McHenry County Blog

McHenry County Board Chairwoman Tina Hill got her way on who will be appointed to the McHenry County 708 Mental Health Board Tuesday night.

But she backed away from dumping Sandy Salgado from the Public Health and Human Services Committee and replacing her with fellow District 4 Board member Bob Martens.

At the beginning of the meeting, Hill gave her version of what happened leading up to the public controversy on which her opponents framed the issue because none of Hill’s supporters explained on the Board floor why they rejected the Committee’s recommendation.

The vote was 16-8 for Ferguson, about the same as the 18-6 vote Hill enjoyed when her coalition defeated the nomination of former McHenry County College Board President Scott Summers two weeks ago.

Hill explained that she started to get questions about what the Committee was doing, about the 4-3 vote and the Executive Session [for discussing the qualities of the nominees].

When the Committee nomination failed 18-6, Hill said she knew that had to do something.  Those are not her exact words, but I believe them to be a fair representation of what she said.

Because she moved immediately after the vote two weeks ago to assert the power given her by State law to make the nomination herself, however, it was obvious that the move was previously planned and not a reaction to the vote.

There was lots of talk about conspiracy, with those who voted with Hill two weeks ago denying it and Mike Walkup wondering if a cover-up were occurring.   He said that was the public perception.

“If we’re not,we’re doing a pretty good job of [making it look like one is],” he said.

Walkup also said that he had heard that Hill had met with Interim 708 Board Executive Director Todd Schroll.

“If conversations like that can happen, that’s a really big problem…having the person [being hired helping pick the person who will pick the Executive Director].

Walkup told of other counties that have “a boss system.”

“We’re now sliding in the direction toward a boss system.”

He and others argued that financial acumen was what was needed now on the 708 Board. while supporters of Ferguson praised her knowledge of the care giving side of mental health services.

Hill said she had called Salgado and “offered her an apology.”

“I never thought there was a conflict-of- interest,” Hill asserted, although Northwest Herald reporter Kevin Craver reported that having Salgado employed by as agency (Pioneer Center) which got money from the 708 Board was “the epitome of conflict of interest.”

“I meant the appearance of impropriety,” Hill said Tuesday night.

“I agree with the State’s Attorney there is no conflict of interest.”

Later in the meeting Diane Evertson seemed to startle Hill when she inquired if Hill might have a conflict-of-interest.

“You mean that my son receives services [from Pioneer Center]?”

“That’s the exact question that we have with Ms. Salgado and Jim Heisler.”  [Heisler's wife works for Pioneer Center.]

Assistant State’s Attorney Donna Kelly was asked for her opinion.

“That’s the first I’ve heard of this,” she replied from the audience.

Hill seemed incredulous, asking how one could “construe that Cathy would do my bidding.”

“You recommend a candidate who funnels money to an organization where your son receives services,” Evertson replied.

“Don’t you see a conflict?”

“No,” Hill replied.

Those supporting Hill’s nomination for Crystal Lake City Councilwoman Cathy Ferguson follow:

• Michele Aavang
• Sue Drafkorn
• Joe Gottemoller
• Jim Heisler
• Tina Hill
• John Jung
• Ken Koehler
• Bob Martens
• Mary McCann
• Mary McClellan
• Anna May Miller
• Bob Nowak
• Nick Provenzano
• Sandy Salgado
• Carolyn Schofield
• Paula Yensen

Those not supporting Ferguson’s nomination were

• Yvonne Barnes
• Nick Chirikos
• Diane Evertseon
• John Hammerand
• Donna Kurtz
• Ersel Schuster
• Mike Skala
• Mike Walkup

Moving out of the Hill coalition of two weeks ago were Yvonne Barnes, Ersel Schuster and Mike Skala.

Moving into it by supporting Ferguson was Sandra Salgado.

Ah.

The rumor mill.

Maybe there will be fewer fireworks at tonight’s McHenry County Board meeting than most folks think.

