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wrl=oP SAN "RNARDI~ - R_U~ FOR ~L .~
From
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SuINlct:
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t' -uty 0IWl., 4.
Dell Illy 9, 1989
!lvnopl/l of Prell IOUI CouncillCtion:
~ Illy 16, 1988, the Mayar and t' " CDmcil ccna1dInd and ......--.m ClIEta1n
f'V 1988/1989 CIID el1gihle prajecta, Po..,. and 8Ct1viU.. '
U'l ~:(16, 1988, the Mayar and l'I. . CDmcil """ ,..... a ~~.m. . ~~-idn.J
and d1.rect1rI:J the Mayar to -g an ..... 4. malllll IlL_A .TO ltb>> ' .
. (..J\NwU1e ru-.tter Intmwnt.1al P.........-> and the d.t)' of 8m .....~., '
H. ,,,,,mln,1tKt motion:
'Ihat the tinBncia1 atat:ua or the .J'IIWni1e Fir . 1- ~ 1\........_ be
<uwider8l in ocnjunctiCln with the ~'. "lIP,........, tClr JlCI.--..4J.t
aftl ~ _.L atatua. llUrthIIr, that ataff be dh.- to taka __late
actian in accardance with ~.u, atata aftll.oc:lll ~.
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II' f U , ,Nt. 'ton
Ken ~ nor.
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Phone:
5065
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'I.lIIll't"'q Itata attached:
'WIrcI:.
Source: (Acct. No.1
118,526.80
121-544-57694
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· """"NG REOUIREMENTS:
Amount:
fAcet. DncriDtionl CIID rr 1987/1988 A.l'-1~
.FiIwa:
'01.( Nutel
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CI'<;- OF SAN BERNARDIQ - REQUEcr FOR COUNCIL AC'hbN
STAFF REPORT
. On Jarmary 9, 1989, the C:;rorm1Tlity Devel..........Jt DepBrt:ment can-
duct:sd a lo'LuJ<.a8l an:!.firwcial audit of the Juvenile F~
Interventi.en Pl........... 'Ai a result of sa!d audit, a ,..- of
~"""'CIIU areas. were fQUJi IK:lt to be in CCIIpliarxle with certain
federal, state an:! local regu1aticns. '!be ~tien did IK:lt
have in its pcss--ien certain items, such as Articles of
In.::loJ:po1:ation for a non profit status, state an:! federal tax
~ status identificaticn, organiza~ By-Laws,
Certificate of Ell'ideI,:lce.qf Authority J::rf the organizaticn's
gayerni.rJ) I:lody an:! ~~./.a.. deficiencies dealinJ with general
ac::x:nmtin;J principleS.
On Jarmary 17, 1989, the (;nmI1TIity Devel..........Jt DepBrt:ment sent a
letter (Exhibit "A") via certified mail to Ms. Brema Jo Rice
(JUvenile F~ Interventi.en P........._) CA1tl:inin;J the
concems raised J::rf the audit an:! requestinJ a l.'eSpCIlSe regartiiJ'q
said concems. Oansequent1y, follawi.n;J nomal p1:ooenl11'S an:! .
mandated policies as identified J::rf the ag1.eement bebleen the
organizatien an:! the City, all disbJrsements of fI.n:Js were p.lt
on hold until the concems stated in the letter ocWd be suc-
cessfully resolved.
On March 8, 1989, Ms. Rice personally delivered a ootarized <XF.{
of the Articles of Ir-....IL~tien whicil were IK:lt ~ an:! did
IK:lt contain the emorsed seal of the Secretazy of state, cq>ies .
of the awlication for exenpti.cn to the California Frand1ise Tax
Board dated August 31, 1988, an:! a <XF.{ of exenpti.cn umer
Section 501 (c) (3) of the Intemal Revenue o:de dated septeni:ler .
3, 1988. Ms. Rice also sub1Iitted a CCIIpleted an:! ootarized <XF.{
of the organization's By-Laws. Unfortunately, the cq>ies of the
required dQcI""'""Its did IK:lt :inllcate proof of the organization's
non-profit status nor a state an:! federal tax ...........,L status
identification.
on April 20, 1989, I"'nrmIlTIity I)evel~Jt staff ClCI1tacted the
SecIetary of state's Office for any updates en the awlication
am were infcmned the Articles of Inco1~<llticn for the ~"""'CIIU
were beirg forwarded to the Frand1ise Tax Board (exeupt sectien)
for oonsideratien before makin;J a fjnal detetminaticn en the
classification of the organization. Also CXI1t:act.ed was the
Intemal Revenue Service (IRS) whicil infcmned staff the
organizatien! s awlication was returned to Ms. Rice bee.."..... of
inxItpleteness am that re-sul:Ini.ttal WQ.J].d have to be made with
prooessinJ fees attadled for further <XlI1Sideration. To date, no
evidence of awroved rxn-profit status or state, Federal tax
exenpt status has been furnished.
