Children s Services Council Finance Committee Meeting Thursday, March 30, 2017, 3:30 p.m. AGENDA / MINUTES Welcome and introductions Finance Committee Members: 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 Dumars, Director Financial Services, Solid Waste Authority John Marino, Volunteer CSC Staff: Lisa Williams-Taylor, Ph.D., CEO Jennifer Diehl, CFO Tom Sheehan, General Counsel Elsa Sanchez, Senior Executive Assistant Agenda Items: 1 Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2016 (original to be hand-delivered at meeting and final draft to be emailed under a separate cover) 2 Forecast/Budget for the Fiscal Year Ended September 30, 2018 3 February 23, 2017 Minutes 4 February 28, 2017 Financial Statements 5 Report to Council summary 6 Adjournment Discussion Items: 1 Finance Committee Members Next Meeting: April 27, 2017 1
AGENDA ITEM: 2 TITLE: CSC FORECAST/BUDGET FOR THE YEAR ENDED SEPTEMBER 30, 2018 STAFF: Jennifer Diehl, CFO, Children s Services Council of Palm Beach County SUMMARY: Budget Assumptions: Revenues The millage rate will decrease in 2017-2018 to.6500 (may change slightly depending on tentative budget presented at Planning Session). The tax base will increase 6.5% (projected). Grant income will remain comparable. Head Start Revenue will decrease as the match from the County decreases. Interest income and Other income will increase slightly. Expenditures The under expenditure rate is projected at 5%. Health insurance is expected to increase by 10%. Merit and Promotional increases of 3.5% are budgeted. Children s programs expenditures are budgeted to increase approximately $2.2 million which includes provider staff salaries and health insurance increases and policy briefs subject to approval by the Council. No increase in number of budgeted CSC positions. Fund Balance The targeted fund balance is 27.5% of the total budget. 2
CSC Forecast Reduce Millage (higher at beginning and smooth out) Tax base increases 6.5% in 17/18, 5.5% in 18/19 and 19/20 and 3.5% in 20/21 and 21/22 Under expenditure rate is projected at 5% Targeted fund balance is 27.5% of the total budget Fiscal Year Total PBC Tax Base Millage Rate CSC Ad Valorem Revenue Children's Services Council of Palm Beach County Budget Forecast 2016/2017-2021/2022 Other Funders/Income Revenue from Fund Balance Total CSC Budget Balance in Fund Balance 27.5% of Budget % over fund Reduction in balance policy millage rate 2016/17 165,509,256,071 0.6833 113,092,475 6,014,966 9,076,761 128,184,202 47,764,565 35,250,656 35% 2017/18 176,267,357,716 0.6500 114,573,783 5,155,246 10,123,466 129,852,495 44,133,724 35,709,436 24% 4.87% 2018/19 185,962,062,390 0.6425 119,480,625 4,055,246 9,100,085 132,635,956 41,665,437 36,474,888 14% 1.15% 2019/20 196,189,975,821 0.6375 125,071,110 4,055,246 8,821,038 137,947,394 39,741,768 37,935,533 5% 0.78% 2020/21 203,056,624,975 0.6325 128,433,315 4,055,246 8,181,792 140,670,353 38,593,494 38,684,347 0% 0.78% 2021/22 210,163,606,849 0.6325 132,928,481 4,055,246 6,455,574 143,439,301 39,309,885 39,445,808 0% 0.00% Revenues FY 2016/2017** FY 2017/2018 FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022 Ad valorem Taxes 113,092,475 114,573,783 119,480,625 125,071,110 128,433,315 132,928,481 Grant Income 3,344,966 3,355,246 3,355,246 3,355,246 3,355,246 3,355,246 Head Start Revenue 2,100,000 1,100,000 - - - - Interest Income 400,000 500,000 500,000 500,000 500,000 500,000 Other Income 170,000 200,000 200,000 200,000 200,000 200,000 Cash Balances Brought Forward 9,076,761 10,123,466 9,100,085 8,821,038 8,181,792 6,455,574 Total 128,184,202 129,852,495 132,635,956 137,947,394 140,670,353 143,439,301 Expenditures Personnel 12,140,905 12,637,018 13,133,132 13,629,245 14,125,359 14,621,472 Travel 221,950 251,130 251,130 251,130 251,130 251,130 Building Space 682,000 702,460 723,534 745,240 767,597 790,625 Communications 72,600 72,600 72,600 72,600 72,600 72,600 Printing & Supplies 200,400 200,400 200,400 200,400 200,400 200,400 Other Expenses 1,314,092 1,371,319 1,371,319 1,371,319 