RESOLUTION NO. RS2017-538

A resolution appropriating to a certain account for the benefit of the Hospital Authority an amount not to exceed Sixteen Million Dollars ($16,000,000).

WHEREAS, by letter dated January 3, 2017, a copy of which is attached hereto as Exhibit A, the Metropolitan Hospital Authority has requested additional funding from the Metropolitan Government in the amount of Sixteen Million Dollars ($16,000,000) for fiscal year 2016-2017, including a contingency amount of Three Million Five Hundred Thousand Dollars ($3,500,000); and,

WHEREAS, in order to stabilize the financial situation at Nashville General Hospital, the Metropolitan Council desires to appropriate to a certain account for the benefit of the Hospital Authority an amount not to exceed Sixteen Million Dollars ($16,000,000) from the undesignated fund balances of the General Fund of the General Services District contingent upon the satisfaction of the conditions set forth herein.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN
GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1: That the following amount from Undesignated Fund Balance of the General Fund
of the General Services District is hereby appropriated:

PRIMARY

EXPENDITURE      ACCOUNT DESCRIPTION                                  AMOUNT

ACCOUNT #

01101426.502613       Hospital Authority – Operating Subsidy                   $16,000,000

TOTAL                                                                  $16,000,000

Section 2:        That the appropriation in Section 1 is funded from the following source:

REVENUE

ACCOUNT #            ACCOUNT DESCRIPTION                                  AMOUNT

10101.335000             General Fund - Undesignated Fund Balance              $16,000,000

TOTAL                                                                   $16,000,000

Section 3: That the appropriation set forth in Section 1 shall be subject to the following timeline and conditions for the Disbursement Requests:

1. Disbursement Requests will be made as follows:

a. An Initial Disbursement of Two Million Dollars ($2,000,000) to be funded within three business days after the adoption of this resolution,
b. Operating Disbursements not to exceed Ten Million Five Hundred Thousand Dollars ($10,500,000), and
c. Contingency Disbursements not to exceed Three Million Five Hundred Thousand Dollars ($3,500,000).

2. Each Operating and Contingency Disbursement Request will be delivered to the Metropolitan Director of Finance at least ten business days prior to requested date of funding, and additionally, be certified by the chief executive and chief financial officers of the Nashville General Hospital management as well as the board chair and finance committee chair of the Hospital Authority.

3. Each Operating and Contingency Disbursement Request will be accompanied by detailed supporting documentation and analysis to the satisfaction of the Metropolitan Director of Finance, inclusive of specific actions to bring current the undisputed working capital accounts of Nashville General Hospital including but not limited to (a) the most recent month end budget to actual cash flow and income statements; and (b) aging reports with explanations for any amounts in dispute for accounts receivable, accounts payable and any recorded or unrecorded liabilities not included in accounts payable.

4. Contingency Disbursement Requests will be made only if the Initial and Operating Disbursements have been exhausted and the Hospital Authority demonstrates to the satisfaction of the Metropolitan Director of Finance that such disbursements are for Nashville General Hospital needs that reasonably could not have been anticipated at the time of the adoption of this resolution.

5. On or before April 30, 2017, the Hospital Authority will deliver to the Metro Director of Finance an initial response and plan for corrective action to address the weaknesses in financial and other controls identified by its financial statement auditor.

6. Within 15 days of the end of each month, the Hospital Authority shall provide copies of the budget to actual cash flow and income statements to the Chairs of the Council Budget and Finance and Health, Hospitals and Social Services Committee, with an electronic copy sent to each member of those committees.

Section 4: That this Resolution shall take effect from and after its adoption, the welfare of
The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: John Cooper, Erica Gilmore, Sharon Hurt

View Exhibit

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee Health, Hospitals, and Social Services Committee
Introduced:	February 7, 2017
Adopted:	February 7, 2017
Approved:	February 8, 2017
By: