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State of Nevada WICHE Commission Meeting
Thursday, July 15, 2013
State of Nevada Western Interstate Commission for Higher Education (WICHE)
Commission Meeting
Minutes for July 15, 2013
Disc #2, File #34
In Attendance:
Joseph Hardy – Commissioner, Nevada WICHE
Vic Redding – Commissioner, Nevada WICHE
Vance Farrow – Commissioner, Nevada WICHE
Carrie Parker – Deputy Attorney General, Office of the Attorney General
Jeannine Sherrick – Director, Nevada WICHE
Dana Westre – Accountant Technician I, Nevada WICHE
1. Call to order. The meeting was called to order by Commissioner Redding at 3:31 p.m.
2. Public comment. There was no public comment.
3. Introduction of the new Nevada WICHE Commissioner Vance Farrow. Commissioner Redding introduced Vance Farrow. Commissioner Farrow stated he is honored to be with the WICHE Commission. He serves the State of Nevada as an Industry Specialist at Health and Medical Services, Nevada Governor’s Office of Economic Development, and celebrated his one year anniversary with the State of Nevada in May. Commissioner Farrow comes from Washington D.C., where he was Chief of the Bureau of Cancer and Chronic Disease for ten years. He oversaw statewide federal and local funding for the cancer and chronic disease programs, which included policy efforts as well as worksite wellness program development throughout the district. Commissioner Farrow was welcomed by the WICHE Commission and staff.
4. Selection and term of the new Nevada WICHE Executive Commissioner. Commissioner Redding stated that with the passing of Commissioner Shaff, a new executive commissioner needs to be selected. He suggested the term be set at two (2) years, which will coincide with the biennial budget and legislative cycles. Commissioner Hardy moved to have the term set for two (2) years, which can be repeated, and for Commissioner Redding to be the new executive commissioner. Commissioner Farrow seconded. Approved.
5. Selection of Regional WICHE committee assignments. Committee descriptions were reviewed. Commissioner Redding asked if there was interest in the following committees: Executive, Programs and Services, Issue Analysis and Research, and Self-Funded Units (Mental Health and WCET). He stated the meetings are held each November and May, with conference calls every other month that usually include updates from the Regional WICHE staff. Commissioner Farrow stated he is interested in the Programs and Services committee. Commissioner Redding stated he has done previous work with Issue Analysis and Research and would like to continue. Commissioner Hardy stated he would like to take part in Mental Health and WCET. Regional WICHE will be notified of the selections. Commissioner Hardy moved for approval of selections. Commissioner Redding seconded. Approved.
6. Approval of the March 19, 2013, and April 25, 2013, minutes. The minutes were reviewed. Commissioner Hardy moved for approval. Commissioner Redding seconded. Approved.
7. Certification of Fiscal Year 2013 alternate applicants in the fields of optometry, pharmacy, and physician assistant. Ms. Sherrick stated all applicants were notified per Open Meeting Law requirements and recommended approval. There were no questions. Commissioner Hardy moved for approval. Commissioner Redding seconded. Approved.
8. Nursing participant E. McLemore’s request for hardship consideration in meeting her practice obligation to the State of Nevada. The applicant was notified per Open Meeting Law requirements. Ms. Sherrick stated the participant had moved out of state without providing notification and the office was unable to obtain confirmation of her service obligation. Therefore, per statute, the penalty of triple principal plus accrued interest was applied. Once she was notified of the penalty, the participant then contacted the WICHE office and provided an appeal letter to the commission stating financial and personal hardships. The request was not specific but does appeal the decision to triple the principal.
The commission determined that agenda item #11 should first be addressed in reference to this agenda item.
After determination of agenda item #11, Commissioner Hardy stated the commission can assess the penalty of three times the support fee, and then extend to her a three-year term at the original principal amount plus accrued interest. Ms. Sherrick stated it does not appear that the participant will be completing her education in order to meet her practice obligation. Commissioner Hardy asked what the support fee amount was. Ms. Westre answered the recipient received a total of $2,600; $240 was the student loan portion, and $2,160 was the grant portion. Commissioner Hardy stated he would like to honor the request, which will allow her the dignity of paying the support fee back. Ms. Sherrick stated she would like to ask the commission to allow her to work with the participant on a payback plan.
