Cedar Sinai Park
FY 2015 Financial Report
and
FY2016 Budget Report
Sandra C. Simon, Chief Operating Officer
Bobbie J. Jenkins, Chief Financial Officer
August 25, 2015
Board Presentation
Fiscal Year 2015
Successes
Page 2
•
Improved Accounting/Finance Department due to process improvements
and accurate system implementation(s), examples noted below, but not
limited to three items:
• Revenue/billing cycle ongoing – Vision System
• AP – updated to current as of June 30, 2015, to avoid continuous and
historical late fees; as of July 1, 2015 having to hold AP due to three
pay periods in July and low cash flow
• Simplified and consolidated banking operations
•
Improvements in Culinary Department in both expense reductions and
improved quality
•
Improved RSM census
•
Reduction in overtime management and continuous monitoring and
tracking
•
Improved Quality Oversight
Fiscal Year 2015
Financial Report
Executive Summary Highlights
Statement of Financial Position
ASSETS

Cash and Cash Equivalents decreased from prior year $180,311. Days cash in hand is 7.5 days
(includes only operating cash and excludes capital reserves which is for the Capital Campaign).
The days cash on hand represents the number of days of operating expenses that CSP could pay
with its current cash available. Industry standard is typically 75 to 90 days cash in hand, 2.5 to 3.0
months.

Total current assets decreased approximately $350,000 compared to prior year due to decrease
in pledge receivables.

Net property, plant and equipment increased from prior year due to increases in construction in
progress related to the new building.

Total other assets decreased approximately $1.5 million compared to prior year due to the
collection of the developer fee receivable, which was transferred to CSP investment accounts and
is recorded on the Statement of Financial Position under board designated. These funds are
currently being held for the Capital Campaign and not used for operating purposes.

Total assets compared to prior year increased approximately 4.3 percent, representing an
increase of approximately $1.4 million.
LIABILITES and NET ASSETS

Total liabilities decreased approximately $845,000 compared to prior year mainly due to
decreases in interdivisional payables and prepaid resident fees.

Total net assets increased approximately $2.3 million compared to prior year due to increases in
unrestricted net assets.
Working capital, excluding Capital Campaign funds, represented 1.3 times compared to prior year
of 0.7 times
The working capital ratio (Current Assets/Current Liabilities) indicates whether a company has
enough short term assets to cover its short term debt. Anything below 1 indicates negative
working capital.
Summarized Statement of Activities

Total revenues remained fairly flat compared to budget at $22.5 million.

Total operating expenses decreased slightly compared to budget by approximately $191,000.

Total change in unrestricted net assets representing $2.6 million increased slightly compared to
budget by approximately $99,000.

