Item Coversheet
BOARD OF HEALTH STAFF REPORT (SR 21-062)
July 13, 2021
Written Reports

Finance Manager's report for April 2021 (SR 21-062; T. Kellogg)

Division:
Administration / Tracey Kellogg, CPA, Finance Manager 
Prior Board Review:
Administration Committee, 6/23/21 

Background

 

2021 Budget

COVID-19 activities and COLAs were not included in the approved 2021 budget as details were unknown at the time of the budget development.  A 2021 budget amendment is pending, and details will be discussed in a future report.

 

During budget development, PHEPR programs were moved from Environmental Health to Prevention Services.

 

COVID-19 Report

Per discussion at the last meeting, the COVID-19 detail page will be provided quarterly in the current form. Non-quarter end reports will be system generated.

 

Cash and Investments at April 30, 2021

Cash                                      $1,478,624

Investments                        $10,936,368

Comprised of:

  • $8.4 million – State of Washington Local Government Investment Pool
  • $2.5 million – Snohomish County Investment Pool

 

Cash flow continues to be strong despite the increased costs of the COVID-19 response.

 

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 $24,961 for the pool as of December 31, 2020.   

 

Calendar Year Operations through April 30, 2021

Revenues – Actual revenues District-wide are 40.5% above projections at 73.8% with 33.3% of the year elapsed. This is typical for the first part of a year as Food and other annual EH permits are billed in January and the first half of the State Public Health funding of $1.7M is received. 

 

Approximately $3.5M of unbudgeted COVID-19 billings are included in revenue.    

 

Billing to recover approximately $1M of FEMA-funded costs has not been completed as of the report date as contracts between the District and Snohomish County Department of Emergency Management (DEM) and between DEM and the Washington State Department of Health have not been fully executed.  That revenue will be recorded when the contracts are executed and billing is completed.  This is the primary reason that COVID-19 revenue lags COVID-19 expenditures.

 

Expenditures – Actual expenditures District-wide are 24.9% above projections at 58.2% with 33.3% of the year elapsed. Many dues and membership fees such as NACCHO & software licenses are paid annually in January. Additionally, the prepaid cost of general insurance at December 31, 2020 for January to August 2021 was reversed and recorded as expenditures. 

 

Approximately $4.6M of unbudgeted COVID-19 expenditures are included in expenditures, including significant costs for temporary services (in professional services), rents & leases, and supplies.  A number of COVID-19 programs cannot recover overhead via an applied indirect rate, however actual overhead can be recovered by direct billing those costs, primarily labor.  Those programs have had the overhead allocation removed.  This can change as funding changes and is dependent on the funding source.

 

Fund Balance

SHD’s General Fund Balance is comprised of the following amounts as of April 30, 2021. 

 

Fund Balance

Non-Spendable

$62,569

Board-Approved Reserves:

Working Capital

1,991,048

Compensated Absences

1,417,000

Capital Improvements

70,000

Emergency

500,000

Rucker Building - Reserve from 2015 Water Damage

134,822

Estimated Programmatic Restricted Funds

1,930,252

Unreserved

8,170,198

Total Fund Balance

$14,275,889

 

 

 

 

 

 

                           

Restricted Programmatic Funds carried over from 2020 are included in the financial statements.  These amounts will be updated for year-end closing totals in the May report.

 
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

 No action required. Written report only.

 
ATTACHMENTS:
Description
April 2021 Financial Statements