Title
Ordinance No. 21-15 amending Ordinance No. 20-92 (2021 Appropriation Ordinance) for a Supplemental Appropriation to the Memorial Health System Enterprise Fund in the amount of $3,912,580 to transfer monies received from the periodic reconciliation with UC Health to the Colorado Springs Health Foundation
Presenter:
Charae McDaniel, Chief Financial Officer
Body
Summary:
The attached ordinance is to increase the 2021 Memorial Health System Enterprise Fund budget and to appropriate monies in the amount of $3,912,580 to transfer monies to the Colorado Springs Health Foundation (CSHF). The source of funds is a transfer from UCH-MHS received by the City in December 2020.
According to the lease, Schedule 3.6.8 Obligations and Liabilities Related to Third-Party Payors, the Parties agreed to reconcile UCH-MHS net actual receivables received and liabilities paid out to the amount accrued in the Memorial Health System financial statements on the effective date of the lease. UCH-MHS and the City have met periodically and agreed to reconciliations.
The net result of the first reconciliation, which was in 2016, was an amount due to the City of approximately $5,264,000. Of the $5,264,000, $298,000 was paid to a contract audit firm that assisted MHS with audits of a number of third-party cost reports that resulted in positive settlements. The balance of $4,966,000 was transferred to the Colorado Springs Health Foundation in 2016.
The net result of the second reconciliation, which was in 2017, was an amount due to the City of approximately $2,581,000. Of the $2,581,000, $35,000 was paid to a contract audit firm that assisted MHS with audits of a number of third-party cost reports that resulted in positive settlements. The balance of $2,546,000 was transferred to the Colorado Springs Health Foundation in 2017.
The net result of the third reconciliation, which was in 2020, was an amount due to the City of $3,912,580. This amount will be transferred t...
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