156
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
May 6, 2013
SUBJECT:
2012-13 Cash Flow Update – 3rd Quarter
REASON FOR BOARD CONSIDERATION
INFORMATION
ENCLOSURE(S)
ITEM NUMBER
Page 1 of 3
H.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 dramatic changes in cash deferrals:
2008-09
2009-10
2010-11
2012-13
$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.
Approximately $1 million buy down of existing deferrals.
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 30, 2013. Additional
borrowing from a mid-year TRAN was done in March of 2013 for $8.8 million dollars, which will be
repaid in the 2013-14 fiscal year.
Administrator Initiating Item:
Roy Pirchio
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 No
Final Disposition
Cabrillo College 2012-13 Cashflow Statement
January
Projected
Actual
157
February
Actual minus
Projection
Projected
Actual
March
Actual minus
Projection
Projected
Actual
Actual minus
Projection
Cashflow In
509,374.00
1,638,149.00
509,374.00
2,321,470.00
683,321.00
834,484.00
3,797,491.00
834,484.00
4,243,637.00
446,146.00
2,772,826.00
411,262.00
3,356,476.02
411,262.00
583,650.02
2,147,523.00
2,830,844.00
683,321.00
4,631,975.00
5,078,121.00
446,146.00
2,772,826.00
3,767,738.02
994,912.02
Payroll
Accts Payable
Other/Xfers
3,664,472.00
2,735,206.00
3,673,784.44
2,645,454.96
9,312.44
(89,751.04)
-
3,989,095.00
5,703,216.00
3,968,647.10
5,800,228.98
(20,447.90)
97,012.98
-
3,798,867.00
3,484,455.00
3,782,866.15
3,416,133.48
(16,000.85)
(68,321.52)
-
Total Cash Out
6,399,678.00
6,319,239.40
(80,438.60)
9,692,311.00
9,768,876.08
76,565.08
7,283,322.00
7,198,999.63
(84,322.37)
(4,252,155.00)
(3,488,395.40)
602,882.40
(5,060,336.00)
(4,690,755.08)
369,580.92
(4,510,496.00)
(3,431,261.61)
Apportionment
Other/Xfers
Total Cash In
Cashflow Out
Surplus/(Deficit)
Variance Reconciliation
Assumptions
January
Cash In:
Unanticipated RDA Wind Down
Revenue
595,000.00
STEM Grant Drawdown
298,555.00
Controller's Office Error
Will Be Adjusted In April
411,262.00
STEM Grant Drawdown
466,785.00
Cash Out:
February
Cash In:
Cash Out:
March
Cash In:
Cash Out:
*
Cash In and Cash Out Projections include all Financial Aid Activity
1,079,234.39
158
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
2,147,523.00
2,830,844.00
4,631,975.00
5,078,121.00
2,772,826.00
3,767,738.02
8,825,504.00
882,866.43
1,039,799.88
414,307.53
837,601.43
331,994.48
683,321.00
446,146.00
994,912.02
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
6,399,678.00
6,319,239.40
3,815,000.00
(80,438.60)
9,692,311.00
9,768,876.08
7,283,322.00
7,198,999.63
160,439.64
(158,343.48)
487,363.24
(280,376.84)
76,565.08
10,029,670.20
3,250,142.41
11,531,042.76
6,791,431.00
6,664,424.91
3,634,889.60
2,086,774.32
9,982,927.47
3,815,000.00
(84,322.37)
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
6,823,145.61
1,762,809.61
6,077,817.61
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
9,122,165.73
4,431,410.65
9,825,653.04
5,501,056.81