Let’s discuss the first question about our fiscal growth:

The Disability Foundation has grown steadily over the 12 years of our existence.  Evidence as to how we have moved towards financial independence can be seen by just going back over the pastg 5 years.  For FY 2011, The Disability Foundation will generate 81% ($97,450 of $120,862) of its expected revenue.  This is a remarkable figure when you consider that The Disability Foundation received 100% of its revenue from our funding partners, and The Dayton Foundation, during the first few years of our incorporation (1999).  Over the past 5 years, the revenue we have produced ourselves looks like this:

FY 2006: 24% (of the overall budget)
FY 2007: 60%
FY 2008: 63%
FY 2009: 65%
FY 2010: 70%

The most important aspect to remember, when we are throwing all of these dollar amounts and percentages around, is the individuals that we serve and the benefits they receive through the services of The Disability Foundation.  Each day, we present our products to the community and our exposure continues to increase among families and professionals.  Last year, we established 75 (the most ever for a fiscal year) trusts which almost doubled our previous high of 43 from FY 2009.  What does this mean?  More lives are enhanced as our services expand to more persons with disabilities!

Let’s touch on question two for a moment.  Now, I’m not a Sky is Falling kind of guy, but the economic outlook concerning all facets of life in Ohio is rather gloomy.  Education, the Arts, Mental Health Services, Medicaid, Board of Developmental Disabilities are looking at budget cutbacks.  More people will have services reduced or more people will go without services entirely.  This is where we can help…and you can help us to help… comes in.  By assisting individuals in prudent financial management, while maintaining their public benefits such as Medicaid and Social Security, we will be able to help fill in some of the holes that exist, or will exist, in regards to overall needs available to individuals with disabilities.  While doing so, we will be provide greater opportunity, for local remainder funds (those left over when a Trust Recipient passes away) to remain local and provide assistance to local organizations serving individuals with disabilities.  By providing financial support to The Disability Foundation, we keep our administrative fees lower than our competitors, which, in turn, make the product more affordable to more families. More people have the opportunity to enrich their lives directly from your support!

Donors want to know how we properly steward the funds in our care.  We do so with layers of checks and balances along with prudent financial management through our Fiduciary Trustees.

Those checks and balances include:

• Disability Foundation, Inc. as Distribution Trustee:
  The Disability Foundation is charged with ensuring that all distribution requests are reviewed and approved/denied based upon Ohio Admin. Code §5123:2-18-01 (Attached), which restricts the use of trust distributions to ‘Supplemental Needs’.

• All distribution requests are reviewed by a Distribution Committee, which is made up of Disability Foundation, Inc. Board members and volunteer support service staff; from County Boards and private agencies which have knowledge and experience working with Soc Sec Administration and Job and Family Services.  No distributions are allowed to leave a trust without adhering to Ohio Admin. Code §5123:2-18-01.

• Any funds released, from the trust, must have accounting provided for the services/good purchased. A distribution is flagged as ‘Pending’ on an individual’s Spending Account until a receipt/invoice is received to ensure that the funds were utilized for the intended purpose for which they were requested.  This provides an accounting that shows that the trust funds are being utilized for the sole benefit of that Trust Recipient.  With a recommendation from the Distribution Committee, the Disability Foundation Board is able to put on hold any future distributions if distributions are left ‘pending’ for too long (approx. 2 quarters).  This ensures that we have proper accounting in case of a Medicaid, Soc. Security Administration or internal audit.

• Accounting: A spending account spreadsheet is maintained for every individual trust recipient.  It shows all debits and credits, to each account, that occur through our office.  In addition, we receive a monthly statement from US Bank to show all investment activity, i.e. assessed fees, interest and distributions made from each individual account.  Quarterly account statements, for each individual, are mailed to that trust recipient’s personal representative to show all quarterly activity in the account (from KeyBank).

• Investment of Pooled Funds: KeyBank is the investment manager for the pool of trust funds.  KeyBank must adhere to, and sign off to, the Investment Policy of The Dayton Foundation (Attached).  The funds, in the OCPFST, are invested in 100% Fixed Income.  It was the determination of The Disability Foundation, via a survey of our trust recipients and/or their families that asset protection was the number one priority when determining the investment strategy for this pool.  In addition, the performance of all investment managers, including KeyBank as Trustee of the Ohio Community Pooled Flexible-Spending Trust, are reviewed quarterly by an independent auditor, the Fund Evaluation Group, out of Cincinnati.

• Fiduciary Trustee: KeyBank is the Trustee for all the accounts.  KeyBank is responsible for filing the K-1’s for each individual account and filing a tax return, on the pool as a whole, each year.  KeyBank, of course, adheres to its financial regulations, standards and best practices as overseen by the industry.

• Communications: SSI and Medicaid:  It is the responsibility of The Disability Foundation to communicate details, with authorization of the trust recipient, or his/her legal guardian, any financial information applicable to the continued eligibility for Medicaid and/or SSI benefits.  We participate in the appeals process and any appeals hearing per the wishes of the trust recipients or his/her legal guardian, when applicable.

• Auditing/Tax filing: as a supporting organization of The Dayton Foundation, The Disability Foundation is audited each year, by a local accounting firm, as one of the 3,000 plus funds managed by the foundation.  In addition to the audit, as a 501c3, we are required to file a 990 on both The Disability Foundation and the Ohio Community Pooled Annuity Trust.  The Trustee, KeyBank is responsible for all tax filings on the pool of funds for the Flexible-Spending Trust and The Disability Foundation for filing the Annuity and organization 990’s.

Why We Need Your Help: 

• Information sessions:
• Face to face with individuals and/or families
• Phone communications
• Presentations to support network for individuals
• Meetings with attorneys/estate planners for families

• Trust preparation

• Clerical
• Quarterly Request for Distribution letters sent out
• Maintenance of file(s)
• Processing of distribution requests
• Presentation of request(s) to Distribution Committee
• Processing/mailing of check(s)
• Mailing of Annual Plans (1st quarter each year)
• Update Spending Account ledgers in database
• Postage
• Creation of new trust files
• Preparation for Distribution Committee meetings - materials, agendas and minutes

• Accounting
• Monthly account valuations, for each trust, with fund statement(s)- OCPAT
• Annual filing of 990s for the Annuity Trust
• Audits

• Communications with Public Benefit Agencies
• Regular trust explanation letters to Social Security (Soc. Sec.) and Medicaid
• Information/trainings-front line staff/mgrs.- Soc. Sec. & Medicaid
• Legal reviews/filing of appeals with Soc. Sec. & Medicaid
• Income (for Annuity) verifications to Soc. Sec., Medicaid and HUD

• Ancillary Costs
• Office supplies - paper, letterhead, envelopes
• Printing expenses
• Legal
• Parking - individual/family meetings at The Disability Foundation

As evidenced by our list of services, ensuring that the needs of those customers are met to the highest degree of quality, a lot of time and resources are spent per individual. This is why we rely on the generosity of our donors to ensure that our quality services are maximized and that we have the capacity to serve more and more individuals each year.

Through your assistance, we will be able to expand our outreach into more communities and homes.  The result:  more individuals with disabilities living fuller, more financially secure lives while protecting their public benefits.