HomeMy WebLinkAboutHospital Agenda Packet Menchaca, Clarissa
From: Clerk of the Board
Sent: Monday, April 24, 2017 10:45 AM
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Cc: Menchaca, Clarissa
Subject: FW: Hospital Agenda Packet 4-24-1i7 @ 3:30 p.m.
Attachments: agenda packet - hospital JPA 4-24-17.pdf
Please see the email below and attached documentation.
AschLeu N. S"Aey
� I
Assistant Clerk of the Board
Butte County Administration
25 County Center Drive, Suite 200' Orovilie, CA 95965
T: 530.538.2867 1 F: 530.538.7120
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From: Elisa Arteaga fmailto:earteaRa@,Rridle,v.ca.usI
Sent: Friday,Aprill 21, 2017 4:32 PM
To: (gpela v@ mail.com)<gpelaw@ a. ov>; Gridley Herald - Rachel
gmail.com>; City of Biggs<biggsfcl@bigg��_
(heraId,racheI@gp2ajI,com)<heraId.rachel@grnaiI.com>; GRIDLEY HERALD-Alice (aiohnson-cooper@gridleVheraid.com)
<aiohnson-cooper@gridleyheralida.com>.; kirsten storne (kstorne@orchardhospital.com)
<kstorne@orchardhos ital.com>; Reeves, Marion<M Reeves@ butteco u nty.net>; Angela Thompson (ange.lat@biggs-
�gov)<angeIat@biggs-ca.gov>; Connelly, Bill <13ConneIIy@buttecounty.net>; CAROL ARNOLD
(c�arnold12345678(@.Rmail.com)<carnold12 4 678@gMLiIcom>; Frank Hall <buliclogs 67@hotmail.com>; Matt
Michaelis<mmichaeIisPPridIev.ca.us>; Lambert, Steve <SlLambert@buttg�count .net>
Subject: Hospital Agenda Packet 4-24-17 @ 3:30 p.m.
Hello,
Attached is the entire agenda packet. If you have having problems viewing the attachment,you can find it on the city
webside
www.gridley-ca-us (under Finance Dept).
Thank you,
Finance Department
City of Gridley
685 Kentucky Street
Gridley, Ca. 95948
Ph (530) 846-5695
Fax( 530) 846-3229
Email : elisa@gridleyca.us
2
AGENDA
BIGGS-GRIDLEY HOSPITAL AGENCY
REGULAR AGENCY MEETING CITY HALL
3:34 P.M.,MONDAY 685 KENTUCKY STREET
APRIL 24TH,,2017-.- GRIDLEY, CALIFORNIA
MEETING CALLED TO ORDER AGENCY CHAIRMAN
AGENCY ROLL CALL AGENCY SECRETARY
Appointed Members
County of Butte City of Bi>r>xs City of Gridley
Steve Lambert Angela Thompson Frank Hall
Supervisor, District 4 Council Member Council Member
Bill Connelly Carol Arnold Vacancy
Supervisor,District I Resident At Large Representative
1. PUBLIC HEARINGS -None
2. COMMUNITY PARTICIPATION FORUM-3 MINUTE LIMITATION
IN ACCORDANCE WITH STATE LAW, IT SHALL BE THE POLICY OF THIS BOARD
THAT NO ACTION SHALL BE TAKEN ON ANY ITEM PRESENTED DURING THE
PUBLIC FORUM OR ON UNSCHEDULED MATTERS UNLESS THE BOARD, BY
MAJORITY VOTE, DETERMINES THAT AN EMERGENCY SITUATION EXISTS, OR
UNLESS THE COUNCIL BY A TWO-THIRDS VOTE FINDS THAT THE NEED TO TAKE
ACTION AROSE SUBSEQUENT TO THIS AGENDA BEING POSTED. MEMBERS OF
THE PUBLIC MAY ADDRESS BOARD ON MATTERS THAT ARE NOT OTHERWISE
SCHEDULED FOR A PUBLIC HEARING.
2.1 PUBLIC
2.2 BOARD
2.3 STAFF
3. AWARD OF CONTRACTS- None
4. CONSENT AGENDA
4.1 Approval of Biggs-Gridley Hospital Agency meeting minutes dated September 22"d,2415.
4.3 Audit Report Approval for fiscal year 2015/2016.
BIGGS-GRIDLEY HOSPITAL AGENCY: Regular Meeting April 24, 2017 Page 1 q(2
5. AGENCY BOARD CONCERNS AND REPORTS
5.1 Agency Release of Funds
The agency board will be presented with the summary of the costs attributable to standby
charges incurred by the hospital.
