Meeting Call-In Number: 1(312) Access Code: Call to Order. Laurie Sallarulo, Board Chair II.

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1 Early Learning Coalition of Broward County, Inc. Executive Committee Meeting Agenda 6301 NW 5 th Way, Suite 3400, Fort Lauderdale, FL September 27, :00pm Meeting Call-In Number: 1(312) Access Code: Members are reminded of conflict of interest provisions. In declaring a conflict, please refrain from voting or discussion and declare the following information: 1) Your name and position on the Board, 2) The nature of the conflict and 3) Who will gain or lose as a result of the conflict. Please also fill out form 8B prior to the meeting. I. Call to Order Laurie Sallarulo, Board Chair II. Roll Call Irene Ramos, Executive Assistant III. Chair Report a. Welcome Angela Iudica Board Member, Head Start Director at Broward County School Board b. Welcome Howard Bakalar as Chief Operations Officer Laurie Sallarulo, Board Chair IV. Consent Agenda a. Approve Finance/Executive Committee meeting minutes from August 23, 2017 Tab 1 Pg 2 Laura Sallarulo, Board Chair V. Regular Business a. Transition Update b. Post Irma Hurricane Report c. RTCO Verbal Update Tab 2 Pg 7 Tab 3 Pg 9 Renee Jaffe, CEO VI. Finance Committee Report a. Preliminary FY17 Results b. July 2017 Interim Financial Statements & Utilization c. Cash Disbursements $1,000-$25,000 August 2017 Tab 4 Pg 10 Tab 5 Pg 17 Tab 6 Pg 25 Renee Podolsky, Chair, Finance Committee VII. Unfinished Business New Business Matters from the Board Matters from the CEO Public Comment Next Meeting: October 25, 2017 Adjourn Please Note: Agenda subject to revisions and additions per the discretion of the Chair of the Coalition. Notification will be sent of any such revisions or additions. Members of the Public: Please sign up at the entry desk for public comments to be made on particular agenda items no later than five minutes after the Coalition meeting has been called to order. PAGE 1

2 Early Learning Coalition of Broward County Finance/ Executive Committee Meeting Minutes August 23, :00am 6301 NW 5 th Way, Suite 3400, Fort Lauderdale, FL TAB 1 Members in Attendance: Members Absent: Staff in Attendance: Others in Attendance: Laurie Sallarulo, Executive Chair; Renee Podolsky, Finance Chair; Barrington Russell; Cindy Arenberg Seltzer; Deborah Hosey; Ellie Schrot; Michael Asseff; Nicholas Kaniaris. Jeffrey Dwyer Renee Jaffe- CEO; Christine Klima, CAO; Howard Bakalar, Interim COO; Amy Ungor; Doreen Moskowitz; Hubert Cesar; Irene Ramos; Janice Carter; Judy Samuels; Karen Swarzbaugh; Mabel Ramirez; Ros DesRoches; Sandra Paul Jacob Jackson, General Counsel; Twan Russell, Richard Campillo, Cristy Kozla, Michele Rosiere and Natasha Markman, BRHPC; Sheila Smith- 211 Broward; Julia Musella, Stacy Angier and Wendy Siegel, Child Care Providers Item Action/Discussion Follow-Up Welcome & Call to Order Laurie Sallarulo, Executive Committee Chair, called the joint meeting of the Executive and Finance Committees to order at 9:20 am. A Roll Call was conducted and a quorum was established. Michael Asseff joined the meeting at 9:25 am. Barrington Russell joined the meeting at 11:30. CEO Report: Items for inclusion in the CEO Report were reviewed and discussed. Page 1 of 5 PAGE 2

3 Approve Consent Agenda: Executive Committee meeting minutes of May 31, 2017 Finance Committee meeting minutes of May 31, 2017 Finance Committee Report: ELC Sub-Recipient System A Motion to Approve the Consent Agenda, which included the Minutes for the May Executive Committee and the May Finance Committee, was made by Cindy Arenberg Seltzer, seconded by Michael Asseff and unanimously approved During the summer, ELC leadership conducted a comprehensive review of its own organization s business operations simultaneously with a regularly scheduled annual fiscal monitoring review of its sub-recipients. As detailed in the attached supporting documentation for the Finance Committee, several compliance issues were identified, including $1.7 million in budgeted administrative expenses that exceeded contract limits and diverted funds otherwise designated for quality or child care services. Several strategies and contract options to address this significant problem were reviewed in detail and it was agreed that ELC s current sub recipient business model is unsustainable. Public Comment was heard; a BHRPC letter was read into the record, committing its support for a smooth transition of payments, eligibility and enrollment functions back to the ELC. Support and collaboration was also provided by 211 s CEO to analyze CCRR functions for FY 17/18. Committee members discussed the importance of an Ad Hoc Transition Committee to be identified at the September Board meeting to ensure a seamless transition of services. A Motion was made by Cindy Arenberg Seltzer, Finance Committee, to direct staff to develop a full budget to transition payments, eligibility and enrollment functions to ELC and achieve compliance with OEL administrative requirements for presentation to the Full Board in September, without prior review by the Finance Committee. The motion was seconded by Nicholas Kaniaris and unanimously approved. A Motion was made by Cindy Arenberg Seltzer, Executive Committee, to recommend to the full Board approval of a six month transitional contract with BRHPC for the period of October 1, 2017 through March 31, The motion was seconded by Renee Podolsky and unanimously approved, with Laurie Sallarulo abstaining. A Motion was made by Cindy Arenberg Seltzer, Executive Committee, to renew the 211 contract for the period of October through September 30, 2018 for Child Care Information and Referral, with a revised Scope of Work and reduced budget. The motion was seconded by Michael Asseff and unanimously approved. Page 2 of 5 PAGE 3

