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Home My WebLink AboutBIL 072 Draft 01 1998-2000 COUNTY OF HAWAII STATE OF HAWAII BILL NO. 72 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 25, OF THE HAWAII COUNTY CODE 1983 (1995 EDITION), AS AMENDED, RELATING TO CONDITIONS FOR GRANTS TO NONPROFIT ORGANIZATIONS; PROCEDURES FOR AWARDING GRANTS; RECORDS, REPORTING, AND FISCAL ACCOUNTABILITY REQUIREMENTS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI°I: SECTION 1. Purpose. The Council finds it necessary to assure fiscal accountability of grant funds awazded to nonprofit organizations by (1) requiring the submittal of revised budgets, annual expenditure plans, and quarterly expenditure reports; (2) establishing procedures for the disbursement of grant funds and recovery of unencumbered appropriation balances; (3) providing authority for reassignment of grant funds when a recipient can no longer or is unwilling to provide the public service for which the grant was appropriated; and (4) monitoring the staffing of positions supported in whole or part by County funds, to include recovery of funds for vacated or unfilled positions. SECTION 2. Chapter 2, Article 25, Section 2-138 of the Hawaii County Code 1983 (1995 Edition), is amended to read as follows: "Section 2-138. Conditions for grants or purchase of service agreement. (a) Nonprofit organizations to whom a grant has been made or a purchase of service agreement awazded shall agree to comply with the following conditions before receiving the grant or purchase of service agreement: (1) Employ and appoint persons on the basis of merit and ability; (2) Comply with applicable Federal and State laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or handicap; (3) Agree not to use any public funds for purposes of entertainment or perquisites; (4) Comply with such other requirements as the director may prescribe to ensure adherence by the non profit organization with Federal, State and County laws, and established standazds fot fiscal and program management; I (5) Allow the director, the committees of the council and their staffs, and the legislative auditor access to records, reports, files and other related documents in order that the program, management, and fiscal practices of the nonprofit organization may be monitored and evaluated to assure the proper and effective expenditure of public funds. (6) Submit a final revised budget and fiscal yeaz quarterly expenditure plan equal to the amount of appropriated funds to the director and to the legislative auditor not later than August 31 following favorable action by the council to appropriate grant funds." SECTION 3. Chapter 2, Article 25, Section 2-139 of the Hawaii County Code 1983 (1995 Edition) is amended to read as follows: "Section 2-139. Procedure for awarding and disbursement of grants. (a) All grants made to a nonprofit organization by the County shall be made in accordance with the following procedure: (1) Annually, before November 30, the director shall, for the purpose of soliciting applications, establish a sum of at least $900,000 to be available in the ensuing fiscal year for funding requests by nonprofit organizations. In any event, the maximum amount to be made available for grants shall not exceed one percent of real property tax income. The director shall publish a notice soliciting applications in two newspapers of general circulation within the County of Hawaii by November 30. (2) All applications for grants shall be submitted to the director on or before January 31 preceding the County's fiscal yeaz, which begins on July 1. Applications shall be prepared on forms provided by the director. Applications not in conformance with the requirements of the County Code may be rejected. (3) The director shall submit to the council all qualifying applications for its review and appropriation of funds. Site visitations of nonprofit organizations submitting complete applications shall be conducted after January 31 but prior to final action on the operating budget by the council. These site visitations shall be conducted in a manner that allows flexible councilmember participation and designated staff support. (4) Upon favorable action by the council to appropriate funds for the grant, the director shall notify agencies of their funding or lack thereof by July 31 and awazd the grant in compliance with this article. (5) Quarterly disbursement of County funds shall be made in arreazs upon receipt of a quarterly expenditure report submitted to the director and the legislative auditor not later than five working days following the expiration of the quarter in accordance with Section 2-142(e) of this article. Grantee organizations shall deduct from the quarterly request for payment the amount of any salary monies, payroll taxes and employee benefits attributed to vacant or unfilled positions funded by the County of Hawaii. 2 (b) In the event that a grantee nonprofit organization is unable or unwilling to provide the public service(s) for which a grant was appropriated, the mayor may direct the finance director to solicit applications from eligible nonprofit organizations to fulfill the specific public purpose(s) for which the funds were originally appropriated for the remainder of the fiscal year. The director shall forwazd recommended application(s) and appropriation measure(s) to the council for its decision. Funds appropriated to a successor non-profit organization shall not exceed the balance of unexpended County funds awazded to the original grantee nonprofit organization. Upon completion of a specific re-appropriation process any remaining non-appropriated funds may be allocated to cuaent fiscal veer grant recipients at the discretion of the Council." SECTION 4. Chapter 2, Article 25, Section 2-142 of the Hawaii County Code 1983 (1995 Edition) is amended to read as follows: "Section 2-142. Records, [and] reporting, and fiscal accountability requirements. (a) The nonprofit organization shall follow generally accepted accounting procedures and practices and shall maintain books, records, documents and other evidence which sufficiently and properly account for the expenditure of County funds. The books, records and documents shall be subject at all reasonable times to inspection, reviews, or audits by the County expending agency, the director, and the legislative auditor, or by their representatives. (b) The County expending agency, duector of finance, or County council may request periodic written reports on the use of County funds. (c) In the case of purchase of service agreements, the nonprofit organization shall submit a written report to the legislative auditor within sixty days after June 30 of the contractual yeaz and an interim report no later than January 31 of the contract period. The report shall include, but not be limited to, a detailed description of how the County funds were used, public benefits derived from their use and a breakdown of other funding sources and their expenditures. (d) In the case of grants, the nonprofit organization shall submit a final written report to the legislative auditor within sixty days after June 30 of the fiscal yeaz. The report shall include an explanation of the public benefits derived from the awarding of the grant and a listing of other funding sources and amounts obtained during the award period. (e) In any instance when a position funded in whole or part by County funds is vacated or otherwise unfilled the grantee nonprofit organization shall report the starting and ending date(s) of said unfilled or vacant position(s). Grantee organizations shall also report the amount of salaries payroll taxes and employee benefits attributed to said unfilled or vacant position(s) for which County funds were appropriated in quarterly expenditure reports to the director and legislative auditor. 3 (f) A grant recipient who knowingly withholds or omits any material facts, or deliberately misrepresents such facts to the director of finance, the legislative auditor, or the County council, shall be in violation of this article. The grant recipient shall be prohibited from applying for any grant funds under this article for a period of five years upon such finding by the director of finance." SECTION 5. In the event that any portion of this ordinance is declared invalid, such invalidity shall not affect the other parts of this ordinance. SECTION 6. Material to be deleted is bracketed and material to be added is underscored. SECTION 7. This ordinance shall take effect on July 1, 1999. INTR DUCED~~ COUNC MBER, CO TY OF HAWAII Hilo, Hawaii Date of Introduction: Date of 1 Reading: Date of 2"" Reading: Effective Date: jtEt-tt{tdCFi Comm. 263 4