Finance Committee Meeting

Transcription

1 Children s Services Council Finance Committee Meeting Thursday, December 3, 2015, 4:00 p.m. AGENDA / MINUTES Welcome and introductions Finance Committee Members in Attendance: Tom Lynch, CSC Finance Committee Chair Thomas Bean, CSC Finance Committee Vice chair Greg Langowski, Chair Children s Services Council Tom Weber, Vice Chair Children s Services Council Paul Dumar, Director Financial Services, Solid Waste Authority John Marino, Volunteer, Finance Committee CSC Staff: Lisa Williams Taylor, Ph.D., CEO Bill Cosgrove, CFO Jen Diehl, Controller Tom Sheehan, General Counsel Elsa Sanchez, Senior Executive Assistant Agenda Items: 1 Minutes of September 24, 2015 Meeting 2 September 30, 2015 Financial Statements 3 Investment Update 4 Other 5 Adjournment 1

2 Children s Services Council Finance Committee Meeting Thursday, September 24, :45 pm 5:15 pm CSC Executive Conference Room AGENDA/MINUTES Welcome and Introductions Finance Committee Members: Tom Lynch, CSC Finance Committee Chair, present via telephone Thomas Bean, CSC Finance Committee Vice Chair, present Greg Langowski, Chair Children s Services Council, present Tom Weber, Vice Chair Children s Services Council, present Paul Dumar, Director of Financial Services, Solid Waste Authority, present John Marino, Volunteer, Finance Committee, not present CSC Staff: Lisa Williams Taylor PhD, CEO, present Bill Cosgrove, CFO, present Jen Diehl, Controller, present Tom Sheehan, General Counsel, present Elsa Sanchez, Senior Executive Assistant, present Agenda Items: 1 Minutes August 24, 2015 Finance Committee Meeting, Approved unanimously 2 August 31, 2015 Financial Statements, Approved unanimously 3 Short Term Disability Cost Analysis, Discussed with no recommended changes to existing practices 4 Other Next Meeting: December 3rd 4:00 4:15 pm DM #

3 AGENDA ITEM: 2 TITLE: Financial Statements September 30, 2015 (Unaudited) STAFF: Jennifer Diehl, Controller, Children s Services Council of Palm Beach County SUMMARY: The financial statements are presented reflecting the estimated operating results of the General Fund and Special Revenue Fund (Prevention Partnerships for Children, Inc.) for the year ended September 30, The audit of the Council for the fiscal year ended September 30, 2015 has not been completed and the applicable figures represent unaudited numbers. Balance Sheet: As of September 30, 2015 the Council had $59,369,660 in cash and investments. Of this balance, $18,000,000, net of unamortized discounts and premiums, was held in federal government bonds, $29,448,555 was held in a public funds money market account, and $5,971,290 was held in the Morgan Stanley Institutional Liquidity Prime Advisory Fund #8341. The remainder of the funds was on deposit in the Council s operating accounts. The Capital Assets and the Investment in Capital Assets for $20,832,932 represent the costs associated with furniture and fixtures, equipment, and building costs. Statement of Revenue and Expenses: The budgeted expenditure rate at September 30, 2015 is 100%. The estimated expenditure rate for Children s Programs at September 30, 2015 is 92.4%. RECOMMENDATION: I recommend the Finance Committee propose that the Council accept the September 30, 2015 Financial Statements as submitted. 3

4 CHILDREN'S SERVICES COUNCIL OF PALM BEACH COUNTY BALANCE SHEET (Unaudited) September 30, 2015 General Fund Special Revenue Fund Total All Funds Assets Prevention Partnership for Children, Inc. Cash & Investments $ 59,356,827 $ 12,833 $ 59,369,660 Accounts Receivable 2,145,055-2,145,055 Deposits 89,396-89,396 Prepaid Expenses 365, ,981 Due From - General Fund - 336, ,973 Capital Assets 20,832,932-20,832,932 Total Assets 82,790, ,806 83,139,997 Liabilities & Fund Balance Liabilities Allocations to Children's Services Programs 7,839, ,806 8,189,184 Deferred Revenue 332, ,190 Accounts Payable 615, ,267 Due to - Special Revenue Fund 336, ,973 Total Liabilities 9,123, ,806 9,473,614 Fund Balance Nonspendable: Prepaid Expenses 365, ,981 Assigned: Reserved in accordance with fund balance policy 35,959,774-35,959,774 Unassigned: 16,507,696-16,507,696 Total Fund Balance 52,833,451-52,833,451 Investment in Capital Assets 20,832,932-20,832,932 Total Liabilities and Fund Balance $ 82,790,191 $ 349,806 $ 83,139,997 4