4 Public Comment Natasha Markman, representing BRHPC, read a letter acknowledging their gratitude to ELC Board for the opportunity given to BRHPC in providing School Readiness and VPK assistance since August 24, 2015 stating: During that time BRHPC has implemented, created and standardized the way eligibility is assessed throughout the community. For 35 years BRHPC has prided itself on dedication, innovation and collaboration with partners in the community in delivering services above and beyond standards and requirements of funders. A listing of specific partners and agencies and their commendations of the process of services delivered by BRHPC was mentioned. The letter also stated that BRHPC has decided not to renew the SR/VPK contract effective September 30, BRHPC will sign a contract to transition services to the ELC effective January 1, 2018 and will assist the ELC through March BRHPC stands committed to the children and families in Broward County and will offer resources, technical support and office space during this transition. BRHPC thanked the ELC Board of Directors and say they are proud and grateful to have served the children and families of Broward and the opportunity to create an efficient family friendly system for the community. Stacy Angier, Abundant Life Christian Academy, spoke as a former Faith-Based Provider Board member stating concerns about how the findings from ELC s business model could have occurred without OEL catching it. CAO Christine Klima explained that while OEL conducts fiscal monitoring reviews of ELC, it is ELC s responsibility to monitor sub recipient activity. ELC gave incorrect guidance to its sub recipients. Julia Musella spoke as a former Provider Board member and expressed her concern about how the transition of services would be communicated to the community. CEO Renee Jaffee indicated that a transition team will be formed to assist throughout the transition process, consisting of Board members, sub-recipients and providers and welcomed her participation. ELC addressed a question by Wendi Siegel, clarifying the differences between direct service costs and administrative costs. Committee member Twan Russell expressed appreciation for the integrity that ELC staff has taken; working diligently to identify issues, accept responsibility and develop strategies to correct deficiencies and shortfalls. The ELC team has strongly considered the effect on all parties involved with this transition and their humanistic approach to system and compliance improvements. There is no doubt that ELC will go on to provide better services to the community. Sheila Smith, 211 Broward, provided an update on new technology advancements that will include text and Chat with families as well as screen sharing service to better assist with on-line Page 3 of 5 PAGE 4

5 applications. She thanked the Board for taking into account their call center support and pledged flexibility and data analysis to enhance CCRR services. Finance and Utilization Report Reconvene Executive Committee Meeting Strategic Planning Michele Rosiere, BRHPC clarified that while BRHPC has declined renewal of the current contract with ELC, they had previously submitted a revised budget the reduced administrative costs by $800,000. The Finance and Utilization Reports were reviewed and discussed. The Finance Committee meeting adjourned at 11:35am Executive Committee meeting reconvened at 12:14pm and was called to order by Laurie Sallarulo Chair. Roll Call was done and a quorum was established. As recommended by the Executive Committee, ELC staff conducted a comprehensive review of the Plan. Much has changed in the early care and education system of care and in the organizational capacity of the ELC. Most of the goals and objectives in that five year plan have been completed, are in need of revision or are now obsolete. After review of a status report, by Goal and by Objective, members of the combined Executive and Finance Committees have recommended that this Plan be closed. A draft one-year Goals and Objectives plan for was also reviewed by the Executive Committee. It was recommended that the full Board consider hiring an external consultant to engage the Board in the development of a new Strategic Plan. Additionally, it was also recommended that an Ad Hoc Strategic Plan committee be convened at the September 7 th Board meeting which would work closely with the external consultant on plan development for consideration by the full Board at a time to be determined. A Motion was made by Cindy Arenberg Seltzer to recommend to the board the creation of an Ad Hoc Committee to assist with the development of a new Strategic Plan. Motion seconded by Ellie Schrot and unanimously approved. A Motion was made by Cindy Arenberg Seltzer to recommend to the Board the creation of an Ad Hoc Transition Committee. Motion seconded by Michael Asseff and unanimously approved. New Business Page 4 of 5 PAGE 5

6 Matters from the Chair Matters from both Committees Next Meeting Date September 27, 2017 Adjourn Motion to adjourn and meeting adjourned at 1:31 pm. These minutes contain the action items for the joint meeting of the Executive Committee and the Finance Committee of the Early Learning Coalition. They do not include all the Committee s discussions or comments on each matter or issue raised during the meeting. A tape recording of the meeting is held in the Coalition office. Corrections from the Committee will be taken prior to approval at the next meeting. Page 5 of 5 PAGE 6

