Seward Neighborhood Group (SNG)
Financial Committee
SNG Financial Audit: Mike Wilson, the CPA performing SNG’s 2006 financial audit, delivered a progress report to the board. Wilson said he was asked by the Neighborhood Revitalization Program (NRP) to extend the audit’s scope to include housing advances.
The accounting system in general, he said, couldn’t be relied upon for accurate information. “I couldn’t get comfortable with how the numbers are being put together,” he said. Wilson said the complicated structure of the organization, that included work being performed by outside vendors coupled with poor record-keeping, led him to question the accuracy of the organization’s financial records.
Later, Wilson talked about the issue of missing housing advance money. He said he is still looking for roughly $110,000 of NRP funds — in the form of two checks — that were never deposited in the correct account. Charlie Hoffman asked if foul play was suspected at this point. “That’s what we’re looking for right now,” Wilson replied, saying he was still looking into where the money actually went.
Wilson said once he knows more about the two checks totaling $110,000, he’ll probably be finished with the audit. “That’s the final piece,” he said. He and SNG Treasurer Diann Anders are seeking information from SNG’s bank, in an attempt to find where the money was deposited. “If it shows up where we think it is, we’ll be fine,” Anders said.
The “SNG fund” was also mentioned. Wilson said the neighborhood organization had a “catch-all” fund for expenses that didn’t have a specific revenue source. When there weren’t funding sources that could meet expenses, “the idea was to go to the bank,” he said referring to why the line of credit that was taken out in 2003 or 2004 has now grown to $35,000.
Wilson also said that there was a possibility that SNG’s liabilities were slightly lower than they look on paper. Early on, he said, NRP was not clear about how default-housing dollars that were recaptured by neighborhood organizations had to be spent. He said the organization should clarify with NRP at what point it became clear that recaptured housing money could not be used for general operating expenses.
The use of temporarily restricted dollars is one area in which the organization could stand to improve, Wilson said. He said SNG should identify both direct and indirect expenses to donors who have restrictions on their donations, so as to pay for operating expenses appropriately.
Timesheets were also recommended by Wilson. He said making employees fill out timecards in the future would assist with accurate record-keeping. (SNG currently has no employees.)
On a separate matter, Kevin Brown questioned that a such a large percentage of last year’s expenses had been used for management and fundraising. Wilson agreed, saying that according to “good” accounting standards, a non-profit should not spend more than 30 percent of its resources on management and fundraising together.
Wilson acknowledged that it appeared in several instances that there were “management overrides” that led to there being two different sets of records produced on certain things. “It was as if [when] the numbers didn’t satisfy … they were changed,” Wilson said, giving the Seward Arts Festival as one example where the information presented to the board didn’t match other records.
Ross Gabrick asked Wilson if he would be willing to take questions about the audit at next month’s meeting, too. Wilson said he would, and Gabrick promised to create a list in advance so that he could send it out before the meeting. Gabrick said if the questions are sent out, Wilson might not even need to be present for the meeting if he sends his responses.
Wilson said his 2006 audit will be finalized in March. He will likely start the 2007 audit in April.
Financial policy change: Anders presented the organization’s proposed 2008 budget. She said she is “hoping against hope” that SNG gets a two-year grant from the McKnight Foundation, $20,000 of which would be for Franklin Avenue planning and the other $30,000 for general operating expenses.
Anders said she and Robin Westcott, an independent CPA who is now a member of the finance committee, plan to switch SNG to a new kind of accounting software. Anders said the switch was made to Quickbooks in order to return to an accrual system of accounting and eliminate the need to transfer the data to Excel when making viewable statements for the board. With this program, Anders said, it will be very easy to tell if balance sheets match what’s given to the board. “It’s not like there’s this extra step where things can be massaged and disappear,” she said.
Westcott, who was not in attendance, was praised for her service to the organization. Anders called her a tremendous asset and added, “she can translate auditor-ese into English!” Quickbooks could be up and running as early as next month, Anders said, but if not then, hopefully by April.
As a final matter of business, Anders mentioned that member donations for January alone were $1,432.63 (The overall goal for the year is $5,000.) “It’s a statement that we’re getting that much in a time when people might not have confidence [in the organization],” Gabrick said.