Commissioner Hardy moved to assess the penalty of three times the support fee, and then extend to her a three-year term at the original principal amount plus accrued interest. Commissioner Redding added to give her a schedule that will pay in full within three years of today’s date. Ms. Sherrick stated statute guides the minimum monthly payment of $50.00 and payback timeframe of five years. Commissioner Hardy accepted the amendment to his motion. Commissioner Redding seconded. Approved.
9. Dental participant D. Chenin’s request for practice extension. Ms. Sherrick stated the participant was notified per Open Meeting Law requirements. Dr. Chenin graduated in 2005 but has completed only 16 hours of required service over the last 3 years. The WICHE staff and the University of Nevada, Las Vegas (UNLV) have both expended a lot of resources, but Dr. Chenin has done very little. He has not been meeting his service requirement in the time required by statute, nor has he kept the agreements he made. Therefore, per statute and procedure, the penalty was assessed. Dr. Chenin then contacted the WICHE office.
Ms. Sherrick stated, however, the service he is providing is very unique and he does have a service plan in place. She recommended the commission allow him to provide his services, adding if he does not fully comply with his service requirement that the penalty be restored. Commissioner Redding asked if UNLV is on board with the plan. Ms. Sherrick answered yes. Commissioner Hardy moved to allow the practice extension with the condition Dr. Chenin follows through with his promises to UNLV. Commissioner Farrow seconded, with the addition to the motion that Dr. Chenin complete 350 hours per year with the service to be completed within three years. Also, he would like Dr. Chenin to provide documentation each year to confirm this schedule is being met. Ms. Sherrick stated timesheets are required and requested on approximately a monthly basis. Motion approved.
10. Physician assistant participant C. Black’s request to extend his practice service requirement. Ms. Sherrick stated the participant has been notified per Open Meeting Law requirements. Mr. Black graduated in May 2010, and statute requires practice to begin within one year of graduation. He has not begun to practice because he has not been able to pass his medical boards. Ms. Sherrick stated he is requesting an extension to allow him to retake the boards because he is already out of statutory compliance for meeting his service. Ms. Sherrick recommended approval of the practice extension request.
Commissioner Redding asked if, after Mr. Black takes his boards again in August, how long will it take to obtain results? Commissioner Hardy stated the results take approximately 6-8 weeks to obtain. Ms. Sherrick added that Mr. Black is required to inform the office of the results. Commissioner Redding requested the status be brought back before the Commission at the October meeting to give the participant time to take boards and inform the Nevada WICHE office. Commissioner Hardy agreed, and stated a six month extension is ample time if Mr. Black takes the boards in August. Commissioner Redding moved to approve a six (6) month extension for Mr. Black to take the boards and notify the Nevada WICHE office with the results. Commissioner Farrow seconded. Approved.
Commissioner Hardy excused himself from the meeting at 4:10 p.m.
11. Policy on support fee repayment and triple principal penalty for HCAP students who do not graduate, or who graduate but do not pass boards/obtain licensure (Ref: NRS 397.0617, 397.067). Commissioner Hardy asked if this falls into the “shall” or the “may” section of the statute. Ms. Parker answered it falls under NRS 397.0617, which contains the “shall” language. If a person did not complete their service, the Commission “shall” assess the default charge of three times the support fee. “Shall” is strong verbiage. In NRS 397.0655, which addresses the authority of the Commission to delegate certain powers to the Nevada WICHE Director, the Legislature has stated that the three Nevada State Commissioners may not delegate the authority to the Director to reduce the principal balance owing. This implies granting authority to the commission to reduce the principal owing. In the spirit of the statutes, the Commission “shall” assess the default charge but “may” then reduce the balance owing, reaching the result of principal reduction without offending the statute. Commissioner Hardy stated the Commission can assess the penalty of three times the support fee, and then reduce the balance owing.
12. Fiscal Year 2013 end-of-year reports review. The CAIS report, Income Statement, Aging Report and Accounts Receivable report were reviewed. Ms. Westre stated the year was a good one, ending with a $17,766 balance forward. Commissioner Redding explained for Commissioner Farrow’s benefit the balance forward from the legislative Letter of Intent and reasoning behind it. Ms. Westre continued with the Income Statement, stating that the expenses for the year were $927,270 out of the approved $1,045,500 budget. Seventy-nine of the approved eighty-nine slots were funded, leaving two dental, two graduate nursing, one optometry, three physician assistant and two veterinary medicine slots unfunded for the year.
