This document contains important information pertaining to the release of FORCAST Version 06.11.0261 as of April 12, 2013. Contents of Readme.Txt ---------------------- 1. Contact Information 2. Installing FORCAST 3. Applying a FORCAST Update 4. System Requirements 5. Significant Issues 6. Version History ================================================ 1. Contact Information Call your AVP consultant if you have any questions. St. Louis 800.828.6309 Atlanta 800.441.4969 2. Installing FORCAST If you are updating FORCAST from an earlier version, skip this section and follow the instructions in section 3 on "Applying a FORCAST Update." The FORCAST program files must be installed on a local PC, not a server. The CCRC data files can be located in any directory on the local PC or network drive. If you store the data files on a network directory, they can be accessed by any workstation that has FORCAST installed and the appropriate network directory mapped. However, only one user at a time can access the same files. Check that your computer meets the system requirements in section 4 and, if so, proceed with the installation: - Close all other applications. - Using Windows Explorer, locate the FORCAST installation file, SETUP.EXE. - Double-click on this file to start the installation process. Follow the instructions on the screen. See Help on Data Directory to assign a data directory for your community files. 3. Applying a FORCAST Update If FORCAST is not already on your PC, this section does not apply. Follow the instructions in section 2, "Installing FORCAST." A. BEFORE INSTALLING THE UPDATE, BACKUP OR COPY THE COMMUNITY FILES IN YOUR FORCAST 6 DATA DIRECTORY!!! The update process is not reversible. The file structures will be altered permanently and cannot be returned to your previous version. If you are upgrading from a version earlier than 06.11.0084, please note these special instructions. Otherwise, skip to 3B below. There are three items that need to be re-entered after upgrading, so we recommend printing the existing information before upgrading: i) Any special filters that you have created will be erased. To print a copy of any filters you have saved, go to Database/Utilities/Query Database. Select the filter and choose the "Edit Filter" button. Press the "Alt" + "Print Screen" keys on your keyboard. Open Word and choose Edit/Paste. Then print the Word Document. Repeat for each filter you want to reenter in your upgrade version. ii) Any changes you have made to the resident data settings will be erased. This includes setting default values for certain fields, or suppressing certain fields so they are not displayed when working in the resident database. To print a copy of your database settings, go to Database/Edit/Setup/Setup Database screen. Press the "Alt" + "Print Screen" keys on your keyboard. Open Word and choose Edit/Paste. Repeat this process on the setup screen after scrolling down to the bottom of the list to capture the second screen of default settings. When finished, print the Word Document. iii) Beginning cash balance, actuarial balance sheet, and GAAP balance sheet data screens are now combined in one area. To print a copy of existing data, go to Define Financial Statement Parameters /Beginning Cash Balance. Press "Alt" + "Print Screen" and paste onto Word document as in steps i) and ii). You will need to do each category with data on Actuarial Balance Sheet Current and GAAP Balance Sheet Current screens as well. In the new version, this data will be entered under Financial Statement Parameters/Current Balance Sheet Data. See Help on this screen for a description of the new format. B. Applying the update: - Close all other applications. - Using Windows Explorer, locate the update file, WFUDxxxxxxxx.EXE, where xxxxxxxx is the update version number. - Double-click on this file to start the update process. Follow the instructions on the screen. The update process will search for your original installation of FORCAST 6 and apply the update to that installation. 4. System Requirements Hardware Minimum Recommended -------- ------- ----------- CPU: Pentium III 1.0 GHz Pentium IV 2.0 GHz or faster Available hard disk space: 1 Gigabyte 1 Gigabyte RAM: 128 Megabytes 256 Megabytes Screen Resolution: SVGA (800 x 600) SVGA (800 x 600) or higher Color Palette: 65536 colors or 65536 colors or High Color(16-bit) High Color(16-bit) or higher Operating Win95, Win98SE, Win2000 or Windows XP system: WinNT4 SP3+, WinME, Win2000 Required Software: WinZip 7.0 or later WinZip 8.0 or later NOTE: These requirements are subject to change. 5. Significant Issues (from version 06.11.0167 or earlier) The purpose of this section is to alert the user to any significant changes in modeling that may materially affect results that were generated from previous versions. If the user believes that their results have been affected by these issues or if the user obtains results that are not intuitive, please contact your FORCAST consultant for an explanation. A. There are certain issues that you should be aware of if using amortization for contingent contracts. Contact your AVP consultant for details. B. The methodology for projecting withdrawals associated with couples has been changed. Previously the model generated a lower withdrawal rate for couples, and the ability to match those projections is still available by applying the legacy projection method. C. The methodology for projecting refunds has