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Monthly Board Report Package

Ronald McDonald House Charities® of San Diego

December 9, 2015

Ronald McDonald House Charities® SAN DIEGO 2929 Children’s Way San Diego, CA 92123 858.467.4750 Phone 858.467.4757 Fax [email protected] www.rmhcsd.org

PRESIDENT & CEO CHARLES E. DAY

BOARD OF TRUSTEES

BRIAN CAHILL CHAIR

HUDSON B. DRAKE

VICE CHAIR

JENNIFER HARTER SECRETARY

DANIEL GRIMMER

TREASURER

TRAVIS ALEGRIA

DAN CLOSE

J. NICHOLAS COLE

DONNA EVANS

SUSAN HOEHN

CLELAND LANDOLT, MD

IRVIN A. KAUFMAN, MD

LESLIE MANNES

CHRIS MARSH

JANICE MCKINNON

OFELIA MELENDREZ-KUMPF

GREG ROGERS

ABBASEH SAMIMI

PAUL SCHMID

mailto:[email protected]

http://www.rmhcsd.org/

Ronald McDonald House Charities of San Diego BOARD OF TRUSTEES MEETING AGENDA

Wednesday, December 9, 2015, 11:30 a.m. – 1:30 p.m. PAGE I. Welcome & Introduction – Brian Cahill, Chair 11:30 am

A. Introduction of New Trustee: 1. Cleland Landolt, MD

B. Introduction of New Staff 1. Beth van Eetveldt

C. 2016 Schedule of Meetings…………………………………………………………..5 D. Board of Trustees Roster……………………………………………………………..6

II. Partner Presentation: 11:40 am Congenital Heart Surgery: The San Diego – Hawaii Connection John J. Lamberti, M.D., Eugene and Joyce Klein Director of the Children's Heart Institute, Rady Children's Hospital – San Diego; Professor of Surgery, University of California, San Diego, School of Medicine III. Consent Agenda 12:00 pm

A. Board of Trustees Minutes for Approval – Brian Cahill, Chair……………………..9 1. October 14, 2015 Annual Meeting of the Members 2. October 14, 2015 Board of Trustees Meeting

B. Committee Report……………………………………………………………..……18 1. House Operations – Travis Alegria, Chair

November 2015 Report IV. Nominating and Governance Committee – Hudson Drake, Chair 12:05 pm

A. Appointment of Committee Members…………………………………….………..28 1. Development Committee – Greg Rogers 2. Marketing Communications Committee – Chris Marsh

B. Resolution for Appointment of Committee Members…………………………...…30 V. Finance Committee – Daniel Grimmer, Chair 12:10 pm A. October and November 2015 Reports……………………………………………......32

B. December 2015 Minutes…………………………………………………………....37 C. 2016 Budget and Resolution……………………………………………………….38

VI. Audit Committee – Dan Close, Chair 12:30 pm A. December 2015 Report…………………………………………………..……….....48

VII. Future Growth/Long-Term Aspirations Committee – Greg Rogers, Chair 12:35 pm A. Site Feasibility Study Status B. Update on Negotiations with Rady Children’s Hospital – San Diego

VIII. House Raffle Committee – Chuck Day 12:45 pm A. House Raffle Update

IX. Development Committee – Donna Evans, Chair 12:50 pm A. November 2015 Report

B. Year-End Fundraising Update C. Solicitation Status Report

X. Marketing Communications Committee – Donna Evans, Chair 1:05 pm A. December 2015 Report

XI. House Operations Committee – Travis Alegria, Chair 1:15 pm A. House Operations Year-End Report

XII. President’s Report 1:25 pm XIII. Adjournment/Calendar Next Meeting 1:30 pm

A. RMHCSD Meeting of the Board of Trustees: 11:30 a.m. – 1:30 p.m., Wednesday, January 6, 2016

I. Welcome & Introductions

Ronald McDonald House Charities of San Diego, Inc. 2929 Children’s Way, San Diego, CA 92123 858.467.4750 Phone 858.467.4757 Fax www.rmhcsd.org [email protected]

Proposed 2016 Board Meeting Schedule The Board of Trustees will hold ten (10) full Board of Trustees Meetings in 2016. We will not have meetings in August or November. The proposed meetings are scheduled for 11:30 a.m. on the 2nd Wednesday of each month, unless otherwise noted, at our Ronald McDonald House. You will receive a meeting reminder prior to each meeting. Full Board Meetings

• January 6 (1st Wednesday this month only)

• February 10

• March 9

• April 13

• May 11

• June 8

• July 13

• August – NO MEETING

• September 14

• October 12 (Annual Meeting followed by Board of Trustees Meeting)

• November – NO MEETING

• December 14

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http://www.rmhcsd.org/


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Ronald McDonald House Charities of San Diego, Inc. 2929 Children’s Way, San Diego, CA 92123 858.467.4750 Phone 858.467.4757 Fax www.rmhcsd.org [email protected]

RONALD MCDONALD HOUSE CHARITIES – SAN DIEGO

BOARD OF TRUSTEES ROSTER – October 2015

O:\Board\Manual\Manual, Orientation - 2012 and forward\21 (4 h ) Board Roster 101915v2.doc

Travis Alegria House Operations Committee Chair, Finance Committee Branch Sales Manager Sharp Business Systems Home: 11523 Madera Rosa Way San Diego, CA 92124-2808 Cell: 760-672-3386 E: [email protected] Brian Cahill, CCM, LEED AP Chair,Golf Invitational Chair Division President, California Balfour Beatty Construction 10620 Treena Street, Suite 300 San Diego, CA 92131-2433 Ofc: 858-635-7400 Cell: 858-531-8126 E: [email protected] Dan Close, CPA/ABV, CVA Audit Committee Chair, Compensation Committee Chair Founder EDR Valuations, Inc. 777 So. Hwy 101, Suite 201 Solana Beach, CA 92075-2624 Ofc: 858-792-6800 E: [email protected]

J. Nicholas Cole

House Raffle Committee Chair, Finance Committee Executive Vice President, Corporate Banking Group Wells Fargo & Company 1808 Aston Avenue, Suite 250 Carlsbad, CA 92008 Ofc: 760-918-2705 Cell: 760-672-5265 E: [email protected]

Hudson B. Drake Vice Chair, Nominating & Governance Committee Chair Retired Aerospace Executive Home: 1707 Soledad Avenue La Jolla, CA 92037 Home: 858-551-4181 Fx: 858-551-7681

E: [email protected] Donna Evans Development Committee Chair, Marketing Communications Committee Chair, Strategic Planning Committee Chair President, Evans Resource Group, Inc. 735 West Bluff Drive Encinitas, CA 92024 Cell: 760-519-0664 Fx: 760-944-9448 E: [email protected]

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Daniel Grimmer Treasurer, Finance Committee Chair, Compensation Committee, House Operations Committee Restaurant Consultant 239 Delphinium Street Encinitas, CA 92024 Cell: 858-829-6273 E: [email protected]

Jennifer Harter Secretary, Compensation Committee, Finance Committee, House Operations Committee Vice President, Branch Manager City National Bank 800 Silverado Street, Ste 100 La Jolla, CA 92037 Ofc: 858-768-7010 Cell: 619-301-6560 E: [email protected] Susan Hoehn House Operations Committee, Marketing Communications Committee Owner, Hoehn Motors Home: PO Box 1606 Rancho Santa Fe, CA 92067 Home: 858-759-1102 E: [email protected]

Irvin A. Kaufman, M.D. Future Growth/Long-Term Aspirations Committee Chief Medical Officer Rady Children’s Hospital-San Diego Work Mailing Address: MC 5034 3020 Children’s Way San Diego, CA 92123-4282 Work Location Address: 8001 Frost Street San Diego, CA 92123 Ofc: 858-966-4001 Fx: 858-966-7751 E: [email protected] Cleland C. Landolt, M.D. Strategic Planning Committee President & CEO, Cambridge Life Science Strategies 7790 Via Francesco, Unit 5 San Diego, CA 92129 Ofc: 858-484-3934 Cell: 858-922-2335 E: [email protected] Leslie Mannes Development Committee, Marketing Communications Committee

McDonald’s Owner/Operator 2717 Mackinnon Ranch Road Cardiff by the Sea, CA 92007-2208 Ofc: 760-942-0867 Cell: 858-342-8338 E: [email protected]

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Chris Marsh Member at Large Complex Director – San Diego County UBS Financial Services Inc. 1200 Prospect Street, Ste 500 La Jolla, CA 92037 Ofc: 858-551-9408 E: [email protected] Janice McKinnon Development Committee Retired Airline Executive 1125 Pacific Beach Drive, #101 San Diego, CA 92109 H: 858-273-1145 E: [email protected]

Ofelia Melendrez-Kumpf

Development Committee Vice President and General Manager, McDonald’s USA – Southern California Region 3800 Kilroy Airport Way, Ste 200 Long Beach, CA 90806 Ofc: 562-753-2001 E: [email protected]

Greg Rogers

Future Growth/Long-Term Aspirations Committee Chair, House Raffle Committee CEO, Pacific Building Group 9752 Aspen Creek Court, Ste 150 San Diego, CA 92126 Ofc: 858-552-0600 E: [email protected]

Abbaseh Samimi Finance Committee Vice President, Strategic Market Analysis and Contracts Qualcomm Technology Licensing 5775 Morehouse Dr. N985M San Diego, CA 92121 Ofc: 858-651-1646 E: [email protected]

Paul Schmid Development Committee Founder, PFS Management McDonald’s Owner/Operator 485 East Carmel Street San Marcos, CA 92078 Ofc: 760-471-8720 Cell: 760-644-0012 E: [email protected]

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of 2 RMHC-SD Board of Trustees Meeting – October 14, 2015 Minutes

RONALD MCDONALD HOUSE CHARITIES® OF SAN DIEGO, INC.

Annual Meeting of the Members Meeting Minutes Conference Room

Wednesday, October 14, 2015

MEMBERS PRESENT (12) Travis Alegria, Brian Cahill, Doug Dawson, Hudson Drake, Donna Evans, Daniel Grimmer, Jennifer Harter, Irvin Kaufman, Dan Klunk, Leslie Mannes, Chris Marsh, Greg Rogers MEMBERS NOT PRESENT (7) Dan Close, Nick Cole, Susan Hoehn, Janice McKinnon, Ofelia Melendrez-Kumpf, Abbaseh Samimi, Paul Schmid OTHERS PRESENT (for all or portions of the meeting) Danielle Campos, Fernando Campos, Chuck Day, Debbie Kamens, Gabi Rivers, Gail Sullivan ADMINISTRATION Donna Evans called the meeting to order at 11:40 a.m., after a quorum was reached.

Debbie Kamens was the recording secretary. Donna Evans introduced Danielle and Fernando Campos, prior to the meeting being

called to order. Danielle and Fernando are staying with their two children at the Ronald McDonald House. Their 11-year old son, Fernando, receives treatment at the Scripps Proton Therapy Center. He and his eight-year old sister, Bianca, began attending the School Away from School when they first came from Concord, California, to begin Fernando’s therapy, even before they checked in to the House. The parents reported that Bianca insisted on staying with her parents and brother when they traveled South, and that the House made it possible for them to remain together as a family. Danielle and Fernando emphasized how much they valued the House’s many child-focused services, and that it allowed them to continue caring for their children. Their son is already thinking about how he can give back to the Ronald McDonald House.

Chris Marsh received his official welcome as a new board member from Nominations and Governance Committee Chair Hudson Drake, who presented him with a San Diego Ronald McDonald House cap.

(Irvin Kaufman and Greg Rogers joined the meeting at this point, during the family presentation.)

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of 2 RMHC-SD Board of Trustees Meeting – October 14, 2015 Minutes

ACTION ITEMS Nominating and Governance Committee Hudson Drake presented Travis Alegria, Brian Cahill, Nick Cole, Donna Evans and

Susan Hoehn for second three-year terms as trustees. o Upon motion duly made, seconded and unanimously approved, the following

resolution was adopted: Resolved, that Travis Alegria, Brian Cahill, Nick Cole, Donna

Evans and Susan Hoehn are hereby elected to the Board of Trustees for second three-year terms commencing December 2015.

Hudson Drake presented Cleland Landolt for vetted approval to become a new member of the Board of Trustees.

o Following full discussion and upon motion duly made, seconded and unanimously approved, the following resolution was adopted: Resolved, that Cleland Landolt is hereby elected to the Board of

Trustees for a three-year term commencing December 2015. ADJOURNMENT Ms. Evans adjourned the meeting at 11:53 a.m.

