Budget and Audit Committee Minutes

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Extrait

Budget and Audit Committee Minutes

Rehabilitation Services Commission

400 E. Campus View Blvd., Columbus, OH 43235

April 20, 2009

RSC staff in attendance

:

Chair David Daugherty; Commissioner Jacqui Romer-

Sensky; Commissioner Bruce Growick, Chief Financial Officer Chris Hansen;

Fiscal Officer Marc Protsman; Legislative Director Joe Dunn; Communications

Director Steve Ostrander; BSVI Director Mike Hanes; Acting Information

Technology Team Leader Travis Sherick; Customer Service and Resource

Development Director Connie O’Brien; Manager Janet Cool; BSVI Assistant

Director Steve Moore; Executive Assistant Shirley Marchi

Guests:

John Finch, Central Ohio Vocational Alternatives (COVA); Kelly Manns,

OARF; Dawn Gleason, CSHC; Joanne Sheemar, CSJC; Jennifer Kuntz,

Greanleaf; Deb Shnoskie, Goodwill; Kevin Futryk, OACCD; Marty Gaydvor; VGS

Teleconference participants:

Commissioner Joyce Young; Executive Director

John Connelly; Mark Seifarth, MRDD; SILC Executive Director Brenda Curtiss;

and Chris Staccia, A2Z

Welcome and Introductions

At 9:05 a.m. Chair Daugherty called the meeting to order.

Minutes

Commissioner Romer-Sensky moved to approve the March 2, 2009 Budget and

Audit Committee Meeting Minutes, seconded by Commissioner Growick.

Motion

carried.

Public Comment:

Mark Seifarth, MRDD, stated prior to making any final decisions and changes to

the Personal Care Assistance (PCA) Program, the Commission should look at

putting together a committee that includes advocates, Commissioners, RSC staff

(Zelpha Rinehart), and a representative from Job and Family Services, to discuss

the PCA program’s information from the past and present to see what has

worked and hasn’t worked.

John Finch, COVA, distributed a handout (attachment A).

He stated COVA has

submitted three stimulus proposals through the Governor’s website.

Mr. Finch

stated COVA is a Community Rehabilitation Program (CRP) that serves persons

with mental health (MH).

COVA would like to see a balance of the stimulus

money go to serving consumers and include the engagement of CRPs.

He sees

this as an opportunity for innovative practices.

Mr. Finch stated he is advocating

Budget and Audit Committee Minutes

April 20, 2009

Page 2

that stimulus money be used for underserved populations such as veterans,

offenders, and persons with severe mental health, as well as a continued

collaboration with other state agencies.

He stated copies of this letter have been

given to other agencies.

In addition, Mr. Finch stated when he submitted

proposals for the stimulus dollars the website limits information (that is to be

provided) to a very small space.

Due to this, COVA was not able to go in depth

regarding how outcomes will be measured.

Stimulus Update

Chief Financial Officer (CFO) Chris Hansen reported the American Recovery and

Reinvestment Act (ARRA) Stimulus funding notification was made available to us

on April 1, 2009.

The VR Program will receive $21.6M with no match and no

Maintenance of Effort requirement.

Independent Living (IL) will receive $509,000

with a 10% match requirement.

Independent Living/Older Blind (ILOB) will

receive $1.4M with a 10% match requirement.

On April 1, 2009, we received

50% of the VR funds, which is about $10.8M of the $21.6M.

The remaining

monies will be available in October 2009 and are contingent upon fulfilling

reporting requirements.

Reporting requirements are still being developed by the

Department of Education (DOE).

We did receive 100% of the funds for IL Part B

and ILOB.

All federal funds must be obligated by September 30, 2011.

IL Part B

and ILOB match must be obligated by September 30, 2010.

The match dollars

for IL Part B and ILOB will come from local vendors.

Commissioner Growick stated are we required to obligate funds by a certain

date?

CFO Hansen replied, the only information we received states that funds

must be obligated by September 2011.

Commissioner Growick stated we are under no obligation to allocate the first half

of the funds by October 2009.

CFO Hansen responded we have not received

any information regarding obligation or expenditure.

Executive Director Connelly

stated the second half of VR funds will require certain reporting to VR

Administration.

He assumes the reporting will center on what we do with the first

half of the funds.

Specifics are still unknown.

CFO Hansen reported proposals were entered on SharePoint for review and

consideration by RSC.

Proposals were reviewed using 12 criteria developed

primarily from RSA stimulus guidance.

SharePoint information was not detailed

enough to allow for recommendation on proposals

There may be other groups

that did not know about SharePoint and may be interested in the stimulus dollars.

