Item Coversheet
August 11, 2020
Written Reports

Approve Finance Manager’s report for May 2020 (SR 20-062; T. Kellogg)

Administration / Tracey Kellogg, CPA, Finance Manager 
Prior Board Review:
Administration Committee, 7/22/2020 



Cash and Investments at May 31, 2020

Cash                                 $261,105 

Investments               $11,124,248

Comprised of:

  • $8.6 million – State of Washington Local Government Investment Pool

  • $2.5 million – Snohomish County Investment Pool


Unrealized Gain or Loss on Investments

At the end of each year, Snohomish County provides the District with an analysis of unrealized gain or loss for the County’s investment pool. The inception to date unrealized gain is $8,457 for the pool as of December 31, 2019.   


Accounts Receivable


The Accounts Receivable balance is currently reported as a negative $151,541. This issue arose as a result of 2019 year-end internal audit adjustments to the EnvisionConnect receivables. Further research is necessary to determine which of those entries resulted in a revenue recognition timing difference in 2020. There was insufficient time to complete this work as of the reporting date. There is further discussion of the challenges in reconciling EnvisionConnect in the Finance Manager’s Report for the 2019 Annual Financial Report filed with the State Auditor.


Calendar Year Operations through May 31, 2020

Revenues – Actual revenues District-wide are 17.7% above projections at 59.4% with 41.7% of the year elapsed. The effect of the receipt of 50% of the annual budgeted state Public Health Funding in January as well as the billing of the annual food permits in the same month is diminishing as the year progresses. Additional unbudgeted revenues include $109,341 from the Community Foundation of Snohomish County Coronavirus Response Fund included in Miscellaneous Revenues and $1.5M from the State, both for Coronavirus response activities. See Exhibit A – Revenue for further comments.


Expenditures – Actual expenditures District-wide are 1.6% above projections at 43.3% with 41.7% of the year elapsed. Explanations for significant variances are shown in Exhibit A – Expenditures.


Fund Balance

SHD’s General Fund Balance is comprised of the following amounts as of May 31, 2020:


Fund Balance



Board-Approved Reserves:

Working Capital


Compensated Absences


Capital Improvements




Rucker Building - Reserve from 2015 Water Damage




Total Fund Balance



Non-spendable items are comprised of Vital Statistics Fees due to the State of Washington that are remitted quarterly and some payroll-related accruals. The Vital Statistics Fees for April of $44,381 were inadvertantly posted to May 2020. This will be corrected in subsequent reports.


The fund balance designated for Compensated Absences has been reduced from $1,700,000 to $1,109,000 based on the adjusted year-end balance as of 12/31/2019 as reported in the 2019 Annual Financial Report.


Pursuant to Board Resolution 20-06 Declaration of Emergency in March, the Emergency Fund of $500,000 was transfered to Unreserved Funds.

Board Authority

Consistent with Resolution 19-20 and the revised Division of Responsibilities (10/8/19), the Board of Health has authority over the Health District budget.

Recommended Motion

Written report only.

Chart of Revenue & Expenditure Variances through May 31, 2020
Unaudited Financial Statements through May 31, 2020