Northstar Hospital 2nd Quarter 2012

No matter what an organization puts into financial
reports about how it is doing, the rubber hits the road
when it comes to actual deposits. The only reason we
know of for not making deposits on schedule is if the
cash that is being reported isn't actually there. Of
course there possibly are other reasons, but the
report provided by Northstar Hospital doesn't grant
us the luxury of such a disclosure nor do they so
much as inform of of how long the delay in making
the deposit was.

On page 7 of the FY2011 report,

http://tinyurl.com/9zatl6c

Northstar discloses:


"In its letter dated April 30, 2012, the Master
Trustee notified the Obligated Group that its
tardiness in depositing its Quarterly Net Cash
Flow to the Supplemental Account for the quarter
ended December 31, 2011 has caused a Forbearance
Event of Default to occur, which Forbearance
Event of Default terminated the forbearance of
certain Specified Defaults, and which Forbearance
Event of Default has caused an Event of Default
under the Master Indenture."

Also of concern is that for FY2011 the deficit for
revenue/expenses only showed 22% of the total
achieved for FY2011 at the halfway, 6 month,
point. Ordinarily your humble correspondent 
expects a more closely linear distribution of the
underlying facts, and believes that reporting may
be inaccurate.

The net effect is not of major consequence to the
current latest report to be found at:

http://tinyurl.com/8ppvqrr

The positive figures provided in this report can
simply shift to depict a loss by years end, but
we'll simply have to wait to see what falls out in
subsequent reports.

The Russian wisdom, adapted by Ronald Reagan,
"Trust but verify" is the reason that the financial
statements are required quarterly in the first place.
To date the numbers for the $23,150,000
municipal bond issued have never looked very
good. We hope they improve and defaults don't
continue.


Bill Vajk