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

[joe harcz Comcast]

Outragious. Simply outragious. My copy of this report was totally and 
outragiously inaccessable.

That is a fact Jackson!
----- Original Message ----- 
From: "trising" <trising at sbcglobal.net>
To: "nfbmi List" <nfbmi-talk at nfbnet.org>
Sent: Thursday, November 29, 2012 6:36 PM
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.
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