HomeMy WebLinkAbout09-30-1978 & 1977
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loudw 1?ass & Co.
f February 8, 1979
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Jt Board of Directors
rloW Memorial Hospital
f Dentonp Texas
We have examined the balance sheets of Flow Memorial Hospi-
`,s. tal► a political subdivision of the State of Texas, as of
v~ September 301 1978 and 1977, and the related statements of revenues
' and expenses and changes in fund balances and changes in financial
` position for the years then ended. Our examinations were made in
accordance with generally accepted auditing standards and,
accord- ingly, included such tests of the accounting records and such other
auditing procedures. as we considered necessary in the ciroum-
stances.
in our opinion, the financial statements referred to above
M4Y.'. present fairly the financial position of Flow Memorial Hospital at
September 30, 1978 and 19771 and the results of its operatione and
the changes in its financial position for the years then ended, in
conformity with generally accepted accounting principles applied on
a consistent basis.
4r a
X45.; v~t}r Certified Public Accountants
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l; ' 20018 RYAN TOWER • SUITE 2400 • DALLAS, TEXAS 78201 - (214) 741.3863
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} , : ~ f„i ~~LOf4 MEMO1tIAL fi03PYTAL
A
TEMEN
T
S OF CHANGES IN FINANCIAL POSITION
rMMSTRICTED F'LRVD
y
tx
4
SOURCE OF Year ende~ dgtembex 3p
a fw trtJN
i to DS i
8ns
p l Operations,
loss
i
Depreciation
3 $097,946} 466,282)
Other non'-cash expenses 278,672
Funds used by gospital 2600701
n `--s55c -764
Nonoperatin perations
g revenues ( 63,510)
B'unds provided b 352 183 d 205,581}
nd p el 0 78 9
no 1
nOperating revenues Aerations
Tr
anePers from
f Increase in Restricted funds 2880671 173x337
Ion m R
current "term debt, less 7'186 452,247
I
APPLICATION OF 57,
It
f 1►iJNDB t 59
to 2`"95'x`$.- r 11884
? Additions
equipment (et~ertp, plant, and
n
Decrease in Ionq l
term debt 94,303
current maturities leas 1,209,518
~~t r 011 ,
INCREASE (DECR4A3L 1 7 142" 4
U ) IN. i, )RX I 5I
CgANGEB NG CAPITAL 158 95 ~
IN WOMYNCi CAPY'1'AL COMPON
In creams (decrease) `
assetat Ln current
Cash
s Receivables
x243} 278,097)
Inventories 256 934
Prepaid expenses and ( 7 .637,168
other assets dl) f 30
Due from plant ttenovatlon Eund 40,171 ►451)
8,664
~3? 24 384)
z'jr3 V;. Increase (decrease) in current 29 01 312 910
liabilities,
`~--_-_e..
Accounts Accrued ,
expgable
enses 141,187
Current maturities Of ien ! 13,051) 3680271
debt 5 term ( 27,816)
29 456 S 66 )
a y I5 54
y4h .LYE
Bee notes to financial statements
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° FLOW MEMORIAL HOSPITAL
}
~ ~ N0TE3 TO FINANCIAL BTAT'EMENTB
t' YEARS ENDED SEPTEMBER 30 1978
AND 1977
SUMMARY of SIGNIFICANT ACCOUNTING PoLlCIESr
S
General
ti
Tn 1971, the City of Denton on,
Texge by mutual resolution
, Texas and the County of Dent
operate reorganized
R► under the authority of Texas Civil statute Article
r as a point Flow
city-county hospital board, without taxing
,r powers, and to be designated as Denton County-City of Denton► Texas
i Hospital Hoard.
ri I
+ The Board is composed of seven membersl four a
h the Commissioner's
th6 Court of Denton County, and appointed by
City Council of the City of Denton. three appointed by
r r( !
2. Inventories i
Inventories, consisting 1
supplies, are stated at the lowermofil ost (firs -i.~I~`cale and
method) or market. t ink first-out
34
third-Part Mate A ust ants
Revenues which tots
led $2,298,000
years ended September 30 and $1,753,000
for the
} received from federal and, state 8 and 1.977 [
` governments under espectively were
y public taw 89-97, Title XVrII and Title xlx, known as M dicyaresand
Medicaid. The 1978 revenue is subject to audit an
n. adjustment by third-party payors, d retroaotiva
adjustments
are subject to final settlement, any Inasmuchference as these between adj the amounts
accrued and the amounts settled is recorded in operations
year of settlement. in the '
t 4. t
La des B" ui1dURL_d LUi~~entLUi~~ent
Land, buildings and equipment are recorded at c
F>'x " the case of
s property ~*nated to the Hospital► at the fair , market
value at the date of the donation,
t
Depreciation is calculated using the straight-line method
,I over estimated useful lives as followsi
Land improvements
15 years
Buildings 15 - 35
years
Furniture and equipment
3 27 years
:i.