Mav 9, 1989
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fI1!Ii7If ~ CClDt,~""*'."
BNDdaJoRice
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I, therefore, Z'e':' ....m that the cl",i""" for reinbJrsement for
. the IIICI'lths of Dec-.i'llii,1988 thrcu;Jh April, 1989 (a total of
five (5) 1IICI'lths), not: l;lEI PX(.~ -ed until such tilIIe as appr0-
priate documentati~'~J~en subnitted frail the Secnrt:ary of
state's office, ~'l'IPC BcllI.rd" ~ the Intema1 RsverAJe
Selvioe am, W'ltil liIUch'. 'I::iiDe as a leg8l cpinicn has been
ren:iered by the Office of the City Attomey reganiin;J the
allowability of retroiIctive payments.
ICH/EIF jlabj3214
attac:hments
May 9, 1989
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CITY OF
San Bernardino
eo..u.." DIWILOP.I.' DIP".'...'
KEN NET H. J. HEN 0 E R SON
DIRECTOR
January 17, 1989
Ms. Brenda Jo Rice
Juvenile Firesetter Prevention Program
200 East Third street
San Bernardino, CA 92410
Re: FY 1988/1989 CDBG AGREEMENT REVIEW
Dear Ms. Rice:
I am in receipt of the December, 1988, request for reim-
bursement of funds from your organization dated January 9,
1989. Upon review of your request for reimbursement, a
number of concerns have arisen which need to be addressed
and corrected prior to additional CDBG funds being
disbursed as per Section 11 of your FY 1988/1989 CDBG
agreement. Specifically, the concerns in question are as
follows:
1. A completed copy of the Articles of Incorporation for
your non-profit agency are not on file which are
certified as being approved by the Secretary of the
state of california, coupled with the imprint of the
state Seal of California as mandated by the City of
San Bernardino.
2. A completed and notarized copy of the By-Laws govern~
ing your organization are not on file as required by
the City of San Bernardino.
3. Since your organization is a non-profit organization,
the City is required to have your SOlC(3) Tax Exempt
status Number on file. This identification number has
not been furnished to the City as of this date.
4. A certified copy of Evidence of Authority of the
governing body as per Section 20 of your CDBG agree-
ment is not on file.
EXHIBiT "A"
PRIDE -I
~IrRESS
100 NORTH 0 STREET. SAN BEANAADINO.
CALIfORNIA 924'8.0001 114/1'._'1"
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Brenda Jo Rice
January 17, 1989
Page -2-
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s. a) The overall utilization and expediture of funde as
it pertains to the CDBG FY 1988/1989 agreement,
Seeton 4, subparts Ca), Cb) and Cd) are not in
compliance. Improper travel justifications and
documentation is being submitted.
b) Reimbursement justifications are submitted without
proper documentation for salaries and are based on
aross income criteria versus nit income criteria
contrary to Section 4, subpart Cd) of your CDBG
agreement.
6. OVerall expenditures are not documented within
generally acceptable accounting principles contrary to
Section 5, subparts Cb) and Cc) of your CDBG agree-
ment.
7. Clear and quantified reporting activities as it
pertains to services being rendered to low and
moderate income families are vaque and do not measure
actual preventative trends on how this program is
impacting the City of San Bernardino CSection 6, CDBG
agreement).
S. Disbursement of CDBG funds have previously been lIIade
for the months of JUly, 1988 through November, 1988
with payroll salaries being reimbursement by the
Community Development Department which are contrary to
the CDBG agreement, Section 4, subpart Cd). This .
being the case, staff is hereby requesting evidence of
payments to the entitled governmental agencies of
employee taxes, social security, and/or other with-
holdings as per your CDBG agreement as described
above.
Your cooperation and written response to.these concerns
will allow us to expedite your payment request as quickly
as possible. Your December reimbursement request is
attached to be resubmitted once the concerns in questions
are corrected.
Should you require additional information or clarification
regarding the above referenced concerns, please do not
hesitate to contact me at 714/384-5065.
Re
ectfuII~~_
Edward L. Flores
Community Development Specialist
ee: Director of Community Development
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