McHenry Times

McHenry County Mental Health Board met Jan. 21.

Here is the minutes provided by the board:

I. CALL TO ORDER - Sam Melei called the meeting to order at 5:06 p.m. Roll Call was taken.

II. PUBLIC COMMENT – None.

III. APPROVAL OF MINUTES - FOR ACTION 

Tracy Champion motioned to approve the Minutes of the November 19, 2019 Finance and Audit Committee Meeting. Paula Yensen seconded. A VOICE VOTE WAS TAKEN. All in favor. Motion carried.

IV. TREASURER'S REPORT - FOR DISCUSSION / RECOMMENDATION 

A. Fundware Report - Jane presented the Treasurer's Report for the Period Ending November 30, 2019 (V2) mentioning that Staff found today that an employee was added to health insurance, resulting in an increase of roughly $3,600 expense in the FY19 reports. This change had not been presented prior to packet publication. The Committee can approve the Report subject to this adjustment thereby allowing the Board to approve the corrected version.

Differences noted: 

Accounts Receivable now includes Receivable for Return of Unspent 

Prepaid Items includes $6,500 for Foundant for FY20 

Due to County General Fund includes Health Insurance and IT amounts that were due 

Due to County General Fund and Fund Balance will change by the roughly $3,600 

Note: When the County does their posting for the $61,000 Due to County General Fund they will post to Cash instead. MHB believes the “Due to” is more appropriate, since cash is still in MHB’s bank at 11-30-19. 

Pp. 5 - Changes: Payroll Accrual for end of year (salary and benefits), Utilities and Legal Services (3 months’ worth). 

Pp. 6 - With final payments made to providers and MHB has recorded unspent, most agencies will be at or close to 100%. Any Grant or POP had to return funds if unspent. Transitional Care/Med Support is negative due to Return of Unspent in November. 

Pp. 7 - FFS Report - Jane explained the comparing of Unused on this page vs. Unused on Reconciliation report. 

Pp. 11 – As example, Rosecrance has similar instance of unused reconciliation figure 

Pp. 12 - YTD column and Projected column (actual at this point) are both negative $2.9M Jane mentioned that Pp. 4 shows the $2M as change in Fund Balance for the year. This number will also be at the bottom of Pp. 6 and illustrates how it all ties together. Scott noted that this was planned due to debt payoff. 

Paula Yensen motioned to recommend approval to the full Board of the Treasurer’s Report for the Period Ending Period Ending November 30, 2019 (V2) with the revision of $3,600 noted. Seconded by Tracy Champion. A ROLL CALL VOTE WAS TAKEN. Tracy Champion – Yes, Paula Yensen – Yes, Sam Melei – Yes. All in favor. Motion carried.

Moving on to December, the first month of FY20--there is never a lot of activity for the first month of the fiscal year.

Pp. 13 – Current Property Tax Receivable was noted, Due to County General Fund has changed due to IT transfers. Health Insurance cash transfer has yet to be done. 

Pp. 14 - Renewal for Insurance was within $205 of budget 

Pp. 15 - no payments to agencies have been made yet. Scott noted that with implementation of DocuSign work that used to take through March has been streamlined and automated. Jane noted that the entry being made for November will carry forward to December. Tracy Champion motioned to recommend approval to the full Board of the Treasurer’s Report for the Period Ending December 31, 2019. Seconded by Paula Yensen. A ROLL CALL VOTE WAS TAKEN. Tracy Champion – Yes, Paula Yensen – Yes, Sam Melei – Yes. All in favor. Motion carried.

B. D365 Comparison Report - Under Development 

D365 Comparison Report for the Period Ending November 30, 2019 

Scott noted that the title on the publically posted Agenda was intended to make clear that this is not an official report and for comparison only.

Jane reported on this Comparison Report: 

Pp. 16 - this is for November 30, 2019 and mimics administration cost page, first D365 expenses for current month, then Fundware for current month, differences and YTDs as well as variances. 

MHB Staff have entered accrual for Payroll for end of year, the County has not yet entered theirs. This will work itself out once the County has entered their work.

Lines that have a variance are related to Personnel and Health Insurance. One exception is for an entry submitted for correction. All should be fine once County Payroll for year is posted.

Pp. 17 – Jane noted that column headings should say Revenue and Expenses not just Expenses and this matches other format. Timing differences were noted.

$73,000 of variance in Administration matches the total on prior page. 

