CENTRAL FALLS DETENTION FACILITY CORPORATION
PUBLIC NOTICE OF MEETING
BOARD OF DIRECTORS MEETING
Central Falls Detention Facility Corporation Meeting Minutes
Monday, June 11, 2018 5:30 P.M.
Wyatt Detention Facility Training Building
935 High Street
Central Falls, RI 02863
TDD/TTY 401-727-7450
A meeting of the Central Falls Detention Facility Corporation was held on the above date in the Training Building at 5:30 p.m.
Call to order/roll call
Present: Interim Chairman Albert Gardner
Director Leonard Morganis
Director Joseph Gonsalves
Absent: Director Agostinho Silva
Pledge of Allegiance
Public Comment: None
Approval of Meeting Minutes from May 14, 2018
Chairman Gardner asked for a motion to approve the minutes from the May 14, 2018 meeting. Director Gonsalves made the motion to accept the meeting minutes and Director Morganis seconded the motion. All board members voted in the affirmative and the motion to accept the minutes from May 14, 2018 passed.
New Business:
Bacon & Company Financial Audit
Patricia Boucher, Bacon & Company Auditor read highlights from:
Pages 1-3 – Significant Audit Findings
Pages 9-10 – Statements of Net Positions
Pages 11 – Statements of Revenues, Expenses and Changes in Net Position
Pages 38-41 – Government Auditing Standards Internal Control and Compliance
Director Morganis asked for clarification of Page 30 – Note 19-Subsequent Events and Note 20-Going Concern Considerations. Ms. Boucher stated that the financial statements were prepared assuming the Corporation will continue as a going concern. The statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result should the Corporation be unable to continue as a going concern.
Director Morganis asked if it was the burden of management to prove that definition to the auditors.
Ms. Boucher stated yes, there were slight wording changes to address that and it is up to management’s evaluation.
Director Gonsalves asked for an explanation of the decrease of assets. Ms. Boucher stated $5.9 million was transferred for capital improvements, reserve fund and operation purposes. Receivables went down as well.
Director Morganis asked at what point the facility will have a clean financial statement and is there a pension study. Ms. Boucher pointed out a modified opinion is up to management to present financial statements that would reflect a change to our opinion. The defined contribution plan, a 401K, is on page 28. The facility has made its 50% match on time.
Acting Chairman Gardner noted Director Silva joined the meeting at 5:40pm.
Director Morganis asked how long Bacon & Company has been doing the financial audits for the Wyatt.
CFO Cuzzupe stated four years and the bid will be going out for renewal this year.
Director Morganis made the motion to accept the Bacon and Company financial audit for the year ending December 31, 2017 and Director Gonsalves seconded the motion. All board members voted in the affirmative and the motion to accept the Bacon & Company financial audit passed.
Report of the Warden
WARDEN’S REPORT
June 11, 2018
| Month | Admissions | Releases | Variance |
| May | 139 | 114 | +25 |
| | YTD Variance | 84 | |
ADP:
Today’s Count: 455 (3:00am)
EOD Count: 457
May ADP: 471
2018 YTD ADP: 443
YTD Constant Observation
May 2018 Hours: 146.5
YTD Total Hours: 577
YTD Est. Wages $12,982.50
FTE: 151 Leaves (15):
The Correctional Officer count is seventy seven (77) active. (a/o: 6/8/2018)
| Title | #Authorized | #Filled | #Vacant | #Active |
| Correctional Officers | 140 | 88 | 52 | 77 |
| Sergeants | 20 | 18 | 2 | 15 |
| Lieutenant | 3 | 4 | 0 | 4 |
| Captains | 5 | 5 | 0 | 5 |
· There was one (1) new hire in the month of May: Fernando Carvallo, HSA.
· There were five (5) resignations/terminations in the month of May: Off. K Chon, Off. W Stone, Off. J Sylvester, Off. B Colon, and A .Woolley (Admin Assistant).
· We are currently recruiting for a full-time Lieutenant, Education Specialist and Administrative Assistant to the Chief of Security.
· Correctional Academy (Class 42): Another Physical Agility Test was hosted on Saturday, June 2, 2018. At this point, we currently have 27 candidates scheduled to begin the academy on Monday, July 2, 2018. We will be running a second group which tested on May 12th and will report for interviews next week.
· We had an increase in sales with Fresh Favorites from 531 to 667 in the month of May.
· We had an increase in sales for I-Care from 203 to 222 for the month of May.
· We had a decrease in sales for Commissary from 4,424 to 4,057 for the month of May.
COST SAVINGS:
· We continue to work on cost savings throughout the facility in all departments. Warden Martin will personally review all current contracts.
· National Grid and Rise Energy have finished the third stage of switching lighting over to LED fixtures throughout the non-security areas. Potentially looking into a new project to include the Training Center and to finish all non-security areas.
