total 162,795,944$ 155,352,837$ 146,499,050$ 137,166,814$

Fiscal Year

____________________________________________________________________________

60

2008 2007 2006 2005 2004 2003

50,607,177$ 49,645,117$ 49,203,332$ 47,966,460$ 44,922,795$ 40,933,602$

36,341,154 31,761,156 30,160,307 30,114,340 30,114,340 32,308,840

41,863,707 41,550,207 39,633,953 36,364,390 35,372,506 35,229,673

5,599,777 5,997,891 4,308,466 2,702,193 2,270,861 2,452,576

134,411,815$ 128,954,371$ 123,306,058$ 117,147,383$ 112,680,502$ 110,924,691$

63,155,097$ 59,949,068$ 59,878,425$ 53,961,269$ 52,810,763$ 54,254,979$

355,925 347,049 346,163 330,068 423,716 401,294

11,359,760 10,440,252 10,598,653 10,795,242 10,956,054 10,196,848

11,643,835 10,788,331 10,014,420 9,569,258 9,220,936 8,879,748

28,278,317 26,732,612 24,254,607 24,173,897 24,772,523 23,350,561

14,137,469 12,888,943 12,897,839 11,571,380 11,480,196 10,993,526

4,084,437 3,985,549 3,670,306 3,520,789 3,016,314 2,847,735

133,014,840$ 125,131,803$ 121,660,413$ 113,921,903$ 112,680,502$ 110,924,691$

Fiscal Year

____________________________________________________________________________

61

Net Assets

Last Ten Fiscal Years

2012 2011 2010

Invested in capital assets, net of related debt 148,483,939$ 131,482,973$ 120,709,292$

Unrestricted (1,836,601) 5,488,840 8,903,958

Total net assets 146,647,338$ 136,971,813$ 129,613,250$

Changes in Net Assets


2012 2011 2010

Operating Revenues

Student tuition and fees (net of scholarship allowances) 60,941,808$ 58,643,267$ 51,992,696$

Auxiliary enterprises (net of scholarship allowances) 8,840,161 9,284,212 6,890,740

Other 2,308,525 1,945,976 2,038,909

Total operating revenues 72,090,494 69,873,455 60,922,345

Operating Expenses

Instruction 88,701,180 85,555,338 79,005,817

Public service 398,151 389,025 392,541

Academic support 11,325,684 11,703,227 10,812,664

Student services 17,646,615 17,433,094 16,756,328

Institutional support 33,569,783 30,999,061 28,369,288

Operation and maintenance of plant 15,242,584 14,267,592 14,738,398

Depreciation 8,221,825 7,063,667 5,978,365

Student aid 19,699,324 19,140,617 14,140,283

Auxiliary enterprises 10,792,195 10,868,244 10,337,435

Certain fringe benefits paid directly by State of Maryland 7,270,896 7,068,955 6,432,309

Other 11,341,882 5,662,487 997,133

Total operating expenses 224,210,119 210,151,307 187,960,561

Operating loss (152,119,625) (140,277,852) (127,038,216)

Nonoperating Revenues (Expenses)

State appropriations 34,398,366 33,670,348 34,524,096

Certain fringe benefits paid directly by State of Maryland 7,270,896 7,068,955 6,432,309

County appropriations, net of debt service 38,462,795 38,262,759 36,855,145

Grants - federal, state, county and local 54,840,160 50,577,598 43,003,283

Gifts 450,242 436,242 512,963

Investment income 13,630 22,601 23,986

Loss on disposal of capital assets - (17,372) -

Total nonoperating revenues (expenses) 135,436,089 130,021,131 121,351,782

Loss before other revenues, extraordinary items (16,683,536) (10,256,721) (5,686,434)

Other revenues

County capital appropriations 25,717,631 17,007,158 23,642,208

State capital appropriations 641,430 608,126 651,880

Other capital financing sources - - -

Total other revenues 26,359,061 17,615,284 24,294,088

Extraordinary Item

Sale of FCC License - - -

Total change in net assets 9,675,525$ 7,358,563$ 18,607,654$

____________________________________________________________________________

62

2009 2008 2007 2006 2005 2004 2003

101,954,697$ 92,403,578$ 83,892,390$ 75,987,540$ 72,365,119$ 72,959,423$ 72,386,488$

9,050,899 9,138,362 4,220,461 6,581,908 6,007,364 3,725,762 4,910,861

111,005,596$ 101,541,940$ 88,112,851$ 82,569,448$ 78,372,483$ 76,685,185$ 77,297,349$

2009 2008 2007 2006 2005 2004 2003

46,510,810$ 43,347,471$ 43,987,131$ 41,541,931$ 40,110,195$ 37,176,525$ 34,341,798$

6,819,780 6,617,473 6,703,458 6,793,117 6,449,373 6,374,664 6,217,187

2,692,980 469,909 241,894 240,425 245,817 408,696 411,125

56,023,570 50,434,853 50,932,483 48,575,473 46,805,385 43,959,885 40,970,110

69,846,820 68,806,194 63,775,426 62,261,013 57,857,085 56,733,430 56,922,393

394,705 357,597 347,791 346,378 321,009 428,370 397,048

11,557,331 11,340,246 10,536,205 10,570,463 10,552,358 10,138,601 10,024,698

15,610,080 13,830,576 13,606,933 12,812,001 11,944,599 11,512,586 11,128,158

29,765,628 29,128,875 27,242,867 24,090,824 24,964,292 24,705,492 22,099,885

14,393,964 14,072,525 13,522,690 12,423,301 12,386,960 11,490,407 10,956,755

5,154,161 4,484,810 4,082,623 4,182,637 3,911,006 3,816,901 3,450,605

8,043,485 5,478,246 5,795,855 4,323,217 5,135,707 4,579,625 4,589,789

9,063,015 8,483,553 8,028,211 7,953,946 7,805,419 7,412,031 6,990,714

5,627,542 5,475,265 4,638,579 4,299,205 4,463,666 4,410,238 4,200,450

2,575,344 4,179,781 2,009,927 1,418,308 1,641,796 1,309,518 2,085,330

172,032,075 165,637,668 153,587,107 144,681,293 140,983,897 136,537,199 132,845,825

