ELKINS — The Elkins City Council approved a new policy for how the City administers contributions to outside partner organizations, which was recommended by the State Auditor.

During a recent City Council meeting, the nine present council members voted in favor of Resolution 1883, which authorizes “adopting a new policy for the administration of contributions to outside and partner organizations.” Third Ward Council member Christopher Lowther was absent from the meeting.

Before the council voted, Elkins City Clerk Sutton Stokes explained the City had been thinking about changing the previous policy when City Treasurer Tracy Judy received word from West Virginia State Auditor Mark Hunt that it would be “strongly recommended” that Elkins “further tighten up the accounting” for money given to partner organizations.

“The essence of the change is that the contributions are, for the most part, going to happen as reimbursements for documented expenses that fall into approved categories,” Stokes told the council. “The categories remain pretty broad… It just gives the City some more bright lines to make sure the process stays within.”

Fifth Ward Council member Cody Thompson said he thought the new policy was “good in practice” due to the Council’s role in overseeing the taxpayers’ money.

“I think it’s good in practice, too, in general, as stewards of the public’s money, to ensure the public knows exactly where the money is going,” Thompson said. “It’s not that we’re not helping out, but they can see where the money is going. What it was spent on, and anything to make us better in the Auditor’s eyes I think is a good idea.”

According to a copy of the new policy from the Council’s meeting agenda, it applies to all nonprofit organizations that receive funding from the City, “whether through direct contributions, grants or other approved programs.”

“Organizations must be legally incorporated nonprofits to be eligible for funding or reimbursement,” the new policy states. “When considering applications for funds, the City will generally prioritize requests providing low- or no-cost events, programs or services to the public.”

Under the new policy, reimbursements will only be made for expenses that are documented and fall within one of six allowed categories. Documentation for reimbursements must include an invoice, receipt or equivalent proof of payment, and all requests must be submitted on “the approved form along with supporting materials.”

Reimbursements from the City to organizations will be issued by checks made payable to a business bank account in the name of the organization, the new policy states.

According to the new policy, for groups to be eligible for reimbursement, expenditures will have to fall within one of the following categories:

•Program or Project Expenses: Costs directly related to carrying out the specific program, project, or event for which city funds were awarded. Examples include supplies, materials, equipment rental, contracted services.

•Program Public Outreach and Communication: Expenses for promoting, publicizing, or otherwise engaging the public in the funded activity. Examples include printing, advertising, website updates, event signage.

•Personnel Costs (Direct Program Support Only): Compensation for employees or contractors whose work is directly tied to the funded activity. Documentation must include timesheets or a description of duties performed.

•Operational Costs (Directly Attributable): Basic operating expenses necessary for delivery of the funded activity. Examples include utilities, facility rental, insurance for a specific event or program. General overhead or unrelated administrative costs are not reimbursable.

•Travel and Training: Travel, lodging, or registration costs that are essential to carrying out the funded activity. These must be directly related to the supported project or program.

•Capital or Equipment Purchases (Pre-Approved Only): Equipment or minor capital items purchased specifically for the funded purpose. Items must remain the property of the organization and continue to serve a community benefit.

The new policy also lists what does not count as a reimbursable expense. According to the policy, the list is “not exclusive” as expenses that do not fall within an allowed category will be referred to the City Council for consideration. The following expenses will not eligible for reimbursement by the City “under any circumstances”:

•General administrative overhead or indirect costs

•Alcohol, gifts or entertainment

•Fundraising, lobbying or political activities

•Late fees, penalties or unrelated debts

Organizations will be expected to maintain accurate financial records and submit documentation of reimbursed expenditures to the City. According to the new policy, a list of reimbursed expenditures will be provided to the Council monthly “for review and record keeping purposes.” 

Failure to comply with the requirements of the new policy may result in “denial of reimbursement, suspension of funding or ineligibility for future funding opportunities from the City of Elkins,” the policy states.

The next Elkins City Council meeting will be on Dec. 18 at 7 p.m. at the Phil Gainer Community Center.