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Agenda Item (IV-D-2)

Meeting6/12/2018 - Committee
Agenda ItemCommittee - Resources (IV-D-2)
SubjectCapital Program Executive Summary Update
Funding Measure C
Recommended ActionIt is recommended that the Board of Trustees review the updated Capital Program Executive Summary report reflecting the status of Measure C project commitments, income allocations, and remaining Measure C project balances; and adding additional income in the amount of $4,251,338 as of June 30, 2017.

Background Narrative:

In connection with the District’s Measure C general obligation bond, various financial reports are maintained to account for approved Measure C project budgets, allocations, project prioritization and commitments, and project expenditures.

Business and Financial Services maintains the Project Commitments Summary (PCS) report based on information contained in the District’s accounting system and most recent Five-Year Capital Construction Plan. The PCS report includes the Board approved budget and the expenditures associated with each Measure C project. The PCS report is provided to the Citizen’s Bond Oversight Committee each time it meets.

Facilities Planning and Development maintains the Capital Program Executive Summary (CPES) report as a planning tool to identify Measure C: project allocations and remaining balances; income from interest, issuance premium, donations, and energy efficiency rebates; and project commitments and prioritization. The CPES report is also used as a planning tool for the timing and sizing of future Measure C issuances.

The CPES report should be maintained on a continual basis and should be reconciled with the District’s accounting system every month to ensure accuracy, accountability and currency relative to available Measure C balances. The CPES report has not been updated for several years, necessitating that a comprehensive reconciliation process occur.

During the reconciliation and review process, a number of issues were identified that impacted the accuracy of the CPES report. The items noted below have been corrected and are now reflected on the updated CPES report, which is presented for the Board’s review and approval, along with a recommendation to add additional income in the amount of $4,251,338 as of June 30, 2017. Finally, detailed information has been provided to show the income corrections and distribution of income.

• Income totaling $4,251,338 from August 2010 through June 30, 2017 for such items as interest, rebates and donations were not brought to the Board for approval and were not included as additional Measure C program allocations that would be available to fund future project on the CPES report.

• Items of income related to specific college projects were not assigned to the respective college that benefited. Rather, they were allocated on the CPES report based on the original allocation distribution. To correct this, the specific items of income have been reassigned to each respective college.

• The Project Savings Reconciliation (PSR) report is used to report projects that have been completed and to identify project savings that can be returned for reallocation to future projects. At a minimum, a PSR report should be presented annually to the Board of Trustees, contingent upon Measure C program activity. It was noted that a PSR report had not been presented to the Board since August 2015. In May 2018, the Board approved $4,343,626 of project savings to be uncommitted and made available for reallocation to future projects.

• In some instances, project commitments were not accurately reflected on the CPES report for projects that were partially funded by donations or rebates.

To ensure future transparency and accountability, both the CPES and PCS reports will be provided to the Board of Trustees prior to each meeting of the Measure C Citizen’s Bond Oversight Committee. PSR reports and action items to recognize Measure C income will be submitted to the Board on a more timely basis.

Prepared By: Aaron Brown, Vice Chancellor, Business and Financial Services
 Majd Askar, Director of Business Services
Janna Accomando, Facilities & Planning Specialist/Accounting