Vicky said: Would someone from the NRP translate Whitehurst's statement above, and explain why the NRP hasn't tightened up its financial controls yet?
I say: Vicky, you are comparing apples to oranges with Dania Hall and the situation in Seward. The MCDA manages all development projects on behalf of the NRP. They are our fiscal agent and the recieving authority through which the NRP funds flow. They do not flow directly through the NRP. The funds for Dania Hall certainly were contracted. That is the only way funds can be released. The issue with Dania Hall was that the contractor evidently did not have liability insurance to cover the loss. The MCDA contracts clearly state that the contractor is required to provide a certificate of insurance to the MCDA prior to the release of funds. I am not sure what fell through the cracks on this one. Sewards issue is different. Seward is evidently running low or out of funds to sustain the corporation until they can access Phase II NRP funds or until they receive funds from a foundation. NRP is not responsible to ensure that any neighborhood association in the city remains solvent. We are simply one funder. NRP encourages neighborhoods to seek out alternative sources of funding to sustain their operations. Some neighborhoods are better at heeding this message than others. We also strongly encourage neighborhood associations to adopt fiscal management policies that help them stay on top of their finances so they can plan for or avert problems during the lean times. NRP has offered and continues to offer several training classes to train board members how to manage their operations and financial affairs. We encourage neighborhoods to prepare budgets and produce cash flow projections so they know where they are at financially at any time. This information should help them determine whether they need to reduce staff and/or reduce expenses. The projections should also help them determine when or if it is appropriate to hire new staff. Seward, Powderhorn Park and Whittier have all completed Phase II NRP plans and have been "circling the airport" waiting to land. While the city council has decided to support Phase II of NRP, the funds are not ready to be released and plans will continue to line up waiting for council approval until all the details of the financial agreement are completed. So at this point, none of these organizations should be spending money thinking that Phase II NRP funds will cover the expenses. Whittier reduced it's staff compliment by two full time positions some time back because they knew they did not have the funds to sustain the organization at the size it was at. I believe Powderhorn has also reduced it's staff compliment. Both these neighborhoods managed to budget their remaining Phase I NRP funds and/or foundation grants in a way that is keeping them solvent. Since Seward is not one of my assigned neighborhoods, I don't know how they are managing their financial picture. I know I was curious when I saw them advertise to hire a new executive director recently when they had very little Phase I NRP funds left. I just figured they must have had funds from another source to sustain them. While I can't speak for Jack, I think he was saying that Seward shouldn't be attempting to sustain their organization with funds that aren't there yet. The real question for you Vicky is: Would you hold your bank responsible and accuse them of financial mismanagement if you spent all the funds in your checking account because you anticipated a check from you grandmother and spent the money before it came? I think not. 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 __________________________________ Do you Yahoo!? Yahoo! SiteBuilder - Free, easy-to-use web site design software http://sitebuilder.yahoo.com REMINDERS: 1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
