The Masonic Home for Children at Oxford

The Masonic Home for Children at Oxford Board of Directors Finance/Executive Committee Meeting March 9, 2017

A meeting of the Finance Committee and Executive Committee of the Board of Directors was held this date via teleconference. Present were Chairman, Dewey Preslar; Vice- Chairman, Don Steichen; Treasurer, Melissa Hogan; Secretary, David Wicker; Grand Master, Gene Cobb; Board Observer, Shaun Bradshaw; Finance Committee Members, Maria Lowder and Mack Sigmon; Masonic Foundation Chief Development Officer, Jeff Hensley; Kevin Otis, Administrator; Amy Still, Program Director; Samantha Coleman, PQI Director; and LuAnne Clark, Chief Financial Officer. Financial Development Committee Member, Speed Hallman and MHF Chairman, Johnny Surles were not available. A quorum was present.

The meeting was opened with a prayer by Mr. Mack Sigmon.

Mr. Preslar asked if everyone had reviewed the minutes of the previous meeting. He entertained a motion for the approval of the minutes. A motion was made and seconded to approve the minutes as written. All members voted in favor.

Mr. Preslar asked Mrs. Clark to give the financial report. Mrs. Clark reported that overall income was $13.2K less for January 2017 than in January 2016 and that expenses were $33.9K more in January 2017 than the previous year. She reported that General Public Donations were up $22.8K and that Masonic Donations were down $13.6K as compared to the previous year. Mrs. Clark reported that the major increases in expenses were salaries, benefits, and utilities. They were up $10.1K, $7.2K, and $10.3K respectively. She stated that the salaries and benefits were up primarily because of the increased CCW salary for 2017 and that utilities were up because of timing of payment of invoices and the increased cost of water. She stated that expenses exceeded revenue by $134.1K in January. Mrs. Clark reported that income was $114.7K (37.6%) below budget projections and expenses were $44.0K (12.1%) below budget projections at the end of January 2017. Mrs. Clark reported that the balance in the investment fund with the North Carolina Masonic Foundation was $22.0M at the end of January. A motion was made by Mr. David Wicker and seconded by Mr. Don Steichen to approve the financial report. All voted in favor. Mrs. Clark requested that $350,000 be transferred from the investment account with the NCMF to the general operating account. She stated that this transfer was needed for payment of invoices and for the March payroll. Mr. David Wicker made a motion to approve the transfer of $350,000 from the investment account to the general account. Mr. Don Steichen seconded the motion. All voted in favor.

Mr. Preslar called on Mr. David Wicker for the Policy and Personnel report. Mr. Wicker reported that the committee had reviewed and finalized the personnel policy and

1 procedures that had been updated by The Home. Mr. Wicker made a motion that the following policies and procedures be approved:  Background Checks Policy  Confidentiality Policy and Procedure  Conflict of Interest Policy  Contracting Policy  Disciplinary Action Procedure  Employee Records Access Procedure  Employee Rights Policy  Ethical and Professional Standards of Conduct  Fair and Equitable Treatment Policy  Harassment Policy  Human Subjects Research Policy  Information Technology Policy  Legal Assistance Policy  Nepotism Policy  Prohibition of Preferential Treatment Policy  Protection of Suspected Misconduct Reporting Policy  Recruitment and Selection Policy and Procedure  Smoking Policy  Supervision Policy and Procedure The motion was seconded by Mr. Melissa Hogan. After some discussion and clarifications, all voted in favor.

Mr. Otis reported that Stacey Smith announced her resignation as Archivist effective March 6, 2017. He reported the two houseparent couples are going through the hiring process.

Mr. Otis presented the policies and procedures that had reviewed and finalized by the Program Planning committee. Mr. David Wicker made a motion to approve the following policies and procedures:  Behavior Support and Management Policy and Procedure  Case Record Review Procedure  Critical Incidents Procedure  Data Management Procedure  Direct Care Assessment and Service Planning Procedure  Direct Care Discharge Procedure  Home Size  ILP Assessment and Service Planning Procedure  ILP Discharge Procedure  PQI Operational Procedure  Resident Health Services, Wellness, and Medication Management Procedure  Resident Records Access Policy and Procedure  Resident Rights Policy

2 The motion was seconded by Mr. Don Steichen. After discussion, all voted in favor.

Mrs. LuAnne Clark presented the policies and procedures financial management. She explained all the changes that had been made to these policies. Mrs. Melissa Hogan made a motion to approve the following policies and procedures:  Accounting Procedure  Budget Procedure  Donation Policy  Fundraising Policy  Internal Financial Control Policy  Investments Policy  Operating Reserves Policy  Purchase Orders  Risk Prevention and Management Procedure  School of Graphic Arts Mr. David Wicker seconded the motion. Mr. Shaun Bradshaw asked a question about the operating reserves policy as to whether it should include more liquid assets. After discussion, it was determined that because of the large balance in the investment account that the policy was acceptable as written. Following this discussion, all voted in favor.

Mr. Preslar called on Mr. Jeff Hensley to give a report on Financial Development. Mr. Hensley reported that Youngsville Lodge was in the process of setting up a fund with The NC Masonic Foundation. This fund was started with proceeds from their annual fundraiser. The lodge intends to add to the fund each year with the goal of reaching a balance of $100,000. There will be a 5% distribution from this fund each year that will be given to The Masonic Home for Children for its operations. Mr. Hensley reported on the progress with obtaining Raiser’s Edge software for all three charities. He stated that all charities would be included in one database. MHCO already uses the Raiser’s Edge software. If it is determined to use Raiser’s Edge, the newest version would be obtained and MHCO would receive a savings of $2,500 annually as compared to its current cost. He stated that a decision would be made by the end of March.