(116,008,505) (115,202,815) (102,654,624) (96,105,820) (94,178,512) (92,577,314) (91,875,715)

35,977,760 36,341,154 31,761,156 30,160,307 30,114,340 30,114,340 32,308,840

5,627,542 5,475,265 4,638,579 4,299,205 4,463,666 4,410,238 4,200,450

41,912,812 38,332,055 38,332,055 36,714,493 33,658,744 32,898,214 32,911,629

27,927,321 23,584,081 20,224,078 20,391,255 21,172,740 19,948,587 18,401,082

783,717 419,455 242,135 436,785 228,884 102,056 465,204

211,337 2,579,552 2,606,302 2,088,449 1,667,900 1,256,285 1,348,427

(129,465) (3,530) (649,441) (769,724) (622,625) (1,193,934) (1,629,919)

112,311,024 106,728,032 97,154,864 93,320,770 90,683,649 87,535,786 88,005,713

(3,697,481) (8,474,783) (5,499,760) (2,785,050) (3,494,863) (5,041,528) (3,870,002)

10,256,957 10,591,526 8,858,125 6,471,140 4,108,152 4,164,709 9,690,708

2,904,180 2,904,180 2,185,038 - - - -

- 408,166 - 510,875 1,074,009 264,655 466,839

13,161,137 13,903,872 11,043,163 6,982,015 5,182,161 4,429,364 10,157,547

- 8,000,000 - - - - -

9,463,656$ 13,429,089$ 5,543,403$ 4,196,965$ 1,687,298$ (612,164)$ 6,287,545$

____________________________________________________________________________

63

Credit Tuition and Fees per Credit Hour

Last Ten Academic Years

Academic Year

Beginning in Fall

Tuition Fees Total

2003 77 10 87

2004 87 11 98

2005 87 14 101

2006 87 13 100

2007 90 13 103

2008 90 13 103

2009 90 13 103

2010 90 13 103

2011 100 13 113

2012 103 22 125

Tuition Fees Total

2003 150 10 160

2004 150 11 161

2005 150 14 164

2006 164 13 177

2007 174 13 187

2008 174 13 187

2009 174 13 187

2010 183 13 196

2011 191 13 204

2012 196 29 225

Tuition Fees Total

2003 205 10 215

2004 205 11 216

2005 205 14 219

2006 226 13 239

2007 236 13 249

2008 261 13 274

2009 261 13 274

2010 274 13 287

2011 286 13 299

2012 294 36 330

Note: Fees are defined as: Consolidated, registration, student, technology and activity fees.

Lab, graduation, physical education fees, etc. are not included.

Full-Time attendance is defined as at least 12 credit hours per semester.

Source: Maryland Association of Community Colleges (MACC) databook

In-County

Out-of-County

Out-of-State

____________________________________________________________________________

64

The following schedule shows the volume, usage and nature of CCBC‟s net capital assets totals.

This schedule represents four years and will accumulate each year until ten years of data

becomes available.

Schedule of Capital Asset Information

Last Four Fiscal Years (years of available data) a

2012 2011 2010 2009

Buildings b

72 74 72 82

Net assignable square feet by use:

Classroom 129,435 119,300 122,392 127,712

Laboratory 204,339 202,486 183,325 184,558

Offices 226,792 224,807 209,659 209,659

Libraries/Study 54,576 57,214 56,961 56,961

Auxiliary c

41,720 41,720 41,720 41,720

Special Use d

158,708 160,018 174,295 174,295

General Use 66,220 62,705 85,539 85,539

Support 35,838 34,449 47,395 47,103

Unclassified e

62,038 21,085 19,905 19,905

Libraries 3 3 3 3

Number of volumes 196,350 191,190 175,680 156,210

Dining facilities 3 3 3 3

Childcare facilities 3 3 3 3

Bookstores 3 3 3 3

Athletic facilities:

Practice and intramural fields 14 14 14 14

Pools 3 3 3 3

Gymnasiums 3 3 3 3

Fitness centers 3 3 3 3

Tennis courts f

19 25 25 25

Racquetball courts 4 4 4 4

Transportation:

Vans 39 37 38 30

Trucks 38 47 49 44

Other vehicles 26 36 37 31

Parking capacity 5,594 5,594 5,754 5,754

aHistorical trend data is not available prior to FY2009. The years will accumulate each year until

ten years of data is presented. b

The building removed was the C-Temp building at CCBC Essexc

Auxiliary space was restated for previous years.d

Special use includes pools, gymnasiums, and fitness centerse

Unclassified includes the portion of the building used for The Baltimore County Police Academy. It also

includes Catonsville F bldg, Dundalk L bldg and Essex F bldg space that is not in use due to construction.f Six tennis courts are damaged and were placed out of service pending repairs

____________________________________________________________________________

65

Schedule of Capital Leases Last Two Fiscal Years

Refer to Note 7 on page 40 for more details regarding the CCBC capital leases.

