McHenry Times

McHenry County Mental Health Board Finance and Audit Committee met April 20.

Here is the minutes provided by the committee:

Committee Members present: Tracy Champion, Ray Lapinas

Committee Members absent: Rachel Boldman, Adam Carson, Paula Yensen

Others present: Scott Block, Jane Wacker, Terry Braune, Melanie Duran, Pat Peterson and other interested parties

I. CALL TO ORDER – Ray Lapinas called the meeting to order at 5:00 p.m. Roll call was taken. As a quorum was not met, no action could be taken during the meeting.

II. PUBLIC COMMENT – none.

III. APPROVAL OF MINUTES - FOR ACTION

Approval of the Minutes of the March 16, 2021 Finance and Audit Committee Meeting will be delayed until the May Finance Committee Meeting.

IV. TREASURER'S REPORT - FOR DISCUSSION / RECOMMENDATION Jane provided a review of the Treasurer's Report for the Period Ending March 31, 2021. Highlights included: Balance Sheet Governmental Funds Comparison D365 V3 to FW V3 at 11/30/2020.

Pp5 – County had made the entry for the end of year taxes and payroll accrual $10M in FY 20 levy to be collected in FY21 and the ending fund balance is now correct

Pp6 - Health insurance is December thru February, membership dues includes HCCA, Network Training includes movie subscription “My Ascension” suicide prevention, training registration is NATCON Conference, and CMA Part 2 exam and CPHQ Review training for Compliance Coordinator Telecommunications is higher for quarterly fiber line posting Maintenance line higher for HVAC renewal agreement Legal services included senior services, network marketing and COVID Call I Center space use Snow removal is at 143%+

Pp 7 - Horizons WON is high, medication support usage low, the budget was reduced for next year. Clearbrook is only for December and January, HOS is low, for December – February. These underutilizing programs will be discussed later.

Pp. 8 – Property Tax Revenue YTD has been decreased, rest has been moved back to FY20, recognized as year-end.

Pp. 9 - GEFCC underutilized behavioral integration dollars as agreed due to FTE open staff position.

Pp. 10 - NISRA has seen a significant uptick in clients returning and are confident in utilization of funds.

Pp. 11 - Rosecrance Mobile Crisis Response (move of Crisis Line to Rosecrance) eligible to receive up to $125k per quarter, $26k was requested for the first quarter. This will predict an underutilization of these funds. MHB Staff will watch and deal with this later. Proposing using full $900k of current fund balance in the 2022 budget, as these unutilized FY21 dollars would roll over to be eligible for FY23.

Pp. 13 - Jane noted Grants to Agency’s or unallocated shows $88 is really $25k less and are waiting for Network Marketing adjustment to be done by County by next month’s report.

The bottom line is $17k unused, if take away items shown over the cap, that would be $178k added back in and the excess for Rosecrance, a large amount unutilized.

2021-05-18 Committee Approved

Ray asked about Pp. 12 - Thresholds FFS utilization. Scott recapped previous numbers for Thresholds FFS utilization: FY19 $415k; MHB provided a budget increase and actual expenditures were $491k FY20 allocated $515k increased to $623k and they used $552k of it. They were on upward projection pre COVID. Budgeted $625k this year and reallocated $10k to other programs. Since then they have stopped all new intakes and are working with the Medicaid redetermination process. Their CCBHC discussion would allow for funds to be used for CCBHC development, if not MHB can consider a contract amendment in the 3rd quarter.

Pioneer Center PADS Case Management and HOS Case Management have shown underutilization. No significant financial issues have been reported at this time so there is no reason to shift these programs to grants.

Pp 14 - 11/30/2020 D365 report compared to Fundware, both financial systems now in agreement for FY 2020. The bottom line fund balance is ok. Property Tax Receivable was modified to reflect the outstanding for FY20 plus taxes to be collected in FY21, on next page. The rest is what changes the fund balance to match the MHB’s.

Ray questioned Turning Point’s over-utilizing FFS; Scott noted this is due to adjustments in court procedures taking longer to do services. If there are over utilizations, MHB may be able to use underutilized funds to provide Turning Point with additional funds.

V. OLD BUSINESS - FOR DISCUSSION / RECOMMENDATION / APPROVAL A. Vendors/Categories pre-approved for check release

Jane reported that last month’s report identified where staff were to hold checks but did not. This included vendors: Alpha Media (already in system), Baldwin Web Design (Board approved website design and contract), EMK (entity used before with independent contract agreement); Segal (done as P.O. by County, already in system and was not triggered). Services, Inc. of IL has a funding agreement. Steps have been implemented so this does not occur again.

VI. NEW BUSINESS - FOR DISCUSSION / RECOMMENDATION / APPROVAL A. FY21 Fee For Service Projections

Projections were reviewed for DD and FFS scenarios. The State has increased rates for DD services, MHB suggests they continue to allow FFS to Grant Conversion through 2nd quarter but for the 2nd half do away with conversion and increase rates.

Melanie reviewed FFS Projections using different scenarios ranging from $2.8M to $1.8M. Scott noted United Way’s reduction in budget. Easily $150k in mental health programs could be funded by MHB. Noteworthy is that agencies are more worried about next year’s funding. It is reasonable to assume there may be underutilized dollars this year, MHB must perform due diligence this year and watch for next year’s shortfall.

Ray asked if there were programs not funded this past year that the Board could go back to – one such program was an increase for Respite, another was Service Inc. These will go to the Board for approval at $70k. A third was The Break, now being funded for $12k. The MHB is also working with law enforcement for jail discharge planning and programs should they want to provide such programming.

B. Capital Funds Request

O&A Capital Funds Request Letter and the MHB Capital Funds Request Policy were provided to the Board within the packet. MHB Policy allows agencies to submit requests for capital funding and will evaluate these on a case-by-case basis as funds are available if there is a perceived need.

Regarding the DocuSign request, Terry noted that the agency experiences great difficulty getting signatures back to O&A.

Currently, MHB has about $99k unallocated in the budget, about $70k will be approved this month. Laptops purchase of $12,440 would qualify for capital funds requests, DocuSign would not but can be considered as reallocation of any unutilized funds. Due to no quorum, this decision will move to the full board for discussion and approval. With this request, the Board would be approving $82k of the $99k available.

2021-05-18 Committee Approved

C. FY22 Draft Budget Forms

Scott provided the first review of budget forms modeled off of previous years:

i. FY22 Org Chart DRAFT – shows Terry, Deputy Directory, taking shared but primary supervision of accounting staff giving Melanie a year to settle into her new position.

ii. FY22 Highlights and Goals DRAFT - FY21 Highlights: CARF, 3 year Plan, Crisis Line transfer, Spanish speaking MAT services, SAMHSA GAINs Center Train-the-Trainer.

FY22 Goals: maintain access to comprehensive network post-pandemic, support, stabilize, and expand DD services, monitor legislation and policy impacting the network, establish medically-managed detox unit, promote McHELP relaunch.

iii. FY22 Performance Indicators DRAFT – identifying dollars allocated, work plans audited (add a footnote to report: reason for reduction of work plans), the measureable outcomes include baseline measures to compare with national numbers, access to trainings, satisfaction, evidence-based practices. FY20 provided an increase in trainings due to Zoom. Of note: 2021 projected numbers were input last May. iv. FY22 Potential Budget Reductions DRAFT - states no further budget reductions are expected due to fiscal diligence and responsibility shown in these past few years. Any reductions would be taken from client service funding.

v. FY22 Alternative Service Delivery DRAFT - using County functions would save about $16k.

D. FY22 Draft Budget Review

Scott sent out the drafts to all members ahead of time and walked the Committee members through the draft budget displayed on the screen. Not knowing what will happen with American Rescue dollars and SAMHSA grants does not translate into the dollars coming into McHenry County. Review included: Personnel with a slight reduction in overall wages as two staff retire, Healthcare premiums were budgeted for full family benefits for new hires, MHB Administration include salaries, dues, membership, legal services, etc. is at 13% of the budget. Telecommunications internet and cell phone were broken out this year. Computer Program Maintenance will be explored, a reduction was planned for Legal services and Consultant Services, Computer leases ($22,500 is a one-year fee in FY21 for the initial year of a 5-year lease of MHB staff computers, laptops, and monitors, not needed in FY22), Computer technology and equipment (including conference room upgrades (FY21) and upgraded security cameras (FY22)), Administration has a $30k projected increase in this section.

Transfers Out include County Maintenance IGA and County IT IGA.

Occupancy Costs budgeted on past utilization include maintenance of a 30k square foot building. Client services, direct to provider hold until end projected is about $126k more available this year. MHB managed dollars show a reduction of $40k due to Psych loan program (Reduced Psych Loan Reimbursement and Medication Support, also includes Care Track, Network Marketing, Trauma Informed Care, McHELP Mobile App).

Community Funding Provider Managed – Overall a $40k reduction, this area includes individual Small Contracts, A Way Out program, Translation Support, Kaizen (slightly reduced due to telehealth), The Break $12k and Horizons WON funding were added in this year. The Medication Support Grant has gone underutilized over the years so has been wiped out.

The Total Expenditure Budget: $11,454,985; the revenues to match are listed with a projection of decreased interest income. The other significant revenue stream is occupancy revenue which was kept flat for next year at $92k in tenant revenues. A market analysis was conducted last year to ensure the rate was still fair. The Tax levy consistent with last year which would be $10.450M and the Utilization of Fund Balance of $900,000 in fund balance gets this to the $11,454,985 which breaks down to 13% administrative costs and 87% community-based services. Using the full $900k in the budget this year is justified. $800k of fund balance was budgeted to be used last year. Overall the budget is only $75k more in FY22 than in FY21.

VII. PUBLIC COMMENT – None.

VIII. ADJOURN – The meeting adjourned at 6:26 p.m.

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