ATTACHMENT A
Summary of 2022 Nonprofit Agreement Risk
Management Review Audit Recommendations
# Audit Recommendations Summary
Nonprofit Service Agreements
1. Agreements should define service level expectations: goals, performance measures, and reporting.
Higher-risk agreements should have greater performance and reporting expectations.
2. High-risk agreements should be appropriately resourced and closely managed.
Underperformance should be discussed early and corrective actions should be taken to improve performance.
3. City’s responsibilities in the agreement should be achievable to avoid noncompliance.
4. City should track and evaluate City /nonprofit performance and address risk of continuing or discontinuing the relationship.
City should maintain a list of all nonprofit agreements and periodically report to Council on performance.
Nonprofit Lease Agreements
1. Lease agreements with significantly reduced rent amounts should include performance and reporting requirements for services being provided on the premise.
High-risk agreements should assign a project manager to monitor performance.
The actual benefit to the City should serve as a basis for reduction of rent amount when lease agreements are renewed.
2. Analyze non-monetary support should be analyzed based on the ASD estimated fair market rental value
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Analyze non-monetary benefits to be provided by nonprofit =
to determine the appropriate compensation or their use of the City-owned properties.