Schedule of Operating Indicators – Level of Service For the six years ended June 30, 2012 (information will accumulate until ten years of data is available)

FY2012 FY2011

Total commitment under capital leases 1,446,053$ 1,897,097$

Less amounts representing interest (65,665) (125,971)

Present value of future minimum lease payments 1,380,388$ 1,771,126$

2012 2011 2010 2009 2008 2007

Certificates 604 476 379 370 421 375

Associate Degrees (transfer and career) 2,132 1,854 1,703 1,578 1,654 1,410

Total 2,736 2,330 2,082 1,948 2,075 1,785

Below represents the breakdown of the above totals by school. The amounts below are combined

certificates and degrees awarded.

School 2012 2011 2010 2009 2008 2007

School of Applied and Information Tech 364 356 260 323 400 268

School of Business and Social Science 1,515 1,240 1,024 909 897 696

School of Health Professions 568 514 469 398 374 395

School of Justice 152 117 185 176 177 193

School of Liberal Arts 54 40 24 19 21 8

School of Math and Science 76 50 74 42 18 24

Other 7 13 46 81 188 201

Total 2,736 2,330 2,082 1,948 2,075 1,785

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66

Principal Employers

Baltimore County, Maryland

Current Year and Nine Years Ago

2012

Employees

Percentage of Total

County Employment

Social Security Administration/CMS 16,000 4.47

Baltimore County Public Schools 14,327 4.01

Baltimore County Government 8,262 2.31

Greater Baltimore Medical Center 3,700 1.03

Towson University 3,474 0.97

Franklin Square Hospital 3,470 0.97

St. Joseph Medical Center 2,109 0.59

UMBC 1,952 0.55

Carefirst, Inc. 1,934 0.54

Sheppard Pratt Health System 1,864 0.52

Total 57,092 15.96

Employer 2003

Baltimore County Public Schools Employees

Percentage of Total

County Employment

Social Security Administration 13,671 3.79

Baltimore County Government 8,950 2.48

Bethlehem Steel Corp./Sparrows Point Division 8,037 2.23

Greater Baltimore Medical Center 3,000 0.83

Center for Medicare & Medicaid Services - CMS 3,000 0.83

T. Rowe Price Associates, Inc. 2,798 0.78

CareFirst BlueCross & BlueShield 2,796 0.77

St. Joseph Medical Center 2,750 0.75

McCormick & Company, Inc. 2,300 0.64

2,294 0.64

49,596 13.74

Source: Baltimore County Department of Economic Development

Employer

____________________________________________________________________________

67

Statement of Net Assets by Component


Last Ten Fiscal Years (accrual basis of accounting, dollars expressed in thousands)

2012 2011 2010 2009 2008

Governmental activities

Invested in capital assets, net of related debt a

1,386,096$ 1,541,265$ 1,593,450$ 1,595,901$ 1,523,265$

Restricted 27,251 26,653 57,713 73,357 122,079

Unrestricted (deficit) (345,769) (343,048) (306,914) (67,683) 24,814

Total governmental activities net assets 1,067,578$ 1,224,870$ 1,344,249$ 1,601,575$ 1,670,158$

Business-type activities

Invested in capital assets, net of related debt 566,002$ 583,279$ 568,687$ 568,225$ 489,563$

Unrestricted (deficit) (175,208) (158,571) (159,734) (137,808) (62,957)

Total business-type activities net assets 390,794$ 424,708$ 408,953$ 430,417$ 426,606$

Primary government

Invested in capital assets, net of related debt 1,952,098$ 2,124,544$ 2,162,137$ 2,164,126$ 2,012,828$

Restricted 27,251 26,653 57,713 73,357 122,079

Unrestricted (deficit) (520,977) (501,619) (466,648) (205,491) (38,143)

Total primary government net assets 1,458,372$ 1,649,578$ 1,753,202$ 2,031,992$ 2,096,764$

a Fiscal year 2004 reflects an accounting change of $949 million for retroactive reporting of costs

incurred prior to July 1, 2001 associated with the County's governmental

activities infrastructure assets.

Source: Baltimore County Office of Budget and Finance

Fiscal Year

____________________________________________________________________________

68

2007 2006 2005 2004 2003

1,492,767$ 1,465,260$ 1,385,791$ 1,303,115$ 262,897$

15,324 17,807 12,135 8,853 9,488

103,053 46,525 (43,935) (72,658) (51,982)

1,611,144$ 1,529,592$ 1,353,991$ 1,239,310$ 220,403$

543,107$ 524,996$ 482,784$ 440,818$ 419,453$

(107,952) (68,780) (12,176) 37,529 64,392

435,155$ 456,216$ 470,608$ 478,347$ 483,845$

2,035,874$ 1,990,256$ 1,868,575$ 1,743,933$ 682,350$

15,324 17,807 12,135 8,853 9,488

(4,899) (22,255) (56,111) (35,129) 12,410

2,046,299$ 1,985,808$ 1,824,599$ 1,717,657$ 704,248$

Fiscal Year

____________________________________________________________________________

69

Fund Balances of Governmental Funds


Last Ten Fiscal Years (modified accrual basis of accounting, dollars expressed in thousands)

2012 2011 2010* 2009* 2008*

General Fund

Nonspendable 7,109$ 6,942$ 5,906$ 5,911$ 5,431$

Restricted 99,492 12,689 17,763 31,132 2,657

Committed - - - - -

Assigned 65,659 65,223 99,589 141,214 143,571

Unassigned 230,145 165,200 109,231 82,703 118,530

Total General Fund 402,405 250,054 232,489 260,960 270,189

All other governmental funds

Nonspendable -$ -$ -$ -$ -$

Restricted 22,161 21,365 17,835 14,108 10,925

Committed - - - - -

Assigned 4,699 7,184 5,926 22,816 8,860

Unassigned (112,730) (157,090) (209,354) (98,521) (48,410)

