Treasurer’s Report

UNOS

Board of Directors MeetingJune 25-26, 2012

Fiscal year (FY) 2011 financial results

Consolidated audit report for FY 2011

Proposed budget for FY 2013

UNOS Items to be Presented

FY 2011 is from Oct. 2010 - Sept. 2011

Revenue = $43,390,904 Approx. $2,271,000 less than budget

Expenses = $42,752,037 Approx. $1,199,000 less than budget

Capital expenditures = $4,908,864 Approx. $2,862,000 greater than budget due to

purchase/opening of Jackson Center property.

FY 2011 Financial Results

Change in net assets = ($356,919) -.84% of unrestricted revenueLoss due to timing of Chrysalis Revenues and expenses. $600,000 of

unused revenue in FY 2010, expenses in FY 2011.

Complied with bond covenants, requiring debt service ratio of at least 1.0 – 1.5 and $2M in unrestricted cash.

FY 2011 Financial Results

Consolidated Audit: UNOS , UNOS Foundation and OPTN A-133 Audit.

Conducted by Cherry Bekaert & Holland, a regional audit firm. First year of a three year term with CBH.

Results reviewed and discussed during April 2012 Committee conference call

Audit report is included on the OPTN Board CD

FY 2011 Audit

Unqualified or “clean” opinion issued on UNOS financial statements and OPTN operations

No material weaknesses in internal controls or non-compliance with federal or contract requirements

A significant deficiency was identified. Item addressed by UNOS Management.

UNOS is considered a low-risk auditee.

FY 2011 Audit

Board of Directors action required: RESOLVED, that the 2011 UNOS consolidated

audited financial statements for the period ended September 30, 2011 as audited by Cherry Bekaert & Holland are hereby approved.

FY 2011 Audit

Due to bankruptcy of HISF and the closure of the hospital, OPTN and UNOS fees are deemed to be uncollectable.

An allowance for $10,658 in UNOS fees from HISF was incorporated in the UNOS financial statements. No financial impact to FY 2012.

FY 2011 Financial Results

Board of Directors action required: RESOLVED, that UNOS writes off unpaid

computer registration fees of $10,658 from HISF.

FY 2011 Financial Results

Revenue – expenses approx ($80,000) Budget ‘profit’ is $370,000, small margin. Revenues down over $400,000

UNOS registration fees – at least $150,000 below budget.

Rental Income – at least $100,000 below budget due to delay in leasing a floor of Jackson Center.

Registry Income – at least $150,000 below budget due to delay in securing new contracts.

FY 2012 Projections

FY 2013 is from Oct. 2012 to Sept. 2013.

Due to uncertainty about OPTN bid process, no major changes are incorporated in FY 2013 budget.

Once the OPTN bid process is complete, a final UNOS budget will be developed.

Next budget could be for 6 months, 12 months 18 months, ?.

FY 2013 Budget

UNOS budget, like the OPTN, expects registrations for FY 2013 to be 1,800 less than planned for the FY 2012 Budget

Due to lower registrations, an increase in the registration fee is proposed.

The FY 2013 Budget (like the FY 2012 Budget) will have a small margin compared to budget size.

FY 2013 Budget

Revenue = $46,881,338 $305,000 more than the FY 2012 Budget

Expenses = $46,599,193 $393,000 more than the FY 2012 Budget

Capital expenditures = $2,000,000

Revenues less Expenses = $282,145 .6% of revenues Finance Committee Goal 3%-5%

FY 2013 Budget

OPTN and UNOS fees: OPTN fee = $651

$48 (8%) increase from $603 to $651 UNOS fee = $95

$3 (3%) increase from $92 to $95 Chrysalis fee = $30

Remains unchanged. Will be used for ongoing improvements to IT systems such as Donor Net.

Total (OPTN + UNOS) fee = $776 $51 (7%) increase from $725

FY 2013 Budget

Board of Directors action required: RESOLVED, that the 2013 UNOS Operating and

Capital Budgets are hereby approved, as recommended by the Finance Committee, and

FURTHER RESOLVED, that the Board of Directors hereby approves the increase in the UNOS Computer Registration Fee from $122 to $125 effective October 1, 2012, and that UNOS Policy 11.0 shall be amended (shown in report).

FY 2013 Budget