This document provides an overview of funding sources and key financial indicators for McCormick Home, AOS, and WCA Corporate. For McCormick Home, funding comes from MOHLTC envelopes, resident co-payments, and preferred accommodation charges. Key indicators include balancing spending to funding and maintaining high occupancy rates. For AOS, funding is provided by the SW LHIN and member co-payments. WCA Corporate oversees long-term investment assets and ensures costs are within budget. The document also reviews the 10-year plan, registered charity status, and insurance coverage.

1. WCA Finance Orientation
Webinar
October 2015

2. 2
WCA Finance Orientation
October 2015
Agenda
1. McCormick Home
1. Funding envelopes and CMI
2. Resident co-payments and preferred accommodation charges
3. Rebuild financing
4. Support from (to) McCormick Home Foundation
5. Key financial indicators for the Board
2. AOS
1. Funding sources
2. Support from McCormick Home Foundation
3. Key financial indicators for the Board
2. WCA Corporate
1. Executive office costs
2. Long term investment assets
3. Key financial indicators for the Board
4. 10 Year Plan
5. Registered charity status implications
6. Insurance coverage

3. 3
Funding and Key Financial Indicators
McCormick Home
 MOHLTC/SWLHIN Funding envelopes:
 Envelopes where any surpluses must be repaid to
MOHLTC/SWLHIN
 Nursing and Personal Care ($99.72/resident/day or $5.8
million/year)
 Program and Support Services ($9.23/resident/day or
$539,000/year)
 Raw food ($8.03/resident/day or $469,000/year)
 Other specified (BSO, RPN, Physiotherapy, NP -
$24.65/resident/day or $1,450,000/year)
 Envelopes must be reconciled as at December 31st
 Reallocation between Nursing and Personal Care and Program and
Support Services envelopes provides some flexibility
 Envelopes where surpluses may be retained by Home
 Other accommodations ($53.93/resident/day or $3.15
million/year)
 Includes costs of dietary, housekeeping, laundry, administration,
maintenance, utilities, and surplus

4. 4
Funding and Key Financial Indicators
McCormick Home
 Case Mix Index (CMI) Adjustment
 Nursing and personal care adjusted for CMI (Base of $92.52 times CMI of
1.0778 results in $99.72 per above)
 CMI determined by RAI-MDS system; measures resident health care needs;
reset annually
 2014 CMI suggests that McCormick Home residents require a 7.78% higher
level of care than the average long term care resident in Ontario.
(Translates into $420,480 in additional nursing funding)
 Home must maintain a 97% occupancy rate to maintain full
funding from the Ministry and 98% occupancy to satisfy
SWLHIN performance agreement.
 As at August 2015, occupancy for the year is 99.4%.
 As at September 2015, McCormick Home has a wait list of 374 people: 43%
of the 871 people on the wait list in London/Middlesex/Elgin have selected
McCormick Home as one of their choices.
 McCormick Home accounts for 4% of the 3,922 beds in
London/Middlesex/Elgin counties.

5. 5
Funding and Key Financial Indicators
McCormick Home
 Resident co-payments:
 Rates set by MOHLTC on an annual basis; consistent
across the province and home ownership type (for-profit
versus not-for-profit)
 As of September 1, 2015: $1,774.81 per month for
basic (shared) room.
 MOHLTC subsidizes a basic room if required-subject to
formal approval process. (based on resident’s prior year
taxable income)
 Resident co-payments ($3.2 million/year) reduce
MOHLTC gross funding; they do not add to the Home’s
surplus

6. 6
Funding and Key Financial Indicators
McCormick Home
 Preferred accommodation revenues:
 Premium per day for a private room $25.00/day or $760.42
per month in addition to basic rate
 As of September 1, 2015 (new residents): $2,535.23 per
month for private room
 No MOHLTC subsidy available for private rooms
 Home can retain 100% of preferred accommodation
premiums; no impact on MOHLTC funding. Maximum available
will increase gradually from $630,720/year to $876,000/year
as new residents move in
 Home limited to billing 60% of rooms at private room
rates
 McCormick Home built with 67% private rooms to ensure 60%
is maintained
 Preferred accommodation revenues required to fund
mortgages for rebuilds like McCormick Home

