WVRHEP Finance Committee Minutes

3/17/03

Voting members in attendance:  David Hughes, Bobby Brown, Gaye Mitchell, Malinda Turner, Jim Welshonce, Parr Thacker, Steve Smith, and Bill Shires.

 

Other Attendees:  Ann Reno, Ron Carlson, Lora Atkins, Judy Koehler, Sharon Hanna, Chuck Conner, Jacquelyn Copenhaver, Hilda R. Heady, Georgianna Tillis, Robert Blake, Sonnie Strader, and Margaret Novacich. 

 

Meeting was called to order at 12:35 pm.  Margaret noted there was a quorum present and business could be conducted. 

 

Approval of Minutes - There was a correction to Page 3 of the November minutes.  The word “in-king” was corrected to “in-kind.”  The minutes were approved. 

            There was a correction to Page 3 of the February minutes.  The statement “It is recruitment.” was changed to “Is it recruitment?”  The minutes were approved.

 

Legislative Report – Hilda provided an update on the legislative session this year.  The community line item funding for RHEP did not receive the 10% Governor’s budget cut.  The schools portion of the RHEP funding did receive the cut. 

            Hilda also reported on discussions with Chancellor Mullen regarding RHEP funding.  The Chancellor has indicated he will “sweep” any fund balances in the RHEP program as of the end of the 02/03 fiscal year.  He did not specify where these funds will be utilized.  Bobby expressed concern that the RHEP funds were managed efficiently which has resulted in fund balances.  Chuck also stated the program should not be penalized for this.   Bobby requested the Finance Committee request clarification on the “sweep” of the fund balances.  Margaret clarified that the funding is earmarked as community support funds and can only be utilized for this purpose.  The committee discussed concerns with “sweeping” the fund balances.  Consortia have budgeted these funds and the legislation allows for fund balances.  Ron has clarified with the Chancellor that the fund balances have all been budgeted, but that has not changed his mind.  There is over $900,000 listed as fund balances in the RHEP program.  This amount has not decreased the first two quarters of the 02/03 fiscal year, so it seems we are not spending the funds we have received. 

            Margaret will send to send a letter to Chancellor Mullen from the Finance Committee requesting clarification on the “sweep” of RHEP fund balances (Motion:  Brown, Thacker).  Motion approved.  The content of the letter was discussed.  Hilda and Margaret will draft a letter and e-mail to the Finance Committee for their review and approval.  Margaret will sign the letter and list the Finance Committee member’s names below hers (Motion:  Brown, Hughes).  Motion approved.

 

Second Quarter Budget Reports – Margaret clarified there was an error in some of the reports that resulted in their Capital Expenditures and Special Project line items not being identified.  The committee was provided with this information.  The committee discussed the reports individually. 

 

Cabin Creek – Item under Fixed Expense-Other not identified.  David stated that this amount was incorrectly entered on the 1st quarter and the entry was to remove the error.  Motion to approve report (Brown, Shires).  Motion approved.

Cabwaylingo – It was noted that the consortium has spent less than 50% of their RHEP allocation as of the report date.  Parr Thacker stated that this was due to the learning curve of the new Fiscal Officer and would be corrected in the final two quarters.  Motion to approve report (Hughes, Brown).  Motion approved.

Country Roads – The committee discussed the Pharmacy & Dental Contracts listed as a

Special Project.  Elizabeth clarified that these contracts were not signed and will

not be paid this year.  These funds will be moved to another line item next

quarter.  Motion to approve report (Smith, Shires).  Motion approved.

Eastern – Motion to approve report (Brown, Hughes).  Motion approved.

Little Kanawha – Motion to approve report (Mitchell, Shires).  Motion approved.

Mountain Health – The committee discussed the Ongoing Project listed as under Special Projects.  Sonnie clarified that these funds are used for a variety of purposes.  These funds will be listed as Contingency Funds next quarter.  Motion to approve Report (Brown, Mitchell).  Motion approved.

Rivers & Bridges – Motion to approve report (Brown, Hughes).  Motion approved.

ROVER – Question regarding the emergency contingency funds.  The site Coordinator states that this line item will be reallocated into other approved line items.  Motion to approve report (Mitchell, Shires).  Motion approved.

Rural Mountain – Motion to approve report (Thacker, Brown).  Motion approved.  The

committee reviewed a request to use a portion of the $34,264 fund as Contingency

Funds under Capital Expenditures to purchase a company vehicle.  The

committee advised Judy to look at low mileage, used vehicles and present an

actual quote at the next meeting.  The request was tabled until the next meeting.    

Southern Counties – Ron explained that the credit amounts on the report due to MURC’s reverse journal entries to add the fund balance into one account.  It should be noted here that the fund balance from FY 2002 is carried in column 2 of the report.  Ron will work with MURC to correct this report for the 3rd quarter.  Southern’s GME line was higher than noted in other consortia and the site coordinator explained that this would be used to pay resident stipends.  Motion to approve budget (Mitchell, Turner).  Motion approved.