7 TAB 2 For Executive Committee September 27, 2017 Subject: Recommended Action(s): Financial Impact: Eligibility and Payment Services Transition Update FYI There have been many notable achievements and substantial progress on the expedited transition of Eligibility and Payment Services since the notification on September 13 th from BRHPC that services would end on September 30 th. Critical activities are summarized below. Acknowledging the outstanding support from other Coalitions statewide, as well as OEL who are sending staff on Monday, October 2nd, which marks the first day ELC Broward begins providing Eligibility and Payment Services In house. RECRUITMENT STATUS 1) On Saturday, September 23 rd, the ELC Broward conducted a Job Fair for BRHPC Eligibility, Quality Assurance and Payments staff. More than 47 applications were submitted prior to the event, and 67 individuals showed up to be interviewed. The group was made up of both current BRHPC staff and BRHPC staff who had previously left their employment but were interested in returning to work for the ELC. From this successful event in support of displaced staff, 47 job offers were made and accepted. Special thanks to ELC Miami-Dade for providing logistical guidance and assistance prior to the Job Fair! 2) ELC s Benefits Carrier created a benefits flyer and established an on-line on-boarding system to ensure expedited hiring processes. TRANSITION MANAGEMENT 1) Suwenda Louis, one of ELC Broward s Inclusion Specialists, has agreed to temporarily serve as the Project Manager for the in house services transition to assist with the coordination of logistics through the transition. 2) Additional space in the current ELC building has been secured as temporary swing space and temporary furniture, phones and equipment ordered. 3) Based on an ELC analysis of current and projected re-determinations, BRHPC will process those through the end of September and there will be a 2-3 week deferral of re-determinations for late September/mid-October, as approved by OEL. 4) Without BRHPC consent for use of the Broward Re-Determination and Referral Portals, Portals currently utilized by other Coalitions are being enhanced and updated for ELC Broward PAGE 7

8 staff usage effective October 1 st. A Broward-specific URL has been set up to replace the current URL that links to the current Portals. The new URL (family.elcbroward.org) will be provided to all parents and the appropriate re-routing will be completed in advance. 5) Bluejean Ware will provide back-up system administration effective immediately and for 3 months following the 10/1/17 transition. 6) Bluejeans Ware will provide all data from the current portals effective October 1 st. 7) IT Teams from Miami Dade and Palm Beach as well as a staff member from Bluejean Ware are scheduled to be on site to assist with the re-acquisition of IT property from BRHPC on September 30 th and on-site installation of equipment (computers, phones etc.) at ELC, so systems are operational on Monday, October 2 nd. 8) Additional Eligibility and Payments staff from other ELCs and OEL have been secured to be on-site to assist with the workload and to provide guidance as needed during October 2 nd to October 6 th. 9) Consistent messaging and a communications plan has been implemented with 211, providers, parents, and other community partners including those previously with agreements with BRHPC. 10) ELC Broward held a Transition Information Session for ELC providers on Tuesday, September 26, 2017 where details regarding the transition plan were provided and questions answered. Approximately 100 providers were in attendance and the information was well received. 11) A provider and parent communications plan is in effect utilizing various forms of communication. OUTSOURCED ELIGIBILITY PARTNERS 1) Expedited eligibility and services to priority/mandatory populations is critical and all partners have been apprised of the transition and ELC has committed to continue services without interruption throughout the transition period. 2) On-site visits to confirm necessary space and IT equipment for out-posted sites has been completed. MATCH PARTNERS 1) The United Way has agreed to transfer their $425,000 Match commitment for FY 18 to ELC after October 1 st. 2) The CSC has approved transfer of $2 million in funding from BRHPC to the ELC effective October 1 st for vulnerable populations and residents. 3) Meetings with cities who have previously approved or pending Match agreements for School Readiness with BRHPC will be advised that these commitments should be re-assigned to the ELC after October 1 st. Recommended Action(s): Financial Impact: FYI PAGE 8

9 TAB 3 For Executive Committee Meeting September 27, 2017 Subject: Recommended Action(s): Financial Impact: Post-Hurricane Irma Update FYI Due to the impending impact of a significant Category 3 hurricane, the regularly scheduled Board meeting on September 7 th was cancelled. ELC staff immediately implemented the just-revised CONTINUITY OF OPERATIONS PLAN (COOP) emergency disaster plan, which will be brought to the next scheduled Governance meeting for approval Provider payments were of the utmost priority, given that post-storm conditions were unknown and operations could have been potentially disrupted for extended periods of time. In a coordinated effort with BRHPC, all providers who were able to submit invoices by Friday, September 8th (over 95%) were paid prior to the storm on September 11 th, one week earlier than under normal operations. Providers who submitted their invoices after September 8 th were paid on September 21 st, rather than delaying payments until the following payment cycle. Other notable achievements supported by the successful implementation of the COOP emergency disaster plan include: Early notification for providers and parents Office closing and related matters performed in alignment with Broward Public Schools Preparation to activate a pre-defined alternative operations location, as necessary Frequent communications with staff, providers and parents regarding available pre/poststorm resources Daily updates to staff and providers on storm-related and agency matters Staff and providers are all commended for their attention to detail, utmost concern for their constituents and community, and excellent conduct under extreme circumstances! Recommended Action(s): Financial Impact: FYI PAGE 9

