Budgeting: Counties and the Region Working Together June 27, 2019 MHDS of the ECR Budgeting: Counties and the Region Working Together June 27, 2019

Starting October 1st - Annual Service Budget Planning Process Starting October 1st - Annual Service Budget Planning Review Core and Mandated Services Look for trending CODs input Rough Draft

December Review individual County Fund Balance Status Send out forms to county auditors for county administrative budget drafts; due by December 31st Review County Annual Reports submitted to the Department of Management RGB receives first service budget draft

January Compile County Administrative Budgets Re-review Service Budget Draft Keep an eye on legislation Review/Project individual county fund balances Inform RGB of progress and where we stand RGB needs to determine per capita rate so counties can determine their tax levy for their MHDS portion of the budget Email county auditors the approved per capita rate

February Finalize draft ECR budget (service and administrative) Draft financial portion of Annual Service and Budget Plan (ASBP) Present draft to Advisory Board for comment Present final draft budget to RGB for comment/review/changes Start reviewing County MHDS approved budgets submitted to the Department of Management (DOM) by county auditors as they are submitted

March Compile and Review all DOM reports for accuracy against what the county submitted to ECR Address inconsistencies Re-evaluate budget and make adjustments, as required. Prepare final financial portion of the ASBP Prepare FINAL budget for RGB approval at their March meeting. (The ASBP is due to DHS on April 1st) Please note that SF634 that was signed by the Governor may extend the county filing date to the Department of Management (DOM) to March 31st, starting with the FY21 budget.

Can we change or add to the process Can we change or add to the process? Can we make this better/more streamlined? Can we do better? ABSOLUTELY!! Everyone has ideas The Regional Governing Board needs to communicate its needs and wants relative to the budget Be creative/try new approaches

Budgeting: ECR versus Non-Profit Answerable to 9 counties and the Regional Governing Board; taxpayers, stakeholders Requires DHS approval Numbers must agree with county submissions to the Department of Management Answerable to Board of Directors, stakeholders

Budget Modifications MHDS of the ECR Non-Profits Subject to budget authority (cannot spend beyond the approved budget without an approved amendment) Amendment requires sufficient cash (can’t increase tax levy), RGB approval, DHS approval Can modify with Board of Director approval with available funds

Cash versus Accrual We budget on a cash basis We report on a modified accrual basis When we incur an expense or revenue When cash comes in and cash goes out

Fiscal Year 2020 Challenges Fund Balance Spend-downs Legislation targets Inability to balance individual, submitted county budgets with their DOM submissions Timing issues DHS not providing specific directions/expectations to the people who do the accounting

Where are we now? We are at the end of the fiscal year We are looking at an approximate cash balance of $4M (represents about 16% of the FY20 budget) Counties will be billed 7/1 for their first quarter payment to the fiscal agent ($4,604,917.71)

Board Consideration? Development of Fiscal Policies based on Board Philosophy , Iowa Code, and Other Recommendations Board should determine the target amount to be held in reserve (fund balance) Funding Children’s Mental Health Setting funding priorities