Recommendation
1. Accept the invoices from Biggs-Gridley Memorial Hospital as an accurate
representation of their emergency room standby charges for the year ended June 30,
2016.
2. Authorize the release of funds up to the amount of the invoice based on available funds
remitted (less anticipated costs due for administration and audit).
5.2 Budget Adoption
The Agency has no funding source besides the annual assessment of properties,the budgeted
revenues and expenditures for the agency shall be equal to the expected receipts of the annual
assessment for each year.
Recommendation
Adopt Resolution##2017-R-001, "A RESOLUTION OF THE BOARD OF THE BIGGS-
GRIDLEY HOSPITAL AGENCY ADOPTING BIANNUAL BUDGET FOR FISCAL YEAR
201612017,by reading of title only.
6. CORRESPONDENCE—None
7. UNSCHEDULED MATTERS-IN ACCORDANCE WITH STATE LAW, IT SHALL BE
THE POLICY OF THIS BOARD THAT NO ACTION SHALL BE TAKEN ON ANY ITEM
PRESENTED DURING THE PUBLIC FORUM OR ON UNSCHEDULED MATTERS
UNLESS THE BOARD, BY MAJORITY VOTE, DETERMINES THAT AN EMERGENCY
SITUATION EXISTS, OR,UNLESS THE BOARD BY A TWO-THIRDS VOTE FINDS
THAT THE NEED TO TAKE ACTION AROSE SUBSEQUENT TO THE POSTING OF
THIS AGENDA.
S. INFORMATIONAL ITEMS-None
9. CLOSED SESSION-None
10. ADJOURNMENT
THIS AGENDA WAS POSTED ON THE PUBLIC BULLETIN BOARD IN THE FOYER OF
BUTTE COUNTY, BIGGS CITY HALL, AND GRIDLEY CITY HALL PRIOR TO THE MEETING
DATE IN ACCORDANCE WITH GOVERNMENT CODE SECTION 54954.2.
BIGGS-GRIDLEY HOSPITAL AGENCY:Regular Meeting,Ari[24 2017 Pae 2 0 2
MINUTES OF THE
BIGGS-GRIDLEY HOSPITAL AGENCY
REGULAR AGENCY MEETING CITY HALL
3;04 P.M.,Tuesday 685 KENTUCKY STREET
September 22nd 2015 GRIDLEY CALIFORNIA
The meeting was called to order at 3:16 p.m. by Vice Chairman Connelly. > ..
Appointed Members Present.
County of Butte City of:Gridley
Steve Lambert Jeff diaper
Supervisor,District 4 Council:Member
Bill Connelly Jack B,:Storne
Supervisor,District 1 A..-Large Representative
r 'tiv`
Appointed members Absent.
CYx of Biggs
Angel*Thompson
Cour iiember
4`
Arriving post roll call
,t Carol Arnold `
Resident .
0-
1. PUBIIC'HEARINGS'=: 'None
2. COMMUNITY,PARTICIPATION FORUM
2.1 PUBLIC—
Steve Stark,Hospital Administrator,provided a verbal update. He announced the hospital was in the
process of hiring a new physician,Jack Lane and Thomas Devine,NP. There has been a dramatic
improvement and they are 250,000 in the black.
2.2 BOARD -None
2.3 STAFF-None
3. AWARD OF CONTRACTS -None
BIGGS-GRIDLEY HOSPITAL MINUTES:Regular Meeting._September 22 2015 _ Page 1 gL3
4. CONSENT AGENDA
4.1 Approval of Biggs-Gridley Hospital Agency meeting minutes dated September 24'x',2014.
4.2 Approve 2015-2016 Special Tax Assessment and Fee Information
4.3 Audit Report Approval for fiscal year 201412015.
MOTION BY STORNE, SECOND BY CONNELLY, for the approval of consent items 4.1, 4.2, &4.3.
By unanimous vote, the motions passes, 4-0.
5. AGENCY BOARD CONCERNS AND REPORTS.: . .. `'_
5.1 Agency Release of Funds
The agency board was presented with the summary of tbi. osts attributable to standby 84p'Fges incurred
by the hospital. There were no questions or concerns.
MOTION BY CONNELLY, SECOND BY DRAPER, for approval;of the following:
1. Accept the invoices from BlggGzile .,,Memorial Hasp tat;as>'an accurate representation
of their emergency room standby charges`,"for.the year ended`June 30, 2015.
