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untanglingwebs
El Supremo
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The DCED once had 22 employees, but a series of budget cuts reduced the staff to a level that primarily only remote monitoring could be done. Monitoring is one of the most important tasks in the office. Now bring in Walling and Eason who hire their cronies and then have to beg HUD to train them (the last monitoring report).
Then add 2 employees who misused the Family Medical Leave Act (1 was fired and 1 retired), HUD demading that 17 years of missed responses to HUD findings finally be completed, an Emergency Financial Manager that ordered large sums of HUD money be given to agencies that did not quallify, and you have a recipe for disaster.
Then throw in some directors like Alexander Thomas, who was prosecuted for the 108 fiascoes and had it reduced to a misdemeanor in District Court. He admitted he did not know what he was doing but he was allowed to stay. Sheriff Pickell and his Captain Swanson, spent a lot of time and did a thorough investigation into Giacalone and the OK Industries 108 loan only to have Leyton plea bargain it down with no criminal penalties. It is against the law to file a false application for funding. Also false appraisals should have been reviewed.
City of Flint expecting another penalty after federal audit released
Published: Monday, March 14, 2011, 7:28 PM Updated: Tuesday, March 15, 2011, 9:45 AM
By Kristin Longley | Flint Journal
FLINT, Michigan -- The city of Flint is expecting another financial penalty after an upcoming audit report on its federal housing program is completed, city officials said tonight.
The city didn't sufficiently oversee its federally funded housing program in past years, City Administrator Gregory Eason said of the audit report on the city's use of funding from the U.S. Department of Housing and Urban Development.
The city will likely be disallowed about $700,000 or more because of the audit's findings, he said.
"We didn't have enough monitoring," Eason told the Flint City Council at its committee meeting tonight.
Officials did not say during the meeting whether the funds would be subtracted from future grant awards, or whether the city would have to repay the funding from current grants.
It was not immediately clear when the audit report would be released.
It wouldn't be the first incriminating audit report from the U.S. Office of Inspector General regarding the city's federal housing program. A report issued in October said the city misspent more than $2 million in federal grant funds on housing projects and may have to repay up to $500,000 of it. |
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Wed Mar 16, 2011 2:01 pm |
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untanglingwebs
El Supremo
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Michigan Audit Reports
Information by State
Print version
Date Issued: October 13, 2010
Audit Report No.: 2011-CH-1001
File Size: 543KB
Title:The City of Flint, MI, Lacked Adequate Controls Over Its HOME Program Regarding Community Housing Development Organizations' Home-Buyer Projects, Subrecipients' Activities, and Reporting Accomplishments in HUD's System
The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the City of Flint's (City) HOME Investment Partnerships Program (Program). The audit was part of the activities in our fiscal year 2010 annual audit plan. We selected the City based upon our analysis of risk factors relating to Program grantees in Region V's jurisdiction and a citizen complaint to our office. Our objectives were to determine whether the City complied with Federal requirements in its use of Program funds for community housing development organizations' (organization) home-buyer projects and subrecipients' activities and accurately reported Program accomplishments in HUD's Integrated Disbursement and Information System (System). This is the second of three planned audit reports on the City's Program.
The City did not comply with Federal requirements in its use of Program funds for organizations' home-buyer projects. It (1) did not ensure that organizations entered into lease-purchase agreements or entered into appropriate lease-purchase agreements with households, (2) failed to ensure that an organization transferred homes to home buyers within 42 months of project completion and did not convert the home-buyer projects to rental projects, (3) did not reimburse its HOME trust fund treasury account (treasury account) for terminated projects, (4) inappropriately used Program funds for home-buyer project costs that were administrative expenses, (5) did not prevent an organization from entering into a land contract with a home buyer, (6) inappropriately used Program organization reserve funds for an owner-occupied single-family rehabilitation project, (7) used Program funds for unreasonable acquisition costs, and ( did not decommit and reprogram Program funds for a terminated project. As a result, the City drew down and disbursed nearly $1.7 million in Program funds for organizations' home-buyer projects that did not meet Federal requirements and inappropriately drew down and disbursed more than $143,000 in additional Program funds.
