Tomball Hospital Authority d/b/aTomball Regional Health FoundationAnnual ReportFY 2016IntroductionThis Annual Report of Tomball Hospital Authority d/b/a Tomball Regional Health Foundation provides anoverview of the Authority’s Financial and Project activities for the year ending June 30, 2016. During thefiscal year ending June 30, 2012, the Authority ceased operating a hospital or providing direct healthcareto residents within our community. The Authority’s sole source of revenue is investment income fromthe Authority’s investment portfolio resulting from the sale of the previously operated hospital. ItsMission Statement is “To promote wellness and improve health status for all residents in ourcommunities through programs that enhance access to healthcare, preventative care and healtheducation.” We desire to create a partnership with our community and local organizations that servehealthcare and healthcare related educational needs. That desire is accomplished by funding variousprojects within our community that fit our mission and values.Tomball Hospital Authority is a separate and distinct Governmental entity, a political subdivision of theState of Texas, organized under Chapter 262 of the Texas Health and Safety Code. The Authority is not a501c3. Although not a “charity”, the Authority strives to meet the same standards as set forth by theBBB Wise Giving Alliance and their accreditation standards. Of their 20 published standards, 5 of thosestandards address fundraising which the Authority does not do. Of the remaining 15 accreditationstandards, we are in compliance with 14 of those standards. The only standard we are out ofcompliance with is the standard that we spend at least 65% of our total expense on projects. In FY2015,project expense was 73% of our total expenses. In FY2016, project expense was 50.5% of our totalexpenses primarily due to market performance of our portfolio as outlined further in this report. TheseAccreditation Standards can be found at Charities/As stated above, revenue for the Authority is solely dependent upon investment performance. Expensesare in two distinct areas, Operational Expense and Project Expense.Financial HighlightsCash and long-term investments decreased in FY2016 by 2,177,724 or 2.4%. The overall decrease incash and investments was primarily the result of project funding and operational expenses exceedingthe performance of the investment portfolio. In August of 2015, the Board approved an annual spendrate of 4% based on the rolling average of 12 quarters of quarterly market value of the investmentportfolio value determined to be at that time 82,850,824 or 3,314,033. The Board authorizedquarterly withdrawals from the investment portfolio in the amount of 828,508 to support operationsand projects. The first withdrawal was in October of 2015. Market conditions were not favorable for thewithdrawal in January. The next withdrawal of 828,508 was in May of 2016.
Total Assets decreased by 2,054,619 or 2.29%.FY 2012FY 2013FY 2014FY 2015FY 2016 prelim 0087,614,251.00Operational Expenses decreased 12,752 or 2.0% from previous year.FY 2012FY 2013FY 2014FY 2015FY 2016 prelim 8.00
Total Expense OverviewFY 2016Salaries and Benefits16.7% Legal Fee's2.1%Audit Fee's2.0%Salaries and BenefitsLegal Fee'sAudit Fee'sInvestmentFee's & Taxes1.3%Investment Fee's & TaxesLegacy Exp.InsuranceProjects50.5%Rent and LeaseLegacy Exp.18.2%Office ounting0.7%Depreciation1.2%Office Cost1.7%Rent and Lease3.1%Investment Portfolio PerformanceInvestment performance for FY 2016 was challenged by economic factors in the market during theyear. The portfolio saw a downturn beginning in August, 2015 that continued through February 2016.The market did show a favorable return beginning in March, 2016 that has almost returned theAuthority back to previous year end considering that we have withdrawn 1,657,016 from the portfolioto support operations and projects this year. Portfolio value for July, 2016 was 89,097,664.44In January 2016, we were notified by JP Morgan (our Custodian and Investment Manager for ourportfolio) that they were terminating our custody agreement. It was a business decision on their part toget out of the custody business. Many of their clients were impacted. The Audit, Finance, andInvestment Committee underwent a search for a new custodian to replace JP Morgan. In March, 2016the Committee recommended to the Board the appointment of Wells Fargo Private Bank as our newCustodian and Investment Manager. All funds were transferred from JP Morgan to Wells Fargo PrivateBank. That process was completed in April 2016.
