HomeMy WebLinkAboutRes2014-005 Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2014-005
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CREATION OF A NEW ACCOUNTING
FUND OF THE CITY FOR THE PURPOSE OF SEPARATELY
ACCOUNTING FOR FINANCIAL ACTIVITIES ASSOCIATED WITH
THE SEWARD COMMUNITY HEALTH CENTER, WHICH FLOW
THROUGH THE CITY OF SEWARD
WHEREAS, the Seward City Council approved Resolution 2010-109 on November 8.
2010 directing the City Manager to submit an application for federal funding to establish a
Federally Qualified Health Center in Seward; and
WHEREAS, the City Council approved Ordinance 2010-008 on December 13, 2010,
establishing a Board of Directors of the Seward Community Health Center; and
WHEREAS, the City Council approved Ordinance 2013-013 on December 16, 2013.
amending Titles 2 and 3 of the Seward City Code for the purpose of authorizing the board of
directors of the Seward Community Health Center, an independent non-profit entity. to operate a
community health center in Seward; and
WHEREAS, the City of Seward and the Seward Community Health Center are co-
applicants for the purpose of receiving federal grant funds for federally qualified health centers
under Section 330 of the Public Health Service Act (42 U.S.C. §254b) and the City is charged
with ensuring that funding under this program is spent in accordance with federal requirements,
and as such, desires to establish a legally separate Fund of the City for purposes of tracking all
revenues, expenditures, and financial activity associated with the Seward Community Health
Center which flow through the City of Seward.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The Seward City Council hereby authorizes creation of the Seward
Community Health Center Fund no. 803, for the purposes of accounting for all financial activity
associated with the flow of funds from the City to the Seward Community Health Center, either
as pass-through grants or from City or other sources.
Section 2. The creation of this Fund is retroactive to December, 2013.
Section 3. This resolution shall take effect immediately upon its adoption.
CITY OF SEWARD, ALASKA
RESOLUTION 2014-005
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13`h
day of January, 2014.
THE CITY OF SEWARD, ALASKA
40eRe:64-40—/
can Bardarson, Mayor
AYES: Keil, Terry. Squires, Butts, Bardarson
NOES: None
ABSENT: Casagranda, Shafer
ABSTAIN: None
ATTEST:
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.1 I hanna Kin IF, MC
Cty Clerk
(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: January 13, 2014
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Through: James Hunt, City Manager f
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From: Kristin Erchinger,Finance Director '4[4M�
Agenda Item: Creation of new Fund to account for financial activities of Seward Community Health Center
BACKGROUND &JUSTIFICATION:
The City of Seward utilizes separate accounting Funds in order to segregate financial activities of different types of
entities and/or funding sources within the City of Seward's financial accounting system. The City of Seward and the
Seward Community Health Center, a legally separate 501(C)(3) corporation, are co-applicants for purposes of
obtaining federal grant funds to support a Federally Qualified Health Center in accordance with Section 330 of the
Public Health Service Act (42 U.S.C. §254b). This partnership requires that the City of Seward serve as the pass-
through entity for federal funds utilized for the FQHC.
The administration desires to establish a new enterprise fund to segregate accounting transactions, to ensure that all
activities associated with the Seward CHC which flow through the City of Seward's financial records, are easily
tracked and reported to granting agencies and independent auditors. Creation of Fund 803, Seward Community
Health Center, will serve that purpose. Should the auditors determine that a fund-type other than enterprise fund is
more suitable, the Fund type is subject to change.
INTENT:
The intent of this action is to obtain authorization to create a new enterprise fund of the City, effective December
2013, to segregate financial activities associated with the Seward Community Health Center, from activities
associated with the City of Seward.
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan(document source here): X
2. Strategic Plan(document source here): X
3. Other(list): X
ATTORNEY REVIEW: Yes X No
FISCAL NOTE:
This action will have no financial impact on the City. It will however, allow for segregation and proper accounting
for financial transactions associated with activities of the Seward Community Health Center, which flow through the
books of the City of Seward.
Approved by Finance Department: .J�
RECOMMENDATION:
Council approve Resolution 2014- authorizing creation of a new Fund of the City retroactive to December 31,2013.