been changed. For closed- group projections (actuarial valuations), the refund liability may be reduced if you have a significant number of couples that hold contracts with minimum refund amounts. For open-group projections (cash flows), the refund projections for permanent transfer refunds and individual survivor refunds have been modified. D. The weighting methodology for projecting entry fees based on varying contract selection mixes for new entrants or inflation rates that vary by contract type has been improved. E. The approximation for handling percentage of per diem rates paid during temporary transfers to health care by coupled residents has been refined. No change was made to the single resident calculation. F. In a few case instances, historical utilization data results varied with changes in the observation period. This issue has been resolved. G. In situations where a minimum refund percentage was used to defined contract provisions (i.e., the minimum refund amount is greater than $0) and the last month's reduction percentage was less than 1%, this reduction was not applied to refund calculation. This issue has been corrected and may result in slightly different refund amounts for amortization. 6. Version History 06.11.0261 ---------- Consultant\Merge Multiple File Groups - Advanced merge autoassign - Added 105 105 107 199 to Unit Type Area ('UTc'). - Change auto assignment of ILUs from unassigned to apartment in Unit Type Type ('UTcX'). - Added 99 to 'CONTc'. - Added new ILU count item with automatic assignment. - Reworked screen so that tabs are in rows to keep screen small. Consultant\Administrative Tasks - New item, "Display resident CENSus matrix". Consultant\"Testing Procedures..." menu item changed to "Modify Resident List for Census...". Report Tables\Comparative Statistics - add 2010 final & 2011 final. Database\Resident Data\Utilities\Resident data export - Fixed spacers in the resident data export field definition. Database\Resident Data\Utilities\Data Modifications - Added new "Resident data checks" item to perform checks similar to those on the edit screen. 06.11.0260 ---------- Consultant\Merge Multiple File Groups - In advanced merge mode, changed logic for automatic mapping of perm and temps to handle multiple codes in a care level. Consultant\Administrative Tasks - New item, "Create report for Experience Study". 06.11.0259 ---------- Consultant\Merge Multiple File Groups - New advanced merge capabilities including: extra remaps of UnitTypes and ContractTypes, extra single value items, setting of user fields, and adding an end-of-data move record. Database\Resident Data\Utilities\Modifications: - New routine to clear all FINAID data. - Random rename of all resident - Routine modified to handle longer namelist file (up to 750 first/750 last names) which provides 562500 first/last combos. - New longer RandomNameList.txt file created. Financial Assumptions\Occupancy and Allocations - All cells now round to the displayed number of decimals when using Extend. File Group Setup\General Parameters - Made fee changes available without INI setting. 06.11.0257 ---------- Population Simulations\Financial Subsidy Projection - Logic implemented to correct person 1/person 2ownership issues and to remove assets assigned to a person who is deceased as of the start of the simulation. - New report (10.8) for detecting assets assigned to a person who is deceased as of the start of the simulation. - When consultant setting is true a new Consultant Utility menu is shown: - Diagnostic detail report for one couple/one iteration. - Asset ownership correction mode selector. Always defaults to "correct and remove" mode (only mode available to non-consultants) upon entry into screen. 06.11.0256 ---------- Database\Resident Data\Utilities\Modifications: - New item to display financial data warnings and errors. - New item to correct some display financial data errors. Report Tables\Comparative Statistics: - 2010 preliminary statistics. 06.11.0255 ---------- Contains all of Bob's NJ changes since 6.11.254. Contains code for testing v6 to v7 conversions. See RBG emails. Database - Resident Data/Utilities/Modifications: new item to "Display financial person 1/person 2 assignments". Useful in comparing v6 to v7 converted data. 06.11.0254 ---------- Contains all of Bob's NJ changes since 6.11.252. Printing to PDF uses table number in name if available. Capital Expenditures/Cost of Capital grid: - Changed decimal places from 1 to 2. - Allows negative numbers. 2009 final comp stats. Options/Data Directory menu item - enabled in consultant install. Useful in installations under Windows 7. When consultant setting is true, Finaid-in-Forcast has some new capabilities: - Utility menu with: - Diagnostic detail report for one couple/one iteration. - Asset ownership correction mode selector. - New report (10.8) for detecting assets assigned to a person who is deceased as of the start of the simulation. 06.11.0252 ---------- Data modification routine added to copy unit code forward into empty unit code fields. Comparative Statistics updated for 2008. Zip and Help - Updated email addresses. 06.11.0199 ---------- Financial statements/Prepaid Medical Calculation - Locking deduction and percent cells where fee=0 to solve extend problem. Population simulations/Financial subsidy projection/Inflation and interest rate assumptions - Menu item added to changed number of years. Zip/Upload - FTP host set to only IQStorage. Updated email addresses. Help - Updated email addresses. 