We do have information from the

Community Conversations

public forums and

My Two Cents

on RSC’s internet.

However this information needs to be more

organized.

Budget and Audit Committee Minutes

April 20, 2009

Page 3

CFO Hansen stated the ARRA Guiding Principles are to spend funds quickly to

save and create jobs, ensure transparency, reporting and accountability and

invest one-time ARRA funds thoughtfully.

Chair Daugherty stated you mentioned a plan for timelines.

CFO Hansen stated

we are looking at developing a Request for Proposal (RFP) that would identify

the criteria and what is needed to meet the criteria.

The RFP would be sent to

people who submitted proposals via SharePoint and others.

We are looking to

get an RFP out in May/June, 2009 with an aggressive start date of July, 2009.

In addition, CFO Hansen stated the Office of Budget and Management (OBM)

has a series of Guidance Memos (7 listed so far) that identifies the stimulus

team, coding, risk assessment and management, assurances, copies of awards

notices and reporting.

CFO Hansen stated we listed 12 criteria that came from the Rehabilitation

Services Administration’s (RSA) Guidance on VR Stimulus.

The ARRA

Guidelines are the same guidelines as in the regular VR program.

We do not

have to redo the State Plan.

The criteria include: use consistently with statutory

and regulatory requirements for VR State Grants Program; serve individuals on

waiting lists in agencies currently using an Order of Selection; increase services

to eligible consumers; expand services to traditionally undeserved or unserved

populations; obtain or improve effective case management systems; and provide

intensive training to VR counselors and other.

Commissioner Growick asked was there any input from outside individuals or just

within RSC.

CFO Hansen stated SharePoint was missing pieces of information.

We looked to expand and had a couple of opportunities from our last meeting to

get consumer input via the community forums that were held throughout the

state.

Executive Director Connelly stated he attended the Ohio Association of

Rehabilitation Facilities meeting and did go over proposals with them.

Also, we

met with Ohio Goodwill Industries.

We conducted our own research on what

other VR agencies are doing and planning across the nation.

CFO Hansen stated we propose a four part plan for the use of VR stimulus

funds.

One part is $5M for targeted services and programs to CRPs via the RFP

process and $10M for increase case services, for a total of $15M.

In addition, we

propose $4.2M to replace the OSCAR VR case management system and $2.4M

to cover anticipated staff shortages due to attrition, intermittent staff to manage

stimulus funds, and related administrative costs such as rent, travel and

equipment.

Budget and Audit Committee Minutes

April 20, 2009

Page 4

Commissioner Romer-Sensky stated given the fact that OBM has to approve

intermittent staff and part of ERI approval was a pledge that we would not backfill

positions, has there been any preliminary approval or guidance from OBM.

CFO

Hansen responded OBM is monitoring this very closely, especially with hiring.

For regular staffing, VR has lost a lot of counselors since January.

We can make

a request to OBM as long as the positions are budgeted. She further stated we

have not had specific conversations yet with OBM because we wanted to have a

general discussion with Commissioners first.

CFO Hansen further reported we plan to conduct an RFP process for VR

targeted services to CRPs through May and June with contracts beginning in

July, 2009.

We plan to open the bid process to include SharePoint participants

and plan to award grants to accredited CRPs.

Commissioner Romer-Sensky stated has any more thought been given to the

scoring criteria?

BSVI Director Hanes stated we are looking at such criteria as

what experience does the vendor have with the population; what are the

projections and how many people will be served with the dollars; is the proposal

innovative; does the proposal target areas of the state that may be undeserved.

Executive Director Connelly stated in addition to these items, we are also looking

at underserved population with Supported Employment.

The SharePoint team is

rating and inviting someone from the DOE and MH to assist us in reviewing

proposals.

We are also looking at Transition Youth.

In addition, we are looking

at if the jobs are community based or sheltered jobs.

CFO Hansen reported $2.5M is being awarded with current VR allotment.

We

will receive one quarter’s worth of funding in FFY 09 to develop infrastructure

with a balance of funding in FFY 10.

BSVI Director Hanes stated potential targeted services include the Summer

Youth Employment Program; services to Veterans; improve delivery and

coordination of services to persons with mental illness; and expansion of

Supported Employment services.

BSVI Director Hanes further reported an additional $10M is proposed to be

managed by RSC staff and is recommending that some of the funds be targeted

to partner with agencies such as MH, MRDD and JFS with the expectation that at

least 60% of the funds will go to CRPs.

Budget and Audit Committee Minutes

April 20, 2009

Page 5

Commissioner Growick stated to what extent are we reaching out to other state

agencies.

