AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
November 1,
2010
SUBJECT:
Cash Flow Update – 2010-11 First Quarter
ENCLOSURE(S)
REASON FOR BOARD CONSIDERATION
INFORMATION
ITEM NUMBER
Page 1 of 3
E.4
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 - $3.4 Million deferred from January-April monthly allocations, to 2009-10.
2009-10 - $7.5 Million deferral from January-June monthly allocations, to 2010-11.
2010-11 - $8.3 to 8.5 Million deferral from January-June monthly allocations, to 2011-12.
The college relies primarily on monthly state apportionment payments to meet monthly
expenditure commitments such as payroll and general operating. Cabrillo 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, 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 Cabrillo.
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
July
Projected
Actual
August
Actual minus
Projection
Projected
Actual
September
Actual minus
Projection
Projected
Actual
Actual minus
Projection
Cashflow In
Apportionment
Other/Xfers
7,148,639.00
2,076,147.00
7,148,639.00
2,258,427.00
182,280.00
1,177,825.00
1,524,229.00
346,404.00
3,535,943.00
3,914,154.76
378,211.76
9,224,786.00
9,407,066.00
182,280.00
1,177,825.00
1,524,229.00
346,404.00
3,535,943.00
3,914,154.76
378,211.76
Payroll
Accts Payable
Other/Xfers
(2,401,653.00)
(2,325,947.00)
(1,915,901.00)
(2,691,897.00)
43,146.00
485,752.00
(365,950.00)
43,146.00
(4,419,768.00)
(2,226,151.00)
(4,193,321.00)
(2,526,276.00)
25,755.00
226,447.00
(300,125.00)
25,755.00
(4,247,198.00)
(1,716,385.00)
(4,845,395.00)
(598,197.00)
(2,940,383.00) (1,223,998.00)
37,087.00
37,087.00
Total Cash Out
(4,727,600.00)
(4,564,652.00)
162,948.00
(6,645,919.00)
(6,693,842.00)
(47,923.00)
(5,963,583.00)
(7,748,691.00) (1,785,108.00)
4,497,186.00
4,842,414.00
345,228.00
(5,468,094.00)
(5,169,613.00)
298,481.00
(2,427,640.00)
(3,834,536.24) (1,406,896.24)
Total Cash In
Cashflow Out
Surplus/(Deficit)
Variance Reconciliation
Assumptions
July
*
Quarterly Statement will be issued on a rolling quarter basis
*
Projected Apportionment includes continuing $7.5 million dollar
deferral and new $1 million dollar deferral.
*
Assumes no deferrals in categorical programs
*
Cash In and Cash Out Projections include Financial Aid Activity
Cash In:
Cash Out:
Payroll Tx Deposit recorded in
August
330,000.00
August
Cash In:
Categorical Receivables
58,000.00
Financial Aid higher than
Anticipated
Foundation Faculty Grant
Human Care Alliance
VAPA Contribution
150,000.00
13,873.00
20,250.00
25,250.00
Aug STRS Payment made in Sept
376,694.00
Student Refunds & Fin Aid
900,000.00
Cash Out:
September
Cash In:
Cash Out:
Unanticipated Pymt for ACE
Consultants
98,883.00
Unanticipated Pymt to Clear
Due To/From for Auxiliary Acct
96,582.00
Cabrillo College 2010-11 Projected Cash Balance
July
Beg Bal:
Cashflow In:
Projected
Actual
County Borrowing
Internal Borrowing
Variance (Actual-Projection)
Cashflow Out
Projected
Actual
County Repayment
Variance (Actual-Projection)
August
September
October
November
December
January
15,717,367.48
4,981,003.09
11,327,462.18
2,810,978.46
(4,963,263.51)
(7,291,725.64)
15,301,298.48
10,820,551.30
February
March
April
May
June
3,856,538.16
2,582,802.73
6,378,009.50
9,224,786.00
9,407,067.20
1,177,825.00
1,524,229.47
3,535,943.00
3,914,154.76
182,281.20
346,404.47
378,211.76
(4,727,600.00)
(4,564,652.00)
(6,645,919.00) (5,963,583.00)
(6,693,842.00) (7,748,691.64)
162,948.00
(8,977,168.90) (5,763,563.35)
4,763,182.71
3,266,143.16
(7,540,614.75) (6,298,988.81)
12,402,663.10
(11,349,774.15) (6,167,986.79) (4,292,291.98)
(47,923.00) (1,785,108.64)
Projected Ending Cash Balance
10,875,195.50
5,407,101.50
2,979,461.50
Actual Ending Cash Balance
11,220,424.70
6,050,812.17
2,216,275.29
9,719,660.08
8,937,099.81
Assumptions:
*
Apportionment based on 2010-11 Final Budget, includes Cabrillo's portion of the system wide $703 million dollar deferral
and adds an additional $1 million in new deferrals, for a total of $8.5 million.
*
Assumes no deferrals in categorical programs
8,043,119.27
5,010,273.62
6,063,162.57
3,751,713.94
2,042,224.69