HomeMy WebLinkAbout09-30-1974
Y 1iA
A
t
' FLOW MEMORIAL HOSF'iTAL
DENTON. TEXAS
r
r ,
REPORT ON ItXAMINATION OF FINANCIAL. STATEMENTS
VOPI THE YKAR KNOWD 6KI&TW4RR 30, 1074
OOOF+LRS ~ LYE3RAND
CCNTIVIKO PUBLIC ACODUNTANTB
, 1"
"Owl
h
Il-
J
C 0 N T E N T S
i
Pees) i
Accountants' Report
1
Balance Sheet T
2
Statement of Revenue and Expenses 3
i~
Statement of Changes In Fund Balances 4
e
Statement of Changes In Financial PosItloll
5
f
Notes to Financial Statements 6 7 i
r
i 1
r
i
r
t
~~MltAdf111H+A#4iAY1ry~(/] i4MItYWtuM,'HWLV1Wrttiw.w.a... -Y
r
oval
M"I
COOPERS & LYBRAND
ceaslneDPURUCACrounrnNrs
IN PA 14GIPPL AREAD
or 7NC WORLD
,
Board of Directors
Flow Memorial Hospital
ry Denton, Texas
We have examined the balance sheet of Flow Manorial Hospital as of
September 30, 1974, and the related statements of revenue and expense, changes
In fund balances, and changes In financial position for the year then ended,
Our examination was made In accordance with generally accepted auditing standards,
and accordingly Included such tests of the accounting records and such other
II auditing procedures as we considered necessary In the circumstances, The
It financial statements for the year ended September 30, 1973 were examined by
Leatherwood and Ward who have Issued their opinion under data of November 14,
1973,
i
In our opinion, the aforementioned financial statements present fairly
the financial position of Flow Memorial Hospltal at September 30, 1974 and the
results of operations and changes in financial position for the year then ended,
in conformity with generally accepted accounting principles applied on a consistent
basis, i
i
i
(Successor to the practice 01
Leatherwood and Ward)
1
p Fort Worth, Taxes
November 1, 1974
I
I~
+
1
I
' ~ NA~4r..... r.v ...an.. n~.x. nti~n.aPw+wYiu...Py.n'nNa MP~w4w N1W tM'nNw41''4anfMpFX.MMMMMI'Mll, ~'e,~tCIFLW{M~RJMM,INLLW~YY~♦ I
i
~1 X51 ~ 1 i1 ~ 1! l 1
i
1
r FLOW MEMORIAL IIOSPITAL
BALANCE SHEET r
r September 3o, 1974 and 1973
e
1,e
ASSETS
1974 1973
Unrestricted Funds: Current liabilities:
Current assets; Current portion of notes pa
Cash $ 243,962 $ 400,580 Accounts payable
Patient accounts receivable (net of estimated Accrued expenses
i uncollectibles and allowances of $344,921 Due to health care programs
i and $388,559 for 1974 and 1973 respectively) 526,298 427,005 Medicare advance
Other receivables 4,388 64,034
i I I 116,745 99,567 Total current liablll
i inventories • (Note 1)
I s
Prepaid expenses 22,968 17,408
?7 Due from health care programs 120,416 -0-
Long-term debt - (Note 3)1,
` Total current assets 11034,777 1,0081594 Nota3 payable-net of Curren'
Property, plant and equipment -(Note 1);
Land 37,547 37,547 Commitments and contingencies
~.:.J 3,649,27v 36624,316
Buildings and Improvements
u Furniture and equipment 810,737 750,235
Construction In progress 13 641 13 1 Fund balance - (Note 5)
f 1, 03 4,4'V4;
~ Less accumulated depreciation 11962,852 1,778,329
»1 2 561 2,647,410
Total 3 312 8 $3,6$6,004 Total
j Restricted Eundsl
Equipment Fund;
Cash 3)36-0 $ 26305 „ Fund balance
Total 60 2.32 Total
i
The accompanying:6ates are an Integral part
of the finlnclal statements,
k
2
j
, t 1. ~ 41.
t ;
IL n 1
`UAL HOSPITAL "
''E SHEET t
u 1974 and 1973
4
{ LIABILITIES AND FUND BALANCE
Current liabilities; 1974 1973
Current portion of notes payabia
x Accounts payable S 4,034 $ 8,243
Accrued expenses 155,859 155,754
Due to health care programe 147,999 160,336
Medicare advance .J
16,749
43 ,475
Total current lfabflltfes {
3----.Q.7,e92 384,557
f
Long-term debt - (Note 3):
NO WS payable-net of current portion above
Commitments and contingenr.les
- (Note 4)
Fund balance " (Note 5)
' 3,275,236 3,267,413 a;
d,
Total
231683f+ _y3.65 6 A 1
V1 I
I
Fund balance
Total 3 36
60 s job
tes are an tntepral part
clef statements,
f1 5
F
, g r
,
y / rf . ( r t•...