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TvurlteXass
FLOW MMORIAL HOSPITAL
.
NOTES TO FINANCIAL STAT
ANTS CONTINUED
1 Y AAS ENDED SEPTEMBER 30 1978 AND
~ 1977
t p A, SUMMARY OF S
.IaNIFICANT ACCOUNTING POLICIES
CQntrib-` ns (CONTINUED)
the dnnorlt airbeutions which have been restricted
credited directl 413 to their use by
tE.• Restricted Funds. Y to the fund balance of the
purpose specified b At the time the funds are expended for the
by
r the donor, the related fund balance is trans.
designated to the Unrestricted Fund for a specific purpose bContributions which ere not
jnonaperating revenues in the Unrestr Yicted the Fund. donor: The are Hospital does
recorded a
objective basi s r
not record the fair value of contributed services received elnaa
no
is available to measure the value of such services.
Pension Plan
7 ~
The Hospital
all sponsors a move
employees over twentp-five y purchase pension plan covering
years continuous service. years of age with at least one
contribute two Plan participants are required e
percent. The Hoapltal,s
percent of base salaries and the Hospital five
button currently, reducedp by is to fund the five
9exti were no y any nonvested partici percent itures
pension costs for 1978 as a reautt ogrnonveseed
participant forfeitures. Pension costs for 1977 totaled $34,579
and were included in operating expenses.
7,
I naa e
i The Hospital is exempt from federal income taxes Political subdivision of the state of Texas under Sectiori115s of
14 the Internal Revenue Code of 1954.
"If special funds have been established by the Hospital
~
, pur
«f suant
to certain requirements of the Denton County - City of
Texasoapitai Board Revenue Hond indenture
; Denton
,
special funds, which are administered
by in 1978 (Nate le 2,849
Vii, ry and $10,odl in 1977 and are Included uIneothertassets22'849
94
Realassi;Ei~~y~
Certain
z w.I Se reclassifications
f
ptember 30, 1977, financial sthve in atementsen tomadce the
September 30, 1978, classifications.
onforrm
~ to
P
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l i~ r ~ it 1 f i
' ) ~ i ~uc'laeRacs&Ca
1 FLOW MEMORIAL HOSPITAL
1
NOTES TO FINANCIAL STATEMENTS
~ ~ 1~ CONTINt1ED
YEARS ENDED SZPTEMBER 30 1978 AND 1977
s k,
M BO LAND, EUILDIN(;S, AND EGU'IPMENT:
F Land, buildings, and equipment consist of the following, f
I ''1
Se tember 0 f
Land and improvements
j Buildings $ 132,586 $ 132,596
Furniture and equipment 2.835,225 €
2,823,767
296850 ~
976 667
Less accumulated depreciation 5,9b4,6d1
2 5,933,420 '
- .874,270
_2,602,4.,96
#f 391 3 330 324
F
C. LONG-TLRN DEBTS
Long-term debt consists of$
Se tem or 30
Bonds:
` Series 1975, due July 1, 2000
Series 1975ftA, due J'ulp 1► 1994 $ 2900000 0 290,000
2--...~01 0 ~2a
Equipment notes, 5.68 5700000 5700000
0252 1
1L.S11 ~144
,2
P} ~
r Less current 672,862 714,252 ~
maturities __1 I_LS 2
0
J
' 630 741 6 3 32
During 19731 the Hospital begs„ a
Wt- improve its existing building and medical faailities.~o expand and
the pro act was
accomplished b
d~F Financing
Hoard of Health Resources $407
(Department of by a ,40 grant from the " Texas
under the Fodor as
Health, Education and WelfAreHi11-Burton Program
$570,000 in Denton County - City of Denton
f; Revenue Honda. The f and the Issue of
~w project was completed during 1977, and the
11'74
f
Ih4sekss&Ca
t f,,
i FLOFI MEMORIAL H09PITAL
"i NOTE3 Tp FINANCIAL STA
TEMF.NTS CONTINUED
YEARS
~ ENDED SEPTEMBER 34 1978 AND 1 77
1.4
C• LONG-TERM DEBT (CONTINUED),
' asseta and related liabilities
' restricted Fund of the fund
un were '
.
