You are here: Home University Boards Quality and Charity Care Trust minutes Board of Directors Quality and Charity Care Trust Inc.

Board of Directors Quality and Charity Care Trust Inc.

by Bendl,Kurt last modified Jan 21, 2010 04:56 AM

February 18, 2004, In Open Session

The Nominating Committee of the Quality and Charity Care Trust Inc., met on Wednesday, February 18, 2004, at 11:30 a.m. in the Jefferson Room of Grawemeyer Hall, Belknap Campus, with members present and absent as follows:

Present: Mr. William Mulloy Sr., Chair
Dr. Joel Kaplan

Absent: Ms. Mary Gwen Wheeler

From the University: Mr. Glenn Bossmeyer, Assistant University Counsel
Ms. Kathleen M. Smith, Assistant Secretary
Ms. Debbie Dougherty, Board Liaison

I. Call to Order

Having determined a quorum present, Chairman Mulloy called the meeting to order at 11:30 a.m.

Discussion

The committee noominated the following slate of officers for FY 2004:

  • Joel A. Kaplan, Chairman
  • Marie Abrams, Vice Chair
  • Mike Curtin, Secretary-Treasurer
Adjournment

There being no further business to discuss, the meeting adjourned at 11:38 a.m.

Board of Directors Quality and Charity Care Trust Inc.

February 18, 2004, In Open Session

The Board of Directors of the Quality and Charity Care Trust Inc., met on Wednesday, February 18, 2004 at 12 noon in the Jefferson Room of Grawemeyer Hall, Belknap Campus, with members present and absent as follows:

Present: Mr. Larry L. Owsley, Chairman
Mr. William Mulloy Sr., Vice Chairman
Mr. Mike Curtain
Mr. Jane Driskell
Dr. Joel Kaplan
Ms. Mary Gwen Wheeler

Absent: Ms. Marie Abrams
Dr. William VonderHaar

From the University: Mr. Glenn Bossmeyer, Assistant University Counsel
Mr. Robert Barbier, Vice President and CFO, University Hospital
Mr. William Guy, Assistant to the Vice President for Business Affiars
Mr. Rex Davidson, Manager of Foundation Accounting, Controller's Office
Ms. Kathleen Smith, Assistant Secretary
Ms. Debbie Dougherty, Board Liaison

Guests: Mr. Bernie Backert, Deloitte and Touche

I. Call to Order

After determining a quorum present, Chairman Owsley called the meeting to order at 12:10 p.m. He welcomed new board member, Mike Curtin. Mr. Curtin is Vice President for Finance at the University of Louisville.

II. Approval of Minutes

Mr. Mulloy made a motion, which Dr. Kaplan seconded, to approve the minutes of June 25, 2003. The motion passed unanimously.

III. Report of the Ombudsperson

Mr. Barbier informed the QCCT board that Mr. John Nord, business office manager for University Hospital, reported there were no issues. Mr. Barbier will submit a written report confirming this information to Dr. Joel Kaplan for the record.

IV. Report of the Nominating Committee

Mr. Mulloy reported the Nominating Committee met at 11:30 a.mm. on February 18. He made a motion, which Ms. Driskell seconded, to approve the following slate of officers for 2004.

Dr. Joel Kaplan, Chairman
Marie Abrams, Vice Chair
Mike Curtin, Secretary-Treasurer

The motion passed unanimously.

V. Action Item: Approval of Audited Financial Statements for FY 2003

Mr. Curtin reported that Deloitte and Touche, LLP issued a clean, unqualified opinion for the FY 2003 financial statements. Mr. Curtin introduced the university's external auditor, Mr. Bernie Backert of Deloitte and Touche. Mr. Backert said the total annual funding provided from the three governmental sources, as specified by the trust agreement amounted to $30.6 million for the year ended June 30, 2003. For the fiscal year ended June 30, 2003, the Trust's total assets were $203,000 compared to $1.5 million for the year ended June 30, 2002. The decrease resulted from the receipt during the year ended June 30, 2003 or the $1.4 million government funding receivable from Jefferson County. For fiscal year ended June 30, 2003, the Trust remitted $31.9 million to the UMC as compared to $28.8 million for the year ended June 30, 2002. For year ended June 30, 2003, the total hospital charges for the indigent patients at 100 percent of billing rates, established by UMC for hospital care were $149.2 million, an increase of 27 percent over last year's total of $117.2 million. According to the Trust Agreement, only 58 percent, or $86.5 million, of these billed charges are eligible for reimbursement. Funding for the Trust amounted to $30.6 million for the year, leaving $55.9 million in eligible patient billing needs that were not reimbursed.

Mr. Backert said the major factors that affecting funds remitted to the Trust are changes in the consumer price index (CPI), collection of tax revenues by the contributing governments, and amendments to the Trust Agreement. The annual Trust funding required from the city of Louisville, Jefferson County and the Commonwealth of Kentucky was established by the Agreement, last revised in February, 1996. He confirmed any funding increase is determined by a formula that considers the lesser of the annual increase in the consumer price index or each government's rate of increase in tax revenues. Mr. Backert said for year ending June 30, 2004, the Trust will receive total combined funding amounting of $307.7 million.

Mr. Backert reported the Statement of Assets and Liabilities as of June 30, 2003 and 2002:

ASSETS 2003 2002

Cash 2003 - $1,076; 2002 - $ 87

Investments-US Government Agencies 2003 - $199,939; 2002 - $184,764

Government funding receivable from Jefferson Co. -- 2002 - $1,360,400

Other Assets 2003 - $2,429; 2002 - $2,008

Total Assets 2003 - $203,344; 2002 - $1,547,259

 

LIABILITIES

Accrued administrative expenses 2003 - $14,558; 2002 - $10,300

Due to University Medical Center, Inc. 2003 - $188,786; 2002 - $1,536,959

Total Liabilities 2003 - $203,344; 2002 - $1,547,259

Mr. Backert reviewed the following Statement of Changes in Balance Due to University Medical Center, Inc.

