1. Riverside Community College District Leadership Academy Finance 101 Presentation April 8, 2011 Presented by: Aaron S. Brown Associate Vice Chancellor, Finance

2. Administration and Finance

3. Administration and Finance - Organization Chart -

4. Administration and Finance - Mission Statement - The mission of Administration and Finance is to provide service in support of excellence in community college education. We strive to provide innovative, efficient and quality support services to the RCCD community in an environment of rapid change, resource constraints, and ever increasing demands. We also serve as the District’s interface with external groups in the areas of budget, accounting, risk management, procurement and finance, and we play a major role within the District relative to accountability in terms of resource utilization. In sum, the District’s Administration and Finance unit provides leadership and accountability for fiscal management, business services, annual audits, risk management, procurement and information technology systems.

5. Finance - Organization Chart -

6. Finance - Mission Statement - The District’s Finance unit, consisting of Finance, Budget, Accounting Services and Purchasing, provides superior customer service to the District’s students, faculty, staff, and to the public in the areas of financial management, maintenance of fiscal integrity, budgeting, accounting, and cash management. This is accomplished by a professional and dedicated staff through adherence to, and compliance with, sound business practices, policies and procedures, and regulatory agencies’ requirements. These measures ensure that District resources are safeguarded and the financial stability and viability of the institution is maintained to continue to provide the highest quality educational services at the District’s three colleges and numerous educational centers.

7. Finance - Functions (continued) - Accounting Services Internal & External Audit Coordination - District, Foundation & Measure C Internal & External Financial Reporting - Monthly Financial Reports, Periodic Reports to the Chancellor’s Office Banking Activity Student Financial Aid Disbursements & Reimbursement Requests Foundation Accounting Property & Equipment Accounting - Inventory Records Maintenance for Land, Buildings & Equipment Surplus Property Management Payroll Services Vendor Payments/Accounts Payable

8. Finance - Functions (continued) - Purchasing Soliciting Bids, Quotations & Proposals; Negotiating Vendor Contracts Maintaining Vendor Databases Procure Materials & Services Price Evaluation Promoting District as Equal Opportunity Purchaser

9. Finance - Functions (continued) - Finance Budget Development/Strategic Planning Maintain Fund Structure Budget Monitoring Budget Position Control Measure C General Obligation Bond - Resource Allocation & Reporting State Funded Construction Projects – Claims Cash Management & Accountability Grants Accounting, Budgeting & Monitoring Offsite Records Accounting & Maintenance

10. Finance - Functions (continued) - Accounting Services Internal & External Audit Coordination - District, Foundation & Measure C RFP Process Coordination Supplying Documentation/Responding to Inquiries Grants/Categorical Programs Follow-Up To Findings Perpetual Audit Process Internal & External Financial Reporting - Monthly Financial Reports, Periodic Reports to the Chancellor’s Office CCFS-311Q (Quarterly Report) CCFS-311 (Annual Budget and Actual Report) CCFS-323 (Enrollment Fee Report) Faculty Compensation/Office Hours/Health Insurance IPEDS (Federal) Gann Limit (Appropriations)

11. Finance - Functions (continued) - Accounting Services (Continued) Internal & External Financial Reporting - Monthly Financial Reports, Periodic Reports to the Chancellor’s Office Monthly Budget/Actual Financial Report to Board Surplus Board Report Monthly Budget/Actual Financial Report to Board Surplus Board Report Audit Board Reports Payroll Reports Grants/Categorical Periodic Reports W-2s 1099s Banking Activity RFP Process Credit Cards

12. Finance - Functions (continued) - Accounting Services (Continued) Banking Activity Deposits (Enrollment Fees and all other receipts) Cash Flow Investments Student Financial Aid Disbursements & Reimbursement Requests Drawdown Requests Accounting/Reconciliations Check Preparation/Direct Deposit Preparation Debit Card Management Banking Activity (Check Clearing/Fraudulent Checks/Funds) Audit Process Foundation Accounting Banking Investments Liaison to the Foundation Board

13. Finance - Functions (continued) - Accounting Services (Continued) Property & Equipment Accounting - Inventory Records Maintenance for Land, Buildings & Equipment Surplus Property Management Board Reports Payroll Services Calculations Service to Individual Employees Coordination with all Departments and RCOE Leave Accounting Payroll Distribution Retirement Accounting PARS Compliance with Bargaining Unit Contracts Vendor Payments/Accounts Payable