Mrs. Clark reported on the status of the outstanding wills and estates. She reported that an offer had been made and accepted for the Storey property in Woodland, NC. The offer was for $5,000, which was the asking price. She stated that the anticipated closing date would be March 28, 2017. Mrs. Clark reported that the Wilson property in Graham County, NC was sold for $40,000 as per the terms of the will. She stated that MHCO would receive the balance after all costs were paid. She did not have an anticipated date for receipt of the funds. Mrs. Clark reported that the paperwork had been submitted for distribution from the retirement account in the Wiley estate. Mrs. Clark reported that a new will had been received from the Lois Roberts estate. She stated that this estate involved property, life insurance policies, and liquid assets. MHCO was to receive all the proceeds of the estate, except for lifetime rights on two of

3 the houses. The lifetime rights are for two of Mrs. Roberts’ sisters. Mrs. Clark had a request from the attorney handling the estate that Mrs. Roberts’ sister would like to purchase her car and add the purchase price to the monies MHCO would receive from the settlement of the estate. Mrs. Roberts’ sister offered to purchase the 2005 Buick at the tax value of $4870. Mr. David Wicker made a motion to allow the executor to sell the car and add the money to the residuary of the estate. Mrs. Melissa Hogan seconded the motion. All voted in favor.

Mrs. Clark reported that she had received an email from one of the property owners of the Cary property. She stated that the owner was not pleased that we had not listed the property and that she wanted us to move forward with the listing. Mr. Preslar stated the he was still checking into the potential sale of the property. He stated that MHCO was not going to rush into the listing of this property without due diligence. No other updates were available.

Mr. Otis reported that the mediation for the Medlin estate was complete. The settlement entitles MHCO to $300,000. MHCO should receive this amount in the coming months. Mr. Otis commended our attorney, Mr. Trey Duckworth, for a job well done.

Mr. Preslar asked Mr. Otis for the Administrator’s report. Mr. Otis reported that the current census was 62 residents with nine pending referrals. He reported that board orientation was held on February with 13 board members in attendance. Mr. Otis made the following report on the master plan/capital projects:

 On 2/13/17 Tom and Keith Wyllie toured with the Administrator and Maintenance Supervisor the property neighboring the farm gate. The property has several interesting features including a rock laden creek, natural drainage, and low lands. The property extends to the tobacco warehouse. The Wyllies report they are under no specific time frame, but want to sell this property. Keith is the great-great granddaughter of Superintendent Brown and feels selling the property to the home would be proper. They were informed the Board would need an appraisal before going any further.

 On 2/16/17 Representatives from Rising Sun met with the Administrator and Maintenance Supervisor regarding a new or repaired pool. Rising Sun will begin a bidding process and help determine what actions are necessary to construct a new pool.

Mr. Otis reported that a change will potentially be made to the tornado safety plan. The plan will be revised to allow residents and staff to remain in their buildings and to assemble in their emergency areas instead of moving to the food room area in the St. John’s Building. This is a better practice because tornados can develop quickly leaving little time to move to food room. This procedure will be practiced in March.

4 Mr. Otis made the following report regarding specific risk management issues:

 On 2/14/17 a High School resident had an issue at school. As part of the incident the resident reportedly sang, “gonna shoot 12 on campus.” The resident has been excessively non-compliant and exhibited other concerning behaviors. The student was being evaluated by GMC when MHCO determined they could no longer stay on campus due to the risk. OPD was contacted. They were in the vicinity as their belongings were passed on to their mother. The parting was amicable and cordial. OPD was provided identification information to assist with any patrols of if the student acted on their threat.

 On 2/22/17 three children who were discharged against MHCO recommendations were witness to a domestic violence situation. Their mother’s boyfriend was arrested. Due to his illegal immigrant status, he was held without bond. OPD was contacted and provided identification information, should he be released. Staff set up to receive a notice by phone if he was released.

 On 2/23/17 a former employee visited unannounced. This employee has been personally instructed not to visit without being escorted by the Administrator. This was in response to interactions they had with three female employees while visiting in the past. The Administrator informed the former employee that this was not a good day and we would have to schedule any visit. Instead of leaving campus the former employee attempted to enter the print shop. The Administrator addressed the issue directly and directed the former employee to leave campus immediately. OPD was provided identification information in the event of further unannounced visits.

 On 2/27/17 a child’s mother called staff reporting their child had taken their old phone during a home visit on 2/19/17. Permission was given to search for the phone. During the conversation, the mother shared new information about a former boyfriend of hers. The mother said the child might be a risk of the boyfriend contacting her and taking her to the Durham area. The mother gave staff permission to unlock and check the phone for any type of contact. In the course of the phone review, staff discovered several inappropriate and possibly illegal videos. OPD was contacted and the phone was passed on to them. OPD was provided identification information in the event the boyfriend was on campus.

Mr. Preslar asked Grand Master Cobb if he would like to speak to the group. Grand Master Cobb reported that Mr. Otis had recently spoken about child care to the North Carolina legislative committee. He commended Mr. Otis for “a job well done” and stated that he represented The Home well.

5 Mr. Preslar asked if there were any more questions. There being none, he asked that the executive committee members only go into a closed session. He thanked all the other participants and they exited the call. The executive committee went into closed session.

Respectfully submitted,

LuAnne Clark Chief Financial Officer