COBI 2015 - Veterans' Nursing Home Fund

Overview
Issues
Performance
Background
Financials

Sources Uses

FY 2016 Appropriation

The Utah Veterans' Nursing Home Fund (Fund 2380) is administered by the department for the benefit of the four Utah veterans' nursing homes and their residents.

The vast majority of revenues into this fund come from the United States VA via a distinct holdback provision related to per diem reimbursement for the residents of the nursing homes. The VA pays nearly one half the cost of care for eligible residents, and in certain cases of service connected disabilities, the VA will pay 100 percent. These revenues derived from the holdback provision are passed through this fund directly to each nursing home.

This fund also holds private donations for each nursing home. Donations are tracked to ensure they go to the intended nursing home.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $18,735,300 from all sources for Veterans' Nursing Home Fund. This is a 5.5 percent increase from Fiscal Year 2015 revised estimated amounts from all sources.

Staff Analysis

This is an expendable special revenue fund and as such, is not subject to appropriation. However, it has been brought on-budget to improve transparency and to better account for overall state spending. Revenues to this fund are almost exclusively federal per-diem rates and prescription payments for the four veterans' nursing homes. Donations to the nursing homes are also held in this account.

Intent Language:

The Analyst recommends the following intent language:

The Legislature intends that the Department of Veterans' and Military Affairs be allowed to increase its vehicle fleet by two vehicles for nursing home operations if funding for the vehicles comes from federal funds.

Of the federal per-diem revenue collected, 90 percent is pass-through to the nursing home contractors. The remaining ten percent is kept in the fund and is used for operations and maintenance costs. The four nursing home administrators and the Deputy Director are paid through this fund.

Fiscal Year 2014 federal revenue for this fund was $14.4 million and the closing fund balance was $3.7 million. The purpose of the fund balance is to serve as a contingency for unanticipated large capital costs (such as a new roof, major repairs, etc.) or to maintain continuity of operations in the event the contract manager ceases operations suddenly. The department has determined that a fund balance of $2.2 to $2.5 million is the desired range to maintain. Funds beyond that amount should be used to directly benefit the residents in the nursing homes either through capital purchases or by decreasing the private share rate paid by veterans and their families.

Nursing Home Occupancy

The four state veterans' nursing homes served 500 veterans in CY 2014. The current occupancy rate for the four facilities is 95%.

Statute

The Utah Veterans' Nursing Home Fund is an expendable special revenue fund and is created in UCA 71-11-8.

Ths fund does not receive appropriations from state funds. Projected revenues for FY 2016 are $18,773,000 for nursing home per diem, and $194,700 for nursing home prescription payments.

The large funding increase in FY 2013 is a result of federal money used to construct new nursing homes in Payson and Ivins.

Display By:

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Programs	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Veterans' Nursing Home Fund	0	0	27,577,200	14,879,400	15,986,900	1,771,300	17,758,200	977,100	18,735,300
Total	$0	$0	$27,577,200	$14,879,400	$15,986,900	$1,771,300	$17,758,200	$977,100	$18,735,300

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Federal Funds	0	0	26,942,200	14,382,300	15,986,900	1,794,700	17,781,600	1,022,600	18,804,200
Dedicated Credits Revenue	0	0	862,200	128,700	0	40,000	40,000	0	40,000
Interest Income	0	0	0	8,600	0	10,000	10,000	0	10,000
GFR - Veterans Nursing Home Reimbursemen	0	0	0	105,000	0	0	0	0	0
Beginning Fund Balance	0	0	3,693,300	3,920,500	3,400,000	265,700	3,665,700	73,400	3,739,100
Ending Fund Balance	0	0	(3,920,500)	(3,665,700)	(3,400,000)	(339,100)	(3,739,100)	(118,900)	(3,858,000)
Total	$0	$0	$27,577,200	$14,879,400	$15,986,900	$1,771,300	$17,758,200	$977,100	$18,735,300

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	0	0	175,700	(27,500)	584,200	71,700	655,900	19,500	675,400
In-state Travel	0	0	3,800	15,400	500	14,500	15,000	0	15,000
Out-of-state Travel	0	0	1,400	3,100	300	4,200	4,500	0	4,500
Current Expense	0	0	7,378,300	13,719,300	14,400	16,959,900	16,974,300	948,700	17,923,000
DP Current Expense	0	0	23,600	7,900	0	8,000	8,000	9,400	17,400
Capital Outlay	0	0	13,500	76,300	0	100,000	100,000	0	100,000
Other Charges/Pass Thru	0	0	19,980,900	827,100	15,387,500	(15,387,000)	500	(500)	0
Transfers	0	0	0	257,800	0	0	0	0	0
Total	$0	$0	$27,577,200	$14,879,400	$15,986,900	$1,771,300	$17,758,200	$977,100	$18,735,300

Show Table | Show Additional Information

Other Indicators	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Budgeted FTE	0	0	5	0	5	0	5
Actual FTE	2	4	0	0	0	0	0
Vehicles	0	6	2	4	6	(4)	2

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.