10 TAB 4 For Executive Committee Meeting Presented at Finance Committee Meeting September 27, 2017 Subject: Recommended Action: Financial Impact: Preliminary, Unaudited FY Results. For information only Background Information: Preliminary financial results for the fiscal year ending June 30, 2017 are attached for your information. The format and level of detail in the presentation of the Statement of Activities and Budget to Actual highlights corrections to previously unseen administrative cost classification errors and shows the distribution of the issues across ELC s multi-agency subrecipient system. These statements are not yet audited and certain year end journal entries remain pending due to the accelerated timeline currently facing ELC for taking eligibility and payment services in-house effective October 1, In light of the challenges of transition schedule and the critical need for ELC to prioritize upcoming provider payment cycles, ELC s external auditor SB and Company made the recommendation that their analysis and field work be postponed until the week of November 27, Current Status: Key components of ELC s overall preliminary financial results include: Revenues: As of June 30, 2017 revenues earned through program activities by ELC and its subcontractors were on target at 99%. Residual revenues totaling approximately $700K were carried forward into FY18 in accordance with contract rules. Slots and Provider Incentive Pass-through: School Readiness: 100% utilized. Total allocation 3% higher than contract requirement due in part to lower than expected utilization of non-slot dollars across the multi-agency sub-recipient system. PAGE 10

11 Child Care Executive Partnership: 100% utilized, including $500K in additional funds made available by the Office of Early Learning at fiscal year-end. Total allocation 8% higher than contract requirement due to lower than expected utilization of non-slot dollars across the multi-agency sub-recipient system. Voluntary Pre-K: 99% utilized. Program funded each year to exactly match actual need. Children s Services Council: 90% utilized. $322K deferred to first quarter of fiscal year to allow ELC to maximize utilization of the onetime 500K increase in CCEP funding instead. CSC funds play a unique and critical balancing role in ELC s utilization strategy at the end of each fiscal year. Department of Children & Families Entrant: 100% utilized. $1.7K in excess of budget in fiscal year will be recovered through adjustments in the first quarter budget of fiscal year as allowed by contract. Performance Funding Program: 106% utilized. $47K in excess of budget in fiscal year due to September bonus payment revenue received and recognized in fiscal year FY but expensed in FY PFP provider payment amounts are set by OEL. University of Florida Lastinger Center: Overall expenditures are only 12% due to a University of Florida budgeting error where $300K in incentives were over-allocated to Broward that ELC was not permitted to access. The funder determines actual allowable amounts of incentives at its sole discretion. The program was discontinued for FY Program versus administrative expenses by organization: After administrative classification errors noted above were corrected, administrative expenses exceeded the fiscal year budget by more than $1 million or 39%. These cost over-runs were addressed through one-time shifts and journal entries using funding sources with the contract flexibility to allow for coverage. Approximately $500K in under-utilized program funds were reallocated to slots during the final quarter of the fiscal year. Action Requested: Financial Impact:. For Information only PAGE 11

12 Early Learning Coalition of Broward County, Inc. Preliminary Unaudited Financial Statements FISCAL YEAR For The Twelve Months Ended June 30, 2017 Submitted to the September 27, 2017 Finance Committee Meeting PAGE 12

13 Early Learning Coalition of Broward County, Inc. FY Statement of Financial Position As of June 30, 2017 June 30, 2017 June 30, 2016 Assets Cash $ 6,432,920 $ 385,408 Grants Receivable 3,866,933 7,386,821 Accounts Receivable 441, Prepaid Expense 63,388 36,990 Fixed Assets 10,758 10,758 Total Assets $ 10,815,069 $ 7,820,278 Liabilities: Accounts Payable $ 464,585 $ 41,378 Salary & Benefits Payable 61,815 50,495 Compensated Absences 90,484 90,484 Due to BRHPC 8,602,114 6,693,914 Due to 211-Broward 142, ,891 Due to Family Central 661, ,757 Due to NSU 168, ,863 Due to SBBC 190, ,198 Due to Children's Forum 113,505 10,634 Due to Other Agencies 20,464 16,824 Deferred Revenue 15,000 21,238 Total Liabilities $ 10,530,897 $ 7,558,676 Net Assets Unrestricted Total Net Assets 284, , , ,602 Total Liabilities and Net Assets $ 10,815,069 $ 7,820,278 PAGE 13

14 Early Learning Coalition of Broward County, Inc. FY Statement of Activities For The Month Ended June 30, 2017 June 2017 Actual FY 2017 Actual Preliminary Unaudited FY 2016 Actual Revenues OEL School Readiness $ 3,786,295 $ 44,146,063 $ 43,726,485 OEL Child Care Executive Partenership (CCEP) 862,864 3,265,428 2,647,810 OEL Voluntary Pre-K 1,837,124 39,698,322 39,065,527 Children's Services Council 604,988 3,538,894 7,028,509 Department of Children & Families Refugee Grant 360, ,144 86,265 OEL Performance Funding Project 18, ,525 86,975 University of Florida Lastinger Center 11, ,933 44,987 BECE Conference& Miscellaneous Revenue (341) 38,291 80,165 Total Revenues $ 7,481,115 $ 91,902,600 $ 92,766,724 Expenses: Child Care Slots: School Readiness Slots $ 2,961,501 $ 36,268,701 $ 35,476,388 CCEP Slots 663,796 2,890,817 2,647,810 Children's Services Council Slots 519,226 2,962,056 6,467,111 Voluntary Pre-K Slots 1,630,835 38,190,771 37,471,489 DCF Entrant Slots 14, ,181 74,117 Performance Funding Program Incentives 351, ,158 63,194 University of Florida Provider Incentives ,750 44,987 Subtotal Child Care Slots $ 6,141,755 $ 81,354,435 $ 82,245,096 Program Expense: Nova Southeastern University 22, , ,569 Family Central 38, ,610 1,616,816 School Board of Broward County (29,637) 647, ,636 Children's Forum 78, , , Broward (43,669) 464, ,863 Broward Regional Health Planning Council 110,406 2,726,170 2,506,179 Early Learning Coalition of Broward 100,388 1,180, ,815 Subtotal Program Expense $ 277,145 $ 6,884,604 $ 7,248,468 Administrative Expense: Nova Southeastern University 61, , ,435 Family Central 78, , ,333 School Board of Broward County 144, ,698 31,350 Children's Forum 5,106 20,096 14, Broward 133, ,626 30,080 Broward Regional Health Planning Council 386,268 1,145,846 1,025,482 Early Learning Coalition of Broward 251,810 1,823,518 1,752,777 Subtotal Administrative Expense $ 1,060,676 $ 3,640,991 $ 3,263,231 Total Expense $ 7,479,576 $ 91,880,030 $ 92,756,795 Change in net assets $ 1,539 $ 22,570 $ 9,929 Net assets, beginning of year 261, ,673 Net assets, end of the period $ 284,172 $ 261,602 PAGE 14