Prepared by: Debbie Kamens, Board Liaison

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1

RONALD MCDONALD HOUSE CHARITIES®

OF SAN DIEGO

Board of Trustees Meeting Minutes

Conference Room

Wednesday, October 14, 2015

MEMBERS PRESENT (11)

Travis Alegria, Brian Cahill (Chair 2015-2016), Doug Dawson, Hudson Drake, Donna Evans

(Chair 2014-2015), Daniel Grimmer, Jennifer Harter, Irvin Kaufman, Dan Klunk, Chris Marsh,

Greg Rogers

MEMBERS NOT PRESENT (8)

Dan Close, Nick Cole, Susan Hoehn, Leslie Mannes, Janice McKinnon, Ofelia Melendrez-Kumpf,

Abbaseh Samimi, Paul Schmid

OTHERS PRESENT (for all or portions of the meeting)

Chuck Day, Debbie Kamens, Gabi Rivers, Gail Sullivan

ADMINISTRATION

Donna Evans called the meeting to order at 11:53 a.m. Debbie Kamens was the recording

secretary.

Chuck Day introduced Amy Flink, Ronald McDonald House Charities’ new Executive

Assistant.

CONSENT AGENDA

The following minutes and reports were included in the Board of Trustees packet and in the

Consent Agenda: the minutes of the Board of Trustees meeting on September 9, 2015, and

the September 2015 House Operations Committee Report.

o Following full discussion and upon motion duly made, seconded and unanimously

approved, the following resolution was adopted:

Resolved, the Board of Trustees of Ronald McDonald House Charities of

San Diego approves the consent agenda items as presented.

ACTION ITEMS

Election of 2015/2016 Slate of Officers

Hudson Drake presented a proposed slate of officers to the Board of Trustees.

o Upon motion duly made, seconded and unanimously approved, the following

resolution was adopted:

Resolved, the Board of Trustees of Ronald McDonald House Charities

of San Diego approves the proposed slate of officers:

Brian Cahill, Chair (two-year term)

Hudson Drake, Vice Chair

Jennifer Harter, Secretary

Daniel Grimmer, Treasurer

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Appointment of Committee Members

Brian Cahill presented the Board of Trustees Proposed Committee Rosters. The revised

Committee Rosters as approved are made a part of these minutes, attached hereto as Exhibit

A.



Resolved, the Board of Trustees of Ronald McDonald House Charities

of San Diego approves the Board of Trustees Proposed Committee

Rosters.

Finance Committee Report

Daniel Grimmer presented the September 2015 Finance Committee report.

o Following full discussion and upon motion duly made, seconded and unanimously

approved, the following resolution was adopted:

Resolved, the Board of Trustees of Ronald McDonald House Charities of

San Diego approves the September 2015 Finance Committee report.

Mr. Grimmer presented the board signature resolution for Chase Bank and Wells Fargo

Bank.



Resolved, that effective October 14, 2015, the authorized signers on

Chase Bank and Wells Fargo Bank accounts of Ronald McDonald

House Charities of San Diego, Inc. shall be Brian Cahill, Board Chair;

Hudson Drake, Vice Chair; Ralph D. Grimmer, Jr., Treasurer; Jennifer

Harter, Secretary; Charles E. Day, President & CEO; Gail M. Sullivan,

Chief Financial Officer; Gabriela Rivers, Director of Operations. Two

signatures are required for all checks or other withdrawals in excess of

$10,000. If the dollar amount of the check is over $25,000, the second

signature must be a board member.

Mr. Grimmer presented the board signature resolution for North Island Credit Union.



Resolved, that the Corporate Resolution for the authorized signers for

the North Island Credit Union accounts of Ronald McDonald House

Charities of San Diego, Inc., effective October 14, 2015, is approved.

Two signatures are required for all checks or other withdrawals in

excess of $10,000. If the dollar amount of the check is over $25,000, the

second signature must be a board member. The authorized signers shall

be Brian Cahill, Board Chair; Hudson Drake, Vice Chair; Ralph D.

Grimmer, Jr., Treasurer; Jennifer Harter, Secretary; Charles E. Day,

President & CEO; Gail M. Sullivan, Chief Financial Officer; and

Gabriela Rivers, Director of Operations.

Mr. Grimmer presented the board signature resolution for United Bank.




the United Bank account of Ronald McDonald House Charities of San

Diego, Inc., effective October 14, 2015, is approved. Two signatures are

required for all checks or other withdrawals in excess of $10,000. If the

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dollar amount of the check is over $25,000, the second signature must be

a board member. The authorized signers shall be Brian Cahill, Board

Chair; Hudson Drake, Vice Chair; Ralph D. Grimmer, Jr., Treasurer;

Jennifer Harter, Secretary; Charles E. Day, President & CEO; Gail M.

Sullivan, Chief Financial Officer; and Gabriela Rivers, Director of

Operations.

Mr. Grimmer presented the board signature resolution for US Trust.




the US Trust accounts of Ronald McDonald House Charities of San

Diego, Inc., effective October 14, 2015, is approved. Two signatures are

required for all checks or other withdrawals in excess of $10,000. If the

dollar amount of the check is over $25,000, the second signature must be

a board member. The authorized signers shall be Brian Cahill, Board

Chair; Hudson Drake, Vice Chair; Ralph D. Grimmer, Jr., Treasurer;

Jennifer Harter, Secretary; Charles E. Day, President & CEO; Gail M.

Sullivan, Chief Financial Officer; and Gabriela Rivers, Director of

Operations.

Resolved, that transfers of up to $500,000 daily may be made between

the accounts at US Trust and the corporate accounts currently in place

with JP Morgan Chase. Only one signature is needed to transfer

between these accounts. The account numbers will be provided to US

Trust under separate letter.

INFORMATION ITEMS

Nominating and Governance Committee

Following the election of 2015/2016 officers under “ACTION ITEMS” above, Hudson

Drake reviewed the annual Conflict of Interest form and the new Media Release (“Grant,

Assignment, Release and Waiver”) form, requesting board members read and sign both

documents.

Future Growth/Long-Term Aspirations Committee

Greg Rogers presented the Future Growth/Long-Term Aspirations Committee report and an

update on the status of negotiations with Rady Children’s Hospital – San Diego. We have

commissioned a site feasibility study by Nasland Engineering and will soon have results. In

addition, the Hospital is currently doing a feasibility study exploring the possibility of

building a parking structure on top of the annex. Results from both studies will be shared

with the board when they become available.

Development Committee Report

Brian Cahill reviewed the Development Committee report, which new Committee chair

Donna Evans will begin presenting at the December 2015 board meeting.

o Mr. Cahill reported that ROMP: A Moment in Buenos Aires on October 3, attracted 288

guests. Highlights for the evening included the beautiful Estancia La Jolla setting, our

entertainer David Cook, and the conclusion of our Hoehn Carlsbad Porsche Raffle – the

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most successful car raffle ever at our Ronald McDonald House. George Serlovsky of

Clermont, Florida was the raffle’s grand prize winner and chose to receive the $50,000

cash option. 6,602 tickets were sold raising $437,200 for a net to the House of

$351,143. Mr. Cahill thanked Susan and Bill Hoehn for this important opportunity to

raise funds for the House.

o Mr. Cahill thanked Wells Fargo; Donna and Steve Evans, Ofelia Melendrez-Kumpf,

and McDonald’s of Southern California; as well as Mary and Hudson Drake, for their

ROMP table sponsorships.

o Mr. Cahill thanked the board for supporting our ROMP Honorary Committee this year

with 14 Honorary Committee memberships.

o Mr. Cahill reported preliminary numbers for the night, which include results from the

car raffle, show nearly $1.1 million was raised with a net coming to the House of

$525,000. He reported that this net figure is below budget by approximately

$110,000. The following are factors that may have impacted this year’s ROMP.

The House was down more than 60 guests from budget and more than 100

guests from last year, when Steven Tyler performed at the La Jolla Country

Club.

The House was missing some of our top bidders for the evening from past

events, and both the live auction and Fund a Family totals were down.

While an excellent evening for all who attended, we may be seeing the ROMP

concept – gala with entertainment, live auction and paddle raise -- showing signs

of fatigue.

Mr. Cahill announced that the 24th

Annual Golf Invitational has raised $208,000 to date

from 40 companies, with 96 golfers currently signed up. Greg Rogers/ Pacific Building

Group and Balfour Beatty Construction are both major sponsors. Sponsors who have

supported the event for at least five consecutive years are being recognized with a special

engraved award. Mr. Cahill encouraged board members to purchase advertising space in the

golf tournament program via event sponsorships.

President’s Report

Chuck Day presented Ronald McDonald House Charities of San Diego’s newly launched

website, reviewing several of its newly designed pages, including the Board of Trustees

page, the Board Portal, and the new Planned Giving pages.

Mr. Day discussed the outcome of Red Shoe Day – Imperial Valley, held on October 7,

which raised a total of $42,726, including day of donations and McDonald’s contributions.

The event attracted 350 volunteers in five cities, three high schools, and 17 groups

including McDonalds, Kiwanis Club of El Centro, and San Diego Padres Volunteer Team.

Mr. Day reminded the board that the “Poker Ride 4 The House”, a third-party event hosted

by Realty One Group, takes place October 18. Most registrations will be received the day

of, and the final outcome will be reported at the December board meeting.

Our next Red Shoe Crew event takes place the week of November 2, at All Hallows

Academy in La Jolla. House staff will speak to the Academy’s 4th

grade classes, who will

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then raise funds for the House, donate it in person and tour the House, and then those

students will speak to the other grade levels about their experience. The House is also

partnered with Health Sciences Middle School for Red Shoe Crew. Those students will be

volunteering at the house twice per month creating blankets, helping with welcome bags,

serving meals and helping with the 24th

Annual Golf Tournament. Every quarter, the

Academy will bring new students to the House.

Adelaide’s La Jolla will once again host their Annual Holiday Open House on November 8,

10:00 a.m. – 4:00 p.m., benefitting our Ronald McDonald House.

Mr. Day announced that Red Shoes and Brews takes place November 13, 6:00 p.m. –

9:00 p.m. at Brick in Liberty Station. Presented by the Red Shoe Society, this event is

chaired by Jordan Evans. The evening will include beer tasting and a silent auction, dinner

catered by Slater’s 50/50, and live music.

Mr. Day informed the board that a 5K Run for Ronald takes place December 5 at 9:00 a.m.

at Roadrunner Sports in San Diego. The third party event is hosted by University of San

Diego’s Alpha Delta Pi.

Recognitions Chuck Day presented gifts of appreciation to retiring board members Doug Dawson and

Dan Klunk, in thanks for their six years of service to our Board of Trustees.

Brian Cahill presented gifts of appreciation to Donna Evans, in thanks for her two years of

service as Board of Trustees Chair.

NEXT MEETING

Brian Cahill reviewed the proposed 2016 Board of Trustees meeting schedule distributed to

board members. With the exception of the January meeting, scheduled for the first

Wednesday of the month, all meetings will be on the second Wednesday. The board will

not meet in August or November.

Board of Trustees: Wednesday, December 9, 2015, at 11:30 a.m. – 1:30 p.m., in the

Ronald McDonald House Conference Room.

ADJOURNMENT

Mr. Cahill adjourned the meeting at 1:06 p.m.

Prepared by:

Debbie Kamens, Board Liaison

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Ronald McDonald House Charities of San Diego, Inc. Page 1 of 2

2929 Children’s Way, San Diego, CA 92123

858.467.4750 Phone 858.467.4757 Fax

www.rmhcsd.org [email protected]

O:\Board\Meetings\Full Board Meetings\2015\10-14-15 Meeting\RMHC-SD Board Org Chart APPROVED 10.14.15.docx

Ronald McDonald House Charities of San Diego, Inc.

