Proposed 2019 Budget November 29, 2018 Proprietary and confidential information of Washburn Center for Children

High Level Overview We have created a balanced budget for 2019 2018 Projection 2019 Budget FFS $11,924,339 $11,906,109 $12,512,524 Salaries & Benefits $13,147,965 $13,241,693 $14,382,271 Endowment $310,000 $330,747 Program Margin ($1,661,800) ($1,778,702) (1,867,568) Total Expenses $16,050,620 $16,036,985 $17,477,059

2019 Budget Risks and Opportunities Recruiting clinical staff 3 FTE +/- is $330,000 in FFS Revenue, adding 10.25 FTE LOC Currently at $1.05M (4.875%) Budgeting $45,832 in interest Sustainability Plan & Campaign Timelines Remaining $4M of pledges needed Referrals & Productivity Budgeting at 100% productivity for 69,055 services. Cash

Cash Projections 2019

2019 Budget Key Assumptions Contracts and Grants Revenue: Contracts and Grants scheduled to increase $663,721 from 2018 budget. Sustainability Plan – Release from restriction $697,464 Contracts - Increased by$250,000 (Allina, Lionsgate, etc.) Guaranteed contract, share FFS with partners Decreased Revenue - United Health Foundation Grant, United Way, School Based Government Grants and Special Projects Fee-For-Service Revenue (FFS): Fee-For-Service Revenue increases 5% or $603,185 over 2018 Budget Rates Reimbursement rates are based on actual rates YTD as of 10/31/2018

2019 Budget Key Assumptions Billable FTE: Increase in 10.25 billable FTE Proactive Hiring concept within Programs – not budgeted Development goal increases to $1.6M from $1.485M in 2018 budget Margin improves from 514k to 756k Development Revenue: Endowment Draw: $330,727 draw for 2019, an increase of $30,727 increase from 2018 budget. Endowment is supporting the following during 2019; Professional Development for all staff ($6,300) HR Recruitment, Training, Onboarding & Compensation ($134,427) EDI Training, Consultants, Pathways Fellows, Community Engagement ($190,000)

2019 Budget Key Assumptions Salary and Benefit Expense: Salary expense increases 9.2% or $997,478 over 2018 Budget The majority of this is tied to Sustainability Plan positions and FTE Salary increases are budgeted at 3% Incentives for Clinicians are budgeted at $65,000 Clinician FTE increases by 10.25 during 2019 403B employer match remains at 2% for 2019 No Group Medical increases (0.0%) Expendables increase 11.8% or $341,133 over 2018 Budget Primary increase areas: Sustainability Project integration into Operating Budget Pathways Program for D&I Line of Credit interest expense Depreciation of IT equipment Non-Salary Expense:

Sustainability Plan 2019 There are 5 main areas; Campaign EHR Receive pledges for $1.625M pledges of the remaining $4M project total EHR Capital Purchase, implementation, Roll-out Human Resources Compensation Model, Competency Model, Hiring Technology Windows 10, Computer replacement, server replacement, purchasing equipment for new staff Site #4 Selection

Sustainability Timeline We are behind on hires.

Cash Projections – Sustainability Project

Updated Projection 11.28.18

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