LCH
Finance Committee Meeting Minutes
August 25, 2015
The Finance Committee met via conference call on Tuesday, August 25, 2015. The
meeting was convened at 6:04 pm by Alisa Jones.
Present on the call were committee members Chris Close, Clipper LaMotte, and Alice
Moorhead. Also on the call were Alisa Jones, LCH President and CEO, and Louise
Smith, LCH CFO/CCI Consultant. Absent were Paul Huberty and Ken Mumma.
Louise Smith provided an update on the banking transition from National Penn Bank to
Fulton Bank. She indicated that meetings are ongoing to open the checking account and
additional money market accounts, install remote deposit function, install the new
merchant services equipment, establish a brokerage account and investigate the kinds of
investments available to LCH.
Louise Smith reported that the Onsite 340B accounting procedures are being designed in
preparation for the opening of the onsite dispensary in late September. Alisa Jones stated
that this program will conveniently provide prescription drugs to LCH patients on a
sliding scale fee. She mentioned that pharmacy compliance is the most critical issue and
that LCH should expect an audit from the Office of Pharmacy Affairs in twelve to fifteen
months after the opening. Alisa Jones recently attended a comprehensive training
program on this subject. The Committee discussed insurance coverage for the dispensary
and Alisa Jones indicated that the organization’s existing federally provided liability
insurance will cover this function.
Alisa Jones presented the Oxford Business Plan to the Committee. She thanked them for
the valuable feedback earlier in the day when they reviewed the presentation materials
via email. She reported on the market analysis, the business model, the budget, the
operational plan, the timeline and key milestones. She indicated that the current Oxford
property for which LCH made a $1,800 deposit in October 2014 is bankrupt so other
properties are being sought. The Committee discussed the possibility of purchasing that
property. Alisa Jones will look into that possibility. Upon motion duly made by Clipper
LaMotte and seconded by Alice Moorhead, the Finance Committee will ask the Board of
Directors to approve the opening of the Oxford site and the acceptance of the Federal and
State funding.
Louise Smith advised the Committee members that the annual independent financial
audit of LCH is underway by BBD, LLP. Fieldwork is currently being conducted onsite
in Kennett Square and the Committee should expect to review the draft audited financial
statement at its October meeting.
Louise Smith presented the July 2015 fiscal year-to-date financial reports.
The Committee discussed the need for annual conflict of interest disclosures and which
Board Committee would be best suited to monitor that process. They asked Alisa Jones to
discuss with Paul Huberty whether he has a preference for the Governance Committee or
Finance Committee to handle the conflict of interest and its annual disclosures.
The Committee asked Alisa Jones about the status of staffing. She reported the recent
change to promote Amy Lambert to Director of Operations and Programs so that Amy
now handles many of the responsibilities that Alisa had managed as Chief Operating
Officer. Alisa expressed the likely need for a Compliance Officer in Fiscal Year 2017 as
LCH continues to grow.
The minutes of the June 23, 2015 Finance Committee meeting were reviewed by the
members. Upon motion duly made by Clipper LaMotte and seconded by Alice
Moorhead, the prior meeting minutes for June 23, 2015 were unanimously approved.
With no further business to conduct, the meeting was adjourned at 7:03 pm.
Recorded by,
Louise Schorn Smith