Title
Financial Report - Memorial Health System Enterprise
Presenter:
Kara Skinner, Chief Financial Officer
Body
Summary:
On October 1, 2012, the City of Colorado Springs executed the Memorial Health System (MHS) Operating Lease Agreement and the Integration and Affiliation Agreement by and among the City of Colorado Springs, University of Colorado Health, Poudre Valley Health Care, Inc., and UCH-MHS. The MHS Enterprise endures and is primarily a leasing enterprise.
On September 23, 2014, the City and the Public Employees' Retirement Association executed a settlement agreement resolving pending litigation. Escrow funds were released pursuant to this agreement and residual funds were sent to the Colorado Springs Health Foundation (CSHF) on October 3, 2014. City Finance provided accounting assistance to CSHF through May 31, 2015, including establishing bank accounts, and has subsequently made the following transfers from the MHS Enterprise Fund to CSHF:
? $10 million in October 2014 per Resolution No. 99-14
? $1,345,000 in January 2016 per Ordinance No. 15-101
? $5,264,000 in April 2016 per Ordinance No. 16-37
? On November 7, 2016, an ordinance was introduced to Council requesting approval of a supplemental appropriation to the MHS Enterprise Fund in the amount of $1,217,000 for transfer to CSHF. The ordinance will be presented to Council on November 22, 2016, for first reading and again on December 13, 2016, for second reading and final action.
On November 11, 2015, City Council adopted Resolution No. 109-15 approving a Funds Management Agreement between MHS Enterprise Fund and CSHF. This agreement provides greater clarity to how lease proceeds will be transferred to CSHF and how CSHF will invest funds. Transfers will be presented to Council on this monthly cash flow report. On September 26, 2016, City Council was notified of a change in the Funds Administration Target, outlined in the Agreement. The target was reduced to $2.5 million on Se...
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