News Photo by Kayla Wikaryasz On Tuesday, District Health Department No. 4 (DHD4) leadership team and health board are seen sitting in the Cedar Room at the DHD4 Alpena office. The meeting covered employment updates, department reports, and money challenges.

ALPENA — The District Health Department No. 4 (DHD4) leadership team updated the health board at a meeting on Tuesday as to recent layoffs and $700,000 lost due to “accounting errors” and “gross negligence.”

In response to money challenges, the DHD4 office had to lay off two employees, with one layoff still pending, according to Denise Bryan, administrative health officer.

Of the layoffs, Bryan revealed to the board that Nick Modrzynski, the DHD4 emergency preparedness supervisor, and Kendra Bartz, DHD4 human resources director, were included. Bryan did not reveal who the third layoff might be.

Bryan also informed the health board of three significant “threats” that the health department is facing as a result of federal, state, and internal challenges. Bryan cited those challenges as being recindication of COVID money, a late state budget, and internal accounting errors.

“We have what I am calling a triple threat to our financial stability,” Bryan said.

Regarding COVID money clawbacks, initiated by the federal government, Bryan said that the public may wrongly assume that the health department was “riding a COVID wave,” when COVID funds were used to staff and develop a “safety net” within the public health sector.

Further, Bryan noted Robert Kennedy Jr.’s administrative move to reassign a panel of CDC vaccination experts — a move that Bryan said will likely alter the prioritization of immunization money allocation in the future.

As a second threat, Bryan noted a pending state budget as an additional challenge.

“One of the unprecedented fiscal confusion and chaos I’m experiencing, I’ve never seen in 30 years in public health,” Bryan said. “That is the state of Michigan polarized on the budget.”

Bryan explained that the DHD4 usually receives a state budget by May, and is considered late if the budget is received by June. However, the state told DHD4 that the budget may be later than expected.

“They told us not to expect a budget in August … maybe for September,” Bryan said.

To compensate, Bryan explained that she and DHD4’s new financial director, Michelle Konwinski, plan on entering the new fiscal year — beginning Oct 1 — with a flat budget. This means that the budget will remain the same as it was the previous fiscal year.

According to Bryan, the DHD4 budget must be voted on and approved by the board before the fiscal year begins.

“We’ll start with a flatline and then we’ll start taking off what we know to be true,” Bryan said. “It’s not flat. It’s going to be underfunded.”

Bryan cited the third threat as internal accounting errors.

“Gross misjudgment or gross negligence, unknown motivation is at hand, and … great concerns are arising,” Bryan said. “Inaccounting it is a trickle effect, once you find one thing you peel back the layers and then you look for more.”

Bryan revealed to the board that $700,000 of DHD4 funds were lost due to accounting errors.

“There’s no recouping it,” Bryan said.

However, Bryan explained that the department audit is in its final stages and will be submitted on June 30. At the next meeting in July, the leadership team will update the board as to what the audit findings are.

Bryan said the DHD4 office is preparing for a statewide budget cut to emergency preparedness, likely totaling 28%. During COVID, health departments were required to be 75% funded for emergency preparedness, but suspected cuts will only total 62%, according to Bryan.

IN OTHER BUSINESS

— Nathan Scott, DHD4 information technology director, updated the health board of a phishing attack that was remedied and updates to Microsoft.

— Bryan introduced Stephan Horton, the new DHD4 environmental health director, following Kevin Prevost’s retirement.

— Motions were approved for policy/procedure creation for an existing system survey, intergovernmental agreement with Presque Isle Township for Inspections Time of Transfer (TOT), and changing of bank account signatures.

Kayla Wikaryasz can be reached at 989-358-5688 or kwikaryasz@TheAlpenaNews.com.