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Financial Review & Decision-Making Process

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Presentation on theme: "Financial Review & Decision-Making Process"— Presentation transcript:

1 Financial Review & Decision-Making Process
Session #1 – July 31, 2013

2 Tonight Financial Review
Overview Board of Directors decision- making process. Questions for clarification.

3 Respectful behaviours – Constructive Meeting
Questions for clarification, after each section. One speaker, one question at a time. Please use “I” statements. Respect other’s perspectives.

4 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.

5 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.

6 Budget at Saint Vincent’s
84% staffing – wages & benefits 16% supplies, food, utilities, etc. Daily rate is set by Dept. of Health & Wellness

7 Capital Funding 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.

8 Our Land 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.

9 2012/2013 operating 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.

10 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.

11 All health care organizations are being asked to be efficient given the increasing cost of healthcare along with the fiscally restrained situation in government.

12 Positions unfunded by DHW
LPN’s 3.0 Clinical Dietitian .3 Physio assistant .75 Maintenance .2 Education .16 Payroll .5 Director Quality & Operations 1.0 Total full time equivalent 5.91

13 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.

14 Operating budget 2013/2014: $11,189,763 Includes: Salary & Benefits $ 9,530,587 Operating Costs $ 1,559,176 Operating costs include: Supplies, food, utilities, laundry, telephone, maintenance of equipment

15 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

16 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.

17 The Fundraising Campaign is ongoing to pay for much needed equipment and renovations – this money does not go into operations.

18 Questions for clarification?

19 Overview of Decision making process- paid parking system

20 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.

21 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.

22 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.

23 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

24 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.

25 Paid Parking Fact Finding/overview
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.

26 Costs to maintain parking lot
Plowing $ 8,600 Salting $ 3,300 Resurfacing (per year estimate of 25 year life of parking lot) $ 7,500 Equipment e.g. snow blower, painting lines, repairs, etc. $ 2,000 Shoveling (sidewalks, wages, etc.) $ 2,800 TOTAL $ 24,200

27 Process to determine parking charge
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

28 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.

29 Parking Rates in HRM Centennial Pool Welsford Apartments
ArmCo parking garage $55-75/month Centennial Pool 7:15am – 9:30pm - $100/month Overnight - $2/day or $30/month Welsford Apartments $100/month

30 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

31 IWK (continued) Patient Weekly Pass Program:
$25/week and $20 for any week thereafter Staff Weekly Parking Program: $35/week Volunteer parking No charge

32 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.

33 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

34 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

35 Questions for clarification re decision-making process

36 Next meeting August 7th Brainstorm ideas for revenue generation
Meeting is from 6:30- 8:00 Hope to see you then

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