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City of East Ridge

December 16, 2016

For More Information,

Contact Davis Lundy
At 423-240-5749

News Advisory
City of East Ridge Response to State Audit of Needy Child Fund

The City of East Ridge welcomes the audit and findings of the Tennessee State
Comptroller regarding the Needy Child Fund.

The Needy Child Fund is a well-known, respected effort by employees to help less
fortunate citizens in East Ridge, especially around the Christmas season.

The audit found no intentional wrongdoing by any employee of East Ridge.

City Manager J. Scott Miller and the City Council have already taken the necessary steps
to address audit findings. Those corrections are:
o Creating a separate, non-profit 501-C (3) organization to oversee the fund with an
independent board. A filing has already been submitted to the state and four local
board members have already been identified.
o In June 2016, the City adopted and implemented uniform accounting systems and
internal controls as required by state law. The East Ridge Internal Control Manual
has already been discussed with all appropriate departments inside City
government. These internal control standards are currently being followed by all
City departments.
The Internal Control Manual addresses how to properly document and deposit
funds, provide receipts, prepare rental contracts, make disbursements and
maintain inventory.

o The new 501-C (3) organization will create separation of the Needy Child Fund
from the City and its employees. As soon as the organization is fully formed, it will
develop a new mission statement that describes it purpose and use of collected
funds.

This year, items purchased by the fund will help more than 50 needy children in East
Ridge. Items purchased include toys, clothing, diapers, car seats and hygiene items.
Other money was spent on the logistical needs of producing the Santa Village (i.e.
tents, decorations) as well as purchasing items for resale such as Christmas
ornaments and an assortment of Christmas toys. In one case, nearly $4,000 was
spent to meet an urgent medical need for one family.
The Needy Child Fund identifies needy families though an application process,
Facebook and word of mouth. Applications are sent to local school guidance
counselors, who are in the best position to identify need families. All applicants are
evaluated and, if needed, a home visit is done to verify the need.

The Needy Child Fund is an institution in East Ridge that has met many urgent needs
for our citizens over the decades it has been in existence, said East Ridge Mayor
Brent Lambert. We look forward to making the Needy Child Fund even more
successful in the years ahead.

Our goal is to operate all departments in the City of East Ridge as efficient as
efficiently as possible, and we will do that, said City Manager J. Scott Miller.
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