5 CHILDREN'S SERVICES COUNCIL OF PALM BEACH COUNTY STATEMENT OF REVENUE AND EXPENSES CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 2015 General Fund Special Revenue Fund Total Prevention Partnership for Children, Inc. Approved Budget Actual Approved Budget Actual Approved Budget Actual 2014/2015 Through Through Variance % 2014/2015 Through Through Variance % 2014/2015 Through Through Variance % Budget 9/30/2015 9/30/2015 YTD YTD Budget 9/30/2015 9/30/2015 YTD YTD Budget 9/30/2015 9/30/2015 YTD YTD Revenues Ad Valorem Property Taxes $ 94,363,181 $ 90,722,502 $ 90,722,502 $ % $ - $ - $ - $ % $ 94,363,181 $ 90,722,502 $ 90,722,502 $ % Interest Income 150, , ,515 42, % % 150, , ,515 42, % Unrealized Gain or Loss ,545 34, % Department of Health/Agency for Health Care Administration 3,053,295 3,053,295 3,468, , % % 3,053,295 3,053,295 3,468, , % Palm Beach County Head Start Match 4,100,000 4,100,000 4,100, % % 4,100,000 4,100,000 4,100, % Income from Tenants 70,000 70,000 74,938 4, % % 70,000 70,000 74,938 4, % Other Income 100, , , , % % 100, , , , % Cash Carryforward 20,307, % % 20,307, % Total Revenues 122,144,311 98,195,797 98,876, , % % 122,144,311 98,195,797 98,876, , % Expenditures Administrative Expenditures 5,236,854 5,236,854 4,643, , % ,913 (84,913) % 5,236,854 5,236,854 4,728, , % Capital Expenditures 400, ,000 76, , % % 400, ,000 76, , % Contingency 500, % % 500, % Non-Operating Expenses 2,653,643 2,653,643 1,670, , % % 2,653,643 2,653,643 1,670, , % Reserve for Uncollectible Taxes 4,819,391 4,819,391-4,819, % % 4,819,391 4,819,391-4,819, % Children's Services Programs: Direct Services: Funded Programs & Initiatives 96,623,606 96,623,606 89,448,807 7,174, % 2,278,398 2,278,398 2,099, , % 98,902,004 98,902,004 91,548,237 7,353, % Support Services: Programmatic Support 9,632,419 9,632,419 8,739, , % % 9,632,419 9,632,419 8,739, , % Total Children's Programs 106,256, ,256,025 98,188,717 8,067, % 2,278,398 2,278,398 2,099, , % 108,534, ,534, ,288,147 8,246, % Total Expenses 119,865, ,365, ,580,668 14,785, % 2,278,398 2,278,398 2,184,343 94, % 122,144, ,644, ,765,011 14,879, % Excess Revenues over Expenses (5,704,236) (2,184,343) (7,888,579) Other Financing Sources (Uses) Transfers in (out) (2,278,398) (2,278,398) (2,184,343) (94,055) 95.87% 2,278,398 2,278,398 2,184,343 94, % % Net Changes in Fund Balances (7,888,579) - (7,888,579) Fund Balances October 1, ,722,030-60,722,030 September 30, 2015 $ 52,833,451 $ - $ 52,833,451 5

6 CHILDREN S SERVICES COUNCIL FINANCE COMMITTEE AGENDA ITEM December 3, 2015 AGENDA ITEM: 3 TITLE: CSC STAFF: Investment update Bill Cosgrove, Chief Financial Officer SUMMARY: As of September 30, 2015 the Council s excess cash balances were invested as shown on the scheduled included with this agenda item. All of the investments are in conformity with CSC s investment policy both in type and percentage of portfolio. The $29,448,555 balance in the Public Funds Money Market account reflects $21 million in maturities that occurred on September 17 and were left in the money market account earning.45 bps to cover the Council s cash flow needs for October and November. The balance in this account will begin increasing as the 15/16 tax revenue flows into it. CSC s investment advisor, Davidson Fixed Income Management, has offered no other short term strategy that currently will provide a better return than the money market account provides. The $5,971,290 in the Morgan Stanley Prime account was the remainder of a $24 million dollar initial transfer to the custody bank in accordance with the plan to place $36 million of the Council s core funds in longer term investments. The $5.9 million was awaiting further action as the market and interest rates improved during the first part of October at which point it was invested in a $6,000,000 par value Federal Nat l Mortgage Association note. The difference between the par value and the original costs represents premiums paid for the agency notes as well as accrued interest. It has been necessary to purchase agency notes at a premium in order to obtain a better long term yield. The premium when amortized will offset the interest being paid on the notes and will still result in a better yield than CSC s previous investment strategy. The remaining $12 million of the core funds will be invested based on the advice of Davidson as interest rates begin to improve. RECOMMENDATION: This item is presented for information purposes only. DM #

7 Children's Services Council of Palm Beach County Investment Details September 30,2015 Cash and Equivalents Trade Maturity Days to Par Original Coupon Yield to Pct Assets Security Description Date Date Maturity Value Cost Rate Maturity Par Value FCB Public Funds Money Market n/a 29,448,555 29,448, Custody Bank Morgan Stanley Prime n/a 5,971,290 5,971, Total Cash and Equivalents 35,419,845 35,419, Custody Bank Agencies Federal Farm Credit Banks 08/25/15 07/03/ ,000,000 5,995, Federal Home Loan Banks 08/27/15 08/14/ ,000,000 6,016, Federal Nat'l Mtge Association 09/04/15 02/27/ ,000,000 6,013, Total Agencies 18,000,000 18,024, Total Portfolio 53,419,845 53,444, DM#