Total all other governmental funds (85,870) (128,541) (185,593) (61,597) (28,625)

Total governmental funds 316,535$ 121,513$ 46,896$ 199,363$ 241,564$

a In FY 2007 the County transferred $114.4 million and $80 million from the General Fund and the

Self-Insurance Program Internal Service Fund, respectively, to a Post Employment Benefit (OPEB)

Fund to accumulate funds to meet future annual required contributions (ARC) to an OPEB Trust Fund.

b In FY2008, the fund balance of $156.275 million in the OPEB Fund as of 6/30/07

was contributed to the OPEB Trust Fund.

* This information was prepared by the County Office of Budget and Finance based upon evaluation of fund balances

and was presented for comparative purposes only.


Fiscal Year

____________________________________________________________________________

70

2007* 2006* 2005* 2004* 2003*

4,061$ 4,468$ 4,111$ 3,673$ 3,395$

6,995 20,450 32,556 46,036 9,075

- - - - -

142,587 161,774 124,271 93,653 86,439

133,899 122,523 117,277 83,444 42,423

287,542 309,215 278,215 226,806 141,332

-$ -$ -$ -$ -$

10,333 13,083 12,135 8,853 9,488

- - - - -

166,138 9,602 2,587 41,501 3,330

(121,680) (91,614) (53,149) - (11,689)

54,791 (68,929) (38,427) 50,354 1,129

342,333$ 240,286$ 239,788$ 277,160$ 142,461$

Fiscal Year

____________________________________________________________________________

71

Statement of Changes in Net Assets



2012 2011 2010 2009 2008

Expenses

Governmental activities:

General government 510,823$ 449,008$ 390,428$ 457,696$ 423,224$

Public safety 340,263 346,253 339,301 336,325 321,024

Public works 187,816 150,606 198,075 163,493 166,234

Health and human services 152,493 144,972 144,614 141,023 134,617

Culture and leisure services 70,803 69,368 68,818 66,856 62,080

Economic and community development 13,379 16,232 13,743 10,578 8,762

Education 841,494 803,828 831,550 774,053 781,588

Interest on long-term debt 25,568 24,868 22,057 20,305 22,900

Total governmental activities expenses 2,142,639 2,005,135 2,008,586 1,970,329 1,920,429

Business-type activities:

Water and sewer services 277,788 225,545 240,626 223,534 229,754

Recreational facilities - - - - -

Total business-type activities expenses 277,788 225,545 240,626 223,534 229,754

Total primary government expenses 2,420,427$ 2,230,680$ 2,249,212$ 2,193,863$ 2,150,183$

Program Revenues


Charges for services:

General government 213,131$ 190,247$ 145,403$ 187,868$ 188,526$

Public safety 5,958 5,077 2,294 1,935 2,022

Public works 2,942 3,195 2,616 1,669 1,837



Economic and community development 487 851 713 571 939

Operating grants and contributions:

General government 2,457 5,778 2,894 3,093 2,587

Public safety 12,879 14,093 18,115 20,638 19,627

Public works 2,260 2,865 2,128 36,342 41,584



Economic and community development 16,386 24,115 17,938 8,249 6,569

Interest on long-term debt 6,853 4,064 1,137 - -

Capital grants and contributions 41,519 37,614 31,263 54,852 53,287

Total governmental activities program revenues 427,820 396,383 333,687 432,865 426,846

Business-type activities:

Charges for services:

Water and sewer services 220,188 224,510 206,031 200,741 189,246

Recreational facilities - - - - -

Operating grants and contributions 3,777 2,462 829 - -

Capital grants and contributions 11,282 14,126 12,071 25,585 30,850

Total business-type activities program revenues 235,247 241,098 218,931 226,326 220,096

Total primary government program revenues 663,067$ 637,481$ 552,618$ 659,191$ 646,942$


Fiscal Year

____________________________________________________________________________

72

2007 2006 2005 2004 2003

364,796$ 370,820$ 344,959$ 322,644$ 302,731$

284,729 268,561 246,937 231,618 232,827

187,130 154,883 154,490 116,548 95,535

124,274 112,427 117,270 109,405 104,755

56,889 52,746 47,476 42,449 42,730

7,713 9,473 10,562 14,340 13,660

786,468 691,906 666,277 642,794 672,214

21,940 20,568 23,895 22,004 22,937

1,833,939 1,681,384 1,611,866 1,501,802 1,487,389

222,606 215,217 173,803 175,148 158,398

- 4 929 868 817

222,606 215,221 174,732 176,016 159,215

2,056,545$ 1,896,605$ 1,786,598$ 1,677,818$ 1,646,604$

201,113$ 218,711$ 200,590$ 180,553$ 167,239$

3,294 2,783 2,887 3,057 3,426

2,273 2,420 2,153 2,701 1,873

4,155 4,527 4,522 3,237 4,146

2,578 2,164 523 489 425

601 505 503 454 491

9,172 2,979 2,379 1,744 1,533

19,499 24,930 23,881 18,685 20,812

43,257 41,790 34,168 27,610 34,542

92,341 86,606 91,476 85,294 82,427

1,745 1,276 1,138 1,151 1,330

7,075 7,268 9,154 12,937 12,244

- - - - -

42,348 37,550 42,552 38,398 38,094

429,451 433,509 415,926 376,310 368,582

168,715 165,606 144,419 148,656 132,097

- - 647 628 607

- - - - -

32,693 34,086 21,014 20,673 19,299

201,408 199,692 166,080 169,957 152,003

630,859$ 633,201$ 582,006$ 546,267$ 520,585$

Fiscal Year

____________________________________________________________________________

73

Statement of Changes in Net Assets (continued)