Other state agencies are not so well positioned, especially MH and

MRDD.

We need to bring other state agencies in for discussion.

Commissioner Romer-Sensky stated are we putting money back into historical

earmarks.

Is RSC to dedicate a million dollars for JFS, MH and to rejuvenate

those partnerships?

She further stated 60% of $10M will touch hands of CRPs.

Executive Director Connelly stated up until two years ago, we had dedicated

lines for those populations.

We still have several mechanisms in place to identify

mutual customers.

We provide reports on a regular basis to other state

agencies.

We believe that by having line items, it sends a message to everyone

that we have a very tangible investment in these programs.

CFO Hansen reported regarding the proposed OSCAR replacement we would

like to use the existing bid/selection process previously authorized by OIT.

We

would begin contracts in July with a target completion date of September 30,

2011.

BSVI Director Hanes reported on the Administrative Costs.

He stated we would

like to increase staff due to difficulty in hiring counselors and allow attrition to

cover the costs long-term.

We would add intermittent staff to manage contracts

and additional case services.

The balance of funds would be for travel,

equipment, rent, and support staff.

Commissioner Romer-Sensky stated she wants to see more details on the

Administrative Costs.

For example, what are attrition rates?

What are the rules

to bring back retired employees?

What is an intermittent employee?

She further

stated what are other models out there that RSC can do to outsource?

BSVI

Director Hanes stated counselors determine eligibility, sign off on plans, and sign

off on closures.

It is in the law.

Executive Director Connelly stated Ohio VR is

pretty aggressive, for example with the Pathways program.

He stated RSA is

raising questions about states with third party agreements.

For example, are

dollars being used to get consumers jobs?

Commissioner Growick stated is the California Model still being considered.

Executive Director Connelly replied RSA was doing a monitoring visit with

California and looking at the legality of in-kind match.

He further stated he spoke

with Ed West from RSA and Mr. West has not yet seen a report from California.

We don’t know if RSA is saying that what California is doing is appropriate or not.

We found in our research this seems to be questionable under the law and we

are waiting to see how RSA will rule with California.

Budget and Audit Committee Minutes

April 20, 2009

Page 6

Commissioner Growick asked if a paper will be distributed to Commissioners or

does an internal document exist regarding RSC research on the California

model.

CSRD Director O’Brien stated we do not have a paper drafted at this

point.

We wanted to wait until a decision from RSA was made before moving

forward.

BSVI Director Hanes stated the only paper was the white paper

distributed to Commissioners last December.

Commissioner Growick stated when does RSC get the report from RSA.

Executive Director Connelly replied he expects to hear something within the next

month.

As soon as we have the information, we can go back to the white paper

and if legal, we can update paper and bring back to the Commissioners.

BSVI Director Hanes reported on the IL/OB proposal.

He stated he would like to

expand successful contracts.

If we expand the contracts it would include

software training, serve an additional number of individuals to keep them

independent and out of nursing homes.

We would begin an RFP process for

undeserved areas with a July 2009 starting point date.

We have an opportunity

to partner with the Department of Aging and Area Agencies on Aging.

We are

waiting on feedback from the Department of Aging to see if they are interested.

He further reported that there is an expectation that the 10% match requirement

will be met by participating vendors and there may be issues of existing or new

contractors in order to find the needed match.

Commissioner Growick stated the 10% matching for ILOB, can we test the

waters.

BSVI Director Hanes replied, we can ask and have to look at guidance.

Commissioner Growick stated look at guidance and test using in-kind match

rather than wait on the information from California.

BSVI Director Hanes reported on the IL proposal.

He stated there is a 10%

match for Part B to come from IL General Revenue Fund (GRF) line item.

We

are waiting on proposals from the SILC regarding the criteria and use of Part B

funds.

Part B proposals must be consistent with the current SPIL, or the SPIL

must be amended and RSA approval is required.

BSVI Director Hanes stated stimulus dollars for IL Part C does not go through

RSC.

There has been no allotment of funds or guidance from DOE on IL Part C.

Chair Daugherty stated VR was lobbied by CSAVR for ARRA funding; however,

the National Council on Independent Living (NCIL) spearheaded the IL and ILOB

recovery funding and did not ask for and did not receive a waiver on match.

Budget and Audit Committee Minutes

April 20, 2009

Page 7

CFO Hansen stated the next steps are for the Commissioners to vote on staff

proposals for the use of stimulus funds.

Staff will design and make ready the

RFP process for VR and ILOB with targeted contract start dates of July 1, 2009.

In addition, IT will research the next steps in the OSCAR replacement process.