Board of Trustees Organizational Chart (Committee Structure)

October 14, 2015

Brian Cahill, Chair*

Hudson Drake, Vice Chair


Daniel Grimmer, Treasurer

Audit Committee

Dan Close, Chair

Staff

Chuck Day

Gail Sullivan

Compensation Committee

Dan Close, Chair Daniel Grimmer

Jennifer Harter

Staff

Chuck Day

Development Committee

Donna Evans, Chair

Leslie Mannes

Janice McKinnon

Ofelia Melendrez-Kumpf

Paul Schmid

Non-Trustee Member

Doug Dawson

Jamie Straza

Staff

Lauren David

Chuck Day

Amy Flink

Debbie Kamens

Marcy Rodin

Executive Committee

Brian Cahill, Chair, Golf Invitational Chair

Hudson Drake, Vice Chair, Nominating and

Governance Chair


Daniel Grimmer, Treasurer, Finance Chair

Travis Alegria, House Operations Chair

J. Nicholas Cole, House Raffle Chair

Donna Evans, Development Chair, Marketing

Communications Chair, Strategic Planning Chair

Greg Rogers, Future Growth/Long-Term

Aspirations Chair

Staff

Chuck Day

Debbie Kamens

Gabi Rivers

Gail Sullivan

Finance Committee

Daniel Grimmer, Chair Travis Alegria

J. Nicholas Cole

Jennifer Harter

Abbaseh Samimi

Staff

Chuck Day

Gail Sullivan

Exhibit A 16


of 2

O:\Board\Meetings\Full Board Meetings\2015\10-14-15 Meeting\RMHC-SD Board Org Chart APPROVED 10.14.15.docx

Future Growth/Long-Term Aspirations

Committee

Greg Rogers, Chair

Irvin Kaufman, MD

Staff

Chuck Day

Debbie Kamens

House Operations Committee

Travis Alegria, Chair Daniel Grimmer

Jennifer Harter

Susan Hoehn

Non-Trustee Members

Mark Beall

Jenn Brennecke

Sharon Carlson

Doug Dawson

Greg Duton

Keith Kilby

Sandy Mueller, LCSW

Jeff Payne

Bill Roberts, MD

Mark Rowe

Jacqui Small

David Trieglaff

Staff

Chuck Day

Michael Murphy

Van Nguyen

Gabi Rivers

House Raffle Committee

J. Nicholas Cole, Chair

Greg Rogers

Non-Trustee Member

Doug Dawson

Staff

Chuck Day

Thien Giang

Gail Sullivan

Marketing Communications

Committee

Donna Evans, Chair

Susan Hoehn

Leslie Mannes

Non-Trustee Member

Josh Sherman

Staff

Lauren David

Chuck Day

Thien Giang

Marcy Rodin

Nominating and Governance Committee

Hudson B. Drake, Chair Donna Evans

Staff

Chuck Day

Debbie Kamens

Gabi Rivers

Strategic Planning Committee

Donna Evans, Chair Cleland Landolt, MD

Non-Trustee Member

Steve Evans

Staff

Chuck Day

Debbie Kamens

At Large Trustee:

Chris Marsh

*Chair of the Board of Trustees, except where

stated, shall serve as a member on all committees of

the Board.

Exhibit A 17

Page | 1

RONALD MCDONALD HOUSE CHARITIES®

OF SAN DIEGO, INC. House Operations Committee

Monthly Report to Board – November 2015

I. Assessment of Funding, Staffing and Resources

Determine criteria to support prioritization and evaluation of existing and proposed services and

programs; these criteria will include assessments of funding, staffing and resources needed.

Annual

Oct ‘15 YTD ‘15 Budgeted Oct ‘14 YTD ‘14

A. House Income

1. Guest Revenue $7,383 $111,713 $160,000 $11,035 $125,687

2. Insurance Revenue $6,400 $73,958 $40,000 $0 $44,550

3. Third Party Donations for

Guest Stays

$962 $25,535 $12,900 $3,655 $15,550

4. Total (2015 goal: $230k) $14,745 $211,206 $212,900 $14,690 $185,787

B. Additional Income

1. In-Kind (2015 goal: $800k) $120,085 $750,222 $860,000 $42,495 $699,011

2. Meal Services $1,000 $32,205 $24,000 $2,900 $21,645

3. Meeting Room Rental and

Catering (2015 goal: $50k)

$5,360 $50,847 $59,125 $4,952 $49,480

4. Misc. Income (soda, store,

donation box, volunteer misc)

5. Hacer Scholarships

6. Laundry

7. Total

$3,100

$0

$8,333

$137,878

$22,626

$30,000

$61,992

$947,892

$21,400

$20,000

$984,525

$3,408

$0

$0

$53,755

$17,515

$20,000

$0

$807,651

C. Expense Summary

Oct ‘15

YTD ‘15

10 Month

Budget

Total

Annual Budget

Total

1. House Operations1 $433,255 $3,660,071 $3,827,833 $4,596,541

2. Meal Services $1,905 $15,762 $30,000 $36,000

1 Costs are $3,660,071 which is $167,762 lower than budget. Salaries & related costs, food, house

furnishings, internet services, maintenance and repair, depreciation, feasibility study and merchant fees

are all below budget.

II. Programs, Services and Physical Spaces

Conduct a periodic review and evaluation of programs, services and physical spaces to determine

viability and need for the families we serve.

Oct ‘15 YTD ‘15 Oct ‘14 YTD ‘14

A. Occupancy (2015 goal: 96% average) .968 .955 .947 .955

B. Families Served

1. Admissions (during calendar month) 99 1,061 109 1,133

2. # of Families Served (during calendar month) 138 1,102 149 1,170

3. New Families to RMH 99 650 71 685

4. Average Length of Stay of Families Served 10.0 15.2 9.3 15.2

5. Referrals Received 164 1,668 203 1,902

C. Day Use

1. First Time Guests (2015 goal: 8,000 guests) 888 9,784 1,058 9,418

2. Total Number of Guests 4,163 42,682 4,561 40,496

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RMHC-SD House Operations Board Report – November 2015

Page | 2

D. Food Service Program

Oct ‘15

YTD ’15

Oct ‘14

YTD ‘14

1. Dinners Served 4,508 46,976 5,989 53,878

2. Lunches Served 4,026 26,248 5,608 52,690

3. Breakfasts Served

4. Total Meals Served

5. In-House Meals (2015 goal: 120k meals)

6. Children’s Meals Served

7. Meal providers (Appendix)

1,987

10,521

10,521

1,694

25,431

118,655

92,114

22,395

3,313

14,910

--

3,497

31,026

137,819

--

27,345

E. School Away From School

1. School Census (2015 goal: 500 students)

2. 3-5 Year Old Learn and Play Program

10

22

444

394

14

15

109

118

F. Survey Results

1. Total Surveys Received 17 369 287 1,360

2. Survey Comments (Appendix)

G. Volunteer Hours (2015 goal: 60,000 hours) 5,735 56,566 4,157 52,960

1. Meal Prep 2,781 24,929 2,134 22,301

All Meals, Kitchen Support, Receiving

2. House Programs 836 4,352 327 3,682

Baking, Crafts, Music, Spa, School

3. Committees 114 7,058 59 7,569

Board, HOC, Finance, Development,

Raffle, Special Events

4. House Services (April 2015 goal: 1,800 hrs.) 1,500 14,955 1,296 16,649

Cleaning, Laundry, Organizing,

Hospitality, Reception, Clerical

5. Helping Hands (June 2015 goal: 1,000 hrs.) 425 4,569 298 2,262

Large Groups

6. Transportation 79 703 43 705

Errands

7. Volunteer Information Sessions

a) Participation Numbers

i. Sessions 11 76 10 67

ii. Participants 19 139 17 160

III. Imperial Valley Area Update A. Red Shoe Day on October 7

th was a great success with 350 volunteers and more than $43,000 raised.

B. Two Ronald Shows were held at Jefferson Elementary in Calexico and Martin Luther King Jr.

Elementary in El Centro to talk about the Importance of Good Character.

IV. Miscellaneous House Operations Information

A. Facilities

1. Abbie Lovell from Zeiss hosted an event and donated 15 bikes to our families here at the RMH.

2. Debbie Maxwell donated a pallet of 31 bags that are used for our welcome bags.

3. We hosted Rady Children’s Hospital Turner Syndrome Conference with approximately 75

attendees.

4. Mills Communication replaced our phone system.

5. Realty One hosted our second Poker Run for the year and raised over $2,500.

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V. Appendix

Oct ‘15 YTD ‘15 Oct ‘14 YTD ‘14

A. Demographics

1. By area served

a) San Diego County .263 .301 .239 .310

b) Imperial County .242 .171 .156 .222

c) Riverside County .121 .174 .294 .206

d) Orange County .020 .029 .046 .028

e) Los Angeles County .000 .021 .000 .030

f) Hawaii .091 .080 .055 .050

g) Saipan .020 .019 .028 .016

h) Out of Country .071 .092 .083 .049

2. By hospital unit served

a) Hem/Onc .13 .14 .19 .19

b) NICU .34 .27 .24 .27

c) 3 East (Ortho/Rehab) .08 .09 .15 .14

d) 4 East .04 .05 .07 .06

e) Med/Surg .01 .04 .02 .03

f) PICU .11 .14 .08 .10

g) Cardiac .18 .19 .17 .17

h) Other/Clinic .11 .08 .08 .05

3. By hospital served

a) Rady Children’s .77 .82 .84 .88

b) Sharp Mary Birch .11 .07 .09 .09

c) Scripps La Jolla .00 .00 .00 .00

d) UCSD .03 .05 .04 .01

e) Kaiser .00 .01 .01 .00

f) Balboa Naval .00 .00 .00 .00

g) Other/Clinic .09 .05 .02 .00

4. By ethnicity

a) Caucasian .17 .21 .34 .29

b) Hispanic .41 .38 .39 .46

c) Native American .00 .02 .03 .02

d) Asian/Pacific Islander .09 .12 .11 .13

e) African American .08 .06 .04 .04

f) Other .25 .21 .10 .06

B. Survey Comments

1. Meal Provider Survey

a) John Amick & the RMH kitchen staff are absolute pros! They help with suggesting the

appropriate quantities of food items and did a great job instructing my group on what to do and

keeping each individual busy throughout the event. Eric was a pleasure to work with and

everyone from my group really enjoyed partnering with the RMH.

b) You are all amazing! Thank you for all that you do daily to support the families at Rady

Children's Hospital.

c) Our group had a wonderful experience volunteering at the RMH. Working with John was such

a pleasure. We look forward to coming back again soon. Thank you for the opportunity!

d) We had a fabulous time supported by both John and the rest of the staff at the kitchen. Will be

doing this again within the next year.

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2. House Guest Exit Survey Comments

a) I JUST WANT TO SAY THANKS BERRY MUCH TO ALL YOU.

C. Meal Providers/Special Groups

1. AMN Healthcare

2. Asian Joining Hands

3. Associated Builders & Contractors

4. ATI

5. Bert Family & Friends

6. Canyon View Church of Christ

7. Central Congregational Church

8. Charger Ladies

9. Crest Beverage, LLC

10. FBC Ministry

11. Foresters Financial

12. GAP Outlet/ Viejas Center

13. Girl Scout Troop 3676

14. Girl Scouts/Product Sales

15. GRANITE/PAVE

16. Hilton SD Mission Valley

17. Hope Presbyterian Church of San Diego

18. Inter Compassion Charities

19. Lighthouse Care Foundation

20. Marisol’s Journey Full of Hope & Love

21. RCH/HR Department

22. Regina’s Birthday

23. RICOH USA, Inc.

24. Riverview Church Youth Group

25. San Diego Peace Corps Association

26. SDG&E

27. SDSU/Nutrition Group

28. Shadow Mountain

29. Team Travis

30. The Church at RB

31. The Valdovinos Family

32. Tzu Chi Foundation

33. U-blox San Diego

34. US Navy

35. Welk Resort/IT Department

36. Wells Fargo Restaurant Finance

37. Worth Pointe

21

RMHC-SD Review through October 2015

Page | 1

Ronald McDonald House Charities® of San Diego

Strategic Planning – House Operations Charts of Work

2015 Update through October

Facilities/House Operations – Expand, enhance, and evaluate services provided by

the House and Support on-going house maintenance, while ensuring

safety for all families, staff and volunteers.

House Operations & Activities (HOC):

1. Expand YMCA membership.

Completed February 2015 - The YMCA has provided 10 memberships for families

staying at the RMH. Our guest services team determined that parents were not

interested in taking advantage of the programs offered offsite. Memberships will not be

renewed in 2016, however we plan to explore special camps offered during

spring/winter and summer breaks for patients and sibling.