15 Early Learning Coalition of Broward County, Inc. FY Annual Budget to Actual (Unaudited) For The Period Ended June 30, 2017 FY 2017 FY 2017 Annual Budget Actual 4th Quarter Preliminary Balance % of Budget Reforecast Unaudited Revenues: OEL School Readiness $ 44,582,178 $ 44,146,063 $ 436,115 99% Carried Forward to FY18 OEL Child Care Executive Partenership (CCEP) 2,692,950 3,265,428 (572,478) 121% Add'l funding at year end OEL Voluntary Pre-K 40,306,029 39,698, ,707 98% Children's Services Council 3,858,656 3,538, ,762 92% Balance to be carried fwd Department of Children & Families Refugee Grant 189, ,144 (1,896) 101% OEL Performance Funding Project 819, ,525 (89,712) 111% University of Florida Lastinger Center 392, , ,330 29% $316K pass thru pending BECE Conference& Miscellaneous Revenue 44,986 38,291 6,695 85% Total Revenue $ 92,886,123 $ 91,902,600 $ 983,523 99% Expenses Child Care Slots School Readiness Slots $ 36,312,024 $ 36,268,701 $ 43, % 82% of total, 78% required CCEP Slots 2,315,937 $ 2,890,817 (574,880) 125% 89% of total, 81% required Children's Services Council Slots 3,283,656 2,962, ,600 90% 96% of total, set by actual usage Voluntary Pre-K Slots 38,662,955 38,190, ,184 99% 84% of total, balance carried forward DCF Entrant Slots 162, ,181 (1,721) 101% 86% of total, amount fixed by DCF Performance Funding Program Incentives 789, ,158 (46,945) 106% 92% of total, amount set by OEL University of Florida Provider Incentives 354,063 41, ,313 12% 36% of total, amount set by U of F Total Child Care Slots $ 81,880,308 $ 81,354,435 $ 525,873 99% Program Expense Nova Southeastern University $ 789,405 $ 713,241 $ 76,164 90% Family Central 810, ,610 81,438 90% School Board of Broward County 799, , ,021 81% Children's Forum 418, ,248 (5,848) 101% 211 Broward 540, ,373 75,664 86% Broward Regional Health Planning Council 3,613,910 2,726, ,740 75% Early Learning Coalition of Broward 1,418,281 1,180, ,246 83% Total Program Expense $ 8,390,030 $ 6,884,604 $ 1,505,426 82% $500K re-allocated to slots in 4th Qtr Administrative Expense Nova Southeastern University $ 119,911 $ 165,137 $ (45,226) 138% Family Central 98, ,069 (55,614) 156% School Board of Broward County $ 33,208 $ 170,698 $ (137,490) 514% Children's Forum 20,187 20,096 $ % 211 Broward 33, ,626 (128,024) 481% Broward Regional Health Planning Council 353,690 1,145,846 (792,156) 324% Early Learning Coalition of Broward 1,956,732 1,823, ,214 93% Total Administrative Expense $ 2,615,785 $ 3,640,991 $ (1,025,206) 139% Overage from systemic classification errors Total Expenses $ 92,886,123 $ 91,880,030 $ 1,006,093 99% PAGE 15

16 Early Learning Coalition of Broward County, Inc. Notes to the Financial Statements For The Twelve Months Ended June 30, 2017 (1) (2) The Early Learning Coalition of Broward County ("ELC") budgets, as revenue, 100% of the OEL Funding Agreement. Revenue from the Office of Early Learning (OEL) comprises both federal and state funds. The full accrual basis of accounting is utilized by ELC. Under the accrual basis, revenues are recognized in the accounting period in which they are earned. Expenses are recognized in the accounting period in which the liability is incurred. (3) State law requires that VPK providers receive a prepayment at the beginning of each month. During the fiscal year, these expenditures are reported as revenue and expense when they are incurred. At year end, any outstanding balances will be recorded to the corresponding asset and liability account. PAGE 16

