MICHIGAN PROTECTION AND ADVOCACY SERVICE, INC. BOARD OF DIRECTOR S MEETING. December 17, 2013

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1 MICHIGAN PROTECTION AND ADVOCACY SERVICE, INC. BOARD OF DIRECTOR S MEETING December 17, 2013 Directors Present: Kate Wolters via phone, Pam Bellamy, John McCulloch, Donna DePalma, Terri Land, Tom Landry, Jane Shank Via phone: Ron Bush, Mark Lezotte, Kathy McGeathy, Michelle Huerta, Veda Sharp Directors Absent: Stoney Polman, Selena Schmidt Staff Present: Elmer Cerano, Michele Camilia, Chris, Michelle, Elham, Mark Chris Guests: Mike Foster and Tina Peters, Plante & Moran Via phone: Gerry Provencal, Kelly Riegel-Green I. Call to Order II. Introductions III. Agenda The agenda was presented for review. MOTION BY Tom Landry TO APPROVE THE AGENDA AS AMENDED. SECOND BY Donna DePalma. MOTION PASSED UNANIMOUSLY. IV. Minutes The Board reviewed the minutes of September 17, MOTION BY Tom Landry THAT THE MINUTES OF SEPTEMBER 17, 2013 BE APPROVED AS SUBMITTED. SECOND BY John McCulloch. MOTION PASSED UNANIMOUSLY. V. President s Report Executive Session Kate Wolters reported on the executive session that took place at the last meeting. Ms. Wolters thanked members that have sent in their reviews and comments. Ms. Wolters ask members that have not sent their reviews in to please do so by January 5. The board approved a 2% increase in salary retroactive to the beginning of the fiscal year. Ms. Wolters asked for a motion of approval since the action took place in executive session.

2 MOTION BY JOHN MCCULLOCH TO APPROVE THE 2% INCREASE IN SALARY FOR THE EXECUTIVE DIRECTOR. SECOND BY TOM LANDRY. John McCulloch asked that the evaluation form be resent to members. Kate Wolters will resend. Michele made a correction that the salary be retroactive to July 1, 2013, which is the same as other staff increases, as discussed with Kate Wolters previously. MOTION PASSED UNANIMOUSLY. VI. Committee Reports Audit Committee: Tom Landry reported the Audit Committee met prior to the board meeting with Plante & Moran auditors, Michael Foster and Tina Peters. Mr. McCulloch stated the Audit Committee is recommending to the board adoption of the draft financial statements. Michael Foster, engagement partner for the audit and Tina Peters, manager on the engagement gave their report. Mr. Foster reported that there are three documents that make up the audit: Financial report, Federal Awards Audit and the Management letter addressed to the Audit Committee. Ms. Peters walked the board through the highlights of the Financial Statement Audit and Federal Awards Audit. Independent Auditors Report - MPAS has again received an unmodified opinion to the highest level of assurance auditors can provide. Ms. Peters reviewed the balance sheet. The balance sheet total assets are 1.38 million. The statement of activities, Total revenue is 3.6 million, down $17,000 over prior year. Grant revenue for federal and state is up slightly about $40,000. Total expenses were 3.6 million which is up 55,000 over prior year. The increase in net assets was $16,000. Page 10 of the financial statements shows a fair value note was added to the financial statement. This is based on the value of investment. Page 13, schedule of activities, shows how grants are reimbursed. Federal Awards Report - page eight gives a summary of results. None were reported. For the federal awards there were no material weaknesses or significant deficiencies. Both have received an unmodified opinion. MPAS qualifies as a low risk auditee, there were no findings in the last two federal award audits, and therefore, Plante & Moran is only required to test 25% of federal expenditures.

