[nfbmi-talk] Business Enterprise Program article ann arbor news

[Jim in Detroit]

Terri, is this the same as Ann Arbor Online?  I thought the AA News was 
defunct.

-----Original Message----- 
From: trising
Sent: November 29, 2012 18:36
To: nfbmi List
Subject: [nfbmi-talk] Business Enterprise Program article ann arbor news

    Mark Rothenhauser, 55, operates the snack bar at the state Capitol. He's 
been participating in the state's Business Enterprise Program for people who 
are blind and visually impaired for six years.Melissa Anders | MLive
LANSING, MI - The state did not properly manage a program that helps blind 
people run vending facilities in government buildings, according to an audit 
report that estimates the program improperly spent about a quarter million 
dollars.

A report released Tuesday by Michigan's Auditor General found that the 
Michigan Commission for the Blind did not effectively monitor the finances, 
contracting and inventory for its Business Enterprise Program. The program 
offers licenses to blind and visually impaired people to operate vending 
machines, cafeterias, snack bars, carts and other food services in state and 
federal buildings, highway rest stops and visitor centers.

The audit generally covered Oct. 2008 through July 2011, when the program 
was still managed by the Michigan Commission for the Blind.

The Department of Licensing and Regulatory Affairs (LARA) realized there 
were several issues with the vending program and requested the audit.

Gov. Rick Snyder responded to broader issues surrounding the Commission for 
the Blind with an executive order that replaced the commission with the 
Bureau of Services for Blind Persons in October.

Ed Rodgers took over as director of the bureau last month with the mandate 
to make improvements.

"While there's issues and problems we need to correct, the public needs to 
be reassured that this administration is not wasting taxpayers' dollars and 
that we are running an effective and efficient program," Rodgers said. 
"We're doing what we're supposed to be doing."

The Business Enterprise Program had eight staff members and more than 80 
licensees who operated about 400 sites throughout the state as of July 2011.

Operators give 10 percent of their profits to the commission to pay for 
expenses such as new equipment and retirement funds.

"The public needs to be reassured that this administration is not wasting 
taxpayers' dollars." - Ed Rodgers
The audit estimates that the commission improperly spent $254,000 in 
operator fees from Oct. 2008 through July 2011 on miscellaneous program 
expenses that were not in accordance with state code.

The commission also did not effectively confirm operators' monthly sales 
reports, meaning the state couldn't make sure that it properly calculated 
and paid retirement contributions, pension payments and operator fees, the 
audit found. Even though the vendors are independent contractors, the 
program pays out such benefits.

That finding didn't surprise Mark Rothenhauser, who operates the snack bar 
at the state Capitol. He sells pizza slices, popcorn, soda and other snacks 
from a small shop located on the ground level of the building.

"An operator can basically pull a number out of the air and report that as 
sales," he said. "There's not a mechanism in place to authenticate what the 
operator reports as sales is actually their sales. So if you go with that, 
you don't know if they're paying the correct set-aside fee."

Rodgers said he set aside $150,000 to create a new data program for the 
entire bureau that will keep better track of vending sales and net income. 
It should be in place early next year.

Other audit findings dealt with deficiencies in monitoring equipment 
inventory, contracts and operator assistance.

The bureau is completing an inventory of its equipment, such as coolers and 
microwaves, and is setting up performance measures for staff members who 
assist operators.

"The auditor general's office should be applauded for the thorough job they 
did in this," Rodgers said.

Email Melissa Anders at manders at mlive.com. Follow her on Twitter: 
@MelissaDAnders.
_______________________________________________
nfbmi-talk mailing list
nfbmi-talk at nfbnet.org
http://nfbnet.org/mailman/listinfo/nfbmi-talk_nfbnet.org
To unsubscribe, change your list options or get your account info for 
nfbmi-talk:
http://nfbnet.org/mailman/options/nfbmi-talk_nfbnet.org/james.prather%40comcast.net