2003 2002

Balance due to University Medical Center-beginning of year 2003 - $1,536,959; 2002 - $134,767

Receipts:

Government funding 2003 - $30,556,836; 2002 - $30,148,455

Interest income 2003 - $34,898; 2002 - $56,762

Total Receipts 2003 - $30,591,734; 2002 - $30,205,217

 

Disbursements

Distributions to University Medical Center, Inc.

-indigent care 2003 - $31,917,232; 2002 - $28,787,542

Administrative expenses 2003 - $22,675; 2002 - $15,483

Total Disbursements 2003 - $31,939,907; 2002 - $28,803,025

Balance due to University Medical Center, Inc.-end of year 2003 - $188,786; 2002 - $1,536,959

Mr. Backert reported the financial records are in excellent order and the hospital maintains an indigent care patient log. In response to Mr. Owsley’s inquiry concerning possible administrative improvements, Mr. Backert said the current procedures work very well and he did not recommend any significant changes. In response to Ms. Wheeler’s inquiry how charges are assessed relating to different rates, Mr. Backert responded the charges are fully loaded less the allowance. The patient is billed after appropriate adjustments are made. The log reports all funding sources. All transactions processed in a given Trust year are accumulated, by patient, in a log for that year. With the exception of year-end, in-house patients and patients discharged but not yet finally billed, transactions are generally recorded in the Log at the time of final billing and are categorized by the Trust year in which the patient is billed.

Ms. Driskell requested billing information/component units be supplied. Mr. Backert noted that GASB 39 provides additional guidance to determine whether certain organizations for which the primary government is not financially accountable should be reported as component units based upon the nature and significance of their relationship with the primary government. Mr. Backert said that auditors for QCCT and University Medical Center are involved in reviewing the files. Mr. Barbier confirmed that Ernst & Young, LLP are the UMC auditors. Mr. Owsley asked that once this determination is made, the auditors should notify Mr. Curtin. Ms. Wheeler made a motion, which Dr. Kaplan seconded, to approve the

Chair's recommendation that the Board of Directors accept the audit report for the Quality and Charity Care Trust Inc. for the year ended June 30, 2003 as prepared by Deloitte and Touche.
The motion passed unanimously.
VI. Action Item: Approval of Signature Authority

Upon receiving the signature authority document, Mr. Mulloy made a motion, which Dr. Kaplan seconded, to approve the

Chair's recommendation that the Board of Directors adopt the attached resolution allowing the following officers or employees of the University of Louisville be empowered to sign checks on or withdrawal requests subject to the conditions of the attached resolution in the name of the Quality Charity Care Trust.
The motion passed unanimously.
VII. Action Item: Approval of Amendment of Bylaws

Mr. Owsley said the purpose of the bylaws amendment was to reflect the change to the merged government. In response to Ms. Wheeler’s inquiry, Mr. Bossmeyer acknowledged the number of merged government representatives remained constant with the change; the change reflects the consolidation of City of Louisville and Jefferson County into Louisville Metro Government representation. The procedures remained the same. Mr.Mulloy made a motion, which Mr. Curtin seconded, to approve the

Chair’s recommendation that the Board of Directors approve an amendment of By-Laws Article II, Section 2.1 Board of Directors, as follows:
Section 2.1 Board of Directors. Effective May 1, 1983, the government of the Corporation shall be vested in a Board of Directors composed of six persons appointed by the Board of Trustees of the University of Louisville (one of whom will be selected upon the recommendation of the Governor of the Commonwealth of Kentucky) and three other directors selected by the Board of Trustees, two from a list of at least five nominees submitted by the Mayor of Louisville Metro and one from a list of three nominees submitted by the Louisville Metro Board of Health .

The motion passed unanimously. In response to Ms. Wheeler’s inquiry concerning terms and process for appointment, Ms. Smith noted the terms are for three years; prior to the expiration of appointment, the President writes to the appropriate agency and request nominees. Mr. Owsley noted the Trust Agreement should be amended to reflect the change to Louisville Metro Government. The current Trust Agreement refers to Jefferson County and the City of Louisville . He confirmed that under the current Trust Agreement, the contracts are still in effect. Ms. Driskell said the time frame on all laws is five years. Contracts are reviewed as expiration dates approach; new contracts are with Metro Government. Dr. Kaplan will pursue the necessary changes.

VIII. Other Business

Mr. Curtin reported originally the cost escalator for QCCT was not included in the Governor’s budget recommendation; however, those figures are now included. Mr. Curtin anticipates no problems with state funding. Mr. Curtin introduced Mr. Rex Davidson, CPA, accounting manager in the Controller’s Office who works with cost escalators and budget calculations.

The next meeting of the QCCT Board will be in May, 2004. Ms. Driskell requested a more frequent schedule of cost calculations and assessments. Although more frequent calculations would not be audited (external auditing is performed at year end), Mr. Barbier agreed to supply information on the current year-end basis and one additional time throughout the year. Ms. Driskell also asked if previous year data could be included. Ms. Wheeler requested an updated list of the board membership. Dr. Kaplan thanked Mr. Owsley for his excellent service as chair.

VIII. Adjournment

Ms. Wheeler made a motion, which Mr. Curtin seconded, to adjourn the meeting at 12:40 p.m. The motion passed unanimously.


Document Actions
Personal tools