Staff will determine the mix of counselors and support staff to be hired with

stimulus funds.

Staff will also determine support costs associated with new staff.

Lastly, necessary budget motions will be offered at the May 20

th

Commission

meeting.

Chair Daugherty stated in summarizing the VR proposal, there is $15M in case

services and targeted projects; $4.2M in infrastructure costs (OSCAR

replacement); and $2.4M in short term administrative costs.

He asked

Commissioners for a motion to approve this.

Commissioner Growick stated he has not seen anything in writing regarding the

case management system from OIT.

However, he will approve this based on the

concept.

Mr. Growick further stated he does not want to allocate funds for new

staff until RSC talks with DAS and OBM.

In addition, he stated there wasn’t

really enough information to evaluate proposals on SharePoint.

What evaluation

criteria, time frames, etc., do we have in place?

We want to get funds out and

begin using the funds.

We need to put a hold on this until we get new

information.

We need a special meeting prior to the next full Commission

meeting.

Commissioner Romer-Sensky stated the numbers can be arbitrary.

She does

not like to see administrative costs over 10%.

She would like to see

administrative numbers between 7-8%.

Chair Daugherty stated the report is

listed as administrative costs but a lot of this is program costs and counselors are

considered program costs.

Commissioner Romer-Sensky stated for future

conversations, we may need to adjust administrative costs and program costs as

associated with counselors.

Commissioner Jacqui Romer Sensky moved for RSC staff to: identify a basic

framework for what the VR stimulus dollars RFP would look like; identify a basic

framework for the ILOB stimulus dollars RFP; identify metrics associated with

staffing patterns; and identify more detailed information for OSCAR regarding the

framework and make contact with the State of Ohio Information Technology,

seconded by Commissioner Growick.

Motion carried.

Chair Daugherty asked staff if they are able to deliver of all of these requests.

Staff said yes.

Budget and Audit Committee Minutes

April 20, 2009

Page 8

Chair Daugherty asked if any of our key partners attending today’s meeting had

input.

Mr. Futryk stated the OACCD did not submit proposals because

parameters in SharePoint were not defined well enough.

SILC’s Director Curtiss

stated there is a lot more flexibility in hiring people in the IL proposals.

Executive

Director Connelly stated it is very important that the Commission is aware that IL

Part B stimulus dollars have to be awarded and come through the Commission.

Independent Living/Older Blind

Commissioner Growick moved that staff are to identify the framework and

matching funds for the RFP, seconded by Commissioner Romer-Sensky.

Motion

carried.

Independent Living Part B

BSVI Assistant Director Steve Moore stated the expectation is to expand

$240,000 over 10 Centers.

This is not a great deal of money.

A separate grant

is to be developed.

In addition to the FFY 09 stimulus expenditures, SILC’s

Executive Council will put together a plan to expend those funds this fiscal year.

However there is some concern about driving the funds into an audit status.

Chair Daugherty stated the IL Centers are for independent living; not jobs.

How

does this work with VR stimulus money?

BSVI Assistant Director Moore stated

the basis is on the State Plan that has been submitted.

The Plan does not rely

on job outcomes, it relies on adding a ramp to a house, etc.,

Director Hanes

stated this is similar to ILOB – to keep people independent, off of public

assistance, and out of nursing homes.

Other Business

Former RSC Commissioner Mark Seifarth stated as we go through

reconsideration of the PCA program, please involve a lot of people in the

discussion.

Commissioner Romer-Sensky stated given the stimulus money, the

current workload on staff, and having a new Executive Director in July, we should

table this discussion to a later date.

CSRD Director O’Brien stated Zelpha

Rinehart, RSC staff person who oversees the PCA program, will be retiring and

we need to get the PCA information from her.

Commissioner Growick stated with

Medicaid Buy-in, this is a problem with JFS.

He agreed that expediency is not

necessary.

This topic can wait as long as we set a foundation for moving

forward.

CSRD Director O’Brien stated she represents RSC on the Medicaid

Buy-in Committee and will ask to have this information on their agenda.

Budget and Audit Committee Minutes

April 20, 2009

Page 9

Next Meeting Date and Time

The next Budget and Audit Committee Meeting is scheduled on May 6, 2009

from 9:00 a.m. – 11:00 a.m. at RSC in the Columbus and Zanesville Conference

Rooms.

Other

Commissioner Growick stated he is very impressed with the PowerPoint

presentation and is requesting the information be placed on RSC’s website.

Adjourn

Commissioner Romer-Sensky moved to adjourn the meeting, seconded by

Commissioner Growick.

Motion carried.