Hillcrest ready for last payment on $1 million loan
McCOOK, Neb. — Hillcrest Nursing Home will make the last payment in September on the $1 million loan it utilized to pay expenses in 2012.
The $220,000 payment will be in September, said Renee Wright, business manager at Hillcrest, at the regular Hillcrest Board of Trustees meeting Tuesday.
In July 2012, Red Willow County Commissioners authorized a $1 million bank loan to Hillcrest from McCook National Bank for five years, at a 3.55 interest rate, to help with cash flow problems that occurred when a billing clerk was terminated and three months of Medicare and Medicaid payments were not filed.
At the regular meeting Tuesday, the board heard presentations from Steve Placke of the Grand Island auditing firm, Shonsey and Associates, on the annual financial audit, using financials from June 30, 2016 and 2015.
Other long-term liabilities at Hillcrest cited in the audit are the 15-year general obligation bond issued in 2011, used for extensive renovation at the facility and a five-year Capital Lease Payable/Baytree National Bank loan in 2013 for electronic charting/financial software.
The original amount of the general obligation bond was $2,145,000, with an ending balance as of June 2016, according to the audit. Payments are $100,000 per year.
The Capital Lease Payable/Baytree National Bank loan is for five years at 6.75 percent interest with 60 payments of $4,715.88.
Financial highlights in the audit included:
* Fhe assets of Hillcrest exceeded its liabilities at the cost of the most recent year (2016) by $2,656.811 (net position) Of this amount, $760,782 is unrestricted.
* The net position of Hillcrest Nursing Home increased by $81,321 as a result of the current year’s operations compared to a decrease of $64,995 the prior year
* During the year ending June 30, 2016, operating revenue increased by $358,836 and operating expenses increased by $299,470.
Recommendations from the audit included: timely monthly bank reconciliations; reconciling different ledgers each month, bad-debt write-offs should be approved by the board, timely follow-up on accounts will lessen the likelihood of uncollectible amounts, proper documentation in adjusting entries and periodic board member review of bank statements.