first 5 yolo children and families commission …...agenda item #18 6/14/17 first 5 yolo children...

Agenda Item #17

6/14/17

First 5 Yolo Children and Families Commission

Agenda Item Cover Sheet

Attachments

Agenda Item- Adopt Unassigned Fund Balance Allocations

Background

First 5 Yolo reports its fund balance in accordance with GASB Statement No. 54. This

includes the use of approved classifications to enhance the usefulness of, and more clearly

define, fund balance information. The classifications include “non-spendable”, “restricted”,

“committed”, “assigned”, and “unassigned” fund balance, and are based on the relative

strength of the constraints that control how specific amounts can be spent by the

Commission. First 5 Yolo does not necessarily hold funds in all these categories at any

given time.

Over the past several months, the Commission has been interested in exploring options for

more detailed classification of current "unassigned" fund balance. The Executive Director

has consulted with County of Yolo Chief Financial Officer Auditor-

Controller/Treasurer/Tax Collector, Howard Newens, for expert advice and consistency

with public agency practices. Staff and Commission have discussed possible options in the

context of previous budget items.

Executive Director Overview

In order to better define the Commission’s intended use of dollars in First 5 Yolo Fund

Balance, staff recommends the further classification of the Commissions current,

“Unassigned” Fund Balance (traditionally noted on the budget as “Fund Balance”). First 5

Yolo currently has direction to maintain 6 months of operating reserve.

Staff recommends the assignment of funds to a separate Catastrophic Reserve equal to

approximately 6 months of the annual First 5 Yolo operating budget. These funds are

intended to allow operations to continue, including all funded programs, for 6 months

should Proposition 10 funding become significantly delayed or end, and/or should any

other catastrophic event occur that disrupts business operations of First 5 Yolo. The target

amount for this fund for FY17/18 is $750,000.

Staff proposes that the remaining fund balance continue to be Unassigned. The target

amount for the Unassigned Balance is proposed to be $500,000, and is intended to preserve

adequate cash flow, and therefore smooth operations, in the event of revenue volatility, an

unpredicted significant decline in Prop 10 funding, and/or delay in funding (e.g., DOF

projected $270,000 one-time revenue decrease resulting from the delay in backfill from

Prop 56).

At this time, First 5 Yolo has sufficient fund balance to cover all target amounts.

Currently, the Unassigned Balance is exceeding its target by approximately $55,000. By

the close of FY17-18 the Unassigned Balance is projected to exceed its target by

approximately $198,000. This is funding that can be rolled forward into the next Strategic

Plan to allow program funding to remain at or near current levels, even if Proposition 10

revenues continue to decline at a 2-3% rate.

No policy change is required to assign and/or further delineate currently Unassigned

Funds.

Additional Information

While all Fund Balance moneys are subject to re-appropriation through a majority vote of

the Commission, it is recommended that the Commission consider additional constraints

on the Catastrophic Reserve and adopt policies when the Commission revises Chapter 6-

Financial Reporting of the First 5 Yolo Policy and Procedures Manual.

Action Requested

Adopt Unassigned Fund Balance allocations including assignment of $750,000 to a

Catastrophic Reserve.

Agenda Item #18

6/14/17



Attachments

Agenda Item- Adopt FY 17/18 Budget

Background

The Commission is required to adopt an annual budget.


During the May 2017 meeting, the Commission adopted the FY17/18 annual budget

summary indicating projected revenues and expenditures for the coming fiscal year. At that

time, the total amount for Program Funding was included, but not all individual allocations

were determined. Individual program allocations are now included in the attached

FY17/18 Budget.

Amounts to agencies with Help Me Grow Yolo contracts have changed, as First 5 Yolo

and County of Yolo (MHSA-PEI funding) will be leveraging funding to expand and

enhance Help Me Grow Yolo beginning in FY17/18.

In addition to the individual program detail, the full FY17/18 budget includes the increased

revenues from MHSA-PEI funding, the addition of a contingency fund line item in the

amount of approximately 2% of projected Proposition 10 funding, and further refined

expenditures as of early June 2017.

Notable line item changes include: addition of MHSA-PEI funding, restructuring of Help

Me Grow Yolo funding, augmented funding for YCCA’s Play School Experience

coordination role, an increase in unallocated program funding (unless re-allocated by

Commission), reduction in costs associated with the independent audit, reduction in

professional services, and an increase to County ERP charge (anticipated fee increase

associated with using county systems e.g., INFOR and eSchedule). Please see further

narrative in the Notes section of the attached budget.


