BCJ: Township Donations

The following is taken from the January 27, 2012 Boone County Journal which is available free of charge at merchants across the county and on-line at:  http://www.boonecountyjournal.com/news/2012/Boone-County-News-01-27-12.pdf#page=6

General Assistance And Township Donations

By James Middleton


Since last September, the general assistance fund and how Belvidere Township makes donations have been items of interest. Letters to the Editor have appeared and Belvidere Township supervisor Patrick Murphy said in an
interview, “There has been a lot of misinformation about the township general assistance fund and how we can make
donations.”

The township general assistance fund is one element of Township operation that was discussed with Mr. Murphy and Terri Bullard, a township worker that manages the general
assistance fund. An interview occurred two weeks ago when these matters were discussed. Additional assistance was obtained from counsel for the Township, Keri-Lyn
Krafthefer of the law firm, Ancel, Glink, Diamond, Bush, DiCianni & Krafthefer P.C. of Chicago.

 
Duties and activities vested with township government in Illinois are sanctioned by state law and found, in part, in the Illinois Compiled Statutes at the corporate powers of townships.

Belvidere Township came to public attention in
September when Linda Carter, the leader of the Boone County Food Pantry in Capron, appealed to the Township for financial assistance. Those that support the Food Pantry
believed because, so many obtaining food assistance came from Belvidere and Belvidere Township, the Food Pantry deserved to receive help.

 
However, Mr. Murphy said, “We can’t do just what we want with our money.” He said that Illinois law guides how donations can be made by a township and how money can emerge from the general assistance fund.

 
From September until the request for $5,000 was denied in late December, efforts were made by the Township Board  to obtain financial information from the Food Pantry. By
the December 27 meeting, the Board voted to deny the request. One reason given for the denial suggested that the Food Pantry did not have a specific means to segregate
money granted to them to serve only Belvidere and Belvidere Township clients. This is a common criticism of many agencies that solicit aid; the group asking for assistance does not provide a reasonable method to provide assurance that the money granted will serve those in need.

 
Ms. Bullard said, “We wanted an audited financial statement from the Food Pantry.” Their audited financial statement, dated June 30, 2010 by the accounting firm of Patrick Fowler & Associates, was received by the late
December Township meeting.

The auditor noted in a letter, “As discussed in Note 1, the Organization’s policy is to prepare its financial statements on the basis of cash receipts and disbursements. Consequently,
certain revenues are recognized when received rather than when earned and certain expenses are recognized when paid rather than when the obligation is incurred. Accordingly, the accompanying financial statements are not intended to  present financial positions and results of operations with generally accepted accounting principles.”

 
Some have criticized the Township for not granting funding to the Food Pantry from the general assistance fund. Others criticized the Township for filing levies at/or
in excess of $2 million and holding fund balances in their general assistance fund of more than $250,000. However,  Illinois law provides guidance that identifies qualifications
needed to receive aid from general assistance and how grants from Township revenues may occur.

Ms. Bullard explained, “General assistance money from the Township goes to help men and women in need and not for families.” She explained that some in need bypass Medicaid for medical coverage and come to the Township and could be liable for medical costs for a family. The Illinois Public Aid Code explains how and when a township
or other qualified governmental entity could be liable to pay for medical needs.

Funding for this type of help could not come from the general assistance fund. Medical funding for those in need would have to come from other areas of the Township budget. Ms. Bullard opined if the Township was met with
significant medical needs the effect could be devastating.

 
Illinois law at 305 ILCS 5/6-1 of the Illinois Public Aid Code at General Assistance provides for a number of methods a local governmental unit can dispense aid money. At the outset of this entry the language identifies, “Financial
aid in meeting basic maintenance requirements shall be given under this article to or in behalf of persons who meet the eligibility conditions of Sections 6-1.1 through 6-1.10.”
of “illness or disability.”

 
Ms. Bullard added, “Money for donations to the Food Pantry would not have come from the general assistance fund.”

 
Meeting the qualifications for assistance is a major element of concern for Ms. Bullard and Mr. Murphy. Because Mr. Murphy is the Belvidere Township supervisor  he has to approve all funding distributed from the general  assistance fund. Ms. Bullard meets with, interviews and cross-checks the applications from those seeking aid. Some
applicants are not truthful in their application and checking the multiple-page applications is a major part of Ms. Bullard’s job.

Mr. Murphy said he and Ms. Bullard are the only people at the township that know the names of applicants. “The trustees don’t know the names of the recipients and I am
ultimately responsible for the decision on general assistance. Terri obtains the information,” said Mr. Murphy.

One precise element of the law concerns drug convictions of those that apply. The law identifies at 305 ILCS 5/1- 10(a) that any person convicted of a Class X, a Class 1
felony or a comparable federal crime is not eligible for general assistance. Ms. Bullard added, “The law does not bar others but conviction of a Class X or Class 1 will deny
assistance.”

“We must do our due diligence to protect taxpayer revenue and the form is sizable,” said Mr. Murphy.

Belvidere Township administers general assistance needs for the other nine townships in Boone County. Individuals seeking aid in another township are referred to Belvidere.

Ms. Bullard said that the process is the same for all townships. She interviews the applicant, checks their application and informs the township if the person qualifies. The township then pays Belvidere Township for the aid that
is given.

If the applicant is asking for help with their rent, the township, if needed, can engage the landlord to negotiate a contract. After an agreement is reached, a check for rent
from the township goes to the landlord. In townships and in other counties, extended rental agreements are entered into
to help those is need, to avoid eviction.

 
Those that come to the township for aid do not need to have a local address. If they enter, apply and qualify they will receive assistance.

Participation in the general assistance program, Ms. Bullard said, encourages people to be employed. If the individual needs ongoing assistance they must provide
reports of their search for employment. In some townships,  those seeking ongoing aid can engage in community service, similar to what is offered those convicted of crimes as a part of their probation. In this instance, those receiving ongoing aid work for the township to provide a return for the aid they obtain.

One other question that arose last fall asked why
Belvidere Township provides a grant to the Salvation Army
and not to the Boone County Food Pantry. The answer
relates to the willingness of the entity to confirm the use of
grant money that they receive and also to engage in a formal
contract between the township and the entity to receive the
grant.

The money given to the Salvation Army goes direct to
their Belvidere office and money from that grant is only
used for specific purposes. Mr. Murphy said, the contract
with the Salvation Army specifies that the money stays in
Belvidere to help Belvidere people. He added, “Our check
goes to the Belvidere office and can only be used to pay for
utilities or other needs to assist the needy in Belvidere. The
Salvation Army has been a collaborative partner with us.”

One concern with the Food Pantry and other organizations
that ask for help is the assurance that the help they provide
will be for Belvidere and Belvidere Township residents
only. The extent of the Township jurisdiction extends across
the geographic area that they govern. It was the belief of
the Township Board that limited assurances covering who
received their help could not be granted by the Food Pantry
and that led to the decision to deny their request for aid.

Mr. Murphy was correct at the outset of the interview
when he said that there has been misinformation delivered
regarding how Belvidere Township operates their general
assistance fund and how they provide grants to those that
ask for help. Illinois state law is rather explicit regarding
how general assistance funding may be used. Further, there
is a potential obligation for ongoing or catastrophic medical
care for those that qualify.

Given required elements in the law, the policy of the
Township to maintain fund balances for those funds that
could be tapped for such needs are aspects of the operation
of the Township that many might not have known. Township
government in Illinois is the only branch of local governance
that specifically identifies an obligation to extend help to the
“poor and the aged.” Because of this mandated obligation
and given the economic conditions today, the policy of
Belvidere Township might be well taken.