Organizations using borough funds may also have to show proof of liability insurance.
After an ordinance was introduced at the November Council meeting, certain rules and regulations could be established for nonprofits within Berlin that either receive borough funds or utilize borough property.
If the ordinance is adopted at the Dec. 14 Council meeting, such nonprofit organizations would be required to supply their annual audit or past two years of financial information, including bank records, to the borough’s chief financial officer by the end of January of each calendar year.
“If you want to receive money from the borough, we have the right to review your financial records,” Mayor Jim Bilella said a few weeks after the ordinance was adopted. “It’s very important for us, as elected officials, to say we’re spending your tax dollars wisely.”
The reports would most likely be submitted to the borough’s chief financial officer on an annual basis.
Currently, up to six nonprofits receive some form of borough funding through grants each year, according to Bilella. One organization in particular receives up to $25,000 of annual funding, according to Solicitor Howard Long.
Organizations have ignored the borough’s requests for this data in the past, Long said at the November meeting.
However, Bilella and Councilman Rick Miller say there is no specific reason why the ordinance is being implemented now. Rather, the ordinance is simply about spending taxpayers’ money appropriately, as Council maintains its ongoing effort to disperse borough funds based on need.
Nonprofits, particularly those using borough fields, would also be required to present proof of liability insurance, holding the borough harmless by its risk manager Edgewood Associates, Inc., since often, if an accident occurs, lawsuits can be filed against entities who own the land.
Any nonprofits must also keep an up-to-date business entity status report with the state to show the organization is in good standing.
If the ordinance is adopted in December, Miller, along with chief finance officer Michael T. Kwasizur, plan to draft a letter to nonprofits outlining the protocols of the financial requests.
“This is part of a bigger effort to put some policies and procedures in place,” Miller said. “We want to increase transparency. We want to make sure we’re being financially responsible.”
