AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
August 1, 2011
SUBJECT:
2010-11 Cash Flow Update – Fourth Quarter
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 3
E.5
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.
The Cash Balance Projection includes approximately $5 million dollars borrowed from the TRAN, 85%
will be repaid by August 15, 2011 and the remaining 15% will be repaid by November 15, 2011.
Administrator Initiating Item:
Roy Pirchio
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
Yes  No
Yes
No
Final Disposition
Cabrillo College 2010-11 Cashflow Statement
April
Projected
Actual
May
Actual minus
Projection
Projected
Actual
June
Actual minus
Projection
Projected
Actual
Actual minus
Projection
Cashflow In
Apportionment
Other/Xfers
1,502,446.00
14,790,648.22
1,502,446.00
13,640,565.64
(1,150,082.58)
3,047,819.00
7,010,941.66
3,047,819.00
7,083,984.28
73,042.62
854,996.30
2,800,807.33
1,637,162.00
2,923,978.21
782,165.70
123,170.88
16,293,094.22
15,143,011.64
(1,150,082.58)
10,058,760.66
10,131,803.28
73,042.62
3,655,803.63
4,561,140.21
905,336.58
Payroll
Accts Payable
Other/Xfers
4,647,746.59
5,869,300.00
4,547,977.33
2,468,129.38
290,412.40
(99,769.26)
(3,401,170.62)
290,412.40
4,591,010.35
2,294,749.00
1,431,000.00
4,532,187.38
2,616,287.15
1,377,893.99
(58,822.97)
321,538.15
(53,106.01)
2,203,770.21
2,965,238.00
2,417,498.50
2,127,522.14
213,728.29
(837,715.86)
-
Total Cash Out
10,517,046.59
7,306,519.11
(3,210,527.48)
8,316,759.35
8,526,368.52
209,609.17
5,169,008.21
4,545,020.64
(623,987.57)
5,776,047.63
7,836,492.53
2,060,444.90
1,742,001.31
1,605,434.76
(136,566.55)
(1,513,204.58)
Total Cash In
Cashflow Out
Surplus/(Deficit)
Variance Reconciliation
16,119.57
Assumptions
April
Cash In:
Cash Out:
Financial Aid Disbursement
Projected in April, split between
March & April
1,200,000.00
Main Financial Aid Disbursement
Projected in April, occurred in Mar
3,400,000.00
May
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
*
Cash In:
Cash Out:
*
NCCCP paid in May, Projected
in July
268,272.00
Cash In:
Unexpected Career Tech, not on P1
690,000.00
Cash Out:
A/P Projection based on PY actuals
which included CTE, EOPS/CARE
disbursements not repeated in CY
377,000.00
June
PY Softdocs disbursment
80,000.00
Cashflow In for May includes approx. $5 million dollars from TRAN,
85% to be repaid by August 15, 2011 and the remaining 15% to
be repaid by November 15, 2011.
1,529,324.15
Cabrillo College 2010-11 Projected Cash Balance
July
Beginning Cash Balance
Cashflow In:
Projected
Actual
TRAN Borrowing
Internal Borrowing
Variance (Actual-Projection)
August
September
October
Actual Ending Cash Balance
December
January
February
9,224,786.00
9,407,065.00
1,177,825.00
1,524,230.67
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
6,550,239.54
182,279.00
346,405.67
378,211.76
(2,496,987.39)
2,602,142.17
3,922,110.84
606,953.57
1,877,573.33
(8,785,852.44)
(9,928,688.44)
(6,053,464.82)
(6,530,198.99)
(4,727,510.42)
(6,515,521.81)
(7,371,038.00)
(7,624,787.33)
(1,142,836.00)
(476,734.17)
(1,788,011.39)
(253,749.33)
March
April
May
June
2,507,103.65
4,443,101.64
16,293,094.22
15,143,011.64
10,058,760.66
5,114,404.61
5,017,398.67
3,655,803.63
4,561,140.21
1,935,997.99
(1,150,082.58)
73,042.62
905,336.58
6,378,009.50
Cashflow Out
Projected
(4,727,600.00) (6,645,919.00) (5,713,585.00)
Actual
(4,564,652.40) (6,693,842.11) (7,748,691.64)
TRAN Repayment
Variance (Actual-Projection)
162,947.60
(47,923.11) (2,035,106.64)
Projected Ending Cash Balance
November
(8,404,439.18) (7,543,572.04) (10,517,046.59)
(9,106,156.31) (12,105,733.08) (7,306,519.11)
(701,717.13)
(4,562,161.04)
3,210,527.48
(8,316,759.00)
(8,526,368.52)
(209,609.52)
(5,169,008.00)
(4,545,020.64)
623,987.36
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
10,286,727.10
12,028,728.76
10,515,524.39
11,220,422.10
6,050,810.66
2,216,273.78
8,860,763.10
10,122,120.90
18,941,629.81
14,890,806.97
12,334,890.20
4,672,258.76
12,508,751.29
14,114,186.05
14,130,305.62
Assumptions:
Total Projected to Actual Cash Variance:
*
*
*
*
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
Projection based on 10-11 Final Budget
Assumes no deferrals in categorical programs
May revenues include money borrowed from the TRAN,
85% to be repaid by August 15, 2011 and the remaining 15% to be repaid
by November 15, 2011.
Prop Txs Higher than Anticipated
Lottery Higher than Anticipated
Cert Salaries < budget
Classified Salaries < budget
Benefits < budget
PY CTE not included in Proj
3,614,781.23
795,491.00
132,701.00
767,618.00
1,005,496.00
296,710.00
530,000.00
3,528,016.00