Hospital District Board Majority approves to exempt Board from District Travel Reimbursement Policies
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.
A Maverick County Hospital District (MCHD) Board of Directors majority approved to exempt the Board members from the local hospital district’s established policies and procedures for travel reimbursement expenses which have been in place since May 27, 2010 at their special meeting held on August 11, 2014. Board President Juan Manuel Farias, Secretary-Treasurer Humberto Duran, and Joaquin L. Rodriguez voted in favor while Board member Ricardo E. Calderon opposed the exemption. Board Vice-President Rito J. Valdez, III, was absent from the meeting due to a scheduling conflict with his Maverick County Treasurer duties as Maverick County Commissioners Court simultaneously held a meeting as the Hospital District, which required his presence.
The issue first arose at the Board’s July 30, 2014 regular meeting which called for “Discussion with possible action to reimburse Maverick County Hospital District business expenses incurred (ie. Mobile phone allowance and mileage) by Board members.” At the July 30th meeting, Board member Calderon asked if any Board member was asking for reimbursement of business expenses, which CEO Terri Contreras answered that Board President Farias was requesting reimbursement. Calderon noted that no written documentation had been provided to the Board with this agenda item. Board President Farias stated that prior to Calderon joining the MCHD Board (November 2012), the MCHD Board had approved that Farias be reimbursed for this travel expenses from Austin, Texas to Eagle Pass whenever he attended a meeting to make a quorum. Calderon motioned that the agenda item be tabled so that the Board can be provided with the appropriate documentation and the Board approved to table the item. Calderon requested that the Board be provided with the District’s written policy for travel and business expenses reimbursement to review.
After the meeting, Calderon submitted a written request to MCHD CEO Terri Contreras and Board President Farias for public records regarding a copy of the Agenda, Minutes, and Audiotape of the MCHD Board of Directors meeting wherein the Board had approved to reimburse President Farias for his travel expenses from Austin, Texas to Eagle Pass whenever he attended Board meetings to make a quorum and any requests for reimbursement for travel and business expenses made by President Farias or any Board member to the MCHD together with a copy of any MCHD check for any reimbursements. As of press time, these public records have not been produced to Calderon and the MCHD Board declined to approve the production of these public records at its August 11th meeting.
The issue was placed on the Agenda again at the August 11th special meeting with a different title than the July 30th regular meeting now calling for “Discussion with possible action to approve policy regarding Maverick County Hospital District business expenses incurred (ie. Mobile phone allowance and mileage) by Board members.”
At the August 11th special meeting, CEO Terri Contreras stated that reimbursement for travel expenses by the Board of Directors was allowed under the state statue which created the District but does not provide a procedure for how to do it.
“We had put this item on the agenda previously because we had some trustees that had been incurring costs in carrying out their duties and responsibilities for the hospital district. As noted here it is part of our legislation and it is part of our bylaws. What we did state is that we wanted to create a policy. We have had a couple of policies in place, 100.23, in regards to travel policy for hospital district board of directors and staff. Also policy 100.21 mentions mileage and cell phone reimbursement, we have that for employees and we simply modified that to include a process for reimbursement of expenditures for trustees,” said Contreras.
The MCHD policies for travel reimbursement (100.23) and mileage and cell phone use reimbursement (100.21) have been in place at the Hospital District since May 27, 2010 and January 20, 2011. These MCHD policies were adopted and implemented by former CEO Elcira Bares to comply with General Accepted Auditing Standards, noted Contreras.
Calderon asked CEO Contreras if prior to the July 30, 2014 Board meeting were there any reimbursement requests on behalf of Board Chairperson Juan Manuel Farias .
Farias quickly intervened and stated that he didn’t think so.
Contreras replied that there were some reimbursement requests for expenses and just so they could make sure that if any trustee, when they wanted to get reimbursed, there is a procedure.
Contreras then stated that there was currently no request for reimbursement pending.
Contreras also stated that there had been one request processed but not currently.
Board President Farias then intervened and stated that he had requested a reimbursement for an emergency trip he had to make back to Eagle Pass from Austin, Texas to allow the MCHD Board of Directors make a quorum for a meeting.
Calderon then asked Contreras if the policies (100.23 and 100.21) had been approved by the Board, yet.
“No. It’s just a guideline. Again, going back to our legislation it states that we can reimburse for expenses incurred in performance of official duties. We just didn’t have a process in place. What we would be requiring as far an receipts , paperwork a log to be able to process the reimbursement,” said Contreras.
“At the July 30, 2014 meeting the Board Chairman stated that the board prior to me joining this board in November 2012, the Board had approved that he be reimbursed for mileage and expenses for his travel from Austin to Eagle Pass and vice versa back to Austin whenever he needed to come and make a board meeting to make a quorum,” said Calderon.