Fiscal Year

Net (Expense)/Revenue 2012 2011 2010 2009 2008

Governmental activities (1,714,819)$ (1,608,752)$ (1,674,899)$ (1,537,464)$ (1,493,583)$

Business-type activities (42,541) 15,553 (21,695) 2,792 (9,658)

Total primary government net expense (1,757,360)$ (1,593,199)$ (1,696,594)$ (1,534,672)$ (1,503,241)$

General Revenues and Other Changes in Net Assets


Taxes:

Property taxes 844,069$ 837,092$ 813,970$ 767,103$ 712,863$

Income taxes 565,571 534,553 473,792 569,736 661,125

Public service taxes 121,099 110,405 116,592 123,863 155,699

Grants and contributions not restricted to

specific programs:

State of Maryland 9,423 8,823 9,655 6,954 8,847

Unrestricted investment earnings 1,077 966 1,098 5,688 13,953

Gain on sale of capital assets - - - - -

Transfers - - - - 110

Total governmental activities 1,541,239 1,491,839 1,415,107 1,473,344 1,552,597

Business-type activities

Unrestricted investment earnings 360 256 177 1,094 1,219

Transfers - - - - (110)

Total business-type activities 360 256 177 1,094 1,109

Total primary government 1,541,599$ 1,492,095$ 1,415,284$ 1,474,438$ 1,553,706$

Change in Net Assets

Governmental activities (173,580)$ (116,913)$ (259,792)$ (64,120)$ 59,014$

Business-type activities (42,181) 15,809 (21,518) 3,886 (8,549)

Total primary government (215,761)$ (101,104)$ (281,310)$ (60,234)$ 50,465$


____________________________________________________________________________

74

2007 2006 2005 2004 2003

(1,404,488)$ (1,247,875)$ (1,195,940)$ (1,125,492)$ (1,118,807)$

(21,198) (15,529) (8,652) (6,059) (7,212)

(1,425,686)$ (1,263,404)$ (1,204,592)$ (1,131,551)$ (1,126,019)$

662,307$ 626,149$ 588,773$ 564,407$ 545,202$

589,994 572,136 531,090 473,017 420,710

180,736 199,591 173,530 147,997 128,450

9,165 8,553 8,622 6,932 8,394

43,777 17,547 8,262 3,003 5,070

- - - - -

61 (500) 344 - 18

1,486,040 1,423,476 1,310,621 1,195,356 1,107,844

198 637 1,257 561 1,027

(61) 500 (344) - (18)

137 1,137 913 561 1,009

1,486,177$ 1,424,613$ 1,311,534$ 1,195,917$ 1,108,853$

81,552$ 175,601$ 114,681$ 69,864$ (10,963)$

(21,061) (14,392) (7,739) (5,498) (6,203)

60,491$ 161,209$ 106,942$ 64,366$ (17,166)$

____________________________________________________________________________

75

Legal Debt Margin Information


Last Ten Fiscal Years (dollars expressed in thousands)

2012 2011 2010 2009

Consolidated Public Improvement (CPI)

General Obligation Debt

Assessed value

Real property 81,448,483$ 86,234,670$ 86,262,930$ 78,882,654$

Personal property 3,024,342 2,944,780 3,110,576 3,117,528

Total assessed value 84,472,825 89,179,450 89,373,506 82,000,182

Debt limit (4% of total assessed value) (1) 3,378,913 3,567,178 3,574,940 3,280,007

Debt applicable to limit:

Consolidated public improvement bonds 1,036,500 918,085 702,565 574,235

Pension liability funding 24,735 31,805 38,885 46,140

CPI commercial paper notes 240,000 174,900 174,900 175,000

Total debt applicable to debt limit 1,301,235 1,124,790 916,350 795,375

Legal debt margin 2,077,678$ 2,442,388$ 2,658,590$ 2,484,632$

Metropolitan District General Obligation Debt

Assessed value (2)

Real property 72,056,007$ 76,836,626$ 75,606,965$ 69,372,971$

Personal property 2,675,581 2,623,851 2,726,330 2,741,695

Total assessed value 74,731,588 79,460,477 78,333,295 72,114,666

Debt limit (3.2% of total assessed value) (3) 2,391,411 2,542,735 2,506,665 2,307,669

Debt applicable to limit:

Metropolitan District (MD) bonds 822,490 750,917 658,837 585,648

MD commercial paper notes 160,000 106,500 106,500 106,600

Total debt applicable to debt limit 982,490 857,417 765,337 692,248

Legal debt margin 1,408,921$ 1,685,318$ 1,741,328$ 1,615,421$

Notes:

(1) The County General Bond debt limit on assessed value of real property was changed from 10% to 4% beginning in FY 2007.

(2) Assessed value of property in the Metropolitan District.

(3) The Metropolitan District debt limit on assessed value of real property was changed from 8% to 3.2% beginning in FY 2007.