1,371,319 1,371,319 Capital Expenses 350,000 250,000 250,000 250,000 250,000 250,000 Non-Operating Expenses 3,046,003 2,859,056 2,859,056 2,859,056 2,859,056 2,859,056 Children's Programs and Initiatives 104,001,628 104,280,560 106,425,560 110,995,560 113,065,560 115,135,560 Children's Programs and Initiatives Cost Drivers - 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 Policy Briefs - 945,000 870,000 870,000 870,000 870,000 Contingency 500,000 500,000 500,000 500,000 500,000 500,000 Reserve for Uncollectible Tax 5,654,624 4,582,951 4,779,225 5,002,844 5,137,333 5,317,139 Total 128,184,202 129,852,495 132,635,956 137,947,394 140,670,353 143,439,301 Items included in projection: Promotional increases in salaries (.5%) Added 10% health insurance increase Programs based on projection plus cost drivers of 3% salary increase and 10% health insurance increase Merit increases in salaries (3%) Policy briefs subject to Council approval **Based on Trim Packet approved by Council 3
Children s Services Council Finance Committee Meeting Thursday, February 23, 2017, 3:15 p.m. AGENDA / MINUTES Welcome and introductions Finance Committee Members: Tom Lynch, CSC Finance Committee Chair, Present Thomas Bean, CSC Finance Committee Vice-chair, Present Greg Langowski, Chair Children s Services Council, Not Present Tom Weber, Vice Chair Children s Services Council, Not Present Paul Dumars, Director Financial Services, Solid Waste Authority, Present John Marino, Volunteer, Not Present CSC Staff: Lisa Williams-Taylor, Ph.D., CEO, Present Jennifer Diehl, CFO, Present Tom Sheehan, General Counsel, Present Elsa Sanchez, Senior Executive Assistant, Present Agenda Items: 1 January 26, 2017 Minutes, Consensus for Council to approve 2 January 31, 2017 Financial Statements, Consensus for Council to approve 3 Report to Council summary 4 Adjournment Discussion Items: 1 Investment Policy Review Update, PFM to present on April 27, 2017 from 3-4:00 2 Finance Committee Members, Further discussion on March 30, 2017 Next Meeting: March 30, 2017 4
AGENDA ITEM: 4 TITLE: Financial Statements February 28, 2017 (Unaudited) STAFF: Jennifer Diehl, CFO, 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 five months ended February 28, 2017. The audit of the Council for the fiscal year ended September 30, 2016 has been completed and the applicable figures represent audited numbers. Balance Sheet: As of February 28, 2017 the Council had $107,718,757 in cash and investments. Of this balance, $30,000,000, net of unamortized discounts and premiums, was held in federal government bonds, $67,414,216 was held in a public funds money market account, and $300,000 was held in the Morgan Stanley Institutional Government Advisory Fund #8342. The remainder of the funds were on deposit in the Council s operating accounts. The Capital Assets and the Investment in Capital Assets for $18,952,794 represent the costs associated with furniture and fixtures, equipment, and building costs and have been updated for fiscal year 16-17 after completion of the audit. Statement of Revenue and Expenses: The budgeted expenditure rate at February 28, 2017 is 41.67%. The estimated expenditure rate for Children s Programs at February 28, 2017 is 32.45% RECOMMENDATION: I recommend the Finance Committee propose that the Council accept the February 28, 2017 Financial Statements as submitted. 5
CHILDREN'S SERVICES COUNCIL OF PALM BEACH COUNTY BALANCE SHEET (Unaudited) February 28, 2017 General Fund Special Revenue Fund Total All Funds Assets Prevention Partnership for Children, Inc. Cash & Investments $ 107,707,138 $ 11,619 $ 107,718,757 Accounts Receivable 2,289,236-2,289,236 Advances to Agencies 4,326,005-4,326,005 Prepaid Expenses 337,638-337,638 Due From - General Fund - 3,420 3,420 Capital Assets 18,952,794-18,952,794 Total Assets 133,612,811 15,039 133,627,850 Liabilities & Fund Balance Liabilities Allocations to Children's Services Programs 7,758,363 7,048 7,765,411 Deferred Revenue 322,449-322,449 Accounts Payable 369,207 7,991 377,198 Due to - Special Revenue Fund 3,420-3,420 Total Liabilities 8,453,439 15,039 8,468,478 Fund Balance Nonspendable: Prepaid Expenses 337,638-337,638 Assigned: Reserved in accordance with fund balance policy 34,496,527-34,496,527 Unassigned: 71,372,413-71,372,413 Total Fund Balance 106,206,578-106,206,578 Investment in Capital Assets 18,952,794-18,952,794 Total Liabilities and Fund Balance $ 133,612,811 $ 15,039 $ 133,627,850 6
