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The Youth and Family Resource Center, which operates Shawnee’s Hope House children’s shelter, is facing a $9,000 per month revenue shortfall, prompting members of the board to consider ways to cut costs for operations.
The board, during a special meeting Wednesday, discussed several items, including finances and a planned executive session to discuss the executive director, Susan Morris. Discussion and concern about that item being unclear on the agenda prompted the board to ask for a special meeting at 9 a.m. Friday.
Before that, the board openly discussed finances. Chairwoman Marilyn Bradford said a recent staff and committee meeting resulted in suggestions being presented to raise funds, generating a list of about 18 ideas.
The list includes holding fundraisers, changing benefits for employees, like cutting the amount the agency pays for employee health insurance, and cutting retirement matches, or even implementing furlough days. Ideas about the center being absorbed by another agency, Morris taking a pay cut and even layoffs for the receptionist and janitor also made that list.
“We’re financially facing an uphill battle,” Bradford told the board,” adding the shortage is about $9,000 per month.
Bradford said they need to discuss how to get the agency through the current fiscal year, which ends in June.
“We have a real steep climb to get to that,” she said, adding they’re “still under the gun to meet payroll and monthly costs.”
Based on funding sources and taking into account the recent loss of one funding contract, accountants have estimated the official shortfall to be $9,667 per month.
Shelly Welch, accountant from Finley and Cook, said since Y&F pays all health benefits for the seven employees on the health plan, having an 80/20 split would save about $626 per month. Cutting back on retirement matches would trim about $660 per month, she said, but that may be impossible to change except during enrollment times. The layoffs could save about $1,000 per month, she said.
While some employees cannot be furloughed because of personnel needed to run the shelter, Welch also said if hours aren’t worked, those are funds the center won’t get reimbursed from the state, one of the sources of funding.
If all the cuts discussed were implemented, Welch said it could save about $4,300 each month.
Welch said when looking at the situation of another agency absorbing the center, they do have a problem with an outstanding IRS issue. She said Y&F currently owes the IRS about $6,000 in back payroll taxes, but with penalties and interest, the amount owed is about $20,000.
The Youth and Family Resource Center, which operates Shawnee’s Hope House children’s shelter, is facing a $9,000 per month revenue shortfall, prompting members of the board to consider ways to cut costs for operations.
The board, during a special meeting Wednesday, discussed several items, including finances and a planned executive session to discuss the executive director, Susan Morris. Discussion and concern about that item being unclear on the agenda prompted the board to ask for a special meeting at 9 a.m. Friday.
Before that, the board openly discussed finances. Chairwoman Marilyn Bradford said a recent staff and committee meeting resulted in suggestions being presented to raise funds, generating a list of about 18 ideas.
The list includes holding fundraisers, changing benefits for employees, like cutting the amount the agency pays for employee health insurance, and cutting retirement matches, or even implementing furlough days. Ideas about the center being absorbed by another agency, Morris taking a pay cut and even layoffs for the receptionist and janitor also made that list.
“We’re financially facing an uphill battle,” Bradford told the board,” adding the shortage is about $9,000 per month.
Bradford said they need to discuss how to get the agency through the current fiscal year, which ends in June.
“We have a real steep climb to get to that,” she said, adding they’re “still under the gun to meet payroll and monthly costs.”
Based on funding sources and taking into account the recent loss of one funding contract, accountants have estimated the official shortfall to be $9,667 per month.
Shelly Welch, accountant from Finley and Cook, said since Y&F pays all health benefits for the seven employees on the health plan, having an 80/20 split would save about $626 per month. Cutting back on retirement matches would trim about $660 per month, she said, but that may be impossible to change except during enrollment times. The layoffs could save about $1,000 per month, she said.
While some employees cannot be furloughed because of personnel needed to run the shelter, Welch also said if hours aren’t worked, those are funds the center won’t get reimbursed from the state, one of the sources of funding.
If all the cuts discussed were implemented, Welch said it could save about $4,300 each month.
Welch said when looking at the situation of another agency absorbing the center, they do have a problem with an outstanding IRS issue. She said Y&F currently owes the IRS about $6,000 in back payroll taxes, but with penalties and interest, the amount owed is about $20,000.
A letter asking the IRS to waive the penalties was sent and denied, although she said they are gathering paperwork to appeal. Issues came up last summer regarding errors in payroll taxes withholding on employee paychecks.
Securing the services of a grant writer in attempts to apply for grants was mentioned and board member Mike Shaw suggested considering a mortgage on the currently paid off Hope House building.
“It’s a band-aid, but it could suffice to keep it afloat,” Shaw said, until funding improves. Shaw said he is more in favor of a mortgage than furloughs or layoffs.
Bradford, who said they would continue with suggestions and ideas, said they couldn’t solve all issues in one meeting.
Wording of an agenda item for an executive session sparked comments and ultimately ended without an executive session being called.
The agenda item listed an option to convene in executive session and listed “executive director” on that line, but not on the item which reads to discuss the “employment, hiring, appointment, promotion, demotion, disciplining or resignation of any individual salaried public officer or employee.”
Bradford first said she thought it could have been better worded but believed there was enough and moved for executive session, but there was no second and further discussion.
Board member Brian Blansett disagreed with the way the agenda item read and said it didn’t include enough for the public and their right to be informed about what would be taking place. He said if the board were to call for executive session, he would vote against it and excuse himself from that session.
Others asked about convening in executive session for discussion and not taking any vote, but Blansett said he had “a high level of discomfort” about the agenda meeting requirements for such a session.
Board member Dana Langley, who said Bradford had asked for the specific agenda item for the past two meetings, expressed frustration that it wasn’t worded right when Morris drafted the agenda. Langley said she didn’t know if this was an oversight or if she didn’t want to do it the way it needed to be done. Morris said, “I apologize to you all for putting it on the wrong line.”
Discussion indicated the agenda item should call for an executive session to discuss the annual performance review of Morris as executive director. To give the required 48-hour notice for the a special meeting, the board set the meeting for 9 a.m. Friday at Hope House.
Watch for updates.
