Care Net Manasota Declines Board Approved $100,000 Funding

BRADENTON – In an email sent on March 3l, Kelli O’Malley, CEO of Care Net Manasota Pregnancy Center, informed the county that the organization would decline the $100,000 in funding approved by the Manatee County Commission at a March 22 meeting. The funding was the combined total of two evenly divided funding approvals the board made in July of 2021–to Solve Maternity Homes and Care Net Manasota–of $50,000 each.

In the email, O’Malley summarized the decision by writing, "Because the verbal representations do not align with the written contract, we do not see that it is within Care Net Manasota’s best interest to accept this grant and respectfully decline it."

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O’Malley wrote that after reflection upon the commission meetings related to the initial $50,000 funding to Care Net, and the subsequent meeting affirming the combined $100,000 to the organization, it was the conclusion of Care Net’s board members that the county had not performed in keeping with the funding approved by the board.

In a July 27, 2021 meeting, Commissioner James Satcher utilized a consent agenda itembefore the board for approval of the Children’s Services Advisory Board’s FY 21/22 investment recommendation. Satcher pulled the item from consent, providing an opportunity to present a motion intended to set aside Children’s Services funding to support non-profit organizations that work with women in crisis pregnancy situations.

Satcher requested the board approve $100,000 from the millage approved for neglected, abused, at-risk, or economically disadvantaged children between ages 0-18 to be given to Solve Maternity Home and Care Net Manasota. Both organizations are faith-based crisis pregnancy centers that did not apply for funding during the FY21/22 funding cycle for non-profit agencies.

Satcher’s motion for the funding came on the heels of an effort he began in June to garnish board support for a county ordinance that would have banned abortion providers from providing services in Manatee County–a county without abortion service providers. By mid-September, the board voted to seek legal guidance from the state attorney’s office and received a formal opinion in December stating such an ordinance would conflict with state law. The opinion tabled Satcher’s initiative.

At the time of his July motion, several commissioners expressed concern that the motion did not adhere to the appropriate process. One point raised was that the funding source he sought to designate the funds from for crisis pregnancies centers had its own process for applications and approvals, which followed the requirements of the Children’s Services Ordinance 91-42.

The approved July motion for funding also received criticism from members of the public, including members of The League of Women Voters of Manatee County's Government Committee. LWV called foul on Satcher’s not having followed good governance procedures. One such objection by the LWV included Satcher’s intended motion not being added to the agenda as an item to properly inform other commissioners and the public of his intention.

However, O’Malley’s email to commissioners included the perspective of Care Net that the July meeting was, "organized with the intent to convey a grant towards Care Net Manasota Pregnancy Center’s services," a perspective that seems to ignore the fact that the motion to provide any nonprofit organization funding outside of the Children’s Services Advisory recommendations was never a part of the meeting’s official agenda.

TBT submitted a request to the county for a copy of the contract O’Malley referenced in her email to commissioners. O’Malley wrote the organization was "concerned" and "perplexed" after having reviewed the contract.

The contract provided to TBT per a public record request was the standard 13-page "Agreement For Non-Profit Agency Services." Such an agreement must be utilized to meet the state legal standards for public oversight and accountability in situations where a county has designated taxpayer funding to a nonprofit organization for its services to the community. That is to say, any funding approved by the board to be provided to Care Net, could not legally be executed without parties entering into the written agreement which was delivered to Care Net.

During the July 27 meeting, County Attorney William Clague told the boardthat should they approve funding to a nonprofit agency outside of an advisory board process, the requirement for written agreements containing "controls" would still be necessary "under the case law." Clague stated these controls would include the ability for the county to "audit and review financial records" of the entity throughout the scheduled course of the funding arrangement. Clague made it clear that such a written agreement is legally required and "standard case law" for every nonprofit receiving county-approved funding.

But at least one commissioner saw the situation as something more than Care Net declining the legally required oversight controls of such funding. In his reply to O’Malley and cc'd to his fellow board members, Satcher appeared to suggest there was some intention, or effort, to "force" the organization to decline the funding. Satcher referenced other non-profits who receive county funding telling O’Malley that it is his assumption that few likely rise to Care Net’s worthiness in terms of women facing crisis pregnancies.

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It should be noted that all non-profit organizations that enter into any process or approval for county taxpayer funding must execute the same standard agreement which Care Net declined in order to receive the approved funding.

Ultimately, Solve Maternity Home graciously declined the initial approval of $50,000 to their organization in the July meeting. Appearing for public comment in an August 10 meeting, Brian Kerwin, speaking on behalf of Solve, said the organization relies on private donations, grants, and fundraising events. Kerwin offered that in its 45 years, Solve has never received county taxpayer funding and thanked the commission for the generous offer.

The subject of the approved funding did not arise again publicly until a recent March 22 commission meeting. Included in the regular meeting’s consent agenda, underCommunity and Veterans Services, was an item titledApproval of funding to Care Net. The item had been added days prior to the meeting and then removed before ultimately being returned to the agenda. Reportedly, issues with the agency’s application, supporting documents, and the amount of money Care Net was to receive caused its removal, before later being returned to the agenda.

Coincidentally, the meeting's invocation was led that morning by Kelli O’Malley, CEO of Care Net Manasota. During "requests by commissioners," the item relating to Care Net funding was pulled from consent by Commissioner Reggie Bellamy. Bellamy sought a discussion prior to a vote by the board to approve, to clarify where the funds identified were to come from.

