Below are a resolution and 2 letters. The resolution is from our 2011 State Convention. Our members observed an apparent conflict of interest wherein a Commission employee who is a Regional Rehabilitation Supervisor sits on the Board of New Horizons, a sheltered workshop in southeastern Michigan. The NFB of Michigan has obtained documents through the Freedom of information Act showing the Supervisor’s signature on a payment to new Horizons. Under most circumstances serving on the board of a non-profit would be considered an altruistic and generous use of time. When funds are authorized to pay for job developers who receive $35/hour to work with people who may receive a dollar an hour or less it doesn’t look quite so good. Why do sighted non-disabled persons get all the rehab dollars while telling blind people there is no money for their educations or job-finding assistance?
Following the passage of the resolution, President Larry Posont received a letter from the Lawyer for new Horizons threatening the NFB of Michigan and demanding a retraction of the resolution. President Posont politely declined the lawyer’s invitation to back down. Further President Posont has ordered the posting of the resolution along with the 2 letters here on our Michigan web page. We will not be bullied or intimidated by lawyers, Directors, politician’s suck-ups or anyone else who thinks they can take money from programs for the blind and use it to give themselves plush lifestyles, bonuses and build an endowment fund while paying sub-minimum wages to persons with disabilities. Shame, Shame.
Resolution
RESOLUTION 2011-08
NEW HORIZONS
WHEREAS, Gwen McNeal has been on the Board of Trustees of New Horizons since 2010; and
WHEREAS, the Michigan Commission for the Blind (MCB) through McNeal,
continues to do business with New Horizons to this date including contracting for evaluations and engages New Horizons personnel on other cash match agreements, including one with Oakland County Schools; and
WHEREAS, in the Rehabilitation Services Administration’s (RSA) 5-year Monitoring Report, RSA found that the Michigan Commission for the Blind, the Macomb Intermediate School District, and New Horizons Rehabilitation Services engaged in an illegal “cash match” agreement whereby New Horizons kicked in funds for federal match, and then received a no-bid contract (see Finding 6); and
WHEREAS, MCB Regional Manager Gwen McNeal was the responsible agent for this and even gave an award to New Horizons in 2008; and
WHEREAS, this, by any reasonable definition, constitutes a conflict of interest between this MCB Regional Administrator and a Community Rehabilitation Program; and
WHEREAS, this clearly violates state ethics guidelines and may well be a violation of state and federal laws;
NOW THEREFORE, BE IT RESOLVED by the National Federation of the Blind of Michigan in convention assembled this 6th day of November 2011 in the City of Kalamazoo, Michigan
that the National Federation of the Blind of Michigan abhors this sort of apparent conflict of interests; and
BE IT FURTHER RESOLVED that forthwith NFB-MI informs, in writing, Rehabilitation Services Administration, the Office of the Inspector General in the United States Department of Education, and the Michigan Attorney General’s Public Integrity Office about this situation and requesting a thorough investigation into these and other practices.
Mr. Cashen’s Initial Letter
December 21, 2011
VIA EMAIL – President.nfb.mi@gmail.com
and FIRST CLASS MAIL
Mr. Larry Posont
President
National Federation of the Blind of Michigan
20812 Ann Arbor Trail
Dearborn Heights, MI 48127-2677
Re: New Horizons Rehabilitation Services, Inc.
Dear Mr. Posont:
We are the attorneys for New Horizons Rehabilitation Services, Inc.
(“New Horizons”). NFB – MI’s Resolution 2011-18 has come to our
attention. The Resolution is factually inaccurate and misleading. We request that NFB – MI consider the true facts and issue a retraction of the Resolution. These facts are:
1. New Horizons is a nonprofit organization providing vocational training and job placement in Michigan for people with disabilities. New Horizons is devoted to promoting and expanding opportunities for individuals with disabilities including those with vision impairments. New Horizons has been engaged in its mission for over 45 years.
2. Gwendolyn McNeal is a trustee on New Horizons’ Board of Trustees.
Ms. McNeal has over 30 years’ experience in state agency vocational rehabilitation. She was invited to join the Board to add her expertise and perspective to New Horizons’ programs for its consumers.
Neither Ms. McNeal nor any other trustee receives compensation for service as a member of the Board.