CHILDREN'S SERVICES COUNCIL OF PALM BEACH COUNTY STATEMENT OF REVENUE AND EXPENSES CHANGES IN FUND BALANCE FOR THE FIVE MONTHS ENDED FEBRUARY 28, 2017 General Fund Special Revenue Fund Total Prevention Partnership for Children, Inc. Revised Approved Budget Actual Approved Budget Actual Revised Approved Budget Actual 2016/2017 Through Through Variance % 2016/2017 Through Through Variance % 2016/2017 Through Through Variance % Budget 2/28/2017 2/28/2017 YTD YTD Budget 2/28/2017 2/28/2017 YTD YTD Budget 2/28/2017 2/28/2017 YTD YTD Revenues Ad Valorem Property Taxes $ 113,092,475 $ 97,247,892 $ 97,247,892 $ - 85.99% $ - $ - $ - $ - 0.00% $ 113,092,475 $ 97,247,892 $ 97,247,892 $ - 85.99% Interest Income 400,000 166,667 147,740 (18,927) 36.94% - - - - 0.00% 400,000 166,667 147,740 (18,927) 36.94% Unrealized Gain or Loss - - (111,240) (111,240) 100.00% - - - - 0.00% - - (111,240) (111,240) 100.00% Department of Health/Agency for Health Care Administration 3,094,966 1,289,569 1,525,977 236,408 49.31% - - - - 0.00% 3,094,966 1,289,569 1,525,977 236,408 49.31% Palm Beach County Head Start Match 2,100,000 875,000 894,197 19,197 42.58% - - - - 0.00% 2,100,000 875,000 894,197 19,197 42.58% JPB Foundation 250,000 104,167 57,789 (46,378) 23.12% - - - - 0.00% 250,000 104,167 57,789 (46,378) 23.12% Income from Tenants 70,000 29,167 31,620 2,453 45.17% - - - - 0.00% 70,000 29,167 31,620 2,453 45.17% Other Income 100,000 41,667 63,202 21,535 63.20% - - - - 0.00% 100,000 41,667 63,202 21,535 63.20% Cash Carryforward 9,076,761 - - - 0.00% - - - - 0.00% 9,076,761 - - - 0.00% Total Revenues 128,184,202 99,754,128 99,857,177 103,049 77.90% - - - - 0.00% 128,184,202 99,754,128 99,857,177 103,049 77.90% Expenditures Administrative Expenditures 5,218,109 2,174,212 2,072,453 101,760 39.72% - - 605 (605) 100.00% 5,218,109 2,174,212 2,073,058 101,155 39.73% Capital Expenditures 350,000 145,833 195,576 (49,743) 55.88% - - - - 0.00% 350,000 145,833 195,576 (49,743) 55.88% Contingency 500,000 - - - 0.00% - - - - 0.00% 500,000 - - - 0.00% Non-Operating Expenses 3,046,003 2,308,322 2,308,322-75.78% - - - - 0.00% 3,046,003 2,308,322 2,308,322-75.78% Reserve for Uncollectible Taxes 5,654,624 - - - 0.00% - - - - 0.00% 5,654,624 - - - 0.00% Children's Services Programs: Direct Services: Funded Programs & Initiatives 101,259,343 42,191,393 32,293,721 9,897,672 31.89% 2,742,285 1,142,619 735,183 407,436 26.81% 104,001,628 43,334,012 33,028,904 10,305,108 31.76% Support Services: Programmatic Support 9,413,838 3,922,433 3,779,304 143,128 40.15% - - - - 0.00% 9,413,838 3,922,433 3,779,304 143,128 40.15% Total Children's Programs 110,673,181 46,113,825 36,073,025 10,040,800 32.59% 2,742,285 1,142,619 735,183 407,436 26.81% 113,415,466 47,256,444 36,808,208 10,448,236 32.45% Total Expenses 125,441,917 50,742,193 40,649,376 10,092,817 32.40% 2,742,285 1,142,619 735,788 406,831 26.83% 128,184,202 51,884,812 41,385,164 10,499,648 32.29% Excess Revenues over Expenses 59,207,801 (735,788) 58,472,013 Other Financing Sources (Uses) Transfers in (out) (2,742,285) (1,142,619) (735,788) (406,831) 26.83% 2,742,285 457,048 735,788 (278,741) 26.83% - - - - 0.00% Net Changes in Fund Balances 58,472,013-58,472,013 Fund Balances October 1, 2016 47,734,565-47,734,565 February 28, 2017 $ 106,206,578 $ - $ 106,206,578 7
AGENDA ITEM: 5 TITLE: STAFF: Summary for Presentation to Council Jennifer Diehl, CFO, Children s Services Council of Palm Beach County SUMMARY: 1 Council to approve the following: a. Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2016 b. February 23, 2017 Minutes c. February 28, 2017 Financial Statements 8