Treasurer’s Report UNOS Board of Directors Meeting June 25-26, 2012

 Fiscal year (FY) 2011 financial results  Consolidated audit report for FY 2011  Proposed budget for FY 2013 UNOS Items to be Presented

 FY 2011 is from Oct Sept  Revenue = $43,390,904  Approx. $2,271,000 less than budget  Expenses = $42,752,037  Approx. $1,199,000 less than budget  Capital expenditures = $4,908,864  Approx. $2,862,000 greater than budget due to purchase/opening of Jackson Center property. FY 2011 Financial Results

 Change in net assets = ($356,919) -.84% of unrestricted revenue Loss due to timing of Chrysalis Revenues and expenses. $600,000 of unused revenue in FY 2010, expenses in FY  Complied with bond covenants, requiring debt service ratio of at least 1.0 – 1.5 and $2M in unrestricted cash. FY 2011 Financial Results

 Consolidated Audit: UNOS, UNOS Foundation and OPTN A-133 Audit.  Conducted by Cherry Bekaert & Holland, a regional audit firm. First year of a three year term with CBH.  Results reviewed and discussed during April 2012 Committee conference call  Audit report is included on the OPTN Board CD FY 2011 Audit

 Unqualified or “clean” opinion issued on UNOS financial statements and OPTN operations  No material weaknesses in internal controls or non-compliance with federal or contract requirements  A significant deficiency was identified. Item addressed by UNOS Management.  UNOS is considered a low-risk auditee. FY 2011 Audit

 Board of Directors action required:  RESOLVED, that the 2011 UNOS consolidated audited financial statements for the period ended September 30, 2011 as audited by Cherry Bekaert & Holland are hereby approved. FY 2011 Audit

 Due to bankruptcy of HISF and the closure of the hospital, OPTN and UNOS fees are deemed to be uncollectable.  An allowance for $10,658 in UNOS fees from HISF was incorporated in the UNOS financial statements. No financial impact to FY FY 2011 Financial Results

 Board of Directors action required:  RESOLVED, that UNOS writes off unpaid computer registration fees of $10,658 from HISF. FY 2011 Financial Results

 Revenue – expenses approx ($80,000)  Budget ‘profit’ is $370,000, small margin.  Revenues down over $400,000  UNOS registration fees – at least $150,000 below budget.  Rental Income – at least $100,000 below budget due to delay in leasing a floor of Jackson Center.  Registry Income – at least $150,000 below budget due to delay in securing new contracts. FY 2012 Projections

 FY 2013 is from Oct to Sept  Due to uncertainty about OPTN bid process, no major changes are incorporated in FY 2013 budget.  Once the OPTN bid process is complete, a final UNOS budget will be developed.  Next budget could be for 6 months, 12 months 18 months, ?. FY 2013 Budget

 UNOS budget, like the OPTN, expects registrations for FY 2013 to be 1,800 less than planned for the FY 2012 Budget  Due to lower registrations, an increase in the registration fee is proposed.  The FY 2013 Budget (like the FY 2012 Budget) will have a small margin compared to budget size. FY 2013 Budget

 Revenue = $46,881,338  $305,000 more than the FY 2012 Budget  Expenses = $46,599,193  $393,000 more than the FY 2012 Budget  Capital expenditures = $2,000,000  Revenues less Expenses = $282,145 . 6% of revenues  Finance Committee Goal 3%-5% FY 2013 Budget

 OPTN and UNOS fees:  OPTN fee = $651  $48 (8%) increase from $603 to $651  UNOS fee = $95  $3 (3%) increase from $92 to $95  Chrysalis fee = $30  Remains unchanged. Will be used for ongoing improvements to IT systems such as Donor Net.  Total (OPTN + UNOS) fee = $776  $51 (7%) increase from $725 FY 2013 Budget

 Board of Directors action required:  RESOLVED, that the 2013 UNOS Operating and Capital Budgets are hereby approved, as recommended by the Finance Committee, and  FURTHER RESOLVED, that the Board of Directors hereby approves the increase in the UNOS Computer Registration Fee from $122 to $125 effective October 1, 2012, and that UNOS Policy 11.0 shall be amended (shown in report). FY 2013 Budget