Title
Financial Partners Policy Update
Action
Action:
Adopt revisions to the Financial Partners Policy consistent with the Budget, Governance and Intergovernmental Relations Committee’s recommendation.
Body
Committee Chair:
Dimple Ajmera, Budget, Governance and Intergovernmental Relations
Staff Resource(s):
Marie Harris, Strategy and Budget
Cherie Smith, Strategy and Budget
Explanation
§ As part of the annual budget development process, the Strategy and Budget Department conducts an application process for funding through the city’s financial partners program.
§ City Council adopted the current Financial Partners Policy in October 2024.
§ The Fiscal Year (FY) 2026 Budget Development cycle included the first Financial Partners application process under the new policy. Following the adoption of the FY 2026 Budget, the Budget, Governance and Intergovernmental Relations (BGIR) Committee conducted a review of the implementation and outcomes of the policy.
Current Policy
§ The current Financial Partners Policy requires partner organizations with gross receipts of $100,000 or more to submit a financial audit completed by a Certified Public Accountant (CPA). Partner organizations with gross receipts less than $100,000 are required to submit two-year comparative financial statements including a statement of cash flows, a profit and loss statement, and a balance sheet.
§ Upon receiving feedback from BGIR Committee members, non-profit agencies, and outside funders, it was determined that the policy’s financial audit requirements had a disparate impact on smaller non-profit organizations due to the costs associated with these reviews.
Proposed Changes
§ The BGIR Committee recommends amending the financial reporting portion of the policy in order to accommodate the needs of smaller partner organizations.
§ Partner organizations will be required to provide financial statements in accordance with the following guidelines:
- Organizations with gross receipts greater than $500,000 require a full financial audit completed by a CPA;
- Organizations with gross receipts of $100,000 up to $500,000 require an independent financial review completed by a CPA or an accounting professional; and
- Organizations with gross receipts less than $100,000 require two-year comparative financial statements including a statement of cash flows, profit and loss statement, and a balance sheet.
Committee Discussions
§ During the budget development process for FY 2025, a referral was made to the BGIR Committee to review the criteria of funding for Financial Partners.
§ Based on the BGIR Committee’s recommendation, Council Adopted the Financial Partners Policy in October 2024.
§ At the August 4, 2025, BGIR Committee meeting, the committee reviewed the implementation of the policy during FY 2026 Budget Development cycle.
§ At the September 3, 2024, BGIR Committee meeting, the committee voted to recommend the proposed Financial Partners Policy revision for consideration by full Council. (Council members Ajmera, Mitchell, Brown, and Mayfield voted in favor; Council member Peacock was absent for the vote).
Attachments
Attachment(s)
Proposed Financial Partners Policy Revision