06.11.1198 ---------- Updated email addresses for Zip and Help. 06.11.1198 ---------- Fix for Comparative Statistics 17*. 06.11.1197 ---------- Comparative Statistics updated for 2007. Workspace size increased to '128M'. Various fixes. 06.11.1195 ---------- Comparative Statistics - Addition of new statistics (see "*" items). - Feature to allow consultants to select which statistics are to be included in the comparative statistics report. - Fix the Comparative Statistics ten year reserve for simulation years less than ten. Financial Reports - Fix loading factor and target rate in cost of capital calculations. Database Reports - Change the report display widths for user text fields. File Menu - New menu item on Zip screen to select an alternate FTP upload site. Miscellaneous - New Alternative Health Care Guarantees Help topic. - New Refundable Entry Fees Help topic. 06.11.1194 ---------- Financial Statements - New Entrant Pricing/Refundable Entry Fees screen. - New Entrant Pricing/Alternative Health Care Guarantees screen. Population Simulations - Financial Subsidy Projection: Default Federal Tax rates updated to 2005, but any previous values must be manually revised. 06.11.1193 ---------- File Menu and Help - Zip and Help support topic: Updated email addresses for new staff. Database and Population Simulation - Database/Utilities/Create Census and Population Simulations/ Resident Data Census: Logic to indicate current location for temporary hospital transfer is revised to reflect previous retirement center location. Experience Study - Other Utilization Analysis: Report width problem fixed. 06.11.1190 ---------- File Menu - Zip now has option to upload any file accessible from your PC and send email link to AVP consultant for downloading. File Group Setup - General Parameters: Fiscal year ending month is defined. - General Parameters: When current fiscal year is incremented, user given option to automatically update entry, monthly, and per diem fees. Database - Resident Data/Utilities/Verify Resident Data/Exhaustive check: Provides names and IDs for mismatched couples. - Database/Resident Data/Utilities/Verify Resident Data/Recoveries: Provides recovery movement date. - Database/Resident Data/Utilities/Query Resident Data: Resident data report can include notes on record. Actuarial Assumptions - Actuarial Study Decrement Assumptions: Consultant can set assumptions for valuation, new entrant pricing, cash flows, and FSO estimate. - Amortization Decrement Assumptions: Consultant can set different assumptions for amortization of entry fees. - Life Expectancies\Amortization Life Expectancies: User can select and store alternative amortization life expectancies as well as input their own. - Life Expectancies\Individual Life Expectancies: User can print life expectancies for baseline, alternative, and amortization actuarial decrement assumptions. - New Entrant Assumptions: Capability to analyze and set contract selection distribution. - New Entrant Assumptions/Set Assumptions: Capability to insert assumptions based on experience data. - New Entrant Assumptions/Double Occupancy Percentages: Table of experience includes unit square feet. Financial Assumptions - Occupancy and Allocations/Average Number of Residents: Option to automatically insert changes in ILU occupancy when open-group simulations are rerun and adjust allocations. Financial Statement Parameters - Prior Actuarial Valuation Data: User can store and display liquid reserve ratio (“LRR”) from prior actuarial valuation. Population Simulations - Resident Data Census or (Database/Resident Data/Utilities/Create Census): Table display by permanent or current care level. - Resident Data Census/Print Census by Age Distribution: Table shows percentage distribution for attained age. - Resident Data Census/Print Summary Census: First person unit types shows FORCAST defined unit codes for easy reference. - Amortization Calculation: Model correctly handles layering when a non-contingent refundable contract is followed by a contingent refundable contract. - Financial Subsidy Projection: Default Federal Tax rates updated to 2003, but any previous values must be manually revised. Financial Statements - Projection Statements/Financial Statement Reports: Report generator feature set includes minimum and maximum values and adds extension (copy, constant absolute change, and constant percentage change) of values in multi-column constant. - Projection Statements/Financial Statement Reports/Edit Reports/Utility: Capability to print report definitions. - Advance Fee SOP 90-8/ Amortization Reports: Table 9.6 shows all residents who may receive refund > $0. - Cash Flow Statistics: Table 8.6 shows distribution for values of select cash flow statistics such as entry fee receipts, cash balances, and debt service ratios. - New Entrant Pricing/Prepaid Medical Calculation: Multi-tasking screen that estimates prepaid medical costs. Report Tables - Comparative Statistics: Table 8.5 that shows comparative statistics is updated for final 2002 and prelim 2003. What-If Adjustments - New "Zero out future values" checkbox that sets all values to $0 for selected items. 