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
• f adequate current assets to liquidate current liabilities

Month End Cash Balances

$‐ $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 $10,000,000 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 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

SJVIA Daily Cash Balance

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

$‐ $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 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