Explore Fairbanks will now be required to send in annual audits.
Published: Feb. 14, 2024 at 9:44 AM AKSTFAIRBANKS, Alaska - At Monday’s regular meeting, the Fairbanks City Council tucked into code new financial reporting requirements for certain recipients of grants drawing from city bed tax revenues.
Sponsored by Councilmembers Lonny Marney and John Ringstad, the ordinance implements a tiered system that lays out a reporting roadmap for organizations who get a chunk of the public funds. The local legislation passed Monday mandates sending a financial audit to the city by Sept. 1 each year for any organization bringing in $500,000 or more from city bed tax revenues, so the major change will come for Explore Fairbanks. The tourism-marketing nonprofit traditionally exceeds that revenue mark, with city code allowing Explore Fairbanks to receive as much as $2.26 million from the tax source each year. It’s the only organization that surpasses the $500,000 threshold. The ordinance also solidifies myriad other means for the top tier to foster what the sponsors call financial transparency, namely delivering to the council an annual report along with a budget, employee salary information and plans outlining future goals.“We 150% support this ordinance,” CEO Scott McCrea told the council at a Jan. 22 meeting. He said his organization regularly performed audits prior to 2020 before the pandemic temporarily derailed the practice via staffing shortages at both Explore Fairbanks and the accounting firm they were using.Next on the list of major bed tax players is Fairbanks Economic Development Corporation , who is by code allotted $100,000 from bed tax revenues annually. The new ordinance also amends FEDC’s financial reporting guidelines. Any organization granted between $100,000 and $500,000 must give the council financial statements a certified public accountant has reviewed, along with a budget and salary information. FEDC is currently the only recipient falling between those fiscal posts. The remaining bed tax beneficiaries are provided a piece of the revenues through a city-backed discretionary fund committee that dishes out smaller grants from a $400,000 pot. The ordinance doesn’t change any requirements for those sub-$100,000 recipients. “I think does a really great job making sure that those people who get the lower grants are not going to be put through the wringer,” Councilmember Sue Sprinkle said at Monday’s meeting. Marney and Ringstad had introduced the measure in December. They then chose to pull it from the council floor and put the ordinance through the gauntlet of committee meetings and work sessions for improvements.“Everybody who was involved in the discussion felt that they had an opportunity for input,” Councilmember June Rogers said Monday.The ordinance passed on a 6-0 vote.
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