2. Authorize the release of funds up' o the amountgf.the invoice based on available fiends
remitted{less anticipated costs duefor ad'mis'trat gn and audit}.
By unanimous vote, themotion passes 4-0.
5.2 Budget Adoption
Matt Michaelis, Treasurer,p'rovlded a verbal update of the Agencies funding source and an overview of
expenditures. He announced;tZat therereno,other sources besides the annual assessment of properties,
the l� cgeted<revenues and expenditures"fox`the agency which Shall be equal to the expected receipts of
the annual'ass.essment for eact�year.
MOTION BY DRAPER, SECOND BY CONNELLY, for the adoption of Resolution#2015-R-001,"A
RESOLUTION-:OF TSE'BOARD OF THE BIGGS-GRIDLEY HOSPITAL AGENCY
ADOPTING B ':S AL BUDGET FOR FISCAL YEAR 201512016, by reading of title only.
By unanimous vote, the motion passes 4-0.
5.3 Bank Account Authorization
Elisa Arteaga, Secretary provided a verbal update as to the bank account signers, as reflected in the
resolution.
MOTION BY CONNELLY, SECOND BY DRAPER, for approval of the following:
1. Approve the use of Bank of America as the provider of banking services.
BIGGS-GRIDLEY HOSPITAL MINUTES:Regular Meeting,September 22,2015 Page 2 of 3
2. Adopt Resolution No. #2015-R-02,"A RESOLUTION OF THE BOARD OF THE
BIGGS-GRIDLEY HOSPITAL AGENCY AUTHORIZING CERTAIN BOARD AND
OFFICERS TO SIGN THE AGENCY'S BANK OF AMERICA CHECKING
ACCOUNTS,"by reading of title only.
By unanimous vote, the motion passes 4-0.
Appointed board member Carol Arnold arrived post roll call.
Steve Stark and Kirsten Storne, Hospital representatives expressed her appreciation for the board
6. CORRESPONDENCE—None
y:fes,
7. UNSCHEDULED MATTERS -None
8. INFORMATIONAL ITEMS-None `
9. CLOSED SESSION -None
10. ADJOURNMENT—at 3:40 p.m. the meeting adjourfed to'`the next regularly scheduled annual
meeting.
APPROVED:
Chairman:
Steve Lambert
Secretary:
r,
Elisa L.A`
rteaga
BIGGS-GRIDLEY HOSPITAL MINUTES:Regular Meeting,September 22 2015 Page 3 n 3
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Biggs-Gridley Hospital Agency
Gridley,California
FINANCIAL STATEMENTS WITH INDEPENDENT AUDITORS' REPORT
June 30, 2016 and 2015
I< C O E
! 5 O m
„ F
Biggs-Gridley Hospital Agency
TABLE OF CONTENTS
June 30, 2015 and 2015
Page
Number
Independent Auditors' Report 1
Statements of Financial Position 3
Statements of Revenues, Expenses, and Changes in Financial Position 3
Statements of Cash Flows 4
Notes to the Financial Statements 5
KCOE
S O M
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Biggs-Gridley Hospital Agency
Gridley,California
We have audited the accompanying financial statements of Biggs-Gridley Hospital Agency (the
Agency), as of and.for the years ended June 30, 2016 and 2015, and the related notes to the
financial statements, which collectively comprise the Agency's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
The Agency's 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 an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the
United States of America. Those standards require that we plan and perform the audits 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 Agency'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
Agency'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 opinion.
Page 1
INDEPENDENT AUDITORS' REPORT
(Continued)
Opinion
In our opinion,the financial statements referred to above present fairly, in all material respects,
the financial position of the Agency as of June 30, 2016 and 2015, and the changes in its
financial position and its cash flows for the years then ended in accordance with accounting
principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in note 1 to the financial statements, the Agency is no longer in existence as
Measure C was not extended beyond the 2015-16 fiscal year.
Other Matters
Management has omitted management's discussion and analysis that accounting principles
generally accepted in the United States of America require 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 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.
I<Cv jtw I LL P
March 14,2017
Chico,California
Page 2
Biggs-Gridley Hospital Agency
STATEMENTS OF FINANCIAL POSITION
June 30 2016 2015
Current Assets
Cash $ 4,829 $ 3,829
Assessments receivable 328,347 325,663
Total Current Assets $ 333,1.76 $ 329,492
CURRENT LIABILITIES AND NET POSITION
Accrued expenses $ 5,300 $ 5,365
Payable to the Hospital 323,000 320,000
Total Current Liabilities 328,300 325,365
Unrestricted net position 4,876 4,127
TOTAL CURRENT LIABILITIES AND NET POSITION $ 333,176 $ 329,492
The accompanying notes are an integral part of these financial statements.
