DANVILLE — Danville Area Community College trustees on Tuesday will consider adopting a resolution aimed at ensuring that the college remains financially solvent while awaiting state funding payments and other revenue.
The DACC board will meet at 7 p.m. Tuesday. The meeting is in Vermilion Hall, Room 302, at the campus, 2000 E. Main St. A copy of the agenda and board packet is available online at http://bit.ly/vZmsnc .
Trustees will vote on whether to transfer up to $5.4 million as needed from the college's working-cash fund to the education and operations and maintenance funds.
"This will provide us with enough cash to pay all of our expenses if our cash flow is short," Chief Financial Officer Gail Morrison said, adding trustees routinely adopt the resolution this time of the year.
Under the current operating budget, DACC is expected to receive about $3.9 million in state funding, about $4.75 million in property tax and corporate replacement tax and about $6.47 million in tuition and fees.
Morrison said the college typically needs to dip into the working cash fund in May, June and July "prior to the fall tuition money coming in and property tax revenue coming in. If the state is running behind, which they have been in the past, you reach the end of that fiscal year and you run short on cash."
On Friday, Morrison said the state owed the college about $700,000. "In the past, it's been $1 million or as high as $2 million," she said.
"It's a very efficient and low-cost way to provide cash when necessary," Morrison continued, adding the fund is like an internal bank. "It's right there and on demand."
And, she added, it keeps the college from having to borrow money from a bank. While the college must repay money that is borrowed, it doesn't have to pay interest.
When the money isn't being used, it's drawing interest.
Also at the meeting, the board will vote on whether to appoint Tammy Clark-Betancourt as treasurer effective March 1.
Clark-Betancourt would succeed Morrison, who is retiring on Feb. 29 after 25 years, including 18 as controller and the last seven as chief financial officer and treasurer. Morrison, who is leaving to spend more time with her family and pursue other interests, submitted her resignation in November.
Clark-Betancourt, who will also take over as chief financial officer, has directed DACC's internal consulting and project management since August.
Prior to that, she was the controller at Southwestern Illinois College for about 8-1/2 years and worked as a certified public accountant.
"She's very well qualified, and she embraces the community college mission," Morrison said.