7. 7
Funding and Key Financial Indicators
McCormick Home
 Summary of funding (2015 base levels):
 MOHLTC (NPC, Rec, RF, OA, Specified)$195.56/res/day
 Resident co-payments (100% occ’y) $ (58.35)/res/day
 Net cost to MOHLTC $137.21/res/day
 Actual funding for McC Home (YTD Aug
2015):
 MOHLTC $195.56/res/day
 Resident co-payments (note 1) $(54.46)/res/day
 Net cost to MOH $141.10/res/day
(1) Net cost to MOH higher due to subsidization of low income residents and
impact of occupancy being less than 100%

8. 8
Funding and Key Financial Indicators
McCormick Home
 Redevelopment funding $10.35/resident/day
 Ministry of Health committed to provide per diem funding for 20 years to assist
older Homes like McCormick Home to rebuild
 No capital grants available to Homes
 Funding started in February 2006 with the opening of the Home (11 years
remaining). Total funding $604,440/year.
 Long term mortgage with Desjardins $8.5M (August 2015)
 Interest rate fixed for 20 years (< 5%)
 CMHC insured
 Amortization over 20 years to match redevelopment funding (11 years
remaining)
 Interest on mortgage covered 100% by redevelopment funding
starting in 2009/10.
 Principal payments are covered by preferred accommodation
revenues and increasingly over time by redevelopment funding as
interest expense declines

9. 9
Funding and Key Financial Indicators
McCormick Home
Sources of funds:
Redevelopment funding ($10.35/day) $604,000(11 yrs)
Preferred accommodation ($18-$25.00/day) $750,000 (2016)
Total $1,354,000
Uses of funds:
Long term debt (principal and interest) $1,020,000(11 yrs)
Capital reinvestment (ongoing) $330,000 (2016)
Total $1,350,000
Supplementary information:
Interest expense (fiscal 2016) $410,000
Principal repayment (fiscal 2016) $610,000

10. 10
Funding and Key Financial Indicators
McCormick Home
 Support provided from the McCormick Home Foundation to
McCormick Home
 Grant to enhance quality of resident life $50,000
 Grant to expand role of Social Worker $28,500
 Grant to provide spiritual care $20,000
 Grant related to Golden Dreams $ 3,000
 Grants for one time capital improvements TBD
 i.e. Family dining room, Music enhancement
 Non-capital grants are allocated to Program and Support funding
envelope which must be reconciled annually as at December 31st
.
 Grants account for 19% of total Program and Support envelope
spending
 Manage payment of grants so that no donor dollars are refunded to
MOHLTC on reconciliation on December 31st.

11. 11
Funding and Key Financial Indicators
McCormick Home
 Fee for services charged by McCormick
Home to McCormick Home Foundation
 Finance support ($5,000/year)
 Preparation of monthly financial statements
 Attendance at monthly Foundation Finance committee
by McCormick Home Director of Finance
 Information technology systems and support
 Office rent ($6,000/year)
 Includes housekeeping, utilities and property and
liability insurance
 Rent based on allocation of square footage

12. 12
Funding and Key Financial Indicators
McCormick Home
 Other supports provided to the McCormick Home
Foundation
 WCA covers cost of Directors and Officers insurance for the
McCormick Home Foundation board members and staff
 WCA CEO provides ongoing financial support including preparation
of year end audit file
 McCormick Home Foundation benefits from using WCA auditors
 McCormick Home Foundation benefits from using WCA investment
managers
 WCA CEO prepares annual charitable return filing with CRA
 WCA CEO, Home Administrator and Director of AOS attend
McCormick Home Foundation board meetings
 WCA Director of Communication supports McCormick Home
Foundation staff
 WCA Board and staff support McCormick Home Foundation
fundraising initiatives

13. 13
Funding and Key Financial Indicators
McCormick Home
 Key indicators for the Board
 Balance per diem spending to funding
 Nursing, program and raw food must be balanced
(changes introduced in 2013 allow Homes flexibility
between nursing and recreation envelopes)
 Other accommodations spending should be $2-$3 per
resident day lower than funding resulting in surplus
of $150,000 to $175,000 per year, which helps fund
capital replacements and program expansion.
 Ensure that preferred accommodation (private rooms) is
at the maximum allowable of 60%
 Ensure that occupancy remains greater than 97/98%

