Committee recommends opening nonprofit bank account and discussed budget and audit requirements

The Skagway Municipality Finance Committee voted to forward to the full board a recommendation to open a bank account for the nonprofit affiliated with the municipality. Alex Waddell said the nonprofit has just under $5,000 in donations ready for deposit and recommended establishing an account; the committee approved forwarding that recommendation.

The motion to forward the bank-account recommendation to the board was made by Jan Lynn Baker and seconded by Thomas; a roll-call vote recorded at least two affirmative votes and the committee approved the referral. A committee member noted they had already discussed the process with the borough manager.

Committee members also discussed the nonprofit’s budget and governance needs, including planning a work session to design the nonprofit budgeting process, choosing an accountant, and preparing the nonprofit’s annual IRS Form 990. Waddell reminded the committee that an independent audit will be required and that the timing and extent of audits will change as the nonprofit’s revenues grow: “We will have to report annually on a 990 form to the IRS. They’ll have to be an independent audit that’s done,” he said. Waddell added that in the short term, because the nonprofit has limited funds, extensive audit requirements may differ from long-term practice.

Next steps: the committee forwarded the recommendation to the full board for approval of the bank account and planned a future work session to outline the nonprofit budget process and expectations for annual reporting and audits.