Less than a dozen minor adjustments were listed in the yearly audit report done in August for the center.
“There is an excellent management team in place,” said Bill Matheney, FHFMA, CPA, from Matheney Stees and Associates in Chattanooga who did the audit and presented it to the board. “This audit is proof positive of this. It’s one of the least difficult audits we have had.”
The few minor adjustments are “immaterial” and “not systemic” according to Matheney, totaling roughly $6,000 or 11 individual, strictly paperwork adjustments, or about 1 percent of this year’s total profit.
The total profit for the year was a little less than $600,000, up roughly $450,000 from last year.
Part of the reason is that the center was able to “keep on top of receivables,” Matheney said. And accounts payable are down, meaning that the center currently has fewer bills outstanding it needs to pay. It has a strong balance sheet with no major liabilities, meaning it has no major debt. Expenses are down and revenue is up.
Half of all BHRC money spent goes directly to patient care, according to the auditor. But, he also said, an excellent job is being done maintaining and caring for the facility as well.
The current positive situation at the center is due to the foresight of management to anticipate the current rough economic times and planning for them successfully.
What also helped was that the anticipated 7 percent cut in Medicare this past fiscal year did not happen. But, then again, sales tax revenues are also down, counterbalancing some of the positive Medicare monies.
But this possible cut in Medicare funding may still be an issue in future years. No one knows for sure.
Making judicious choices of local vendors also has helped the bottom line, the auditor said.
In addition, the center’s earnings are secure in an endowment fund.
Several reasons were given by the center as to why it has been so successful. One is three-fold: its great staff, teamwork and family atmosphere. Another reason cited is that the management team works well together. It is more than a job to them — it’s a calling, center reps said. Three, most of the current employees have been together as a team for eight years or more. And four, morning meetings keep everyone informed as to all areas of the center.
“We have a good team,” said Joseph Newcomb, administrator for the past three years, “and that makes all the difference.”
And the auditor agreed.
“The nursing home is strong and viable,” Matheney told the board. “You’re doing well when others aren’t ... You’ve done an excellent job.”
- In other business: The annual state survey was a reasonably good inspection, with only a handful of paper trail citations that needed to and have already been corrected.