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FINANCIAL POSITION
June 30 2016 2015
Revenue
Special property tax assessments $ 328,347 $ 325,663
Expenses
Administration and professional fees 4,598 5,565
Allocations to the Hospital 323,000 320,000
Total Expenses 327,598 325,565
Excess of Revenues 749 98
Net Position-Beginning of Year 4,127 4,029
Net Position-End of Year $ 4,876 $ 4,1.27
The accompanying notes are an integral part of these frnanclol statements.
Page 3
Biggs-Gridley Hospital Agency
STATEMENTS OF CASH FLOWS
Years Ended lune 30 2016 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Special property tax assessments received $ 325,663 $ 326,680
Allocations paid to the Hospital (319,398) (324,000)
Payments to suppliers for goods and services (5,265) (5,465)
NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES 1,000 (2,785)
Cash-Beginning of Year 3,829 6,614
Cash-End of Year $ 4,829 $ 3,829
RECONCILIATION OF EXCESS REVENUES TO
NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES
Excess revenues $ 749 $ 98
Adjustments to reconcile excess revenues
to net cash provided (used) by operating activities:
Changes in assets and liabilities:
Assessments receivable (2,684) 1,017
Accrued expenses (65) 100
Payable to the Hospital 3,000 (4,000)
NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES $ 1.,000 $ (2,785)
The accompanying notes are an integral part of these financiol statements.
Page 4
Biggs-Gridley Hospital Agency
NOTES TO THE FINANCIAL STATEMENTS
1. NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity In November 2006, the voters approved Measure C (1, 2, and 3) in Gridley, Biggs,
and surrounding unincorporated areas of Butte County to provide support to the Biggs-Gridley
Memorial Hospital (the Hospital). The Hospital changed their name to Orchard Hospital in 2013. The
revenues generated from the tax can only be used for stand-by costs of providing emergency room
services. The City of Gridley (the City) is the lead agency in the collection of assessments and the
administration of the Biggs-Gridley Hospital Agency(the Agency)formed pursuant to the provisions of
the California Government Code, under a joint powers agreement, by and between the City of Biggs,
the City, and the County of Butte (the County). The seven-member board of directors consists of two
members appointed by each of the three member agencies and one director appointed by at least
four votes of the Board of Directors.
Funding for the Agency comes from a voter-approved special property tax which is assessed on an
annual basis. Commencing in the 2006-07 fiscal year, the special property tax was levied against real
property located within the boundaries of Butte County Service Area 37 at the maximum flat rate of
no more than seventy dollars ($70) per single family equivalent residential unit.The tax will be levied
for a period of 10 years. For purposes of defining an equivalent residential unit, the following
categories were established:
A. Single family residential (1 unit)
B. Multi-family residential unit(.75 unit)
C. Condominium(.75 unit)
D. Vacant parcels and parcels without residential units are not subject to the special property
tax.
The City, on behalf of the Agency, determines the assessment roll and provides the information to the
County.The County collects the special property tax assessments and remits the proceeds to the City
for the benefit of the Agency. Secured property taxes attach as an enforceable lien on property as of
March 1. The taxes are due each year in two equal installments on November 1 and February 1 and
are delinquent if not paid by December 10 and April 10, respectively.
In November 2016, voters did not approve an extension of Measure C beyond its initial ten year
period. The Agency has received its final assessments from the City and has remitted them to the
Hospital. After all liabilities are paid, any remaining cash will remain with the hospital according with
its voter-approved intended use.
Basis of Accounting The Agency has adopted the provisions of Statement No. 34, Basic Financial
Statements---and Management's Discussion and Analysis far State and Local Governments, of the
Governmental Accounting Standards Board (GASB), but has elected to not present management's
discussion and analysis (MD&A) that GASB has determined is necessary to supplement, although not
required to be a part of,the basic financial statements.
The financial statements are prepared using the economic measurement focus and the accrual basis
of accounting. Revenues are recorded when earned,and expenses are recorded when incurred.
