HomeMy WebLinkAboutCOM 0149.005 2022-2024 PI �A�
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CDMK,
IrAdk Anil Ash., Ash,it
F09AKU MIMAKA
Testimony of
LEILA KEALOHA,
Executive Director of Pohaku Pelemaka 501(c) 3 nonprofit
Before the
Hawaii County Council m p
COMMITTEE ON GOVERNMENTAL OPERATIONS
AND EXTERNALAFFAIRS v
West Hawaii Civic Center
74- 5044 Ane Keookalole Highway,Building A
Kailua-Kona,Hawaii
April 18, 2023
1: 00 P. M.
In consideration of
AN ORDINANCE AMENDING CHAPTER 2,ARTICLE 25, SECTION 2- 138, OF THE
HAWAII COUNTY CODE 1983 (2016 EDITION,AS AMENDED),RELATING TO
APPROPRIATION OF FUNDS TO NONPROFIT ORGANIZATIONS.
April 17, 2023
Aloha Kakou,
We, Pohaku Pelemaka are in strong opposition of Bill 32. Bill 32 proposes to amend the
appropriation of funds received by nonprofit organizations as follows:
4)Public funds shall not be used for the repayment of debts held by the nonprofit organization;
5)Public funds shall only be used for the actual cost of expenditures that are necessary and
directly applicable to the service or activity covered by the grant agreement;
The language effectively removes the 10%Administrative Allowance that is currently allowed in
nonprofits budgets. That 10% SHOULD BE the minimum, not the maximum allowed amount
as other jurisdictions and public grant sources allows 15% and up to 25% for administrative
allowance. Further, this Bill should be used to create a uniform method for the County of Hawaii
to award grant funds instead of denying nonprofits the administrative allowance.
At this point, there is NO DEFINITION for Administrative Allowance and discussions trying to
differentiate between administrative expenses related to a grant activity versus administrative
expenses related to the nonprofit operations. In truth, there is no such distinction. Administrative
allowance should be allowed and covers general liability and directors/officers' insurance,
accounting, facility costs, professional services such as legal costs, salaries/wages and office
Comm. - 'fit.
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MRAKU UMAKA
equipment. These costs DO NOT NEED to be parsed out and divided up between the many
projects and services a nonprofit is providing. That is time consuming and it would be difficult to
be accurate.
We need a bill that maintains a minimum of 10% administrative allowance for all County grants.
The only time it makes sense to establish 10% administrative allowance as the maximum is in
those situations where the nonprofit is fiscally hosting a community group that is not a 5016.
Mahalo for the opportunity to testify on this measure.
Me ke aloha pumehana,
LeiCa `KeaCoha
Leila Kealoha, Executive Director
Pohaku Pelemaka