By Myrna Trauntvein
Times-News Correspondent
The Central Utah Counseling Center did not have any findings this year, meaning that all the records kept and the handling of all funds was found to be done as dictated by law. Brian Whipple, Director of the Central Utah Counseling, and Ferrel Marx, CFO Central Utah Counseling, shared the annual audit with the county commission. A financial audit is conducted to provide an opinion whether “financial statements” (the information being verified) are stated in accordance with specified criteria. “We will make this quick but will leave copies of the audit with you to review,” said Marx. The oral review, offered by Marx, began with the usual independent auditor’s report and expressed the opinion on the financial statements that: “The basic financial statements, in our opinion, are fairly stated in all material respects.” The financial audit was prepared by Kimball & Roberts, PC, Richfield. “The assets of the center exceeded its liabilities as of the close of the most recent year by $3,408,622 (net position),” reported the audit. “Of this amount, $618, 279 was unrestricted net position.” “Nearly all revenue comes from patrons,” said Marx. The center’s total net position increased by $728,570. The revenues were more than the adopted budgeted amounts and expenses were less than the adopted budgeted amounts. The center has a policy on post-retirement benefits for all employees meeting certain criteria. The net effect created a post-employment benefit liability of $194,356 at year end. The benefit is for health insurance after retirement for up to four years when all the requirements are met. Subsequent to year end, the center adopted a Health Reimbursement Plan for retirees to replace the Post-employment Health Insurance Benefit Plan. The implementation of GASB 68 has resulted in a net pension liability of $1,522,924, a net pension asset of $76, deferred outflows of resources of $1,016,489, and deferred inflows of resources of $155,439. The center’s compensated absences increased by $6,885 during the current year and lease revenue bonds decreased by a net amount of $99,000. “Total operating revenues for 2016 were $6,971,076,” said Marx. That represented a change of $418,493 over 2015. Total operating expenses were $6,242,506 for 2016. That represented a change of $392,176 over the previous year. For the most part, increases in expenses closely paralleled inflation and growth in the demand for services; however, with the implementation of GASB 68, the net affect to fringe benefits in the current year was a decrease of costs by $126,331. Notes to the financial statements refer to additional information provided in a company’s financial statements. Footnotes to the financial statements report the details and additional information that are left out of the main reporting documents, such as the balance sheet and income statement. This is done mainly for the sake of clarity because these notes can be quite long, and if they were included, they would cloud the data reported in the financial statements. There are 14 notes to the financial statements. One note discusses the restricted net position. “State Medicaid requires that Central Utah Counseling Center establish and maintain a funded reserve balance to cover the cost of all services provided,” reads the note. “The amount of this restricted net position must be at least equal to the center’s expected average expenses for all services for a 60-day period. The restricted net positions are calculated at total project annual expenses divided by twelve, times two. Central Utah Counseling Center must notify the Department of Health in writing if the restricted net position drops below the required balance.” “The center determined that this amount at June 30, 2016, was $1,061,000. The Medicaid Contract also establishes that the center be responsible for unanticipated inpatient costs in excess of annual premiums. The center has determined to restrict $100,000 for the risk pool. Total restricted net positions are $1,161,000.” Central Utah Counseling Center in Nephi, provides a drug rehab program focusing on a health and substance abuse services mix and substance abuse treatment with outpatient care. DUI or DWI offenders are supported for drug treatment. Medicaid, Medicare, state financed payment, private health insurance, military insurance and self payment is accepted with sliding fee scales. The center includes ASL or other assistance for the hearing impaired and Spanish language services.
