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County attorney warns commissioners stricter documentation needed as state audits tighten rules for nonprofit grants
Summary
Hardee County's county attorney told commissioners the county must document how grants to nonprofits serve a public purpose after increased state audits and a pending House bill could limit local funding. Commissioners were advised to require applicant documentation and prepare for Feb. 5 rankings.
Hardee County's county attorney told the Board of County Commissioners that recent state scrutiny means the county must be stricter about proving how donations to nonprofits serve a valid public purpose.
"Florida law requires that any expenditure of funds by the board serve a valid public purpose," the county attorney said, summarizing a policy the board adopted last September. She told commissioners that auditors and a Department of Justice-related initiative are now verifying whether county funds actually benefitted county residents and were spent for the purposes stated.
The attorney said auditors look at the organization's type, how it was formed, what the donation will be used for and whether a majority of beneficiaries are Hardee County residents. She warned that "if you're found to be noncompliant" the state can withhold funding: "that would be a pretty significant impact." She also said a bill before the Florida House (currently at first reading) could, as drafted, bar counties from giving public funds to nonprofit entities, though the bill contains drafting problems and may be revised to include statutory exemptions.
Commissioners asked what the county can do to protect itself and whether the new application process satisfies state expectations. The attorney said the board's policy formalizes the documentation and vetting process: staff will collect applications, financials and program details so commissioners can determine public purpose at the time of a funding vote.
County staff outlined the next steps: applicants will present today, commissioners will use a ranking sheet at the Feb. 5 meeting to score proposals and the board will vote on funding amounts individually. The county currently has a $20,000 charitable-contribution line item; the board may adopt a budget amendment at a later meeting if it approves larger totals.
The county attorney urged commissioners to require organizations to provide beneficiary documentation and reporting so auditors can verify the use of funds. "The only means for us to be able to provide that verification is to require all these organizations to provide the information," she said.
The board directed staff to return with the formal resolution and grant-agreement language that will specify allowable uses and reporting requirements for any approved awards, and to notify applicants about the Feb. 5 ranking session.