· A new hire for maintenance has been completed. Eric Martins started June 4th.
· Currently evaluating the potential of using telepsychiatry which may provide the potential of a higher level of service at a lower cost.
CAPITAL PROJECTS:
· The Fence Project has started and footings for posts and berm wall have been poured, the exterior fence posts are installed and the project is progressing well and still on schedule to be completed in 8-10 weeks.
· Warden Martin and Mr. Graves are working on getting the camera project back on line.
OUTREACH/NETWORKING:
· Monthly meetings with the Central Falls Coalition continue to be attended by HR Director Maggie Ramos.
FACILITY INFORMATION
· Female Detainees have been coming into the Facility from all three Districts. The female count in I-POD is currently 18.
· The facility is pursuing the RFP that was sent out by the Vermont DOC for Out of State beds. We should hear something in the next few weeks.
· We are working on a corrective action plan for areas noted in the QAR Audit close out. No final report has been received at this time.
SIGNIFICANT INCIDENTS:
| 05/08/18 | 2 | | 18-0546 | Dt placed on Constant Ob Watch after stating he would kill himself if locked down for making disrespectful comments toward the MH counselor. |
| 05/11/18 | 2 | | 18-0559 | Dt transported to Miriam Hosp. for evaluation of possible kidney stones. |
| 05/17/18 | 2 | | 18-0579 | Dt transported to Miriam Hospital for evaluation after not eating for 7 days and was weak and dizzy. |
| 05/21/18 | 1 | Code Green/ Unsecured Door | 18-0627 | Code Green/Unsecured Door - K-Pod Roof Hatch found unsecured via the control room computer. Emergency lockdown initiated and emergency count conducted. |
| 05/21/18 | 2 | | 18-0591 | Dt placed on constant ob in HSU after RN Fox noticed cuts on his wrist. |
| 05/23/18 | 2 | | 18-0603 | Both dts involved in a physical altercation. Minor scratches and cuts. |
| 05/23/18 | 2 | | 18-0606 | Dt placed on constant Ob after RN Rei was informed at med intake that he had suicidal tendencies when he was younger, has anxiety issues around people and does not leave his cell for food. |
| 05/28/18 | 1 | Code Green | 18-0626 | Officer initiated a Code Green/Unsecured Door due to loading dock swing door left unsecured. Escape protocol in effect and bed book count conducted. |
Chairman Morganis asked how many Code Green incidents has the facility had. Warden Martin stated that this was a first. Preventive maintenance will be conducted. The doors are secure, but not showing on the Control indicator light. Chairman Morganis asked if this will be added as part of the security check going forward. Warden Martin stated that checking the doors are part of our security check, and we have preventive maintenance scheduled. Director Silva asked if detainees were able to access the unsecured doors. Warden Martin explained the unsecured doors were on the loading dock and roof. No detainees had access to those areas. It was agreed among the Board members to be notified of any future Code Green incidents only if the incident was identified and there was a problem to correct it. Warden Martin stated we will follow the appropriate process for a Code Green.
Director Silva asked for a definition of termination. The Warden explained that all the terminations were voluntary. One was allowed to resign. The main factor for so many terminations was the excessive overtime. The average officer is working 60 hours a week with 20 hours of overtime.
Chairman Gardner asked for a motion to approve the Warden’s Report. Director Silva made the motion to accept the Warden’s Report and Director Gonsalves seconded the motion. All board members voted in the affirmative and the motion to accept the Warden’s Report passed.
Report of the CFO
The following is a brief summary of the financial results for Central Falls Detention Facility Corp. for the period ended April 30, 2018.
REVENUE
Total revenue for the month was approximately $1.7 million dollars.
Revenue for the month was favorable to budget by $292,000 thousand dollars. The budgeted Average Daily Population (ADP) was 425 for the month compared to the actual population of 455.
YTD Revenue is $6.0 million dollars which is $552,000 thousand dollars favorable to the budget.
OPERATING EXPENSES
Total operating expenses for the month were approximately $1.6 million dollars which was $98,000 thousand dollars favorable to the budget.
Salaries and Fringe
Total salaries and fringe expenses were approximately $1.2 million dollars which was $39,000 thousand dollars favorable to the budget. This was attributable to higher payroll taxes and benefits expense of $12,000 thousand dollars and a net decrease in wages of 51,000 thousand dollars.
Inmate Care Expenses
Total inmate care expenses were approximately $110,000 thousand dollars and were $46,000 thousand dollars favorable to the budget. This was due to the following expenses being lower than anticipated: medical supplies of $8,000 thousand dollars, professional services of $18,000 thousand dollars (we did not incur expenses related to outsourcing our mental health services that were budgeted for), clothing and uniform expenses of $2,000 thousand dollar and detainee food service expenses of $26,000 thousand dollars. As part of an agreement reached with Aramark $25,000 thousand dollars of our accrual balance was used to pay outstanding invoices. Inmate linen expenses increased $8,000 thousand dollars due to a new program of linen exchange being implemented.
