Commissioners in attendance: Ann George, Doug Muse, Herb Teas, Tedd Wildman
Staff in attendance: Alan Schreiber, Donna Gorham

Chair Muse called the teleconference to order at 8:30 a.m.

Administrator Schreiber provided Commissioners with the background on the amended fiscal year 2002 Letter of Agreement between WSU and WSCPR and asked Commissioners if they had received the facsimile of the amended Letter of Agreement. Commissioners responded they had received the facsimile. The original fiscal year 2002 Letter of Agreement was similar to the previous fiscal year 2001 agreement, with dates and dollar amounts updated and no other changes. The original fiscal year 2002 Letter of Agreement was signed by Chair Muse in May, 2001 and sent to WSU. On July 27, 2001, Administrator Schreiber received the amended fiscal year 2002 Letter of Agreement. Administrator Schreiber faxed the amended Letter of Agreement to Richard McCartan, in the Attorney General's office, for review. Richard McCartan did not identify any concerns with the amended agreement. Administrator Schreiber met with Chair Muse the week of August 6, 2001 to discuss the amended Letter of Agreement. Kurt Volker, WSCPR Commissioner, also reviewed the amended Letter of Agreement on August 15, 2001 and recommended the Executive Committee review the amendment. Administrator Schreiber noted the amended Letter of Agreement is the same except for the last two points; point one puts in writing what WSU does for the Commission currently. Administrator Schreiber stated his opinion on point two was that WSU was saying they were not responsible or accountable for matching or in-kind funds and was in response to the Commission telling WSU the Commission did not want to hold matching funds to the same standard as other funds. Chair Muse asked if Commissioners had read point two. Commissioners responded they had read point two. Chair Muse stated Kurt Volker had brought up something he and Administrator Schreiber had not noticed. Kurt Volker had observed that the language of the amendment could be interpreted that ADG, Inc accepts responsibility for accounting and tracking matching moneys. Herb Teas noted it was difficult to see how WSU would put the two accounts together between ADG and WSU. Administrator Schreiber stated he was not sure what the amendments mean exactly, that the Commission wanted to keep the accounting process for matching funds as it is now. Administrator Schreiber noted the Commission has a current motion from a previous Commission meeting to ask the Attorney General's office for an official opinion on the responsibility for matching funds. This proposed amendment makes it more critical to get to the Attorney General's opinion. Administrator Schreiber stated he feels responsible and accountable for tracking matching funds and added Kurt Volker commented he felt the amendment should state the Commission is responsible and accountable and that leaving the language as is could bring about a scenario forcing ADG, Inc to come up with funds. Tedd Wildman commented if the amendment reads as just the Commission, then what is the meaning to the Commission and what are the ramifications. Tedd Wildman noted the last sentence is so open ended any attorney would have a heyday with this and could run right over ADG, Inc. Administrator Schreiber stated the ramification with the amendment unsigned is that WSU is holding payment of administrative fees until the amendment is signed. Administrator Schreiber felt the full Commission should review the amendment, however, with the time involved to bring to the next Commission meeting, Administrator Schreiber and Chair Muse decided to act sooner.

Administrator Schreiber indicated he saw two options at this time: sign the amendment as is, or rewrite the amendment and return it. Administrator Schreiber asked Ann George if she would sign the amendment as is. Ann George replied she was trying to think of an audit exception that would affect funding and did not know what WSU is referring to that would cause a reduction of funds. Herb Teas indicated he felt the language should be changed to read co-funding but the rest of the amendment does cause him concern. Administrator Schreiber stated the Commission should not be accountable for another organization backing out on match funding. Herb Teas agreed. Ann George noted there is nothing in the law or appropriation language that impacts matching. Ann George offered to talk to a regional representative of the State Auditors office to get an opinion. Administrator Schreiber agreed to discuss this with the State Auditors office to clarify to what level the Commission is responsible and accountable for matching funds. Ann George noted she would get back to Administrator Schreiber today with an answer or put him in touch with the appropriate representative of the State Auditors office. Administrator Schreiber noted he would be leaving on a business trip to Japan on August 24 and hoped to resolve this issue before his departure. Ann George noted she would be out of the office for the week of August 20-24 and gave her proxy to Chair Muse and Herb Teas to resolve the issue. Tedd Wildman agreed to the proxy and stated the issue needs to be resolved soon, and he would be available by phone today. Administrator Schreiber noted he would contact Richard McCartan by phone today.

Chair Muse adjourned the teleconference at 8:50 a.m.

Return to the Minutes Page

Return to WSCPR