2. Extend the House hours until 10:00 p.m.

Completed August 2015 - Hours have been extended until 9 p.m. every night. It was

challenging to find volunteers willing to stay until 10pm so we have shifted schedules

and have a staff person covering from 9 p.m. - 10 p.m.

3. Formalize screen process with social worker.

Completed May 2015 - The screening process with the social worker.

Research on background screenings for house guests and day guests continues.

4. Increase guest stay donation to $20

Completed January 2015 - The increase in guest stay donation was well received by

guests.

5. Develop and implement kids lunch menu

On Hold, 2016 - Although we did not implement a kids’ lunch menu, we have offered

fruits and vegetables at every meal. This also includes the snacks being prepared by the

kitchen for the kids enrolled in school. We plan to shift this to 2016.

6. Complete financial analysis and recommendation for implementation of Ronald Channel

Completed May 2015 - Options discussed in late 2014 for the Ronald Channel included:

Setting up a computer that we would connect to the modulator in the closet.

Staff or volunteers would produce slides in a PowerPoint presentation and set

it to run continuously. Staff and volunteers would produce slides in PowerPoint

that we would export into a video file and upload into a digital media player.

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Outsourcing maintenance and slide development for a more professional

platform.

After speaking with Haivision, the company that helped the Zoo with the ZooTV, we are

not pursuing the idea. Options 1 and 2 would require staff time and resources to

maintain the PowerPoint presentation. Services for a more professional platform would

include $5,000 start up with monthly maintenance fees between $500-$600.

7. Implement monthly guest chef program to enhance presentation and diversify menu options

Completed July 2015 - Guest chef program was implemented in March 2015. However,

last minute cancelations by chefs have made it challenging for our food services team.

As part of the staff development plan for 2016 we will be contracting with someone on

a quarterly basis.

8. Develop and implement guest stay follow-up phone interview (March 2015)

Completed March 2015 - Phone interviews have given staff an opportunity to follow up

with parents and assist them with any additional services they may be in need of. The

follow up has been well received by parents and the feedback has been a huge benefit

to the operations team in evaluating procedures, needs and services.

9. By year end, provide direct assistance to 25 “out of area” families traveling to Rady Children’s

for outpatient clinic appointments

Completed 2015 - Outreach efforts to Rady Children’s and Sharp Mary Birch have

helped tremendously. This has definitely filled a gap in services. Over 60 families have

been served and the number continues to grow.

Facilities/Maintenance Support:

1. Assess and replace flooring and furnishings in common areas and administrative wing

On Hold, 2017 - Staff determined it was not necessary to replace the floor or furnishings

at this time, will reassess in 2017.

2. Replace office equipment

Ongoing 2015 - Replace as needed and ongoing

3. Complete “room rejuvenation” for 25 guest rooms

Completed March 2015

4. Assess and replace telephone system

Completed October 2015

5. Assess and replace artificial turf

Received grant to rejuvenate south courtyard in 2016

6. Develop and implement a facility-wide recycling program, in accordance with California’s

Commercial Recycling Bill AB 341.

Completed July 2015 - Develop – April 2015; Implement – July 2015

7. Cultivate current service vendors to decrease service contract fees by 15%. Service contract

budget was $40,000.

Ongoing - Renegotiated contract with Jackson & Blanc generating $5,000 in savings.

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8. Complete mutual assistance agreements with Rady Children’s Hospital and Sharp Healthcare in

case of emergency/disaster events.

Ongoing, realistic completion now late 2016 – Discussions with partnering hospitals is

ongoing. With complete restructuring of the RMH emergency plan, discussions and

agreement are underway.

Emergency Preparedness Plan:

Emergency preparedness is an ongoing process which includes drills, trainings, and information sharing related to specific emergencies.

1. Develop emergency procedures process to be used by Human Resources during new employee

orientation.

Completed October 2015

2. Train staff in the following real world emergency scenarios: Fire, Active Shooter and Earthquake.

Annual and Ongoing - With the hiring of a new facilities manager, the Fire and Active

Shooter Drill has been postponed to 2016.

House participated in the California Great Shake Out Earthquake Drill on

October 15, 2015.

3. Develop and implement an inventory rotation system for emergency supplies.

Completed June 2015 - The entire emergency supply has been rotated and realigned to

help better facilitate its dissemination in the event of a mass evacuation.

4. Seek formal approval of the House Emergency Preparedness Plan by the Board of Trustee.

Hoping to seek approval by board in late 2016 - Our emergency procedures are

currently under complete re-write, which include new policies, practices and

procedures.

Partnerships / Community Initiative – Enhance existing partnerships and develop

new relationships with corporations, individuals and community

organizations to build awareness and increased support for the House.

1. Family Care Coordinator will attend quarterly social worker meetings in collaboration with Rady

Children’s and Sharp Mary Birch hospitals, and attend Family Resource Collaborative and HART

meetings on a monthly basis.

Ongoing

2. Host social worker appreciation luncheon.

Completed March 2015.

3. Develop resource directory to include resources from Imperial Valley, Hawaii and San Diego.

Partially completed in May 2015 - Imperial Valley and San Diego resource directories

completed in May, Hawaii directory being developed.

4. Review and evaluate current partners and develop a focused list of new prospects for 2015.

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Completed March 2015 - Increased level of support with Ecolab, SCA, Jackson & Blanc,

Pacific Green and Mills Communication.

5. Move a minimum of 4 partners to a “key” partnership level of involvement as determined by

staff.

Completed September 2015

RICOH, our copier vendor, is now volunteering on a monthly basis serving food.

SDG&E has started serving dinner and offering STEM (Science, Technology, and

Engineering & Math) activities to families on a monthly basis.

1. Expecting $6,000 through employee giving program.

Christian Brothers providing carpet cleaning.

Mr. Rooter plumbing services.

Volunteer Initiative – Ensure optimal utilization, training, development,

retention, and appreciation of volunteers.

1. Volunteer group employee matching contributions totaled $3,000.

Completed in 2015.

2. Implement $15.00 suggested donation for volunteer background check.

Completed in April 2015.

3. Continue evaluations and surveys, and appreciation activities throughout the year.

Ongoing

Generating Revenue – Exceed annual budget through increased philanthropy,

continued evolution of the Dream House Raffle and development of

additional funding sources, which will enable the House to provide

existing and future services, reduce debt, meet maintenance obligations,

and promote future expansion.

1. Total amount generated through House Operations through October 31st:

Guest Revenue – $111,713

Insurance Revenue – $73,958

Third Party Donations for Guest Stay – $25,535

In-Kind – $750,222

Meal Services – $32,205

Others – $165,465

Future Growth/Long Term Aspiration Initiative – Meet the current and future needs of

the community through our House services and facilities.

1. Present a plan that includes a statement of need, timeline, plan options (using the original

House, adding to our existing House, etc.) and feasibility of expanding the current number of

rooms available to families by Ronald McDonald House Charities of San Diego.

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Ongoing, Feasibility study is underway for annex site; further study for expanding the number of rooms will be completed by October 2016.

26

IV. Nominating and Governance Committee

Ronald McDonald House Charities of San Diego, Inc. Page 1 of 2 2929 Children’s Way, San Diego, CA 92123 858.467.4750 Phone 858.467.4757 Fax

www.rmhcsd.org [email protected]

O:\Board\Manual\Manual, Orientation - 2012 and forward\23 (4 j ) RMHC-SD Board Org Chart 12.09.15_Proposed.docx

Ronald McDonald House Charities of San Diego, Inc. Proposed - Board of Trustees Organizational Chart (Committee Structure)

October 14, 2015 Brian Cahill, Chair* Hudson Drake, Vice Chair Jennifer Harter, Secretary Daniel Grimmer, Treasurer

Audit Committee Dan Close, Chair

Staff Chuck Day Gail Sullivan Compensation Committee Dan Close, Chair Daniel Grimmer Jennifer Harter

Staff Chuck Day Development Committee Donna Evans, Chair Leslie Mannes Janice McKinnon Ofelia Melendrez-Kumpf Greg Rogers Paul Schmid

Non-Trustee Member Doug Dawson Jamie Straza

Staff Lauren David Chuck Day Amy Flink Debbie Kamens Marcy Rodin Allegra Sonza Beth van Eetveldt

Executive Committee Brian Cahill, Chair, Golf Invitational Chair Hudson Drake, Vice Chair, Nominating and Governance Chair Jennifer Harter, Secretary Daniel Grimmer, Treasurer, Finance Chair Travis Alegria, House Operations Chair J. Nicholas Cole, House Raffle Chair Donna Evans, Development Chair, Marketing Communications Chair, Strategic Planning Chair Greg Rogers, Future Growth/Long-Term Aspirations Chair

Staff Chuck Day Debbie Kamens Gabi Rivers Gail Sullivan Finance Committee Daniel Grimmer, Chair Travis Alegria J. Nicholas Cole Jennifer Harter Abbaseh Samimi

Staff Chuck Day Gail Sullivan

28


of 2

O:\Board\Manual\Manual, Orientation - 2012 and forward\23 (4 j ) RMHC-SD Board Org Chart 12.09.15_Proposed.docx

Future Growth/Long-Term Aspirations Committee Greg Rogers, Chair Irvin Kaufman, MD

Staff Chuck Day Debbie Kamens House Operations Committee Travis Alegria, Chair Daniel Grimmer Jennifer Harter Susan Hoehn

Non-Trustee Members Mark Beall Jenn Brennecke Sharon Carlson Doug Dawson Greg Duton Keith Kilby Sandy Mueller, LCSW Jeff Payne Bill Roberts, MD Mark Rowe Jacqui Small David Trieglaff

Staff Chuck Day Michael Murphy Van Nguyen Gabi Rivers House Raffle Committee J. Nicholas Cole, Chair Greg Rogers

Non-Trustee Member Doug Dawson

Staff Chuck Day Thien Giang Gail Sullivan

Marketing Communications Committee Donna Evans, Chair Susan Hoehn Leslie Mannes Chris Marsh Non-Trustee Member Josh Sherman

Staff Lauren David Chuck Day Thien Giang Marcy Rodin Nominating and Governance Committee Hudson B. Drake, Chair Donna Evans Staff Chuck Day Debbie Kamens Gabi Rivers Strategic Planning Committee Donna Evans, Chair Cleland Landolt, MD Non-Trustee Member Steve Evans Staff Chuck Day Debbie Kamens *Chair of the Board of Trustees, except where stated, shall serve as a member on all committees of the Board.

29

B. Resolution for Committee Appointments

Upon completion of the review and discussion of the proposed committee appointments and formation of the House Expansion Committee, please pursue the following motion: RESOLVED, that the Board of Trustees approves the formation of the appointments for

the Board Committees as stated.

Ronald McDonald House Charities of San Diego, Inc. December 9, 2015

30

V. Finance Committee

O:\Board\Committees\Finance\Minutes from 2015\10-October\Finance Comm Minutes 10-21-2015.docx

Ronald McDonald House Charities® of San Diego, Inc.Finance Committee Meeting Minutes

Wednesday, October 21, 2015, 2:00 p.m.

MEMBERS PRESENT: Daniel Grimmer, Brian Cahill, Nick Cole and Jennifer Harter

MEMBERS ABSENT: Travis Alegria and Abbaseh Samimi

STAFF PRESENT: Chuck Day and Gail Sullivan

ALSO PRESENT FROM 3PM-4PM: Steve Ross, Market Investment Director, US Trustand Zachary Weismann, Portfolio Manager Associate, US Trust

The Finance Committee met at the offices of UBS Financial Services, 12220 El CaminoReal, San Diego, CA 92130.

The following items were discussed at the meeting:

The September 2015 Financial Statements were reviewed and accepted andrecommended to be approved by the full Board of Trustees.

The JP Morgan Chase Quarterly Compliance Certificate for the quarter endedSeptember 30, 2015 was reviewed. See attached. All bank covenant requirementswere met.

The committee received a report on and discussed the following items:1. House expansion2. Helio solar acquisition3. Romp budget to actual4. Red Shoe Day-Imperial Valley budget to actual5. Board Give/Get from 1-1-2015 to 10-15-20156. Year-end Development revenue projections7. Funding of $500,000 into Maintenance reserve account by year end8. Pay down of $500,000 on Chase principal in November

The next meeting is scheduled for November 19, 2015.

Adjourn.

32

O:\Board\Committees\Finance\Minutes from 2015\11-November\Finance Comm Minutes 11-19-2015.docx


Thursday, November 19, 2015, 2:00 p.m.