Direct & Administrative Expenses
Total direct and administrative expenses were approximately $105,000 thousand dollars and were $7,000 thousand dollars unfavorable to the budget due to higher than expected legal fees of $8,000 thousand dollars (Bondholder legal fees were higher by $6,000 thousand dollars and in house legal was higher by $2,000 thousand dollars). There were lower than anticipated vehicle repairs & maintenance expenses of $1,000 thousand dollars.
Insurance Expense
Total insurance expenses were approximately $48,000 thousand dollars on budget.
Building & Utility Expenses
Total building and utility expenses were approximately $117,000 thousand dollars and were $20,000 thousand dollars under budget due to building repairs and maintenance expenses being lower.
OPERATING INCOME
Operating income for the month was $97,000 thousand dollars which was $390,000 thousand dollars favorable to the budget. The increase was the primary result of the lower than expected operating expenses of $98,000 thousand dollars and the increase in revenue of $292,000 thousand dollars.
NON-OPERATING REVENUE/EXPENSE
Non-Operating Expenses for the month were $794,000 thousand dollars and were $3,000 thousand dollars favorable due to depreciation expenses being lower than expected.
CHANGE IN NET ASSETS
Change in net assets for the month was a decrease of $697,000 thousand dollars compared to a budgeted decrease of $1.1 million dollars.
CASH
The following are the cash balances in the trustee accounts as of Aril 30, 2018:
| UMB BANK | | |
| General Revenue Fund | $ 37 | |
| Debt Service Fund | $ 41,906 | |
| Debt Service Reserve Fund | $ 29,494 | |
| Capital Improvement Fund | $ 0 | |
| Operations & Maintenance Fund | $ 0 | |
| Fees & Expenses Fund | $ 114,323 | |
| Bondholder Account | $ 833,650 | |
| Special Capital Expense Reserve Fund | $ 641,706 | These funds were set |
| Special Operating & Maintenance Fund | $ 140 | per the Amendment #1 & # 2 to the Forbearance Agreement |
| BANK OF AMERICA | |
| Operations & Maintenance | $ 62,353 |
| Vendor Payments | $ 183,102 |
| Payroll | $ 31,382 |
Director Morganis asked CFO Cuzzupe to add a column for previous month balance to be able to compare figures. CFO Cuzzupe agreed to add the column.
Interim Director Gardner asked if we have forwarded the fence bill to the U.S. Marshals.
CFO Cuzzupe stated that we have paid the fence company from the money received from the Bondholders, but have not yet sent the invoice to the U.S. Marshals. The fence company does not split the bill. The reimbursement from the U.S. Marshals will be placed in our capital projects fund.
Interim Director Gardner asked for a motion to approve the CFO’s Report. Chairman Gonsalves made the motion to accept the CFO’s Financial Report and Director Silva seconded the Motion. All board members voted in the affirmative and the motion to accept the CFO Report passed.
Executive Session pursuant to R.I.G.L. § 42-46-5 for the following purpose:
A. R.I.G.L 42-46-5(a) (2) to discuss litigation and potential litigation matters.
B. R.I.G.L.
Interim Chairman Gardner asked for a motion to move into Executive Session to discuss the above mentioned items. Director Morganis made the motion and Director Silva seconded. All board members voted in the affirmative and the motion passed. The meeting was moved into Executive Session.
Chairman Gardner asked for a motion to return to open session. Director Morganis made the motion, Director Gonsalves seconded the motion. All board members voted in the affirmative and the motion passed. The meeting was moved into open session.
Interim Chairman Gardner confirmed that no votes were taken in executive session. A motion to seal the minutes from executive session was brought forward. Director Morganis made the motion and Director Gonsalves seconded the motion. All board members voted in the affirmative, the motion passed and the minutes were sealed.
Interim Chairman Gardner asked if there were any matters to be brought to the Board before we adjourn.
Warden Martin informed the Board that Mr. Cuzzupe has resigned and accepted a position in Massachusetts. We will need a discussion on changes to that position before it is posted.
Interim Chairman Gardner informed the group that he would be out of town from June 16th to the 23rd, but the Board will touch base with Warden Martin before the next Board meeting to discuss the CFO position.
Director Morganis volunteered his services to help in the search for a new CFO and with the interview process.
Interim Chairman Gardner stated that on behalf of the Board, we thank Bob for his services and wish him well in his new endeavor.
Chairman Gardner asked for a motion to adjourn the meeting. Director Morganis made the motion and Director Silver seconded the motion. All board members voted in the affirmative and the motion passed. The meeting was adjourned at 6:35pm.