The Uhlich Children's Advantage Network is projecting a $3.1 million increase in total revenue for FY2008 compared to FY2007 forecasts. Major drivers include rate increases and expanded census for residential, transitional teen, and foster parenting programs. Expenses are projected to decrease by $297,000 due to reductions for CHA housing, residential, and teen parenting programs, offset by increases for transitional teen and foster parenting programs. Other income sources like foundation grants and investments are expected to remain stable. Key risks to the budget include missing census targets and reductions in state funding.

1. Uhlich Children’s
Advantage Network
FY 2008 Budget Overview
Prepared by: Reginald Walker
Chief Financial Officer
June 11, 2007

2. Revenue Overview

3. Change in Program Revenue
2008 Budget vs. 2007 Forecast
Residential 2,032,524 49.50% Residential 1%
Foster Parenting 3% 3% 2% 2%
Teen Transitional Services
Foster Parenting 742,761 18.09% 21%
50%
Education
Counseling
Teen Transitional Services 856,916 20.87%
Family Based
U-Lead 18%
Education 122,800 2.99%
Flexible Use Funds
Counseling 139,784 3.40% • Residential rate increased from $271 - $310
• Average Residential census increased from 44 to 59
Family Based 90,285 2.20%
• Increased census in Traditional HMR Foster Parenting with
partially offsetting reductions in Spec and Adolescent
U-Lead 64,182 1.56% programs
• Expanded capacity in the TTS program with the opening of
Flexible Use Funds 56,500 1.38% the Keystone property in addition to a 17% rate increase
• Counseling Services expects increased opportunities from
partnerships with the Juvenile Courts and the Children’s
Advocacy Center.
Total Revenue increases 4,105,752 • Education expects a 2% rate increase.
•Family Based programs, U-Lead and Flexible Use Funds all
have very moderate to no expected gains.

4. Change in Program Revenue
2008 Budget vs. 2007 Forecast
Teen Parenting (316,731) 30.50% 9%
31%
Teen Parenting
CHA Housing (624,858) 60.18% CHA Housing
Prevention/Other
Prevention/Other (96,736) 9.32% 60%
• The decline in CHA Housing revenue is the result of
Total Revenue decreases (1,038,325) across the board declines in Service Connector
contracts and a 60% reduction in relocation revenue to
$475,000
• Teen Parenting continues to have declining census
• Conservative revenue estimates are budgeted for
Prevention/Other Category. These are composed of
Parents Anonymous, Office of Mission and Spiritual
Care and Homework
Net Revenue Change 3,067,427

5. Other Income and Support
Net Unrestricted Foundation Net Unrestricted
Grants 184,854 Foundation Grants
Trusts
Trusts 618,923 8%
32%
Miscellaneous Contracts 25%
Miscellaneous Contracts 90,000
Foundation Grants 363,500 Foundation Grants
4%
Board Restricted Investments 383,116 Board Restricted 16% 15%
Investments
State Appropriated Grants 800,000
State Appropriated Grants
Non Fee for Service 2,440,393
• Conservative estimate in unrestricted grants in 2008. Many grants anticipated in 2007 did not materialize
• Trust income is based on 5% total return model
• MIS costs are partially offset by the acquisition of an external consultancy contract
• Current budget contemplates a 2% reduction in allowable spending of investment income
• State Appropriations are conservatively estimated due to many unknowns regarding the state finances

6. Operating Expenses

7. Expense Reductions
1%
2%
6%
CHA Housing (831,805) 15% CHA Housing
48% Residential
Teen Parenting
Family Based
Residential (492,449) Counseling
Prevention/Other
28%
Teen Parenting (264,937)
• Reductions in the CHA Housing program a reflected in the Service
Connector program where CDHS announced a program contraction
Family Based (106,246)
in January 2007. Also as more and more residents are place in
alternative housing we anticipate fewer cases in the relocation
project.
Counseling (26,537)
• High fixed cost in the Residential program limit immediate cost
reductions in the program but under Dr. Guidi's leadership, we
anticipate generating increased efficiencies reflected in reduced
Prevention/Other (24,570) overtime, food and turnover.
• Reduced census in the Teen Parenting program will call for reduced
pass-through cost and a generally smaller program
Total Expense Reductions (1,746,544)
• Family Based programs will achieve greater productivity from
existing headcount and will benefit from intense monitoring from
Finance

8. Expense Increases
1%
3%
Teen Transitional Services 868,619 Teen Transitional Services 10%
Foster Parenting
Foster Parenting 363,919 Education
U-Lead 25% 61%
Education 150,195 Flexible Use Funds
U-Lead 48,995
• Cost will increase in Transitional Teen Services due to
the expanded capacity brought by opening 2153 N
Flexible Use Funds 17,547 Keystone
• Higher caseload from former Catholic Charity clients
Total Expense Increases 1,449,275 will call for increased headcount. Close fiscal monitoring
will be focused on cost control.
• Education cost increases are primarily inflationary
Net Expense Change (297,269)

9. Other Expenses and
Management Overhead
 Significant reduction in M&G due to reduction in
outside help, search fees and headcount
 The sale of Jefferson will reduce depreciation cost,
but the establishment of the Damen rental will offset
these savings
 2% increase projected for salary increases (leading
and impacting only)
 1% 401(k) contribution (increase tied to budget
performance)
 0% increase projected for VP staff

10. Risks
 Inability to make census target (5% shortfall
approximates $350,000 in revenue
 State/Federal appropriations for child welfare
programs fall victim to other priorities (fully
funding state pension, lack business tax
revenue, defense spending etc.)
 Expense creep in smaller programs such as
Counseling and Family Based

11. ?