Uhlich Children’s Advantage Network

FY 2008 Budget Overview

Prepared by: Reginald Walker

Chief Financial Officer

June 11, 2007

Revenue Overview

Change in Program Revenue2008 Budget vs. 2007 Forecast

Residential 2,032,524 49.50%

Foster Parenting 742,761 18.09%

Teen Transitional Services 856,916 20.87%

Education 122,800 2.99%

Counseling 139,784 3.40%

Family Based 90,285 2.20%

U-Lead 64,182 1.56%

Flexible Use Funds 56,500 1.38%

Total Revenue increases 4,105,752

50%

18%

21%

3% 3% 2% 2%1%Residential

Foster Parenting

Teen Transitional Services

Education

Counseling

Family Based

U-Lead

Flexible Use Funds

• Residential rate increased from $271 - $310

• Average Residential census increased from 44 to 59

• Increased census in Traditional HMR Foster Parenting with partially offsetting reductions in Spec and Adolescent programs

• Expanded capacity in the TTS program with the opening of the Keystone property in addition to a 17% rate increase

• Counseling Services expects increased opportunities from partnerships with the Juvenile Courts and the Children’s Advocacy Center. • Education expects a 2% rate increase.

•Family Based programs, U-Lead and Flexible Use Funds all have very moderate to no expected gains.

Change in Program Revenue2008 Budget vs. 2007 Forecast

31%

60%

9%

Teen Parenting

CHA Housing

Prevention/Other

Teen Parenting (316,731) 30.50%

CHA Housing (624,858) 60.18%

Prevention/Other (96,736) 9.32%

Total Revenue decreases (1,038,325)

Net Revenue Change 3,067,427

• The decline in CHA Housing revenue is the result of across the board declines in Service Connector contracts and a 60% reduction in relocation revenue to $475,000

• Teen Parenting continues to have declining census

• Conservative revenue estimates are budgeted for Prevention/Other Category. These are composed of Parents Anonymous, Office of Mission and Spiritual Care and Homework

Other Income and Support

• Conservative estimate in unrestricted grants in 2008. Many grants anticipated in 2007 did not materialize

• Trust income is based on 5% total return model

• MIS costs are partially offset by the acquisition of an external consultancy contract

• Current budget contemplates a 2% reduction in allowable spending of investment income

• State Appropriations are conservatively estimated due to many unknowns regarding the state finances

Net Unrestricted Foundation Grants 184,854

Trusts 618,923

Miscellaneous Contracts 90,000

Foundation Grants 363,500

Board Restricted Investments 383,116

State Appropriated Grants 800,000

Non Fee for Service 2,440,393

8%

25%

4%15%16%

32%

Net UnrestrictedFoundation Grants

Trusts

Miscellaneous Contracts

Foundation Grants

Board RestrictedInvestments

State Appropriated Grants

Operating Expenses

Expense Reductions

CHA Housing (831,805)

Residential (492,449)

Teen Parenting (264,937)

Family Based (106,246)

Counseling (26,537)

Prevention/Other (24,570)

Total Expense Reductions (1,746,544)

• Reductions in the CHA Housing program a reflected in the Service Connector program where CDHS announced a program contraction in January 2007. Also as more and more residents are place in alternative housing we anticipate fewer cases in the relocation project.

• High fixed cost in the Residential program limit immediate cost reductions in the program but under Dr. Guidi's leadership, we anticipate generating increased efficiencies reflected in reduced overtime, food and turnover.

• Reduced census in the Teen Parenting program will call for reduced pass-through cost and a generally smaller program

• Family Based programs will achieve greater productivity from existing headcount and will benefit from intense monitoring from Finance

48%

28%

15%

6%

2%

1%

CHA Housing

Residential

Teen Parenting

Family Based

Counseling

Prevention/Other

Expense Increases

61%25%

10%

3%

1%

Teen Transitional Services

Foster Parenting

Education

U-Lead

Flexible Use Funds

Teen Transitional Services 868,619

Foster Parenting 363,919

Education 150,195

U-Lead 48,995

Flexible Use Funds 17,547

Total Expense Increases 1,449,275

Net Expense Change (297,269)

• Cost will increase in Transitional Teen Services due to the expanded capacity brought by opening 2153 N Keystone

• Higher caseload from former Catholic Charity clients will call for increased headcount. Close fiscal monitoring will be focused on cost control.

• Education cost increases are primarily inflationary

Other Expenses and Management Overhead

Significant reduction in M&G due to reduction in outside help, search fees and headcount

The sale of Jefferson will reduce depreciation cost, but the establishment of the Damen rental will offset these savings

2% increase projected for salary increases (leading and impacting only)

1% 401(k) contribution (increase tied to budget performance)

0% increase projected for VP staff

Risks

Inability to make census target (5% shortfall approximates $350,000 in revenue

State/Federal appropriations for child welfare programs fall victim to other priorities (fully funding state pension, lack business tax revenue, defense spending etc.)

Expense creep in smaller programs such as Counseling and Family Based

?