NAME: Finance & Compliance Committee

DATE:
March 13, 2017 / Time:
10:00 a.m. to Noon / Presiding:
Pete Scerbo, Co-chair / Recorded By:
Julia Schneider
Participated via Phone: Mary Pat Angelini, Anthony DiFabio; Deborah Hartel, Cheryl Marks Young
Participated in Person: Pete Scerbo, Mary Gay Abbott-Young
Staff: June Noto, Julia Schneider, Debra Wentz
AGENDA ITEMS/ISSUE / DISCUSSION / ACTIONS TAKEN/OUTCOME / TIMEFRAME / WHO’S RESPONSIBLE /
Approval of the December 12, 2016 meeting minutes / The Committee Co-chair welcomed those on the call and in attendance. A motion was made to approve the minutes from the previous meetings. The minutes were seconded and approved. / The minutes were m/s/p. / N/A / N/A
Financial Issues
Operational Issues / The February, 2017 financials were reviewed. Julia asserted that we are close to budget on dues receipts. Including the March regular association dues receipts to date, we are at 98% of budget. Julia reminded the committee that we intentionally budgeted dues revenue conservatively this year, and as we suspected might happen, our membership has decreased. Thus we expect an overall decrease in revenue from the prior year. We also expect to meet our budget on council member dues. LAN/WAN and conference revenue is also on target. Debra Wentz added that we will continue to work hard to get the Annual Conference numbers up, as we do each year.
The next agenda item, Hardship Dues Requests, was then addressed. Julia referred the committee to the letter sent from Sharon Green of Journey Into Wellness which requested a $50/month payment plan or $600 total for the year. The committee decided that if this member is able to prove a loss in the prior year, then as long as they are no longer in arrears, they may start this payment plan going forward. The committee agreed that a new policy needs to be established for hardship dues since the landscape has changed in the last two to three years with fee for service issues adding complexity to our industry. So we will discuss this topic at a later time.
Julia then referred to the report on Members Terminated during FY’17, and the effects of the terminations on revenue. The reasons for each termination were noted. Specifically, the Arc of Mercer was discussed and the fact that its executive director will not pay based on their entire budget including their DD services. Some of the pervading thoughts of the committee were as follows: There are more gray areas now as we move away from contracts and towards fee for service; if the leaders of our providers don’t feel there is enough value, they will either not pay dues or not pay on a number of their services, such as DD, so it’s a very slippery slope. It was agreed that with members such as the Arc of Mercer, we need to engage them, find out their particular interest and attempt to retain them. We will continue to do this with other members as well such as the Atlantic Health System hospitals who dropped in FY’17. And going forward, we need to ultimately determine which programs are to be included in the provider budgets for dues assessment.
The next agenda item discussed was a change to the Purchasing Policy of the NJAMHAA Fiscal Policies and Procedures Manual. Essentially the change ensures that the President/CEO approves all equipment purchases or contracts greater than $2,000, and that Board approval is required on any unbudgeted expenditures greater than $10,000.
Debra Wentz gave an update on the status of the NJAMHAA building lease, reminding the committee that we will enter into a 5 year lease at University Office Park 1 (UOP1), for as close as possible to 4,695 SF, and that the Center for Non-Profits will sub-lease with us for the 5 year period. The lease is not available for review yet as the final amount of square footage based on the revised floor plan is being determined. As soon as it is available, we will have it for the Board to review.
The final topic (Rebid of Auditors) was then discussed as a result of the committee’s decision to have Request for Proposals sent out. Julia provided copies of the proposals received (from Sax, Withum and Holman Frenia Allison) and explained the varying costs for each, with HFA coming in as the least costly. Julia also noted that HFA has offered to change partners and senior managers, thereby providing a fresh “set of eyes”on NJAMHAA’s financials going forward. The committee agreed that the process of rebidding was valuable and that it should be documented that it was completed, but that NJAMHAA should continue with HFA at this time, given that it is the least costly option and that management is not in any way dissatisfied with their services. / N/A
Following the meeting, Journey into Wellness submitted a dues worksheet showing a budget commensurate with the new budget classification of $750/year. The member will begin paying the $50 rate after they are brought current.
NJAMHAA will continue to attempt to engage former members to join.
A motion was made to accept this policy; the motion was seconded and passed.
Awaiting final version of building lease for review and approval by NJAMHAA Board.
A motion was made to retain the current auditors (HFA). The motion was seconded and passed.
. / N/A
N/A
Ongoing
Immediate
As soon as received
N/A / N/A
N/A
Debra Wentz
Shauna Moses
Julia Schneider
Debra Wentz
Julia Schneider
June Noto
Debra Wentz
June Noto
Julia Schneider
N/A
The Committee Co-chair motioned to end the meeting. / M/S/P / N/A / N/A

Next regular meeting date – June 12, 2017 at 10 am at NJAMHAA Headquarters.