McHenry Times

McHenry County MHB Finance and Audit Committee met Aug. 21.

Here is the minutes provided by the Committee:

Committee Members present: Mike Baber, Sam Melei, Paula Yensen

Committee Members absent: Lynn Kasicki, Lesli Melendy

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

I. CALL TO ORDER- Sam Melei called the meeting to order at 5:03 p.m. Roll Call was taken. II. PUBLIC COMMENT – none.

III. APPROVAL OF MINUTES - FOR ACTION

Paula Yensen motioned to approve the Minutes of the July 12, 2018 Finance and Audit Committee. Mike Baber seconded. A VOICE VOTE WAS TAKEN. All in favor. Motion carried.

IV. TREASURER'S REPORT - FOR DISCUSSION / RECOMMENDATION

Melanie Duran reported on the Treasurer's Report for the Period Ending July 31, 2018.

Two small tax disbursements were noted on the Balance Sheet. On Packet Page 5, Admin Expenses are at 58%, a bit under budget, which should be around 67%.

Building Repair Maintenance included some repair work in CRC, A/C settings and a roof leak in the Annex. Computer Program Maintenance amount was for Policy Tech renewal and purchase of two Adobe licenses.

Scott noted Legal Services as significantly under budget, this month’s cost delved into building debt payoff.

On page 6, the Revenue and Expenditure Report, Sam noted a few agencies below 50% but nothing dramatic and that some affidavits are light on utilization. Scott added that staff have made contacts with some agencies.

On the FFS Report expected agencies are trending with higher utilization that will be maximizing funding soon: CCCS (no ability to reallocate), Clearbrook (reallocation done from underutilized services to increase WON and helping to maximize services). Scott noted that there will be no potential overbilling of additional months or any kind of set-aside, as done last year. MHB does not have the unallocated budget remaining for this. NISRA is looking to submit for potential reallocations from SASS Program to Day Treatment program and Pioneer Center hit their cap for Respite Programming and would like to reallocate underutilized non-Medicaid WON funds. Today, MHB Staff reviewed Rosecrance MH and SA FFS programs and after accounting for this month submission there may be some opportunity to reallocate funds from one program to another. MHB is working with agencies to manage funds when applicable.

Scott stated that the MHB has set August 31 as the reallocation request deadline.

Melanie noted that Turning Point is trending high but has no other program to allow for reallocation.

Paula questioned if Youth and Family Services (FKA Garden Quarter) had caught up with their affidavit submissions. Scott noted that the Agency did get caught up.

On page 13, the report shows MHB will be using $1.8 M of fund balance but this needs to be readjusted.

This includes $221,778 of FFS that is projecting over budget. After adjustments, MHB is projecting use of $1.6M of fund balance. MHB budgeted $2M of fund balance to go into budget for client services, of that projected utilization is $1.6M.

FY19 budget MHB has $1.95M for building debt satisfaction, about $750,000 dedicated to client services. So there is less, about $1M of requests over available funds. Historical FFS utilization has been used to make recommendations and underutilizing agencies are being asked to request less in the coming year

Mike Baber motioned to recommend approval to the full Board of Treasurer's Reports for the Period Ending July 31, 2018. Paula Yensen seconded. A ROLL CALL VOTE WAS TAKEN. Mike Baber – Yes, Sam Melei – Yes, Paula Yensen - Yes. All in favor. Motion carried.

V. OLD BUSINESS - FOR DISCUSSION / RECOMMENDATION / APPROVAL

A. ERP Update – Scott reported continued work on the ERP System. There will be a black out period in month of November to get all prepared to start the FY19 fiscal year. The MHB budget for the upcoming year is entered. The Purchasing system has development issues that need to come together but the budget portion seems ready to go. Jane and Melanie have been trained on the Purchasing module and have a good understanding of this.

VI. NEW BUSINESS - FOR DISCUSSION / RECOMMENDATION / APPROVAL

A. Purchasing Policy Revision

A revised Purchasing Policy (5) was included in the packet on page 14 in follow up to discussion with County last month. Revisions were made and shared with County staff. The only new language that has been added is on page 15, bullet point 1, and involves County Director of Purchasing cursory review of purchases of more than $30,000 for non-provider service bids and RFP’s. MHB would finalize for MHB Board approval.

Also, bullet point 4 provides that the County Director of Purchasing shall have two business days to respond and MHB will be final arbiter. The MHB is not giving up any purchasing power and Scott feels as though these slight revisions are demonstrating compromise with County. He added that MHB does not often make $30,000 purchases. Mike Baber motioned to recommend approval to the full Board the revisions to the Purchasing Policy. Paula Yensen seconded. A ROLL CALL VOTE WAS TAKEN. Mike Baber – Yes, Sam Melei – Yes, Paula Yensen - Yes. All in favor. Motion carried.

B. Draft Debt Certificates Series 2010-B Redemption

The Committee packet (page 17 – 19) included two documents: Final Draft Debt Certificates Series 2010-B Decision Memo and the Draft Debt Certificates Series 2010-B Resolution that will move to the County. This shows intent to satisfy remainder of the Facility debt. Jane Wacker and Scott met with County Administrator Peter Austin and Ralph Sarbaugh along with Eric Anderson, Bond counsel, for review and to notify them that the MHB Board intended to satisfy the debt. The County holds the debt, this memo directs the County to adopt a Resolution to move ahead to redeem bonds and pay off debt. The recommended motion will be read at the Mental Health Board Regular meeting to authorize the County Board to take this action as stated in the attached Decision Memo. Specific dates for pay off are being determined. The decision is subject to County approval of the MHB FY19 Budget. The Committee consensus was to recommend the approval of the Draft Debt Certificates Series 2010-B Redemption to the full Board.

C. Psychiatric Loan Recognition Program Applicant

Scott reviewed the Psychiatric Loan Recognition Program –Yovankin Decision Memo included on page 21-22 of the packet. Dr. Yovankin, a Child Adolescent Psychiatrist (serving birth to age 21) has signed a contract and has submitted all documents for MHB review to participate in the Psychiatric Loan Recognition Program through Mathers Clinic. Child and Adolescent Psychiatry is of great need to the County. Based on available FY19 budget for this program, MHB shall pay 50% of Dr. Yovankin’s current student loan balances, committing an amount not greater than $227,640 or $3,794 over a 60 month term, $45,528 annually. Each month MHB would match the payment after proof of payment made by participant. The Board may wish to review need for funds in this program. Previously the Board had approved payment of 100% of program participant’s student loan balances, however a reduction was needed due to remaining budget for this recruitment tool. Dr. Yovankin is aware of the 50% status. Mike Baber motioned to recommend approval to the full Board of the applicant into the Psychiatric Loan Recognition Program. Seconded by Paula Yensen. A VOICE VOTE WAS TAKEN. All in favor. Motion carried.

D. Vendors/Categories Pre-Approved for Check Release

Melanie presented the revised Vendors/Categories Pre-approved for Check Release form for review. Paula Yensen motioned to recommend approval to the full Board of the Vendors/Categories Pre-Approved for Check Release. Mike Baber seconded. A VOICE VOTE WAS TAKEN. All in favor. Motion carried.

VII. PUBLIC COMMENT – none.

VIII. ADJOURN –Mike Baber motioned to adjourn. Seconded by Paula Yensen. A VOICE VOTE WAS TAKEN. Motion Carried. All in favor. The meeting adjourned at 5:48 p.m.

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