October 29, 2014

KRCC looks back on another year

By Chris Erickson

Directors, staff and residents looked back on another year and its highlights this past Monday when the Knife River Care Center held its annual meeting.
The assembled crowd heard directly from an Eide Bailly auditor and the KRCC administrator, as well as viewing reports from nursing home managers in the annual compiled informational packet.
Josh Andres, of Eide Bailly, gave a brief synopsis of the yearly report, pointing to the informational packet for more details.
“What you see are the basic financial statements,” Andres said. “In assets there is an increase in property and equipment, which represents a reinvestment by the care center in these grounds and the equipment for care of residents. Liabilities fell during the year, mainly due to the repayment of long-term debt as required by the debt terms.”
Andres then went into a few highlights of the report, including the income statement and total loss of $90,000.
“One thing to keep in mind was that with a very new facility you have a lot of depreciation expense that’s not a cash out flow, but it represents an expense on these financial statements,” he said. “On the statement of cash flow, while there was a loss the facility did generate $632,000 of operating cash that was then used in reinvestment to the facility in terms of improvements to the building and purchase of equipment, and also repayment of the debt use plan of the building.”
Andres added that supplemental information was included with Eide Bailly’s packet, including operational highlights for a three-year period. Those highlights included how resident occupancy had been at 98.1 percent for 2014, compared to 94.9 percent in 2013. For the 2014 year the percentage of salaries and employee benefits to total expense had also increased to 62 percent from 60.5 percent in 2013.
Administrator Keith Gendreau gave his report next, first noting the demands that had been placed on care centers in the past year.
 


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