Finance Highlights 2008 0729 - Laserfiche WebLink

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Rotacare, which began in 2005, grew 100% in 2006 and 25% in 2007, and shows great additional growth potential. In 2008, the Center entered into a partnership with Samuel Merritt Community College, which has a Nurse Practitioner program, to provide primary health care services at the Center's facilities with a Nurse Practitioner supervising several interns. The Center will share the revenues with the College. The Rotacare contribution margin has been somewhat erratic because this program has been supported primarily by Foundations and not by government grants or fee-for-service. Due to the new partnership with SMCC, which is organized on a completely new model and is expected to provide great growth and stability, the operating results are likely to look unpredictably different in the future. Basic Needs (11% of Revenue and Support): This program had a modest surplus of $103,544 over the 4 years but admittedly a number of factors limit the potential for this program. First of all, the program is run like a flexible spending account -that is, what is raised is what is spent, and the level of services is determined by what is contributed. Furthermore, Basic Needs competes for grant money with other programs that are tied to broad econometric measures and which are in more favor with grantmakers because the effectiveness of the grants can be monitored and measured. This program relies heavily on in-kind contributions that fluctuate dramatically with economic conditions, and therefore the operating results are irregular and it is impossible to identify a trend or pattern. In spite of the limitations, this program is vital to the identity of the Center in the Community because it has been in existence 35 years and has helped thousands of low-income families and seniors. Childcare (14% of Revenue and Support): Although significantly smaller in total Support and revenue than APP, the childcare program contributed a healthy surplus of $349,648 over the 4-year period and earned a surplus in every year. Childcare plays an important role in the future sustainability of the Center, tying it closely to the Community and being the area that receives the largest amount of direct program service revenue (fee for service). Because families have to be income-eligible, eligibility requirements are frequently changed, and economic conditions constantly change, the waiting list maybe full of families that don't qualify, so two of the centers may not be full at all times. There has been a significant decline in revenue and surplus since 2004 and 2005, in part explained by temporary closures of some of the facilities. At its best (2004), Childcare provided a surplus of $175K. Our projections are not this robust, but still show Childcare making a strong financial contribution overall. Administration: Administrative expenditures have ranged from a low of $332K in 2004 to high of $821K in 2005 and settled at $465K in 2007. Salaries and occupancy costs are, of course, the largest components. Administrative costs accounted for $2,243,915 over the four years, or about 6.3% of the overall budget, well in line for an organization of this nature. sustainability study: Davis Street Family Resource Center- 4/08 Page I 0 of 96