Treasurer s Report Board Meeting December 4, 2015

Transcription

1 Board Meeting THOT s 2016 fiscal year (FY) budgeted expenditures for Teaching Hospitals of Texas is $771,533. This budget was approved at the September 2015 Board meeting. THOT s 2015 fiscal year (FY) budget for Teaching Hospitals of Texas was $844,843. That amount included Board approved, one-time non-recurring expenditures of $84,210 which would be paid from THOT net asset balances. FY 2015 Report: THOT s Fiscal Year 2015 unaudited end of year Financial Position is included as Attachment One on page five. Fiscal Year 2015 unaudited Statement of Activities - Actual vs. Budgeted is included as Attachment Two on pages six and seven. THOT s final FY 2015 expenditures were $842,049 compared to a budgeted amount of $844,843. THOT s FY 2015 budgeted loss was ($73,086) including the one time expenditures noted above. Excluding FY 2016 membership dues received in FY 2015, THOT s actual position at the end of FY 2015 was ($70,680). In effect, THOT underspent the FY 2015 budget expenditures by $2,406. FY 2015 variances: The actual to budget comparisons are within normal ranges for all budget categories with the exception of Technology and Communications. With approval from the Treasurer and Chair, THOT purchased two mobile computers (surface pros) for mobile access and a new computer to replace the office manager s seven year old desktop. Notable differences within budget categories in actual vs. budget dollar items are as follows: Rent costs exceeded budgeted amounts by $4,600 or 11%. With rents in downtown Austin increasing, rents for the fiscal year 2016 will increase by 10 percent from $45,000 per year to $50,000 per year. While the total for general and administrative expenses were $1,000 or 2.4% under budget, meals and Member Seminars and meetings were higher than budgeted due to the additional legislative briefings held this year including the December 2014 Breakfast briefing

2 2 P a g e and February 2015 ice cream briefing at the Capitol. Also, THOT has received no sponsorship income in the current year although $3,000 was budgeted. Financial services expenditures were $3,000 less than budgeted. Not all invoices for FY 2015 work have been received. In addition, with the Treasurer s approval, THOT Treasurer s reports were created by THOT staff from the online accounting system with the understanding that the annual external audit would provide the definitive annual report. This resulted in saving related to budgeted quarterly CPA reports. FY 2016 Report: FY 2016 Year to Report Background & Discussion THOT s FY 2015 Statement of Financial Position is included as Attachment Three on page eight of this report. THOT operates on a cash rather than accrual basis. The Statement of Financial Position for THOT s Fiscal Year (FY) 2016 as of November 24, 2015 shows total net assets of $1,142,503. Assets at the beginning of THOT s fiscal year tend to be high reflecting receipt of membership dues (also seen in the Frost Brokerage Account line item). Member Dues Member dues have been received for all but two members. One member will be submitting payment. Citizen s Medical Center in Victoria has indicated that it will not be renewing its membership at this time. Citizen s has had three CEOs in the past two years and recently selected a CEO after the previous CEO resigned seven months ago in April, Citizens indicated that it has no GME program. Citizens also does not qualify for DSH payments. Citizen s annual dues are $39,620. The approved budget has not been altered to reflect this change. THOT staff will work with the Chair, Treasurer and Executive Committee on related budget changes and bring a recommendation to the March 2016 THOT Board meeting. Budget vs. Actual Attachment Four found on pages nine through ten, shows Budgeted to Actual expenditures as of November 23, The actual revenues show the two outstanding member dues receipts. We anticipate receipt of all but $39,620 related to Citizens. The Statement of Activities Budget vs. Actual shows THOT s FY 2016 to date expenditures at $74,907 or 10 percent of the FY 2016 Budget at roughly 7 weeks into the budget. For expenses paid at the beginning of the month (such as rent); actual should be about 14% of budgeted. For expenses paid at the end of the month (such as salary), expenses should be about 8% of budgeted. As a reminder, monthly contract costs for one vendor were restructured to a reduced retainer off session, with an option for hourly costs to be paid up to the previous year s full retainer amount. Available budgeted but unspent funds will be spent based on actual utilization.

