Sheridan council reviews proposal to streamline GPET grant application, debates audit oversight

City Clerk Ashley Foster told the Sheridan City Council at its July 28, 2025 study session that the city is proposing Resolution 21-25 to streamline the GPET application and reporting process and to remove duplicative application policy language.

The change would consolidate the current semiannual and annual reporting requirements into a single fiscal-year performance and financial report due in February, make one council presentation per recipient mandatory, and clarify that GPET funds are not guaranteed until the city budget is approved. "The current GPET resolution was originally adopted in 2020 and amended in 2023," Foster said, describing the proposal as an "administrative logistical cleanup" intended to simplify timelines and improve clarity and transparency for applicants and staff.

Foster showed council members a redesigned application form that highlights requested funds, separates revenues and expenses by color, and pulls budget figures into discrete fields to reduce errors. She also said the revised service agreement will require recipients to explain the public benefit that will be incorporated into their service agreement scopes of service. "Approving Resolution 21-25 would revoke the prior resolution and the adopted policy," Foster said.

Council members pressed staff on financial oversight. One council member asked, "But can or should we be asking for some kind of a CPA audit?" citing examples where nonprofits later disclosed additional funding sources. Foster said the city provides a template for the fiscal report and that finance staff indicated the template "suffices for the audit process." She added the city retains the right to request business records and to perform an audit if funds appear to be misused.

Other council members voiced concern that full audits are costly for small nonprofits and said requiring receipts or audits could impose a financial burden that would reduce program dollars. A former committee member who helped revise GPET earlier told the council the committee considered requiring receipts but declined because of the staff time and authority needed to review and validate receipts.

Foster and council members said recipient reports are publicly available on the city portal. She explained the move to a February performance report is intended to provide a more complete year-end snapshot for council consideration of next-year awards: the February timing gives council members the fiscal-year summary when reviewing applications for the following year.

Several council members suggested additional committee review before finalizing the resolution. Council members and staff agreed there is no immediate need to adopt the change that night; staff can refine paragraph 5 of the service agreement to give the city stronger authority to request records or audits and return to council. No formal motion or vote occurred during the session.

Next steps: staff will consider suggested edits to the service agreement language to increase oversight options, can provide paper copies of year-end reports to council on request, and may pause the resolution for committee review before returning to a future meeting for formal action.