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