3 Management Letter Michael Foster stated that this letter gives the opportunity to talk about anything unusual during the audit. There were no issues or difficulties encountered this year. Therefore, the letter is a boilerplate document. There were three items noted during the audit that didn t rise to a level of a finding or significant deficiency of material weakness but noted in the audit to bring to the boards attention. 1. There was an error in formula in a spreadsheet where vacation accrual is tracked. The spreadsheet has since been updated. 2. Relates to an expense misclassification allocation issue. There was a reimbursement for mileage that was misclassified. This is not a material number and something they see as an isolated incident. 3. While looking at case files and testing compliance, four cases were not correctly documented in the file. There were no misappropriations of funds, but are documentation items that would need the attention of management. The issue is being addressed and additional training will be provided to staff so cases are correctly documented. Tom Landry noted that there is a formal review process for case closure. Once a case is at the closing stage, these errors would have been caught. The cases were open cases that were audited and the discrepancies found. On issue #1, that was a clerical error. Tom Landry noted that after the Audit Committee presentation this morning, staff was asked to leave the room so the committee could ask the auditors if there were any other issues the board should be aware of. There were no other issues from the auditors. Tom Landry restated that the Committee reviewed the draft with the auditors and recommend that the drafts be approved. Tom Landry MADE FORMAL RECOMMENDATION TO THE BOARD THAT THEY APPROVE THE DRAFT AUDIT. SECOND BY Michelle Huerta. MOTION PASSED UNANIMOUSLY. Tom Landry reported that the 990 is in draft form and will coming to the board. The draft 990 will be ed to the board and members will be asked to acknowledge their receipt so that it may be finalized and filed. Tom Landry stated that there is a procedure that the board interview auditors on a regular basis. It has been three years since the last review. Tom Landry asked the board to consider getting a proposal from Plante & Moran to extend their engagement for 2 more years. If the proposal is accepted within a competitive range of what we currently pay them, a recommendation will be made to the board that we continue with our auditors as opposed to going through the competitive process again this year.

4 MOTION BY John McCulloch THAT A PROPOSAL BE SENT TO PLANTE & MORAN TO EXTEND THEIR ENGAGEMENT FOR ANOTHER TWO YEARS. SECOND BY Mark Lezotte. Mark Lezotte asked that we would do this in January so that the Audit Committee would be able to review and make sure it is competitive. At the February meeting we would take final action to approve the extension or if not happy with the quote to do something different. The audit will be put on the agenda for February. MOTION PASSED UNANIMOUSLY. VII. Executive Director Report Elmer Cerano reported on the organizations budget. The Finance Committee budgeted for the worse case scenarios due to the possible government shutdown and sequestration. The budget had a 7% reduction for 2014 which was built in. Elmer Cerano gave an update of the PABSS program. FY 13 grant award was modified to $216,000. $80,000 will be written in to the 2014 contract. Staff Reports Elmer Cerano has asked the staff to give an update on specific cases that have highlighted the year. reported for the Employment team highlighting one of her cases. helped her client get drivers training so that he would be able to work. Chris reported on a case reported on in Mark board report. Mr. reported on his client who took her child to the doctors for a common cold which the doctor refused to treat the child because of the child s special needs. Program Performance Reports (PPR) The PPRs have all been sent out to the federal funders, ahead of our deadline. Work will begin on the annual report. The report should be produced in time for the February meeting highlighting some of the cases from the year. Essay Contest Elmer Cerano asked for volunteers to review the essays for the Ernie Reynolds Essay Contest. The review team will be: Pam Bellamy, Donna DePalma, Tom Landry and Kate Wolters. VIII. Public Comment none IX. PAIMI Advisory Council Elmer Cerano reported for the Council. The Council met prior to submission of the PPRs to complete the Advisory Council s section of the PPR.

