Jewish Social Service Agency
Executive Committee Dashboard and Narrative
For the SixMonths Ended Dec31, 2017
Agency overview
The consolidated financial statements for Dec 31, 2017 shows an overall surplus of $3.6 million. The surplus is due primarily to nearly $3.6 million in investment earnings in the Portfolio in the first half of the fiscal year as well as $1.3 million in bequests.
Operations
The Consolidated Operating Net Income for the JSSA and Premier Homecare shows a positive variance to budget of $414,781 with an actual year to date loss of $296,751as of Dec 31, 2017 vs. the budgeted deficit of $711,532.
We are six months into the fiscal year. For the year, we are on course with the budget. There are some timing differences, which negatively impact net income year to date, including Mental Health reorganization severance costs and Holocaust expenses without fully recognized revenue for December. Hospice census continues to outperform andrelated revenue is exceeding budget. Philanthropy has performed in line with budget and exceedsthe prior year results for the first six months. Performance of each business line is detailed below:
Philanthropic support
Contributions, Foundation Grants and Tributes of $1.5 millionare $64,725over budget and are $144,061 more compared to last year at this time. Early indicators of January donations are also very strong compared to last year.
Clinical Programs
Mental Healthnet deficit without philanthropy is $17,041 worse than budget for the six months YTD. This is primarily due to $121,491 in severance costs resulting from the reorganization. We are seeing positive gains with the reorganization each month that are slowly reducing the effect of the severance costs. Net year to date service fees are $55,087 below budget but are offset with expenses savings (excluding severance payouts).
Specialized Employmentnet YTD services fees are below budget by $10,099. Overall, net income without philanthropy is $13,386worse than budget. An increase in State referrals create optimism for an uptick in revenue in the third quarter.
Hospicecensus exceeded budget in the first six months, resulting in net income without philanthropy of $466,905 more than budget. A temporary decrease in census in December was an expected seasonal variance and census figures have jumped again in January exceeding 200 for the first time in the history of the program. We are currently recruiting for staff positions to create a third Hospice team.
Effective October 1, 2017, we received an estimated 2% rate increase from Medicare. This increase is slightly better than the rate we had in 2016 before Medicare’s 1.87% rate cut on October 1, 2016.
Holocaust Survivors’ Program received an increase from the Claims Conference for calendar year 2017 and an additional increase for calendar year 2018. These increases have allowed us to increase spending on homecare services in the first six months of FY2018 (last half of calendar 2017) and this trend will continue into the 3rdquarter.The spending increase is offset by this increased grant revenue.Over the past four years, Claims Conference funding has increased from $750k to over $2.5M and is primarily targeted for homecare services. There is a timing discrepancy in fully recognizing the revenue, which is trued up each quarter after closing.
Premier net service fees are above budget for the year due to an increase in referrals.Premier showed a net surplus before allocation of M&Gof 94,440 for the first six months. Profit margins are very thin for homecare services and management is working to preserve and even improve these margins.
While there has been some variability in Premier’s hours, they are still better than budget and have resumed an upward trend.