The Aging Report is provided each quarter for the Commission’s review. Commissioner Redding asked, in regards to the accounts at the 1-2 year delinquency status, are problem balances occurring as in the past? Ms. Westre stated there are no large collection balances as in the past. She stated for Commissioner Farrow’s information that the CAIS report contains the operating information and the Accounts Receivable report contains the fiscal year-end information for the Controller’s office. Commissioner Farrow asked if the penalties noted on the Accounts Receivable report were for checks that had insufficient funds. Ms. Westre answered the $15.00 was for late fees. There were no further questions.
13. The Nevada WICHE 2013-2015 biennial budget. Ms. Sherrick stated the legislature approved the Programs Budget request in full, including an additional $200,000 in General Fund each year to fund programs in full. Commissioner Redding explained to Commissioner Farrow that the Programs Budget is supported by both General Fund and participant loan repayments. For a variety of reasons the repayments have gone down. The requested budget kept the number of slots at fully funded numbers and asked for General Fund backfill. For the first time in five years, it looks like slots can be fully funded as approved by the legislature. Ms. Sherrick added the Letter of Intent was renewed. If slots are not funded, the legislature will be notified.
The Administration Budget received the 2.5% salary restoration; however, furloughs were kept in place. The major changes at the administration level were the salaries, and the Regional WICHE dues increase of $3,000 for FY 2014 and $6,000 for FY 2015.
14. Nevada WICHE Fiscal Year 2014 budgets. Ms. Sherrick stated the major operating changes were mentioned in Item #13. The drop in the total Programs Budget from $1,045,500 to $1,017,920 is not due to cut slots, but primarily due to the field of pharmacy. Pharmacy school programs are both three and four years, and several participants in three-year schools dropped off the matrix. Commissioner Farrow moved to approve the Fiscal Year 2014 budgets. Commissioner Redding seconded. Approved.
15. ECSI student loan accounting services to add bankruptcy monitoring service for a monthly fee. Ms. Westre explained that WICHE normally has to rely on mail through the United States Postal Service to receive bankruptcy notifications. Because ECSI has experienced recent lawsuit action against them for violating bankruptcy stays, they came out with a bankruptcy monitoring service. WICHE would be charged a flat fee of $25.00 in addition to the $425.00 per month that is currently paid for ECSI services. In return, ECSI will guarantee that WICHE accounts are flagged if a bankruptcy occurs, and notations regarding the bankruptcy will be placed in the account so that the stay is not violated.
Commissioner Redding asked for staff’s recommendation. Ms. Sherrick stated that because there is money to fund this increase and, due to its level of importance, she recommends adding the service. Commissioner Redding agreed it is a good expenditure to prevent what could occur. Commissioner Farrow stated that this service will relieve Ms. Westre of tracking this information. Ms. Parker stated it is serious to violate the stay. Normally, debtors list all of their creditors when they file their bankruptcy petition; however, if WICHE is missed, we would receive no notification. She recommended the service. Commissioner Farrow moved to approve the additional monthly fee for the bankruptcy service to be added. Commissioner Redding seconded. Approved.
16. Signature policy on program and administrative budgetary expenses at the Director, Executive Commissioner, and/or Nevada Commission levels; adjustment to Accounts Payable procedure. A handout was reviewed. Commissioner Redding stated he worked on this item with Ms. Sherrick in the interest of processing transactions as smoothly as possible and to provide an adequate audit trail.
Addressing the Administration Budget, the proposal is for up to $2,000 signature authority for the Director to cover operating expenses. Expenses between $2,001-$10,000 will require the Director and the Executive Commissioner’s signature authority; anything in this range will most likely be an emergency, so there will be signature authority in place for that. Transactions above $10,000 will require commission approval, with the exception of the WICHE Regional dues which were approved as part of the biennial operating budget.
The second change recommended addresses the Programs Budget. In the interest of obtaining contracts and getting funds spent late in the fiscal year, this proposal would give the Director the authority to sign on the agreements as long as the fields are legislatively approved, the support fees are legislatively approved, and the applicants have previously been approved by the Commission. Commissioner Farrow moved to approve the signature authority proposal. Commissioner Redding seconded. Approved.