1. Budgeting: Counties and the Region Working Together June 27, 2019
MHDS of the ECR
Budgeting:
Counties and the Region Working Together
June 27, 2019

2. Starting October 1st - Annual Service Budget Planning
Process
Starting October 1st - Annual Service Budget Planning
Review Core and Mandated Services
Look for trending
CODs input
Rough Draft

3. December Review individual County Fund Balance Status
Send out forms to county auditors for county administrative budget drafts; due by December 31st
Review County Annual Reports submitted to the Department of Management
RGB receives first service budget draft

4. January Compile County Administrative Budgets
Re-review Service Budget Draft
Keep an eye on legislation
Review/Project individual county fund balances
Inform RGB of progress and where we stand
RGB needs to determine per capita rate so counties can determine their tax levy for their MHDS portion of the budget
county auditors the approved per capita rate

5. February Finalize draft ECR budget (service and administrative)
Draft financial portion of Annual Service and Budget Plan (ASBP)
Present draft to Advisory Board for comment
Present final draft budget to RGB for comment/review/changes
Start reviewing County MHDS approved budgets submitted to the Department of Management (DOM) by county auditors as they are submitted

6. March
Compile and Review all DOM reports for accuracy against what the county submitted to ECR
Address inconsistencies
Re-evaluate budget and make adjustments, as required.
Prepare final financial portion of the ASBP
Prepare FINAL budget for RGB approval at their March meeting. (The ASBP is due to DHS on April 1st)
Please note that SF634 that was signed by the Governor may extend the county filing date to the Department of Management (DOM) to March 31st, starting with the FY21 budget.

7. Can we change or add to the process
Can we change or add to the process? Can we make this better/more streamlined? Can we do better?
ABSOLUTELY!!
Everyone has ideas
The Regional Governing Board needs to communicate its needs and wants relative to the budget
Be creative/try new approaches

8. Budgeting: ECR versus Non-Profit
Answerable to 9 counties and the Regional Governing Board; taxpayers, stakeholders
Requires DHS approval
Numbers must agree with county submissions to the Department of Management
Answerable to Board of Directors, stakeholders

9. Budget Modifications MHDS of the ECR Non-Profits
Subject to budget authority (cannot spend beyond the approved budget without an approved amendment)
Amendment requires sufficient cash (can’t increase tax levy), RGB approval, DHS approval
Can modify with Board of Director approval with available funds

10. Cash versus Accrual We budget on a cash basis
We report on a modified accrual basis
When we incur an expense or revenue
When cash comes in and cash goes out

11. Fiscal Year 2020 Challenges
Fund Balance Spend-downs
Legislation targets
Inability to balance individual, submitted county budgets with their DOM submissions
Timing issues
DHS not providing specific directions/expectations to the people who do the accounting

12. Where are we now? We are at the end of the fiscal year
We are looking at an approximate cash balance of $4M (represents about 16% of the FY20 budget)
Counties will be billed 7/1 for their first quarter payment to the fiscal agent ($4,604,917.71)

13. Board Consideration?
Development of Fiscal Policies based on Board Philosophy , Iowa Code, and Other Recommendations
Board should determine the target amount to be held in reserve (fund balance)
Funding Children’s Mental Health
Setting funding priorities