fi 2 t
t
.i ' t~~~ , ~ ~ ~NU~'euP21PGMMNA6~
7 ,
f r
ii rya' y
F i, t[ I , I vY S Y tf 1 Y iir ! n ,
2 1'1'~,u 1.,~ t` : "p;. i j i 1j°~., t;'~ 4l.. 1 ` t ~ ;+i „ rt..t1 ~ ~ Y. ,Y s ;,'.3 4 ~ . e ~~t1 •.i
ji,.
h
FLOW MEMORIAL HOSPITAL
STATEMENT OF REVENUE AND EXPENSE
for the years ended September 30, 1974 and 1973
I
~i
1974 1973
Patient service revenue
Less allowances and uncolloctlble accounts $4,142,986 $4,745,088
1 247 799) 565 166)
Net patient revenue 3,895,187 4,179,923
Other operating revenue 94,542 . 88
Total operating revenue 3,989729 4,275,091
Operating expenses;
Professional care•patlent areas
Professlcmal care-emergency services 1,247,308 1,416,868
Professional care-anclllary services 200,13 93,812
f 1,172,161 1,246,450
1.~ Professional care-service departments 82,161 83,249
DLatery 372,894 393,240
Housekeeping and property 481,351 467,226
General and adminlstratlve 479,176 504,214
Provision for ddpreclatlon - (Note 1) 195,490200,669
Total operating expenses 4,240,998 4 405 528
1 Loss from operations ( 25}_,269) ( 130,Q7)
Nonoparoting revenue;
Unrestricted contributions 247,762 178,478
Miscellaneous revenue 4,153 3,47
7 Total nonoperating revenue 251,915 182,188
Excess of revenue over expenses
The accompanying notes are an Integral part
of the financial statements,
r
r
3
of it
r
yl ~IyM.NMYWawrvr.r•...~.....~e.n...r..e_ '{l
i
r
r
ri;
FLOW MEMORIAL. HOSPITAL
STATEMENT OF CHANGES IN FUND BALANCES
for the years ended September 30, 1974 and 1973
UnrestrictedFund
County o city of Flow Estate Feral
OEeratlons Denton Denton Bequest -Grants
Balance-October 1, 1972 ($1,069,146) $1,696,871 $ 393,166 $ 240,461 $1,717,871
Prior period adjustment - (Note 5) 21,691 -
Restated balance October 1, 1972 ( 1,047,455)
Excess of revenue over expense 61,752
PurcFese of equipment and transfer
I to restricted fund
Contributions applicable to prior years
Restricted gifts and bequests
Transfer to Flow Memorial Hospital
Foundation, Inc. Balance-September 30, 1973 ( 995,703) 1,696,e71 3931166 240,461 1,717,871
kU, Excess of revenue over expenses 646
Restricted gifts and bequests
Contrlbutlon of equipment
Transfer to firs-ace equipment
expenditures
1sY Balance-September 30, 1974 (9 N5.057) S1.696 871 t 3, 1 66 ,ii. JAL =a I IWJZ=
The accompanying notes are an integral part
of the flnshlilal statements,
r
y 4
P
,
q,
v.
,
if ~:.i
"Wool
)
iAL HOSPITAL
S IN FUND BALANCES
~tembor 30, 1974 and 1973
rte.-
Unrestricted Fund Restricted
F Ow Estate Fe era ~Fun~ d r
Pledges
Bequest Grants and Gtfts Total Total
Y6 $ 240,461 $1,717,871 $ 194,603 $3,173,826
~2t
w S 5,309
3,195,517 5,309
51,752
50000 51000 ( 5,000) j
15,144 15,144 !