17 TAB 5 For Executive Committee Meeting September 27, 2017 As presented at the Finance Committee Meeting Subject: Recommended Action: Financial Impact: July 2017 Interim Financial Statements & Utilization Approve July 2017 Interim Financial Statements Background Information: Interim Financial Statements for the month ending July 31, 2017 are attached for review. Current Status: Key components of ELC s overall preliminary financial results include: Revenues: As of July 31, 2017 ELC has earned approximately 6% of the annual budget or $5.7 million. This rate reflects typically low summer child care usage in the Voluntary Pre-K program. Expenses: School Readiness child care slots are about 1% higher than the target of 8.3% because of OEL s decision to allow Coalitions across the state spend FY funds through the month of January. ELC Broward carried about $370K of these funds forward for slots and about $100K for administrative expenses. Child Care Executive Program and Children s Services Council Slot Funding have been adjusted to maximize State funding and to offset each other. Voluntary Pre-K slot utilization at 2% reflects a normal pattern of decline in services over the summer months. Utilization Projection: Reductions in administrative costs expected in FY will permit ELC to enroll an estimated 330 new children starting in February PAGE 17

18 Attrition for income eligible children has been lowered from 20% of upcoming redeterminations over the next six months to 15% in this model to account for the uncertain impact of the new annual redetermination guidelines now coming into effect and any potential disruptions caused by the transition of services to in-house from October to December. A two percent increase in provider rates across the Board beginning in January 2018 is also included in the model pending future Board discussion. Action Requested: Financial Impact: Approve July 2017 Interim Financial Statements PAGE 18

19 Early Learning Coalition of Broward County, Inc. INTERIM FINANCIAL STATEMENTS FISCAL YEAR For The Month Ended July 31, 2017 Submitted to the September 27, 2017 Finance Committee Meeting PAGE 19

20 Early Learning Coalition of Broward County, Inc. FY Statement of Financial Position As Of July 31, 2017 July 31, 2017 July 31, 2016 Assets Cash $ 5,478,902 $ 3,192,618 Grants Receivable 8,318,071 14,286,648 Accounts Receivable 560, Prepaid Expense 15,198 16,701 Fixed Assets 10,758 10,758 Total Assets $ 14,383,635 $ 17,507,010 Liabilities: Accounts Payable $ 473,391 $ 40,378 Salary & Benefits Payable 112,721 56,024 Compensated Absences 90,484 90,484 Due to BRHPC 5,278,707 9,448,432 Due to 211-Broward 121, ,507 Due to Family Central 181, ,803 Due to NSU 150, ,366 Due to SBBC 132, ,136 Due to Children's Forum 90,780 77,389 Due to Other Agencies 20,564 16,824 Deferred Revenue 7,455,132 6,990,021 Total Liabilities $ 14,107,959 $ 17,245,363 Net Assets Unrestricted Total Net Assets 275, , , ,647 Total Liabilities and Net Assets $ 14,383,635 $ 17,507,010 PAGE 20

21 Early Learning Coalition of Broward County, Inc. FY Statement of Activities For The Month Ended July 31, 2017 July 2017 Actual FY 2018 YTD Actual FY 2017 YTD Actual Revenues & support OEL School Readiness (SR) $ 3,993,485 $ 3,993,485 $ 4,124,140 OEL Child Care Executive Partenership (CCEP) 214, , ,330 OEL Voluntary Pre-K (VPK) 1,038,768 1,038,768 1,317,518 Children's Services Council (CSC) 450, ,850 13,367 Department of Children & Families Refugee Grant (DCF) 15,879 15,879 11,948 OEL Performance Funding Project (PFP) - - 7,521 BECE Conference& Miscellaneous Revenue ,763 Total revenues & support $ 5,713,751 $ 5,713,751 $ 5,585,588 Expenses: Child Care Slots: School Readiness Slots $ 3,371,448 $ 3,371,448 $ 3,576,497 CCEP Slots 203, , ,330 Children's Services Council Slots 445, ,498 - Voluntary Pre-K Slots 938, ,218 1,230,252 DCF Entrant Slots 12,679 12,679 10,665 Performance Funding Project - ELC 0 0 7,521 Subtotal Child Care Slots $ 4,971,305 $ 4,971,305 $ 4,919,745 Program Expense: Nova Southeastern University $ 52,385 $ 52,385 $ 57,923 Family Central 65,442 65,442 67,592 School Board of Broward County 6,768 6,768 16,173 Children's Forum 6,140 6,140 63, Broward 22,598 22,598 27,978 Broward Regional Health Planning Council 111, , ,071 Early Learning Coalition of Broward 184, ,627 95,868 Subtotal Program Expense $ 449,541 $ 449,541 $ 442,485 Administrative Expense: Nova Southeastern University $ 14,303 $ 14,303 $ 8,688 Family Central - - 7,435 School Board of Broward County 10,573 10, Children's Forum , Broward 9,091 9,091 1,603 Broward Regional Health Planning Council 50,013 50,013 44,170 Early Learning Coalition of Broward 216, , ,924 Subtotal Administrative Expense $ 301,400 $ 301,400 $ 223,313 Total Expenses $ 5,722,246 $ 5,722,246 $ 5,585,543 Change in net assets $ (8,496) $ (8,496) $ 45 Net assets, beginning of year 284, ,602 Net assets, end of the period $ 275,677 $ 261,647 PAGE 21

