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HomeMy WebLinkAboutA036 - FY 2025/26 Analysis of Social Services Evaluation Team (ASSET) Contract with NAMI Central IowaITEM #:36 DATE:11-18-25 DEPT:ADMIN SUBJECT:FY 2025/26 ASSET CONTRACT WITH NAMI CENTRAL IOWA COUNCIL ACTION FORM BACKGROUND: The City currently has an FY 2025/26 Analysis of Social Services Evaluation Team (ASSET) Contract with NAMI Central Iowa (see attachments A1 and A2) in the amount of $27,550. Two other ASSET Funders - United Way of Story County and ISU Student Government - have additional contracts for FY 2025/26 with NAMI for a total $36,792. Story County does not fund mental health services through ASSET. ASSET policies require agencies with an annual budget of $250,000 or more to undergo a financial audit and provide it to the ASSET Funders. NAMI's annual budget exceeds this $250,000 threshold and therefore is subject to this requirement. Section XI. D of the ASSET Polices and Procedures, adopted by all ASSET Funders, states: D. Agencies with an annual budget of $250,000 or more must submit an electronic copy of their full comparative audit and an electronic copy of their IRS Form 990 to the ASSET Administrative Assistant. Additionally, Division IV 8b of the ASSET Reference Manual states: b. Agencies with an annual budget of $250,000 or more must submit an electronic copy of their full comparative audit, IRS Form 990, and a balance sheet prepared externally and independently. (ABF-6)" Over the last two years, ASSET funder staff have repeatedly communicated to NAMI that an independent financial audit is required and that it has not been received for the last few years. ASSET has not received NAMI's audits for FY 2022/23 or 2023/24, and a 2024/25 audit will be due by December 2025. All other ASSET agencies that are required to furnish an audit have submitted it as necessary. City staff is concerned that a significant amount of time has passed, and no audit has been produced despite being assured by NAMI that it is being worked on. A recent email exchange with NAMI is attached (see Attachment B). In August 2025, United Way of Story County Board decided to pause its ASSET agreement with NAMI until an audit is received. City staff is requesting that the City sequester NAMI's funds until the necessary audits, or at minimum the most recent audit, is received and reviewed. 1 ALTERNATIVES: 1. Approve sequestering the remaining balance to NAMI for FY 2025/26 until an audit is received. 2. Allow reimbursement claims for NAMI to be processed for FY 2025/26 without an audit. 3. Refer to back to staff. CITY MANAGER'S RECOMMENDED ACTION: ASSET agencies are obligated to produce an audit if their annual budget is $250,000 or more. The information provided in the audit allows ASSET Funders the opportunity to perform their due diligence to assess that an agency receiving financial support is being fiscally responsible. All active ASSET agencies that are required to produce an audit have done so, except NAMI. Staff has provided ample time for NAMI to provide past audits. However, they are all still outstanding. Therefore, it is the recommendation of the City Manager that the City Council approve Alternative No. 1 above. ATTACHMENT(S): Attachment A1: FY 2025/26 ASSET Agreement - NAMI.pdf Attachment A2: FY 2025/26 ASSET Agreement NAMI - First Amendment.pdf Attachment B: Email with NAMI.pdf 2 3 4 5 6 AMENDMENT NO. 1 TO CONTRACT FOR HUMAN SERVICES BETWEEN THE CITY OF AMES AND NAMI CENTRAL IOWA WHEREAS, effective July 1, 2025, the City of Ames and NAMI Central Iowa entered into an agreement for funding for social services to be provided by NAMI Central Iowa through the City’s ASSET program; and, WHEREAS, the parties wish to amend the agreement by the City around the cost of services, THEREFORE, the parties agree to amend their FY2025/26 prior agreement as follows: 1. Under Section II, “SCOPE OF SERVICES,” pertaining to the cost of services, the following unit rates will be: SERVICE COST PER UNIT UNITS AMOUNT Activity and Resource Center $422.21 29 $12,400 Advocacy for Social Development for Family and Peer Support $283.14 1 $550 Public Education and Awareness $62.81 213 $13,400 Advocacy for Social Development: Family and Peer Education $359.46 3 $1,200 2. All other provisions of the original agreement remain in full force and effect. IT WITNESS WHEREOF, the parties hereto have, by their authorized representatives, set their hand and seal: CITY OF AMES, IOWA ATTEST: BY: __________________________ ____________________________ John A. Haila, Mayor Renee Hall, City Clerk Date signed:___________________ [Continued on next page] 7 Page 2 Amendment to agreement between City of Ames and NAMI Central Iowa NAMI Central Iowa (AGENCY) Organization Address (please print): BY:_____ Roxanne Petersen, President/ CEO___ 424 5th St. Ames, IA 50010 Phone Number: 515-292-9400 Date signed:____9/17/2025______ 8 1 Goldbeck, Pa From:RPetersen <RPetersen@namicentraliowa.org> Sent:Saturday, October 25, 2025 8:37 AM To:Goldbeck, Pa; Billing Specialist; City Manager - ASSET Subject:Re: Billing for September [External Email] Pa- I have copied the email I sent over to Ashely. Our auditors are working on 22/23 and 23/24 . I spoke with them recently and they are sending out an updated document regarding what else is needed for 22/23 to complete that audit, along with a timeline in which the 22/23 audit will be completed. We are close. They/we have also been working on the 23/24 audit and will be sending out a similar list of what is still needed. We have been working diligently on getting this resolved. Just to recap on the timeline of this audit journey. I became a staff member at the end of October 2022 and once myself and the board identified the gaps that needed attention, we swiftly addressed those to the best of our ability. We started the 22/23 audit process with Housten & Seamen on December 28 , 2022, we then worked with them until December 4th 2024 when we received a letter stating they would no longer provide audit services due to compacity issues on their end. We then were positioned to seek out another auditor that fit in with our budget. We then reached out to Ashely at UW for support and she promptly provided us with guidance and once that took place, we established our partnership with Trust point, LLC in May of 2025. Please keep in mind the timeline may show gaps in focus on audit; however, I have also been managing all contracts, providing services and overseeing all of the day today operations. I share this information to offer a better understanding of our journey here. Our priority is to always serve our community PAUSED FUNDING: ASSET paused funding has caused significant financial strain on our organization that now has positioned us to re-evaluate our financial position, and how to navigate moving forward. I truly value this partnership and would ask that the paused funding be considered to be reinstated. BILLING: I will work on getting this corrected, our billing specialist is no longer with us as she has stepped down to focus on her nurse practitioner schooling and family. Warm Regards, Roxanne Petersen President & CEO NAMI Central Iowa 424 5th St 9