County Administrator Scott Hopes told the board that while the funds were initially identified to be granted from reserve funds of the children’s trust, an issue had since been raised that such funding from that identified source would require a public hearing. The item was added to consent to approve an amendment to the original approval to instead designate the source funding from the general revenue funds.

Hopes told the board that Care Net had completed an application process as requested by the county and that the application was attached to the meeting’s agenda along with supporting documents. Hopes added that the nonprofit had also subsequently submitted applications for funding for FY22/23 from both the Children’s Service’s fund and general revenue for adult services.

Satcher presented his case that whatever concerns may have been raised about "process" following his motion in July to approve the initial $100,000 in funding to two nonprofit pregnancy centers, nine months later, in March, Care Net had yet to receive the approved funding. Satcher argued that a nine months delay, from his perspective, clearly showed there was a lengthy "process."

Satcher added that it was his position that the $100,000 having been previously approved by the board for such use as crisis pregnancy services, and with Solve declining their $50,000 portion, the money was still set aside per the board’s approval. Satcher argued that board members should easily agree that with the money already identified to the total of $100,000, the combined funds should in essence default to the organization that remained willing to submit an application and enter into the process for that funding.

The application and documents attached to the meeting’s agenda referenced by Hopes included an application by Care Net for $250,000 from the Children's Services Advisory Board, submitted in March of 2022. Additionally, included in the application is language referencing Solve’s declination of the $50,000, and Care Net not having received any of the July approved funding as of February 2022.

"Care Net Manasota was awarded in a County Commissioner meeting last year and per the board minutes, we were awarded $50,000.00 and Solve $50,000.00 but Solve declined and we have not seen anything as of 2.28.22."

When reviewing the application and supporting documents as attached to the agenda for the March 22 meeting, page 298 of the attached document showed that the application was for the Children's Services Dedicated Millage investment FY21/22. Based on the attached document, the application and required documents necessary to complete the application were submitted in March of 2022.

Through a public records request, TBTobtained a copy of the original application Care Net completed related to the approved $50,000- $100,000 in funding. When TBTrequested clarification from the county on the submission date of Care Net's application, we were informed that the application was submitted by Care Net on March 2, 2022.

What remains unclear is how Care Net was able to complete and submit an FY21/22 application in March of 2022. Per the application instruction page located on the county’s website, fiscal year applications are due by February 25th at 5 p.m. of the starting year for which the application is submitted. An application for FY 21/22 would be due February 25, 2021, and a FY 22/23 application would be due February 25, 2022.

Upon reviewing the supporting documents Care Net submitted with its application, TBT noted one requirement of the application. "The agency’s most recent audited financial statement or compilation from an independent certified public accountant registered in the State of Florida. The audit/compilation must be less than 2 years old to receive funding from Manatee County,“described in the application. Care Net did attach a supporting document labeled, Donna Marin inhouse Audit.pdf. However, upon TBT’s review, this document was not an audit/compilation, but an internal proposed budget of the organization for the years 2019-2020.

It appeared as though, by the time of the application’s submission and by the time of the March 22 meeting, the organization had not yet met the requirements of the application in terms of an independent audit/compilation.

Through a public record request, TBT sought all application-related documents that Care Net had provided to the county through April 7, 2022. In response to our request, we were provided a copy of a financial compilation completed by an independent CPA, Stephen Wicker. The cover letter for the compilationwas dated March 23, 2022–the day after the March 22 meeting.

After our review of the related meetings, board discussion and vote for funding approvals, documents attached to meeting agendas, and statements made by the county administrator and county attorney during the meetings, TBT was able to confirm an application with the Children’s Services Advisory Board was submitted by Care Net.

Although the submission date was beyond the due date provided on the application instruction webpage of Manatee County Government’s website, Care Net had supplied all requested and required documentation to complete the application. The independent audit/compilation may have been delayed in its completion, but was ultimately completed to meet the requirements of the application.

Questions remain about what would cause an organization that had committed to the time and cost to produce and provide the required documents and application, only to ultimately decline the funding upon receiving the necessary standard written agreement for the final execution of the approved funding.

TBT reached out to Care Net via email to inquire whether the organization wanted to add any further details to the email sent to commissioners by O’Malley declining the board-approved funding. Nicole Cato, Chairman of Care Net's board, responded to our email by confirming the contents of the declination email, writing, "Our response was clear and we have nothing to add."

In response to a request for comment from Manatee County in relation to Care Net declining the funding, Manatee County Public Information Officer Bill Logan wrote on behalf of the county, "We respect the decision of Care Net Manasota to decline the grant funding. We thank the organization for their work in the community and wish them well in their further endeavors, as we continue to work with organizations that serve our community."

While the county has a well-documented and publicly announced annual nonprofit agency funding application process that has existed for decades for both Children’s Services and Adult Services funding, inclusive of timelines, submission deadlines, and staff technical assistance, Satcher’s motion for Care Net Manasota to be approved funding was separate of that process.

Should Care Net decide to apply for funding in future fiscal years through the established process that hundreds of other Manatee County nonprofit agencies submit applications to, the organization would still be required–should its funding application be included in the investment recommendation brought before the BOCC for approval–to execute the same contract, or standard written agreement, that the agency declined in relation to the $100,000.

Dawn Kitterman is a staff reporter for The Bradenton Times. She covers local government and entertainment news. She can be reached at dawn.kitterman@thebradentontimes.com.

editor's note: a previous version of this reporting referred to the compilation completed for Care Net Manasota by CPA Stephen Wicker as an "audit." The CSAB application requirement allows for either an independent audit or independent compilation no older than two years.Care Net fulfilled this requirement with an independent compilation.