Every neighborhood that receives NRP funds from the
city is audited every year by the Minnesota State
Auditors. The financial condition of each corporation
(neighborhood association) is highlighted in the
management letters of each audit. Recommendations are
made to address any and all conditions that exist that
may be of concern.
The corporations (neighborhood associations) must
respond to these recommendations by outlining plans to
correct them. Neighborhood Specialists at the NRP
will work with any organization that requires
assistance to rectify these situations.
If the items addressed in the audit are not rectified,
the NRP can sanction the organization and rescind it's
right to receive funding as happened with the People
of Phillips. There are also less severe options such
as fining the organization or placing moratoriums on
their funds.
This has been the exception in NRP, not the rule. As
I have said in previous posts, most of the
neighborhoods are in good financial condition and
their audits prove it. All audit reports are public
information and copies may be obtained from the NRP
office upon request.
The NRP offers in depth trainings on every aspect of
financial management and many people have attended
them and are employing the recommended operating
models. Neighborhoods know what is expected of them
and most are in excellent financial shape.
The neighborhood association recieves only a small
percentage of their total neighborhood NRP allocation.
Funds allocated for housing, commercial development,
public works, park, or school projects are transferred
from the MCDA directly to the appropriate source or
administering agency. Educational programs are
administered through the public schools to agencies
selected by the neighborhoods for program delivery.
Social service programs are administered through the
county in the same manner.
The neighborhood association receives administrative
funding to pay staff for planning and implementation
activities and in some cases they also do direct
program delivery. These are mostly livability, youth,
community building and some environmental programs.
These are relatively small contracts. Even with
these, the neighborhood is not given the entire
contract amount at one time. They receive 25% of the
contract amount or $10,000 which ever is less as an
advance on the contract. The rest is issued on a
reimbursement basis. Each reimbursement request is
accompanied by the check register which shows who the
check was issued to and the amount.
Central is going through a troubling time. Not unlike
the Whittier neighborhood did in 1996. In a
turmultous transition like the one Central is going
through, it will take time for the new board and new
staff to fully grasp all that took place before they
arrived. Hopefully, they will hire staff or
consultants that can objectively look at their
financial situation and put a system in place that
will stabilize them.
The advice I give to many of my neighborhoods is that
neighborhood associations need three elements. They
need a strong administrator, a good visionary, and a
great organizer. Seldom are these qualities found in
one person. I believe that the board of directors and
neighborhood volunteers should be providing the vision
and clear direction to the staff people. So, when you
hire staff, make sure the person you hire has a proven
record of being a good administrator and financial
manager or the skills to be a good organizer. If you
can't afford both an administrator and an organizer,
then hire an organizer and contract with a bookkeeper
or an accountant to manage your finances.
There are a lot of neighborhood associations who are
doing it right. If you want to talk to some of them,
e-mail me off list and I will give you contacts.
Barb Lickness
Whittier
Ward 6
City Council Candidate
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