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Home My WebLink AboutAgenda - 08-16-2005-5rORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 16, 2005 Action Agenda Item No. 5-r SUBJECT Joint Orange Chatham Community Action Agency (JOCCA) - FY05-06 County Contribution DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Staff Report Budget Program Evaluation Report INFORMATION CONTACT: Gwen Harvey, Assistant County Manager, ext 2300 Ken Chavious, Finance Director, ext 2453 Durham 688-7331 Mebane 336-227-2031 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 PURPOSE: To provide information regarding the fiscal soundness of JOCCA and its ability to meet performance expectations under a service agreement with the County in FY05-O6. BACKGROUND: The FY05-06 approved operating budget included an appropriation of $100,000 for JOCCA as part of County Human Services Non-Departmentals, JOCCA is a cooperative effort between Orange and Chatham County that provides services to very low- wealth families and individuals with the goal of improving their quality of life, including: nutrition, job training and employment, energy conservation/weatherization, and other programs that enhance self-sufficiency and socialization for the economically disadvantaged and elderly. Questions arose after the budget adoption about the ability of JOCCA to meet its contractual obligations to the County, principally a decision by the Chatham County Commission to withhold its own contribution to the agency, Attached is a copy of the staff report that reviews the financial operation of JOGCA including an examination of previous years audits. Also attached is the most recent report from the Budget office on JOCCA's contract performance. Orange County findings indicate that JOCCA is prepared to fulfill the terms and conditions of the proposed FY05-05 performance agreement, and staff recommends that the BOCC review the attached reports and authorize the formal execution of the agreement and release of annual funding in the amount of $100,000 as prescribed therein. FINANCIAL IMPACT: Funding in the amount of $100,000 was appropriated in the current budget to support a financial contribution to .I000A for services to be performed. RECOMMENDATION(S): The Manager recommends that the Board receive the staff reports and authorize execution of the performance agreement with JOCCA. yam o. `~ ~,Ee ~ ~~ ° :'~Jh. .,, ~., Orange County Finance Department 208 South Cameron Street Past Office Box 8181 Hillsborough, NC 27278 MEMORANDUM TO: FROM: DATE: SUBJECT: John Link, County Manager Ken Chavious, Finance Director Gwen Harvey, Assistant County Manager July 12, 2005 919 227-2031 Fax: 919 644-3324 3 Tel: 919 732-8181 919 968-4501 919 688-7331 Joint Orange Chatham Community Action (.IOCCA) Follow up Actions In response to the concerns raised about JOCCA ,subsequent to the adoption of the County's btadget which included $100,000 for this non profit agency, Gwen Harvey and I met with Sandra Sanchez, .JOCCA Director, to discuss the issues related to the withdrawal of funding far the 2005-2006 fiscal year by Chatham County,, and whether there were grounds for Orange County concern, Prior to meeting with Ms, Sanchez, Gwen and I spoke with Chatham County management and were informed that the reasons for not funding .IOCCA were related to the organization's financial stability and overall fiscal management, According to Ms, Sanchez, the decision by Chatham County to suspend 2005-2006 funding for JOCCA was a surprise to the staff as well as the JOCCA board. Ms. Sanchez stated that it was her understanding that this decision was made at the Chatham County staff level and never reached the County Commissioners for a decision, She also stated that the JOCCA board will request to meet with the Chatham Commissioners to discuss the issues surrounding this decision in the very near future. The amount of funding in question is $22,238. I have reviewed the audited financial statements for JOCCA for the past three fiscal years and the following information provides a synopsis of said review, • At the end of the 2001--2002 fiscal year JOCCA had an overall operating deficit of $38,162. At the end of the 2003-2004 fiscal year that deficit had been reduced to $8,414, • Over the last three year period reviewed JOCCA has received an 4 "unqualified" (GOOD) opinion of their financial statements. This means that the auditors detected no sign of material weakness in their financial operations. • The major source of funding for JOCCA is provided by government grants of approximately $1.5 million, Local funding, including the Chatham County contribution, for 2004-2005 was approximately $149,000, • Government grants of the magnitude received by JOCCA are subject to the "single audit" provisions, identical to the requirements of the County's grant funds, The audit requirements are detailed and relate to bath financial and grant compliance issues. • Far the three years reviewed there were no audit findings or exceptions, questioned costs or reportable conditions related to ,l000A's audit or single audit, Aside from the deficit, JOCCA's financial operations appear to be sound, After reviewing the previous audits, it is difficult to determine the reasoning behind the decision made by Chatham County to suspend funding, County staff has also confirmed that the towns of Chapel Hill, Hillsborough, and Carrbaro have each approved continued funding for JOCCA in their new budgets. Ms. Sanchez feels that Chatham County staff made the decision based on interim financial statements that fail to include all federal grant funding to be received by JOCCA. According to Ms, Sanchez, .IOCGA has plans to eliminate the deficit totally in 2005-2006 by making internal administrative adjustments. Elimination of the deficit will be mare challenging without funding from Chatham County, As mentioned above the JOCCA board will be scheduling an audience with the Chatham Commissioners to discuss the funding issues, As pertains to the County appropriation of $100,000 -currently in reserve pending acceptance of this report -County staff finds no financial cause to withhold funding to JOCCA , We recommend that their Fiscal Year 05-06 performance agreement with normal monitoring provisions be executed, and that quarterly payments be allowed to begin, County staff will remain attentive to JOCCA's financial situation and anticipate receipt of their Fiscal Year 05 audit due by the end of the calendar year, Please let us know if you have questions. S Outside ~~es~cies f'repared~t~: brav~9e Gount~ $r~d~et o f fice N'ove~ber,ZOO~ NortG~ Garotivi.a. joint Orange Chatham Community Action (JOCCA) (~/ 70CCA provides services to very low-income families and individuals with the goal of improving their quality of every day Iife..70CCA offers the following services (1) nutrition and aging; (2) self-sufficiency services; (3) job training and employment; (4) community based assistance and teen court for youth offenders; and (S) energy conservation/weatherization and heating assistance. Major Services J`~ Nutrition and Aoing -meals served for seniors 3-5 days per week at six countywide sites. Community Services Block Grant Prooram -provides self-sufficiency and nutrition services and assistance to qualifying persons. Workforce Investment Act programs -adult and youth programs that focus on the training needs of the business community and affect the placement of eligible citizens in jobs with reasonable stability and growth potential. ~''~ Juvenile Justice Programs -program places eligible youth in ,jobs; restitution accounts are set up and paid to victims as directed by court; community service projects are identified and completed; workshops are provided covering such topics as substance abuse and conflict resolution. ~'' Teen Court -alternative disposition for undisciplined and delinquent teens who are first- time offenders with non-violent misdemeanors. ~' Weatherization Assistance -grants to low-income residents for home weatherization and heating system improvements. Measures FY 01-02 FY 02-03 FY 03-04 FY 04-OS Actual Actual Estimated Pro'ected # Meals served to seniors 31,263 32,000 29,673 33,360 # People served through CSBG 71 60 69 70 ro ram # Served through job training and lacement services 366 250 450 500 # Served through Juvenile .Justice Pro rams 25 N/A N/A N/A # Participants in Teen Court 80 70 70 N/A # Weatherization assistance units 152 58 71 65 Agency Budget FY 01-02 Actual FY 02-03 Actual FY 03°04 Estimated FY 04-OS Pro'ected Total Bud et $1 893 722 1 545 973 $1 782 116 1 305 672 Oran a Count Contribution 100 000 100 000 100 000 100 000 Orange County's contribution supports general operations of the Joint Orange Chatham Community Action. This agency's primary expenditure categories are staff and operations. 26