91
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
SUBJECT:
November 7, 2011
2011-12 Cash Flow Update – First Quarter
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 3
D.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.
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
 No
Final Disposition
92
Cabrillo College 2011-12 Projected Cash Balance
July
Beginning Cash Balance
September
October
November
December
January
February
March
April
May
13,535,339.53
4,100,072.67
June
14,130,344.13
Cashflow In:
Projected
11,012,682.83
Actual
10,634,144.83
TRAN Borrowing
Internal Borrowing
Variance (Actual-Projection)
(378,538.00)
Cashflow Out
Projected
Actual
TRAN Repayment
Variance (Actual-Projection)
August
(4,245,316.26)
(4,971,121.99)
4,021,675.58
4,689,518.49
7,470,620.61
9,007,012.56
667,842.91
1,536,391.95
(6,181,541.22)
(7,522,591.95)
(4,334,055.56)
(1,341,050.73)
(7,170,855.03)
(8,212,923.54)
Projected Ending Cash Balance 20,897,710.70
14,403,789.50
14,703,555.08
Actual Ending Cash Balance
12,626,237.95
13,420,326.97
(725,805.73)
19,793,366.97
6,822,429.53
6,520,007.60
14,319,063.10
2,579,451.90
4,636,521.78
3,091,119.22
2,926,938.60
(8,835,282.54)
(6,825,077.66)
(6,247,432.54)
(6,913,249.83)
(8,341,123.08) (10,723,699.18)
(8,016,501.48) (6,632,899.75) (4,211,018.27)
12,690,702.07
12,385,632.01
20,457,262.57
16,123,464.63
12,418,863.33
10,305,121.41
(1,042,068.51)
4,786,283.37
7,772,294.33
6,488,214.65
Cabrillo College 2011-12 Cashflow Statement
July
Projected
Actual
93
August
Actual minus
Projection
Projected
Actual
September
Actual minus
Projection
Projected
Actual
Actual minus
Projection
Cashflow In
9,079,843.36
1,932,839.47
9,263,932.00
1,370,212.83
184,088.64
(562,626.64)
2,719,241.00
1,302,434.58
2,719,241.00
1,970,277.49
667,842.91
4,078,865.00
3,391,755.61
4,080,265.00
4,926,747.56
1,400.00
1,534,991.95
11,012,682.83
10,634,144.83
(378,538.00)
4,021,675.58
4,689,518.49
667,842.91
7,470,620.61
9,007,012.56
1,536,391.95
Payroll
Accts Payable
Other/Xfers
2,001,970.00
2,243,346.26
2,064,600.62
2,906,521.37
62,630.62
663,175.11
-
4,076,218.98
2,105,322.24
3,766,394.81
3,756,197.14
(309,824.17)
1,650,874.90
-
4,720,428.02
2,450,427.01
4,699,431.71
3,513,491.83
(20,996.31)
1,063,064.82
-
Total Cash Out
4,245,316.26
4,971,121.99
725,805.73
6,181,541.22
7,522,591.95
1,341,050.73
7,170,855.03
8,212,923.54
1,042,068.51
Surplus/(Deficit)
6,767,366.57
5,663,022.84
(2,159,865.64)
(2,833,073.46)
299,765.58
794,089.02
494,323.44
Apportionment
Other/Xfers
Total Cash In
Cashflow Out
(1,104,343.73)
Variance Reconciliation
(673,207.82)
Assumptions
July
Cash In:
Cash Out:
AMS.Net
NCCCP
314,844.88
357,520.00
August
Cash In:
VTEA
203,069.00
Cash Out:
STRS Paid in Sept
Fin Aid Disbursement end of month
372,274.00
1,500,000.00
Cash In:
August Fin Aid Reimb
1,500,000.00
Cash Out:
Fin Aid higher than expected
Cabrillo College Foundation
Aptos La Selva Fire Prot
September
800,000.00
35,000.00
83,185.84
*
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