MEMBERS PRESENT: Daniel Grimmer, Travis Alegria, Nick Cole and Jennifer Harter

MEMBERS ABSENT: Brian Cahill Alegria and Abbaseh Samimi




The October 2015 Financial Statements were reviewed and accepted andrecommended to be approved by the full Board of Trustees.

The committee reviewed the 2016 Administrative expense budget, 2016 Programexpense budget for the 47 room house, 2016 Program expense budget for the 12 roomhouse and the combined Programs expense budget. These sections of the budget werediscussed, accepted and recommended to be approved by the full Board of Trustees.

The committee received a report on and discussed the following items:1. Dream House Raffle2. House expansion3. Helio solar acquisition4. Golf budget to actual5. Year-end Development revenue projections

The next meeting is scheduled for December 3, 2015.

Adjourn.

33

Ronald McDonald House Charities® of San Diego, Inc.

Board Financial Report

Oct-15

34

Monthly SummaryFinancial Results • Revenues are $1,751,000 which is $130,000 higher than budget. If the monthly variance from investments of $202,000 was removed, revenue would have been $72,000

below budget. Development: Revenues are $1,371,000, which is $128,000 below budget. Corporate Donations-$8,000, Individual Donations-$28,000 and McDonald's Co-op-$13,000 are below budget. Foundations/Grants-$52,000 is higher than budget. Programs: Revenues are $31,000 which is $6,000 higher than budget. In-Kind donations are $120,000 which is $50,000 higher than budget. Investment Portfolio: Monthly gain from investments is $229,000 which is $202,000 higher than budget. Investment gains & losses are considered cyclical and should even out over time.

• Special Events: Golf - Gross revenues were $228,000 vs. budget of $197,000, which is $31,000 higher than budget. Costs were $93,000 vs. budget of $92,000. The golf eventnetted $135,000 vs. budget of $105,000. This is $30,000 higher than budget.

• Special Events: Red Shoe Day-Imperial Valley - The event grossed $45,000 vs. budget of $60,000. The event netted $33,000 vs. budget of $40,000. Additional revenues willcontinued to be generated through year end for this year round fundraiser.

• Special Events: Romp - Gross revenues (without the Car Raffle) were $553,000 vs. budget of $740,000, which is $187,000 below budget. Costs were $389,000 vs. budgetof $426,000, which is $37,000 below budget. The Romp event (without the Car Raffle) netted $164,000 vs. budget of $314,000. This is $150,000 below budget.The Car Raffle grossed $477,000 vs. budget of $405,000, including $40,000 sponsorship. Costs were $127,000 vs. budget of $84,000. The Car Raffle netted $350,000 vs. budgetof $321,000. This is $29,000 higher than budget. The Romp event net (including the Car Raffle) was $514,000 vs. budget of $635,000. This is $121,000 below budget.

• Total October expenses are $1,118,000, which is $6,000 higher than budget.House Operations: Costs are $426,000 which is $36,000 higher than budget. Salaries & related costs-$13,000 and Depreciation-$6,000 are below budget. In-Kind Donations costs-$50,000 and Computer Maintenance & Materials-$7,000 are higher than budget.Fundraising: Costs are $653,000 which is $41k below budget. Printing/Graphic Design-$11k & Misc. Events-$9k are below budget. Contract Labor-$6k is higher than budget.Administration: Costs are $33,000 which is $7,000 higher than budget. Salaries are $5,000 higher than budget.

Cash Cash in bank at the end of October is $5,328,000 (including temporarily restricted funds).

Restricted Funds Temporarily restricted cash at the end of October is $1,117,000 for major improvements, Hacer, restricted grant funds, House Raffle, etc.Permanently restricted assets are: Joseph Clayes III Endowment - $3,500,000, and Kroc Endowment - $497,250. Total is $3,997,250.

JP Morgan Chase • The mortgage was refinanced on November 7, 2013 with JP Morgan Chase. It is a single loan with a principal amount of $14.2 million. It has a 20-year term withthe loan amortized over 25 years. The monthly payment is $83,153. It has a 4.95% interest rate, which adjusts after 10 years. The loan matures on 10-31-2033 and theballoon due at that time was originally $4,399,000. An additional $500,000 was paid towards principal in November 2014. The balloon payment that is now dueis $3,111,000, which is $1,288,000 lower.

Year-to-Date Summary-Ten MonthsFinancial Results • Revenues are $8,875,000 which is $1,183,000 higher than budget.

Development: Revenues are $2,645,000 which is $213,000 below budget. Corporate Donations-$27,000, Community Groups-$6,000 and Foundations/Grants-$130,000 are higher than budget. Individual Donations $197k, McDonald's Co-op-$35k, Bequests/Planned Giving-$38k and In-Kind donations income-$20k are below budget. Programs: Revenues are $378,000 which is $105,000 higher than budget. Gift in Kind Revenue is $750,000 and is $50,000 higher than budget. Investment Portfolio: Revenues are $21,000 which is $195,000 below budget. Investment gains/losses are considered cyclical and should even out over time.

• Special Events: Red Shoe Day-San Diego - The event grossed $237,000 vs. budget of $202,000. The event netted $131,000 vs. budget of $145,000.Additional revenue of $32,300 was generated by the McDonald's Owner Operators and has been applied to the Co-op pledge.

• House Raffle: Revenues are $6,433,000 which is $1,317,000 higher than budget. Prizes & Homeowner Commitment is $1,352,000 which is $118,000 below budget.

• Total YTD expenses are $6,763,000, which is $182,000 below budget for the ten months.House Operations: Costs are $3,656,000 which is $172,000 below budget. Salaries & related costs-$34,000, Food-$14,000, Coke-$6,000, Kitchen Paper Goods-$6,000, HouseFurnishings-$6,000, Auto Expense-$6,000, Utilities-$42k, Maintenance & Repairs-$9k, Deprec. & Amort.-$74k, Feasibility Study-$17k & Merchant Fees-$7k are belowbudget. Gift-in-Kind Expense-$50,000, Education Enrichment-$10,000 & Computer Maintenance-$9,000 are higher than budget.Fundraising: Costs are $1,418,000 which is $14,000 below budget. Salaries & related costs-$16,000, Printing-$18,000, Misc. Event Costs-$16,000 & Public Relations-$10,000are below budget. Contract Labor-$8,000, In-Kind Donations-$9,000, Misc. Event Costs-$9,000 and Bad Debts-$8,000 are higher than budget.Administration: Costs are $300,000 which is $13,000 higher than budget. Salaries & related costs-$12,000 and Accounting-$5,000 (timing related) are higher than budget.House Raffle: Costs are $1,389,000 which is $9,000 below budget. Accounting & Legal-$15k, Computer maintenance-$10k & Advertising-$49k are below budget. FundraisingConsultant-$5,000, Postage & Shipping-$7,000, Telephone-$31,000 and Merchant & Bank Fees-$20,000 are higher than budget. Net is $3,692,000 vs. budget of $2,234,000.This is $1,458,000 higher than budget.

• Increase (Decrease) in Net Assets is $2,112,000 which is $1,365,000 higher than budget.

For your InformationShould you have any questions or require additional details, please contact our Chief Financial Officer, Gail Sullivan at [email protected] or 858-598-2431.

October 2015 Executive Summary of Financial Results


2

35

STATEMENT OF ACTIVITIES AnnualRevenues: Actual Budget Variance Actual Budget Variance Budget

Corporate Donations 2,600$ 10,950$ (8,350) 225,113$ 198,000$ 27,113 219,920$Community Groups 5,671 7,505 (1,834) 131,250 125,550 5,700 140,600Individual Donations 28,766 56,950 (28,184) 281,862 478,675 (196,813) 600,165McDonald's Co-op and Canister Donations 16,821 29,400 (12,579) 186,113 220,875 (34,762) 264,300Bequests/Planned Giving 3,750 (3,750) 37,500 (37,500) 55,000In-Kind-Donations (Fundraising) 3,450 (3,450) 14,652 34,500 (19,848) 41,400Foundation Donations/Grants 70,910 18,750 52,160 317,239 187,500 129,739 240,000Special Events Revenues 1,306,350 1,403,325 (96,975) 1,548,699 1,609,525 (60,826) 1,634,525Car Raffle Prize (60,368) (35,000) (25,368) (60,368) (35,000) (25,368) (35,000)

Development Subtotal 1,370,750 1,499,080 (128,330) 2,644,560 2,857,125 (212,565) 3,160,910Program Donations (Guest Services, Wish List, Events, etc.)+Hacer 31,280 25,443 5,837 378,219 273,627 104,592 324,525House Raffle-Revenues 0 6,433,350 5,116,000 1,317,350 5,116,000House Raffle-Prizes & Homeowner Commitment 0 (1,352,228) (1,470,000) 117,772 (1,470,000)In-Kind-Donations (Programs) 120,085 70,000 50,085 750,222 700,000 50,222 860,000Interest, Dividends/Chg in Value/Gains & Losses 229,238 26,985 202,253 21,049 215,880 (194,831) 269,849

Total Revenues 1,751,353$ 1,621,508$ 129,845 8,875,172$ 7,692,632$ 1,182,540 8,261,284$Expenses:

House Operations 426,055$ 389,941$ (36,114) 3,655,567$ 3,827,833$ 172,266 4,596,541$Fundraising & Events 652,734 693,793 41,059 1,417,647 1,431,988 14,341 1,589,721Administration 32,938 26,043 (6,895) 300,401 287,253 (13,148) 366,617House Raffle Expenses 6,295 2,481 (3,814) 1,389,284 1,397,950 8,666 1,411,525

Total Expenses 1,118,022 1,112,258 (5,764) 6,762,899 6,945,024 182,125 7,964,404Increase (Decrease) in Net Assets 633,331$ 509,250$ 124,081 2,112,273$ 747,608$ 1,364,665 296,880$

STATEMENT OF FINANCIAL POSITION 10/31/2015 10/31/2014Cash & Cash Equivalents 4,210,909$ 3,918,257$Cash-Temporarily restricted, Maint Reserve, House Raffle 1,117,424 603,775 Ratios % Exp to Tot Exp % Exp to Tot IncPledges Receivable (net of $37k & $74k discount/allowance) 833,920 2,986,215 House Ops 38% 24%Accounts Receivable 100,597 90,690 Fundraising/Events 58% 37%Prepaid Expenses/Deposits/Inventory/Accrued Revenues 81,040 143,624 Admin 3% 2%Property & Equipment (net) 22,129,083 22,815,816 House Raffle 1% 0%Assets restricted for Permanent Endowment, Board Designatedand Long Term Investments 4,963,588 1,670,751Total Assets 33,436,561$ 32,229,128$Accounts Payable/Accrued Expenses 409,752 250,032 Budget-YTD

Current Portion of Long Term Debt 336,000 294,773 Ratios % Exp to Tot Exp % Exp to Tot Inc % Exp to Tot ExpNotes payable - Chase (less current portion) 12,733,165 13,603,450 House Ops 54% 41% 58%Total Liabilities 13,478,917$ 14,148,255$ Fundraising/Events 21% 16% 20%Unrestricted 15,254,863 13,267,571 Admin 4% 3% 5%Temporarily Restricted 705,531 816,052 House Raffle 21% 16% 18%Permanently Restricted 3,997,250 3,997,250Total Net Assets 19,957,644 18,080,873Total Liabilities & Net Assets 33,436,561$ 32,229,128$

Oct-15 Year-to-Date

YTD Thru 10/31/2015

October


October 2015 & YTD Financial Summary

3

36

O:\Board\Committees\Finance\Minutes from 2015\12-December\Finance Comm Minutes 12-3-2015.docx


Thursday, December 3, 2015, 2:00 p.m.

MEMBERS PRESENT: Daniel Grimmer, Travis Alegria, Nick Cole and Jennifer Harter

MEMBERS ABSENT: Brian Cahill and Abbaseh Samimi




The committee reviewed the Red Shoes & Brews budget to actual.

The committee reviewed the following pieces of the 2016 budget:1. Events budget2. Fundraising expense budget3. Fundraising rollup budget for Events & Fundraising4. Revenue Budget5. Executive Summary6. Rollup budget7. Cash flow8. Combined operations

These sections of the budget were discussed, accepted and recommended to beapproved by the full Board of Trustees.