14. Finance - Functions (continued) - Accounting Services (Continued) Accounts Payable Vendor Payments Contract Provision Compliance Purchase Order Administration Credit Card Administration Travel Reimbursements External Reporting Vendor Communication Coordination with Departments and RCOE Cash Management Internal Controls Overlays Everything/Paramount Importance

15. Finance - Functions (continued) - Purchasing Solicits Bids for Public Works Projects Solicits Quotations & Proposals under UCCAP Compliance with Public Contract Codes Negotiating Vendor Contracts Maintaining Vendor Databases Assist with the procurement of Materials & Services Price Evaluation Coordinates with Departments and Construction Management Firms Promotes District as Equal Opportunity Purchaser

16. Finance - Functions (continued) - Finance Budget Development State of California – Funding Model Apportionment (General and Categorical) Basic Allocation + Base Workload + COLA + Growth = Total Computation Revenue Basic Allocation (Multi College District with Three Colleges = $10.5 million) Base Workload (FTES x FTES Rate = 26,051 x $4,564 = $127.2 million) FTES = Full-Time Equivalent Students (Credit, Non-Credit, Enhanced NC) FTES = 15 hours of instruction x 17.5 weeks x 2 semesters = 525 Hours COLA = Cost of Living Adjustment Growth = Growth Rate x Base FTES Deficit (Property Tax or Enrollment Fee Shortfall) Total Computational Revenue – Property Taxes – 98% of Enrollment Fees = Net Apportionment Approved Center = Additonal Basic Allocation - $1 million

17. Finance - Functions (continued) - Finance Budget Development (Continued) State of California (Continued) Categorical Programs: DSP&S EOP&S CalWORKS Matriculation Strategic Planning/Executive Cabinet College and District Strategic Planning Committees Sub-Committees Program Review Enrollment Management Committee Develop Enrollment Policies Forum for Enrollment Allocations/Recommend to Executive Cabinet

18. Finance - Functions (continued) - Finance Maintain Fund Structure Resources 1000 – General Operating (Unrestricted) 1050 – Parking (Restricted) 1070 – Student Health (Restricted) 1080 – Community Education 1090 – Performance Riverside (Unrestricted) 1110 – Bookstore (Unrestricted) 1180 – Redevelopment (Restricted) 1190 – Grants and Categorical (Restricted) 3200 – Food Services (Special Revenue) 3300 – Child Care (Special Revenue) 4100 – State Construction and Scheduled Maintenance (Capital Projects) 4120 – Non-State Funded Capital Outlay (Capital Projects)

19. Finance - Functions (continued) - Finance Maintain Fund Structure Resources 4130 – La Sierra Capital (Capital Outlay 4160 – GO Bond – Measure C (Capital Projects) 4170 – GO Bond – Measure C Cap Appreciation Bonds (Capital Projects) 4180 – GO Bond – Measure C Build America Bonds (Capital Projects) 6100 – Health and Liability (Self-Insurance) 6110 – Workers’ Compensation (Self-Insurance) Federal Financial Aid State Financial Aid ASRCCD

20. Finance - Functions (continued) - Finance Budget Monitoring Due Diligence Legal, Regulatory and Policy Compliance Budget Transfers Chart of Account Maintenance Proper Budget Coding Budget Analysis Budget Position Control Maintain accountability over all authorized positions (All Resources) Make Cost Projections Associated with New Positions Account for the Allocation of Positions between Resources Salaries and Benefits = 85.6% of Total Expenditures (Resource 1000) Academic $64.6M; Classified $32.1M; Benefits $29.4M = $126.1M

21. Finance - Functions (continued) - Finance Measure C General Obligation Bond (Prop 39 - $350M) Budget and Accounting Due Diligence Audit (Financial and Compliance) Reporting (Citizen’s Bond Oversight Committee) Cash Management Series Issuance (Sizing, Underwriters, Rating Agencies, Attorneys) State Funded Construction Projects – Claims Budget and Accounting Compliance Reporting Claims Preparation and Submission

22. Finance - Functions (continued) - Finance Cash Management & Accountability Cash Flow Projections and Monitoring Apportionment Deferrals $26 Million out of $100 million Tax and Revenue Anticipation Notes (TRAN) Cash with County Treasurer Independent Banking Activity Regulatory Requirements Grants Application Assistance Budget and Accounting Reporting Oversight Cash Drawdowns Audit Assistance Board Resolutions

23. Finance - Functions (continued) - Finance Offsite Records Storage Inventory Management Accounting Record Retention Retrieval and Submission Coordination Questions???