The Greensboro City Council plans to make it easier to give money away at the Tuesday, Oct. 3 meeting in the Katie Dorsett Council Chamber.
Item I.2 on the agenda for the meeting that begins at 5:30 p.m. is a resolution to amend a resolution passed by the City Council in 2004 that requires all nonprofit agencies that receive funding from the city to provide the an external audit to the city’s Internal Audit Division.
The information in the agenda packet notes that staff has been ignoring this procedure for nonprofit agencies that receive $25,000 or less from the city and requiring those nonprofit agencies to submit a “financial review” instead of a full audit.
The resolution, if passed by the City Council, would set the bar at $100,000 instead of $25,000. So only nonprofit agencies that receive more than $100,000 from the city would be required to submit a full audit for review. Nonprofit agencies that receive less than $100,000 would be allowed to submit a financial review along with meeting the other criteria, such as providing a form that confirms the agency is in fact recognized by the IRS as a nonprofit agency.
Staff notes that under this proposed amendment to the 2004 resolution, only two of the 16 contracts with nonprofit agencies approved in the current 2023-2024 budget would be required to submit a full audit. Those two are the Greensboro Chamber of Commerce, which is receiving $200,000, and the Downtown Greensboro Inc. Ambassador Program, which is receiving $190,000.
The resolution calls for the amendment to be retroactive to all the agencies funded in the 2023-2024 budget as well as nonprofit agencies that are under contract to receive American Rescue Plan (ARP) enabled funds.
The City of Greensboro dumped all $59.4 million in ARP funds into its general fund. By doing this the city did not have to follow the reporting guidelines for allocating those funds to individual projects or agencies and since it allocated the money in one fell swoop, the deadlines for spending the money also became moot.
As a result the money being allocated to nonprofit agencies are not ARP funds, but money in the city’s general fund that was freed up by the extra $59.4 million in ARP funds that was added to the city’s revenue.