I would like to clarify some of the discussion
regarding about the "fiefdom". Here are some facts
about the relationship between the NRP office and
neighborhood associations with reference to the
financial management function. 

When the NRP program began several years ago, the city
began by issuing a Request for Proposal inviting
groups within neighborhoods to submit an application
to facilitate NRP planning and implementation
activities on behalf of the neighborhood.  Each
neighborhood group comprised of various stakeholders
prepared a participation agreement outlining how they
would conduct planning activities in the neighborhood.
The participation agreement was presented to the full
neighborhood for approval and the neighborhood group
was given a vote of confidence by the
community-at-large through neighborhood approval of
the participation agreement.  This agreement was
reviewed and approved by the NRP Policy Board and the
City Council prior to a neighborhood engaging in any
NRP related activities.  

In some cases, the organization selected to facilitate
NRP planning and implementation activities was already
an organized neighborhood association. Many of these
groups existed prior to NRP. In other cases, the
neighborhood did not have a neighborhood association
so concerned citizens set out to establish one or
combined with other surrounding neighborhoods to form
a group. There are 81 neighborhoods in Minneapolis.
There are 67 neighborhood organizations contracted to
conduct NRP activities.  

NRP staff provided substantial assistance (as
requested) to help new neighborhood associations
establish themselves as 501c3 corporations in the
State of Minnesota. Existing neighborhood associations
were also given substantial assistance from NRP staff
as requested. 

Once the City Council approved the participation
agreement, NRP entered into contract with the
neighborhood association providing funds to assist the
neighborhood to conduct planning activities.  The
funding helped pay for administrative staff and other
material expenses incurred during the development of
the plan.  By signing the contract, the neighborhood
association agreed to the terms and conditions of
funding.  One of those conditions was that the
neighborhood would maintain financial records
regarding expenditures and activities in the
organization in conjunction with NRP funded
activities.  Some neighborhoods had existing financial
management policies in place. Other neighborhoods did
not have these systems in place.  NRP staff provided
assistance to these groups in an effort to help them
establish financial management policies. NRP has
provided several training classes to teach
neighborhood association staff and volunteers how to
manage the organizations finances.  In addition, NRP
staff has worked and continues to work in a wide
variety of ways to help neighborhood associations
struggling with financial management issues.  

Each neighborhood association needs to assess the
capacity of the organization to manage finances.  The
Board can choose to hire staff people with financial
management skills and/or the services of a contract
bookkeeper or accountant to assist in this function. 
The group can also limit the amount of funds that flow
directly into the neighborhood association and choose
other agencies to provide services on behalf of the
neighborhood. 

The Minnesota State Auditors perform audits annually
for neighborhoods receiving in excess of $50,000. Any
financial management issues are addressed during these
audits. The neighborhood association submits a plan
for resolving the audit findings and NRP staff work
closely with the organization to address any issue
brought forward during an audit. If the audit findings
are not resolved satisfactorily, the NRP has cause to
terminate the funding agreement with that particular
organization.  All contracted agencies receiving NRP
funds in excess of $50,000 are required to have an
audit and submit the completed audit reports to the
appropriate contract manager.    

The bottom line here is that most of these
neighborhood associations are corporations in the
State of Minnesota.  While many people who are elected
to these neighborhood boards did not get involved to
become CEO's or financial officers, the reality is
that someone in the organization needs to occupy that
role if funds are going to run through the
neighborhood association.  Most neighborhoods
understand this and do a very good job managing the
organization financially.  Some just require more
help.  Occasionally, a group just implodes and
generally it is about more than financial management
issues.  

If you feel your neighborhood needs more help with
this function, contact the NRP neighborhood specialist
assigned to your neighborhood or Bob Miller. If you're
interesting in a training class, call Robert Thompson
at NRP.    

If you want to see how your neighborhood is spending
NRP funds go to www.nrp.org and click into your
neighborhood information.  You can gather information
regarding census data, funded strategies, contract
information, spreadsheets, etc.  There are links to
training resources on a wide variety of areas
including financial management materials.  This
website is a very helpful tool in gathering data about
the neighborhood. If you need assistance maneuvering
through the web-site, contact NRP at 673-5140.

Barb Lickness
Whittier


 

 


=====
"Never doubt that a small group of thoughtful, committed citizens can change the 
world.  Indeed,
it's the only thing that ever has." -- Margaret Mead

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