629,505
627 509)
t
6 240,461 1,717,871 214,747 3,267,413 2,305
646
61593
1,639 1,639
i
5.53 5,53~ 5 538) i
1.924
s are an Integral part
of statements,
k
f
•ti,
i
~`ly ` • }jypjily~uu(~tpmaatwr+...• -
FF~A,+/AK+'"^• NLliif BALtd n«.i.. w.. r-~. rw.w.ar«...•
J
it
1
i
,
1
FLOW MEMORIAL HOSPITAL 1
STATEMENT OF CHANGES IN FINANCIAL POSITION OF
UNRESTRICTED FUND ,
for the years ended September 30, 1974 and 1973
1974 1973 1
Working capital was provided by;
Operating revenue (riot) $3,989,729 $4,275
528
r' Operating expenses 4, 240 ,998 4,405,15
Loss from operations ( 251,269) ( 130,437)
1
Items In operations not requiring funds; 185,490 200~E69 1
Depreciation I
Funds provided by operations ( 55,779) 70,232
I
i
j Nonoperating revenue 263,245 185,226
Increase In long-term debt -0- 11,487
Donated assets 1,639 21,158
Transfer from restricted funds 5,53.8 5,000
Total funds provided _ _214643 293,103
Working capital was used fora 107,761 85,583
Addltlons to plant and equipment
Reduction In long-term debt 4,03a 11,365
I 111,796 9&,948
Total funds used Not Increase In working capital 102. 8
Changes in working capital;
I increase (decrease) In currant assets: 1560817) $ 145,059
Cash 39,647 ( 5,494)
Receivables 120,416 .0.
Due from health care programs
y - 17,178 ( 6,127)
Inventories 5,500, Other current asf,ets
_,6,184 142,843
increase (doereaso) in current IIabIIItIes l 105 ( 20555)
Accounts payable ( 12,337) 30,501
Accrued expenses 60,223) 60,535
Due to health care programs ( 4 209) 20 9 3;
Other current Iiebitltles 53 512)
Net increase In working capital
The accompanying notes are an Integral part
of the financial statements. ;
5
II
I
FLOW MEMORIAL HOSPITAL
NOTES TO FINANCIAL STATEMENTS
I, Signiglcant Accounting Pollcles;
r Type of Organization
Flow Memorial Hospital is a city-county hospital organized and operating
under the suthorlty of Texas Civil Statute Article No, 4494(1)-i which
authorizes the Joint astablishment and operation of hospitals by counties
~i and cities,
The hospital is governed by a Board of Directors, composed of seven members;
four appointed by the Commissicier's Court of Denton County, and three
appointed by the City Council of the City of Denton,
,p
Inventories
i
I M Inventories are stated at the lower of cost, on a first-In, first-out
basis, or market,
Physical Properties
j Property, plant and equipment Is recorded at cost, and Is being depreciated
1 over the estimated useful llves of tha assets on a straight-line basis,
f Repair and maintenance costs are charged to expense as Incurred, and renewals
and betterments are capitalized, Gains and losses on asset disposals are
credited or charged to Income at the time of disposal,
e '
i 2, Health Care Program.RoIrrqburselnent;
The due from health care programs of $120,416 represents the recoivable from
Federal and State governments under provisions of Public Law 89 -97, T1tle XVIII
and Title XIX, known an Medicare and Medicaid, for the year ended September 30,
1974,
Alf cost reports have been prep&red through September 30, 1974, and final
settlement has been paid through September 30, 1973, For the year ended
September 30, 1974, approximately $1,341,887 of the gross patient service
revenue of $4,142,985 was rendered to these patients on a basis of cost relm-
bursoment only, The gross charges are as follows;
Medicare $1,186,089
Medicaid 155,798
Total 51'341 887
p Continued
r
6 '
~~,h...-.~.........._..••,....,«....«».nxr-,a....,,,/«r., vur.u«,NU.y.. r~~u,wnlwMwwa«+M?N+mSwv„rnwrrw+w.,.rwrw.w+~w~a~s+."'i
d.
i
I
1
FLOW MEMORIAL HOSPITAL 1.
r NOTES TO FINANCIAL STATEMENTS, Continued
3. Notes Payable;
Notes payabla as of September 30, 1974 consist of Insurance pYemium notes
duo wlthin one year.
4. Contingencies;
The hospital leases various equipment under agreements requiring gross
payments as follows;
1975 $13,765
1976 13,312
j 1977 0,790
S3~ 5
( b, prior period Adjustment,
In 1974 the hospital received $21,691 In settlement of a class action lawsuit
} asserting violation of antitrust laws by several drug manufacturers since
the purchase of drugs giving rise to the claim occurred In the years 1954
through 1967, the settlement was recorded as an adjustment of expense In those
years, The September 30, 1973 financial statements as previously reported
r have been restated to reflect this adjustment,
I
k 6. Pension Plani
The hospital sponsors a money purchase pension plan for all quallrytng employees.
Plan par.Icl ants arm required to contribute two per tent and the hospital five
per cent of base salaries. The hospital's policy Is to fund the five per cant
contribution currently, reduced by any nonvested partlcipant forfeitures, The
total pension expense for the year was $25,974,
r
1