http://www.redwoods.edu/District/Board/documents/October%201%202013%
20packet.pdf
REDWOODS COMMUNITY COLLEGE DISTRICT
BOARD OF TRUSTEES MEETING
October 1, 2013
Agenda Item #5.6.3
SUBJECT:
VICE PRESIDENT OF ADMINISTRATIVE SERVICES INFORMATIONAL
REPORT
RECOMMENDATION
For information Only. Quarterly Cash Flow and Burn Rate Analysis:
The annual cash flow forecast prepared for the District’s TRAN application was most recently
reported to the Board of Trustees on July 9, 2013. The cash flow forecast for 2013-14 is
presented below:
District Cash Flow Summary
Gen Fund,
Gen Fund &
TRAN & Empl Empl Benefits
2013-14 Cash Flows
Benefits Trust
Trust
7,010,216
$2,946,438
July-13
Projected
6,433,453
$1,823,886
August-13
Projected
5,675,443
$1,065,876
September-13
Projected
4,285,277
($324,290)
October-13
Projected
2,399,615
($1,600,385)
November-13
Projected
5,061,891
$1,061,891
December-13
Projected
1,538,171
($461,829)
January-14
Projected
395,823
($1,604,177)
February-14
Projected
(506,908)
($2,506,908)
March-14
Projected
486,851
$486,851
April-14
Projected
(900,947)
($900,947)
May-14
Projected
461,049
$461,049
June-14
Projected
General Fund
Only
$938,171
($100,911)
($775,407)
($2,082,058)
($3,274,651)
($528,910)
($1,969,256)
($3,028,225)
($3,847,565)
($770,518)
($2,074,916)
($629,611)
The chart above shows an expected $5.7 million cash balance for the District for September
2013. A Datatel query as of today (9-16-2013) shows a preliminary estimate of District cash
above that number, in the $6 million range. Cash balances change due to the timing of receipts
and disbursements. For example, a check is issued, but the District does not know with certainty
when a check will clear. The Chancellor’s Office provides a schedule of State payment dates,
but the District has no recourse when the State is a slow pay.
The District secured a smaller Tax and Revenue Anticipation Note (TRAN) for this fiscal year
than last fiscal year, from $4.0 million in 2012-13 to $2.4 million for 2013-14. The explanation
for the improved balances and reduced reliance on a TRAN is that the State has paid down some
deferrals, and recently the State has been sending payments on time.
According to this cash flow forecast, it will likely be prudent for the District to obtain a “crossyear” TRAN this Spring to cover the projected cash deficit in May and March, 2014. The
District obtained a cross-year TRAN in 2012-13 as well. The cash flow spreadsheet will be
updated later this Fall to determine if a cross-year TRAN is warranted for cash management.
This helps the District meet Accreditation Standard III.D.4. Financial resource planning is
integrated with institutional planning and Standard III.D.3.a. The institution has sufficient cash
flow and reserves to maintain stability…
BUDGET IMPLICATIONS
N/A
Board of Trustees - October 1, 2013
59