However, management expects unrestricted net loss to be greater due to potential adjustments
not incorporated within the draft unaudited financial results as of the current date.
Page 3
Page 4
CSP - Assets
Statement of Financial Position
as of June 30,
Assets
Current Asets
Cash and Cash Equivalents
Resident Accounts Receivable
Capital Replacement Reserves
Pledges Receivable, current portion
Other receivables
Supplies
Prepaid Expenses
Assets whose use is limited-debt reserves
Total Current Assets
Property, plant and equipment, at cost
Land, building and building improvements
Equipment and vehicles
Construction-in-process
Less: accumulated depreciation
Net property, plant and equipment
Assets Whose Use is Limited
Donor restricted
Board designated
Debt reserves, net of current portion
Total Assets Whose Use is Limited
Other Assets
Pledges Receivable , net of current portion
Bond issuance costs
Capital investments
Notes receivable
Interdivisional receivable
Developer fee receivable
Funds Held in Trust
Deposits
Total Other Assets
Total Assets
RJHC
Audited
2014
$
364,434 $
724,415
2,587,133
275,204
14,864
50,067
4,016,117
RSM
Audited
2014
Unaudited
Combined
2014
171,943 $
536,377
31,783
756,198
2,587,133
275,204
38,891
53,755
16,106
66,173
348,642
348,642
607,365
4,623,482
Unaudited
Combined
2015
$
356,066
799,491
874,804
1,228,373
478,047
59,889
117,255
358,898
4,272,823
7,955,573
1,827,930
914,452
(5,896,356)
4,801,599
21,555,686
1,743,602
(11,262,827)
12,036,461
29,511,259
3,571,532
914,452
(17,159,183)
16,838,060
29,698,995
3,730,791
2,166,018
(18,157,484)
17,438,320
781,939
5,563,926
6,345,865
12,993
697,369
710,362
781,939
5,576,919
697,369
7,056,227
586,955
8,579,232
697,369
9,863,556
800,402
800,402
91,941
91,941
612,200
612,200
590,420
590,420
194,872
20,651
215,523
2,203,320
2,203,320
2,858
2,858
180,971
180,971
4,585,043
112,592
4,697,635
$ 19,748,624 $ 13,466,780 $ 33,215,404
1,173,471
148,282
647,770
581,420
330,722
3,126
197,361
3,082,152
$ 34,656,851
Page 5
CSP – Liabilities and Net Asset
Statement of Financial Position
as of June 30, 2015
RJHC
Audited
2014
Liabilites and Net Assets
Current Liabilites
Accounts payable
Salaries and wages
Payroll taxes and benefits
Compensated annual leave
Accrued interest
Prepaid resident fees
Current portion of bonds payable
Interdivisional payable, current portion
Total Current Liabilities
Unaudited
Combined
2015
667,606
216,106
50,464
309,538
89,892
144,161
345,000
1,023,665
2,846,432
-
6,506,553
6,506,553
6,506,553
6,506,553
6,210,000
511,843
6,721,843
Other liabilities
Refundable advance
Resident deposits
Funds held in trust for residents
Total Other Liabilities
1,000,000
16,383
2,852
1,019,235
91,400
91,400
1,000,000
107,783
2,852
1,110,635
72,364
1,000,000
110,417
3,186
1,185,967
Total Liabilities
2,881,151
7,582,469
10,463,620
9,617,803
5,495,241
5,563,926
11,059,167
5,852,158
5,852,158
11,347,399
5,563,926
16,911,325
13,725,860
6,823,107
20,548,967
5,808,306
32,153
5,840,459
16,867,473
5,884,311
22,751,784
$ 19,748,624 $ 13,466,780 $ 33,215,404
4,489,911
25,038,878
$ 34,656,681
Net Assets
Unrestricted
Board designated
Total Unrestricted
Temporarily restricted
Total Net Assets
Total Liabilites and Net Assets
483,960 $
84,239
50,464
219,588
1,023,665
1,861,916
Unaudited
Combined
2014
183,646
131,867
89,950
89,892
144,161
345,000
984,516
Long term liabilites
Bonds payable, net of current portion
Interdivisional (payable), net of current portion
Total Long-Term Liabilites
$
RSM
Audited
2014
$
757,280
76,364
84,996
334,357
86,730
365,000
5,267
1,709,994
CSP - Foundation
Statement of Financial Position
as of June 30, 2015
Audited
2014
Assets
Current Assets
Checking - Foundation
Interdivisional Receivable
Total Current Assets
$
Assets Whose Use is Limited
Total Assets Whose Use is Limited
Note Receivable
Note Receivable - RS Tower
Total Assets
Liabilites and Net Assets
Current Liabilites
Due to RSM -financial assistance
Net Assets
Permanently restricted
Total Liabilites and Net Assets
500,000
500,000
Page 6
Unaudited
2015
$
10,522
10,522
2,972,934
3,493,846
7,601,008
$ 11,073,942
7,776,008
$ 11,280,375
$
$
138,087
92,590
10,935,855
11,187,785
$ 11,073,942
$ 11,280,376
CSP – O’Brien
Statement of Financial Position
as of June 30, 2015
Audited
2014
Assets
Current Assets
Other Receivables
Property, plant and equipment, at cost
Land
Buildings
Accumulated depr-bldg
Net Property, plant and equipment
$
2,000
Page 7
Unaudited
2015
$
-
37,240
95,760
(76,013)
56,987
37,240
95,760
(79,205)
53,795
Total Assets
$ 58,987
$ 53,795
Net Assets
Unrestricted
Permanently restricted
$ (74,013)
133,000
$ (79,205)
133,000
Total Net Assets
$ 58,987
$ 53,795
CSP
Statement of Activities
Excludes Sinai, Kehillah, and Affordable Housing
For the Fiscal Year Ended June 30, 2015
Unaudited
Actual
$
Budget
$
Fav/(Unfav)
Variance
$
Revenue
Robison Jewish Health Center
Rose Schnitzer Manor
Corporate Office
Other Income and Expense
Adult Day Services
O'Brien
Foundation
Total Revenue
9,116,721
8,016,645
75,401
4,254,359
227,442
47,474
779,987
22,518,028
9,765,063
7,475,857
227,760
4,383,060
179,283
46,500
425,500
22,503,023
(648,342)
540,788
(152,359)
(128,702)
48,159
974
354,487
15,005
10,915,787
7,488,116
689,560
237,225
145,840
14,146
466,599
19,957,273
11,189,198
7,379,248
297,685
417,751
141,966
6,892
608,601
20,041,341
273,411
(108,868)
(391,875)
180,526
(3,874)
(7,254)
142,002
84,068
(1,799,065)
528,529
(614,159)
4,017,133
81,602
33,328
313,388
2,560,756
(1,424,135)
96,609
(69,925)
3,965,309
37,317
39,608
(183,101)
2,461,682
(374,930)
431,920
(544,234)
51,824
44,285
(6,280)
496,489
99,074
Operating Expenses
Robison Jewish Health Center
Rose Schnitzer Manor
Corporate Office
Other Income and Expense
Adult Day Services
O'Brien
Foundation
Total Operating Expenses
Change in Unrestricted Net Assets
Robison Jewish Health Center
Rose Schnitzer Manor
Corporate Office
Other Income and Expense
Adult Day Services
O'Brien
Foundation
Total Change in Unrestricted Net Assets
Page 8
Page 9
Fiscal Year 2016
Budget Process
•
Zero-based Budget
information and data
implementation,
consideration
of
•
Executive Staff set financial targets for both RSM and RJHC
•
Payroll set at 2-percent increase
•
Expenses to remain flat or reduced where controllable
•
Administrators and Managers did first iteration of the budget
historical
Page 10
Fiscal Year 2016
Budget Assumptions
•
Increased RSM census from actual average of approximately 90 percent
to 96 percent
•
RJHC census to remain at 89 percent, payor mix changes to occur
during 2015-2016 fiscal year
•
Reduced overtime from approximately 9 to 10 percent to 3 percent
•
Staff to receive pay increase of 2 percent retroactive to August 1, 2015
•
Budgeted to add Chief Operating Officer in November 2015
•
Budgeted to add Senior Development Director in January 2016
Page 11
Fiscal Year 2016
Potential Risks
•
Unable to maintain budgeted census due to construction
•
Staff recruitment issues due to competition in the current market place
could result in increased overtime
•
Possible variances in FY2016 budget due to continuous right sizing of
operations, and based on the fact that historical information has not
been always accurate
•
Finance team continuing ongoing process improvements; continuing to
build the foundation
•
Staff training costs due to Green House Project and SNF could be
higher than expected, construction budget estimated at $100,000
•
Resident relocation could increase
estimated at $100,000
costs, construction
budget
Page 12
Draft Budget Fiscal Year 2016
Financial Report
Executive Summary Highlights

