Accreditation - Hartnell College!!

III.D.3.a
The institution has sufficient cash flow and reserves to maintain stability, strategies for
appropriate risk management, and develops contingency plans to meet financial
emergencies and unforeseen occurrences.
Descriptive Summary
Hartnell Community College maintains sufficient cash flow and reserves to maintain
financial stability. The District has used Tax and Revenue Anticipation Notes (TRAN) as
needed to ensure stability in cash flow and to prevent program disruption during the year.
The District has had sufficient reserves over the past two years and has not found it
necessary to use TRAN funding. The District has established sufficient reserves in other
funds that should it be necessary, can temporarily borrow these funds.
The 5% reserve level has been established by the California Community College
Chancellor's Office as a "prudent" reserve level. The Board of Trustees has met the prudent
reserve threshold, and during the last three years of economic downturn, has funded
reserves in excess of the 5% level. Reserve levels were as follows:
2008-09 Ending Balance: $2,948,967 Reserve; 5% required $1,910,897
2009-10 Ending Balance: $4,588,291 Reserve; 5% required $1,804,850
2010-11 Ending Balance: $8,246,608 Reserve; 5% required $1,692,366
2011-12 Ending Balance: $7,846,608 Reserve; 5% required $1,705,000
The District participates in several joint powers agencies (JPAs). The District is selfinsured
for loss by liability, property, electronic data processing equipment, crime,
equipment breakdown, and excess liability through the Statewide Association of
Community Colleges (SWACC), currently comprised of 26 individual colleges and two
multi-districts JPA. (III.D.22, Current JPA Agreement)
The SWACC also covers workers’ compensation insurance. The SWACC coverage for
liability ranges from $5,000 to $15,000. The SWACC coverage for property ranges from
$10,000 to $150,000. Excess private carriers insure property losses that may exceed the
SWACC coverage up to $1 million per occurrence.
Self Evaluation
As evidenced above, the District has sufficient cash flow through the use of TRANS and
other District Funds. Due to its high level of reserves, the college is able to use the funds to
achieve fiscal viability and stability. In addition, the institution has several strategies for
appropriate risk management and plans to meet financial emergencies and any unforeseen
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