14. 14
Funding and Key Financial Indicators
AOS
 Funded by MOHLTC/SW LHIN through Community
Support Services (CSS) funding program from April
1st
to March 31st
corresponding with our fiscal year.
 Members also fund the program through co-
payments ($10.00 per day for program and $10.00
per day for transportation). Subsidies available
through McCormick Home Foundation to support
those in need.
 Summary:
 Total cost of program $2,200,000
 Member co-payments (incl. $25,000 Fdn subsidies-6.5%) $ (385,000)
 Funding from SW LHIN $1,819,000

15. 15
Funding and Key Financial Indicators
AOS
 Support from the McCormick Home Foundation:
 Enhanced program support $20,000
 Co-payment subsidies $25,000
 Support from community strong for AOS program
 As at August 31, 2015 AOS unspent restricted funds in
Foundation total $186,000.
 Typically, restricted donations for AOS range from $50,000 to
$60,000 per year.
 AOS typically benefits from year end requests for
proposals from the SWLHIN for one time capital
items

16. 16
Funding and Key Financial Indicators
AOS
 Key financial indicators
 Balanced spending with funding
 Foundation support
 Subsidy need is increasing (6.5% of total co-
payments)
 Offsetting this is strong donor support for AOS
 Care needed with timing of requests for Foundation
support due to end of year one time funding
programs to avoid using donor dollars to refund
surpluses created.

17. 17
Funding and Key Financial Indicators
WCA Corporate
 Financial statements combine:
 Board and corporate office expenses
 Executive office salaries and benefits
 Executive office costs
 Communication costs
 Strategic planning costs
 Research costs
 WCA Investment assets
 Professional investment management
 Plan of Management

18. 18
Funding and Key Financial Indicators
WCA Corporate
 Long term investment assets:
 Foyston, Gordon & Payne $6,460,976 (Aug 31, 2015)
 Mawer Investment Mgmt $7,147,425 (Aug 31, 2015)
 Asset mix benchmark: 55% bonds; 20% Cdn equity;
15% US equity; 10% International equity

19. 19
Funding and Key Financial Indicators
WCA Corporate
WCA Plan of Management
 Offers legal protection for all Directors against
claims related to losses on investment assets
 Sets out processes for managing investments
 Sets out performance benchmarks: investment
returns and service expectations
 Sets out processes for monitoring investment
manager performance: semi-annual reviews
and formal three year reviews

20. 20
Funding and Key Financial Indicators
WCA Corporate
 Key financial indicators
 Costs versus budget
 Investment performance versus budget
 Investment performance versus benchmarks

21. 21
Funding and Key Financial Indicators
WCA Corporate
 10 Year Plan
 Living, breathing document
 Identifies the long term consequences of alternative
courses of action
 Developed to determine whether we could afford to
operate the home post rebuild
 Key Assumptions:
 4% investment rate of return
 2% inflation rate
 McCormick Home generates a surplus; AOS breaks even
 $200,000 to $400,000 capital reinvestment per year
 Analysis:
 Generates amount of cash available to invest over the next
ten years in maintaining infrastructure and developing new
programs (i.e. research)

22. 22
WCA - A Registered Charity
 Filing requirements
 File T3010 within 6 months of year end
 Compliant to March 31, 2015-assessed as filed
 Disbursement quota
 Disbursement quota rules eased in 2010
 No concern as costs of running McCormick Home are treated as
qualifying expenses
 Increased emphasis on fundraising and administrative
costs of charities
 CRA introduced “Quick View” on Charity Listing on CRA website
 Pie chart of revenue sources
 Pie chart of expenses broken down into management, fundraising and
spending on charitable programs
 No concern for WCA as costs of running McCormick Home and AOS
considered qualifying costs for charity even though funded through
goverments

23. 23
WCA-Insurance
 Property coverage
 Property All Risks
(including Boiler &Machinery) $24,800,000
 Business interruption $ 5,130,000
 Extra expense $ 500,000
 Deductible $ 10,000
 Liability and other
 Health care $10,000,000
 Crime coverage $ 100,000
 Deductible $ 10,000
 Directors and Officers $10,000,000
 Includes McCormick Home Foundation
 Deductible $ 2,500

24. 24
WCA Finance Orientation
 Any questions contact:
Steven Crawford, CEO
519-432-2648 ext 2319
stevec@wcalondon.ca