Legal Aid of North Carolina

Meeting Minutes - LANC Board of Directors
June 15, 2007

Site/Location: Sea Trail Golf Resort & Convention Center
                      Sunset Beach, NC

Call to Order and Welcome

Chairman Adams called the meeting to order at 9:41 a.m. and welcomed all in attendance.  He announced that this month LANC celebrates its 5^th anniversary.

Members Present

Members Absent With Prior Notification

LANC  Staff
George R. Hausen, Jr., LANC Executive Director
Ted Fillette, Assistant Director/
                  Senior Managing Attorney, LANC-Charlotte Office
Bernetta Johnson, Finance Director
Richard Klein, Southeast Regional Manager/
                     Senior Managing Attorney, LANC Wilmington
Dock Kornegay, Director, Public Relations & Communications
Chris Marks, Assistant Director of Finance & Administration
Celia Pistolis, Assistant Director of Advocacy and Compliance
Tonya Pruitt-Lyons, Administrative Assistant
Paula Spence, Office Manager

LANC Affiliated Attendees
Michelle Cofield, Director of Public Service & Pro Bono Activity,
                          North Carolina Bar Association
Evelyn Pursley, Executive Director, IOLTA
Angela B. Goodwin, Romeo Wiggins & Company, LLP
Mastin Simmons, Romeo Wiggins & Company, LLP
Elizabeth “Liz” Avery Jones, NC Academy of Trial Lawyers
William Lambe, IOLTA  

Approval of Minutes

Chairman Adams directed the Board’s attention to the minutes of February 23, 2007.  Following review and discussion of the minutes, a motion was made, duly seconded, and the minutes were UNAMANIMOUSLY APPROVED, as written.

President’s Report

George Hausen began his President’s Report by asking Chris Marks, LANC’s Assistant Director of Administration and Finance, to discuss the 2006 audit by Romeo Wiggins & Company, L.L.P.   Angela B. Goodwin with Romeo Wiggins reported that LANC received a clean financial audit and that no occurrences of non-compliance or internal weaknesses were found.  She mentioned that the previous audit noted a reportable condition involving the rate used to allocate fringe benefits. LANC corrected that condition in 2006 with an appropriate adjustment.  Mastin Simmons of Romeo Wiggins reported on the results of his audit of LANC’s case files as required by LSC.  He conducted a random review of case files at the end of 2006, which resulted in no reportable findings. The case file review for the 2007 audit will be conducted in January of 2008. Further, LSC’s Office of Inspector General (OIG) examined the performance and methods used by Romeo Wiggins to audit LANC.  As a result, OIG made no adverse or negative finding.  Ms. Goodwin and her staff commended LANC’s staff for their hard work which resulted in a clean audit.

Hausen presented a newly produced video to show how LANC has impacted clients’ lives and to promote the Access to Justice fundraising campaign.  Copies of the video were distributed to Board members for use in their communities. Also, Hausen reported to the Board that LANC celebrates its five year anniversary and shared some of its accomplishments during this period with a Powerpoint presentation.

Hausen directed the Board’s attention to a May 23, 2007 letter from the LSC Board Chair discussing a “Resolution in Support of Enhanced Private Attorney Involvement in the Delivery of Legal Services.”  The LSC Board had adopted this resolution, specifying its commitment to continued private attorney involvement with LSC funded programs and recognizing that such involvement has allowed programs to expand civil legal assistance to eligible clients.  LSC requested that LSC funded programs adopt similar resolutions encouraging private attorney involvement in its efforts to represent clients.  Following discussion, it was moved, duly seconded and UNANIMOUSLY RESOLVED to accept the LSC resolution.  The approved Resolution is attached to these minutes.

Chairman Adams commended Mr. Hausen for his exceptionally strong leadership of LANC and the organizations accomplishments over the past five years.

Committee Reports

Finance Committee Report

Chris Marks presented the Finance Committee Report and discussed the current state of the budget. LANC accounting staff had reviewed the life insurance benefit provided to employees through MetLife Insurance. Currently, coverage is provided to employees, spouses and their dependent children. LANC verified that all eligible employees had the proper coverage.

Marks reviewed the current state of the budget as found on page 10 of the Board Notebook.  LSC funding for 2007 was increased by $600,000 and LSC is projecting that federal funding in 2008 will increase by 8%, which could result in an additional $800,000 awarded to LANC.  Recently, LANC was awarded a $600,000 grant for the Domestic Violence Prevention Initiative- our statewide project that represents domestic violence victims. Further, Marks stated that staff salaries are likely to be increased from 2% to 4% across the board effective July 1, 2007.  Hausen noted that the current operating budget reflects increases in various funding sources enabling LANC to increase salaries for staff as well as expand services to clients.

Marks reported that LANC will begin to renegotiate a 7% to 8% interest rate on the $700,000 mortgage on the Raleigh office building.  Also, the LANC-Fayetteville Office will be moving to a new office in early fall as will the Centralized Intake Unit (CIU), which has outgrown its current space in the Administrative Office.  Legal Services of North Carolina owns the building currently housing the Fayetteville Office and intends to sell that building. Finally, Marks stated that the New Bern Office will be relocating in the near future and its current building likely to be sold.

