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Item C38 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: September 16. 2009 Division: OMB Bulk Item: Yes D No [2J Department: Grants Administration Staff Contact Person: Lisa T ennvson AGENDA ITEM WORDING: Approval of a resolution establishing audit and other reporting requirements for not-for-profit organizations receiving grants from Monroe County. ITEM BACKGROUND: Currently, Monroe County grant contracts require all grantees to provide audited financial statements regardless of the size of their operations, amount of grant, or the total revenues and expenditures of the organizations. This audit requirement poses a financial burden, particularly for the organizations operating with very limited funds and/or not already obligated to provide audited financial statements to other grantors. The County seeks to provide a compromise solution that alleviates the financial burden on the grantees which operate on minimal revenues yet retains a level of financial accountability. PREVIOUS RELEVANT SOCC ACTION: None CONTRACT/AGREEMENT CHANGES: Future grant contracts between Monroe County and grantees will reflect the changes outlined in this resolution. STAFF RECOMMENDATION: Approval TOTAL COST: $0 BUDGETED: Yes No COST TO COUNTY: $,Q SOURCE OF FUNDS: REVENUE PRODUCING: Yes No XX ~PER MONTH YEAR APPROVED BY:COUNTY ATTY t$liMB HASING D RISK MANAGEMENT 0 DOCUMENTATION: INCLUDED: [gj NO EQUIRED: 0 DISPOSITION: _ AGENDA ITEM #:_ RESOLUTION NO. 2009 RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, ESTABLISHING AUDIT AND OTHER REPORTING REQUIREMENTS FOR NOT-FOR-PROFIT ORGANIZATIONS RECEIVING GRANTS FROM MONROE COUNTY. WHEREAS, Monroe County annually grants funding to a number of not-for-profit providers of human and community-based services that benefit the health, welfare and safety of the general public; and WHEREAS, for a number of years the grant contracts have required all such grantees to provide audited financial statements regardless of the size of their operations, amount of grant, or the total revenues and expenditures of the organizations; and WHEREAS, the Board of County Commissioners recognizes that the audit requirement is a financial burden, particularly for the organizations operating with very limited funds and/or not already obligated to provide audited financial statements to other grantors; and WHEREAS, the Board of County Commissioners also recognizes that if independent financial accountability is not required by the grantees, the burden will have to be borne by the taxpayers to cover more extensive auditing by the Clerk's office; and WHEREAS, it is desired to provide a compromise solution that alleviates the financial burden on the grantees which operate on minimal revenues yet retain a level of accountability that minimizes the additional burden to the Clerk and, ultimately, the taxpayers; and WHEREAS, it is also desired to obtain additional information as to the services provided by the grantees in order to assist the Human Services Advisory Board and the BOCC in decision-making regarding grant applications; now therefore, BE IT RESOLVED BY THE Board OF COUNTY COMMISSIONERS OF MONROE COUNTY that: Section 1. Agreements for the grant of funds to a not-for-profit organization for the provision of services to the public shall require submission to the Office of Management and Budget, Grants Department of the following: A. For organizations with total annual expenditures of $150,000 or more, including the amount of County grant, an annual audited financial statement from the organization's most recently completed fiscal year and an IRS Form 990 also from the organization's most recently completed fiscal year. (If the audit is qualified, the organization must include a statement of deficiencies with corrective actions recommended/taken.) B. For organizations with total annual expenditures of less than $150,000, including the amount of County grant, an IRS Form 990 from the most recently filed tax return (but no more than one fiscal year earlier than the grant award). C. For all organizations, two performance reports; a performance report describing services provided during the prior fiscal year (to be furnished at the start of the grant period) and a final performance report describing services provided during the current grant period (to be furnished within 30 days after the contract end date.) The performance reports shall include statistical information regarding the types and frequencies of services provided, a profile of clients (including residency) and numbers served, and outcomes achieved. D. All organizations receiving funding from Monroe County are subject to a financial audit by and at the discretion of the County Clerk. Section 2. This resolution shall replace any previously established policies on contractual requirements for submissions of financial statements, both audited and non- audited, and shall be supplemental to any requirements previously established for reports regarding services. Section 3. This resolution shall become effective for grants commencing October 1, 2009. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida. at a regular meeting of the Board held on the16th day of September, 2009. Mayor George Neugent - Mayor Pro Tem Sylvia Murphy - Commissioner Heather Carruthers - Commissioner Mario Di Gennaro - Commissioner Kim Wigington - Attest: DANNY L. 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