Total revenues are anticipated to remain stable from FY2015 unaudited financial results at
$19.5 million.

Total expenses are anticipated to remain stable from FY2015 unaudited financial results at
$19.8 million.

Total change in unrestricted net assets for the FY2016 budget compared to the FY2015
unaudited financial results represents a net loss of approximately $373,000, compared to a net
loss of $459,000 respectively. However, management expect loss to exceed $459,000 due to
potential adjustments.

To address a census risk with regard to RSM, the sensitivity draft budget represents RSM at
90-percent capacity and no changes to operating expense. A 90-percent capacity without any
consideration to changes in operating expenses reports a net loss for RSM of approximately
$51,000.

However, if management were to notice a potential reduction in census compared to the
FY2016 budget, certain cost-savings measures and cost-cutting would be taken into
consideration in order to be budget neutral. Management is currently looking to be more
proactive with its operations at RSM regarding census rather than reactive.
CSP
DRAFT Summarized Statement of Activities
For the Fiscal Year Ended June 30,
FY2015
Unaudited
Actual
$
FY2015
Budget
$
FY2015
Fav/(Unfav)
Variance
$
FY2016
Draft
Budget
$
Page 13
Sensitivity
Analysis
Draft
Budget
$
Revenue
Robison Jewish Health Center
Rose Schnitzer Manor
Corporate Office
Other Income and Expense (less CC)
Adult Day Services
O'Brien
Foundation
Total Revenue
9,116,721
8,016,645
75,401
1,141,403
227,442
47,474
779,987
19,405,073
9,765,063
7,475,857
227,760
2,883,060
179,283
46,500
425,500
21,003,023
(648,342)
540,788
(152,359)
(1,741,657)
48,159
974
354,487
(1,597,950)
9,232,638
8,531,725
65,836
1,100,450
232,322
3,996
284,786
19,451,754
9,232,638
8,113,473
65,836
1,100,450
232,322
3,996
284,786
19,033,502
10,915,787
7,488,116
689,560
144,318
145,840
14,146
466,599
19,864,366
11,189,198
7,379,248
297,685
217,751
141,966
6,892
608,601
19,841,341
273,411
(108,868)
(391,875)
73,433
(3,874)
(7,254)
142,002
(23,025)
10,509,716
8,164,661
352,936
99,000
148,480
469
549,320
19,824,582
10,509,716
8,164,661
352,936
99,000
148,480
469
549,320
19,824,582
(1,799,066)
528,529
(614,159)
997,086
81,602
33,328
313,388
(459,292)
(1,424,135)
96,609
(69,925)
2,665,309
37,317
39,608
(183,101)
1,161,682
(374,931)
431,920
(544,234)
(1,668,223)
44,285
(6,280)
496,489
(1,620,974)
(1,277,078)
367,064
(287,100)
1,001,450
83,842
3,528
(264,534)
(372,829)
(1,277,078)
(51,188)
(287,100)
1,001,450
83,842
3,528
(264,534)
(791,080)
Operating Expenses
Robison Jewish Health Center
Rose Schnitzer Manor [a]
Corporate Office
Other Income and Expense (less CC)
Adult Day Services
O'Brien
Foundation
Total Operating Expenses
Change in Unrestricted Net Assets
Robison Jewish Health Center
Rose Schnitzer Manor
Corporate Office
Other Income and Expense
Adult Day Services
O'Brien
Foundation
Total Change in Unrestricted Net Assets
CC = Capital Campaign
[a] Expenses have not been adjusted for decrease in census (revenues) for presentation purposes only.