The rumor of the hour (just confirmed) is that McHenry County Chairwoman Tina Hill is reconsidering her resolution to replace McHenry’s Sandy Salgado with Spring Grove’s Robert Martens.

Both represent District 4.

Hill has argued that Salgado has a conflict of interest because the agency that employees her, Pioneer Center, receives money from the 708 McHenry County Mental Health Board, whose members are recommended by the Public Health and Human Services on which she serves.

Hill has put on the tonight’s County Board agenda a resolution that has Bob Martens replacing Salgado.

Generally the Northwest Herald is quite protective of establishment figures in McHenry County.

But Sunday’s editorial calls out McHenry County Board Chairwoman Tina Hill out in no uncertain terms for her 708 Board nomination bypass of the Public Health and Human Resources Committee.

The editorial says she comes off “as heavy-handed and power hungry, and the move raises questions about her motivations.”

And the NWH advises members to vote against Cathy Ferguson, Hill’s choice to fill a vacancy on the McHenry County Mental Health Board, because of Hill’s circumvention of the committee process.

With regard to Hill’s intention of replacing Pioneer Center Sandy Salgado with former Family Services Executive Director Bob Martens, the editorial writers conclude,

“If Salgado’s representation on the Public Health and Human Services Committee is a conflict, certainly Martens’ is as well.”

Tonight’s “Best Show in Town” begins at 7 in Woodstock’s McHenry County Administrative Center.

With McHenry County Chairwoman Tina Hill labeling Sandra Salgado’s service on the the Public Health and Human Services Committee “The Epitome of Conflict of Interest,” Fox River Grove Republican Precinct Committeeman has written a story entitled,

“The Epitome of Conflict of Interest” – Backroom Politics

Hill bases that characterization on the fact that Salgado works for Pioneer Center and Pioneer Centers gets financial support from the 708 Mental Health Board, whose Board members the Public Health Committee recommends.

[Of course, the last recommendation, Scott Summers was rejected by the Hill followers listed below on the County Board:

[Those opposing the nomination were

• Michele Aavang
• Yvonne Barnes
• Sue Drafkorn
• Joe Gottemoller
• Jim Heisler
• Tina Hill
• John Jung
• Ken Koehler
• Bob Martens
• Mary McCann
• Mary McClellan
• Anna May Miller
• Bob Nowak
• Nick Provenzano
• Ersel Schuster
• Carolyn Schofield
• Mike Skala
• Paula Yensen

In favor were

• Nick Chirikos
• Diane Evertsen
• John Hammerand
• Donna Kurtz
• Sandy Salgado
• Mike Walkup

[And the last recommendation of Donna Kurtz' Committee--after Hill announced that she would bypass the Committee--Jeff Thorsen, was not even placed on tonight's County Board agenda.  She has recommended Cathy Ferguson, a colleague of Thorsen on the Crystal Lake City Council.]

With that as background, Gasser’s conclusion might be of interest.  Playing off Hill’s “epitome of conflict of interest” statement, Gasser concludes

“The real conflict of interest is Hill’s nominee of former Family Services & Community Mental Health Center for McHenry County CEO and current board member Bob Martens (Spring Grove).”

Why?

He points to what he calls about a $140,000 “Golden Parachute” for Martens when he was listed as “Former CEO” of  the Family Services and Community Health Center for McHenry County.   (He found that information on the agency’s IRS Form 990.)

Gasser continues,

“This same year the McHenry Mental Health Board gave a loan to Family Services & Community Mental Health Center for McHenry County $719,981 when no other lending institution would do so because of the risk.”

Gasser then asks a series of questions that readers might find of interest.

One of them has to do with the August 2012 collapse of Family Services after Martens retired and while he was one of four GOP candidate for County Board in District 4.

Gasser asks,

“Should this person really be the liaison between the county board and the Mental Health Board?”