22 Early Learning Coalition of Broward County, Inc. FY Annual Budget to Actual For The Period Ended July 31, 2017 FY 2018 YTD Annual Actual Budget Balance % of Budget Notes Revenues: OEL School Readiness (SR) $ 44,307,584 $ 3,993,485 $ 40,314,099 9% Includes FY17 carryforward OEL Child Care Executive Partenership (CCEP) 2,466, ,068 2,252,697 9% OEL Voluntary Pre-K (VPK) 39,875,498 1,038,768 38,836,731 3% Low summer usage Children's Services Council (CSC) 5,883, ,850 5,433,000 8% Department of Children & Families Refugee Grant (DCF) 174,569 15, ,690 9% OEL Performance Funding Project (PFP) 1,592,831-1,592,831 0% Paid only periodically BECE Conference& Miscellaneous Revenue 30, ,299 2% Total Revenue $ 94,331,097 $ 5,713,751 $ 88,617,346 6% Expenditures: Child Care Slots School Readiness Slots $ 36,196,317 $ 3,371,448 $ 32,824,869 9% Includes FY17 carryforward CCEP Slots $ 2,121,418 $ 203,462 $ 1,917,956 10% Offset with CSC Children's Services Council Slots 5,358, ,498 4,913,352 8% Offset with CSC Voluntary Pre-K Slots 38,195, ,218 37,256,828 2% Low summer usage DCF Entrant Slots 154,879 12, ,200 8% Performance Funding Project - ELC 1,511,431-1,511,431 0% Total Child Care Slots $ 83,537,941 $ 4,971,305 $ 78,566,636 6% Program Expense Nova Southeastern University $ 722,068 $ 52,385 $ 669,683 7% Family Central 671,870 65, ,428 10% Billing error w/ new system School Board of Broward County 562,773 6, ,005 1% Low summer activity Children's Forum 412,964 6, ,824 1% Low summer activity 211 Broward 557,030 22, ,432 4% Broward Regional Health Planning Council 683, , ,864 16% Contract ends Sep Early Learning Coalition of Broward 3,584, ,627 3,400,172 5% Total Program Expense $ 7,194, $ 449, $ 6,745, % Administrative Expense Nova Southeastern University $ 184,748 $ 14,303 $ 170,445 8% Family Central 296, ,456 0% Billing error w/ new system School Board of Broward County $ 262,634 $ 10,573 $ 252,061 4% Low summer activity Children's Forum 36, $ 35,834 2% Low summer activity 211 Broward 170,000 9, ,909 5% Broward Regional Health Planning Council 339,825 50, ,812 15% Contract ends Sep Early Learning Coalition of Broward 2,308, ,709 2,091,291 9% Includes FY17 carryforward Total Administrative Expense $ 3,598,208 $ 301,400 $ 3,296,808 8% Total Expenses $ 94,331,098 $ 5,722,246 $ 88,608,852 6% PAGE 22

23 Early Learning Coalition of Broward County, Inc. Notes to the Financial Statements For The Month Ended July 31, 2017 (1) (2) The Early Learning Coalition of Broward County ("ELC") budgets, as revenue, 100% of the OEL Funding Agreement. Revenue from the Office of Early Learning (OEL) The full accrual basis of accounting is utilized by ELC. Under the accrual basis, revenues are recognized in the accounting period in which they are earned. Expenses are recognized in the accounting period in which the liability is incurred. (3) State law requires that VPK providers receive a prepayment at the beginning of each month. During the fiscal year, these expenditures are reported as revenue and expense when they are incurred. At year end, any outstanding balances will be recorded to the corresponding asset and liability account. PAGE 23

