Treasurer’s Report OPTN/UNOS Board of Directors Meeting June 25-26, 2012

OPTN Items to be Presented  Fiscal year (FY) 2011 financial results  Consolidated audit report for FY 2011  Proposed budget for FY 2013

OPTN FY 2011 Results  OPTN revenues: $4,153,699 in appropriated federal funds.  Base funding of $2,500,000  Remaining funding for the Deceased Donor Potential Study (DDPS)  $30,456,855 in OPTN registration revenue  52,063 registrations x $585  Registrations were 2,686 or approximately $1,571,000 less than budget.

OPTN FY 2011 Results  OPTN expenses:  $33,039,241 in total expenses.  Expenses are covered by:  registration funding of $28,885,542  federal appropriations of $4,153,699.  Expenses were approximately $2,256,000 below budget.

OPTN FY 2011 Results  OPTN Revenues & Expenses  Funding – expenses = $1,571,000.  Of the $1,571,000, $686,000 was due to expenses being less than revenues, and $885,000 was due to timing of federal appropriations for the DDPS.  Excess funds (once collected) remain in the OPTN bank accounts until needed.

OPTN FY 2011 Audit  OPTN A-133 compliance audit is a component of the UNOS audit.  Unqualified or “clean” opinion issued on UNOS financial statements and OPTN operations.  No material weaknesses in internal controls or non-compliance with federal or contract requirements was detected.  UNOS is considered a low-risk auditee.

OPTN FY 2011 Audit  Board of Directors action required:  RESOLVED, that the 2011 OPTN audited financial statements and the related OMB Circular A-133 compliance audit, as performed by Cherry Baekert and Holland, are hereby approved.

OPTN FY 2011 Results  Due to bankruptcy of HISF and closure of the facility, OPTN and UNOS fees are deemed to be uncollectable.  OPTN fees owed by HISF are $63,237.  Executive Committee waived OPTN and UNOS fees that would generate by the transfer of patients from HISF to other transplant centers.

OPTN FY 2011 Results  Board of Directors action required:  RESOLVED, that the OPTN writes off unpaid OPTN fees of $63,237 from HISF and this information is communicated to the Membership and Professional Standards Committee.

OPTN FY 2012 Projection  Revenue and expenses  Registrations are expected to be 1,800 below budget causing a funding shortfall of approx. $1,100,000.  Expenditures should be close to budget.  Funding is sufficient to cover expenditures due to excess funds generated in FY 2010 and FY  No draw is needed from OPTN reserves.

OPTN FY 2013 Budget  OPTN revenues are $36,446,333  $2,500,000 in federal appropriations  $33,946,333 in OPTN registration fees  OPTN registration fee revenue accounts for 93% of funding.  Kidney registrations account for approximately 63% of total registrations.

OPTN FY 2013 Budget  OPTN expenses are $36,446,333  OPTN expenses are approx. $74,000 greater than the FY 2012 Budget.  Cost components and the existing scope of work were not changed due current contract requirements.  It is unknown if the scope of work will change in next OPTN contract.

OPTN FY 2013 Budget - Fees  OPTN fees:  $48 (8%) increase from $603 to $651  Registrations are expected to be 1,800 less than in the FY 2012 Budget.  Expenses for FY 2013 are flat compared to FY  Federal funding is expected to remain at $2,500,000.

OPTN FY 2013 Budget - Fees  OPTN fees:  Uncertainty exists about the number of registrations for FY 2013 due to implementation of a new Kidney policy.  To fund the budget, and put the OPTN on a good financial footing prior to a period of uncertainty, an 8% fee increase is necessary.

2013 OPTN Budget  Board of Directors action required:  RESOLVED, that the 2013 OPTN Operating Budget is hereby approved, and  FURTHER RESOLVED, that the Board of Directors hereby approves the increase in the OPTN patient registration fee from $603 to $651, effective October 1,  FURTHER RESOLVED, that Policy 11.0 (Registration Fee) shall be amended as set forth below effective October 1, 2012 (see report).