The committee received a report on and discussed the following items:1. House expansion2. Year-end Development revenue projections

The committee recommends that staff pursue obtaining a $500,000 line of credit withChase Bank.

The next meeting is scheduled for January 28, 2016.

Adjourn.

37

Ronald McDonald House Charities® of

San Diego, Inc.

2016 Budget

DRAFT 11-25-2015

CONFIDENTIAL

38

DRAFT 11-25-2015

Operating Budget:

1) Budgeted revenue is $9,797,000. Projected revenues include:

∙ Total Philanthropy for 2016 is $3,230,000. The projected Philanthropy Revenue Income for 2016 is 9%

higher than the projected 2015 revenues.

∙ Individual, Corporate, Foundation and Community philanthropy is expected at $1,700,000.

∙ Philanthropic revenue from special events in 2016: Golf Tournament, Romp (including a Car Raffle)

and Red Shoe Day events are anticipated to provide gross revenues of $1,595,000, with an

expected net of $900,000.

∙ The House Raffle is anticipated to gross $6,433,000 (based upon 50,795 tickets being sold), with an

expected net of $3,195,000.

∙ Program revenues are budgeted at $1,524,000, which includes Hacer grants of $30,000, Gift in Kind of

$920,000 and Program support and guest donations of $574,000. We are currently negotiating with

Rady Children's Hospital to reacquire the small 12 bedroom annex House on Berger Court. The 2016

budget includes 6 months of operating revenue of $27,000 from the 12 bedroom annex House.

2) Budgeted expense is $8,696,000.

∙ The budgeted costs for programs, administration and development reflect increases of 2.6% (1.6% when

Gift in Kind Expense is removed), 16% and 8% respectively over the 2015 budget. The 12 bedroom annex

House has 6 months of costs budgeted at $212,000 which are not included in the ratios above.

∙ The overall budget includes a 3-5% merit increase for salaries on July 1, 2016. Three senior staff members

will have evaluations in January 2016 with appropriate merit and market increases.

3) JP Morgan Chase Debt Service:

∙ On November 7, 2013, the two loans with North Island Credit Union were refinanced in to one mortgage

for $14,200,000 with JP Morgan Chase. The terms on the new mortgage are:

∙ 20-year term with the loan amortized over 25 years

∙ 5% interest rate which adjusts after 10 years to the then existing 10-year Treasury Note Rates

∙ A loan pre-payment clause that allows us to pay down the mortgage by increments of $500,000

each year for the first five years; after that, there is no limit to the amount that may be paid down

each year.

∙ In late November 2015, $500,000 was paid down on the principal, as was done in November 2014.

∙ The 2016 budget includes an additional pay down of $500,000 in November 2016. The 2014 and 2015

principal payments of $500,000 each year, plus additional $500,000 principal payments in future

years will result in significant overall reductions in interest and total payments due on the loan.

The balloon due at 11-7-2033 was originally $4,399,000. After the two $500,000 loan payments, the

balloon due is now $1,871,000, which is 2,528,000 lower.

CONFIDENTIAL


2016 Budget Executive Summary

Page 2

39

CONFIDENTIALDRAFT 11-25-2015 2016 2015-est 2016 2015-est 2016 2015-est 2016 2015-est 2016 2015-est

Revenues

Contributed Support

Corporate Donations 254,620$ 238,024$ -$ - 254,620$ 238,024$ -$ -$Community Groups 142,800 142,429 142,800 142,429Individual Donations 723,955 465,524 723,955 465,524McDonald's Canisters & Misc. 228,500 224,013 228,500 224,013Foundation Donations/Grants 320,000 373,490 320,000 373,490In-Kind Donations-Fundraising 15,000 16,276 15,000 16,276Bequests/Planned Giving 15,000 15,000 15,000 15,000Special Events 1,595,037 1,541,803 1,595,037 1,541,803Car Raffle Prize (65,000) (60,368) (65,000) (60,368)

Total Contributed Support 3,229,912 2,956,191 - - 3,229,912 2,956,191

House Raffle 6,433,350 6,181,250 6,433,350 6,181,250House Raffle-Prizes & Homeowner (1,595,000) (1,346,014) (1,595,000) (1,346,014)Program Support & Guest Donations 574,400 442,353 574,400 442,353Hacer Grant 30,000 20,000 30,000 20,000In-Kind Donations-Programs 920,000 840,183 920,000 840,183Interest Income & Gains/Losses 204,360 30,839 204,360 30,839Total Revenues 9,797,022$ 9,124,802$ 1,524,400$ 1,302,536$ 3,229,912$ 2,956,191$ 4,838,350$ 4,835,236$ 204,360$ 30,839$

Expenses Programs Programs Fundraising Fundraising House Raffle House Raffle Admin Admin

2016 2015-est 2016 2015-est 2016 2015-est 2016 2015-est 2016 2015-est

FTE EMPLOYEE COUNTS 49 35 32.5 22.25 10.5 8.25 1.5 1.5 4.5 3Salaries, Benefits, & Payroll Taxes 3,026,332 2,428,461 1,553,299 1,299,560 598,921 499,372 573,517 372,908 300,596 256,621

Contract Service Expenses

Accounting/Legal 71,280 69,984 39,000 39,198 13,620 10,638 10,000 4,730 8,660 15,418Canister Vendor 38,000 37,965 38,000 37,965Other Contract Services 70,525 75,501 70,525 75,501

Total Contract Service Expenses 179,805 183,451 39,000 39,198 122,145 124,105 10,000 4,730 8,660 15,418

Non-Personnel Expenses

Supplies, Food, Service Contracts 281,090 144,864 272,990 137,471 5,700 5,144 2,400 2,249Postage & Shipping 207,525 213,114 3,000 1,908 30,325 35,059 173,000 175,703 1,200 444Planned Giving 37,995 7,140 37,995 7,140Printing 344,578 330,785 21,650 21,756 156,728 161,243 165,000 146,875 1,200 911Dues and Subscriptions 6,900 6,124 900 1,375 2,400 2,593 3,600 2,156Recruitment & Volunteer Recognition 15,100 10,049 13,900 8,225 1,200 1,789 35In-Kind Donations-Expense 978,425 946,804 920,000 840,183 58,425 106,621Direct Fundraising Expense 11,500 7,903 11,500 7,903Miscellaneous Event Exp 420,300 410,271 375,800 380,949 44,500 29,322

Total Non-Personnel Expenses 2,303,413 2,077,053 1,232,440 1,010,918 680,073 708,441 382,500 351,900 8,400 5,795

Direct Assistance/Other Programs

Due to Global 25%-Canister program 36,500 33,498 36,500 33,498Scholarships 30,000 30,000 30,000 30,000Education Enrichment 35,000 32,533 35,000 32,533

Total Direct Assistance/Other Program 101,500 96,031 65,000 62,533 0 0 0 0 36,500 33,498

Facility & Equipment Expenses

Auto Expense 10,600 6,249 10,600 6,249Equipment Rental 66,825 42,732 19,500 13,645 41,825 25,716 5,500 3,371Equipment Purchases (<$1,000) 23,500 10,868 16,500 8,575 6,000 2,293 1,000 0Software Purchases (< $1,000) 11,300 3,909 5,300 1,119 5,000 1,920 1,000 871Utilities 238,713 195,232 224,590 185,325 7,660 4,753 6,463 5,153Telephone 160,460 144,371 13,560 4,645 14,700 12,555 130,400 125,962 1,800 1,209Maintenance & Repairs 86,200 48,403 85,000 47,121 1,200 1,281Computer Maintenance & Material 100,920 87,773 28,860 37,361 34,760 30,709 27,200 14,644 10,100 5,059

Total Facility & Equipment Expenses 698,518 539,537 403,910 304,041 111,145 79,227 157,600 140,606 25,863 15,663

Insurance

D&O-Admin 5,100 4,749 5,100 4,749Commercial Policies 36,600 36,791 33,600 33,733 1,500 1,464 1,500 1,593Auto Insurance 6,000 3,057 6,000 3,057

Total Insurance 47,700 44,597 39,600 36,791 1,500 1,464 0 0 6,600 6,343

Other Expenses

Meetings & Hospitality 3,300 1,695 1,200 0 0 2,100 1,695Travel & Entertainment 32,170 23,472 8,100 5,307 18,950 15,272 5,120 2,893Licenses & Fees 2,550 980 2,550 980Feasibility Study 17,000 2,900 17,000 2,900Training & Seminars 14,100 7,637 5,000 4,901 5,500 727 3,600 2,009Advertising 444,400 410,045 49,400 32,285 395,000 377,760Public Relations 60,700 50,686 0 35,700 29,379 25,000 21,307Bad Debts - 7,690 7,690Organizational (Corp) Expenses 200 41 41 200 -Merchant & Bank Fees 190,180 162,528 41,580 32,304 48,200 40,555 100,000 89,421 400 248

Depreciation & Amortization 955,744 898,715 934,144 877,955 10,800 10,380 10,800 10,380Mortgage Interest 616,980 661,097 586,140 628,041 15,420 16,528 15,420 16,528Income Tax 1,000 1,954 1,000 1,954Total Other Expenses 2,338,324 2,229,439 1,595,714 1,552,429 183,970 152,815 520,000 488,488 38,640 35,707

Total Expenses 8,695,592 7,598,571 4,928,963 4,305,471 1,697,754 1,565,424 1,643,617 1,358,632 425,258 369,044

Increase (Decrease) in Net

Assets 1,101,430 1,526,231 (3,404,563) (3,002,935) 1,532,158 1,390,767 3,194,733 3,476,604 (220,898) (338,206)

Expense % to Total Expenses 100.00% 100.00% 56.68% 56.66% 19.52% 20.60% 18.90% 17.88% 4.89% 4.86%

Expense % to Total Expenses w/out Raffle 69.89% 24.07% 6.03%

Chase - Fixed Charge Coverage Ratio:Net Earnings 1,101,430 Net EarningsInterest Expense 616,980 Interest ExpenseTaxes 1,000 TaxesDepreciation & Amortization 955,744 Depreciation & Amortization

Total (A) 2,675,154 Total (A)

Interest 616,980 Interest PASS Memo: FTE for House Ops = 6.5 + 26Principal payments - Chase 880,889

Total (B) 1,497,869 Total (B)

Debt Service Coverage Ratio (A/B) 1.79 Ratio should be not less than 1.20 to 1.00.

Grand Totals

Grand Totals


2016 Total Operating Budget

Fundraising & Events AdministrationRMH & Other Programs

Both HousesHouse Raffle

Page 3

40

DRAFT 11-25-2015 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

BEGINNING CASH BALANCE2,500,000$ 4,008,550$ 6,015,551$ 6,317,547$ 6,500,563$ 5,928,699$ 4,816,411$ 4,628,768$ 4,442,096$ 4,797,137$ 4,697,138$ 3,379,667$

CASH INFLOWS (REVENUE):

Contributed Support

Corporate Donations 12,635 42,635 27,635 12,635 12,635 12,635 12,635 70,635 12,635 12,635 12,635 12,635 254,620Community Groups 6,316 6,316 62,066 8,566 8,316 9,566 6,316 6,316 6,316 10,066 6,316 6,324 142,800Individual Donations 49,401 49,401 61,920 49,401 79,401 58,544 49,401 49,401 49,401 61,826 51,901 113,957 723,955In-Store (McDonald's) 15,400 15,400 31,400 15,400 15,400 21,700 15,400 15,400 22,500 23,400 15,400 21,700 228,500Foundation Donations/Grants 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 45,000 320,000In Kind Donations-Fundraising 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000Bequests/Planned Giving 15,000 15,000Special Events Income - - - - - 187,500 - - 1,141,612 245,925 20,000 - 1,595,037Car Raffle Prize (65,000) (65,000)

Development Subtotal 110,002 140,002 209,271 112,252 142,002 316,195 110,002 168,002 1,193,714 380,102 132,502 215,866 3,229,912

Programs Donations 45,599 45,599 45,599 45,599 45,599 45,599 50,132 50,132 50,132 50,132 50,132 50,146 574,400Hacer Grant 30,000 30,000House Raffle 2,375,350 2,814,150 695,400 421,950 126,500 - 6,433,350Raffles-Prizes & HO Option (40,000) (50,000) (50,000) (5,000) (450,000) (1,000,000) - - - - - - (1,595,000)In-Kind Donations-Programs 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 150,000 920,000Interest & Dividend Income/Gains & Losses17,030 17,030 17,030 17,030 17,030 17,030 17,030 17,030 17,030 17,030 17,030 17,030 204,360Prior year Pledges received 92,000 46,985 13,000 151,985

