The KFA board at a Sunflower Foundation-hosted meeting approved an administrative invoice of $110,375.94 to Sunflower Foundation, approved two grant budget modifications for existing grantees and tabled a request by New Beginnings that would classify $26,341 in surgical expenses as allowable grant costs.

Board chair Pat George opened the meeting and, before the votes, Sunflower Foundation finance director Shanna Zimmer reported the fund balance and recent earnings. “As of May 31, we have received just over $90,000,000 from the state. We've earned $4,400,000 in net interest,” Zimmer said. She reported a bank balance of $75,289,194.79 and an unencumbered balance of just over $68,000,000, and noted the fund has daily liquidity and 100% FDIC coverage.

Why it matters: the board’s approvals move ongoing grant administration and projects forward while the group continues to shape allowable expense guidance for grantees. The board debated whether certain health-care expenditures and capital expenditures fit the original grant intents and how to guard against creating a recurring precedent for paying individual medical bills out of program funds.

Most important actions

- Administrative invoice: The board voted to approve invoice #1447 for $110,375.94 to Sunflower Foundation to cover first-quarter administrative project support (January–March 2025), including salaries, benefits and the grants management system. The motion passed unanimously.

- Fentanyl tester allowability: A grantee requested to repurpose part of a previously approved budget item. The original budget included fentanyl-testing equipment to be sited at the grantee’s local medical center; the grantee asked to place one of two devices with the county sheriff’s office for use in the jail. Board members were advised the sheriff’s office confirmed procedures to respect constitutional protections, including consent and due process. The board approved the change unanimously.

- ER safe-room capital reallocation: A grantee requested a budget revision to reclassify existing line items (originally budgeted at $1,500 for headboards/locking cabinets) into capital to install a crisis bed ($5,262) and a sliding glass door ($11,870) for a secure emergency-room space for patients experiencing substance use and mental-health crises. The board approved the $17,132 reallocation unanimously.

- New Beginnings reported expenditures: New Beginnings reported spending funds on vision and dental services and on two surgeries for program participants (a cataract procedure for $6,880.81 and an emergency bowel surgery for $19,460, total $26,341). Board members raised objections to approving individual surgical expenses as allowable grant costs, saying the grants are intended to support sustainable, programmatic services rather than one-off medical bills. Some members expressed concern that denying the reclassification could leave the grantee or the individuals with unpaid bills. After discussion, the board elected to table the New Beginnings request for further review and legal/administrative clarification and to revisit it at the July meeting.

Discussion highlights and process notes

- Several board members said funds should not become a routine mechanism to pay individual medical bills; others counseled compassion for emergent clinical needs and noted the payments had already been made to providers. One member urged that, if the board approves such an expense this time, it should be clearly communicated that similar after‑the‑fact requests will not be allowed in the future unless explicitly included in a grant application.

- Staff noted the grantee letter of agreement (LOA) requires grantees to request permission before deviating from their approved budgets; the LOA and the RFP language will be used to guide future clarity about allowable and unallowable expenses.

- The board heard that most grantees receive multiple interim payments and a final payment withheld (roughly 10%) until submission of a final report; staff said if expenses are disallowed, grantees may need to amend their final reports and return funds as applicable.

Votes at a glance

- Motion: Approve April 11 meeting minutes. Moved by Sandra; seconded by Jason. Outcome: approved unanimously.
- Motion: Approve invoice #1447 to Sunflower Foundation for $110,375.94 (Q1 administrative costs). Moved by Mike; seconded by Gary. Outcome: approved unanimously.
- Motion: Approve grantee change to allow placement of one fentanyl tester with the county sheriff’s office (change from original plan to site both at medical center). Outcome: approved unanimously.
- Motion: Approve reclassification to capital for ER safe-room items totaling $17,132. Moved by Sandra; seconded by Robin. Outcome: approved unanimously.
- Motion: Consider New Beginnings’ request to treat $26,341 in surgical expenses as allowable. Outcome: tabled for further review (to be revisited at the July meeting).

Next steps and context

Board members were reminded the July 11 meeting will include presentation of a needs assessment that staff say will guide future RFPs and priorities. Staff also said they are collecting examples of “unallowable” expense lists used by other states and plan to share clearer guidance with grantees going forward.

The meeting also contained a brief mention that a Purdue settlement appears imminent; staff said they will provide the board with details about any financial consequences when available.