HomeMy WebLinkAbout01C-Community Development
CIO OF SA,. BERNARDQo - REQUOT FOR COUNCIL AcQON
,
From:
Kenneth J. Herxlerson, Director
I'hmn,1i.ty Devel.........,t
Subject:
BREMlA JO RICE - JUVENIIE
~~.1'.1u{ INTERVENl'ICN
POOGRAM
Dept:
Date: May 9, 1989
Synopsis of Previous Council action:
On May 16, 1988, the Mayor and Co.'."" Council CCIlSidend and ~ certain
FY 1988/1989 au; eligible projects, p1:Uy.L...... and activities.
On May 16, 1988, the Mayor and n ..... " Council adcpted a resolution authorizing
and directing the Mayor to execute an agl..........,t between BI:enda Jo Rice
(JUvenile Firesetter Int:.ervent:im Pr~aw) and the City of San Bemardino.
Recommended motion:
'Ihat the financial status of the JUvenile Firesetter Int:.ervent:im P.t."":I.Law be
CCIlSidered in ocnjurx::t:ian with the organizatian's lIR'licatian for J'Dr-y.<.ufit
and ~L status. FUrther, that staff be diJ:ected to take COWLU1J.Liate
action in aooordance with federal, state and local regulations.
~G.~~
Phone:
5065
Supporting data attached:
Ward:
1-7
FUNDING REQUIREMENTS:
Amount:
$18,526.80
Source: (Acct. No.)
121-544-57694
(Acct. DescriPtion) <DBG FY 1987/1988 Allocation
Finance:
Council Notes:
75-0262
Agenda Item NO.~ Y
CIO OF SAN BERNARDQo - REQUIAT FOR COUNCIL ACQON
,
STAFF REPORT
en JlIl1IJ8ry 9, 1989, the Chmll11'\ity Devel~lL Departmant a:n-
ducted a t'L"':fLaw am financial audit of the J\1Yenile Fireset:ter
Intervent:icn P.l."':fLaw. As a result of saic1 audit, a J"111IIlNo,r of
~"':fLaw areas were fCAm1 net to be in CCIIp1iance with certain
federal, state am local. regulations. 'lhe organization did net
have in its p:lill-"'icn certain it.ellls, sud1 as Articles of
IrlooJ:pa1.ation for a I1CI1 profit status, state am federal tax
~L status identificatien, organizatialal. By-Iaws,
Certificate of Evideooe of Authority by the organizatien's
gcvemin;J 1:xxly am PJ:"':fLaw deficien::ies dealin;J with ~....al
ac:x:lO.Il'lt.i prirciples.
en JlIl1IJ8ry 17, 1989, the t'hmIlTIity Devel""}oWCld.. Departmant sent a
letter (Exhibit "A") via certified mail to Ms. Brema Jo Rice
(Juvenile Fireset:ter Interventien P.I::~alII) wtlinin;J the
OCIJOenIS raised by the audit am request.in;J a respcnse regardin:J
saic1 OCIli:lcLl.... CGt'Isequently, follcwin;J IXmIl!l1 prooemn-es am
IIIalDlted policies as identified by the ~___d.. bebleell the
organizatien am the City, all di"'".1rsemeitLs of fIm:Js were pzt
en hold until the ccmems stated in the letter CDlld be suc-
cessfully resolved.
en March 8, 1989, Ms. Rice persavllly delivered a IDt:ari.zed copy
of the Articles of :Inoo1:i"-"-atien which were net ~wed am did
net 0CI1tain the erd...aed seal of the Seclet.axy of state, cqlies
of the lIRllicaticn for ElXBIpt:.icn to the Califamia Franchise Tax
Board dated August 31, 1988, am a copy of ElXBIpt:.icn umer
Sectien SOl (e) (3) of the Internal ReveruIe Code dated Sept:eniler
3, 1988. Ms. Rice also subnitted a CCIIp1eted am IDt:ari.zed copy
of the organizaticn.s By-Iaws. unfortunately, the cqlies of the
required dnoI""""lts did net :imicate proof of the organizatien's
ncn-profit status nor a state am federal tax ~L status
identifica.tien.
en April 20, 1989, t'hmI"1ity Devel~lt staff cart:acted the
Seclet.axy of state. s Office for any updates en the lIRllicatian
am were infonned the Articles of Incorpu....Uan for the t'L"':fLaw
were bein;J forwarded to the Franchise Tax Board (ElXl!!IIpt sectien)
for consideratien before makirJJ a final detel:mination en the
classifica.ticn of the organization. Also cart:acted was the
Internal aeveme service (IRS) which infonned staft the
organizaticn.s lIRllicaticn was returned to Ms. Rice ~1l"'" of
i.ncaIpleteness am that re ..p.....ittal1>'aJld have to be IIBde with
PJ:.....-in;J tees attached for further consideration. To date, no
evidence of ~0Yed Jlai&.u.ufit status or state, Federal tax
exenpt status has been turnished. .
May 9, 1989
75-0264
o
o
o
o
8rAFI' ~ 00lltiDued...
BreIIda Jo Rice
PIIge -2-
I, therefore, nl'::> .........d that the t"J"i_ for reinhlrsement for
the Dalths of !)oo. -.1 oM', 1988 'l:hralgh April, 1989 (a total of
five (5) Dalths), net be ptoc ed until sum time as awLo-
priate tioco""""ltati.cn has been subnitted fran the Secretary of
state's offioe, Frcm:i1ise Tax Boal.'li, ani the InI:ema1 Revem.le
Servioe ani, until sum time as a legal <:pinion has been
remered by the Offioe of the city Attorney re;JaZ'din:;J the
allowabUity of retroactive payments.
KENNEllH J.
Director of cnm.1I'lity Devel.
KllVEIF/lab/3214
attac::hnents
May 9, 1989
.0
o
o
o
CITY OF
San Bernardino
CO.MUNITY DIYILOP..NT DIPARTMINT
KENNETH J. HENDERSON
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 reilllbursement, 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 Authoritv of the
governing body as per Section 20 of your CDBG agree-
ment is not on file.
EXHIBIT "A"
PRIDE -I
~;#,RESS
300 NORTH "0" STREET, SAN BERNARDINO.
CALIFORNIA 12418.0001 714"1.-1011
!!
"'.0
.BJ'enda Jo Rice
January 17, 1989
Page -2-
o
o
o
( .
5. a) The overall utilization and expediture of funds as
it pertains to the CDBG FY 1988/1989 agreement,
Secton 4, subparts (a), (b) and (d) are not in
compliance. Improper travel justifications and
documentation ia being submitted.
b) Reimbursement justifications are submitted without
proper documentation for salaries and are based on
aross income criteria versus Bat income criteria
contrary to Section 4, subpart (d) of your CDBG
agreement.
6. Overall expenditures are not documented within
generally acceptable accounting principles contrary to
Section 5, subparts (b) and (c) 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 vague and do not measure
actual preventative trends on how this program is
impacting the City of San Bernardino (Section 6, CDBG
agreement).
8. Disbursement of CDBG funds have previously been made
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 (d). 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
Specialist
cc: Director of Community Development
File