MCHD 2005 Audit

MENDOCINO COAST HEALTH CARE DISTRICT ANNUAL FINANCIAL REPORT JUNE 30, 2005 and 2004 THOMAS L. CAMP Certified Public Accountant MENDOCINO COAST HEALTH CARE DISTRICT ANNUAL FINANCIAL REPORT JUNE 30, 2005 and 2004 INDEX PAGES MANAGEMENT’S DISCUSSION AND ANALYSIS 1 – 18 INDEPENDENT AUDITOR'S REPORT 19 FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2005 AND 2004 Balance Sheets 20 – 21 Statements of Operations and Changes in Net Assets 22 Statements of Cash Flows 23 Notes to Financial Statements 24 – 41 The District’s Total Operating Revenue increased in each of the past two years by $340,591 (1.1 percent) in 2005 and $2,285,028 (8.2 percent) in 2004. Total Operating Expenses also increased in each of the past two years by $1,941,589 (6.4 percent) in 2005 and $1,612,781 (5.6 percent) in 2004. The District reported Net Operating Losses in 2005 and 2004. Operating losses in 2005 exceeded 2004’s level by $1,600,998 (847.0 percent). The Districts’ Board of Directors has approved managements’ plan to correct the prior years’ deficits and target a 2.2% or approximately a $726,000 Operating Margin in 2006. This plan consists of the following actions for 2006: 1. Renegotiation of Workers Compensation premiums. The District has renegotiated and estimates the premium reduction will increase the operating margin by more than of $550,000 for 2006. 2. ...