3 3 P a g e Notable 2016 year to date variances include: Conference calls at 35% of the budget. The budget anticipated lower off-session volume than experienced (in general and with 340B Omnibus and waiver calls). At the current pace, actual will exceed budgeted by $2,000. Internet phone and cable at 24%. This item should have been budgeted at $5,800 rather than $4,800 annual. At the current pace, actual expenditures will exceed budgeted expenditures by $1,000. Web Services at 77% of budget: this is for web hosting and an annual domain name fee, so no additional costs should be incurred. Member Seminars and Meetings at 60%. This reflects partial costs for THOT s annual Legal Seminar held in October. Total costs for the October 2015 seminar were $5,551 with $3,056 of those costs paid in FY 2016 and the remainder paid in FY Member attendance fees for the seminar totaled $2,295 with some received in fiscal 2015 and some in FY Net seminar costs (accrual basis) to THOT were $3,256. THOT Contracts Contracts with vendors that are in place for FY 2016: Blackridge; Suehs; Dockal; Mercer. THOT will seek a contract continuation for comparative hospital analyses as have been performed in the past. Attachment Five on age 11 includes a table identifying current and proposed FY 2016 contracts and history. Brokerage Account Status THOT has $752,142 in Brokerage accounts. The table below details active CDs on November 13, CD purchased from CD Amount Estimated Mkt Value Settlement Maturity Term Interest at Term Goldman Sachs $150,000 $150,036 1/28/15 1/28/ months 0.40% Safra $200,000 $200,102 10/15/ /14/16 12 months Santander $200,000 $200,000 10/28/2015 4/28/ months 0.60% 0.40%

4 4 P a g e CD purchased from CD Amount Estimated Mkt Value Settlement Maturity Term Interest at Term BMO Harris Bnk Chicago Total CD accounts $202,000 $202,004 11/12/ /10/ months $752,000 $752, % Nov. 13, 2015 Cash Account at Frost from interest: $ Bank Balances: Current bank balances in addition to brokerage accounts are as follows. As of August November 13, 2016 balances were: Frost (all accounts): $165, Chase (all accounts):$182, Total: $347, Recommended Board Actions: 1. Approve 2015 Treasurer s report including FY 2015 Year End Report (unaudited) and FY 2016 year to date report. Respectfully submitted, Patricia Young Brown THOT Treasurer Attachments Executive Committee Report Attachment 1: FY 2015 End of Year Statement of Financial Position. Attachment 2: FY 2015 End of Year Statement of Activities Budget vs Actual. Attachment 3: FY 2016 Year to Statement of Financial Position. Attachment 4: FY 2016 Year to Activities Budget vs. Actual. Attachment 5: THOT Contracts.

5 5 P a g e Attachment One: Fiscal Year 2015 Unaudited Statement of Financial Position Fiscal Year to Fiscal Prior Year to 09/30/ /30/2014 Current Year Balance Prior Year Difference Assets Chase Checking x2358 $ 257, $ 140, $ 117, Frost Bank MM , , (18,005.40) Frost Brokerage , , (198,020.15) Frost Checking , , , Money Market , , Payroll Account , , , Accounts Receivable, Net $ 424, $ 408, $ 16, Total Assets $ 1,298, $ 1,366, $ (67,846.67) Liabilities and Net Assets Liabilities Deferred Revenue $ 765, $ 765, $ 0.00 Other Liabilities 2, , Total Liabilities $ 768, $ 765, $ 2, Net Assets 529, , (70,680.01) Total Liabilities and Net Assets $ 1,298, $ 1,366, $ (67,846.67)

6 6 P a g e Attachment Two: 2015 End of Year Unaudited Statement of Activities Actual to Budgeted Operating Revenue Year To Year Ending 09/30/ Budget 09/30/2015 Actual Budget Remaining Budget % Budget Available Dues Income $ 765, $ 765, $ Sponsorship Income , , (100.00) Interest Income 1, , (522.96) Seminar Fees 3, , (1,925.00) Unrealized Gain/Loss (164.00) 0.00 Total Revenue $ 771, $ 771, $ (0.05) Expenditures Consulting Total Consulting 298, , , Personnel Expenses Total Personnel Expenses 419, , (4,333.88) (1.04) Office Expense Rent 45, , (4,602.37) (11.22) Copier Lease 2, , Office Supplies 1, , Postage (102.34) (204.68) Office Furnishings , , Total Office Expense 50, , (2,043.23) (4.23) Technology and Communications Technology, Software & Hardware 6, (6,060.62) 0.00 Conference Calls 2, , , Internet Phone & Cable 4, , Computer Maintenance (IT Support) 2, , Web Services Total Technology and Communications 15, , (3,711.89) (30.90)

