Transcript Antelope Valley Community College

Antelope Valley Community
College
CONFIDENTIAL, MANAGEMENT &
SUPERVISORY (CMS) GROUP BRIEFING:
BUSINESS SERVICES OVERVIEW
DIANA KEELEN
OCTOBER 28, 2009
Agenda
 What does the Business Services Office do?
 Who does what in Business Services Office?
 Business Services Office Strengths, Weaknesses, Opportunities &
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Threats (SWOT) Analysis
Budget at the State Level
Impact to California Community Colleges
Impact to AVC
What are other colleges doing?
AVC 08-09 Actuals Recap
AVC 09-10 Budget Overview
What managers can do during these tough budget times
New processes in progress:
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New Budget Augmentation Form
New Duplication Services
New Travel Request Form
 Questions?
What does business services do?
 We manage five major business services areas: Budgeting & Accounting,
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Purchasing, Warehousing, Mailroom & Duplication and are comprised of a staff of
20 people:
One Director
One Accounting & Budget Supervisor: Vacant
One Buyer
Two Accountants
One Accounting Assistant III
Three Accounting Assistant IIs
One Cashier
One Warehouse Coordinator
One Warehouse Assistant
One Student Accounts Technician: Vacant
Two Mailroom Duplication Technicians
One Clerical Assistant III
Two Student Workers
Two Hourly Workers
Who does what in Business Services?
 Budget Planning & Programming/Audit POC/Cashflow
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Analysis/PeopleSoft Security Administrator/Business Policies &
Procedures/Business Services Liaison/Monthly Board Financials
Reporting: Diana Keelen, Director of Business Services
Reconciliations/District Training/Staff Training/Budget Monitoring/Daily
Taxes/Quarterly Tax Returns/Annual Tax Returns: Vacant, Accounting &
Budgeting Supervisor
Capital Outlay Accounting: Chris Garcia, Accountant
Categorical Accounting: Kim Carlson, Accountant
Purchasing/Vendor Negotiations/Travel Arrangements: Crystal Mohair,
Buyer
Accounts Payable (A-J): Lisa Jehlicka, Accounting Assistant II
Accounts Payable (K-Z): Mary Crenshaw, Accounting Assistant II
Accounts Receivable/Auxiliary Accounting/Bank Account
Reconciliations/HigherOne/1099 POC: Cathy Smith, Accounting Assistant
III
Who does what in Business Services? Continued
 Accounts Receivable/Cashiering/Disbursement & Refunds List
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Reconciliation: Lisa Diaz, Accounting Assistant II
Accounts Receivable/Cashiering/Alternate Disbursement & Refund
List Reconciliation: Sheri Lajoie, Cashier
Student Accounts/1098T POC/Accounts Receivable/Alternate
Cashiering: Vacant, Student Accounts Technician
Alternate Purchasing & Travel Arrangements/District Financial
Reports Distribution/Clerical Support: Denise Anderson, Clerical
Assistant III
Mailroom Services, Teri Johnson, Mailroom/Duplication
Technician
Duplicating Services, Susan Weitz, Mailroom/Duplication
Technician
Warehousing/Inventory/Auction/Document Disposal/Shipping &
Receiving: Stan Moore, Warehouse Coordinator
Warehousing/Inventory/Shipping & Receiving/Warehouse Charge
backs: Teresa Ortiz/Warehouse Assistant
Strengths
 Customer Service
 We develop budgets and manage 12 funds that
consist of federal, state and local funding totaling
about $100 mil budget for 2009-2010.
 In 08-09, we had about 50 active restricted
programs
 We process 4,000 purchase orders a year, thousands
vendor invoices, hundreds of travel requests and
hundreds of reimbursement requests.
Weaknesses
 Our financial systems not integrated: Banner,
PeopleSoft, RAD, SACS, Labor, LLL and HRS.