24 New Enrollments from Waitlist: Funding Changes: Assumptions: Enroll 330 Children Feb Apr Est. $371 K SR Carryover from FY17 to FY18 Attrition calculated at 15% of Scheduled BG8 re determinations Sep 17 Feb 18 Enroll 100 Children Nov Est. $291 K CSC Carryover from FY17 to FY19 Carry over $0K CSC Funds to FY19 + Est. $700K to Slots FY18 from Ops. Daily Average Cost forecast reflects current actual trends. 2% Provider Rate Increase effective 1/1/18 Projected total days paid at 98% Unused admin and non direct dollars will be reallocated to slots in Q4 FY17 Fiscal Year Act Days Children Children Slot Dollars Percent Children Ave Cost Per Children's Total Net or Month of Served School Readiness Projected % Actual Projected % Actual Days Used Served Day Services Council Slots Match Billable Proj Care +/ Served vs Proj Slot Exp. vs Proj A Jul % 9,199 $19.60 $ 3,785,887 $ - $ 3,785,887 $ (107,059) $3,678,827 9,287 99% $3,487,528 92% A Aug % 9, ,874,400-3,874,400 (99,721) 3,774,679 9, % 3,646,438 94% A Sep % 9, ,536,763 12,904 3,549,667 (114,067) 3,435,601 9,682 94% 3,743, % A Oct % 9, ,076, ,110 3,407,590 (246,281) 3,161,308 9,137 99% 3,432, % A Nov % 8, ,192, ,777 3,544,141 (235,194) 3,308,947 9,062 99% 3,559, % A Dec % 9, ,165, ,916 3,506,734 (232,462) 3,274,273 8, % 3,601, % A Jan % 9, ,286, ,777 3,625,196 (242,247) 3,382,949 9,259 97% 3,611, % A Feb % 9, ,100, ,175 3,406,749 (313,002) 3,093,747 9, % 3,370,284 99% A Mar % 9, ,733, ,310 4,066,474 (376,505) 3,689,969 9, % 3,965,265 98% A Apr % 9, ,435, ,598 3,712,230 (372,904) 3,339,327 9, % 3,604,615 97% A May % 10, ,180, ,971 4,361,987 (493,853) 3,868,134 9, % 4,235,321 97% A Jun % 10, ,389, ,655 4,908,267 (721,204) 4,187,063 10,466 99% 5,035, % Fiscal Year Projected Act $ 42,194,823 Budget 42,857,080 CSC Surplus(Deficit) $ 662,256 Act Days Children Children Slot Dollars Percent Children Ave Cost Per Children's Total Net or Month of Served School Readiness Projected % Actual Projected % Actual Days Used Served Day Services Council Slots Match Billable Proj Care +/ Served vs Proj Slot Exp. vs Proj A Jul % 10,060 (280) $20.35 $ 3,854,038 $ 445,498 $ 4,299,536 $ (280,800) $4,018,737 9, % $4,010,420 93% a Aug % 10, ,770, ,391 4,218,990 (268,517) 3,950,473 10, % 4,321, % P Sep % 10, ,281, ,060 4,017,079 (252,785) 3,764,293 P Oct % 9, ,410, ,341 3,886,575 (246,596) 3,639,979 P Nov % 9, ,353, ,341 3,829,504 (240,723) 3,588,780 P Dec % 9, ,129, ,376 3,603,326 (233,936) 3,369,391 P Jan % 9, ,575, ,840 3,892,649 (252,287) 3,640,363 P Feb % 9, ,100, ,840 3,417,046 (230,194) 3,186,851 P Mar % 9, ,471, ,840 3,788,363 (246,305) 3,542,057 P Apr % 9, ,419, ,840 3,735,954 (242,264) 3,493,691 P May % 9, ,737, ,840 4,053,885 (259,075) 3,794,810 P Jun % 9, ,544, ,840 3,860,988 (255,503) 3,605,485 Fiscal Year Act or Proj Month SCHOOL READINESS 3 YEAR UTILIZATION FY (With 2% provider rate increase eff 1/1/2018 across the board projection & Additional $700K to slots) Days of Care Percent Days Used Children Served Children Served +/ Ave Cost Per Day School Readiness Children's Services Council Projected Total $ 43,594,909 Budget 43,595,324 Surplus(Deficit) $ 415 P Jul % 9, $ ,023, ,064 4,401,507 (312,189) 4,089,318 P Aug % 9, ,695, ,699 4,070,875 (278,491) 3,792,384 P Sep % 9, ,170, ,699 3,545,813 (255,045) 3,290,769 P Oct % 9, ,491, ,488 3,867,489 (245,275) 3,622,215 P Nov % 9, ,350, ,488 3,727,272 (236,265) 3,491,007 P Dec % 9, ,164, ,488 3,540,636 (231,804) 3,308,832 P Jan % 9, ,581, ,488 3,957,944 (249,178) 3,708,766 P Feb % 9, ,081, ,488 3,457,753 (225,611) 3,232,142 P Mar % 9, ,232, ,488 3,608,568 (230,535) 3,378,033 P Apr % 9, ,517, ,488 3,893,619 (242,514) 3,651,105 P May % 9, ,666, ,488 4,042,533 (251,368) 3,791,165 P Jun % 9, ,291, ,488 3,668,428 (238,833) 3,429,595 Total Slots Match Net Billable Projected Total $ 42,785,330 Budget 42,785,336 Surplus(Deficit) $ 6 Projected Served Children % Actual vs Proj Projected Slot Exp. Slot Dollars % Actual vs Proj PAGE 24

25 TAB 6 For Executive Committee Meeting As Presented at the Finance Committee Meeting September 27, 2017 Subject: List of Cash Disbursements $1,000-$25,000 August 2017 Recommended Action:. For Review Only Financial Impact: Background Information In accordance with ELC Cash Disbursement Policy Approved April 14, 2017, cash disbursements issued by ELC in amounts greater than $1,000 and less than $25,000 are submitted to the ELC Board for review monthly. Vendor Name Check Amount Purpose Paul H. Brookes Publishing Co, Inc. 13, ASQ-3 Development Screening Kits The Krizner Group Western NRG, Inc. Shred Monkeys Business & Leadership Institute for Early Learning Business & Leadership Institute for Early Learning Business Card 10, HR Policy, Audit & Consulting 3, Sonic Wall Security 1, Shred 400 Boxes 10, Educational Training to Providers 8, Educational Training to Providers 9, Miscellaneous Operating Expenses Bluejean Software, Inc. 1, Program Software July 2017 United Healthcare United Healthcare Unum Life Ins. Co. of America 2, Employee Benefits 2, Employee Benefits 1, Employee Benefits Jacob C. Jackson, P.A. 6, Legal Services Rendered July 2017 Lakeside IV, LLC 11, Rent for August 2017 SB & Company, LLC 14, Audit Services Recommended Action:. For Review Only Financial Impact: PAGE 25