Governor’s Advisory Council on the Blind

January 9, 2015

Smyrna Rest Stop Conference Room, Smyrna

Roll Call: Lloyd Schmitz, Chairperson, Nancy Frankl, Ken Rolph, Mariam Nabi, James Law, Marjorie Deska

Absent: Janet Brown

Division for the Visually Impaired (DVI) Staff:

Daniel Madrid, Director

Mark Ridenour, Fiscal Administrative Officer

Mary June Peterson, Senior Fiscal Administrative Officer

Guests:

Larry Byler

Janet Berry, Delaware Association for Blind (DAB)

Thomas Newcomb, Business Enterprise Program (BEP)

The meeting was called to order at 10:15 am. The minutes of the previous meeting were accepted as written.

Fiscal report:

Dan started by saying that on January 23, will meet with programmer to integrate and coordinate with First State Accounting. This is a statewide system. Mark and Mary June can access documents, and Dan and Elisha get them. Delaware Industries Blind (DIB) has a separate system, with own credit limit. Weekly monitoring reports sent to fiscal. Most state-issued credit cards are part of this report.

Lloyd thanked Dan for the fiscal reports that he had emailed. Lloyd is concerned about the timeliness for people getting equipment that they need. Lloyd did not see dates to be able to tell if things are followed up in timely fashion. Is that something we can look at? Dan said that’s part of why we are looking at electronic system. Leaves room for human error if has to go through lots of mailboxes. Electronic system—easier to look at. How long does process take? Has to go through at least 4 people, says Mark. Lloyd said DVI is in business of people and people are waiting too long for equipment. What do we need to do?

Dan said we are going to have standing contracts with some companies. That would help remove levels of approval. It would be helpful for someone from the council to meet with Dan and Judy M. (IRM) and Kevin K. (Management Services). Lloyd will write a letter to Dan requesting a meeting about the concerns of consumers who are waiting for equipment. Mariam said she will have to wait until March to get her equipment for college.

Dan said had to redo reports from past 4-5 years. All of those delayed reports have been repeated. A little late with new reports, said Mary June. Reports will be less manual when system integrated. 10 corrective actions, have fixed 7 of those. Lloyd would like to update in 6 months.

Nancy said she needs help to know what she’s looking at with these reports from fiscal. Maybe have separate meeting with fiscal.

Lloyd said concerned about DIB funds. Where are we with DIB? Dan said spent last two months looking at fiscal data, accounts receivable and payable. 2011 was profitable, and that was the last profitable year. DIB lost $1 million in revenue in 2012. Expenses stayed high. Mark said we lost orders for USDA—half a million. Fiscal year 2012--$600,000 loss. 2013--$300,000 loss, 2014—lost $300,000. Continues to operate at $300,000 loss. Running profit and loss monthly.

DIB showed a profit when there wasn’t one, because they weren’t looking at payroll. Payroll and revenues are too high based on sales. Will have to consider which departments are profitable. Jim asked who is seeking new sales? Sarah Fox is working on that. Jim asked about Del Dot uniforms—we didn’t get that contract. University of DE and Del Dot are exempt from purchasing within the state, said Lloyd. Dan said we have standing contract for promotional items, but places are not always using DIB.

Lloyd asked about accounts receivable. Mark said he can’t give exact figure because Andy is following. A check comes to DIB, clerk makes copies, paper copies of invoices go in binders, match invoice, enter into accounting system, deposit check as receivable. Binders are in numerical order by invoice number. Can run accounts receivable in computer, too. There are 5 binders, by invoice numbers. Then the checking accounts are reconciled. Fiscal does the reconciliation. The two clerks are DIB employees but they are under Mark. Mark reports to Andy through Mary June.

Janet Berry asked what’s going on. Andy is tracking reports as to what is delinquent. Mary June said we will have accounts receivable report sent to us. Changes in personnel, people out, now will focus on collections.

Lloyd asked where are they in process? Mary June needs to get us report. Dan said they can get us two reports: excel on what’s come in and one on what’s out there.

Lloyd wants to know on monthly basis whether DIB is profitable. Dan said will be audited by Neely and Spence, beginning on Monday. Last time good reconciliation done was May 2013. Not sure how long it will take for the audit, until accountant sees. Lloyd asked when reconciliation is done on DIB side. Mary June not involved in DIB and will get back to us.

Margie asked about reconciliation and that no one has done this since May 2013. Margie said look at tickler system and look at monthly to see what’s going on. Simply internal checkup on routine basis. Margie asked if that happens. Dan said yes, it is happening now.

