SJVIA Cash Flow Projections SJVIA Auditor Treasurer Lawrence - PowerPoint PPT Presentation

SJVIA Cash Flow Projections SJVIA ‐ Auditor ‐ Treasurer Lawrence Seymour December 08, 2016

Balance Sheet at 11/30/16 ASSETS Current assets: Cash and cash equivalents $ 1,625,016 Due from other governmental units 200,000 Total current assets 1,825,016 Noncurrent assets: Restricted cash with fiscal agent 1,250,618 Total noncurrent assets 1,250,618 Total assets 3,075,634 LIABILITIES Current liabilities: Accounts payable 2,628,609 Unearned member contributions 1,566,795 Unpaid claims and claims adjustment expenses 2,000,000 Total current liabilites 6,195,404 Noncurrent liabilities: Due to other governments 884,432 Loans payable 4,000,000 Total noncurrent liabilities 4,884,432 Total liabilities 11,079,836 NET POSITION Unrestricted (8,004,202) Total net deficit $ (8,004,202)

Balance Sheet Elements • Assets: Resources with present service capacity that the government presently controls. • Cash: Cash in SJVIA bank accounts • Due from other governments: Amounts due to cover current premiums / claims costs • Restricted cash with fiscal agent: Advanced claims deposit under the control of Anthem Blue Cross • Liabilities: Present obligations to sacrifice resources that the government has little or no discretion to avoid. • Accounts Payable: Represents 2 County of Fresno vendor premium payments • Unpaid claims provision: includes $1,200,000 US Script invoice, $450,000 HMO Weekly Minimum Claim, $350,000 for daily PPO claims (staff estimates) • Due to other government: Startup costs from SJVIA inception • Loans Payable: $2million loans from both County of Tulare and County of Fresno

Balance Sheet Elements (continued) • Net Position: The residual of all other financial statement elements presented in a statement of financial position (i.e. equity)

Balance Sheet Liquidity Analysis • Current Ratio: • Current Assets / Current Liabilities • $1,825,016 / $6,195,404 or 29.5% • Indicates a lack of current assets to liquidate current liabilities – An ideal ratio would be 100% or greater • An ideal ratio would be 100% or greater, indicating possession of adequate current assets to liquidate current liabilities

Month End Cash Balances $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ ‐ Actuals through 11/30/2016, Average gain/loss used to project out to December 2016

Month Over Month Analysis • Average change month over month of ($193,992) for the period July 1, 2014 through December 31, 2016 (30 months) • Amount includes the effect of the $4,000,000 influx of cash as a result of loans from both the Counties of Tulare and Fresno • Average change month over month of ($327,325) for the same period, with the effect of the loans removed • Total loss of $9,819,749 over the period, not including the effect of the loans

1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 ‐ 11/01/16 11/03/16 11/05/16 11/07/16 11/09/16 11/11/16 11/13/16 11/15/16 11/17/16 11/19/16 SJVIA Daily Cash Balance 11/21/16 11/23/16 11/25/16 11/27/16 11/29/16 12/01/16 12/03/16 12/05/16 12/07/16 12/09/16 12/11/16 12/13/16 12/15/16 12/17/16 12/19/16 12/21/16 12/23/16 12/25/16 12/27/16 12/29/16 12/31/16

Daily Cash Flow Data & Assumptions • Used actual transactions for the month of November, 2016 • Used estimates for the months of December 2016 and January 2017 • Used most recent entity payments and supporting documentation to project premium receipts • Used data from the past 5 – 6 months, adjusted for those entities that are departing 12/31/16, to estimate claims amounts

Claims Runout by Month $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ ‐ Jan Feb Mar Apr May June July Aug Claims Runout by Month

Claims Runout • 18 Entities leaving, expected claims runout of $2,258,179 dollars (See GBS item #11) • 68%, or $1,535,562 in January 2017 • 14%, or #316,145 in February 2017 • Remaining 18%, or $406,472 March 2017 through August 2017