HomeMy Public PortalAbout2310.4 - Business and Financial Services - Financial Reporting - Audit of Requirements for City Grants to Charitable and Community-Sponsored OrganizationsOffice of Business and Financial Services
Financial Reporting Section 2310.4
2310.4 SUBJECT: AUDIT REQUIREMENTS FOR CITY GRANTS TO
CHARITABLE AND COMMUNITY-SPONSORED
ORGANIZATIONS
:1 OBJECTIVE:
This policy establishes an audit requirement for organizations receiving funding
from the City of Orlando in the manner of a grant. This procedure will help
ensure that entities receiving City funds are being prudent and reasonable in the
manner in which the funds are expended, and requires receipt of audited financial
statements from certain entities receiving funding from the City.
:2 AUTHORITY:
This policy is amended by the City Council April 11, 2011.
:3 DIRECTION:
The Chief Financial Officer, as an appointed official, serves at the pleasure of
and receives direction from the Mayor.
:4 FUNCTIONS:
A. Introduction
City government, as an institution, has multiple partners including
citizens, taxpayers, businesses, visitors, employees, and other
governments. As a major institutional, economic, and service force in the
region, it is important that the City strengthen relationships with its
partners by adopting a clear and comprehensive set of policies and
procedures.
Furthermore the integrity of the City of Orlando is of utmost importance,
and adopting a set of policies is a key element to maintain this integrity.
The purpose of this policy is to provide financial reporting requirements
for Charitable and Community-Sponsored Organizations that receive
City funds in the form of a grant. Those controls will provide reasonable
assurance that grant funds are spent in a prudent manner and that an
appropriate review will be undertaken to ensure City funds are not put at
risk.
B. Definitions:
Audited Financial Statements – A complete set of financial reports upon
which an independent certified accountant has provided an opinion that
the financial statements present fairly the financial position of the
organization.
Office of Business and Financial Services
Financial Reporting Section 2310.4
Charitable and Community Sponsored Organization – Any non-profit
organization that has been granted tax-exempt status by the Internal
Revenue Service and is capable of providing a service for which the
granting of City funds is appropriate.
Unaudited Financial Statements – At a minimum, a balance sheet and
income statement that presents the financial position of an organization.
Additionally, Unaudited Financial Statements must be accompanied by a
notarized statement from the president and treasurer certifying they are
familiar with the operation of the organization and that the statements
provided accurately present the activities and financial condition of their
organization.
C. Requirement for Audited Financial Statements
1. Audited Financial Statements shall be required from Charitable
and Community Sponsored Organizations under the following
circumstances:
a. Organizations requesting a grant from the City in an
amount greater than $20,000 must submit Audited
Financial Statements for their most recently completed
fiscal year.
b. Organizations that receive a grant from the City greater
than $20,000 in a fiscal year must submit Audited
Financial Statements to the City covering the period(s)
in which the grant funds were used.
c. A department overseeing the granting of City funds, in
consultation with the Chief Financial Officer, may
require an organization receiving $20,000 or less in a
fiscal year to submit Audited Financial Statements for
the period in which the organization received funding
from the City.
2. City grant funds may not be used to pay for the audit of a
charitable or community sponsored organization unless it is
specifically included as an acceptable use of funds in the grant
agreement or is otherwise approved by City regulation.
3. The Chief Financial Officer shall review this policy on an annual
basis to determine the appropriate dollar threshold for requiring
Audited Financial Statements and shall submit revisions to this
policy when appropriate.
D. Requirement for Unaudited Financial Statements
Office of Business and Financial Services
Financial Reporting Section 2310.4
Unaudited Financial Statements shall be required from Charitable and
Community Sponsored Organizations that are not covered by the
provisions of Section 4C of this policy. Unaudited Financial Statements
must include a certified statement under oath by the president and
treasurer of the organization stating they are familiar with the operation
of the organization and that the financial statements accurately prese nt
the activities and financial condition of that organization.
E. Exceptions
Upon request of the department responsible for overseeing the granting
of City funds, the Chief Financial Officer may grant an exception to this
policy for good cause.
The City Council may also grant exceptions to this policy.
F. Responsibilities
1. Departments
Departments that oversee grants to charitable and community
sponsored organization are responsible for ensuring adherence to
this policy, including withholding funds if financial statements
are not provided in a timely manner. Granting departments shall
also consider the recommendation of the Chief Financial Officer
when making the determination to provide a grant to an
organization.
2. Chief Financial Officer
The Chief Financial Officer shall designate an appropriate
person in the Finance Department to receive and evaluate
financial statements from Charitable and Community Sponsored
Organizations. The Chief Financial Officer or his/her designee
shall ensure that organizations receiving grants possess an
adequate ability to account for City funds and that there is
nothing present in the financial statements they provide that
would indicate City funds would be put at risk by providing a
grant to that organization. The Chief Financial Officer or his/her
designee will notify the granting department if there is anything
in an organization’s financial statement that causes concern or
may put City funds at risk.
:5 FORMS:
Certification of Unaudited Financial Statements
:6 COMMITTEE RESPONSIBILITIES:
None.
Office of Business and Financial Services
Financial Reporting Section 2310.4
:7 REFERENCE:
(Replaces City of Orlando ordinance of 11-5-1973, S 1; Ordinance of 7-14-1980,
S 1; Ordinance of 2-7-1983, Doc#17524) approved by City Council 10-29-07,
Item A-3; amended April 11, 2011.
:8 EFFECTIVE DATE: April 11, 2011
Office of Business and Financial Services
Financial Reporting Section 2310.4
Certification of Unaudited Financial Statements
Organization Name
Reporting Period Ending
In accordance with City Policy and Procedure 2310.4, the undersigned do hereby certify that they
are personally knowledgeable of the activities of the organization listed above, and to the best of
their knowledge the financial statements attached accurately present the activities and financial
position of that organization.
President: Treasurer:
Signature Signature
Printed Name Printed Name
Date Date
Sworn to and subscribed before me this
____ day of ________________, 20__, by
________________________, personally
known to me or has produced
_______________ as identification.
Signature of Notary
Commission Expires:
Sworn to and subscribed before me this
____ day of ________________, 20__, by
________________________, personally
known to me or has produced
_______________ as identification.
Signature of Notary
Commission Expires