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HomeMy WebLinkAbout05.c. Receive annual report on status of loans under BP 001 - Employee Computer Purchase Assistance Program Page 1 of 3 Item 5.c. CENTRAL SAN August 25, 2020 TO: FINANCE COMMITTEE FROM: KEVIN MIZUNO, FINANCE MANAGER REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE ANNUAL REPORT ON STATUS OF LOANS UNDER BOARD POLICY NO. BP 001 - EMPLOYEE COMPUTER PURCHASEASSISTANCE PROGRAM Central San has for many years offered an Employee Computer Purchase Assistance Program, which provides employees with a low cost funding source to purchase a personal computer and/or other authorized hardware for the purpose of improving computer skills. Board Policy (BP) 001, which provides the framework for this program, was made effective on July 1,1995. It was most recently amended on February 5, 2015 and reviewed without changes on February 23, 2017. On an annual basis, staff provides the Board with a report including the status of participation and outstanding loans under the program. This memo serves as the annual report for the fiscal year ending June 30, 2020. A copy of BP 001 is attached for your convenience. Program Overview Central San charges employee participants at the Local Agency Investment Fund (LAIF) interest rate, published by LAIF on a monthly basis. As LAIF generally comprises a large proportion of Central San's investment portfolio, monies loaned to employees for this program earn a comparable rate of return as if they were invested rather than extended to employees. Accordingly, the program is "cost neutral"to Central San ratepayers apart from the relatively minor staff time associated with administering it. Other program highlights include the following: • The annual total funding limit is $30,000. • Allowable purchases under the program include desktops, laptops, tablets, printers, software, and/or related equipment of any brand. • Purchases must meet current District standards and be pre-approved by the Information Technology Division Manager. • The minimum loan amount is $600; the maximum loan amount is $2,000. • Only one (1) loan can be outstanding at any one time per employee. • The program is administered by the Finance Division. August 25, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 114 of 118 Page 2 of 3 Status of Participation and Outstanding Loans As of June 30, 2020, the revolving loan fund had a total of$12,892.78 in outstanding loans, including interest. During the fiscal year ending June 30, 2020, six(6) loans in the amount of$11,374.73 were extended, demonstrating this continues to be a benefit of interest to some Central San employees. The utilization trend in recent years follows: Year New Loans ------ --------------- FY 2019-20 6 FY 2018-19 10 FY 2017-18 9 FY 2016-17 9 FY 2015-16 11 With schools offering remote learning rather than on-site instruction, it is possible that there may be an uptick in interest in the program in the coming months for Central San families who are in this situation, and who may wish to purchase or upgrade a computer. Strategic Plan Tie-In GOAL THREE:Fiscal Responsibility Strategy 2—Ensure integrity and transparency in financial management ATTACHMENTS: 1. BP 001 - Employee Computer Loan Program August 25, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 115 of 118 Page 3 of 3 Number: BP 001 Related Procedures: AP 001 Authority: Board of Directors Effective: July 1, 1995 Revised: February 5, 2015 CENTRALSAN Reviewed: 02/23/17, 02/19/19 Initiating Dept./Div.: Administration/Finance BOARD POLICY EMPLOYEE COMPUTER PURCHASE ASSISTANCE PROGRAM PURPOSE This policy will provide employees with a low cost resource to purchase a personal computer and/or other authorized hardware or software for the purpose of improving employee computer skills. POLICY 1. The District will provide loans to District employees under the Employee Computer Purchase Assistance Program to purchase a personal computer and/or other authorized hardware or software. 2. The annual funding limit for the Program is $30,000. 3. The maximum computer loan per employee under the Program is $2,000, with a minimum of $600. August 25, 2020 Regular FINANCE Committee Meeting Agenda Packet- Page 116 of 118