HomeMy WebLinkAbout04-18-19 Correspondence - Montana Department of Commerce to Andrus - Project Monitoring Results-BSTF Contract for XY Planning Network, LLC i
TARA BULLOCK
DIREC OIRE M O N TA N A STEVEGOVERNOR
Idlill DEPARTMENT OF COMMERCE
April 18, 2019 '
Mayor Cyndy Andrus
City of Bozeman
P O Box 1230
Bozeman, MT 59771-1230
RE: Project Monitoring Results — Montana Department of Commerce, Big Sky
Economic Development Program Contract # MT-BSTF-1-19-07, XY Planning
Network, LLC
Dear Mayor Andrus:
On March 25, 2019, 1 visited your offices to review the progress of the City of
Bozeman's BSTF contract for job creation assistance to XY Planning Network, LLC. I
want to thank Brian LaMeres, Carolyn Murry and Amanda Brown for their time and effort
during the visit. I appreciated and enjoyed the onsite visit to the new XY Planning's
offices.
The purpose of the visit was to evaluate the City of Bozeman's compliance with state
requirements of the BSTF program and to assess progress towards completion of the
grant. One of three levels of determination (listed below) is assigned to a particular
issue if the City of Bozeman or XY Planning, LLC's performance is considered less than
satisfactory.
Concern
An issue that does not involve a statutory or regulatory requirement but may involve
recommending management or program improvement is considered a concern. A
modification of an administrative procedure or policy would be suggested. No formal
written response is required from the grantee.
Question of Performance
If the review raises a question regarding whether a violation of a statutory or regulatory
requirement has occurred, the BSTF liaison will first informally discuss the review
results with the company to determine if a violation has occurred. If a determination
cannot be made before the end of the monitoring visit, the BSTF liaison may conclude
that there is a question of performance and request additional information to be
provided within 30 days. That period allows the Montana Department of Commerce the
time to determine if a violation has occurred. A final determination will be made within
30 days.
Finding
When a monitoring review reveals a specific, identifiable violation of a statutory
requirement, the BSTF liaison will make a "finding." A written response regarding the
COMMERCE.MT.GOV I MARKETMT.COM
301 S. PARK AVE. I OFFICE OF TOURISM AND BUSINESS DEVELOPMENT-PO BOX 2005331 HELENA,MT 59620-0533
P:406.841.2870 I F:406.841.2871 I TDD:406.841.2702
company's proposed actions to correct the situation is required within 30 days of the date
of the BSTF liaison's monitoring letter.
Corrective actions should:
1. Prevent a continuance of the violation;
2. Mitigate any adverse effects or consequences of the violation to the extent
possible under the circumstances; and
3. Prevent a recurrence of the same or similar violation.
The following is a summary of the compliance areas monitored during our visit:
Prospera Business Network
CRDC FILE_ AND FINANCIAL. MANAGEMENT
✓ CRDC oversight matches the management plan.
✓ Documentation of receipt of administrative expenses is adequate.
No concerns were noted.
City of Bozeman
LOCAL GOVERNMENT FILE MANAGEMENT
✓ All original documents associated with the contract were on file.
✓ Activities completed matched the contract agreement.
✓ No complaints relative to the project have been received.
✓ File is not easily accessible by the public. I was unable to verify all the
documents as the documents are electronically stored and were unavailable.
Files should be readily available for public review if requested. No additional concerns
were noted.
City of Bozeman
LOCAL GOVERNMENT FINANCIAL MANAGEMENT
✓ Local Government adopted a budget resolution for expenditures.
✓ Budget resolution is on file.
✓ Grant project appears in the local government financial records.
✓ There is a separation of duties.
✓ There are no ineligible expenditures charged against the project.
✓ All expenditures had adequate documentation and authorization.
Based on the documentation provided by XY Planning, the City paid on two jobs which
were later determined to be ineligible (see Concern below). No additional concerns
were noted.
XY Planning Network, Inc.
ASSISTED BUSINESS FILE AND FINANCIAL MANAGEMENT
✓ Hiring records were complete.
✓ The business is behind in their hiring and their records matched the most
recent progress report.
✓ Reviewed payroll records and verified wages match the job creation report.
✓ Documentation of receipt of reimbursed expenses is adequate.
✓ Business is active.
Concern: During the monitoring visit when verifying employees, it was discovered that
6 employees on the baseline are remote workers and do not live in Montana. If this
contract is amended, the baseline will be corrected at that time.
Concern: The BSTF Program had received a Job Creation Certification, signed by the
XY Planning, that they had created 4 net new jobs at the 135 E. Main Street, Bozeman.
Based on this information, the City and BSTF Program disbursed funds on the 4 net
new jobs. During the visit, it was discovered that two of the employees do not work at
the Bozeman location, making the job ineligible for reimbursement. Since the
monitoring visit, the business has hired two additional employees. At this time, the
business has 4 net new jobs at the site. No additional action is needed.
Please note that all project records must be kept on file for three (3) years after you
have received the final BSTF project closeout letter from the Department. Additionally,
to assist the Department with program performance reporting, the BSTF award
recipient may be required to provide annual project updates for 3 years after the close
of the contract.
If you need additional information or have questions, you can contact me at (406) 841-
2792 or by email at ddavidson2@mt.gov.
Sincerely,
4LC��
Debi Davidson
Program Specialist
Big Sky Economic Development Trust Fund
Montana Department of Commerce
c: Brit Fontenot, City of Bozeman
Travis Gano, XY Planning Network, LLC
Paul Reichert, Prospera Business Network