Lost person for a year, inadequate resources, DIB management was looking at wrong things. Andy gave us positive reports. He was looking at computer system that he knew how to do. Janet said this is not proper—how can you not know about payroll. Totally unacceptable, said Janet. Janet said we need standard procedure in writing—diagram about what exactly happens. Process map how long can invoice sit there. These are peoples’ livelihoods, said Janet.

Even if every penny came in, DIB would still be down. Looking at layoffs, people will be laid off by seniority—possibly the last 10 people who were hired into DIB (more sighted people than VI).

New fiscal subcommittee, set up by Lloyd, will look at monthly reports and make recommendations. This will help to make sure VI community is not poorly affected.

Margie asked about law not being enforced about sales going to DIB. Could that help to cut back on layoffs. Dan going to legislature Sunset—county government. Need enforcement in state. Margie asked about attorney general who could help to contact people. The law doesn’t have penalties right now. It needs some degree of enforcement. Margie wanted to know about recommendation for what penalty would be—Dan said we have that idea, and will work on that in meetings. Recommend specific enforcement—a place to go where they will enforce, said Dan.

Jim expressed concern that people are going to make less money, with layoffs. DVI is supposed to be there for the blind. This should never have happened. We haven’t been operating as a typical business. All businesses do a reconciliation.

Janet thinking about balance between laying off people and quality control. Dan said will have other DVI people helping. Janet asked about trying to get grants through JP Morgan or Longwood Foundation. Dan said we are looking at grants, looking at SCORE.

Jim said someone should be out looking for new business. Lloyd said we need to look at annual audits. Dan said we will come up with internal controls.

BEP—Lloyd is still not getting reports on consistent basis. Dan doesn’t know why we are not getting reports. Mary June said she needs to get more involved. What exactly do you need? Set aside, program funds, said Lloyd. Doesn’t need operator’s report. Lloyd said needs Location 20 report, setaside, accounts 3, 5, program information—every two months. Profit and loss statements, too.

Lloyd said accounts receivable and payable are not being tracked well in BEP. Mary June said she needs to be more involved. Lloyd would like to know the process. Lloyd said some payroll bills have not been paid. Set aside—who is tracking these payments? Mark said being tracked by BEP director. Fiscal should be checking that, too. Lloyd asked how are you assuring money being put back in. Dan said it is on excel spreadsheet. Are all obligations current on payroll? Dan said he has to look. When BEP operator makes a profit, they have to give money back to program. Are all setaside obligations up to date? Setaside has been suspended, said Mark. Lloyd would like to know the process. Thomas has been asking about setaside—no one has sent him information from Dec. 2013-Jan 2014.

No one is tracking accounts receivable and accounts payable, said Lloyd. Thomas said he used to get information from Mike Williams, but now he is not getting emails about payments. Fiscal needs to be on top of this. Young is lead person on BEP.

Margie asked about things being behind and someone has been out for a long time. Can you hire a part time temp to help with things like this? Dan said we have brought in temps, unfrozen positions, hired new people. 70% of fiscal staff is new. Mark said there was a discussion about bringing someone in, but person kept hoping to come back.

Dan’s Report:

New Medicaid program approved on January 1, age 14-25 may be able to receive more support if Medicaid approved. Alainna Townsend is Medicaid employment navigator.

Principal Dawn Jackson starts on Monday. The MOU with DOE and LEAs draft is finished.

February 24 Joint Finance. What time do we need to be there? We should be there at 11:30. If going to speak, see secretary to sign up. Need 15 copies of speech. Nancy encouraged whole council to attend.

When will we review the Materials Center MOU, asked Lloyd? Lloyd said we should look it over and look at whether it needs revisions.

Smyrna Rest stop: Haven’t gotten word about appraisal. May shift this to a BEP opportunity. Secretary of transportation is leaving. Lloyd said we need to wait a little while.

Nancy asked about separate task force. New session will look at IEP task force recommendations and that is a recommendation of IEP task force and legislature will consider.

New principal person will come to next meeting.

Debra Talley is the new communications person. Maybe she can join us, too. Interviewing for central intake person.

Dan said we have not been asked to cut positions, while other departments have.

Lloyd sent the council information on a new federal law, The Able Act, that can help people with disabilities. It allows people to set aside up to $100,000 without jeopardizing social security and Medicaid eligibility.

Meeting adjourned at 12:10.