The City also did not comply with Federal requirements in its use of Program funds for subrecipients' activities. It (1) inappropriately used Program funds for costs that were not associated with an eligible project, were administrative expenses, and were unrelated to the City's Program activities; (2) lacked sufficient documentation to support Program funds used for projects; and (3) did not reprogram Program funds for a terminated project. As a result, the City inappropriately drew down and disbursed nearly $427,000 in Program funds and lacked sufficient documentation to support nearly $65,000 in Program funds.
Further, the City did not accurately report Program accomplishments in HUD's System. It (1) inappropriately entered activity data into HUD's System for 61 properties under 2 or more activity numbers for a total of 130 activities, (2) overreported Program units created by 79 units, (3) did not accurately report completion dates for 35 home-buyer activities, and (4) inappropriately reported the type of activity in HUD's System for 2 activities.
We recommend that the Acting Director of HUD's Detroit Office of Community Planning and Development require the City to (1) revise 12-month lease agreements and 60-month purchase option agreements with households to 36-month lease-purchase agreements, convert the home-buyer project to a rental project, or reimburse its Program more than $843,000 from non-Federal funds; (2) convert home-buyer projects to rental projects if it can support that the homes meet property standards or reimburse its Program more than $607,000 from non-Federal funds; (3) reimburse its treasury account nearly $164,000 from non-Federal funds; (4) reimburse its Program nearly $406,000; (5) reimburse its Program nearly $26,000 from non-Federal funds or reprogram the nearly $26,000 from Program organization reserve funds to Program entitlement or subrecipient funds; (6) decommit more than $94,000 in Program funds; (7) reimburse its Program nearly $112,000 from non-Federal funds or reprogram the nearly $112,000 from homeowner and/or acquisition-only activity costs to administrative costs; ( provide supporting documentation or reimburse its treasury account nearly $65,000 from non-Federal funds; (9) reimburse its treasury account nearly $14,000 from non-Federal funds or reprogram nearly $14,000 to the appropriate project; (10) revise Program accomplishments in HUD's System as appropriate; and (11) implement adequate procedures and controls to address the findings cited in this audit report.
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Date Issued: September 30, 2009
Audit Report No.: 2009-CH-1020
File Size: 830.06KB
Title: The City of Flint, Michigan, Lacked Adequate Controls over Its Commitment and Disbursement of HOME Investment Partnerships Program Funds
The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the City of Flint's (City) HOME Investment Partnerships Program (Program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the City based upon our analysis of risk factors relating to Program grantees in Region V's jurisdiction and a citizen complaint to our office. Our audit objectives were to determine whether the City effectively committed and disbursed Program funds and followed HUD's requirements.
The City did not effectively commit and disburse Program funds. It inappropriately reported in HUD's Integrated Disbursement and Information System (System) at least $2.5 million in Program funds as subgrants, did not cancel subgrants in HUD's System totaling $400,000 in Program funds, did not reduce a subgrant in HUD's System by nearly $1,000 in Program funds, and could not provide written agreements supporting nearly $141,000 of subgrants in HUD's System. As a result, the City must commit nearly $870,000 in Program funds for eligible subgrants and/or activities by September 30, 2009.
The City also inappropriately drew down and disbursed more than $1 million in Program funds that were not used for eligible Program costs for more than 15 days after the City drew down the Program funds from its HOME trust fund treasury account (treasury account) and/or HUD's five-year disbursement deadlines as of July 31, 2007, and June 30, 2008. As a result of the inappropriate draw downs and disbursements, the City avoided not meeting HUD's five-year disbursement deadlines and losing more than $499,000 in Program funds.
We recommend that the Director of HUD's Detroit Office of Community Planning and Development reduce the City's line of credit in its treasury account by nearly $680,000 for the Program funds that the City did not appropriately commit by HUD's 24-month commitment deadline and drawdown and disburse by HUD's five-year disbursement deadlines. We also recommend that the Director require the City to cancel incorrect subgrants in HUD's System totaling more than $1.5 million in Program funds, provide written agreements supporting subgrants or decommit nearly $141,000 of Program funds in HUD's System, reduce subgrants by more than $30,000 in Program funds, and implement adequate procedures and controls to address the findings cited in this audit report. These procedures and controls should help ensure that Program funds are committed and disbursed in accordance with federal requirements and the City does not lose more than $730,000 in Program funds over the next month. |
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Wed Mar 16, 2011 2:50 pm |
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untanglingwebs
El Supremo
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saw the council meeting on tv. Eason says this is a third audit that has not been released yet and they are trying to keep the repayment down to between $700,000 to $800,000.
