[NFB-Idaho] Beth Cunningham's response to our convention resolution regarding the Business Enterprise Program

Tue Jun 19 21:56:30 UTC 2018

I recently met with Beth Cunningham, ICBVI administrator, to present our
resloutions. She did not want to wait a full year before responding to our
concerns stated in the resolution. Below are her comments for our
information. 

June 13, 2018

Dana Ard, President

1320 E. Washington

Boise, Idaho 83712

Dear Dana Ard, President, 

Thank you for presenting me with the Resolutions of the Idaho Chapter NFB
passed at the 2018 Convention assembled in Twin Falls, Idaho.  The first
resolution (2018-03), requested a response relating to the 2013-2015
Legislative Services (LSO) Management Review audit.  This audit found the
following findings, which were related to the Business Enterprise program.
These findings were accompanied by recommendations also made by LSO.  

1 - Financial accountability of the Business Enterprise Program (BEP) is not
being monitored in accordance with rules and regulations.

Recommendation: We recommend that the Commission's BEP staff perform
periodic "audits" of vendor records and financial data. We also recommend
that they implement procedures to ensure vendors are meeting the established
performance standards and to ensure the value of the initial inventory is
repaid by the vendor upon exiting the program. This should include updating
the information in the Allowable Costs Performance Standards Manual.

Agency response:  In effort to improve this aspect of the program we have
hired an outside auditor and have begun auditing vendors randomly to ensure
vendors meet the performance standards.  We are working in collaboration
with the IBMC to update the allowable costs performance standards manual.

2 - Conflicts of interest existed within the Business Enterprise Program
(BEP) and the Commission did not have an adequate process in place to
address them and ensure fair and consistent treatment for all vendors.

Recommendation: We recommend that the Commission implement formal policies
to prevent the possibility of conflicts of interest from occurring between
the commissioners, administrator, BEP supervisor, and/or vendors in the BEP.

Agency response:  Conflicts of interests did exist between the previous
administrator and a vendor and also with the fact that a vendor was serving
as a board member.  Although, precautions were followed to prevent conflicts
with these relationships, it was determined that the dual roles and dual
relationships were a conflict none-the-less.  Therefore, the Board of
Commissioners has written guidance in the form of an agency policy (see
below) to prevent ever having these conflicts arise in the future.  

Idaho Commission for Blind and Visually Impaired Conflict of Interest Policy

The Idaho law governing conflicts of interest as they relate to board
members, the Administrator, and Staff are provided in the Ethics in
Government Act[i] , the Bribery and Corrupt Practices Act[ii], and the Idaho
Department of Human Resources rules governing state employees.  These acts
specifically address those conflicts relating directly to a monetary,
economic interest of the board member or the board member's family.  This
limited statutory focus, while instructive in those circumstances, is not as
advisory in the type of conflicts, or potential conflicts, the Commission
staff, Administrator and Commissioners will likely encounter during their
affiliation with ICBVI.

General Policy.  For the purposes of this policy, "Staff" includes the ICBVI
management, and other ICBVI employees.  The Commissioners, Administrator,
and Staff cannot use their positions with the Commission to influence
decisions or actions that will financially benefit themselves or an
organization with which they have a pecuniary interest or policy making
affiliation.  In addition to pecuniary matters, the Commissioners,
Administrator, and Staff considers conflicts of interest to potentially
include any personal or professional position, relationship, knowledge,
experience, or bias that would unfairly influence reasoning or decision on a
matter.  The Commissioners, Administrator, and Staff have an individual
responsibility to be alert to actions that could be interpreted as
benefiting themselves, their family, their employer or any other person or
organization with which they have a financial or personal relationship and
refrain from such actions. 

To avoid actual impropriety or the appearance of impropriety, the
Commissioners, Administrator, and Staff should avoid having intimate
personal relationships with ICBVI clients or BEP vendors.  Commissioners and
the Administrator must avoid intimate relationships with each other, with
Staff, with clients, and with BEP vendors. In addition, Staff should avoid
intimate relationships with other ICBVI employees or clients, and must avoid
intimate relationships with other staff or with clients with whom they have
a managerial role or close work relationship.

When a Staff member is confronted with a situation where a conflict of
interest exists, the Staff member must disclose the nature of the conflict
to the Administrator.  When a Staff member is confronted with a situation
where there could be a perceived conflict of interest or the appearance of
impropriety, the Staff member must disclose the issue and the nature of
their involvement to the Administrator.  The Administrator, in consultation
with the Commission's attorney, will make a determination regarding the
appropriate action to be taken in each case.

When the Administrator is confronted with a situation where a conflict of
interest exists, or where there could be a perceived conflict of interest or
the appearance of impropriety, the Administrator must disclose the nature of
the conflict or issue to the Commissioners.  The Commissioners, in
consultation with the Commission's attorney, will make a determination
regarding the appropriate action to be taken.

When a conflict of interest exists with a Commissioner, the Commissioner
must disclose the nature of the conflict to the Commission and recuse
himself/herself from involvement in decisions or other forms of action.
When there could be a perceived conflict of interest or the appearance of
impropriety, the Commissioner must disclose the issue and the nature of the
Commissioner's involvement to the Chair of the Commission.  The Chair of the
Commission, in consultation with the Commission's attorney, will make a
determination regarding the appropriate action to be taken in each case.

To adequately memorialize the declarations on conflicts, the minutes should
reflect the reasons stated for the recusal.  The statement need only be
general in nature.  Specific details of the conflict need not be provided.
The record of the minutes should also reflect whether the member
participated in the deliberation or voted on the matter.

Commissioners and the Business Enterprise Program.  Due to inherent
conflicts of interest, a Commissioner may not concurrently: 1) be employed
by the Commission; 2) receive benefits as a client of the Commission; or 3)
participate in the Business Enterprise Program. 

Dana Ard, President

National Federation of the Blind of Idaho

Main: 208-345-3906

Cell: 208-859-2828 (call only)

Email: president at NFBIdaho.org

Website: www.nfbidaho.org

"The National Federation of the Blind knows that blindness is not the
characteristic that defines you or your future. Every day we raise the
expectations of blind people, because low expectations create obstacles
between blind people and our dreams. You can live the life you want;
Blindness is not what holds you back."  

  _____  

[i] Title 74, Chapter 4, Idaho Code 

[ii] Title 18, Chapter 13, Idaho Code

In regards to Resolution 2018-04, we appreciate your gratitude and
recognition of ICBVI's services to assist people who are blind in Idaho to
improve their lives.  We appreciate the collaboration and support of the
Idaho NFB, and look forward to future projects with the Idaho NFB.  

Sincerely, 

Beth Cunningham, Administrator

Idaho Commission for the Blind and Visually Impaired