Financial Review & Decision-Making Process
Session #1 – July 31, 2013
Financial Review
Overview Board of Directors decision-making process.
Questions for clarification.
Tonight
Questions for clarification, after each section.
One speaker, one question at a time.
Please use “I” statements.
Respect other’s perspectives.
Respectful behaviours – Constructive Meeting
It is the responsibility of the Board of
Directors and senior management to
monitor and ensure the financial health of
Saint Vincent’s and to provide the best
care and services for residents, utilizing
available resources.
Since 2005 we have assessed our operational shortfall.
We have been working on options to ensure Saint Vincent’s is sustainable into the future.
We have actively implemented efficiencies to decrease the deficit.
84% staffing – wages & benefits
16% supplies, food, utilities, etc.
Daily rate is set by Dept. of Health & Wellness
Budget at Saint Vincent’s
Is separate from operations.
All capital projects, renovations, major equipment are funded by DHW, fundraising, mortgage, etc.
The surplus in our audited financial statements adds together the capital and operating funds.
Capital Funding
Was paid by a mortgage.
This mortgage is funded by DHW and is part of the capital fund.
Operations DO NOT pay for the mortgage.
Our Land
2012/2013operating deficit $71,771(after adjustments)
Accumulated deficit $1,078,189
This accumulated deficit has been decreased from $1.6 million over the last 5 years.
We have cut positions over the past 5 years:◦Housekeeping, nutrition services,
management, reception, recreation, pastoral care.
We are at the point that further cuts could negatively impact resident care.
For example: we are funded $6.40/day/resident for food and we actually spend $6.80/day.
All health care organizations are being
asked to be efficient given the
increasing cost of healthcare along
with the fiscally restrained situation in
government.
LPN’s 3.0Clinical Dietitian .3Physio assistant .75Maintenance .2Education .16Payroll .5Director Quality & Operations 1.0Total full time equivalent 5.91
Positions unfunded by DHW
2011/2012◦wage deficit $61,662
2012/2013◦wage deficit $48,468
2013/2014◦wage deficit (projected) $35,911
Decrease is due to reorganization and cuts in positions, especially management and non-union.
Operating budget 2013/2014:
$11,189,763
Includes:Salary & Benefits $ 9,530,587Operating Costs $
1,559,176
Operating costs include:Supplies, food, utilities, laundry, telephone, maintenance of equipment
From 2011/2012 to 2013/2014 – funding from DWH for operating costs has increased by $70,444 – 4.43%
2013/2014 budget 1% - actual operating expenditures have increased by $181,567 – 10.81%
A short fall of $111,123 (projected)
The fastest growing expenses are:Food – Power – Water - Laundry
No more cuts to expenses and salaries means having to revenue.
Opportunities for generating revenue is very limited.
Have applied for federal, provincial & HRM grants.
The Fundraising Campaign is ongoing
to pay for much needed equipment
and renovations – this money does
not go into operations.
Questions for clarification?
Overview of Decision making process- paid parking system
Discussion regarding paid parking first occurred in May, 2008.◦ Finance Committee◦ Board of Directors
Management was tasked with reviewing parking systems 2008/2009.
Fact finding continued through 2010.
Parking not pursued 2009/2010 as other deficit management initiatives were being introduced.
2011 – management had parking proposals
and information updated.
November 8, 2011:
◦the Finance Committee (all members
were present) decided to take forward a
recommendation to the Board of Directors
to introduce a paid parking system.
November 15, 2011:
◦A motion was presented to the Board of
Directors that Saint Vincent’s Nursing
Home charge for parking. The motion
was passed unanimously. 12/14 Board
members were present.
Subsequent discussions were held by the
Board of Directors and Finance Committee
re:
◦Union negotiation
◦Proposals from parking systems
◦Correspondence received from concerned
individuals
◦Planning presentation at AGM
Three Board members, Director of Finance
& Executive Director met on July 5, 2013
to discuss “next steps”
◦The result was family meetings – July 31st
and August 7th.
Revenue to be realized will be
approximately $40,000 - $80,000 per year
depending on charges.
Revenue generated will be overseen by
the Foundation of the Board.
Paid Parking Fact Finding/overview
Plowing $ 8,600Salting $ 3,300Resurfacing
(per year estimate of 25 year life of parking lot)
$ 7,500
Equipmente.g. snow blower,painting lines, repairs, etc.
$ 2,000
Shoveling(sidewalks, wages, etc.)
$ 2,800
TOTAL $ 24,200
Costs to maintain parking lot
Negotiate staff rate with CUPE. Review charges at other facilities in area. Address “special circumstances”
◦Volunteers◦Palliative Care◦Overnight parking◦Families spending daily time with loved
one◦Persons on fixed income
Process to determine parking charge
Setting the rate will be done in a compassionate and reasonable manner.
We are not-for-profit so all revenues will be reinvested in resident care and programs.
ArmCo parking garage◦$55-75/month
Centennial Pool◦7:15am – 9:30pm - $100/month◦Overnight - $2/day or $30/month
Welsford Apartments◦$100/month
Parking Rates in HRM
IWK◦Women’s/Charter Place & Children’s
parkades - $125/month◦Public parkade - $105/month◦Daily parking rate: First hour $3.00 Second to sixth hour $2.00 Daily maximum $13.00 (6am-6pm)
◦Night parking (6pm-6am) First hour $2.00 Second hour $2.00 Nightly maximum $4.00
IWK (continued) Patient Weekly Pass Program:
◦$25/week and $20 for any week thereafter
Staff Weekly Parking Program:◦$35/week
Volunteer parking◦No charge
Northwood Care Inc. Day shift:
◦Underground lot - $40/month◦Family parking passes - $15/month Only allowed 1 pass/family – not
guaranteed spot Sold each month first come, first serve
◦General parking rate - $1.25/hour◦Volunteers, pastors & night shift staff: No charge
◦Parking at Forum for staff with shuttle bus transportation to nursing home.
QEII Health Sciences Centre and Camp Hill Veteran’s Unit
◦Daily parking rate (8:30am-4:30pm) First two hours $1.50/half hour Third hour $1.25/half hour Thereafter $1.00/half hour Daily maximum $14.00
◦Night parking rate: Maximum $4.00
QEII Health Sciences Centre (continued)◦Staff parking: Same rates as general parking Parking pass $100/month
◦Extended patient stays/social workers/palliative care, etc.: Rates are halved
◦Volunteers – no charge
Questions for clarification re
decision-making process
Brainstorm ideas for revenue generation
Meeting is from 6:30- 8:00
Hope to see you then
Next meeting August 7th
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