133
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 11, 2013
SUBJECT:
2012-13 Cash Flow Update – 2nd Quarter
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 3
D.10
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 $7.5 million dollars borrowed from the TRAN, 50%
was repaid before January 15, 2013 and the remaining 50% will be repaid by April 15, 2013. Additional
borrowing from a mid-year TRAN in March of 2013 will be necessary, the final dollar amount to be
determined.
Administrator Initiating Item:
Roy Pirchio
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 No
Final Disposition
134
Cabrillo College 2012-13 Cashflow Statement
October
Projected
Actual
November
Actual minus
Projection
Projected
Actual
December
Actual minus
Projection
Projected
Actual
Actual minus
Projection
Cashflow In
2,500,932.00
1,945,512.00
2,500,932.00
2,359,819.53
414,307.53
1,943,862.00
4,895,082.00
1,943,862.00
5,732,683.43
837,601.43
4,163,126.00
11,218,261.00
4,163,126.00
11,550,255.48
331,994.48
4,446,444.00
4,860,751.53
414,307.53
6,838,944.00
7,676,545.43
837,601.43
15,381,387.00
15,713,381.48
331,994.48
Payroll
Accts Payable
Other/Xfers
4,212,892.53
5,920,191.00
1,514,000.00
3,724,811.45
6,249,928.60
1,514,000.00
(488,081.08)
329,737.60
-
4,067,211.00
3,108,000.00
4,443,504.12
3,219,070.12
376,293.12
111,070.12
-
4,367,368.00
2,253,361.00
4,409,080.50
1,931,271.66
41,712.50
(322,089.34)
-
Total Cash Out
11,647,083.53
11,488,740.05
(158,343.48)
7,175,211.00
7,662,574.24
487,363.24
6,620,729.00
6,340,352.16
(280,376.84)
Surplus/(Deficit)
(7,200,639.53)
(6,627,988.52)
255,964.05
13,971.19
350,238.19
8,760,658.00
9,373,029.32
612,371.32
Apportionment
Other/Xfers
Total Cash In
Cashflow Out
Variance Reconciliation
(336,267.00)
Assumptions
October
Cash In:
*
Receivable Receipts
Lottery Higher than Anticipated
Cash Out:
NCCCP payment made in
October, paid in December
prior year.
Oct STRS paid in Nov
157,162.00
43,210.00
217,000.00
(360,000.00)
November
Cash In:
Mandatory Cost Receipt
STEM Grant Draw Down
NSF Grant Draw Down
299,135.00
414,483.00
126,794.00
Cash Out:
Oct STRS paid in Nov
360,000.00
December
Cash In:
Cash Out:
NCCCP payment made in
October, paid in December
prior year.
(217,000.00)
Cash In and Cash Out Projections include all Financial Aid Activity
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Cabrillo College 2012-13 Projected Cash Balance
July
Beginning Cash Balance
September
October
November
December
January
February
March
April
May
June
6,933,116.00
Cashflow In:
Projected
9,953,850.29
Actual
10,755,041.80
TRAN Borrowing
Internal Borrowing
Variance (Actual-Projection)
801,191.51
Cashflow Out
Projected
Actual
TRAN Repayment
Variance (Actual-Projection)
August
4,516,533.03
4,220,201.67
(296,331.36)
4,359,796.53
5,242,662.96
7,574,097.62
5,998,380.69
7,038,180.57
4,446,444.00
4,860,751.53
6,838,944.00
7,676,545.43
15,381,387.00
15,713,381.48
882,866.43
1,039,799.88
414,307.53
837,601.43
331,994.48
7,507,608.81
7,972,694.42
4,036,166.67
465,085.61
7,487,047.41
7,647,487.05
11,647,083.53
11,488,740.05
7,175,211.00
7,662,574.24
6,620,729.00
6,340,352.16
160,439.64
(158,343.48)
487,363.24
2,421,701.43
4,691,524.05
5,730,185.62
10,029,670.20
3,250,142.41
11,531,042.76
6,791,431.00
6,664,424.91
3,634,889.60
5,483,345.44
13,379,498.59
10,105,000.00
5,513,292.00
8,380,927.11
10,655,103.87
3,815,000.00
3,815,000.00
(280,376.84)
Projected Ending Cash Balance
12,370,433.26
12,760,551.93
11,271,885.21
6,465,909.61
6,129,642.61
14,890,300.61
Actual Ending Cash Balance
13,467,956.13
14,275,855.62
13,666,549.14
7,038,560.62
7,052,531.81
16,425,561.13
7,983,710.04
4,294,306.98
9,474,388.73
8,897,627.94