What Questions Have the Forsyth County Board of Commissioners Asked Centerpoint?

 

By Staff

08/27/2012

 

Last week’s miscue or political spin that resulted in County Commissioner Whisenhunt and the Winston-Salem Journal to put forth the idea that Centerpoint had withdrawn their $1.5million loan request (they had not) morphed into laying the blame, once more, at Centerpoint’s feet in an apparent effort to make it appear that Centerpoint was withholding information from the Board of Commissioners.

According to Centerpoint not only has the Forsyth County Board of Commissioners requested more information than Davie, Rockingham, or Stokes County (all of whom approved), Centerpoint has answered their questions in detail. What had been framed on Friday as Centerpoint withholding in information now looks as if it could have equally been county Commissioners who are running for higher office not wanting to have to vote against funding for services for citizens with disabilities.

Centerpoint has shared with CCD email exchanges between Centerpoint CFO Kevin Beauchamp and Budget and Management Analyst for Forsyth County, Kyle Wolf. These exchanges show the questions posed to Centerpoint by the Board of Commissioners and the responses by Centerpoint.

How has CenterPoint spent $1,893,265 on Waiver Implementation without using any of the $2,000,000 set aside specifically for Waiver?

  • Through June 30, 2012, CenterPoint had spent $1,589,339 on Waiver Implementation and through July 31, 2012, CenterPoint has spent $1,893,265. Waiver Implementation is an 18 month project and we were able to cover the expenditures incurred in FY12 by managing our operating budget which allowed CenterPoint to preserve its limited fund balance. Starting with project-to-date expenditures incurred in FY13, we will have to utilize the county discretionary funds we’ve set aside for Waiver Implementation in order to preserve our limited fund balance.

Are there any plans to tap into the $2,000,000? Could this be put towards services?

  • In FY12, our total fund balance was $6,320,936 and of this amount, only $2,711,406 was available for appropriation. With an available fund balance of $2,711,406, CenterPoint’s available fund balance percentage was only 6% which is below the Local Government Commission’s recommended fund balance percentage of 8%.

  • CenterPoint uses the cash from its available fund balance to keep monthly provider contract payments current as it awaits payment of its service funding from the State which can reach a lag of 60 days.

  • At this time, If CenterPoint was to liquidate $2,000,000 from its fund balance, it would be left with an available fund balance of $711,406 which equates to an available fund balance percentage of 2% and eliminates CenterPoint’s already limited liquidity. If CenterPoint chose to eliminate its liquidity, it would not be in a position to continue making monthly provider contract payments when our funding from the State is delayed which in-turn would have a devastating impact on an already fragile provider network.

If the primary reason for requesting the $1.5 million, along with the other one-time money from other counties was due to cash flow issues, how does Forsyth County fronting its entire annual allocation not ease those cash flow issues to the point you don’t need the extra one-time funding?

  • The primary reason for requesting the $1.5 million from Forsyth County, along with the other one-time money from other counties is not due to cash flow issues.

  • The request is to try and close a gap in our budget to cover Waiver Implementation expenditures for which we do not have adequate funding without utilizing county discretionary funding.

  • While Forsyth County’s decision to front its entire allocation of discretionary funds is appreciated and helps CenterPoint’s cash flow in the short-term, it does not eliminate the funding gap and the need to utilize county discretionary funds for Waiver Implementation.

How quickly, once CenterPoint becomes an MCO in January, will CenterPoint begin receiving reimbursements from Medicaid? Comments have been made that once this happens (January), CenterPoint will be ‘flush with cash’ and that the additional one-time money was essentially to help CenterPoint get to January 2013.

  • Under Medicaid Waiver, CenterPoint will begin to receive its Medicaid funding at the beginning of January 2013. The idea the CenterPoint will be “flush with cash” is an incorrect perception.

  • While CenterPoint will see an increase in its revenue/cash in January, it will also have a corresponding increase in its expenditures as it becomes responsible for funding Medicaid services.

  • Medicaid funding has to be kept separate from other funding sources and it is illegal for CenterPoint to use Medicaid funds to cover Waiver Implementation cost incurred prior to January 1, 2013.

Is CenterPoint still anticipating Waiver Implementation to come under budget by $500,000? This is based on your 5/31/12 document you sent me that indicates the budget is $3,702,533 with projected expenditures to be $3,200,000 and an “allowance for unexpected expenditures” of $502,533.

  • While the project-to-date Waiver Implementation costs are currently under budget, CenterPoint does not foresee this trend continuing.

  • CenterPoint has started filling the reaining new positions that are required to operate the Medicaid Waiver and due to the experiences incurred by LMEs that have already gone live with Waiver, CenterPoint finds it necessary to adjust its hiring plan and start hiring I/DD Care Coordinators sooner than planned.

  • With the hiring of the remaining staff and the accelerated hiring in Care Coordination, CenterPoint’s total projected expenditures will be $3,740,758 or $26,577 under budget.

How much under budget was CenterPoint for Waiver Implementation in FY12? FY12 budget for Waiver was $2,619,434. Through May, actual expenditures for Waiver were only $1,309,447. If CenterPoint was $1,000,000 under budget for FY12 and the FY13 budget is essentially $1,000,000, why should counties have to pay the extra one-time money?

  • Waiver Implementation is an 18 month project. While project-to-date expenditures have been under budget, the gap between budget and actual is projected to rapidly decrease and be at a break-even point by the end of December 2012.

Why does CenterPoint need $1.5 million for Waiver from the County when the budget for implementation in FY13 is only $1,083,099? This is based on the total budget for implementation minus the FY12 budget for implementation.

  • See answers to questions 5 & 6.

There is another meeting of the Forsyth County Board of Commissioners Monday night at 6pm. It has come to our attention that disability activist will once more speak during the public comment period and request that the Centerpoint loan be put onto the agenda. Please check back to Camel City Dispatch for further coverage.