State officials will not be looking for a new contractor to provide services for approximately 80 developmentally delayed adults in Carroll County. On February 28, the State of Tennessee, Department of Finance and Administration for the Division of Mental Retardation Services gave approval to the H.O.P.E. Center, an acronym for Helping Our People Excel, to continue providing the services. As a proviso, the Department of Mental Retardation Services wants a monthly accounting of the Center's finances.

In a letter dated February 7, the Division of Mental Retardation Services warned the Center of "ongoing, serious internal control problems and severe financial difficulties...After meeting with the auditors, I have concluded that your agency's critical financial problems, if not successfully addressed immediately, will result in adverse consequences for persons served by the agency." They indicated that the Center's expenses exceeded revenues by $25,000 monthly. The State threatened to "terminate our contract with you and seek other providers to assume the responsibility for service provisions to the individuals served by H.O.P.E. Center," wrote Sandra Sturgis, interim deputy commissioner.

The HOPE Center's board of directors met in several meetings to address the issues facing the center and offered a plan of action to address the internal control issues and the monthly operational deficit. The plan included the reduction of employee staff and center-paid insurance benefits, requiring the employee to pay more of the health insurance premiums, a $5,000 reduction in annual salary to Barbara Gray, the executive director of the center, hiring an accountant as the center's business manager, and restructuring the "pool" loan - reamortizing it to a 18-year loan. The final move dropped the monthly payment from $7,800 to just $1,640 monthly. The interest rate will remain constant at 5.45 percent. Other control measures will also be implemented.

The board of directors was reluctant to extend the pool loan to 18 years. John Baumgardner with Carroll Bank and Trust said the extension of the loan would assure adequate cash flow for the center. Although Carroll Bank does not hold the long-term note, the local bank does provide short-term financing. Baumgardner said Carroll Bank and Trust supports the center and its programs, but would have to deny future financing unless the long-term note was refinanced.

Speaking of the H.O.P.E. Center, Mr. Baumgardner said, "It is one of the finest programs serving some of the most deserving individuals." He urged board members to be responsible and pay back the long-term note as soon as possible. Mrs. Gray hopes the center can achieve a level of financial balance within six months.

The Center has approximately $45,000 in overdue accounts payable and is presently paying an $4,500 monthly assessment on overdue payroll taxes to the Internal Revenue Service.

On the other side, the State owes the Center approximately $19,000 in past due billings.

In the February 28 letter, the State requires the Center to provide monthly financial reports including income statements, balance sheets, cash flow summaries, aged accounts receivable reports, a monthly review of payroll, payroll taxes, and employment health and retirement contributions, among other reports. The State also recommended that payroll service be considered to manage payroll, taxes, and employee benefits.

"During the next year, DMRS will provide close oversight of your program quality as well as your financial position," stated the February 28 letter. "Should these reviews or other issues be brought to our attention that would cause us to question H.O.P.E.'s ability to continue, we will re-evaluate our decision to continue contracting with you for services."

In conclusion, the letter reads, "We very much hope that your agency will be successful in stabilizing your agency's financial position and be able to continue to provide services to the individuals in your community."
 

Approximately 160 Murray employees are still on the job at the McKenzie manufacturing facility even though the plant was scheduled to close permanently January 31. An additional 14 employees were called back to work this week and could possibly be employed through May they were told.

Russ Woodyard, Murray's Vice-President of Human Resources at corporate headquarters in Brentwood, confirmed the employees in the weld, paint, and assembly departments continue to work two shifts daily and some Saturdays.

"Orders continue to come in that need to be filled," said Mr. Woodyard, who noted however that the continued employment would be temporary. "The plant will close as planned, but just not as soon as anticipated," he added.

The approximate 160 employees still on the job March 1 received a letter from company President James C. Pelletier which read in part, "In accordance with the Workers Adjustment and Retraining Notification Act of 1988, Murray has given you notice of the plant closure in McKenzie on March 1, 2002. The WARN Act also allows a company to extend work beyond the original closure date. Murray will extend your notification of last day worked from March 1, 2002 until March 15, 2002. This action is necessary because of the need to continue with your specific job assignment to meet our customers' demand for product."

Woodard confirmed Friday that some employees will be on the job for an additional two weeks, while some could be employed for several months.

Woodyard noted the extended work schedule was necessary to complete orders the company currently has for go-carts.
 

• Granted the Knights of Columbus permission to conduct a roadblock for the collection of funds in coordination with the McKenzie Police Department;
• Passed Ordinance No. 379, Financial Responsibility Law, on second reading;
• Heard a re-cap of prior discussion on the possibility of family medical insurance for City employees.
• Approved the letting of bids to pave College Drive;
• Granted permission for the McKenzie Fire and Rescue Department to purchase a vehicle from state surplus at a cost of between $4,000.00 and $4,500.00 while selling the vehicle now in use by Fire Department Chief Larry Cook; and,
• Approved the payment of bills as follows: Barge, Waggoner, Summner and Cannon - $27, 412.20, and Riley Construction Company - $38, 857.28, for a total of $66,269.48.

Phone (731) 352-3323 or Fax (731) 352-3322
washburn@mckenziebanner.com