AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
May 2, 2011
SUBJECT:
Cash Flow Update – 2010-11 Third Quarter
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 3
E.3
BACKGROUND:
In fiscal year 2004-05, the state initiated the practice of deferring a portion of the expected June allocation
to the next fiscal year (July). Statewide, this amounts to $200 million dollars; for Cabrillo College this
roughly equates to a $2 million dollar reduction in cash received at the end of the fiscal year. Subsequent
years have seen a dramatic increase in cash deferrals:
2008-09
2009-10
2010-11
$3.4 Million deferred from January-April monthly allocations, to 2009-10.
$7.5 Million deferral from January-June monthly allocations, to 2010-11.
Approximately $1.5 Million in additional deferrals to 2011-12
The college relies primarily on monthly state apportionment payments to meet monthly expenditure
commitments such as payroll and general operating. The District has developed the attached cash flow
projection tools to aid in planning day to day cash management. Cash flow projections are updated based
on the latest state budget information. These reports track projected and actual cash activities, and balances
and identifies significant variances. The Quarterly Cash Flow Statement shows projected and actual cash
in and cash out. Variances between projected and actual cash flows are identified and explained on the
report as well as assumptions used to develop the projections.
The volatility of the state budget continues to make cash management a challenge for the District.
Cash flow updates will be provided to the Governing Board on a quarterly basis. The Projected Cash
Balance worksheet will include a rolling 12 month period.
Administrator Initiating Item:
Roy Pirchio
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 No
Final Disposition
Cabrillo College 2010-11 Cashflow Statement
January
Projected
Actual
February
Actual minus
Projection
Actual
Projected
March
Actual minus
Projection
Projected
Actual
Actual minus
Projection
Cashflow In
Apportionment
Other/Xfers
1,707,263.00
1,259,747.92
1,707,263.00
1,866,701.49
606,953.57
1,460,714.30
3,211,951.91
2,182,991.00
4,364,432.58
722,276.70
1,152,480.67
1,350,576.00
1,156,527.65
1,350,576.00
3,092,525.64
1,935,997.99
2,967,010.92
3,573,964.49
606,953.57
4,672,666.21
6,547,423.58
1,874,757.37
2,507,103.65
4,443,101.64
1,935,997.99
Payroll
Accts Payable
Other/Xfers
(4,948,576.00)
(2,222,462.00)
(200,000.00)
(4,977,005.00)
(2,441,274.75)
(206,507.00)
(28,429.00)
(218,812.75)
(6,507.00)
(4,343,120.18)
(4,146,319.00)
85,000.00
(4,035,395.46)
(5,156,058.07)
85,306.00
307,724.72
(1,009,739.07)
306.00
(4,611,720.37)
(2,965,194.03)
33,342.36
(4,907,956.36)
(6,902,342.00)
(328,777.58)
(296,235.99)
(3,937,147.97)
(362,119.94)
Total Cash Out
(7,371,038.00)
(7,624,786.75)
(253,748.75)
(8,404,439.18)
(9,106,147.53)
(701,708.35)
(7,543,572.04)
(12,139,075.94)
(4,595,503.90)
Surplus/(Deficit)
(4,404,027.08)
(4,050,822.26)
353,204.82
(3,731,772.97)
(2,558,723.95)
(5,036,468.39)
(7,695,974.30)
(2,659,505.91)
Total Cash In
Cashflow Out
Variance Reconciliation
1,173,049.02
Assumptions
January
Cash In:
Cash Out:
Mandated Cost Reimb
Prop Tx Higher than Anticipated
Student Loans Higher than
Anticipated
429,695.00
42,000.00
200,000.00
February
Cash In:
Cash Out:
Prior Yr Apportionment Adjust
Prop Tx Higher Lower Anticipated
Financial Aid Higher Than
Anticipated
Feb STRS Paid in March
Financial Aid Higher Than
Anticipated
700,000.00
(50,000.00)
1,000,000.00
(321,000.00)
1,000,000.00
March
Cash In:
Property Tax Revenue Higher
than Anticipated
Financial Aid Higher Than
Anticipated
Cash Out:
Feb STRS paid in March
Financial Aid Disbrused End
of Month, Reimbursed Beg
of April
19,000.00
1,800,000.00
321,000.00
3,400,000.00
*
Quarterly Statement will be issued on a rolling quarter basis
*
Projected Apportionment includes deferrals of $9,699,713
*
Assumes no deferrals in categorical programs
*
Cash In and Cash Out Projections include all Financial Aid Activity
Cabrillo College 2010-11 Projected Cash Balance
July
Beginning Cash Balance
Cashflow In:
Projected
Actual
TRAN Borrowing
Internal Borrowing
Variance (Actual-Projection)
Cashflow Out
Projected
Actual
TRAN Repayment
Variance (Actual-Projection)
Projected Ending Cash Balance
Actual Ending Cash Balance
August
September
9,224,786.00
9,407,066.00
1,177,825.00
1,524,229.00
*
November
December
January
February
March
April
May
June
3,535,943.00
3,914,154.76
19,070,165.15
16,573,177.76
5,189,414.62
7,791,556.79
11,412,919.88
15,335,030.72
2,967,010.92
3,573,964.49
4,672,666.21
6,547,423.58
2,507,103.65
4,443,101.64
16,293,094.22
5,041,361.99
2,397,803.63
(11,848,046.58)
(6,885,759.35)
(5,771,437.79)
5,000,000.00
182,280.00
(4,727,600.00)
(4,564,652.00)
162,948.00
346,404.00
378,211.76
(2,496,987.39)
2,602,142.17
3,922,110.84
606,953.57
1,874,757.37
1,935,997.99
(6,645,919.00)
(6,693,842.00)
(5,713,585.00)
(7,748,691.00)
(8,785,852.44)
(9,928,688.44)
(6,053,464.82)
(6,584,788.16)
(4,727,510.42)
(6,515,521.81)
(7,371,038.00)
(7,624,786.75)
(8,404,439.18)
(9,106,147.53)
(7,543,572.04)
(12,139,075.94)
(47,923.00)
(2,035,106.00)
(1,142,836.00)
(531,323.34)
(1,788,011.39)
(253,748.75)
(701,708.35)
(4,595,503.90)
9,223,011.94
3,754,917.94
1,577,275.94
11,861,588.65
10,997,538.45
17,682,947.91
13,278,920.83
9,547,147.86
4,510,679.47
13,955,727.11
12,111,329.76
8,737,695.59
11,220,423.50
6,050,810.50
2,216,274.26
8,860,763.58
10,067,532.21
18,887,041.12
14,836,218.86
12,277,494.91
4,581,520.61
4,581,520.61
4,581,520.61
4,581,520.61
Assumptions:
*
October
6,378,009.50
Apportionment and deferrals based on 2010-11 Chancellor's Office Schedule
and includes addition of proposed deferral of $1.29 million dollars, for a total of
$9,699,713
Assumes no deferrals in categorical programs