There is more, but, again, I suggest you go to the source of this story on Andrew Gasser’s blog.

As mentioned previously, replacement of Salgado with Martens will change the balance of power on the Public Health Committee.  It will put Hill loyalists in control by a 4-3 margin.

For 708 Board purposes, that means that Hill can name replacements for the two seats whose terms expire January 1, 2014, without bypassing the committee for a second time:

• Vice President Brett  Wisnauski
• Secretary Connee Meschini

Ferguson’s term, if approved, would expire at the same time.

The meeting at which Hill’s replacement recommendation will be considered in tonight at 7 PM in the building north of the McHenry County Jail.

Those who read my article yesterday entitled,

708 Board Staff Outlines Audit Alternatives – “Audit…Might Be Very Damaging”

might have guessed I might have had something to say in public comment.

And I did.

I read the outlined part of the report that I emphasized in the article.

Having spent six years on the Legislative Audit Commission and reviewed hundreds of audits, I told the committee members, if I saw the head of an agency making such a recommendation that I would have demanded the most extensive audit possible.

I told the members that I hoped they would vote for a real audit.

Interim Executive Director Todd Schroll said that the memo was “not a true representation of my intent.”

He said, “It’s all about making sure we’re auditing the right things.”

Schroll pointed out that figures existed not only at the 708 Board, but also in County government.

Former Crystal Lake School District 47 Board member Rob Routzahn explained that he had talked to auditors and “the message I hear is to “ignore the county…to make this an audit of how [we're doing things].”

He said the Request for Proposal should be “really crisp about what we want to accomplish with the audit,” but that the Board should be open to modifications suggested by auditing firms.

Routzahn said the Board needed to “hedge against ‘We don’t know what we don’t know.’”

He was emphatic that the audit should not be an internal audit, but an external audit.

“We don’t want to be seen as steering the audit.”

“I agree with Rob,” subcommittee chairman Don Larsen said.

Schroll pointed out that they would not be auditing “the official numbers.”

“There’s not a fear of something wrong,” he added.

“If you remove the county from the picture, you remove separation of duties,” warned Fiscal Operations Manager Jane Wacker, a CPA.

“It’s one of checks and balances,” former Vice Chairman of the County Board Larsen agreed.

“None of this conversation should be considered as resistance to an audit,” Schroll said.  “They’re not coming to do a standard audit.  They’re coming to perform a blended audit.”

The third member of the Finance Committee, Connee Meschini then weighed in:

“I like a high audit like Cal said on the Mental Health Board not the County…and be open to what an auditor would say or affirm.”

Routzahn suggested that later, the Board might “want to do a procedural or operational audit, [but] let’s get out arms around the numbers first.”

He pointed out that the District 47 Board met with auditors without administrators in the room, asking other things the auditors had observed that were not in the audit or the management letter.

“They know when they see when  there’s something not right.”

Then Routzahn dropped this opinion:

“I do not think we should have a McHenry County [based] auditor.”

“That’s contrary to what we usually do,” Larsen pointed out.

Routzahn said he wanted the audit “so far above reproach, passing the sniff test for the public and me.”

The members voted 3-0 to present their idea at the next 708 Board meeting.

Below you will see McHenry County Board Chairwoman Tina Hill’s letter to Board members about her recommendation of Crystal Lake City Councilwoman Cathy Ferguson to the 708 Mental Health Board.

The County Board’s Public Health & Human Resources Committee, chaired by Donna Kurtz, voted to recommend Crystal Lake City Councilman Jeff Thorsen, but, immediately thereafter Hill said that she would not put Thorsen’s to a vote before the County Board.

Thorsen is a finance guy.

He is a banker who has a Master’s Degree in Business Administration.

Ferguson is a counselor who handles drug abuse, among other problems.

She talked a little about that when she voiced her opposition to decriminalizing marijuana in Crystal Lake (giving tickets where the city would get the money, rather than running criminal cases through the court system in which the city does not benefit financially.)

