BALTIMORE CITY COMMUNITY COLLEGE Financial Statements ...

BALTIMORE CITY COMMUNITY COLLEGE

Financial Statements Together with

Report of Independent Public Accountants

For the Years Ended June 30, 2018 and 2017

JUNE 30, 2018 AND 2017

CONTENTS

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

1

MANAGEMENT¡¯S DISCUSSION AND ANALYSIS

3

FINANCIAL STATEMENTS

Statements of Net Position

15

Statements of Revenue, Expenses and Changes in Net Position

16

Statements of Cash Flows

17

Statements of Financial Position - BCCC Foundation

19

Statements of Activities ¨C BCCC Foundation

20

Notes to the Financial Statements

21

OTHER SUPPLEMENTARY INFORMATION

Schedules of Proportionate Share of Net Pension Liability

48

Schedules of Contributions

49

SUPPLEMENTAL DATA

Combining Schedules of Net Position

51

Combining Schedules of Revenue, Expenses and Changes in Net Position

55

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Board of Trustees

Baltimore City Community College

Report on the Financial Statements

We have audited the accompanying financial statements of Baltimore City Community College (the

College), a component unit of the State of Maryland, as of and for the years ended June 30, 2018 and 2017,

and the related notes to the financial statements, which collectively comprise the College¡¯s basic financial

statements as listed in the table of contents.

Management¡¯s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America; this includes the

design, implementation, and maintenance of internal control relevant to the preparation and fair presentation

of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor¡¯s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We did not

audit the component unit financial statements of Baltimore City Community College Foundation, Inc. (the

Foundation) as of and for the years ended June 30, 2018 and 2017. Those financial statements were audited

by another auditor whose report thereon has been furnished to us, and our opinion, insofar as it relates to

the amounts included for that entity, is based solely on the report of that auditor. We conducted our audit

in accordance with auditing standards generally accepted in the United States of America. Those standards

require that we plan and perform the audit to obtain reasonable assurance about whether the financial

statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial statements. The procedures selected depend on the auditor¡¯s judgment, including the assessment

of the risks of material misstatement of the financial statements, whether due to fraud or error. In making

those risk assessments, the auditor considers internal control relevant to the entity¡¯s preparation and fair

presentation of the financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity¡¯s internal

control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of

accounting policies used and the reasonableness of significant accounting estimates made by management,

as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

audit opinion.

200 International Circle ? Suite 5500 ? Hunt Valley ? Maryland 21030 ? P 410.584.0060 ? F 410.584.0061

Opinion

In our opinion, based on our audits and the report of the other auditor, the financial statements referred to

above present fairly, in all material respects, the respective financial position of the College and Foundation,

as of June 30, 2018 and 2017, and the respective changes in their financial position and, where applicable,

the cash flows thereof for the years then ended in accordance with accounting principles generally accepted

in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management¡¯s

discussion and analysis, Schedule of Proportionate Share of Net Pension Liability and Schedule of

Contributions be presented to supplement the basic financial statements. Such information, although not a

part of the basic financial statements, are 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. We do not express an opinion or provide any assurance on the information because the limited

procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audits were conducted for the purpose of forming an opinion on the financial statements that

collectively comprise the College¡¯s basic financial statements. The Combining Schedules of Net Position

and the Combining Schedules of Revenue, Expenses and Changes in Net Position are presented for

purposes of additional analysis and are not a required part of the basic financial statements. Such

information is the responsibility of management and was derived from and relates directly to the underlying

accounting and other records used to prepare the basic financial statements. The 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 basic financial statements or to the basic 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 as a whole.

Hunt Valley, Maryland

October 15, 2018

2

BALTIMORE CITY COMMUNITY COLLEGE

Management¡¯s Discussion and Analysis

Years Ended June 30, 2018 and 2017

In accordance with Governmental Accounting Standards Board (GASB), the management of

Baltimore City Community College (the College or BCCC) presents this Management's

Discussion and Analysis of the financial statements of the Baltimore City Community College, for

the years ended June 30, 2018 and 2017, with comparative totals for 2016.

Overview of the Financial Statements and Financial Analysis

This discussion and analysis of the College¡¯s financial statements provides an overview of the

College¡¯s financial activities for the years ended June 30, 2018 and 2017 with fiscal year 2016

data presented for comparative purposes. The emphasis of discussion about these statements is on

the current-year activity. Management has prepared the financial statements and the related

footnote disclosures along with this discussion and analysis.

The College has included the financial information of the Baltimore City Community College

Foundation, Inc. (Foundation) in its basic financial statements as a component unit. The

Foundation is a legally separate, tax-exempt component unit of the College. The Foundation acts

primarily as a fund-raising organization to supplement the resources that are available to the

College in support of its programs. The financial data used in this section excludes the Foundation.

Complete financial statements for the Foundation can be obtained from its Administrative Office

at 2901 Liberty Heights Ave, Baltimore, MD 21215. The emphasis of this Management¡¯s

Discussion and Analysis is on the College itself. Reference should be made to the separately

audited financial statements of the Foundation for additional information.

Financial Highlights

The College's financial statements consist of three basic financial statements and the notes that

provide information on the accounting alternatives used, and explanatory information and detail

on certain financial statement elements. The three basic financial statements are the Statement of

Net Position, the Statement of Revenue, Expenses and Changes in Net Position, and the Statement

of Cash Flows.

The Statement of Net Position presents information on the College¡¯s assets and deferred outflows

of resources, liabilities and deferred inflows of resources and net position, all as of the end of the

reporting period. Net position represents the difference between assets and liabilities, and is

detailed into classifications that help readers understand the constraints that the College must

consider in making decisions on expending assets. Over time, changes in net position can help in

understanding whether the financial condition of the College is improving or deteriorating.

Net position is divided into three major categories. The first category, net investment in capital

assets, provides the College¡¯s equity in property, plant and equipment owned by the College. The

next category is expendable restricted net position which is available for expenditure by the

College but which must be spent for purposes as determined by donors or external agencies that

have placed time or use restrictions on the use of the assets. The final category is unrestricted net

position, which is available at the discretion of the College.

3

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