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CITY OF FERNLEY AGENDA REPORT DATE PREPARED: 12/11/09 DATE OF MEETING: 12/16/09 ITEM#: 9 SUBJECT: UPDATE ON STATUS OF CITY OF FERNLEY GRANTS. RECOMMENTATION: No action at this time as this report is informational in nature for future presentations and actions to the Mayor and Council. SUMMARY: Grants received by the City are used to fund critical programs, including those related to public safety, human services, and capital infrastructure. Maximization and effective use of grants enable general fund dollars to be spread farther, on other local priorities. The City receives grants primarily from other units of government such as State and federal agencies; though awards have also been made from private foundations. Grants may be competitive or non-competitive. For competitive grants, the City must compete with other municipalities or nonprofit organizations through a formal proposal process and awards are made based a proposal’s merit as evaluated by the grantor. Non-competitive grants include Formula, or Entitlement grants, which are awarded based on one or more criteria of local need and generally allow for some discretion in how the funds are used; and Specified grants, which are earmarked for a specific project, typically a capital improvement or public infrastructure. In all cases, grants require a formal application to the grantor and funds must be used for a stated purpose. Generally, the results of grant-funded programs must be periodically reported to the grantor. Reflected in the spreadsheet is the compilation of all active city grants (20), amounts awarded, city match requirement, administration funds to be recaptured from the grant (if applicable), and the grant Project Manager(s). As demonstrated, the City receives grants for varying amounts and time periods. A grant award may be a few thousand dollars for a single event, or may total millions of dollars over multiple years. In summary, City staff is actively processing $13,540,334.50 in federal, state and local grant funds; of this the City has committed $364,781.00 in cash match or approximately 2% of total funds received and is expected to recapture approximately $427,965.00 in administration costs through the life of the listed grants. While no one could predict that current economic downturn, it has become more evident than ever that grant funding maximizes the City’s limited general funds and needs to be a focused driven process. In an effort to improve the city’s grant seeking and administration processes, the City Manager has developed grant teams and dedicated staff to the administration of grant funding for the city. The Grant Team, comprised of the City Manager, City Lobbyist, Finance Director, Department Directors and the Grant Administrator are committed to providing sound grant management practices, identifying funding sources, and developing quality partnerships with federal, state, and local agencies, to support programs and services that will improve the quality of life for all Fernley residents. While individual City ---PAGE BREAK--- Departments take ownership of projects and remain responsible for implementing grant funded programs and services; the initial purpose of dedicating staff to grants administration was to establish a grant tracking mechanism and to establish a system of checks and balances between the City Departments implementing grant programs, the Finance Department and agency awarding the grant. Thus far into the process, city staff have developed an initial accounting of and tracking spreadsheet of all of the city grants, developed an internal grant application process for departments to follow, and established grant financial set up procedures. As this process and program is in its infancy, other grant administrative functions and priorities have been identified and under development by staff and the City Manager. In assessing the City’s processes, we are comparing the City’s procedures to leading grant practices utilized by local governments. An effective grants program and system has the following elements: 1. A centralized oversight to provide guidance and act as a resource for grant- seeking departments; 2. Regular reporting of timely, complete and accurate grant information to decision makers; 3. Good internal controls over departmental grant identification, analysis and approval and development of departmental policies & procedures; 4. Strategic planning and budgeting to ensure grants are aligned with departmental goals, objectives and funding; 5. Efficient processes to apply for and accept grant awards; 6. Regular evaluation of grant-funded programs to support management decisions on whether to continue the programs, either through subsequent grants or City funds; 7. Procedures to ensure compliance with grantor requirements; and 8. Monitoring to ensure program outcomes are achieved, grant revenues are maximized, and expenditures reflect actual costs that are allowable under the terms of the grant, or are appropriately charged within established budgets. As the economic downturn continues, further funding sources will need to be identified and secured for the City’s future projects. Implementing a comprehensive and strategy focused grant program provides policymakers and department management with sufficient information to ensure grant funds are maximized and grant-funded programs meet the City’s priorities. FISCAL IMPACT: None at this time. PREPARED BY: Leslieann Hayden, Grants Administrator APPROVED BY: Greg Evangelatos, City Manager ATTACHMENTS: Grant Status Spreadsheet