____________________________________________________________________________

76

2008 2007 2006 2005 2004 2003

69,345,671$ 60,039,162$ 53,194,118$ 48,292,908$ 45,488,827$ 43,465,587$

3,067,833 3,067,598 2,911,470 2,861,376 2,846,982 2,857,205

72,413,504 63,106,760 56,105,588 51,154,284 48,335,809 46,322,792

2,896,540 2,524,270 5,610,559 5,115,428 4,833,581 4,632,279

651,290 512,570 433,140 465,035 495,085 375,610

59,110 67,755 76,195 84,210 91,920 99,280

140,000 140,000 161,000 161,000 161,000 152,000

850,400 720,325 670,335 710,245 748,005 626,890

2,046,140$ 1,803,945$ 4,940,224$ 4,405,183$ 4,085,576$ 4,005,389$

61,053,851$ 52,712,637$ 46,572,148$ 42,305,762$ 40,177,878$ 38,447,111$

2,701,006 2,693,261 2,549,031 2,506,635 2,514,589 2,527,316

63,754,857 55,405,898 49,121,179 44,812,397 42,692,467 40,974,427

2,040,155 1,772,989 3,929,694 3,584,992 3,415,397 3,277,954

662,041 426,735 344,304 366,051 382,379 346,892

60,000 60,000 39,000 39,000 39,000 48,000

722,041 486,735 383,304 405,051 421,379 394,892

1,318,114$ 1,286,254$ 3,546,390$ 3,179,941$ 2,994,018$ 2,883,062$

____________________________________________________________________________

77

General Fund Tax Revenues by Source


Last Ten Fiscal Years (budgetary basis, dollars expressed in thousands)

Fiscal Year Total Taxes

General

Property

Taxes

Income

Taxes

Other Local

Taxes (1)

2003 1,097,478 547,015 430,224 120,239

2004 1,169,179 563,857 465,970 139,352

2005 1,263,927 588,640 510,788 164,499

2006 1,364,725 626,750 547,875 190,100

2007 1,441,828 663,289 607,932 170,607

2008 1,499,041 713,116 640,985 144,940

2009 1,518,367 765,573 640,176 112,618

2010 1,414,149 814,100 495,656 104,393

2011 1,448,849 837,056 514,715 97,078

2012 1,545,610 845,238 593,204 107,168

(1)


Fiscal year 2012 other local taxes include: title transfer tax - $43.517 million,

recordation tax - $20.398 million, electricity - $15.200 million, telephone tax - $9.166

million, admissions and amusement tax - $5.503 million, motel and hotel

occupancy tax - $8.2320 million, 911 fee - $4.545 million and auto trailer camp tax -

$0.607 million.

Property Tax Levies and Collections



Collected within the Fiscal Year

of the Levy Total Collections to Date

Fiscal

Year

Ended

Original

Tax Levy

Prior Year

Adjusted

Levy

Total

Adjusted

Levy Amount

Percentage

of Original

Levy

Collections in

Subsequent

Years Amount

Percentage of

Original Levy

2003 549,094$ (3,876)$ 545,218$ 545,797$ 99.4% 3,149$ 548,946$ 99.9%

2004 568,642 (1,914) 566,728 565,489 99.4 275 565,764 99.5

2005 594,413 (3,317) 591,096 590,984 99.4 (798) 590,186 99.3

2006 629,732 (3,927) 625,805 627,157 99.6 531 627,688 99.7

2007 663,836 (2,486) 661,350 661,344 99.6 129 661,473 99.6

2008 711,785 (1,955) 709,830 709,242 99.6 869 710,111 99.8

2009 763,191 (1,461) 761,730 758,977 99.4 886 759,863 99.6

2010 808,956 (881) 808,075 805,384 99.6 1,985 807,369 99.8

2011 838,282 (1,889) 836,383 834,831 99.6 1,334 836,165 99.7

2012 849,559 629 850,188 841,983 99.2 3,264 845,257 99.5


____________________________________________________________________________

78

Property Tax Rates - Direct and Overlapping Governments



Fiscal

Year Real Personal Total (a)

2003 1.115$ 2.7875$ 1.2180$

2004 1.115 2.7875 1.2130

2005 1.115 2.7875 1.2090

2006 1.115 2.7875 1.2020

2007 1.100 2.7500 1.1810

2008 1.100 2.7500 1.1700

2009 1.100 2.7500 1.1630

2010 1.100 2.7500 1.1620

2011 1.100 2.7500 1.1550

2012 1.100 2.7500 1.1590

Notes:

(1) Rates are per $100 of assessed value.

(2)

(3) There are no tax limits.

(a)Weighted average of the Individual Real and Personal direct rates


Except for the State of Maryland, there is no separate taxing authority that overlaps the County

geographically.

County Direct Rates

Taxable Assessed Value and Estimated Actual Value of Taxable Property



Real Property (1) Personal Property

Fiscal

Year

Ended

Residential

Property

Commercial

Property

Total Real

Property

Railroad/

Utility

Property

Other

Business

Property

Total

Personal

Property

Total Taxable

Assessed

Value (2)

Total

Direct Rate

Estimated

Actual Value

2003 33,364,185$ 10,101,402$ 43,465,587$ 1,232,584$ 1,624,621$ 2,857,205$ 46,322,792$ 1.218$ 46,322,792$

2004 35,308,428 10,180,399 45,488,827 1,256,859 1,590,123 2,846,982 48,335,809 1.213 48,335,809

2005 37,842,322 10,450,586 48,292,908 1,282,225 1,579,151 2,861,376 51,154,284 1.209 51,154,284

2006 42,299,963 10,894,155 53,194,118 1,291,619 1,619,851 2,911,470 56,105,588 1.202 56,105,588

2007 48,631,721 11,407,441 60,039,162 1,351,599 1,715,999 3,067,598 63,106,760 1.181 63,106,760