3. Contrary to Resolution 2011-18, New Horizons does not engage in cash match agreements with the Michigan Commission for the Blind (“MCB”). New Horizons provides fee for services arrangements with MCB and others with, in general, consumer choice dictating whether the service is furnished by New Horizons or another provider.
4. Contrary to Resolution 2011-18, the Rehabilitation Services Administration (“RSA”) did not find that New Horizons engaged in “an illegal ‘cash match’ agreement” with MCB and the Macomb Intermediate School District. Rather, the RSA found, for the 2009 fiscal year, that “MCB has failed to comply with the requirements of 34 CFR
361.60(b)(3) for the use of contributions from private entities for matching purposes.” RSA Fiscal Year 2009 Monitoring Report.
5. Contrary to Resolution 2011-18, there was never a quid pro quo with regard to any transaction involving New Horizons referenced by the RSA.
6. Resolution 2011-18 deceives the reader by inferring that the arrangement described by the RSA is current or continuing. In fact, the MCB response, as indicated on the RSA Fiscal Year 2009 Monitoring Report, states that the practice has ceased.
7. The MCB issued an award to New Horizons for its exemplary service in the community to those with vision impairments. New Horizons received a plaque, not a monetary amount. This award was given before
Ms. McNeal became a member of New Horizons’ Board.
8. There is no conflict of interest in Ms. McNeal’s position on New Horizons’ Board and her position at MCB. Ms. McNeal has not violated any “state ethics guidelines.” We have reviewed the Michigan ethics law, MCL 15.341 et. seq., and it has not been violated. There is no basis for your speculation that state and federal laws may be violated. Ms. McNeal has not voted on any MCB business in her role as
a trustee for New Horizons. She has complied with New Horizons’ conflict of interest policy. She is not directly involved at MCB with any fee for services arrangement with New Horizons. She obtained approval from MCB before assuming a trustee position at New Horizons.
Resolution 2011-18 places New Horizons in a false and derogatory
light. We request that NFB-MI issue a retraction of Resolution
2011-18 to all recipients of the original publication, and post the retraction on its website, within thirty (30) days of the date of this letter. Please be advised that a failure to issue a retraction of a defamatory statement, when given a reasonable time to do so, may subject the person to exemplary and punitive damages. MCL 600.2911.
If NFB-MI fails to issue a retraction, New Horizons may pursue its remedies under the law.
Very truly yours,
John C. Cashen
JCC/dsb
cc: Stan Gramke
Larry Posont’s Response
January 6, 2011
John C. Cashen
BODMAN PLC
Suite 500
201 W. Big Beaver Road
Troy, Michigan 48084
Dear Mr. Cashen,
I am in receipt of your letter dated December 21, 2011. I am posting this letter and yours on our Web site, so that those who have an interest to know may have such facts as are available. Your letter asserts factual errors in the resolution about New Horizons adopted by the convention of the National Federation of the Blind of Michigan. Your letter also asserts that the resolution “deceives” the reader.
At the outset, I note that your letter refers to the resolution as 2011-18. I believe that the resolution bore the number 2011-08.
I offer you this information because I want to be sure that we are discussing the same resolution. I also hope that the assertions contained in your letter have been more carefully drafted than this one.
The review I have made of the assertions in your letter has not
demonstrated to me that there is substantial factual error in the resolution. I note as a curious element of your letter that you tell me that the Commission for the Blind asserts (and you
apparently believe) that the arrangement described by the Rehabilitation Services Administration about which the resolution was complaining has “ceased.” I do not know whether you meant to admit that there was a practice which should have ceased, but your letter makes me wonder about such an admission.
As I have said, I am posting your letter along with mine on the
Internet so that your assertions may receive appropriate evaluation along with statements contained in the resolution adopted in November of 2011. I assure you that it is our wish to state accurately
the practices that we find at the Commission for the Blind. I assure you that it is our wish to characterize accurately the
relationship between the Commission and New Horizons. I assure you that it is our wish to support thoroughly and promote
effectively honorable behavior that brings opportunity to the blind.
If you can demonstrate that the statements in our written
documents are inaccurate, I assure you that we will retract them. However, we believe what we have said states the truth with reasonable accuracy.
Sincerely yours,
Larry Posont, President
National Federation of the Blind of Michigan
(313) 271-3058
Email: president.nfb.mi@gmail.com
Web page
www.nfbmi.org