1 / 16

Dos Palos Board Meeting

Dos Palos Board Meeting. October 21, 2010 Misty Key Assistant Superintendent Business Services Merced County Office of Education. Cash Position General Fund. Total cash in G eneral Fund as of 10/21/10 $776,327 Total October payroll approximately $1.3M

parson
Download Presentation

Dos Palos Board Meeting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Dos Palos Board Meeting October 21, 2010 Misty Key Assistant Superintendent Business Services Merced County Office of Education

  2. Cash Position General Fund • Total cash in General Fund as of 10/21/10 $776,327 • Total October payroll approximately $1.3M • Total invoices entered in system, not yet released for payment approximately $600K • Known invoice not entered $122K* *There are more than likely other unpaid invoices unknown to MCOE • Total cash less current obligations due ($1.2M)

  3. Cash Position Cafeteria Fund • Total cash in Cafeteria Fund as of 10/21/10 $80,864 • Total October payroll $52,963 • Total invoices entered in system, not yet released for payment approximately $126,138 • Total cash less current obligations due ($98,237)

  4. Cash Position Fund 40 • Total cash in Fund 40 as of 10/21/10 $1,838,395 • Fund 40 is special reserves for capital outlay • Currently, all deposits in Fund 40 are from insurance proceeds

  5. Strategy for Payables • Important to prioritize payments • Payroll, statutory benefits and health insurance • Utilities – health and safety of staff / students • Insurance – liability and risk exposure substantial • Supplies and other services – prioritize based on aging and associated late fees / penalties

  6. County Superintendent Determination • Pursuant to Education Code Section 42127.6(c), the County Superintendent of Schools has determined the District will be unable to meet its financial obligations for the current or subsequent fiscal year • County Superintendent current action • Appointed Fiscal Adviser, Michelle McClowry to assist MCOE in performing the duties / actions in Education Code Section 42127.6(e)(1-5)

  7. Potential next steps if fiscal recovery not successful • State Receivership and State Loan • A loan from the state results in the state taking control of the District • School Board loses its power and becomes advisory only, until the loan is completely repaid • Superintendent is no longer employed • State Administrator assumes all powers of the Board and Superintendent for typically 20 years

  8. Current Districts with State Loans • West Contra Costa Unified School District • Emery Unified School District • West Fresno Elementary School District • Oakland Unified School District • Vallejo City Unified School District • King City Union High School District

  9. What can you do to avoid State Receivership • All stakeholders must recognize the problem and work together as a team to solve it • That means: • Continue with the difficult decisions necessary to build cash reserves • Either increase revenues or decrease expenditures • Prioritize payables and pay the obligations as they become due • Delaying actions moves the District closer to state receivership

  10. Information to Address Previous Board Questions

  11. Reserve Comparison to other districts

  12. Ending General Fund Balance • 09/10 ending fund balance was $1.2M • The 09/10 ending fund balance was not all cash. The General Fund had $134,138 available as cash on 6/30/10. • Monthly payroll is approximately $1.1M

  13. Final Thoughts • Current cash position of the General Fund would be negative if all obligations due are paid • District needs to prioritize the invoices to be paid • County Superintendent has appointed a fiscal adviser • All stakeholders must recognize the problem and work together as a team to solve it

  14. Questions ?

More Related