Next month financials will be sent out by e-mail ahead of the board meeting, Anders said. Several board members commended Anders on all of her hard work for the organization.
Work study student: A student in a work study program at Augsburg College is now helping at SNG Tuesday and Thursday mornings for the rest of the semester. Former board president Jean Johnstad has agreed to help with some of the student’s training.
News from City Hall: Ward 2 Council Member Cam Gordon presented the latest news from City Hall. Gordon briefly discussed NRP accountability and suggested those at the meeting should share their thoughts about how the program could be improved. He mentioned his hope to convince his colleagues that a Phase Three NRP program was worthy of support.
Gordon later mentioned the Feb. 27 Central Corridor decision, adding “there’s still a chance [the positioning if the line] will move north,” if the University is able to prove such a route would be more cost-effective. Gordon said he’s somewhat interested in the idea of a transit mall on Washington Avenue, but added, “ I’m just worried about extra traffic everywhere else,” if vehicular traffic is diverted.
Community Committees
Environment: Hal Johnson, who attended the meeting, said the eco energy project and forming a strategy on generating opposition to the burner was the main topic of conversation. Secondarily, the environment committee discussed how the issue of grant applications should be addressed.
Referring to grant writing, Hoffman said the “initial heavy lifting” is going to have to be done on a volunteer basis.
Crime and Safety: Gabrick said the March Crime and Safety meeting would be held at Seward Towers West, a change in venue intended to be more inclusive of the entire neighborhood.
Seward Community Arts Network (SCAN): Erik Riese has agreed to jumpstart this dormant committee of volunteer artists in the neighborhood that used to run the Seward Arts Festival. Reese was not present at the meeting.
Franklin Planning: Hoffman and Waibel are working on “planning a process.” Hoffman said the planning is still in the early stages, so there’s really not a whole lot to say.
Office Space Report: Hoffman said he is still exploring options for the reuse of the other half of the office space. He has met with representatives from Buck Bros. and the Sierra Club and said he expects to know more “within a week or so.” Hoffman concluded, saying that he thinks that by March one of these two organizations would be renting from SNG, at least on a temporary basis.
Seward Redesign is working out a construction schedule at its new building, so the organization should be able to let SNG know when it plans to vacate its half of the office space. Even if they aren’t out of the space before a new tenant is found, Anders said there should be enough space in the office for everyone to fit temporarily.
Hoffman said he was working to draft a letter to Redesign asking for a specific timeframe of how long they intend to stay in the office space with SNG before the new Redesign space is finished. He said the executive committee will review the letter before it’s sent.
Waibel mentioned that there should be some discussion about how to maintain a relationship with Redesign after the move. Others agreed. Anders said Redesign has mentioned the possibility of a joint SNG-Redesign board meeting in the past. She said perhaps it could be arranged after the move.
Traditional SNG activities: Johnson agreed to become the final volunteer for the garage sale. Anders said she has already drawn up a work plan for the sale and was anxious to set a date because she is already getting inquiries about the event. Johnson said, among other things, that he would assist in scheduling the date of the sale.
On the subject of the Seward Youth Peace Garden program, Anders said she had “sad news.” The McKnight funding for the Peace Garden was actually a one-year grant, not a three-year grant as was previously thought. Anders said the grant had been “sort of hijacked” by SNAPPZ last year. “There’s no funding at the moment for the Peace Garden,” Anders said. Anna Costello, who has led the program in the past, is still looking to keep it alive this year in hopes that she can apply for a steadier source of funding next year. There will be a meeting to discuss the fate of the Peace Garden on Wednesday at 5 p.m. at the SNG office.
Gabrick said that although tonight’s discussion of SNG’s traditional activities was brief, at some point in the near future the organization must assess what the organization can and should pursue.
Next meeting: Wednesday, March 26, 7–9 p.m.
Seward Towers East, located at the intersection of East Franklin and 30th avenues. Enter on the north side of the building. Inside the main doors, take the door to the left that reads “Advantage Center.” Walk along the hallway and within the office at the end; take the stairs to the second floor.
Contact:
Seward Neighborhood Group
2323 Franklin Ave. E
Minneapolis, MN 55406
Phone: 612-338-6205
last revised: March 2, 2008