Page.5
Biggs-Gridley Hospital Agency
NOTES TO THE FINANCIAL STATEMENTS
(Continued)
Cosh Cash is on deposit at a bank. The remittances from the County are held in the City cash and
investment pool until transferred to the Agency bank account. California statutes authorize cities to
invest pursuant to the California Government Code, Section 53600. The City's funds were held
primarily in a financial institution and with the Local Area Investment Fund (LAIF).The deposits in the
financial institution are covered by the federal depository insurance up to the maximum allowed by
law, and the balance is collateralized as required under state law by the pledging financial institution
with assets held in a common pool for the City and other governmental agencies, but not in the name
of the City.
LAIF is a special fund of the California State Treasury, though local governments may pool
investments. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The
Board consists of five members as designated by state statute. Copies of the LAIF's annual financial
report and other information may be obtained from LAIF at 915 Capitol Mall, Room 110, Sacramento,
California, 95814; or at its website, www.treasurer.ca.gov[pmia-laif/. The fair value of the City's
investment in this pool is reported on their financial statements at amounts based on the City's pro-
rata share of the fair value provided by LAIF for the entire portfolio. The balance available for
withdrawal is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis.
2. ASSESSMENTS RECEIVABLE
The assessments receivable represent the amounts the County has sent to the City plus the amount
that will be sent subsequent to year end.The balances are as follows:
June 30 2016 2015
Assessments receivable from the City $ 313,787 $ 310,394
Assessments receivable from the County 14,560 15,269
Total Assessments Receivable $ 328,347 $ 325,663
3. RISK MANAGEMENT
The City is a member of the Northern California Cities' Self-Insurance Fund (NCCSIF) along with 20
other northern California cities. The Agency is named as an additional covered party in connection
with the policy carried by the City. The NCCSIF is a Joint powers authority (JPA) organized in
accordance with Article I, Chapter 5, Division 7,Title 1 of the California Government Fund Programs.
The purpose is to create a common pool of funds to be used to meet obligations of the parties to
provide insurance. Ultimate liability for payment of claims and insurance premiums resides with
member cities. The NCCSIF is empowered to make supplemental assessments as needed to eliminate
deficit positions of member cities. If the JPA becomes insolvent, the City is responsible only to the
extent of any deficiency in its equity balance.Any allocable amount to the Agency would be minimal.
Page 6
Biggs-Gridley Hospital Agency
Gridley, California
REPORT TO THE BOARD OF DIRECTORS
June 30,2016 Il C O E
I S 0 m
K C 0 E
1S0NI
To the Board of Directors
Biggs-Gridley Hospital Agency
Gridley,California
We have audited the financial statements of Biggs-Gridley Hospital Agency (the Agency), as of
and for the year ended June 30, 2016, and have issued our report thereon dated March 14,
2017. Professional standards require that we advise you of the following matters relating to our
audit.
Our Responsibility in Relation to the financial Statement Audit
As communicated in our engagement letter dated August 12, 2013, our responsibility, as
described by professional standards, is to form and express an opinion about whether the
financial statements that have been prepared by management with your oversight are
presented fairly, in all material respects, in accordance with accounting principles generally
accepted in the United States of America. Our audit of the financial statements does not relieve
you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are
free from material misstatement. An audit of financial statements includes consideration of
internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Agency's internal control over financial reporting.Accordingly, as part of our
audit, we considered the internal control of the Agency solely for the purpose of determining
our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in
our professional judgment, relevant to your responsibilities in overseeing the financial reporting
process. However,we are not required to design procedures for the purpose of identifying other
matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you.
Page 1
Compliance With All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and our network firms have
complied with all relevant ethical requirements regarding independence.
Safeguards have been implemented to reduce the threats on our independence. These
safeguards include continuing education related to independence and ethics requirements;
external peer review of our firm's quality control system; our firm's internal policies and
procedures which are designed to monitor compliance with the independence requirements;
and the involvement of another firm partner who is responsible for completing an independent
technical review of the financial statements and significant audit conclusions.
Qualitative Aspects of the Agency's Significant Accounting Practices
Significant Accounting Policies Management has the responsibility to select and use
appropriate accounting policies. A summary of the significant accounting policies adopted by
the Agency is included in note 1 to the financial statements. There have been no initial
selections of accounting policies and no changes in significant accounting policies or their
application during 2016. No matters have come to our attention that would require us, under
professional standards, to inform you about: (1) the methods used to account for significant
unusual transactions, and (2) the effect of significant accounting policies in controversial or
emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates Accounting estimates are an integral part of the financial
statements prepared by management and are based on management's current judgments.
Those judgments are normally based on knowledge and experience about past and current
events and assumptions about future events. Certain accounting estimates are particularly
sensitive because of their significance to the financial statements and because of the possibility
that future events affecting them may differ markedly from management's current judgments.
