EARLY LEARNING COALITION OF SARASOTA COUNTY
BUDGET AND FINANCE COMMITTEE MEETING
Cavanaugh & Company, LLP, Conference Room, 2381 Fruitville Road, Sarasota
28 January 2011
MINUTES
1. ATTENDANCE.
a. Members:
Janet Kahn
Steve Spangler
Linda Mason
b. Staff:
James Pawlak
2. CALL TO ORDER. The meeting was called to order at 8:00 a.m.
3. OLD BUSINESS. None
4. NEW BUSINESS.
a. FY2011 CCC/Business Manager Reports.
1. SR Enrollment & Provider Payments – In December, our SR slot payment was $348,300
with 1,014 children served. James stated we continue to see record monthly payouts in
our BG1 and BG3 slots. With our current projected SR deficit, we will not be able to accept
any additional BG8 (working poor) children for the remainder of FY2011.
2. News’s and Terms – In December, net “Terms” were three. James is forecasting that we
need to see a Net “Term” number of 25 to 30 per month for the remaining six months to
help us slowly reduce our current projected SR deficit.
3. BG1 SR Enrollment & Provider Payments – December BG1 costs decreased to $65k
from $71k in November. However, James stated we are now projected to spend $713k in
FY2011 BG1 costs this year, which is slightly above the overall budget amount of $700k.
4. BG3 SR Enrollment & Provider Payments – Our BG3 costs for December came in at
$55,912.00. James commented that during the first three months of this fiscal year, we
were averaging $43k a month in BG3 costs. The last three months we saw the payout jump
to $55k a month – a 22% increase in the monthly payout. James also added no one could
have foresee or budget for such a substantial increase in outlays.
Per request at our previous meeting, a BG3 cost analysis was presented to the committee
for discussion. James remarked that part of the reason for the increase of cost may be that
we are serving a higher percentage of Infant and Toddler children than in previous months.
He also added that when children are added or dropped during the month it does have an
effect on the total monthly payout of costs. For example - we could term five or six children
during the last week of a month which would show in our monthly headcount being reduced,
but our costs would only drop maybe $1000 or $1500. Janet thanked James for the
analysis but she still voiced concern and also requested that James increase his BG3
projections to a “worst case scenario” for the remainder of the Fiscal Year since the number
of mandated referrals are not slowing down. James replied he would raise the monthly
payout projection to $55,000 from $50,000 for the remaining six months.
5. SR Days Paid & Per Day “OEL” Cost – December - OEL Cost per Child per Day came in
at $18.43 – which is slightly higher than our year to date average cost of $18.18.
6. Board Financial Indicators – As of December, we are currently overall $9.6k over budget
in our Admin and Non-Direct costs, which we will track and ensure that we are in line with
annual budget. The next three indicators covered b were (Quality, Gold Seal and Infant &
Toddler). The Quality indictor is $50k under budget – James commented to the committee
that our Provider Mini-grant materials have been ordered, which involves a substantial
amount of Quality dollars being utilized – so this surplus will be reduced over the next two
months. The next two indictors - Gold Seal and Infant Toddler are in line with
expectations. CCR&R was discussed next – James stated our total projected dollar
amount for the year is $92,156 – which is $9,844 dollars below the minimum amount of
$101,616. Linda stated to Janet she has reviewed with staff what work situations/tasks
should be coded under QI4. The next indictor discussed was SR Child care slots, James
reported that we are currently at 74.7% of total expenditures spent (this % is over the
minimum required by AWI - 70%). James stated the that this percentage will trend lower
over the remainder of FY2011 as overall total expenditures rise and our SR monthly slot
payments will fall below $300k a month – however he added that we will still be
comfortably over the 70% figure by Fiscal year end.
The last two indictors reviewed were our VPK and VPK ARRA slots. Our VPK admin
expenditures are 5.1% vs. the target of 4.5%. Janet voiced her concern that we cannot be
over the 4.5% Grant Earmark for this category. Janet stated should it come down to June
and we are not comfortably below the 4.5% threshold, we may have to wait until July to
continue enrolling VPK children for the fall session. For VPK-ARRA – we were allocated a
total of $928,402 for FY2011 – James reminded the committee that with the completion of
October reimbursement, all these dollars have now been fully utilized.
7. SR Spending Plan – James stated that because of the substantial increase in year over
year costs in BG3 (from $450k in FY2010 to a now forecasted $605k in FY2011) our
projected SR deficit has now risen to $298k. We will only be accepting mandated referrals
for the remaining five months.
8. VPK Spending Plan – James stated that we currently have a VPK surplus of $138k – he
also added that it does not look like AWI will come back and reduce our grant amount – so
we should be in good shape to finish out FY2011 with a VPK surplus.
b. Accountant Reports.
James reviewed the A/R aging summary report with the committee. The $54,017.26 dollars
under the (Sarasota County – 61-90 day category) representing the October Main County
Contract - $45,895.78 and PBS - $8,121.48 contracts. These dollars were received and
deposited on January 7th and 13th. The last item - $49,160.56 dollars under the (Sarasota
County – 31-60 day category) representing the November Main County Contract - $44,099.46
and PBS - $5,061.10 contracts. These dollars also were received and deposited on January
7th and 13th. There were no outstanding items on the A/P report.
The next report reviewed was the Budget vs Actual report. James informed the Board that as
of the halfway point through our fiscal year, our Coalitions salaries are $6.1k under budget,
CCC is $5.9k under and VPK is $12.2k over budget. Steve asked why under the Contracted
Support line “SCTI Provider Training” why we would show $0 expenses. Janet stated that this
contract just started in October – she then asked James to contact SCTI to request our
October thru December bill. James stated he would do so.
The last report covered was the Deferred Revenue report. James informed the committee that
two new grants have now been added to the report – The first one - “PNC Foundation” is in the
amount of $5,000.00 and the second one - “BOOST Community Foundation”” is for
$17,000.00. He also added the remaining $1,869.16 under the GCCFV Technology line has
been spent, it now shows a zero balance.
5. DISCUSSION.
Janet wanted it on the record that we have closed the Wachovia money market account.
Since the majority of our Private funds are with REGIONS bank, keeping the account open
started to cost us more money than the interest we were earning on the funds. So as of
January 11, 2011 – we now only have two Bank accounts – Wachovia’s Interest Bearing
Checking Account – which is our main operating account and REGIONS Money Market
Account – which holds our Private funds. James stated our “Line of Credit” with Wachovia
for $400,000.00 is in the process of being renewed. It should be approved at the February
Board of Directors meeting. The final item brought up was by Janet – she informed the
committee that our annual “Fiscal Audit” with KPMG was pushed back to the week of
May 2nd.
James stated our next Budget and Finance meeting is tentatively scheduled for Friday,
February 25, 2011 at 8:00 a.m.
6. ADJOURN. The meeting was adjourned at 8:26 am.
James Pawlak