06.11.0167 ---------- File Menu - File group Zip (compression) capability allows the user to automatically store file groups for backup, upload (provided user has Internet access) and FTP to their AVP consultant or send internal email notification to their IS department, and unzip or delete previously zipped file groups. File Group Setup - Fiscal year ending month is defined along with current fiscal year. Database - New verify data routine to identify user-defined outliers for resident financial data. - Exhaustive check provides names and IDs for mismatched couples listing. - Recovery verification provides recovery from and to dates. Experience Study - User can set starting month for historical utilization reports to be other than community's fiscal year and report will show subsequent 12 months. Actuarial Assumptions - Actuarial decrement assumptions for valuation/new entrant pricing/cash flows can be set differently from those for entry fee amortization. - User can store and select different FORCAST generated life expectancies for use in amortizing entry fees. - New Entrant Assumptions/Set Assumptions screens provide ability to insert assumptions for the open-group population projection based directly on the results of the historical experience analysis. - New Entrant Assumptions has new 'Contract Distribution' item that shows the percentage of new entrants that select various contract options. Results are contained in Table 1.4. - Double occupancy experience table shows unit square footage for reference. Financial Assumptions - Values for average number of residents can automatically be inserted from results of open-group population projection. Financial Statement Parameters - No significant changes. Population Simulation - Current census Table 0.1.2 shows percentage distribution for attained age across all levels of care. - FnF default federal tax rates are new 2003 values. Any previous values will not be overwritten until user edits and saves. - Amortization calculation correctly handles layering for situation where a resident with a contingent refundable contract follows a resident with a non-contingent refundable contract. Financial Statements - Report generator feature set includes (1) minimum and maximum selection for values in specified rows and (2) multi-column constant extension of values by same amount, or fixed constant change, or fixed percentage change. - Report generator utility option prints line item definition details for current report, or last prior valid report. - New standard amortization Table 9.6 contains listing of all resident with a potential to receive an entry fee refund greater than $0. Report Tables - 2002* preliminary results have been added to comparative statistics screen with results for fiscal years 1999, 2000, and 2001. Miscellaneous - More options for report viewer font size. - Abend viewer allows user to copy (for saving) or print abend information; this information includes FORCAST version, operating system, and file group. - Help support document includes latest staff additions. 06.11.0137 ---------- File Group Setup - Password security has been added to allow user to restrict access to certain screens within a file group by use of password. Also, the user can set up system to deactivate password security. Database - New verify data routines provide information for matching residents with contingent refundable contracts and finding outliers for resident's net worth data. Information about historical occupancy by level of care and apartment turnover can be stored with file group. - Movement code 6 provides capability to exclude a portion of entry fee from amortization in situations where the specified amount is moved to a special reserve. Experience Study - New historical utilization reports contain an estimate of apartment turnover based on resident movements and show number of permanent and temporary transfers to assist in verifying completeness of database. Actuarial Assumptions - User input of life expectancies for use in amortizing entry fees has been added as an option. - Refund provisions can be set to exclude a portion of second person entry fee from scheduled reduction. Financial Assumptions - The tables 3.x that summarize annual amounts for other revenues, operating expenses, and capital expenditures can optionally show totals for all years selected. Financial Statement Parameters - No significant changes. Population Simulation - Population flow methodology for projecting withdrawals by couples has been revised. The previous method (not recommended) is available by selecting the legacy option if need to match with previous projections. - Amortization options allow user to specify whether to ignore amortization limit of amount that is subject to refund and apply either user-input or FORCAST-generated, community-specific life expectancies. - New FINAID-in-FORCAST (FnF) screen that projects resident financial subsidy liabilities is available for activation by obtaining password after payment of one-time activation fee; password allows user to restrict access to this screen. The projections allow users to hide resident identifiers. Financial Statements - Table 5.1 allows user to solve for pricing surplus where expenses have been increased by x% and to add incremental revenues to calculation for complex contract revenue provisions. - Alternative Table 5.1 contains results of ETS (Executive Task Screen) that solves for the cost-of-capital interest rate so that the actuarial surplus for new entrants equals 0%. This rate is used to generate "open-group" valuation results that reflect the surplus associated with new entrants' fees in the actuarial valuation of current residents. Report Tables - Screen that allows the user to compare the results of their actuarial data in current file group with 24 statistics from our client experience for fiscal years ending 1999, 2000, and 2001 is new. - Inactive screen nodes have been set up for automated printing of all standard report tables for a comprehensive actuarial study and future service obligation calculation. 