She said she thought the issue was important because marijuana was a gateway drug.

The following is contained in a memo about audit request for proposals from Interim Executive Director Todd P. Schroll to the McHenry County 708 Mental Health Board Finance Committee, which will meet Thursday afternoon at 3:30 at the Crystal Lake office:

Based our analysis and consultation with Grant Resources LLC, we note three potential options:

1. Expand the scope of the Financial Statement Audit to provide for reports on specified elements in the areas of

• management
• process/system
• risk/compliance
• information technology.

This is the most comprehensive solution.

It may also be the most expensive option and take more time and effort than a more focused approach.

2. The MHB can first engage in a series of separate audits of the specific elements.

These would typically be evaluated separately and required to be completed (to the extent necessary) in the early stages of a financial audit.

After the Board receives the results of these separate audits, it can decide whether it wants to expand the project to a full financial statement audit.

If systems and internal controls were found to be lacking, the organization could implement changes that improves the organization and enhances the reliability of the financial data. Although it could be less expensive than option number 1, it may be the least optimal solution as it would require more formalities than option number 3 without providing any additional substantive information.

3. The MHB can engage these projects separately as internal audit consulting projects whose findings can be used if the Board decides a full audit is necessary. An “audit” carries risk at a high cost so one may consider the internal control and systems “audits’ to be consulting projects with the organization, forming an internal audit committee, who will drive and own the responsibility for improvement, without causing formal documentation that could be negative. [emphasis added here and below.]

Facilitating “audits” in this manner is more strategic and minimizes the risk to the directors and board. Viewing this as a collaborative effort, initially, is probably best versus asking for an “audit” that might be very damaging in its content and very expensive to perform.

It is the staff’s recommendation to explore option #3 in more detail. This strategy allows an auditor/vendor to work collaboratively with the Board to focus more specifically on the specific elements, with a specific focus on financial reporting and management through the use of a supplemental system.

Initial analysis of the County audit, as well as a potential exploration of specific areas of interest with a higher level of materiality, may be more feasible, achievable, and initially cost effective.

Newly-sworn in Algonquin Township Trustee Larry Emery is the second Republican Precinct Committeeman to weigh in on what he saw at Tuesday’s McHenry County Board Public Health and Human Services Board meeting.

You can read his story here.

The article is entitled,

To Serve or to Politic, that is the question. 708 Board

Emery asked “the committee focus on a candidate that would support transparency, measurable goals match to the 708 board mission statement, and job descriptions match required needs to achieve the measured goals.”

He tells of the 4-0 vote to nominate Crystal Lake City Councilman Jeff Throsen for the vacancy (created after the County Board voted 18-6 against Scott Summers–with none of Summers’ opponents saying a word as to why they were voting, “No.”)

He reports County Board Chairwoman Tina Hill’s answer when asked whether she would put Thorsen’s name on the agenda.

Looks as if there will be anther article about the 3:30 PM meeting of the McHenry County Mental Health Board at its Crystal Lake headquarters on Thursday.

Fox River Grove Republican Precinct Committeeman Andrew Gasser was at mid-day the Public Health & Human Resources Committee meeting and wrote an article.

He ends his first paragraph with

“So much for transparency.”

Commenting on Crystal Lake City Councilman Jeff Thorsen’s nomination, he wrote,

“This is the second candidate put forward by the PH&HS Committee who has a strong business and financial background which is so desperately needed on the McHenry County Mental Health Board (McMHB).”

Read Gasser’s whole article, as well as McHenry County Blog’s, as well as Kevin Craver’s in the Northwest Herald.

The McHenry County Mental Health Board posted its agenda Tuesday for Thursday’s 3:30 PM meeting, but the links to materials to be considered are barren.

And, if you didn’t get an email with the agenda linked, here is what you would see on the 708 Board agenda page maintained by the McHenry County Board: