BIHS: the financial picture
Here is a summary of the financial report given at the BIHS meeting Monday, December 17.
The discussion focused on two areas, the cash position of the center right now, and the proposed budget for 2013.
A cash shortage is the reason for the extraordinary draw on the endowment, to the tune of $211,000. Treasurer Pete Tweedy reported that, at the end of the 2011 calendar year, the balance sheet included $46,000 in payables, including $12,000 on a credit card. As of the date of the meeting, the payables are $6,000, evenly split between a credit card balance and payments due. He indicated that management had a policy to pay bills promptly, always within 30 days.
Accounts receivable (patient fees not yet collected) were $96,000 at the end of 2011 and $154,000 now.
Tweedy said that the hope is that when the payment is received from the overdue accounts, some of the money drawn from the endowment may be replaced.
The discussion of the 2013 budget was just that — a discussion. No final decisions were made and the vote to approve was deferred to a later date.
The budget as proposed anticipates next year's income from patient fees, insurance payments and facility fees to be about $11,000 more than anticipated revenues for 2012. (It is important to note that income reflects monies billed for services, and not cash received.)
Expenditures as presented reflect $29,000 more than the estimated actual for 2012, which is $42,000 more than budgeted.
The budget as presented for discussion acknowledges the fall-off in donations from previous years, from a budgeted $146,000 in 2012 to an actual estimated total of $97,600 for 2012, and a projected $100,500 for 2013. Members of the BIHS board talked of launching an effort to add to contributions through enhanced fundraising programs. Another option, board members said, would be to ask the town for more money.
The proposed budget at this stage projects a cash shortfall of just more than $144,000, an unusual situation as boards and organizations usually strive to present a balanced budget.