The most sensitive accounting estimates affecting the financial statements are the collectability
of assessments receivable from the City of Gridley.
Management's estimate of the collectability of the assessments receivable is based on historical
collectability and management's expectations. We evaluated the key factors and assumptions
used to determine the collectability of the assessments receivable and determined that it is
reasonable in relation to the basic financial statements taken as a whole.
Financial Statement Disclosures Certain financial statement disclosures involve significant
judgment and are particularly sensitive because of their significance to financial statement
users. No disclosures were identified as meeting this criterion.
Significant Difficulties Encountered During the Audit
We encountered no significant difficulties in dealing with management relating to the
performance of the audit.
Page 2
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial,
and communicate them to the appropriate level of management. Further, professional
standards require us to also communicate the effect of uncorrected misstatements related to
prior periods on the relevant classes of transactions, account balances or disclosures, and the
financial statements as a whole.There were no uncorrected misstatements.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit
procedures.There were no misstatements identified.
Disagreements With Management
For purposes of this letter, professional standards define a disagreement with management as a
matter,whether or not resolved to our satisfaction,concerning a financial accounting, reporting,
or auditing matter, which could be significant to the Angency's financial statements or the
auditors' report. No such disagreements arose during the course of the audit.
Representations Requested From Management
We have requested certain written representations from management that are included in the
management representation letter dated March 14,2017.
Management's Consultations With Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informers us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings,or Issues
As discussed in note 1 to the financial statements, in November 2016,voters did not approve an
extension of Measure C beyond its initial ten year period. The Agency has received its final
assessments from the City and has remitted them to the Hospital. All liabilities have been paid
and any remaining cash was donated to the Hospital.
In the normal course of our professional association with the Agency, we generally discuss a
variety of matters, including the application of accounting principles and auditing standards,
operating and regulatory conditions affecting the Agency, and operational plans and strategies
that may affect the risks of material misstatement. None of the matters discussed resulted in a
condition to our retention as the Agency's auditors.
Page 3
This report is intended solely for the information and use of the Board of Directors, and
management of the Agency and is not intended to be, and should not be, used by anyone other
than these specified parties.
"'KCV Jtw I L L
March 14, 2017
Chico, California
Page 4
RESOLUTION NO.
2017-R-001
A RESOLUTION OF THE BOARD OF THE BIGGS-GRIDLEY HOSPITAL AGENCY
ADOPTING BUDGET FOR FISCAL YEAR 2016/2017
WHEREAS, the Agency was formed upon the successful vote of the people in November
2006; and
WHEREAS,the Agency formation agreement recommends that good accounting
practices be maintained; and
WHEREAS,as a governmental agency,good accounting practices includes the budgeting
for revenues and expenditures to provide controls over the funds of the Agency; and
WHEREAS,the Agency has two sources for expenditures that included:
Contract payments to the Biggs-Gridley Hospital
Reimbursement of costs to the City of Gridley for administration of the JPA
WHEREAS, the Agency desires to establish a fiscal reporting period for the Agency; and
WHEREAS, the Agency desires to approve the budget for the proposed 2016/2017 fiscal
year budget as detailed below;
NOW,THEREFORE, BE IT RESOLVED AND ORDERED that the Agency's fiscal
reporting year shall start on July 1 and end on June 30 of the following year; and
BE IT FURTHER RESOLVED that the board members of the Biggs-Gridley Hospital
Agency do hereby authorize the supplemental revenues and expenditures for the budget of the
Agency as follows:
For the 2016-2017 fiscal year, based on estimated total assessment collections of$329,647:
BIGGS-GRIDLEY HOSPITAL AGENCY 2016-17 Budget
Revenues
based on 2015-16 Tax Receipts 329,647
County Administration Fees 1,300
Bank fees 304
l Revenues4
Exl2enditures
Audit Fee 5,265
Legal Expenses 500
City of Gridley Admin Charges 500
Total Expenses _ 6.265
Hospital EmerUnEy Services 321,778
Remainin funds 0
I HEREBY CERTIFY that the foregoing resolution was duly introduced and passed at a
regular meeting of the Board of the Biggs-Gridley Hospital Agency held on the 24'x' day of
April, 2017,by the following vote:
AYES: BOARD MEMBERS
NOES: BOARD MEMBERS
ABSTAIN: BOARD MEMBERS
ABSENT: BOARD MEMBERS
ATTEST: APPROVE:
SECRETARY, Elisa Arteaga CHAIRMAN, Steve Lambert