CC - Item 5B - Accountability of Non-profit Organizations that Receive City FundingROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAG
DATE: JUNE 23, 2009
SUBJECT: ACCOUNTABILITY OF NON-PROFIT ORGANIZATIONS THAT RECEIVE CITY
FUNDING
SUMMARY
Over the past several years the City has contributed approximately $115,000 to community based
non-profit organizations and public schools. Several Council Members have expressed concern
about the lack of formal guidelines and standards for such contributions. City staff has developed a
proposed Administrative Policy (Attached) to govern any future funding requests by such
organizations.
Council Member Steven Ly has also requested that the City Council discuss the possibility of
requesting organizations that have previously received funding from the City to also comply with an
approved policy. Listed below are the organizations that have received funding over the last two
fiscal years:
Rosemead Rebels (Football Equipment) - $17,156
M. Janet Chin Youth Foundation (Programs) - $25,000
Rosemead Youth Association (League.costs and IRS fines) - $15,000
Rosemead Youth Association (IRS fines) - $9,890.43
Savannah Cemetery (Wrought iron fence) - $14,268.92
San Gabriel High School (Washington DC Trip) - $20,000
San Gabriel High School Football Team (Uniforms) - $15,000
Staff Recommendation
That the City Council approve Administrative Policy 50-04 and provide direction regarding the
accountability of organizations that previously received funding.
FINANCIAL IMPACT
There is no financial impact to the implementation of this policy.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
Maw .sworth
t
Assistant City Manager
Attachment: Administrative Policy 50-04
APPROVED FOR CITY COUNCIL AGENDA:
ITEM NO*
CITY OF ROSEMEAD
ef.' Administrative Policy Manual
Policy Number: 50-04
Date Established: June 23, 2009
Date Revised: June 23, 2009
City Council Approval:
SUBJECT: NON-PROFIT FUNDING AND ACCOUNTABILITY
PURPOSE: To establish guidelines for funding requests and accountability of non-profit
organizations that request financial support.
Funding Requests
A. All funding requests shall be made in writing to the City Council and will be
considered at a public meeting.
B. To be considered, the following criteria must be met:
a. The organization must be:
i. A non-profit organization with official 501 designation by the Internal
Revenue Service
ii. A public school
b. The organization must be based in Rosemead and meet the same criteria as
set forth in the Recreation Fee Policy to be recognized.
c. The request must be for a unique or emergency situation due to circumstances
beyond control of the existing Board of Directors of the organization. As a
general rule, the City will not provide "start-up funds" for new programs or
provide funding support on an ongoing basis for regular operations.
d. The organization shall open their financial records for review and provide a
detailed spending plan of how the funds will be spent.
C. If funding is approved, the following requirements will be agreed upon by the
organization:
a. The organization will hire a Certified Public Account with experience in non-
profit accounting to prepare the required annual financial statements.
b. A detailed listing will be provided on a quarterly basis to the City of how the
funds were spent including vendors, amounts, and types of goods.
c. The organization shall provide a copy of the annual financial statements that
are submitted to the State of California and the Internal Revenue Service for a
period of two years after the funding has been received.
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