Webster-Nicholas – the amount listed as “Other” in fixed expenses will be moved to Special Project and shown as a Contingency Fund.  It was noted that nothing has been charged to the IDS Prep and Presentation line item.  Mr. Blake stated that his site is not paying for IDS at this time.  Motion to approve report (Hughes, Smith).  Motion approved.

Western – has a line item for car purchase ($14,492) under Capital Expenditures.  This was approved by the committee last fiscal year and will be completed prior to the end of FY 2003.  Under Special Projects there is $7,148 that has not had expenses charged to it.  Ms. Tillis explained that this is a HEPC Special Projects award for educational materials for service learning projects and CARDIAC.  The consortium did not complete all the purchases at the time of the award and is continuing to buy items when recommended.  Motion to approve report (Brown, Shires).  Motion approved.

Winding Roads – Motion to approve (Smith, Mitchell).  Motion approved.

 

A motion was made that each consortium be required to put RHEP funding in a separate account.  This motion was tabled for discussion on Policy 2003-01 – Accounting for RHEP Fiscal Transactions.

 

FY 2003-2004 Budget Requests – Margaret reported that three consortia did not submit their budgets by the deadline.  These were Cabin Creek, Mountain Health, and Southern Counties.  Most were due to their Boards not meeting to approve the budgets.  The committee was concerned that the deadline was not met and questioned what process has been used in the past.  The committee does not have a process to handle this.

 

The committee discussed the budget requests individually.

 

Cabwaylingo – looks like site coordinator is taking a pay cut.  Mr. Thacker states that the lead agency will make up the difference between the amount shown on the budget and his actual salary.  The committee requests that this difference be shown as an in kind contribution.  Motion to approve budget (Brown, Mitchell).  Motion approved.

Country Roads – The committee requested an itemized budget be submitted for use of the $41,702 as Capital Expenditures.  It was announced that the consortium would be combining with the Rural Mountain Consortium on 6/30/03.  The committee questioned whether this would result in a cost savings to either consortium.  The site coordinators reported that there would be no cost savings.  Margaret explained that under the revised allocation policy that developed under the method selected by the Finance Committee at the February meeting, fixed funding is allocated by Site Coordinator and variable funding is allocated by student numbers, so as these will not change under the merger, there will be no allocation savings from this merger.  There budgets would not change other than to be combined.  The main reason for combining is to add Mercer County as well as be able to cover the area and provide better services for students.  Motion to approve budget (Smith, Mitchell).  Motion approved.

Rural Mountain – The committee requested an itemized budget be submitted for use of the $$23,539 as Capital Expenditures.  Motion to approve budget (Hughes, Thacker).  Motion approved.

Eastern – Margaret and Malinda explained that the $11,000 credit shown on the budget request is grant income to the consortium.  Ron Carlson will require all consortia to show grant income as well as in kind from the lead agency on their reports.  Motion to approve budget (Smith, Hughes).  Motion approved.

Little Kanawha – request to purchase an intra-oral camera to replace the 8 year old camera that is broken.  The committee questioned why this was being paid from RHEP funds.  Margaret reminded the committee that the initial purchase of this camera was a Vice Chancellor Special Projects request and that the camera is shared among consortia when requested.  Motion to approve budget (Hughes, Mitchell).  Motion approved.

Rivers & Bridges – Motion to approve budget (Turner, Hughes).  Motion approved.

ROVER – Motion to approve budget (Brown, Hughes).  Motion approved.

Western – Motion to approve budget (Brown, Mitchell).  Motion approved.

Winding Roads – Motion to approve budget (Hughes, Shires).  Motion approved.

Webster-Nicholas – The committee requested an explanation of the “Network Initiative” line item.  Mr. Blake explained that this is to assist in the costs associated with Camden-on-Gauley Medical Center working as a network with Summersville Hospital and other facilities in the two counties.  This funds projects that all the facilities can participate in.  Motion to approve budget (Turner, Hughes).  Motion approved.

 

Closing Business - Ms. Heady then broke into the committee meeting and stated that Mr. McCutcheon was ready to begin the Advisory Panel meeting.  The committee discussed a request from Ron Carlson to send the Little Kanawha Consortium audit out for bid.  The committee took no action on this.  Ron was advised to proceed with this as long as Little Kanawha is in agreement.

 

Agenda items 5 and 6 will be sent to members by e-mail for discussion and vote.  Agenda item 8 was tabled until the May meeting.  The Finance Committee meetings are requiring more time than allotted each month.  The next Finance Committee meeting will be held from 10:00 a.m. – 2:00 p.m. on May 19 (Motion:  Brown, Mitchell).  Motion approved.

 

The meeting was adjourned at 2:30 p.m.