HomeMy WebLinkAboutReso 61-19 Donations and Grant Management PoliciesRESOLUTION NO. 61-19
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
ESTABLISHING THE CITY OF MORRO BAY'S ACCOUNTING AND
FINANCIAL REPORTING POLICIES RELATED TO DONATIONS AND GRANT
MANAGEMENT POLICIES
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay wishes to establish Financial policies to direct staff and
provide transparency to the Council and Community; and
WHEREAS, those policies include a policy related to donations to the City; and
WHEREAS, those policies include a policy outlining the City's Grant Management practices; and
WHEREAS, staff recommends the City Council adopt the proposed Donation and Grant
Management Policies, which demonstrate the City's commitment to fiscal responsibility and prudent
management and is consistent with Government Accounting Standards,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California,
the "Donation Policy," asset forth in Exhibit A, and "Grant Management Policy," as set forth in Exhibit B,
attached hereto and incorporated herein, are hereby approved.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on the 25h day of June 2019, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
HeaAA; ng, Addis, Davis, McPherson
None
Heller
ouyzo o tJ
A SWANSON, City Clerk
01181.0001/480959.1
Resolution No. 61-19
Exhibit A
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COUNCIL POLICY
DONATION POLICY
Policy Statement
The City of Morro Bay (City) is afull-service City, providing essential services to over 10,000 residents
related to public safety, planning, building, public works and recreation. In addition, the City has a vibrant
tourism industry, attracting thousands of visitors annually, all of whom utilize City services in some fashion.
As such, it is prudent for the City to establish sound financial management policies that conform with
generally accepted accounting principles and state regulations. In some cases, individuals, community
groups and businesses may wish to make donations to the City in either cash, in -kind contributions that
enhance projects, facilities and programs, or equipment donations.
Purpose
The City recognizes that it is acceptable and appropriate to accept donations, in order to enhance City
programs and/or facilities, to provide a higher level of service to the public and, as such, welcomes
donations of cash, in -kind contributions and equipment to help fund projects and City needs.
Policy
The City of Morro Bay welcomes and appreciates donations that meet the one or more of the following
objectives:
• The donation must have a purpose consistent with City goals and objectives;
• The City may decline any donation without comment or cause;
• The donation will not be in conflict with any provision of the law;
• The donation will be aesthetically acceptable to the City;
• The donation will not add to the City Is workload unless it provides a net benefit to the City;
• The donation will not bring hidden costs such as starting a program the City would be unwilling to
fund when the donation was exhausted.
• The donation places no restrictions on the City, unless agreed to by the City Council.
• The donation shall become property of the City unless there is a written, executed agreement to the
contrary.
• Donations exceeding $5,000 shall be accepted through a written agreement consistent with these
guidelines and approved by the City Council. In -kind capital donations will be subject to normal City
review, permitting, inspection, and insurance requirements.
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Resolution No. 61-19
COUNCIL POLICY
GRANT MANAGEMENT POLICY
Policy Statement
Exhibit B
Given the City's fiscal challenges and long-term budget forecast projections, grant revenues are an even
more important part of the City's overall resource picture, especially in funding capital improvements.
Although grant programs themselves are being reduced and becoming more competitive, actively seeking
out grant revenues that assist in achieving identified City goals and objectives should nonetheless play a
key role in the City's overall financial health strategies.
The purpose of this policy is to set forth an overall framework for guiding the City's use and management of
grant resources.
Goals
1. Set forth the importance of grant programs in accomplishing City goals and objectives.
2. Establish general concepts and framework for seeking and managing grant programs.
3. Identify roles and responsibilities in managing grant programs.
4. Establish criteria for evaluating the benefits and costs of grant programs.
5. Set forth the City's policy in complying with Single Audit Act requirements.
General Concepts And Framework
1. The City will aggressively pursue grant funding from federal, state and other sources, consistent with
idened City goals and objectives.
2. Aside from entitlement grants, the City should focus its efforts on securing grants for capital
improvementsI This approach will allow the City to compete for projects we might not otherwise be
able to afford while maintaining financial independence should future grant sources diminish. Grants
for operating purposes may be considered on a case -by -case basis after careful consideration of the
benefits of the program and the ongoing impacts on the City if grant funding is no longer available.
3. Until the City's financial situation significantly improves, we should avoid grants that fund "pilot"
operating programs or short-term staffing enhancements to existing programs. Taking on these
programs could ultimately aggravate the City's fiscal position should the desire for the program
remain once the grant funding is no longer available.
4. The City will only seek grants when sufficient staff resources are available to effectively administer
the program in compliance with grant requirements and successfully perform the grant work scope.
5. Indirect costs of administering grant programs will be recovered to the maximum extent feasible.
6. Operating departments have the primary responsibility for seeking out grant opportunities, for
preparing effective grant applications and for successfully managing grant programs after they have
been awarded.
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Resolution No. 61-19
Exhibit B
7. Operating departments should develop a simple system that tracks grant funding availability in their
functional areas. Using this system, all capital improvement plan budget requests will evaluate and
document the ability of grants to assist in funding the project.