 Manual processes: Our systems do not talk to each
other meaning turning data into useful information
is extensively manual and time consuming
 Lack of Budget Projection Software: Manual
 Lack of Position Control: We also do not have
position control making budget estimation difficult
and understanding who is doing what
Opportunities
 Integrated Systems
 Position control available
 Automation of manual processes and forms for
efficiency and to reduce redundancy
Threats
 Mid-year cuts
 Continued budget cuts in the out years: the financial
community is projecting deeper cuts into the 20102011 fiscal year
 Cuts to the base allocation
 Deeper cuts to student support programs
 The growing deferral figure now expected to be a
continued part of budgeting
Budget Cuts at the State Level
 Feb 2009: $36 bil in cuts adopted
 July 2009: An additional $24 bil in cuts and
borrowing adopted, which includes:
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$16 bil in cuts
$8 bil in borrowing
 October 2009: State deficit now over $1.1 bil over
July 2009 estimates
Impact to California Community Colleges
 08-09: $84 mil in cuts
 09-10: Over $750 mil in cuts
$120 mil general unrestricted funds
 Approximately $53 mil in property tax shortfall
 Over $20 mil in Student fees shortfall
 $333 mil in Categorical Cuts-Some as much as 40%
 $40 mil in additional shortfalls
 No growth
 No COLA
 Deferrals now projected to be permanent part of the budget:
 Cash flow is the lifeblood of any organization. California Community
Colleges are faced with close to a $1 bil in deferrals this fiscal year and
counting.
 ARRA funds (One-time funding) was $130 mil, then $37 mil, now $35 mil
 Increase in Student Fees from $20 to $26 per credit unit
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Impact to Antelope Valley College
 Roughly 9% general fund budget cut or nearly $5 mil
 Deferrals over $10 mil in apportionment
 Additional Expenses: Deferrals equal borrowing,
which equals interest expense
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Borrowing limited and heavily scrutinized from lenders
 Borrowing
from other funds
 Borrowing from the Treasury
 Borrowing from TRANs
 Pursuing Line of Credit
 ARRA funds are approximately
$345K to AVC
DSS
132,055
EOPS
63,522
Calworks
78,446
Matriculation
36,034
Nursing
34,939
Total Allocation
344,996
What are other colleges doing?
 Survey went around to other colleges asking the
following:
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How many Districts have implemented furloughs or layoffs for
the 2009-10 fiscal year due to the current budget crisis?
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How many Districts are supporting categorical programs at the
level of anticipated ARRA funds even though the funds received
have been identified as unrestricted general purpose?
What are other colleges doing? - Results
 22 Colleges Responded
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How many Districts have implemented furloughs or layoffs for
the 2009-10 fiscal year due to the current budget crisis?
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19 responded with no layoffs or furloughs for 2009-2010 year (including AVC);
1 planning layoffs effective in 2010-2011 fiscal year
2 college negotiated furloughs for 2009-2010 year; 1 planning layoffs effective
in 2010-2011 year
1 college responded that they laid off 6 positions
How many Districts are supporting categorical programs at the
level of anticipated ARRA funds even though the funds received
have been identified as unrestricted general purpose?
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19 responded that funds will be used to backfill categoricals (including AVC)
3 colleges didn’t respond to the question or didn’t know yet
AVC 08-09 Actuals Recap
2008-2009 Actuals
Fund
Name
Beginning
Balance
Revenue
Expenditures
Ending
Balance
%
Reserve
General Fund
01.0
Unrestricted
3,680,514
60,316,788
59,104,911
4,892,391
8.28%
01.3
Restricted
806,446
7,942,956
7,947,942
801,460
10.08%
44.0 & 48.0
Scheduled Maintenance