The full FY17/18 budget is attached.

Please note that, as of the posting of this agenda packet, the MHSA-PEI grant has yet to be

fully executed. It is anticipated that final execution (vote by the Board of Supervisors) will

occur at the end of June or mid-July. All HMG Yolo contract amounts are contingent upon

final execution of the MHSA-PEI grant to First 5 Yolo.

Action Requested

Adopt full FY17-18 budget.

May 22, 2017

Descriptions Budget Admin Program Eval

SOURCES OF FUNDS

A. Revenue

First 5 California Tobacco Tax Allocation 1,581,358$ 1,581,358$ -$ -$ 1

MHSA-PEI Grant Funding 225,000 225,000 - - 2

Intergovernmental Transfer Funds 90,000 90,000 - -

Interest Earnings 3,000 3,000 - -

Other Income and Adjustment - - - -

TOTAL SOURCES OF FUNDS 1,899,358 1,899,358 - -

B. Personnel

FTE 3.25

Salaries and Benefits 413,070 130,805 220,304 61,960

Extra Help 16,772 5,311 8,945 2,516

OPEB 20,923 6,626 11,158.80 3,138

Workers Comp, Unemployment, & Liability Ins. 1,930 611 1,029 290

Total Personnel 452,695 143,353 241,437 67,904

C. Program Funding

Funded Programs

Help Me Grow/ Developmental Screening 450,000 - 450,000 -

Northern California Children's Therapy Center 339,000 - -

Help Me Grow California 1,000

RISE 10,000 - -

Empower Yolo 25,000 - -

Yolo County Children's Alliance 75,000 - -

Avance 150,000 - 150,000 -

Play Groups/Play School Experience 119,000 - 119,000 -

RISE, Inc 24,000

Empower Yolo 52,500

Yolo County Children's Alliance 42,500

Parent Education / Family Hui 15,000 - 15,000 -

Foster Care 103,500 - 103,500 -

Healthy Families America/Step by Step 50,000 - 50,000 -

Preschool/IMPACT 50,000 - 50,000 -

Subtotal 937,500 - 937,500 -

Special Projects

Emergency Childcare 10,000 - 10,000 -

Enhancement of the Arts 6,000 - 6,000 -

Early Literacy for Families 50,643 - 50,643 -

BOOST 20,505 - 20,505 -

Child Development Conference Speakers 2,500 - 2,500 -

Cost Allocations

EXPENDITURES

FIRST 5 YOLO

BUDGET

FISCAL YEAR 2017-2018

Subtotal 89,648 - 89,648 -

Capacity Building and Evaluation Support

Clear Impact 10,000 - 10,000 -

Subtotal 10,000 - 10,000 -

Other Program Funding

Sponsorship Fund 5,000 - 5,000 -

Unallocated 124,352 - 124,352 - 3

Subtotal 129,352 - 129,352 -

Total Program Funding 1,166,500 - 1,166,500 -

D. Operating Expenses

Telephones, Internet, and Web Hosting 4,500 1,425 2,400 675

Food 650 - 650 -

Office Expenses 2,000 633 1,067 300

Postage 200 63 107 30

Printing 600 190 320 90

Maintenance - Equipment 1,200 380 640 180

First 5 Association Membership Dues 4,500 1,425 2,400 675

Program Expense 1,500 - 1,500 -

Publication & Legal Notices 100 32 53 15

Rent - Buildings 23,328 7,387 12,442 3,499

Smalls tools and Minor equipment 2,000 633 1,067 300

Board Retreats 200 200 - -

Staff Trainings/Development 1,600 507 853 240

Transportation, Travel, & Conferences 4,000 1,267 2,133 600

Total Operating Expenses 46,378 14,142 25,632 6,604

E. Professional Services

Consulting/Contracting

Evaluation 25,000 - - 25,000

Communications 1,000 700 300 -

Program 2,000 - 2,000 -

Other 500 500 - -

Strategic Planning 8,000 - - 8,000 4

Legal and Accounting

Yolo County Counsel (Legal Services) 3,500 1,108 1,867 525

Yolo County Auditor's Office (Fiscal Services) 3,000 950 1,600 450

Independent Financial and Expanded Audit 9,000 9,000 - -

Technology and Data Processing

Yolo County ERP 2,620 2,620 - - 5

Other IT Services 2,480 785 1,323 372

Website/Database Dev & Maintenance 750 238 400 113

Total Professional Services 57,850 15,901 7,489 34,460

F. Contingency Funds 32,000 32,000 - -

TOTAL EXPENSES 1,755,423$ 205,397$ 1,441,058$ 108,968$

Excess of sources over exps (Exps over sources) 143,936 12% 82% 6%

Fund Balance, July 1, 2016 1,305,428$

Fund Balance, June 30, 2017 1,449,364$ 6

Unassigned Balance (target $500K) 699,364 7

750,000 8

2. MHSA-PEI grant is contracted for $225,000 annualized over 3 years

3. Subject to change pending Commission action on agenda item #13