7 7 P a g e Financial Services Actual Budgeted Remaining % Remaining Bank Fees Payroll Service Fees 4, , (1,038.34) (27.68) Audit & Tax Services 5, , (200.00) (4.00) Accounting Services 7, , , Accounting Fee Setup Total Financial Services 17, , , General and Administrative Expenses Board Meetings 19, , (1,252.53) (6.95) Staff Travel & Hotel 1, , , Staff Development 1, , , Meals-General (431.16) (86.23) Liability Insurance (660.00) 0.00 Corporate Liability Insurance D & O 3, , Member Seminars & Meetings 10, , (5,607.18) (112.14) Property Taxes Gifts , Subscriptions & Books & Telicon (210.58) (42.11) Registration Fees 1, , (557.26) (55.72) Parking (148.22) (74.11) Contingency , , Total General and Administrative Expenses 40, , , Total Expenditures 842, , , Change In Net Assets (70,680.01) (73,086.00) (2,405.99)

8 8 P a g e Attachment Three: 2016 Year to Statement of Financial Position Reporting Book: CASH As of : 11/24/2015 Assets Fiscal Year to Fiscal Prior Year to 11/24/ /24/2014 Current Year Balance Prior Year Difference Current Assets Chase Checking x2358 $ 119, $ 154, $ (34,264.84) Frost Bank MM , , , Frost Brokerage , , , Frost Checking , , (195,103.00) Money Market , , , Payroll Account , , (20,941.18) Total Assets $ 1,145, $ 1,219, $ (73,880.54) Liabilities and Net Assets Liabilities Other Short-term Liabilities 2, , Total Short-term Liabilities $ 2, $ 0.00 $ 2, Total Liabilities 2, , Net Assets 1,142, ,219, (76,531.80) Total Liabilities and Net Assets $ 1,145, $ 1,219, $ (73,880.54) Created on: 11/24/ :43 AM

9 9 P a g e Attachment Four 2016 Statement of Activities Actual vs. Budget Reporting Book: CASH As of : 11/23/2015 Operating Revenue Year To Year Ending 11/23/ Budget 09/30/2016 Actual 2016 Budget Remaining Budget % Budget Available Dues Income $ 684, $ 765, $ 80, (10.56) Sponsorship Income , , (100.00) Interest Income , , (100.00) Seminar Fees 1, , , (57.50) Total Revenue $ 685, $ 771, $ 85, (11.11) Expenditures Consulting Total Consulting 35, , , Personnel Expenses Total Personnel Expenses 29, , , Office Expense Rent 4, , , Copier Lease , , Office Supplies , , Postage Office Furnishings , , Total Office Expense 4, , , Technology and Communications Technology, Software & Hardware , , Conference Calls , Internet Phone & Cable , , New System Solution Computer Maintentance (IT Support) , , Web Services Total Technology and Communications 1, , , Financial Services Payroll Service Fees , , Audit & Tax Services , , Accounting Services , , Total Financial Services , ,

10 10 P a g e Actual 2016 Budget Remaining Budget % remaining Board Meetings , , Speaker & Travel Fees , , Staff Travel & Hotel , , Staff Development , , Meals-General , Legislative and related meetings , , Liability Insurance D & O , , Member Seminars & Meetings 3, , , Property Taxes Gifts Subscriptions & Books & Telicon Parking Contingency , , Total General and Administrative Expenses 3, , , Total Expenditures 74, , , Change In Net Assets 610, (600,358.63) 394,007.75

11 11 P a g e Attachment Five: THOT Contracts FY 2016 CONTRACTOR START DATE AMENDMENT or RENEWAL DATE END DATE PAYMENT BASIS Blackridge August 2014 July Monthly Tom Suehs* February 2013 July 2013/October 2014 September 2014 Monthly October, 2014 December 2014 Monthly January 2015 September 2015 Monthly October 2015 September 2016 Monthly Dockal Consulting* July 2013 March 2014 September 2015 Monthly October 2014 September 2015 Monthly October 2015 September 2016 Monthly October 2015 September 2016 Mercer March 2013 Hourly July 2014 September 2015 Hourly April 2014 September 2015 Hourly July 2014 September 2016 Hourly Ann Henry* January 2014 September 2014 Hourly by project October 2014 September 2015 Hourly October 2015 September 2016 Hourly Wood, Johnson, Heath September 2014 n/a Created on 11/13/2015 Monthly + Qtrly for quarterly financials