MINUTES
OF THE EMERGENCY BOARD MEETING
November
22, 1999 – Anchorage & Telephonically
Called to
order: 2:10
PM
Present: Board Members: Anchorage – Sue Linn Hill, Yvonne Jacobson;
Soldotna: Esther Hopkins (telephonically), Associate
Board Member: Kelly Behen; Guests:
John Bajowski (DMHDD), Shannon Huber (MHCA), Doug Jones (Auditor-State of
AK/Dept. HESS), Valerie Raynor (MHCA), Bob Wright (Auditor-State of AK/Dept.
HESS); Juneau (telephonically): Leonard Able (DMHDD), Pat Murphy (Board
Consultant)
Not Available: Terry Barrows, Patti Egbert (line
busy), Will Hostman, Katsumi Kenaston (not able to get away from work), Beth
LaCrosse (not home, person on long distance not able to take message), Erik
Lindbeck, Emily Nusunginya, Marilyn Reeves, Don Roberts (left message on
machine), Lauren Swift, Jean Steele, Ann Shilo, Cheryl Wheat (doctor’s appt).
*Note: Less than two hours notice of this meeting likely resulted in inability
to make contact with board members and give adequate notice, ATT operator was
given list and reported back that there was no answer at many of the numbers.
John Bajowski began the discussion with background
explaining the need for this emergency meeting: As announced last week, the
auditors began their work this morning and based on their preliminary findings
and conversation with Shannon Huber (MHCA employee), and after consulting with
Pat Murphy and Leonard Abel, it was determined that several critical situations
were occurring and the board needed to act immediately in the corporation’s
best interest.
Bob Wright stated that after review of the client
account and agency operating expenses he could state that it appears agency
assets were missing, organization funds had been used for personal use, and the
client account fund had likely experienced an improper withdrawal/transfer of
funds. With the lack of computer data files or hardcopy documentation it was
impossible to determine an accurate balance in the accounts.
The agency representatives were informed that
present findings were sufficient to support a decision to involve law
enforcement to investigate potential embezzlement and theft.
Pat reiterated his recall of events last week and
supported the auditors’ findings.
John stated that Dave Wagner failed to call or show
up at the meeting this morning with the auditors. John presented a fax from
Dave Wagner that was sent at 1:04 PM today from a Kinko’s in Anchorage to John
at DMHDD/Anc. Dave stated it would be inappropriate for him to attend any meetings
as he was no longer employed by the agency. He stated that the vehicle had been
returned and agency property could be found in the trunk. He indicated that
further contact could be made through his brother’s address in Altoona PA.
There was a lengthy silence around the table and
on-line.
Sue expressed concern about the harm to agency
clients and that employees not be left holding the bag. It would be unfair to
punish anyone when the previous director responded to questionable use of funds
stating he was following the directives of and had permission from (the
previous) board.
Pat Murphy, as a consultant to MHCA, recommended
motions would be necessary to 1. Call police and 2. Begin the process of hiring
accountants to reconstruct the bank accounts.
It was stated by Bob and Doug, Pat, John, and
Leonard that it would be detrimental to close the client accounts while this
process was undertaken. It appears the client accounts have been maintained
accurately and that the payees performed their duties within accepted practice.
While some records are available, even with this
documentation, the level of work effort to reconstruct the accounts will likely
be protracted.
Esther stated she would like to be a “working board
member” and volunteered to be available to assist in this effort to the extent
volunteers can be involved. She has 25 years of accounting experience. Her
husband has similar background.
Sue stated she has done bookkeeping and other
financial management of 2 large apartment complexes and also would be willing
to help.
Pat thanked them for their generous offer and
indicated that they might well be tapped to help pending the decision of the
accounting firm that undertakes this task.
Leonard stated that the DMHDD would assist with this
necessary expense. Yvonne asked if this would require yet another budget
revision and there was laughter!
MOTION: by Yvonne, Esther & Sue
2nd, Based on initial findings of the auditors and state officials
of the review of information gathered, the Board believes it is necessary to
contact the Municipality of Anchorage Police Department and present this
information to them. Discussion: None necessary – Vote: Passed
unanimously.
MOTION: by Esther and Yvonne, Sue 2nd,
that MHCA 1. Begin immediate reconstruction of Rep. Payee accounts with Shannon
Huber’s assistance, 2. That this effort be overseen by an auditor not employed
by the state, and 3. Based on experience with the current payee client roster
that the organization continues to fulfill its obligation to these vulnerable
adults who would be severely impacted if a disruption of service took place. Discussion:
None necessary – Vote: Passed unanimously.
MOTION: by Yvonne, Sue 2nd,
that the auditor retained by the previous motion to also perform a Single Audit
of years 1997 and 1998 as required by statute. Discussion: None – Vote: Passed, no opposition.
Pat and Yvonne offered opinion that perhaps the December retreat might be premature given the new information presented today. There are very limited funds in the system available for the retreat despite commitment from the DMHDD. By postponing the in person meeting to mid-late January will allow the auditors to complete substantial work and determine financial status of agency. This does not preclude the Board from engaging in other methods of communication during this time.
Esther expressed concern that consumers will see
this as a broken promise. It was agreed that we have another Emergency Board
meeting Wed. at 5:00 PM to discuss this and the outcome of contacting the
police.
Sue, Yvonne, and Kelly agreed to do a full court
press and phone, fax, whatever to get the word out about the Board Meeting
teleconference and make arrangements with ATT for scheduling.
Meeting adjourned at 3:40 PM
Respectfully submitted by
Kelly Behen, Acting Secretary
November 23, 1999