Committee denies vendor waiver after audit finds nonprofit filings missing; report due soon

At the May 15 Ways and Means meeting, lawmakers discussed a request to waive a Form 9990 compliance requirement for a nonprofit vendor that provides emergency meals. Committee members raised concerns that the vendor had not filed the required Form 9990 for 2023 and had not produced recent audits.

Staff said the vendor provides emergency meals to people in county emergency housing and had a corrective plan to get into compliance quickly. The deputy controller told the committee audit test work had been completed and that a report would be released in the next few weeks; staff said any new contract or payment beyond services already rendered would require a formal waiver or vendor compliance.

After discussion about whether the county should allow continued payment while the vendor corrected deficiencies, the resolution to waive strict enforcement failed in committee on the initial vote (the chair recorded the vote as defeated). Committee members later adjusted votes so the item could move forward in some form; staff recorded the ultimate committee action as advancing the resolution with one recusal and one recorded dissent and asked staff to provide more outreach/notification to vendors about the new compliance requirement.

Outcome: Committee requested vendor notification and an audit report; staff said the vendor committed to cure compliance issues by the following month and the county audit team anticipated a report release in the coming weeks.