TOTAL CASH INFLOWS 2,577,981 3,066,781 987,300 753,831 (48,869) (551,176) 294,149 305,164 1,330,876 517,264 269,664 446,042 9,949,007AVAILABLE CASH BALANCE 5,077,981 7,075,331 7,002,851 7,071,378 6,451,694 5,377,523 5,110,560 4,933,932 5,772,972 5,314,401 4,966,802 3,825,709CASH OUTFLOWS (EXPENSES):

SALARIES & RELATED EXPENSES200,957 198,537 195,663 194,439 194,049 193,649 213,805 213,324 213,268 212,214 211,564 211,346 2,452,815CONTRACT SERVICE EXPENSES

Accounting/Legal 440 11,440 8,440 440 5,940 540 7,090 6,490 5,490 990 6,490 5,990 59,780Canister Ambassador 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,163 38,000Other Contract Services 710 14,735 710 710 710 710 710 710 710 710 710 690 22,525

NON-PERSONNEL EXPENSES 38,880 36,527 61,622 34,652 52,728 52,789 43,034 38,764 48,330 56,539 57,264 56,679 577,808In Kind Donations-Expenses 71,250 71,250 71,250 71,250 71,250 71,250 71,250 71,250 71,250 71,250 71,250 151,250 935,000Due to Global 25% 0 0 0 0 8,500 0 0 8,500 0 0 8,500 11,000 36,500Miscellaneous Event Exp 275 275 275 675 1,575 275 275 2,275 275 9,625 275 275 16,350DIRECT ASSISTANCE/OTHER PROGRAMS2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 32,916 2,916 2,916 2,924 65,000FACILITY & EQUIPMENT EXPENSES 5,458 5,458 6,458 5,458 10,458 5,458 7,108 6,108 6,108 6,108 6,108 6,112 76,400

Utilities 15,611 14,137 13,716 12,664 17,295 16,769 23,518 26,991 29,097 24,886 20,676 19,753 235,113Telephone 1,355 1,355 1,355 1,355 1,355 1,355 1,655 1,655 1,655 1,655 1,655 1,655 18,060

MAINTENANCE & REPAIRS 5,933 5,933 5,933 5,933 5,933 5,933 8,433 8,433 8,433 8,433 8,433 8,437 86,200OTHER EXPENSES 16,252 27,802 16,002 24,952 25,252 15,532 15,787 18,077 16,177 19,527 16,777 17,363 229,500Additional Pay down on the Mortgage 500,000 500,000Maintenance Reserve Funding 500,000 500,000Mortgage Interest-Chase 51,415 51,415 51,415 51,415 51,415 51,415 51,415 51,415 51,415 51,415 51,415 51,415 616,980Mortgage Principal-Chase 30,847 30,976 31,106 31,236 31,367 31,498 31,629 31,761 31,894 32,028 32,161 34,386 380,889DEPRECIATION 78,340 78,340 77,840 77,840 77,840 77,840 81,284 81,284 81,284 81,284 81,284 81,284 955,744House Raffle costs 623,966 583,856 215,276 129,553 39,085 51,880 5,000 80,000 20,000 1,748,617Events Costs (Less Raffle Prize) 0 0 0 0 0 55,975 0 0 455,650 110,800 7,775 0 630,200TOTAL EXPENSES 1,147,771 1,138,120 763,144 648,655 600,835 638,952 563,076 573,120 1,057,119 698,547 1,668,420 683,722 10,181,481

Adjustments to reconcile change in net assets to net cash used:

Depreciation (78,340) (78,340) (77,840) (77,840) (77,840) (77,840) (81,284) (81,284) (81,284) (81,284) (81,284) (81,284) (955,744)TOTAL CASH OUTFLOWS 1,069,431 1,059,780 685,304 570,815 522,995 561,112 481,792 491,836 975,835 617,263 1,587,136 602,438 9,225,737

TOTAL NET CASH INFLOWS/(OUTFLOWS)1,508,550 2,007,001 301,996 183,016 (571,864) (1,112,288) (187,643) (186,672) 355,041 (99,999) (1,317,472) (156,396) 723,270

ENDING CASH BALANCE 4,008,550$ 6,015,551$ 6,317,547$ 6,500,563$ 5,928,699$ 4,816,411$ 4,628,768$ 4,442,096$ 4,797,137$ 4,697,138$ 3,379,667$ 3,223,270$


2016 Budgeted Cash Flow -CONFIDENTIAL

41

DRAFT 11-25-2015

Acct# January February March April May June July August September October November December Total

RevenuesCorporate Donations 12,635 42,635 27,635 12,635 12,635 12,635 12,635 70,635 12,635 12,635 12,635 12,635 254,620Community Groups 6,316 6,316 62,066 8,566 8,316 9,566 6,316 6,316 6,316 10,066 6,316 6,324 142,800Individual Donations-Income 49,401 49,401 61,920 49,401 79,401 58,544 49,401 49,401 49,401 61,826 51,901 113,957 723,955In-Store (McDonald's) 15,400 15,400 31,400 15,400 15,400 21,700 15,400 15,400 22,500 23,400 15,400 21,700 228,500Foundation Donations/Grants 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 45,000 320,000Bequests/Planned Giving - - - - - - - - - - - 15,000 15,000In-Kind Donations-Fundraising 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000Events-Gross Revenues (including GIK) - - - - - 187,500 - - 1,141,612 245,925 20,000 - 1,595,037Car Raffle Prize (65,000) (65,000)

Development Subtotal 110,002 140,002 209,271 112,252 142,002 316,195 110,002 168,002 1,193,714 380,102 132,502 215,866 3,229,912House Raffle 2,375,350 2,814,150 695,400 421,950 126,500 - 6,433,350House Raffle-Prizes & HO Option (40,000) (50,000) (50,000) (5,000) (450,000) (1,000,000) - (1,595,000)Program Donations-both houses 45,599 45,599 45,599 45,599 45,599 45,599 50,132 50,132 50,132 50,132 50,132 50,146 574,400Hacer Grant - 30,000 - - - - - - - - - - 30,000In-Kind Donations-Programs 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 150,000 920,000Interest/Div, Gains/Losses,Chg Value 17,030 17,030 17,030 17,030 17,030 17,030 17,030 17,030 17,030 17,030 17,030 17,030 204,360Total Revenues 2,577,981 3,066,781 987,300 661,831 (48,869) (551,176) 247,164 305,164 1,330,876 517,264 269,664 433,042 9,797,022

ExpensesSalaries 7210 149,498 149,498 149,498 149,498 149,498 149,498 167,356 167,356 167,356 166,489 166,489 166,489 1,898,521Employee Benefits 7230 22,237 22,237 22,237 22,237 22,237 22,237 22,237 22,237 22,237 22,237 22,237 22,237 266,849Workers Comp 7231 4,915 4,915 4,915 4,915 4,915 4,915 5,910 5,910 5,910 5,907 5,907 5,907 64,939403(b) Match 7232 4,800 4,800 4,800 4,800 4,800 4,800 5,140 5,140 5,140 5,140 5,140 5,140 59,639Social security 7242 9,269 9,269 9,269 9,269 9,269 9,269 9,587 9,214 9,214 9,160 8,608 8,442 109,838Medicare 7243 2,168 2,168 2,168 2,168 2,168 2,168 2,427 2,427 2,427 2,414 2,414 2,414 27,529State Unemployment 7244 8,070 5,650 2,776 1,552 1,162 762 1,149 1,041 985 867 769 717 25,501Total Salaries & Benefits 200,957 198,537 195,663 194,439 194,049 193,649 213,805 213,324 213,268 212,214 211,564 211,346 2,452,815

Accounting/Legal 7310/20 440 11,440 8,440 440 5,940 540 7,090 6,490 5,490 990 6,490 5,990 59,780Canister Vendor 7350 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,163 38,000Other Contract Service 7370 710 14,735 710 710 710 710 710 710 710 710 710 690 22,525House Program Expense 8110-1 600 600 600 600 600 600 600 600 600 600 600 600 7,200Operations Supplies 8110-2 2,350 2,350 2,350 2,350 2,350 2,350 2,830 2,830 2,830 2,830 2,830 2,830 31,080Service Contracts 8110-4 5,335 5,335 5,335 5,335 5,335 5,335 5,435 5,335 5,335 5,435 5,335 5,315 64,200Service Contracts-Cable TV 8342 2,300 2,300 2,300 2,300 2,300 2,300 3,110 3,110 3,110 3,110 3,110 3,110 32,460Service Contracts-Comp Main 8372 4,402 4,402 4,402 5,402 5,402 5,402 5,902 5,902 4,902 6,162 4,902 4,898 62,080Food 8110-5 4,250 4,250 4,250 4,250 4,250 4,250 4,866 4,866 4,866 4,866 4,866 4,870 54,700Kitchen-Smallwares 8110-6 667 667 667 667 667 667 833 833 833 833 833 833 9,000Kitchen-Paper Goods 8110-7 1,250 1,250 1,250 1,250 1,250 1,250 1,416 1,416 1,416 1,416 1,416 1,420 16,000Linens 8110-8 910 910 910 910 910 910 1,135 1,135 1,135 1,135 1,135 1,215 12,350Office 8110-9 1,120 1,120 1,120 1,120 1,120 1,120 1,170 1,170 1,170 1,170 1,170 1,170 13,740Uniforms 8110-10 237 237 237 237 237 237 287 287 287 287 287 293 3,150Guest Room Supplies 8110-12 200 200 200 200 200 200 250 250 250 250 250 250 2,700House Furnishings 8110-13 500 500 500 500 500 500 833 833 833 833 833 835 8,000Kitchen Chemicals 8110-14 350 350 350 350 350 350 450 450 450 450 450 450 4,800Kitchen Uniforms 8110-15 125 125 125 125 125 125 125 125 125 125 125 125 1,500Kitchen Catering 8110-16 100 100 100 100 100 100 100 100 100 100 100 100 1,200Kitchen Operations 8110-17 200 200 200 200 200 200 250 250 250 250 250 250 2,700Kitchen Dinnerware 8110-18 416 416 416 416 416 416 582 582 582 582 582 594 6,000Uniforms-Facilities 8110-19 - - 375 - - - - - 375 - - - 750Emergency Preparedness 8110-21 100 100 100 100 100 100 100 100 100 100 100 100 1,200

Ronald McDonald House Charities of San Diego

2016 Total Combined Operations Budget by Month

42

DRAFT 11-25-2015

Acct# January February March April May June July August September October November December Total


2016 Total Combined Operations Budget by Month

Postage & Shipping 8120 575 650 1,125 575 2,275 575 575 575 2,175 575 5,075 3,075 17,825Planned Giving 8122 6,428 3,500 6,310 1,000 4,826 4,000 1,570 500 6,791 - 70 3,000 37,995Printing & Graphic Design 8125 4,380 4,380 22,895 4,380 4,380 18,117 4,380 4,380 5,580 22,895 4,560 15,631 115,958Printing 8126 300 300 1,455 300 7,800 300 300 300 300 300 11,200 2,600 25,455Graphic Design 8127 200 200 1,415 200 4,250 200 200 200 200 200 4,800 200 12,265Dues & Subscriptions 8130 575 575 575 575 575 575 575 575 575 575 575 575 6,900Recruitment 8135 265 265 265 265 265 265 290 290 290 290 290 310 3,350Volunteer Expense 8145 165 165 165 165 165 165 190 190 190 190 190 210 2,150

Background Checks 8145-1 290 290 290 290 290 290 390 390 390 390 390 410 4,100T-Shirts 8145-2 - - 1,000 - - - - - 1,000 - - - 2,000Recognition 8145-3 290 290 290 290 290 290 290 290 290 290 290 310 3,500