Roles And Responsibilities
City Council
1. Approves grant management policies.
2. Approves all grant applications in excess of $25,000 and delegates. receipt and contract execution to
the City Manager if delegation is allowed by the grantor agency. The City recognizes that in some
cases it may be impossible to bring forth a grant opportunity to Council prior to submission, given
that in some cases timelines for submittal are short. In such cases, and only with the City Manager's
approval, a notification of submittal will be presented to the City Council next reasonably available
City Council meeting.
City Manager
1. Receives grants and executes related contract documents when delegated to do so by the Council.
2. Develops, recommends and maintains grant management policies.
Operating Departments
1. Develop systems for maintaining ongoing information regarding grant availability within their
functional areas of responsibility.
2. Evaluate benefits and costs of specific grant programs on a case -by -case basis:
a. Purpose of the grant program and its consistency with identified City .goals and objectives.
b. Additional staffing, office space, facilities, supplies or equipment that will be required if the grant
is awarded.
c. Ongoing impacts of the grant program after it is completed.
d. Responsibilities of other departments and impacts on them in preparing the grant application or
performing work scope if the grant is approved.
e. Amount of indirect costs to be recovered from the grant,
f. Total program costs, including portion funded through grant revenues and any required City
contribution.
g. Source of funding for any required City share.
hI Compliance and audit requirements, paying special attention to those areas where the grantor's
administrative procedures are different than the City's.
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Resolution No. 61-19
Exhibit B
3. Prepare grant applications.
a. Work with the grantor agency in identifying special program requirements and developing
strategies for preparing a successful grant application.
bI Complete grant application documents.
c. Coordinate with affected departments as necessary.
d. For grants in excess of $25,000, prepare a Council agenda report requesting authorization to
seek grant funding. This report should describe the grant program's conformance with this policy,
including the results of the cost/benefit analysis.
e. For grants of $25,000 or less, submit the grant application, subject to the following conditions:
® It will not add regular staffing.
• Any matching funds or in -kind contributions are already available within existing resources, and
no additional appropriation of unreserved, undesignated fund balance or working capital is
required.
• At the conclusion of the grant, there will no ongoing commitments or obligations to continue the
program.
• The purpose of the grant program is clearly consistent with current City plans, policies and
goals.
4. Administer grant programs if awarded.
a. For grants in excess of $25,000, prepare a City Manager Report (or Council agenda report if
required by the grantor agency) accepting grant award, budget amendment request and any
other required City forms or documents; and coordinate execution of grant documents by the
City Manager and return executed documents to grantor agency.
b. For grants of $25,000 or less, execute and return grant documents to grantor agency
c. Notify affected departments of grant award.
d. Maintain financial and other records in accordance with grant requirements.
e. Complete and submit required reports, including requests for funds.
f. Monitor grant expenditures and receipt of revenues.
g. Coordinate on -site management reviews by the grantor agency during the grant term.
h. Ensure compliance with grant requirements, paying special attention to those areas where the
grantor's administrative procedures are different than the City's.
Perform the grant work scope.
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Resolution No. 61-19
Exhibit B
5. Complete grant closeout.
aI Complete the grant work scope.
b. Notify affected departments that the project is completed and schedule a "close-out" meeting if
necessary, to resolve any final procedural issues.
c. Ensure final receipt of grant revenues.
d. Prepare and submit any required grant close-out documents.
e. Review grant file for completeness.
f. .Retain all necessary program and financial records for the period of time required by grantor
agency.
g. Coordinate any on -site management reviews or audits after the grant is completed.
h. Resolve any audit findings.
i. Ensure that the City's policy regarding single audit act requirements is implemented as discussed
below.
Finance Department
1. Provides technical assistance to operating departments in preparing grant applications, submitting
reports and maintaining records.
2. Coordinates preparation and distribution of single audit reports.
Other Departments
Provide assistance to the managing department as identified during the grant application and award
process.
Single Audit Act Requirements
Background
The City is subject to the financial and compliance requirements of the Single Audit Act of 1984, which is
applicable to all local and state governments expending more than $750,000 in federal financial assistance
during a fiscal year. The purpose of the Act is to:
1. Improve the financial management and accountability of state and local governments with respect to
federal financial assistance programs.
2. Establish uniform requirements for audits of federal grants.
3. Promote efficient and effective use of audit resources.
Resolution No. 61-19
Exhibit B
4. Assure that federal departments and agencies rely upon and use audit work performed during a
single audit rather than performing the audit work themselves.
Under this Act, federal grants are included under an inclusive single audit program that is incorporated into
the City's annual audit and financial report preparation process. During the audit, tests are made to
determine the adequacy of the internal control structure, including that portion related to federal financial
assistance programs, as well as to determine that the City has complied with applicable laws and
regulations.
City's Policy Regarding the Single Audit Approach
For federal grants included in the scope of the City's single audit approach, it is the City's policy that all
financial and compliance issues have been met through the single audit, and follow-up audits to determine
these issues are not necessary unless specifically related to findings or recommendations included in the
single audit report. As noted above, the purpose of the Act is to establish uniform audit requirements,
promote efficient use of audit resources, and assure that federal agencies rely upon audit work already
completed; its purpose is not to audit local agencies twice. Accordingly, the City will strongly resist any
efforts by federal agencies to duplicate audit work already performed in complying with Act requirements. As
such, whenever federal grantor agencies request final audits, the managing department should notify the
Department of Finance in order to ensure a consistent response to these types of requests.
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