Treasurer’s Report

OPTN/UNOS

Board of Directors MeetingJune 25-26, 2012

OPTN Items to be Presented

Fiscal year (FY) 2011 financial results

Consolidated audit report for FY 2011

Proposed budget for FY 2013

OPTN FY 2011 Results

OPTN revenues:$4,153,699 in appropriated federal funds.

Base funding of $2,500,000 Remaining funding for the Deceased Donor Potential Study (DDPS)

$30,456,855 in OPTN registration revenue

52,063 registrations x $585 Registrations were 2,686 or approximately $1,571,000 less than

budget.

OPTN FY 2011 Results

OPTN expenses: $33,039,241 in total expenses. Expenses are covered by:

registration funding of $28,885,542 federal appropriations of $4,153,699.

Expenses were approximately $2,256,000 below budget.

OPTN FY 2011 Results

OPTN Revenues & Expenses Funding – expenses = $1,571,000. Of the $1,571,000, $686,000 was due to

expenses being less than revenues, and $885,000 was due to timing of federal appropriations for the DDPS.

Excess funds (once collected) remain in the OPTN bank accounts until needed.

OPTN FY 2011 Audit OPTN A-133 compliance audit is a component of

the UNOS audit.

Unqualified or “clean” opinion issued on UNOS financial statements and OPTN operations.

No material weaknesses in internal controls or non-compliance with federal or contract requirements was detected.

UNOS is considered a low-risk auditee.

OPTN FY 2011 Audit Board of Directors action required:

RESOLVED, that the 2011 OPTN audited financial statements and the related OMB Circular A-133 compliance audit, as performed by Cherry Baekert and Holland, are hereby approved.

OPTN FY 2011 Results Due to bankruptcy of HISF and closure of the

facility, OPTN and UNOS fees are deemed to be uncollectable.

OPTN fees owed by HISF are $63,237.

Executive Committee waived OPTN and UNOS fees that would generate by the transfer of patients from HISF to other transplant centers.

OPTN FY 2011 Results

Board of Directors action required: RESOLVED, that the OPTN writes off unpaid

OPTN fees of $63,237 from HISF and this information is communicated to the Membership and Professional Standards Committee.

OPTN FY 2012 Projection Revenue and expenses

Registrations are expected to be 1,800 below budget causing a funding shortfall of approx. $1,100,000.

Expenditures should be close to budget. Funding is sufficient to cover expenditures

due to excess funds generated in FY 2010 and FY 2011.

No draw is needed from OPTN reserves.

OPTN FY 2013 Budget OPTN revenues are $36,446,333

$2,500,000 in federal appropriations $33,946,333 in OPTN registration fees OPTN registration fee revenue accounts for

93% of funding. Kidney registrations account for

approximately 63% of total registrations.

OPTN FY 2013 Budget OPTN expenses are $36,446,333

OPTN expenses are approx. $74,000 greater than the FY 2012 Budget.

Cost components and the existing scope of work were not changed due current contract requirements.

It is unknown if the scope of work will change in next OPTN contract.

OPTN FY 2013 Budget - Fees

OPTN fees: $48 (8%) increase from $603 to $651 Registrations are expected to be 1,800 less

than in the FY 2012 Budget. Expenses for FY 2013 are flat compared to

FY 2012. Federal funding is expected to remain at

$2,500,000.

OPTN FY 2013 Budget - Fees

OPTN fees: Uncertainty exists about the number of

registrations for FY 2013 due to implementation of a new Kidney policy.

To fund the budget, and put the OPTN on a good financial footing prior to a period of uncertainty, an 8% fee increase is necessary.

2013 OPTN Budget

Board of Directors action required: RESOLVED, that the 2013 OPTN Operating Budget is

hereby approved, and FURTHER RESOLVED, that the Board of Directors

hereby approves the increase in the OPTN patient registration fee from $603 to $651, effective October 1, 2012.

FURTHER RESOLVED, that Policy 11.0 (Registration Fee) shall be amended as set forth below effective October 1, 2012 (see report).