Reston Affiliate Points Affirmation on Returning $ 1.3 Million PPP Loan | Zoom Fintech

Reston Affiliation Board of Directors Fills Gaps in Monetary Decision Making Due to Accepting $ 1.3 Million Loan from Paycheck Security Program that it has not since qualified several months.

Some RA members criticized CEO Hank Lynch for continuing the PPP loan at the end of March without consulting the board of directors at an appropriate meeting. RA President Julie Bitzer, board members, grassroots legal counsel and RA senior monetary officer were consulted before creating the pick. The funds were returned on May 14 with no penalties or monetary prices allowed.

In a July 23 statement, Bitzer said the method indicated that there was a “substantial gap in our instruments of governance.”

“Specifically, official controls on how RA can obtain unsecured loans do not exist,” she wrote in the statement authorized by the council.

She also said that employees and board members made “assumptions and mistakes” in a rush to protect RA’s financial stability in response to COVID-19, including that almost the entire board does not consider Lynch to have acted with bad intent or to exceed his authority.

In May, Reston Affiliation declined to give details of the loan amount to Reston Now. The difficulty was first raised publicly at a council meeting in May when Lynch explained to the council why the loan was repaid.

Nonetheless, RA put forward a number of motions to fill in the gaps in decision-making and improve total coordination this month:

Forward to ask the CEO to present to the Tax Committee all the unsecured loans present previously concluded for its evaluation and to ask the Tax Committee to present its evaluation and its suggestions on these loans to the Council at the common plenary meeting of the Council in September 2020.

Transfer to direct that the Board of Directors and CEO put in place a periodic review of our corporate processes and controls to proceed with the refinement of our operations.

Forward to request the Tax Committee and Board Governance Committee to review and provide draft amendments to the Draft Employee Reviews of Valuation Decision and Finance 10: Finance Amendments to clarify what constitutes a significant change to biennial funds which may require a motion from the board of directors. The Board asks that it be proposed or not a draft amendment to decision 10 at the latest at its full board meeting in November 2020 for its consideration and motion.

At the end of June, the board of directors also asked the CEO and employees not to take any action regarding the acquisition of additional loans – whether secured or unsecured – without the approval of the board of directors.

Bitzer also noted that Lynch’s decision to cancel summer packages was seen as a public welfare decision, not a budget decision. The choice was criticized by some members who claimed the change was a change in funds, which only the board is allowed to complete.

Few, if any, organizations have been fully prepared for the COVID-19 pandemic, and the RestonAssociation was no exception. Organizations had to respond to the disaster, at least in the beginning, with the sources they had readily available, then quickly pull together additional sources to deal with every apparent and not-so-obvious potential challenge to the functioning of the group and , for some, their very existence, ”Bitzer wrote.

Photograph via YouTube

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Coy Lewallen

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