06.11.0104 ---------- Actuarial assumptions - Life expectancy table (1.3) prints on 2 pages per gender if necessary. Financial Statements - Key assumptions listing on financial tables shows range in interest earning/discount rate if they vary in future years. 06.11.0102 ---------- Miscellaneous - Computation progress status bars have been changed to continuous to replace discrete progress bars for selected calculations that require significant computation time. 06.11.0101 ---------- File Group Setup - Baseline inflation and interest rates are locked after initial file group setup. Interest earnings and discount rates can now vary by year. To edit, user must go to new screen, Interest and Inflation, that is located in the Financial Statement Parameters node. Database - New utilities option provides Search and Replace capability for records selected by user-defined filters for all data fields. Several Replace operations are available that depend on the type of data field, such as remap, add, subtract, multiply, divide, and replace. Actuarial Assumptions - Inflation limits for annual and lifetime monthly fee increases (screen Inflation Limits in node Actuarial Assumptions) have been temporarily deactivated for future enhancements. Financial Assumptions - No significant changes. Financial Statement Parameters - Depreciation screen for use in customizing GAAP financial statements has been added to the Financial Projection Adjustments screen. - Screen for input of baseline interest and inflation rates by year is new. The interest rate column applies to both earnings and present value discounts. The baseline inflation section accepts input values and stores them, but they are not currently used to change values in the model. Population Simulation - Database census creation has 3 new report sort display options that show resident names and monthly fees that are to be paid by level of care. - The entry age distribution can be varied by contract group. - Initial display for amortization calculation settings now shows "Run amortization" through date without having to scroll to see/change these settings. Financial Statements - Table 4.1 (actuarial valuation) shows liquid reserve ratio in item (9). - New Table 5.5 contains results of ETS (Executive Task Screen) that calculates prepaid medical expenses. System handles two popular methods and allows users to set entry fee deduction and derive monthly fee amount or set monthly fee deduction and derive entry fee amount. Advanced features include calculation of prepaid amounts by unit type and optional adjustments to reflect gross revenues instead of net costs. 06.11.0084 ---------- File Group Setup - Print Input Assumptions format matches input screens and facilitates verification of assumptions. - Input to specify fiscal year ending month for proper timing of certain revenues and expenses has been added. Database - Database query capabilities have been enhanced to allow user-defined fields and financial data fields. - Database query tables allow customized reporting - choosing fields, sort order, totals and averages. - Export selected data or entire database to ASCII file. Actuarial Assumptions - Two sets of decrement assumptions can be defined and used for different contract types (entrance fee and rental frequently have different movement patterns). Financial Assumptions - Occupancy and average number of residents can be extended backwards. - Debt Service can handle more than three series, assigned names, specified timing of payments, scheduled or unscheduled payments, and cash sweeps. - Bond Proceeds screen added to hold month, day, and year and amount of future bond proceeds. Financial Statement Parameters - Current Balance Sheet Data has indicators to define beginning cash balance, actuarial balance sheet items, and GAAP balance sheet items. - Current Balance Sheet Data can be used to define items for use in creating customized GAAP statements and has four options to define methods for defining future values: inflation, amortized, percent of specified items, and ad hoc. Population Simulation - Open group simulation includes census count indicator. - Open group simulation can be run up to 51 years and 500 iterations. Financial Statements - Table 4.1 Expanded has been added that generates detailed closed group runoff statistical report for actuarial valuation. - A report writer feature has been added with templates to customize sources and uses, GAAP statements, projected CCAC ratios, and other financial reports. Options - The ATM (Automated Task Manager) is now the standard interface. The button-mode interface option has been removed. - ATM auto expand feature operates so that When a main tree branch is opened, all sub-branches open and any other open main branch is closed. Printing - The viewer screen can now display multiple reports with options to cascade display or tile horizontally and vertically. - Arial Monospaced font is installed and INI setting "printer_fontname=Arial monospaced" is set. - INI setting "printer_fontsizemode" is ignored.