5 One question asked was do we have any need for additional assistance from the federal government or other protection and advocacy programs from around the country. We included that over the year the board had asked the Council for advice on the issue of gun violence and mental illness. The issue is getting intense and the council may need additional assistance on how to create a real balance between protecting the rights of people with mental illness to not be forced into treatment that is not appropriate but to also advocate on their behalf to have the services that they need readily available. Michelle stated that the PPRs ask about the efforts to serve the unserved and underserved populations and clientele diversity. There was a focus on outreach efforts to attract a more diverse clientele, but not so much to get new Council members and new staff. This might be something to consider in the future when reaching out to new board and council members and staff in the next coming year. X. Committee Reports continued Public Policy John McCulloch reported for the Committee. The Committee looked at their charge as a committee. The overview will be brought to the next board meeting for approval. Chris gave an update on current bills from his report. Emergency Hotline Bill This is a program proposed by the Attorney Generals office for an anonymous hotline to be developed. It would allow any students or any one in a school setting that they suspect an individual that may harm the school environment to call this hotline and report. MPAS offered 10 amendments to the bill and most of the mental health components went through. The bill has passed out of the House. There is a provision that requires the program website to have an information and referral site listing all mental health services and supports in the state of Michigan. Issue regarding PAIMI program on the federal level Elmer Cerano reported on issues related to guns and schools. Elmer stated that we have two obligations, one; to protect their right to live in the community but have the obligation to advocate for them to be successful. U.S. Congressman from Pennsylvania has introduced legislation called Help Families in mental health crisis. The programs will eliminate funding to the PAIMI program by 85% and restrict our ability to do any systemic advocacy. The bill has been introduced in Congress. Chris reported that the agency has been in close contact with NDRN office on the happenings. The P&A system has advocated for stronger emphasis on home and community based services for people with mental illness and developmental disabilities. Congressman Murphy s opinion is that it has swung too greatly to that side. Some strategies are making sure the board is provided with correct information and talking points. Our instruction from NDRN is to get individuals calling their legislators and let

6 them know we appreciate the Congressman s efforts of bringing mental health issues to light via legislation, however, we believe that gutting this program is doing more harm than it is good. The Committees recommendation is to contact their legislator to let them know what it does to an important program here in Michigan and to not co-sponsor the bill and oppose. Chris provided information of the different Michigan delegates that sit on the five committees this bill effects. John McCulloch welcomes other board members input. We don t want to carte blanche oppose the bill, we want to show that we have some concerns based on what we have identified to preclude our congressional delegation from signing on. We want to zero in on key legislators and educate their staff. Chris stated the first step is to call your own Congressman and also the members on the committees listed. Chris will provide board members with bullet points about the specific issues. In lieu of phone calls you can also the congressional delegation. John McCulloch asked that Chris give the address on the contact information along with twitter. Chris stated the February meeting will be our legislative day. Information will be given out in January and encouraged board members to invite their legislators. Budget & Finance Tom Landry reported for the Committee. Mr. Landry noted the reports in the packet, the year end financial statements ending September, 2013, and the financial statements ending October Mr. Landry reported that the Committee discussed the Executive Director s expense report and there were no issues. MOTION BY Tom Landry TO APPROVE THE FINANCIAL STATEMENTS ENDING SEPTEMBER 31, SECOND BY Terri Lynn Land. MOTION PASSED UNANIMOUSLY. Mr. Landry presented the financial statements ending October 31, MOTION BY Tom Landry TO APPROVE THE FINANCIAL STATEMENTS ENDING OCTOBER 31, SECOND BY John McCulloch. MOTION PASSED. Tom Landry noted that expense forms have been passed out for mileage and encouraged members to complete them; they may also check the donation box on the form. XI. Old Business None XII. New Business

7 Dates for 2014 were discussed. The meetings will be held as follows: Tuesday, February 18 or 25, 2014 (will be determined when Legislators in session) Tuesday, May 20, 2014 Tuesday, September 16, 2014 Annual meeting Tuesday, December 16, 2014 Tom Landry stated that it was nice to have the staff report on particular cases. XIII. Adjourn MOTION TO ADJOURN BY Tom Landry. SECOND BY Terri Land. MOTION PASSED.