2008 56,863,450 12,482,221 69,345,671 1,255,594 1,812,240 3,067,833 72,413,504 1.170 72,413,504

2009 62,317,297 16,565,357 78,882,654 1,257,017 1,860,511 3,117,528 82,000,182 1.163 82,000,182

2010 67,285,085 18,977,845 86,262,930 1,225,048 1,885,528 3,110,576 89,373,506 1.162 89,373,506

2011 66,400,696 19,833,974 86,234,670 1,241,027 1,703,753 2,944,780 89,179,450 1.155 89,179,450

2012 61,900,847 19,547,635 81,448,482 1,229,659 1,794,683 3,024,342 84,472,824 1.159 84,472,824

Note:

(1) Tax exempt properties are not included

(2) Expressed in dollars per $100 of assessed value


____________________________________________________________________________

79

Principal Property Taxpayers


Current Year and Nine Years Ago (dollars expressed in thousands)

2012 2003

Taxpayer

Taxable

Assessed

Value

Percentage of

Total Taxable

Assessed

Value Taxpayer

Taxable

Assessed

Value

Percentage of

Total Taxable

Assessed

Value

BGE 997,578$ 1.18% BGE 836,615$ 1.73%

Verizon 315,450 0.37% Verizon 381,479 0.79%

Merritt Management Corp. 444,481 0.53% Merritt Mgt Corp 221,782 0.46%

Towson Town Center Associates 244,751 0.29% Comcast 62,392 0.13%

RG Steel (previously Bethlehem Steel) 240,719 0.28% Towson Town Center Associates 142,771 0.30%

Comcast 87,955 0.10% Town & Country 139,344 0.29%

TRP Surburban 174,438 0.21% Oak Campus Partners, LLC. 136,487 0.28%

Walmart 191,945 0.23% Maryland Health and Higher Education 120,812 0.25%

Oak Campus Partners, LLC. 167,247 0.20% Bethlehem Steel 125,359 0.26%

General Motors Co. 89,070 0.11% Nottingham Properties 96,865 0.20%

2,953,634$ 3.50% 2,263,906$ 4.69%

Source: State of Maryland Assessment Files and Baltimore County Office of Budget and Finance Tax Files

Demographic and Economic Statistics



Fiscal

Year

Estimated

Population

(1)

Total Personal

Income

(expressed in

thousands)

Per Capita

Personal

Income (2)

Median

Age (3)

Education Level

in Years of

Formal

Schooling (3)

School

Enrollment

(4)

Unemployment

Rate (5)

2003 777,756 31,282,233$ 40,403$ 37.8 14.8 108,604 4.9 %

2004 784,371 33,385,795 42,841 37.9 14.8 108,792 4.7

2005 789,110 34,389,478 43,580 37.8 14.7 108,015 4.5

2006 793,733 37,035,713 46,660 37.8 14.8 107,386 4.1

2007 796,073 38,726,771 48,647 37.9 14.9 105,330 3.7

2008 798,651 40,008,568 50,095 38.0 14.9 104,714 4.5

2009 801,808 38,464,815 47,973 38.0 15.0 103,643 7.9

2010 805,964 39,717,586 49,280 38.4 15.0 103,832 7.8

2011 909,941 41,510,448 51,251 39.1 15.0 104,331 7.9

2012 813,556 43,363,550 53,301 39.1 15.4 105,315 7.7

Notes:

(1) U.S. Bureau of the Census, Population Estimates Branch. Total personal income growth rate estimated at 4.51% for FY2011

and 4.46% for FY2012.

(2)

(3) Baltimore County Office of Planning

(4) Baltimore County Board of Education

(5) Maryland Department of Labor and Licensing Regulation


Data extracts prepared by the U.S. Bureau of the Census and Maryland Office of Planning. Per Capita Personal Income growth

rate estimated at 4.00% for FY2011 and FY2012.

____________________________________________________________________________

80

Ratios of Metropolitan District (MD) General Obligation (GO) Debt to

Estimated Actual Value of Property and MD GO Debt Per Capita



Fiscal

Year

Estimated

Population (1)

Estimated Actual

Value of Real &

Personal

Property

MD GO Debt

(2)

Percent of MD GO

Debt to Estimated

Actual Value of

Property

MD GO

Debt per

Capita (3)

2003 777,756 40,974,427$ 394,892$ 0.96 507.73$

2004 784,371 42,692,467 421,379 0.99 537.22

2005 789,110 44,812,397 405,051 0.90 513.30

2006 793,733 49,121,179 433,304 0.88 545.91

2007 796,073 55,405,898 535,035 0.97 672.09

2008 798,651 63,754,867 722,041 1.13 904.08

2009 801,808 72,114,666 692,248 0.96 863.36

2010 805,964 78,333,295 765,337 0.98 949.59

2011 809,941 79,460,477 857,417 1.08 1,058.62

2012 813,556 74,731,588 982,490 1.31 1,207.65

Notes:

(1) U.S. Bureau of the Census, Population Estimates Branch

(2) The County has no resources restricted to repaying the principal of outstanding debt.

