APPROVED
GAVILAN JOINT COMMUNITY COLLEGE DISTRICT
Board Budget Subcommittee Minutes
August 10, 2010
| Committee Members: | Mike Davenport and Mark Dover | |
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| Committee Resources: | Steve Kinsella, Joseph Keeler, and Susan Cheu | |
| 1) | Call Meeting to Order: | Trustee Davenport called the meeting to order at 5:10 p.m. |
| 2) | Approve Minutes: | The minutes from April 28, 2010 were approved unanimously; MS (Dover/Davenport). |
| 3) | Comments from the Public: | No comments from the public. |
| 4) | FY 2009-10 Gavilan "Actuals" | |
| Business Services Director, Susan Cheu, reviewed the "Consolidated Summary of All Funds Adopted Budget FY 2010-11". She concentrated on the "Unrestricted General Fund" column titled "Current Budget FY 09-10". Susan explained that the general fund deficit in the budget is shown as $68,000 but with overages in other funds, that the general fund is covering, it increases the budget deficit to approximately $700,000. However, the district may actually be close to breaking even when we close the books. The district received additional RDA income and the categorical programs decreased their deficits and overall spending within the general fund. Susan noted that we are still in the process of closing the books and hope to have that done by the end of August or middle of September. | ||
| 5) | FY 2010-11 State Budget | |
| President Kinsella stated that no one really knows when the state will have an approved budget and if the approved budget will actually be a realistic one. There are a number of issues on the table now that seem to work in favor of community colleges. For example, the elimination of the negative COLA, approving growth funding, and bringing a number of categorical programs back to the level of prior year funding. | ||
| 6) | FY 2010-11 Gavilan Final Budget | |
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Vice President of Administrative Services, Joe Keeler, referred the Committee to the "Consolidated Summary of All Funds Adopted Budget FY 2010-11" and the "Adopted Budget" column. After a number of cuts, the general fund was still showing a $700,000 deficit. The adopted budget being proposed would cover that deficit by reducing additional classes and using approximately $600,000 as a transfer from the retiree health benefit trust to the general fund in order to pay for the FY 10-11 retiree benefit costs. Under this proposal, the adopted budget would then breakeven with a fund balance that equals 9.25% of expenditures and transfers out. President Kinsella discussed how we have a number of opportunities that may provide enough additional revenue or cost shifts to allow the adopted budget to breakeven without using the retiree health benefit trust transfer. For example, we have applications in for the STEM grant, Title V, the possibility of growth funding, and the continued emphasis that even though a program has money budgeted they should only spend it if it's needed. The Committee agreed to send the adopted budget to the full Board of Trustees as presented. |
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| 7) | Status of FY 2009-10 Audit | |
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Susan noted that the auditors first of two visits was last month. At the conclusion of their visit, the auditors reviewed a few changes that they are recommending for better internal controls. Susan reviewed their request with the Committee and noted that the district is in the process of making the changes. The second week that the auditors come is in October. They will present a final audit document to the Board of Trustees in December 2010. Joe then reviewed the separate audit for the Gavilan College Educational Foundation for FY 09-10. Joe noted that he explained to the auditors what had happened during the year and provided the auditors with minutes and other documentation from the Foundation Board and from the district's Board of Trustees. Joe noted that the auditors are still doing testing but may not be able to issue an opinion on the books of the Foundation due to some of the errors in coding on some of the various expenditures. We will know more when the auditors return in October. |
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| 8) | Other | |
| There were no other items. | ||
| 9) | Set Next Meeting Date | No future date set. |
| 10) | Adjourned | Meeting adjourned at 5:45 p.m. |
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