In-Kind Donations-Expense 8150 71,250 71,250 71,250 71,250 71,250 71,250 71,250 71,250 71,250 71,250 71,250 151,250 935,000Donor Recognition 8155 - 500 50 200 1,200 1,600 4,000 900 1,000 300 650 1,100 11,500Due to Global 25%-Canister Program8160 - - - - 8,500 - - 8,500 - - 8,500 11,000 36,500Miscellaneous Event Exp 8170 275 275 275 675 1,575 275 275 2,275 275 9,625 275 275 16,350Scholarships Paid 8220 - - - - - - - - 30,000 - - - 30,000Education Enrichment 8225 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,916 2,924 35,000Auto Expense 8310 830 830 830 830 830 830 930 930 930 930 930 970 10,600Equipment Rental 8321 2,458 2,458 2,458 2,458 2,458 2,458 2,708 2,708 2,708 2,708 2,708 2,712 31,000Equipment Purchases (<$1,000) 8322 1,750 1,750 2,750 1,750 1,750 1,750 2,000 2,000 2,000 2,000 2,000 2,000 23,500Software Purchases (< $1,000) 8323 420 420 420 420 5,420 420 1,470 470 470 470 470 430 11,300Electric 8341-1 8,526 7,052 6,631 5,579 10,210 9,684 14,568 18,042 20,147 15,936 11,726 10,673 138,775Gas 8341-2 2,190 2,190 2,190 2,190 2,190 2,190 3,190 3,190 3,190 3,190 3,190 3,230 32,320Water 8341-3 4,379 4,379 4,379 4,379 4,379 4,379 5,079 5,079 5,079 5,079 5,079 5,161 56,828Trash 8341-4 416 416 416 416 416 416 546 546 546 546 546 554 5,780Drinking Water 8341-5 100 100 100 100 100 100 135 135 135 135 135 135 1,410Telephone 8343 1,355 1,355 1,355 1,355 1,355 1,355 1,655 1,655 1,655 1,655 1,655 1,655 18,060Maintenance & Repairs 8371 5,933 5,933 5,933 5,933 5,933 5,933 8,433 8,433 8,433 8,433 8,433 8,437 86,200Meetings & Hospitality 8410 275 275 275 275 275 275 275 275 275 275 275 275 3,300Catering 8411 - - - 9,150 - - - - - - - - 9,150Photography 8412 - - - 550 - - - - - 750 - - 1,300Travel & Entertainment 8420 1,841 3,341 2,341 1,841 2,341 1,841 1,841 3,641 1,841 3,841 1,841 1,869 28,420Depreciation & Amortizatn 8500 78,340 78,340 77,840 77,840 77,840 77,840 81,284 81,284 81,284 81,284 81,284 81,284 955,744Licenses & Fees 8630 200 200 200 200 200 200 225 225 225 225 225 225 2,550Feasibility Study 8635 - 10,000 - - 7,000 - - - - - - - 17,000D&O Insurance 8641 425 425 425 425 425 425 425 425 425 425 425 425 5,100Commercial Policies 8642 2,850 2,850 2,850 2,850 2,850 2,850 3,250 3,250 3,250 3,250 3,250 3,250 36,600Auto Insurance 8645 500 500 500 500 500 500 500 500 500 500 500 500 6,000Training & Seminars 8660 1,166 1,166 1,166 1,166 1,166 1,166 1,166 1,166 1,166 1,166 1,166 1,274 14,100Advertising 8680 1,300 1,300 1,300 1,300 3,800 1,300 1,300 1,800 1,300 1,300 1,300 1,300 18,600Marketing/PR 8685 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 2,100 23,000Organizational (Corp) Expenses 8850 - 50 - - - - - - 150 - - - 200Merchant & Bank Fees 8860 5,795 5,795 4,795 4,795 4,795 4,825 4,905 4,895 4,895 5,895 5,895 5,895 63,180Mortgage Interest 6910 51,415 51,415 51,415 51,415 51,415 51,415 51,415 51,415 51,415 51,415 51,415 51,415 616,980Income Tax 6920 - - 250 - - 250 - - 250 - - 250 1,000House Raffle 623,966 583,856 215,276 129,553 39,085 51,880 1,643,617Events Costs (w/out car prize) - - - - - 55,975 - - 455,650 110,800 7,775 - 630,200Subtotal Expenses 1,116,924 1,107,144 732,038 617,419 569,468 607,454 531,447 541,359 1,025,225 661,519 556,259 629,336 8,695,592Increase (Decrease) in NetAssets

1,461,057 1,959,637 255,262 44,412 (618,337) (1,158,630) (284,283) (236,195) 305,651 (144,255) (286,595) (196,294) 1,101,430

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2016 "Annex-12 Room" House Operations Budget

Budget 47 Room-

DRAFT 11/3/2015 2016 % to 2015

Expenses Acct# Jan Feb March April May June July Aug Sept Oct Nov Dec Total Total Budget

Salaries 7210 - - - - - - 11,327 11,327 11,327 11,327 11,327 11,327 67,964 32.03% 1,003,289Employee Benefits 7230 - 0.00% 163,571Workers Comp 7231 - - - - - - 837 837 837 837 837 837 5,023 2.37% 49,448403(b) Match 7232 - - - - - - 340 340 340 340 340 340 2,039 0.96% 30,000Social security 7242 - - - - - - 702 702 702 702 702 702 4,214 1.99% 58,143Medicare 7243 - - - - - - 164 164 164 164 164 164 985 0.46% 14,548State Unemployment 7244 - - - - - - 689 689 689 689 689 637 4,081 1.92% 13,707Total Salaries & Benefits - - - - - - 14,060 14,060 14,060 14,060 14,060 14,008 84,306 39.73% 1,332,706

Accounting-5% 7310 550 550 550 550 550 550 3,300 1.56% 35,700Legal 7320 - 0.00%

House Program Expense 8110-1 - - - - - - 0.00% 7,200Operations Supplies (40x12) 8110-2 480 480 480 480 480 480 2,880 1.36% 24,000Service Contracts 8110-4 100 100 200 0.09% 40,000Service Contract-Cable TV (54x15) 8342 810 810 810 810 810 810 4,860 2.29% 24,000Service Contract-Comp Maint 8372 500 500 500 500 500 500 3,000 1.41% 35,720Food 8110-5 200 200 200 200 200 200 1,200 0.57% 36,000Coca Cola 8110-20 416 416 416 416 416 420 2,500 1.18% 21,000Kitchen-Smallwares 8110-6 166 166 166 166 166 170 1,000 0.47% 8,000Kitchen-Paper Goods 8110-7 166 166 166 166 166 170 1,000 0.47% 20,000Linens 8110-8 225 225 225 225 225 225 1,350 0.64% 11,000Office 8110-9 50 50 50 50 50 50 300 0.14% 7,440Uniforms-House Operations 8110-10 50 50 50 50 50 50 300 0.14% 3,600Guest Room Supplies 8110-12 50 50 50 50 50 50 300 0.14% 2,400House Furnishings 8110-13 333 333 333 333 333 335 2,000 0.94% 6,000Kitchen Chemicals 8110-14 100 100 100 100 100 100 600 0.28% 8,400Kitchen Uniforms 8110-15 - - - - - - - 0.00% 1,500Kitchen Catering 8110-16 - - - - - - - 0.00% 600Kitchen Operations 8110-17 50 50 50 50 50 50 300 0.14% 2,400Kitchen Dinnerware 8810-18 166 166 166 166 166 170 1,000 0.47%

Uniforms-Facilities 8110-19 - - - - - - - 0.00%

Emergency Preparedness Supplies 8110-21 - - - - - - - 0.00%

Postage & Shipping 8120 - - - - - - - 0.00% 3,000Printing ($16,656 is TS in 2015) 8125 - - - - - - - 0.00% 21,756Subscriptions/Dues 8130 - - - - - - - 0.00% 900Recruitment 8135 25 25 25 25 25 25 150 0.07% 900Volunteer Expense 8145 25 25 25 25 25 25 150 0.07% 1,000

Background Checks 8145-1 100 100 100 100 100 100 600 0.28% 6,500

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2016 "Annex-12 Room" House Operations Budget

Budget 47 Room-

DRAFT 11/3/2015 2016 % to 2015

Expenses Acct# Jan Feb March April May June July Aug Sept Oct Nov Dec Total Total Budget

T-Shirts 8145-2 - - - - - - - 0.00% 3,500Recognition 8145-3 - - - - - - - 0.00%

In-Kind Donations-costs 8150 - - - - - - - 0.00% 860,000Scholarships Paid 8220 - - - - - - - 0.00% 20,000Education Enrichment 8225 - - - - - - - 0.00% 18,375Auto Expense 8310 100 100 100 100 100 100 600 0.28% 13,500Equipment Rental 8321 250 250 250 250 250 250 1,500 0.71% 15,000Equipment Purchases (<$1,000) 8322 250 250 250 250 250 250 1,500 0.71% 8,000Software Purchases (< $1,000) 8323 50 50 50 50 50 50 300 0.14% 5,000Electric 8341-1 1,200 1,200 1,200 1,200 1,200 1,200 7,200 3.39% 136,800Gas 8341-2 1,000 1,000 1,000 1,000 1,000 1,000 6,000 2.83% 25,000Water 8341-3 700 700 700 700 700 700 4,200 1.98% 45,000Trash 8341-4 130 130 130 130 130 130 780 0.37% 1,000Drinking Water 8341-5 35 35 35 35 35 35 210 0.10% 1,200Telephone 8343 300 300 300 300 300 300 1,800 0.85% 11,760Maintenance & Repairs 8371 2,500 2,500 2,500 2,500 2,500 2,500 15,000 7.07% 60,000Meetings & Hospitality 8410 - - - - - - - 0.00% 1,200Travel & Entertainment 8420 - - - - - - - 0.00% 8,100Building Depreciation 8510 - - - - - - - 0.00% 392,400Garage Depreciation 8515 - - - - - - - 0.00% 235,680Equipment Depreciation 8520 - - - - - - - 0.00% 66,000Furniture Depreciation-$75k 8530 2,083 2,083 2,083 2,083 2,083 2,083 12,498 5.89% 183,600Improvements Depr.-$175k 8540 4,861 4,861 4,861 4,861 4,861 4,861 29,166 13.74% 60,000Vehicle Depreciation 8550 - - - - - - - 0.00% 24,000Loan Fee Amortization 8570 - - - - - - - 0.00% 6,300Licenses & Fees 8630 25 25 25 25 25 25 150 0.07% 2,400Feasibility Study 8635 10,000 7,000 - - - - - 17,000 8.01% 20,000Commercial Policies 8642 400 400 400 400 400 400 2,400 1.13% 31,200Auto Insurance 8645 - - - - - - - 0.00% 6,000Training & Seminars 8660 - - - - - - - 0.00% 4,000Marketing/PR 8685 - - - - - - - 0.00% -Organizational (Corp) Expenses 8850 - - - - - - 0.00% -Merchant/Bank Fees 8860 100 100 100 100 100 100 600 0.28% 40,980Mortgage Interest 6910 - - - - - - - 0.00% 628,824Total Expenses - 10,000 - - 7,000 - 32,606 32,506 32,506 32,606 32,506 32,472 212,200 100.00% 4,596,541

45

B. Resolution for 2016 Budget Upon completion of the review and discussion of the proposed 2016 Budget, please pursue the following motion:

RESOLVED, the Board of Trustees of Ronald McDonald House Charities® of San Diego approves the proposed 2016 budget.

Ronald McDonald House Charities of San Diego, Inc. December 9, 2015

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VI. Audit Committee

O:\Board\Committees\Audit\2015\Audit Comm Report 12-9-2015.docx

TO: BOARD OF TRUSTEES OF RONALD MCDONALD HOUSE CHARITIES® OF SAN DIEGO, INC.

FROM: DAN CLOSE, CPA - AUDIT COMMITTEE CHAIR

SUBJECT: RMHC 2014 NON-PROFIT TAX RETURNS AND 2015 RMHC AUDIT

DATE: DECEMBER 9, 2015

Our 2015 Non-profit Federal and State tax returns were prepared by our outside CPA firm,RBTK, LLP. They were also reviewed by our CEO, Chuck Day, our CFO Gail Sullivan.Form 990 was provided to the entire board of trustees before filing. The tax returns wereextended and timely filed on October 7, 2015.

It is that time of year to reengage our audit firm RBTK, LLP for the 2015 audit.Considering all of these facts and evaluating the depth of knowledge and work of ourcurrent audit firm, RBTK, LLP, it is my recommendation that the Board of Trustees engagethe firm of RBTK, LLP for an additional two years, in one year increments. Thisrecommendation is made subject to receipt of a competitive fee proposal each year. We willbe rotating partners this year. Scott Trendel has been the audit partner for 5 years. KevinBrown will be the audit partner beginning this year.

Happy Holidays and Happy New Year!

Dan Close

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