Item Coversheet
July 29, 2021
Written Reports

Finance Manager's report for May 2021 (SR 21-072; T. Kellogg)

Administration / Tracey Kellogg, CPA, Finance Manager 
Prior Board Review:
Administration Committee, 7/28/21 



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.


Voucher Reports

We propose changing the reporting period for vouchers presented to the Administration Committee and the Board from calendar month, to the 16th of the prior month to the 15th of the current month. We issue vouchers on the 8th and 23rd of the month, so Administration Committee packets are provided prior the second check run of the month which causes a lag in reporting when the voucher report is run on a calendar month.


Cash and Investments at May 31, 2021

Cash                                      $1,850,945

Investments                        $11,536,906

Comprised of:

  • $9.0 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.


Calendar Year Operations through May 31, 2021

Revenues – Actual revenues District-wide are 44.2% above projections at 85.9% with 41.7% 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. 


In addition, approximately $5.3M of unbudgeted COVID-19 billings are included in revenue.    


Billing to recover approximately $1.5M of FEMA-funded costs has not been completed as of the report date as the contract between the District and Snohomish County Department of Emergency Management (DEM) has not been fully executed.  That revenue will be recorded when the contract is executed and billing is completed. This is the primary reason that COVID-19 revenue lags COVID-19 expenditures.


Expenditures – Actual expenditures District-wide are 30.7% above projections at 72.4% with 41.7% 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 $5.8M 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. This can change as funding changes and is dependent on the funding source.


Fund Balance

The District’s General Fund Balance is comprised of the following amounts as of May 31, 2021. 


Fund Balance



Board-Approved Reserves:

Working Capital


Compensated Absences


Capital Improvements




Rucker Building - Reserve from 2015 Water Damage


Estimated Programmatic Restricted Funds




Total Fund Balance
















Estimated programmatic restricted funds at 12/31/2020 were previously reported at $1,930,252. After closing 2020 and filing the Annual Finance Report with the State Auditor’s office, actual programmatic restricted funds were $1,839,829. Those reserves were reversed in 2021 and are available for program use in the current year.

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. 
May 2021 Financial Statements