This week’s Financial FAQ:
Q: What is the difference between College funds, MCC Association funds and MCC Foundation funds? Are they interchangeable? Are the funds co-mingled or do they have separate bank accounts?
A: The College, the Association and the Foundation are separate legal entities each governed by its own board. Each entity has its own source of revenues and is responsible for its own operating expenses. Each entity operates with its own bank accounts and is subject to its own annual independent audit.
The Association is a not-for-profit corporation and supports the College in a variety of ways. The Association operates the bookstore, residence halls and the child care center, and generates revenue from those operations. Other sources of MCC Association revenue include student life fees, various grants, and investment income. The MCC Association uses its revenues to fund projects, provide services and purchase equipment that enhance student life such as the athletic programs, co-curricular programs and student services desk to mention a few.
The MCC Foundation is also a not-for-profit corporation and was established to solicit, receive and maintain funds exclusively for the benefit of the College. The Foundation’s major sources of revenue include gifts and donations from individuals, corporations and private foundations as well as investment income. This revenue is used in accordance with donor wishes to support specific College initiatives. These initiatives can include a variety of items such as student scholarships and capital projects like the PAC Center (i.e. the new field house).
As mentioned in response to a previous frequently asked question, the College’s primary revenue sources are student tuition, New York state aid, and local support from Monroe County. These revenues fund the College’s operating budget as approved by the College’s Board of Trustees, Monroe County, and SUNY. Expense items—such as Instruction, Academic Support, Libraries, Student Services, Facilities and General Administration— must be in accordance with SUNY regulations.
While funds from these separate legal entities are not co-mingled, they can be used in support of shared priorities. For instance, capital funds from New York and Monroe County built the R. Thomas Flynn Campus Center; funds from the MCC Association helped to furnish it. The key is that each entity has funding parameters and regulations that it must stay within.
If you have a financial question that you would like answered, send it to <"mailto:marcom@monroecc.edu">. Administrative Services and College and Community Relations will work together to answer your questions in upcoming issues of the MCC Daily Tribune.
Heze Simmons and Cynthia Cooper
Administrative Services and College and Community Relations
01/14/2009 |