AGENDA DATE: 7/16/2025
TITLE:
Title
Review of Proposed Change to the Outside Agency Funding Process
BODY
SUBJECT/PROPOSAL/REQUEST: Receive feedback on proposed modification to community agency processes for the Fiscal Year (FY) 27 annual budget process.
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Richardson, Dimock, Sumner, Bowman, Malcolm
PRESENTER (S): Andy Bowman, Kaki Dimock
LEGAL REVIEW: Not Required
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: As part of the annual budget process, Albemarle County provides eligible community agencies the opportunity to apply for funding. At the conclusion of the budget process, in a continuous improvement effort, staff evaluates the application and review process and proposes modifications for Board of Supervisors approval.
At its July 19, 2023 meeting, the Board approved a framework for the Community Non-Profit Capital and Cultural, Arts, and Festivals process that was implemented in the FY 25 and FY 26 budgets.
At its July 17, 2024 meeting, the Board made further changes to the Human Services Funding Process that were implemented in FY 26 budget. These improvements were:
- changing the prior process name to ‘Albemarle County Human Services Funding Process’ for clarity
- improving descriptions on the County website,
- reviewing which agencies are included in the contractual obligations pool, and
- applying a prioritization rubric to the recommendations process based on whether the agency contributes to a basic needs safety net or serves a vulnerable population.
- applicants were asked to submit an abbreviated application reporting on significant changes in programming, progress, number of county community members served in the current year and anticipated in the funding year.
The FY 26 Recommended Budget was prepared using these frameworks, at which point the Board reviewed the funding recommendations prior to the adoption of the annual budget. Based on prior discussions with the Board, feedback from community non-profits, and staff’s annual review, staff has prepared a recommendation for the Board’s consideration to continue to improve these processes.
STRATEGIC PLAN: Mission - To enhance the well-being and quality of life for all community members through the provision of the of the highest level of public service consistent with the prudent use of public funds
DISCUSSION: For the FY 27 budget process, staff recommends one change: the dollar threshold for how frequently an annual audit is required. Attachment A - Eligibility Criteria lists eligibility requirements to receive County funding and applies to all community non-profit funding processes. In prior years, the requirement has been that agencies with a budget of $500,000 or less may complete an audit once every three years and annually if the budget is greater than $500,000. Staff recommends increasing that dollar threshold from $500,000 to $750,000 for the following reasons:
- This increased amount aligns with guidance from the US Department of Health and Human Services Office of Inspector General.
- This amount has not been changed since the FY 19 budget process, while inflationary costs have increased during that time.
- This amount is consistent with the City of Charlottesville’s current community non-profit funding process, providing more consistency to community non-profits when planning their financial services needs.
Staff also received feedback from some community non-profits that a “financial review” instead of an “audit” be required for agencies less than $750,000, consistent with the City of Charlottesville. Staff is noting that feedback for transparency and is not recommending allowing a “financial review” in place of “audit” due to a) an audit being a more thorough review and b) past Board of Supervisors’ direction on the importance of the audit requirement.
Similar to prior years’ process improvements, County staff will also review agencies to ensure they are classified in the correct process for considering requests, improve the online application, refine application questions, provide technical assistance during the application process, and increase compliance reviews.
No changes are recommended specific to the Human Services Funding (Attachment B), Cultural, Arts, and Festivals (Attachment C), and Community Non-Profit Capital (Attachment D) processes.
BUDGET IMPACT: Direction received from the Board will be incorporated into the FY 27 annual budget process. Approval and appropriation of budgets after staff recommendations would continue to be determined by the Board in the annual budget process subject to total budget considerations including, but not limited to County mandates and obligations, investment in the Strategic Plan, and available revenues.
RECOMMENDATION:
Recommendation
Staff recommends the Board approve attachments A, B, C and D that reflect this updated framework to guide FY 27 funding recommendations.
ATTACHMENTS:
A - Eligibility Criteria
B - Human Services Funding Process Framework
C - Cultural, Arts, and Festivals Process Framework
D - Community Non-Profit Capital Process Framework