(3) Expressed in dollars


Ratios of Consolidated Public Improvement (CPI) General Obligation (GO) Debt to

Estimated Actual Value of Property and CPI GO Debt Per Capita

Baltimore County. Maryland


Fiscal

Year

Estimated

Population (1)

Estimated Actual

Value of Real &

Personal Property

CPI GO

Debt (2)

Percent of CPI GO

Debt to Estimated

Actual Value of

Property

CPI GO Debt

per Capita (3)

2003 777,756 46,322,792$ 670,390$ 1.45 % 861.95$

2004 784,371 48,335,809 791,005 1.64 1,008.46

2005 789,110 51,154,284 752,245 1.47 953.28

2006 793,733 56,105,588 710,335 1.27 894.93

2007 796,073 63,106,760 757,825 1.20 951.95

2008 798,651 72,413,504 850,400 1.17 1,064.80

2009 801,808 82,000,182 795,375 0.97 991.98

2010 805,964 89,373,506 916,350 1.03 1,136.96

2011 809,941 89,179,450 1,124,790 1.26 1,388.73

2012 813,556 84,472,825 1,301,235 1.54 1,599.44

Notes:

(1) U.S. Bureau of the Census, Population Estimates Branch

(2) The County has no resources restricted to repaying the principal of outstanding debt.

(3) Expressed in dollars


____________________________________________________________________________

81

Full-time Equivalent County Government Employees by Function



Fiscal Year

2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

GENERAL GOVERNMENT

County Executive 14 14 15 15 15 15 15 15 15 15

Administrative Office 13 23 23 23 24 24 24 24 24 24

Office of Budget and Finance 132 184 160 163 151 151 143 141 139 139

Office of Law 39 30 32 32 33 34 46 47 48 48

Planning & Community Conservation 49 49 50 49 51 50 50 50 52 52

Office of Human Resources 34 32 33 33 32 34 34 34 35 37

Permits & Development Mgt. 202 188 223 224 223 222 215 216 215 215

County Council 37 37 37 37 37 37 38 38 38 38

County Auditor 19 19 19 19 19 19 19 19 19 19

Board of Appeals 9 10 10 10 10 10 10 10 10 10

Information Technology 186 186 186 176 148 148 145 136 134 130

Internal Service Funds 59 59 59 59 59 59 62 65 67 67

HEALTH & HUMAN SERVICES

Department of Health 526 531 533 550 552 555 558 553 582 557

Social Services 237 214 213 205 206 199 202 206 189 201

Social Services - State 12 12 12 16 17 17 17 17 17 17

Department of Aging 322 331 332 332 330 338 338 338 336 329

Environmental Protection 89 119 119 119 116 116 116 108 108 108

Local Management Board 5 7 10 9 9 8 8 6 6 7

Housing Office 64 59 60 60 60 67 67 80 80 79

RECREATION & COMM. SERV.

Recreation & Parks 329 315 336 333 325 347 311 261 260 268

Recreation - Enterprise Fund - - - - - - - 52 52 49

Economic Development 16 21 21 19 19 20 20 20 20 20

Community Development Block Grants 27 30 31 25 26 27 27 27 24 23

Workforce Development 48 45 49 32 29 28 31 34 37 33

Organization Contributions - - 2 1 1 1 1 1 1 1

PUBLIC WORKS 1,128 1,181 1,181 1,179 1,173 1,160 1,150 1,131 1,115 1,101

SUBTOTAL 3,596 3,696 3,746 3,720 3,665 3,686 3,647 3,629 3,623 3,587

PUBLIC SAFETY

Department of Corrections 470 473 472 472 471 444 435 410 350 350

Communications Center 186 187 187 192 193 193 192 192 192 191

Police Department 2,534 2,575 2,590 2,564 2,566 2,550 2,527 2,487 2,486 2,471

Fire Department 1,082 1,090 1,091 1,098 1,083 1,083 1,083 1,080 1,080 1,062

SUBTOTAL 4,272 4,325 4,340 4,326 4,313 4,270 4,237 4,169 4,108 4,074

STATE MANDATED AGENCIES

Circuit Court 89 100 100 98 98 97 92 90 91 104

Orphan‟s Court 5 5 5 5 5 4 4 4 4 4

Board Of Elections 14 14 14 14 14 15 15 13 10 10

Board Of Elections - State 26 26 26 26 26 26 26 24 24 22

State‟s Attorney 122 124 124 123 120 118 114 112 108 104

County Sheriff 104 104 104 100 100 100 94 94 94 94

Liquor License Commission 24 25 25 25 26 26 26 26 26 26

Cooperative Extension 2 2 2 2 2 2 2 2 2 2

Cooperative Extension - State 8 8 8 8 8 10 10 10 9 10

SUBTOTAL 394 408 408 401 399 398 383 375 368 376

EDUCATION, COMMUNITY

COLLEGE & LIBRARY

Community College 2,060 1,974 1,795 1,777 1,711 1,745 1,754 1,728 1,805 1,743

Education 14,327 14,606 14,537 14,757 14,472 14,399 14,286 14,119 13,976 13,671

Library 492 495 489 483 477 475 474 471 469 469

SUBTOTAL 16,879 17,075 16,821 17,017 16,660 16,619 16,514 16,318 16,250 15,883

TOTAL 25,141 25,504 25,315 25,464 25,037 24,973 24,781 24,491 24,349 23,920

Source: Baltimore County Office of Budget and Finance Budget Documents

the community college of baltimore county

Board of TrusteesThe Honorable Barbara Kerr Howe, Chair

Charles E. Kountz, Jr., Esquire, Vice Chair

Sandra L. Kurtinitis, Ph.D.President

Sheldon K. CaplisMichael P. ErtelDorothy E. FoosH. Scott Gehring, Ed.D.Linda C. GoldbergJames Gresham, Ed.D.Warren C. Hayman, Ed.D.

Wayne McDowellGloria K. McJiltonCecile V. MyrickGloria E. NelsonStephen J. Nolan, Esq.Patricia R. Norman