Board President Farias then stated “If I said the word approved it was wrong.” “I will retract that statement,” added Farias.
“If I said approved, I made a mistake with that word. The people here on the Board came to a consensus you know, but you know. The question is null and void. You have legislation here that covers it,” said Board President Farias.
“ The Maverick County taxpayers have a duty to find out how their monies are being spent. As a matter of fact this proposed policy states that the board recognizes its responsibility to be accountable to the taxpayers in situations where taxpayer’s funds are expended in order to discharge this responsibility the following policy has been formulated. If you follow that it states that if any board member who anticipates the need to attend a seminar or meeting must submit a completed travel request form and it must be approved by the Board of Directors,” said Calderon.
“Obviously, there have been reimbursements that have been paid. I don’t know to what specific board members. I think as a Board member I do want to know how many reimbursement have been completed, whom have they been made by, for what, for mileage, from where to where because this proposed policy is very specific and it provides a detailed procedure. From what I’m hearing, at the July 30,2014 Board meeting and today it appears that we might not even be in compliance with our own accounting policy procedures for reimbursement by Board members. As you are all aware, the Chairman has skipped the previous item on the agenda. I have made a request for public information under the federal freedom of information act. I would like for us to table the item until the Hospital District is able to comply and provide me with the request of the public records that I requested both under the Texas Public Information Act and the Federal Freedom of information Act to see whether we have complied with the proposed policy. To act on this before receiving those public records that have been requested by a board member under state and federal law would be premature,” said Calderon.
Calderon then asked CEO Contreras how many reimbursements have there been to Board members in the past six years.
Contreras then stated that there had been three reimbursements in the past 10 years.
Farias then instructed Contreras to state the total amount of the reimbursements. Contreras then stated that the total amount was for $366.39. The three reimbursements were to Board President Farias.
Did he submit the travel request forms as required by our policies?, asked Calderon.
Contreras then answered that one travel request form was submitted and that the other two expenses reimbursed were not considered a pre-travel in request and that there was not a form that had the request as it states on the policy. “ The policy was not modified to include reimbursement for board members until 2010,” said Contreras.
“So why are we reimbursing mileage from Austin to Eagle Pass to a board meeting…, every board member knows his duties and responsibilities that when an agenda is posted for a special or regular board meeting it’s our responsibility to attend regardless of where we are at,” said Calderon.
“I had a family crisis. If I hadn’t come we wouldn’t have had a quorum. There were only three of us,” said Farias.
Farias then addressed legal counsel asking her if legislation made it clear that board members are entitled to be reimburse. “Do we have to have any policy? Why? “ asked Farias.
“You don’t have to have any policy.” said General Counsel Celeste Lira.
Board member Joaquin L. Rodriguez then asked Legal counsel if she felt it was recommended to leave it just pursuant to the statute leaving it flexibility instead of tying the board down to specific acts in terms of seeking reimbursement.
“What do you recommend?” asked Rodriguez.
“I do think that if you don’t want to do it through the policy there should be a general understanding that say when you ask for a reimbursement you have to demonstrate some documents that you had an expenditure, that you outlaid money. “ said Lira.
“So are you saying that policy 100.23 that was approved by our previous CEO Elcira Bares on May 27, 2010 is not applicable to the board of directors and only to the employees?” asked Calderon.
“No. If it says for employees and board of directors then that is what governs you,” answered Counsel Lira.
Calderon stated that the policy provides a detailed process for reimbursements, including submitting a Travel Request Form and an Expenses Form for reimbursement.
Calderon then made note that it was a policy that was in place since May 27, 2010 and that it clearly states for employees, staff and board of directors. “I don’t think we need to approve anything that has already been in our books since May 27, 2010. It just hasn’t been complied with,” added Calderon.
“I go back to the consensus of the board here when I told them the situations that exist that they say it was alright for me to go ahead and submit mileage whenever there was some sort of problem and I trust their judgment,” said Farias. “We follow the legislative deal that’s here, ok?” said Farias.
Calderon then stated that the MCHD has staff and employees that must follow policies and that they should apply equally to everybody, including Board members. “This is important to Maverick County Taxpayers,” said Calderon.
Board member Joaquin L. Rodriguez then made a motion that the travel policy be changed to apply as it did originally to all the MCHD employees with the exception of the Board of Directors and that the Board of Directors be guided by the legislation specifically 1072.056, which does not provide established reimbursement procedures. “I think the board of directors need to be provided with flexibility, if it’s unplanned, then its unplanned whatever it is. The intent is to be at the meetings and take care of business,” said Rodriguez.
Rodriguez’s motion was seconded by Secretary-Treasurer Humberto Duran. Rodriguez, Duran, and Farias voted in favor while Calderon opposed excluding Board members from established MCHD policies and procedures for travel, business, cell phone, and mileage reimbursements in place since May 27, 2010.