2,116,396
3,988,027
3,292,703
2,811,720
41.0
Measure R Bond Fund
116,631,174
2,700,000
36,922,594
82,408,580
43.0
Palmdale Redevelopment
80,102
737,635
608,795
208,942
51.0
Bookstore
1,861,909
1,318,700
1,401,515
1,779,094
52.0
Cafeteria
-51,504
528,877
396,547
80,826
33.0
Child Development Center
74.1 & 74.2
6,344
770,507
776,852
0
Financial Aid
-131,895
30,302,680
30,229,709
-58,924
72
Student Rep
251,837
11,053
53,051
209,839
74
Other Trust Funds
324,093
214,481
209,514
329,060
125,575,416
108,831,704
140,944,132
93,462,988
Antelope Valley College Budget
09-10 Budget Outlook Before Planning
General Fund Unrestricted Budget before Planning
2009-2010 Budget
Outlook
Beginning Fund Balance
4,892,391
Estimated Revenues
56,872,328
Grand Total Revenues Plus Beginning Fund Balance
61,764,719
Estimated Expenditures
61,181,183
Ending Fund Balance
583,536
Surplus/Deficit
(4,892,391)
Reserve
0.95%
09-10 Budget After Planning
Implemented Budget Reductions
Major Object
Title
Amount
Reduction cut in sections, extra hrs, stipends
1300 & 1400
Adjunct
1,899,004
25% Reduction in Hourlys
23XX
Hourlys
368,421
Travel
5XXX
Other Spt Svs
50,000
Software frozen
44XX
Supplies
29,157
Reduction in supplies: 90% of 08-09 expenditures
4XXX
Supplies
128,704
No Growth
1XXX & 2XXX
Salaries
405,313
Reduction in other outgo-CDC Support
7XXX
Out-go
43,018
Total
Mitigated
2,923,617
General Fund Unrestricted Budget after Planning
2009-2010 Adopted
Budget
Beginning Fund Balance
4,892,391
Estimated Revenues
56,872,328
Grand Total Revenues Plus Beginning Fund Balance
61,764,719
Estimated Expenditures
58,257,566
Ending Fund Balance
3,507,153
Surplus/Deficit
Reserve
(1,385,238)
6.02%
AVC 09-10 Budget
2009-2010 Adopted Budget
Fund
Name
Beginning
Balance
Revenue
Expenditures
Ending
Balance
%
Reserve
General Fund
01.0
Unrestricted
4,892,391
56,872,328
58,257,566
3,507,153
6.02%
01.3
Restricted
801,460
7,474,283
7,755,500
520,243
6.71%
44.0 & 48.0
Scheduled Maintenance
2,811,720
1,050,026
984,251
2,877,495
41.0
Measure R Bond Fund
82,408,580
2,500,000
25,762,827
59,145,753
43.0
Palmdale Redevelopment
208,942
731,791
914,365
26,367
51.0
Bookstore
1,779,094
1,178,600
1,130,481
1,827,213
52.0
Cafeteria
80,826
355,000
388,169
47,657
33.0
Child Development Center
0
736,806
736,805
0
74.1 & 74.2
Financial Aid
-58,924
38,781,160
38,722,236
0
72
Student Rep
209,839
49,015
53,053
205,802
74
Other Trust Funds
329,060
215,000
215,000
329,060
93,462,988
109,944,008
134,920,253
68,486,743
Antelope Valley College Budget
AVC 09- 10 Budget Overview-Unrestricted
 No growth
 No COLA
 $1 mil contingency reserve for mid-year cuts
 $770K SCE “rebill” still being negotiated
 10% cut to services and supplies
 22% cut to travel
 10% increase to H&W (District absorbed)
 $353K in election costs
 $50K additional in attorney fees
 $1.9 mil reduction in sections
 Elimination of 3 Dean Positions
 25% cut to hourlys
Make up of Revenue
Local
15%
Federal
4%
State
81%
Make up of Expenditures
Capital Expenditures
0%
Other Operating
Costs
10%
Supplies
4%
Other Outgo
1%
Academic Salaries
47%
Employee Benefits
18%
Classified Salaries
20%
AVC Budget Overview-Out years
 Continued deficit spending reduces reserve
 Required to have a 5% unrestricted reserve
 08-09 ended at 8.28%
 09-10 estimate at 6.02%
 10-11 outlook could be below 5% reserve if expenses continue to go up
and revenues remain the same
What managers can do in these tough budget times?
 Just-in-time supplies. Do not allow “stocking up”
 Consolidate requirements
 Use warehouse inventory-we benefit from ordering
in larger quantities and realize savings through price
breaks
 Utilities: Turn off electronics at night. Turn off lights
in rooms unused
 Submit recommendations to the Business Office or
to Administration on how to save on expenditures
New processes in work
 New Budget Augmentation Form
 Electronic as opposed to manual in work
 New Duplication Services
 Large print jobs now available in mailroom. Process in
work
 New Travel Request Form
 Certification statement of insurance on autos
Questions?
 Questions?