DESTINATION MEDICAL CENTER CORPORATION (DMCC) BOARD MEETING Thursday, June 23, 2016
Total Page：16
File Type：pdf, Size：1020Kb
DESTIN ATION MEDICAL CENTER CORPOR ATION (DMCC) BOARD MEETING 10:30 A.M. THURSDAY, JUNE 23, 2016 MAYO CIVIC CENTER - ROCHESTER DESTINATION MEDICAL CENTER CORPORATION (DMCC) BOARD MEETING Thursday, June 23, 2016 10:30 A.M. AGENDA Page I. Call to Order II. Roll Call III. Approval of Agenda……………………………………………………………………………………………………01 IV. Approval of Minutes: May 26, 2016………………………………………………………………………….02 V. Public Comment Period VI. Chair’s Report VII. DMCC 2016 Audit (Presenters: Craig Popenhagen, Joe Duda of CliftonLarsonAllen)…………………………………………………………………..05 VIII. City of Rochester A. Update……………………………………………………………………………………………………………….42 B. WMBE: Update IX. Project Update (City of Rochester, EDA) A. Design Guidelines: Update……………………………………………………..48 X. Economic Development Agency A. EDA Update………………………………………………………………………53 B. Discovery Square: Update 1. 2016 BIO International Conference……………………………………..77 XI. DMCC 2016 Budget: Year to Date Update……………………………………………………………… 98 XII. Meeting Schedule: A. Next Regular Meeting: August 25, 2016 at 9:30 A.M. XIII. Adjournment 769238.DOCX 2 3 4 ©2015 CliftonLarsonAllen CliftonLarsonAllen ©2015 LLP Destination Medical Center Corporation CliftonLarsonAllen ©2015 LLP Audit Results for Year Ended December 31, 2015 CLAconnect.com 5 Agenda • Financial Statements CliftonLarsonAllen ©2015 LLP • Audit Results • Required Communications 6 Financial Statements • Prepared based on Governmental Accounting Standards CliftonLarsonAllen ©2015 LLP Board pronouncements • Single program entity—present expenditures by type (natural classification) • Component unit – DMCC is a component unit of (included in) City of Rochester’s financial statements – DMCEDA is not a component unit of DMCC – Will evaluate component unit reporting annually 7 Financial Statements : Assets & Liabilities $1,600,000 ©2015 CliftonLarsonAllen CliftonLarsonAllen ©2015 LLP $1,400,000 $1,200,000 $1,000,000 $800,000 Assets Liabilities $600,000 $400,000 $200,000 $- 2015 2014 8 Financial Statements : Revenues & Expenditures $6,000,000 ©2015 CliftonLarsonAllen CliftonLarsonAllen ©2015 LLP $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 Revenues $2,500,000 Expenditures $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2015 2014 9 Audit Results • Financial statements CliftonLarsonAllen ©2015 LLP • Internal controls – no findings • Minnesota legal compliance – no findings 10 Required Communications • Audit provides reasonable, but not absolute CliftonLarsonAllen ©2015 LLP assurance • Accounting policies – described in Note 1 to the financial statements • Audit adjustments – none • No disagreement or difficulties with management 11 Items to Complete ©2015 CliftonLarsonAllen CliftonLarsonAllen ©2015 LLP • Federal and state tax returns 12 ©2015 CliftonLarsonAllen CliftonLarsonAllen ©2015 LLP Thank you for allowing us to serve you! Contact Information: Craig Popenhagen, Principal 507-434-7041 [email protected] 13 DESTINATION MEDICAL CENTER CORPORATION (A COMPONENT UNIT OF THE CITY OF ROCHESTER, MINNESOTA) FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015 14 15 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2015 INTRODUCTORY SECTION BOARD OF DIRECTORS SECTION I – FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT 1 FINANCIAL STATEMENTS STATEMENT OF NET POSITION AND GOVERNMENTAL FUND BALANCE SHEET 3 STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE 4 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL – GENERAL FUND 5 NOTES TO FINANCIAL STATEMENTS 6 SECTION II – COMPLIANCE LETTERS INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 12 INDEPENDENT AUDITORS’ REPORT ON MINNESOTA LEGAL COMPLIANCE 14 16 17 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA BOARD OF DIRECTORS AS OF DECEMBER 31, 2015 BOARD OF DIRECTORS Tina Flint Smith Chair R.T. Rybak Vice Chair Jim Bier Treasurer Ardell F. Brede Director James Campbell Director Bill George Director Ed Hruska Director Susan Park Rani Director 18 19 SECTION I – FINANCIAL SECTION 20 (This page intentionally left blank) 21 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT Board of Directors Destination Medical Center Corporation Rochester, Minnesota We have audited the accompanying financial statements of the governmental activities and the general fund of the Destination Medical Center Corporation (Corporation), a component unit of the City of Rochester, Minnesota, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the Corporation’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Corporation’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. An independent member of Nexia International (1) 22 Board of Directors Destination Medical Center Corporation Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the general fund of the Destination Medical Center Corporation as of December 31, 2015, and the respective changes in financial position and the budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Management has omitted the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 15, 2016, on our consideration of the Destination Medical Center Corporation’s internal control over financial reporting and on our tests of its compliance with certain provisions of the laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Destination Medical Center Corporation’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Austin, Minnesota June 15, 2016 (2) 23 DESTINATION MEDICAL CENTER CORPORATION ROCHESTER, MINNESOTA STATEMENT OF NET POSITION AND GOVERNMENTAL FUND BALANCE SHEET DECEMBER 31, 2015 General Statement of Fund Adjustments Net Position ASSETS Cash and Cash Equivalents$ 1,000 $ - $ 1,000 Advances to DMC EDA 50,000 - 50,000 Due from Other Governments 183,852 - 183,852 Prepaids 12,620 - 12,620 Accounts Receivable 2,868 - 2,868 Total Assets $ 250,340 - 250,340