Chairman Adams recognized Evelyn Pursley, who reported that she is in her tenth year as director of IOLTA and was happy to report that IOLTA is doing well.  The first quarter results indicate a 10 to 11% increase of $1.1 million, which is in part due to a higher interest rate of 4% for IOLTA accounts.  The NC State Bar is reviewing a mandatory IOLTA program.  

Personnel Committee
Chairman Adams recognized Celia Pistolis, Assistant Director of Advocacy and Compliance, to give the Personnel Report in the absence of Hada Haulsee, Chair of the Personnel Committee.  Ms. Pistolis reported that the committee met and recommended that the Board adopt the revised Employee Grievance Policy, found on page 12 in the board book.  Following discussion, it was moved, duly seconded and UNANIMOUSLY RESOLVED to accept the policy as written.  A copy of the policy is attached to these minutes.

Grievance Committee
Chairman Adams recognized Phillip Leigh, Chair of the Grievance Committee, who reported that the committee met and discussed LSC’s Regulation 1621, revising the Client Grievance Procedure.  The committee recommends that the Board approve the Client Grievance Policy found on page 15 of the board Notebook. He understands that the Operation Committee has reviewed the same and joins in the recommendation for adoption of the revised policy.   

Operations Committee
Chairman Adams recognized Celia Pistolis to give the Operations Committee report in the absence of the Operations Committee Chair, Willie Dawson.  Ms. Pistolis announced that Willie Dawson regrets that he was unable to attend the meeting as a result of health issues. She reported that the Operations Committee met and discussed the revised LSC Client Grievance Procedure. The Operations Committee joins with the Grievance Committee to recommend that the LANC Board approve the revised Client Grievance Policy.   Following discussion it was moved, duly seconded, and UNANIMOUSLY RESOLVED to adopt the policy.  The policy is attached to these minutes.

The Operations Committee reviewed in depth the 2007 Income Eligibility Guidelines and revision to the Eligibility policy found on page 30 in the board book and recommends its adoption by the Board.  Following discussion, it was moved, duly seconded, and UNANIMOUSLY RESOLVED to adopt the guidelines and the revision as presented.  The guidelines and revision are attached to these minutes.

Romeo Wiggins had recommended that LANC adopt an “anti-fraud” policy. This policy found at page 31 in the board Notebook was reviewed by the Operations Committee. The Committee recommends the Board adopt the policy as presented.  Following discussion, it was moved, duly seconded, and UNANIMOUSLY RESOLVED to adopt the policy as written.  The policy is attached to these minutes.

Resource Development
Chairman Adams recognized Paul Shepard, Chair of the Resource Development Committee, who reported that the committee has received information about the creation of endowments for LANC through the North Carolina Bar Association (NCBA), the NC Community Foundation (NCCF), and Triangle Community Foundation (TCF).  Following discussion, it was moved, duly seconded, and UNANIMOUSLY RESOLVED that LANC will accept the creation of endowments through the NCBA and the NCCF.

Nominating Committee
Chairman Adams recognized Burton Craige, Chair of the Nominating Committee, who reported that the committee recommends the following slate of names to fill expiring terms :  William H. Lambe, IOLTA; Tom Berkau and S. Kyle Woosley, North Carolina Bar Association; Celeste Harris, NC Association of Women Attorneys; Alice Tejada, NCBA Hispanic & Latino Lawyers Committee; John J. Bowers, 14^th Judicial District; Kristoffer B. Shepard, 26^th Judicial District; Susan Perry Cole, General Public Representative; Shirley Jones, Northeast Region Clients Council; and Sharon Greig, Southeast Region Clients Council.

Mr. Craige reported that the committee recommends the following for officer positions for the upcoming year, with the exception of the Chair position which is a two-year term:  Glenn Barfield as Chair, Lisa Morgan as Vice Chair, Burton Craige as Treasurer/Finance Chair, and Phillip Leigh as Secretary.  Following discussion, it was moved, duly seconded, and UNANIMOUSLY RESOLVED to accept the slate of names for upcoming officers and members, as presented.

Strategic Planning Committee
Glenn Barfield, Chair of the Strategic Planning Committee, stated that there was no new business of the committee to report.

Client Affairs Committee
Willis Williams, Chair of the Client Affairs Committee, presented a report for the Client Affairs Committee and Clients Council.  He reported that the Clients Council will begin to work on a voter education endeavor.   The Clients Council will travel to the Region VI meeting in Little Rock Arkansas in September of 2007.

Passing of the Gavel/Remarks of the Chairs

Chairman Adams thanked all the LANC staff and board for working with him over the past two years.  He stated that he will continue to be active with LANC and it fundraising efforts and other activities. He especially thanked the board members whose terms had expired for their dedicated service. 

Glenn Barfield accepted the gavel to serve as LANC Chair for the next two years and gave brief remarks.

Adjournment

As there was no further business before the Board, Chair Barfield adjourned the meeting at 12:30 p.m.

___________________________

Phillip Leigh, Secretary
LANC Board of Directors