$64,000 in D365 Behavioral Perspective was broken out as separate line item in D365 but not in Fundware.

D365 Comparison Report for the Period Ending December 31, 2019 

In order to make changes to Accounts Payable in Fundware it would mean revising Fundware. There being no support for this system this practice allows for review of the new system. The plan is to continue to have these reports in the Finance Packet for comparison.

V. OLD BUSINESS - FOR DISCUSSION / RECOMMENDATION / APPROVAL 

A. D365 Update 

Jane reported that MHB did do another update. AKA will be coming to the County for another training. This will increase level of knowledge for all County Staff having issues. The AKA approach to training was to provide basic training to certain staff. MHB Staff will continue to build their skills in reporting.

VI. NEW BUSINESS - FOR DISCUSSION / RECOMMENDATION / APPROVAL 

A. County Year End Audit Request 

Scott asked for item to be included for conversation. MHB elected not to go out for independent audit but that doesn’t mean the MHB does not get audited. The MHB fund is included in the overall County Audit on an annual basis. The last independent audit was completed for 2016 and was completed in FY17.

Jane illustrated the County Audit process requirements by reading a list of items requested:

• Providing summary of all leases

• Bank accounts not with County Treasurer (none)

• Any audits by State agencies (none)

• Any construction in progress (none)

• Reconciliation of Petty Cash

• List of major contracts

• List of Provider contracts

• Administrative Operation related contracts

• Schedule of Occupants

• Updated policies related to financial audits and funding policy

• Purchase orders

• Acknowledgement that MHB had reviewed Revenue & Expenses

• Reconciliation of software spreadsheets related to D365

• List of Major Acquisitions, Disposals, Depreciation detail

• All Expense and Revenue reported

• New Debt issuance

• Verified Annual Revenue

• Verified Annual Expenses

• Outstanding Return of Unspent

Scott reiterated that the MHB is a part of the Annual County Audit process.

B. FY19 Provider Reconciliation 

Scott reported on the FY19 Provider Reconciliation. There has been substantial improvement in this process and the outcomes. There was only one late submission with a total of only $62,000 unutilized. Scott mentioned that the Providers are to be commended on follow through and MHB Staff members: Jane and Melanie for their work in this process. Jane reviewed the Report for the Committee members.

C. Fund Balance 

This will lead into development of Fund Balance Reserve Spenddown Plan.

Jane reviewed a handout document and noted:

• First three numbers shown equal MHB’s fund balance at year end

• Think about “What do I need to get through first few months of next year?

• Put in first 5 months (LY $13M, this year $11M budget)

• Adjust for expense payments in May before receiving revenue for May

• Leaves $1.6M available and are already planning on using $800,000 for FY20

• This leaves $890,000 available

Scott: largest amount that can be included beyond the requested levy would be the $890,000 and we don’t know how much of the funds allocated for FY20 will be spent until the following year is reconciled. Four years ago we were over $3M, so this number is getting closer to evening out with our levy dollars. Funds will continue to get closer to levied funds and decisions will get more difficult as the only money that MHB has to allocate to community services and supports is the actual levied funds. Shrinking levied funds makes the MHB task more difficult.

In review of the Fund Balance tool:

• Budget Development for FY21 allocation decisions

• Jane noted that the figure being discussed is a reduced amount with the $450,000 not levied taken out

• Want to be operating with budget as close to levy as possible

• As money levels out the levy dollars will become increasingly important

New Business:

• Scott asked NWM to the February Finance Committee meeting to talk about their Charity Care

• Melanie Duran has started coursework for certification as a Management Accountant (CMA) and hopes to have this completed in about 12-18 months.

• Unallocated dollars in current FY20 include $85,000 still available in the Client Services budget without a specific use. Scott referenced transportation noting that in December the MHB had a $14k billing from Kaizen Transportation for their transportation program. The number of rides will be capped in order to control this; however, discussion should be held to see if rides are justified so as to consider a formal budget allocation move to the Client Transportation line for the $85,000. Because of the McHenry Township issues of possible transportation losses, the MHB may be affected. Scott will put some information together for review.

• Paula noted that point-to-point transportation is being discussed by the County as well.

VII. PUBLIC COMMENT – None.

VIII. ADJOURN 

Paula Yensen motioned to adjourn. Tracy Champion seconded. A VOICE VOTE WAS TAKEN. All in favor. Motion carried. The meeting adjourned at 6:12 p.m.

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