4. Periodic costs associated with development of new strategic plan

6. This balance is comprised of the Unassigned Balance and the Catastrophic Reserve.

7&8 The Commission's Fund Balance has been allocated into two separate accounts each serving a different

purpose. The Catastrophic Reserve is allocated to cover all First 5 Yolo expenses for a period of approximately

6 months should Prop 10 funding become significantly delayed or end, and/or a catastrophic event occur that

disrupts business operations of First 5 Yolo. Any remaining Fund Balance is allocated to the Unassigned Balance.

The target balance for this account is $500,000. Under current policies, the Commission may choose to re-

allocate any portion of the Unassigned Balance by majority vote.

Catastrophic Reserve (6mo. PY Total Budget)

5. Includes increase to county ERP charge (affecting all departments). ERP includes connectivity to all county

systems (e.g., INFOR [accounting sofware], eschedule, etc.)

1. Prop 10 Revenue projection is based on a 3% decline from FY15/16 actuals. In FY17-18 revenues are projected by

the DOF of decrease by $270K, a one-time decrease caused by the delay in receiving backfill due to the

implementation of Prop 56. Any actual under realization of revenue in excess of the 3% projected decline will be

fnded through reserves (fund balance).

Notes:

Agenda Item #19

6/14/17


Agenda Item Cover Sheet Attachments

Agenda Item- Approve Increase to Administrative Cost Cap

Background

First 5 Commissions are required to maintain an administrative cost cap in compliance

with the First 5 Association Financial Management Guide and California Health and Safety

Code section 130140(d)(5). Smaller commissions typically have higher administrative cost

percentages due to their inability to achieve the economies of scale available to larger

commissions.


Maintenance of an administrative cost cap is for reporting purposes and has limited

to no direct impact on actual operating expenditures. Since FY15/16, First 5 Yolo has

reduced its operating expenses by over 30%.

While total operating expenditures have reduced, the staff has also reduced (e.g., 4.6FTE in

FY15/16 to 3.25FTE close of FY 16/17). Previously, staff members had more clearly

defined roles as related to responsibilities across program, evaluation, and administration.

Now, staff roles are more diversified and each staff person’s responsibilities include

components across all three activities. Because of this change, the allocation formula,

which is based off job descriptions, gives a higher administrative allocation percentage,

which in turn, raises the percentage of administrative costs over the year. Further,

increased administrative costs are expected with a smaller agency as smaller commissions

lack the economies of scale to effectively reduce their percentage of administrative costs.

Based on the current size and needs of First 5 Yolo, staff recommends an increase in the

administrative cost cap to 15%. The current cap is 12%. This increase has no impact on

expenditures for FY16/17 or projected expenditures for 17/18.


Action Requested

Approve increase in administrative cost cap to 15%.

Agenda Item #20

6/14/17



Attachments

Agenda Item- Executive Director’s Report

Background

The Executive Director updates the Commission on activities and developments.


Updates:

o Help Me Grow o First 5 and Strategic Plan Trends o Website and Commission Agenda o Clear Impact


Action Requested

Receive Executive Director’s Report.

Agenda Item #21

6/14/17



Attachments

Agenda Item- Receive Reports from Commissioners

Background

Commissioners have the opportunity to provide updates on activities and events relating to their role

as a commissioner and/or professional capacity in the County.



Action Requested

Receive reports.

first 5 yolo children and families commission …...agenda item #18 6/14/17 first 5 yolo children...

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