HUD repayments must be made from non federal sources. Can anyone say General Fund. Neeley asked for documentation of just how much is owing to HUD.
Eason also said that both HUD and the OIG (Office of Inspector General) are carefully monitoring the Neighborhood Stabilization funds. This was after they were told by HUD that they did not have the experience, capability or staff to handle these programs by themselves.
Council was notified that Walling had made Jackie Foster an appointee and had given her an old postion that had not been filled for years. Eason promised council that she would be 100% grant funded so her receiving $75,000 plus full benefits and 401 k would not come out of the general fund. Freeman questioned why she was being made pemanent when her funding was the NSP grant.
There is one problem with this appointment. Brown eliminated any Williamson appointee who was an appointee in a position not approved by council. I am told that this position was never held by an appointee before, not even when Richard King held this position. That means she is an illegal appointee as this is not an appointed position. This is the same situation that an appointed secretary to the City manager was in. The position was old and was always an exempt position. But it was not an appointed position approved by council so was therefore illegal!
Last edited by untanglingwebs on Sun Mar 20, 2011 7:39 pm; edited 2 times in total |
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Sun Mar 20, 2011 3:52 pm |
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Dave Starr
F L I N T O I D
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| Since when did doing something illegal, or in violation of the charter, bother anyone in the administration or the council? They don't care; if caught, the taxpayers pay the financial penalty, not them. I'm amazed that there are still people around that think politicians actually care about their constituents. |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Sun Mar 20, 2011 5:04 pm |
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untanglingwebs
El Supremo
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These incompetant staff personnel have been on the job for over a year and suddenly the department head realizes they need training! Why is she afraid to name the company that is receiving the money and wheere is council? Don't tell me it is true that kate Fields is involved?
Flint City Council approves employee training hoping to avoid additional federal penalties
Published: Monday, April 11, 2011, 8:45 PM
By Kristin Longley | Flint Journal The Flint Journal
FLINT, Michigan — City officials are hoping some employee training will help Flint avoid additional financial penalties in future years for mismanagement of its federal housing program.
The Flint City Council tonight approved spending $7,000 for the city’s community and economic development employees to get training on how to use the federal government’s reporting system for grant-funded housing projects.
The training comes as the city awaits issuance of a federal audit report that is expected to show the city poorly managed the housing program. It would be the third such report in three years.
Based on the draft audit report, officials have predicted the city could have $700,000 or more subtracted from future grant awards because of the mistakes. The city won’t know for sure until the final report is issued.
“(The system) is quite complicated — that’s why we need an expert to come in and train staff adequately,” said Wendy Johnson, director of the city’s Department of Community and Economic Development.
The system helps the U.S. Department of Housing and Urban Development track how local communities spend their federal grant dollars. The city has come under fire in the past for not using the system correctly.
Sometimes projects reported in the system by city employees have not been verifiable, Johnson said. Other times, projects were reported in the system more than once, she said.
The training will be done by the company Community Development Experts, according to information provided to the council.
“We are very much trying to get on top of these historical, long-standing problems with the department,” she said. “We are getting on top of them slowly but surely.”
justicesearc April 11, 2011 at 8:50PM
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Don't you think training should start when you get a grant - not when they are taking the money away?
m8znblu April 11, 2011 at 8:58PM
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Maybe it's all the drugs
2010Flint April 11, 2011 at 9:53PM
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Definitely time for a state takeover. The problem isn't nor has it ever been a reporting issue. How can work that has not been done or was done unsatisfactorily be a reporting problem. HUD paid Flint to repair broken windows, drains, furnaces, elevators, etc., etc., etc., and Flint took the money, reported to the Feds that they did the work for which they were paid, but the fact is the windows, drains, furnaces, etc., were not repaired. Sounds like the "training" is really going to be coaching employees how to try to fool the Feds. With 12% unemployment, I am sure you could hire able, willing people to do the job properly.