had been received, Atanaptz1er4► 1977, all of transferred
o
the grat the
outstanding,
~1 the bo ntmon
nds, were issued and i
i
~s
Repayment provisions of the bonds are as follows:
series 1975 - The bond agre
principal Payments a regating $era60, bails for scheduled
000
duly 1, 1979 through J'ul l , in during the
t $5,000 to $10,000 each year, 1996 The , in
remaiamounts ranginfperiod
become callable for redemption beginnin
nder of the bonds
g July
fns subj amounts ect to ranging mandatory redemption each Jul
from $10, 00 1 ~ therexffadr
k bear interest at 6,988 per annum.
to The bonds
Series 1975-A
onw The first $120,000 is
at 7t per annum.
July It 1981 and 1982, andaybea s fntrgeat
,i'_ per Years beginning inil9gge ain due nd bearetina rate terest of $20►000
per annum.
at 7.254 j
The related bond agreements,
o6venants
t
addition, including
addiditio limitations on additional long-term ,~F~;-contain various restrictive s
Hospital. the bondholders have a lien on all eve Uea ehof the
Subsequent to September 30`
payable to a
for $90.720 , 1978, the tios itai signed a note
new radi-camera equipment, vendor in th the purchase of
Th connection w
per annum and is collateralized b
e note, which bears interest at 74 r
over a period of five y the new equipment, will be paid
lr years beginning December 1978.
J Inaluded in
interest on the sonde aapitalizedaurtnd the
esongaipment is $56,998 in
and construction,
fiscal 1977. Of that amount, $21,681 period of renovation i
was 0apitaiized during
Equipment notes
payable are collateralized b
Soh preciated cost of approximatel y equipment with
payments on the notes $95,040 at September 30, 1978.
foliowst $4G,652 - i9791 $37,566 t9901 $23,251
1982,
251 merest, are as
19911 $3,789 -
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,
rv.~l tie.v•fi~i2fiYF~.~al"Lt~~tr'4`,13,~i'F.chi`l`;i34W~."rvS."Yl3Rir(Y
' 7a~~el~Sfa~
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( FLOW MEMOR~ Ty A~ y HO,4;
s
~ NOTES TO
j FTNANCTAL STATEMENTS CONTINCJED
f ; YEARS ENDED 3EPUMBER 30 1978 AND 1977
"RESTRICTED FUND BALANCES
x as Follower
the sources of the unrestricted fund balance are detailed t
~7 1
Se tember 30 _
f Operations
Count
fify of Denton 9!1,166,829
$(1,128,252)
City of Denton 1,696,871 1
Flow Estate bequest 393 696,871 ;
1 Federal ,i66 393,166
w Peed grants 240,461 240 461
Y,1;{ ges and gifts 20125,281 20125p2
81
040M10 ,
540
L-ILLM-96 3 635 O6
a E• FLOW M MORIAL HOSPITAL FOUNDATION, I
I NC.$
for-profit Memorial Hospital Faundetion► ino. ?
1978pandit ozatlon
i` , contributed to the Hospitax-exempt ai12 oin
$35,323rgani. 1999, which contributions hav 3
nonoperatingrevenue,
e been included in
were restrioted for the Purch se contributions of 928,584 In 1977
Equipment Fund balance, purchase of equipment and were added to the ii
CONTRIBUTIONS 1
I and the hCountp lofl n receives
funds From the Cit I
hospital care. , Texas to defra p of Denton, Texas !
requested $229,000 part of the budget for lg 79the coat of charity
County and 9167,000, respective2 ' the Hospital had
. The County has approved
City has only budgeted one hsiF of he y► f ram the Cf ty and
1t'r 1;. grounds that support of one half ohs amount requested, however
the citizens of )enton t amount requested on the
the
represents double taxation. F the 8oi ttial►s charity care by I
through both City and county
and County for fiscal 1979 of a 28 000 total amount budgeted by the taxes
. less than amounts funded b
s = Hosppital plane to aompensete for the is approximately 81'The
Fundfn by the City and County d'uring 1978. The
'a g through increased decrease in and County
pattient service rate charges during 1979.
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