HomeMy WebLinkAboutS1- The boys Club CITY OF D ' 15 RNAR[)11k'*) - REQUEST =OR COUNCIL. ACTION
From: Mayor Minor Subject: Discuss and take possible action
relative to repayment of General
Dept: Fund monies to the State for
disallowed costs relative to
Date: September 15 , 1994 program funding to the Boys Club
by JTPA.
Synopsis of Previous Council action:
I
I
Recommended motion:
Discuss and take possible action relative to repayment to the
State of California Employment Development Department, of $3 ,789 . 90
in General Fund monies for disallowed costs relative to program
funding to the Boys Club by JTPA.
Signature
Contact person: Ernie Wilson Phone: 5004
Supporting data attached: Yes Ward:
FUNDING REQUIREMENTS: Amcunt:
Source: LAcct. No.)
Acct. Description)
Finance:
Council Notes:
75-0262 Agenda Item No.
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
SUBJECT: Disallowed Cost - Boys' Club
In 1993 the San Bernardino Employment and Training Agency (SBETA) contracted
with the Boys ' Club of San Bernardino. A unified audit was conducted by I
Conrad and Associates in 1985, in which the auditors disallowed $10,782
from the Boys ' Club due to a lack of supporting documentation to justify
general and administrative expenditures.
In addition, the auditors attempted to meet with the Boys ' Club staff to
assist them in reconstructing their records. However, it was reported that
the Boys ' Club was unwilling to cooperate with the auditors; therefore, no
costs were ever substantiated by the Boys ' Club.
Nevertheless, SBETA continued to offer alternate methods to the State in
lieu of said disallowed cost. Moreover, a stand-in cost method was used
to repay the debt. However, documentation could only provide support for
$6,999. 10, leaving an outstanding debt of $3,789.90, due and payable to
the State of California Employment Development Department.
According to JTPA Final Rule 627.435, Cost Principles and Allowable Costs,
and JTPA Directive dated August 10, 1994, Allowable Cost Principles, the '
disallowed cost levied against the Boys ' Club cannot be paid with JTPA
funds. Therefore, retribution must come from the City General Fund, Boys '
Club, or another funding source other tliaii JTPA.
Please be informed that the Department of Labor refuses to prolong this
matter any further.
Please see attached letters dated July 5, 1994 and August 18, 1994.
75-0264
Y O F
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. ;'i`, . B�pJ all ernardlno
'yDED IN�
E M P L 0 Y M E N A N D T R A I N I N G A G E N C Y ( S S E T A )
G _ O R G __ _ i w A R A
7 0 R
August 18, 199=
Ms. Marsha Nakawatase
Counsel Audit Resolution
Technical Support Unit I
Employment Development Department
P.O. Box 826880 MIC 69
Sacramento, CA 94280-0001
Dear Ms. Nakawatase,
As previously discussed w;th Mr. David Simpson, Audit Resolution
Representative, pertaining to the outstanding debt of $3,789.90, in
which costs were disallowed as general and administrative to the Boys
Club of San Bernardino.
Please be informed that Mayor Tom Minor, of the City of San
Bernadino, is currently reviewing the mechanism to close out said debt.
If additional information is required, please contact me at (909) 888-
7881 . '
Sincerely,
Ernest B. Dowdy
Acting Executive Director
EBD/bf
cc:, Mayor Tom ,-Minor
Ernie Wilson, Affirmative
Action Officer
Attachment:
PRIDE
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We Tdould ?:'_ _°_C.3te ^av-_;ent of this outstanding debt
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cCntaCt id,___ -._= Cl=neer oL the Resolution and Tec Technical
Suppert Un__ discuss a pay- ent plan prior to
jll_y 22 , _� �_ . '?=. Cu_^.=een Can be reached at (916) 654-%9C^ .
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Your p-c..ti= _ttentier_ tc this :;tatter is appreciated.
'iery tr___r ^L_
Counsel
�nclosu=_
and ^ec_.ical Succor: Unit
icb _a_--_:g Pa-tn=_shi p Division, ?IC 69
Linda
Rece-4va'le Unit
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