1.Financial data:

  1. Unrestricted Assets: Cash position, including receivables is $4,248,069. This represents 6.3 months of average operating expenses.
  2. Account Receivable balance is $523,316; 3 invoices totaling $13,578 are over 90 days past due, District Managers have contacted the project hostsfor payment information.
  3. Liabilities: Accounts payable of $218,473
  4. Total Equity:$4,540,560of that $341,922 is temporarily restricted for 2017 programs
  5. Income:Income for August is $346,400, with YTD at $4,770,655. YTD Budget for Income $5,066,017. Decrease ($210,862) from YTD Budget
  6. Expenses: Expenses for August $825,702 with YTD at $6,068,225. YTD Budget for Expenses $6,466,527. Decrease ($398,302) from YTD Budget
  7. Net Assets for August decreased ($479,302) with YTD decrease of ($1,297,570)

2.Executive Summary:

With the staff turnover in the Finance area, the last month was devoted to auditing and updating June, July, and August financial information. The June credit card statement was booked to the Misc. Expense account. This was reallocated to the correct expense accounts. The July and August bank statements were reconciled along with a few other balance sheet accounts. Numerous hours were spent by Jim B. and Yee on the feed for the credit card information and the payroll information. An Australian based 3rd party software, Zed Axis is used to import information into QuickBooks. Due to an upgrade of that software along with the time zone differences an extreme amount of time was spent which resulted in delays in reporting. This also highlights another limitation of our current accounting software. Additional limitations of QuickBooks have become more obvious over the past couple months such as invoices not being tied to contracts and limited reporting capabilities.

To help solve the immediate issues, Jim Backus was hired as our permanent Senior Account. Meetings with Blue Cross are ongoing with the plan of having a new Accounting software implemented in 2017.

Both income and expenses are down YTD compared to budget as a result of the recruitment issues of not having full crews early in year. This is a major reason why partner support is down 402k from budget. With that said, the Net Income for the year is still 158,112 ahead of budget. As part of the budgeting process 2.1 million was included in the Partner Support Other instead of being allocated to other Partner Support accounts which explains why you will see big variances in the partner support accounts. Historically invoicing is high in September as programs end. Additionally, there will be future audits and understanding to be conducted by finance.

Jim Kaczrowski 651.209.9900 x21 | 612.237.1904