Inappropriate? Alert us.Reply Post new
patman April 11, 2011 at 10:56PM
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What kind of training are Eason an the HR lady going to do? Tell them not to buy crack using city trucks. Instead of hiring crackheads and relatives of the Eason and the HR lady, try something new like maybe people who are qualified(HR lady know what they are doing). 2010Flint you can't blame Walling, we had a stupid hillbilly who the knuckle dragger voted for. We had 3 other Mayors who big concern was fill their pockets and get relatives hired. Yes their people who are willing to work. There are poeple who are qualified. Just becauyse they can't make aliving at selling dope does not mean the HR lady should hire them. Where is the pride. Not in with Eason or thge HR lady.
doinit4me April 11, 2011 at 11:57PM
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What is the formal name of the company doing the training? They are not listed, as named, in Google. Just wondering whose relative or baby mama/daddy owns it or is a salesmen or stands to gain something. I used to think I was cynical but after following "Kwame gate" in Detroit nothing would surprise me anymore.
I don't know Ms. Johnson but shouldn't the director of a department be qualified to train employees on how to use a reporting system? If not then why not send only her then she could train the other employees under her supervision and save several thousand dollars?
In
Vocal_Chick April 12, 2011 at 7:03AM
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Patman, you are exactly right about hiring people who are qualified. doinit4me, Ms. Johnson needs the training along with just about every other person in that department except the FEW city employees who were there before Ms. Johnson, Ms. Atkinson, etc. The employees that know what is going on and how do to do the work have been shipped off to other departments or put in areas so far removed from the DCED office that they couldn't help anyway. The new dept. head(s) in DCED absolutely do not know what they are doing and that is really scary.
vegasbound2011 April 12, 2011 at 7:58AM
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all they are doing is making debt bigger spending money they dont have it all adds up |
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Tue Apr 12, 2011 7:33 am |
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untanglingwebs
El Supremo
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| The may 2011 monitoring report (not another audit) confirms that HUD may require repayment of $700,000 or more. |
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Sun Jul 24, 2011 4:25 pm |
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Adam
F L I N T O I D
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quote:
Dave Starr schreef:
Since when did doing something illegal, or in violation of the charter, bother anyone in the administration or the council? They don't care; if caught, the taxpayers pay the financial penalty, not them. I'm amazed that there are still people around that think politicians actually care about their constituents.
Master Plan? Chief Planner? Did we even follow the old charter before this "new" one was ratified and ignored. |
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Adam
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Mysearchisover.com
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Sun Jul 24, 2011 6:23 pm |
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liontamer
F L I N T O I D
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| Untanglingwebs...what do you know about the Flint housisng program where they will build homes for $170,000 and sell them for $50K to $70K? Is this part of the HUD program? |
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Mon Jul 25, 2011 3:23 pm |
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untanglingwebs
El Supremo
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Mon Jul 25, 2011 6:53 pm |
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liontamer
F L I N T O I D
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Thanks untanglingwebs....Smith Village is a disaster waiting to happen. The buyers will have absolutely no equity, sweat or otherwise, in one of thes homes. Price point under $70K with a "soft second mortage and down payment assistance". There is nothing mentioned in the docs that I saw that said anything about estimated cosst of construction.
Anytime a home owner has nothing invested in the home....they have nothing to lose so they live there rent free for as long as they can and then abandon the home. It is so predictable....and shameful to waste taxpayer dollars just to get people to repopulate Flint. |
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Mon Jul 25, 2011 10:50 pm |
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untanglingwebs
El Supremo
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Eason announced after the initial proposal that these purchasers would receive a $25,000 assistance towards the homes as the homes had not been built during the Renaissance Zone designation when University Park residents got their tax incentives. University Park purchasers paid full market value for their homes.
I believe the cost of these homes all exceed $200,000. |
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Wed Jul 27, 2011 12:22 am |
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Dave Starr
F L I N T O I D
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| That's the amount the contractor will receive for building each house. What will the actual cost be? |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Wed Jul 27, 2011 7:39 am |
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untanglingwebs
El Supremo
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| EASON KEPT ANNOUNCING REPAYMENTS AND INVESTIGATIONS TO COUNCIL WHILE HE AND WALLING CONTINUED ALONG THE SAME PATH. |
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Sun May 06, 2012 8:57 am |
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untanglingwebs
El Supremo
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| More repayments on the 2011 and the 2012 HUD monitoring reports. has Flint finally gotten on HUd's last nerve? |
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Fri Jul 20, 2012 7:22 pm |
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