Portfolio Value by Month FY 2016JulAugSeptOctNovDecJanFebMarAprMayJun 462.57Investments FY 2016 90,000,000.00 88,000,000.00 86,000,000.00 84,000,000.00 82,000,000.00 80,000,000.00 78,000,000.00 76,000,000.00JulAugSeptOctNovDecJanFebMarAprMayJun
Project ExpenseTotal Project Expense for FY2016 was 818,304. This was a reduction from previous year due tomidyear Portfolio performance as indicated above. We placed a temporary hold on new projects midyear in order to maintain our cash position and protect the principal of the portfolio. That temporaryhold has been lifted and we are actively seeking out new projects to fund.Since 2012, the Authority has funded and budgeted over 9,850,000 in Project Expense including thefollowing:Uncompensated Care:Total ,000.00500,000.006,429,824.50Total 67,651.0067,651.00Total 2,869.00112,821.0060,000.001,856,538.00Total 328,000.00 64,188.00315,000.0075,000.00February, 2012October, 2012May, 2013July, 2013Dec, 2014June, 20151115 Waiver:April, 2013Budgeted FY 1015TOMAGWA Dental ProgramStart-up costProgram cost for 18 monthsBudgeted FY 2015Additional Capital EquipmentSalary Start UpBudgeted FY 2016Medical Clinic (Friday restart)Grant Writer(not spent)City of Tomball Traffic SystemGrant to CityTomball CollegeEquipmentNursing instructor (5 years)Nursing Endowment
Pharmacy ProgramTotal 95,900.00550,088.00Total 10,000.0010,000.0020,000.0040,000.00Magnolia School DistrictTotal 500.00Tomball FireDepartmentTotal 900.00Camp BlessingTotal 54,778.00Tomball ISDTotal 47,569.94Tomball Pregnancy CenterTotal 45,000.00Joy Ride CenterTotal 15,000.00American Heart Association CPR in SchoolsTotal 89,906.00ESD8 Northwest EMS Transportation ProgramTotal 211,130.00Meals on WheelsTotal 100,000.00Total 15,000.009,851,885.44Shattered LivesTomball High SchoolsFY 2015FY 2016The Rose (Mammography)Total Funded and Budgeted
Camp Blessing, 19,763LoneStar College, 63,000City of Tomball EVIEW, 8,050Shattered Lives, 20,000The Rose Mammography, 15,000Meals on Wheels, 39,921Mobility Project, 61,318PROJECT EXPENSEFY 2016Lone Star CollegePharmacy, 89,500TOMAGWA, 501,752TOMAGWALone Star College PharmacyMobility ProjectMeals on WheelsThe Rose MammographyShattered LivesCity of Tomball EVIEWCamp BlessingLoneStar CollegeThe above graph demonstrates actual funding spent for Projects during Fiscal Year 2016.Budgeted committed expenses for Calendar Year 2016 for Projects is as follows:TOMAGWA DentalTOMAGWA MedicalMobility ProjectMeals on WheelsLSC Nursing InstructorCity Of Tomball EVIEWShattered LivesCamp BlessingThe Rose MammographyJoy RideTomball PD Heat Cards 593,644 120,000 104,000 100,000 63,000 25,000 20,000 19,763 15,000 6,889 1,241There is approximately 1,395,847 remaining in uncommitted project budget expense for this CalendarYear.
Community Impact SummaryBecause of funding provided by the Authority:25,239 students received CPR training this year in the Tomball, Klein, Magnolia, CyFair and WallerschoolsWomen in our service area with no resources can get a free mammogramDisabled kids can go to Camp Blessing and receive therapy at Joy RideThere is no waiting list in the Magnolia area for meals brought to their homePeople without any other resource have access to excellent dental care at TOMAGWAMedical services at TOMAGWA have been expanded4 High Schools in our area received education on the impact of driving while intoxicatedAn additional nursing instructor for the Nursing program at Lone Star College Tomball helpedthem achieve one of the highest pass rates on the Board of Nurse Examiners testing in the StateThere is now a wheelchair transportation program for disabled people to get them to the doctor orother medically related appointmentsThe City of Tomball’s Traffic Pre-emption system is being expanded allowing Fire and EMS to reduceresponse times and make it safer for everyoneThe Lone Star College Tomball’s Pharmacy Program has state of the art equipment for trainingTomball ISD now has new audiology equipment and a life was saved utilizing an Automatic ExternalDefibrillator provided by the AuthorityTomball Regional Health Foundation continues to be a leader in our community, making a differencein people’s lives every day.
Nursing instructor (5 years) 315,000.00 Nursing Endowment 75,000.00 . City of Tomball EVIEW Camp Blessing LoneStar College. . 25,239 students received CPR training this year in the Tomball, Klein, Magnolia, CyFair and Waller schools Women in ou