The two reserve accounts exceed Board minimum requirements by a total of $12 million
If you deal with the Community College and ask for explanations about how it spends money, you will have a tough time getting clear, consistent answers. This was the case when Governing Board member McCasland asked the VP of Finance and Administrative Services, Clint Ewell to explain the apparent difference between statements he made at an earlier Board meeting and the most recent charts given to the Governing Board showing reserves in two large funds were dropping.
McCasland recalled that Ewell had indicated in response to her earlier questions that the College did not spend down the reserves in these two accounts. However, when the October report indicated the College was spending down some of its huge reserves in the two funds, she wanted an explanation for the inconsistency. (Note that the excess reserves in both counts in actuality total around $12 million above minimum requirements.)
Ewell said that the November dip in the Educational and General Auxilary Fund was the result of using the fund to pay for general operating expenses. However, he indicated that the fund will be replenished when property taxes are collected by the College and return to the $11 million mark.
However, he indicated that the Plant Fund Reserve account would be lower at the end of the year because of the huge capital expenditures for projects on the Prescott Campus. This came as a surprise because he had indicated to Ms. McCasland at the earlier meeting that those funds would not be spent down. Furthermore, there is there no clear indication in the current budget that reserves would be tapped to pay for the Prescott building spree.
You may view the brief discussion between Ms. McCasland and Mr. Ewell at the November 9 Board meeting by clicking here.