Don't Take Anything For Granted
<b>The Grants of a Conflicted Board of Insiders</b><br>
Sometimes conflicts can cause a city or county serious
problems with such things as state and federal grants. This is what has
happened in <a href="http://www.brockton.ma.us/Default1.aspx" target="”_blank”">Brockton,
MA</a> (pop.
94,000), according to <a href="http://www.enterprisenews.com/news/x814065785/Half-of-Brockton-board-ma…; target="”_blank”">an
article
in the <i>Enterprise-News</i></a>.<br>
<br>
The board of the city's redevelopment organization, Building a Better
Brockton (BBB), which oversees state and federal grants, has several
members with direct connections to companies seeking money from BBB.
Those members include two bankers, two local business owners, and the
directors of the local housing authority, health center, business
association, and YMCA. They are expected to resign soon.<br>
<br>
The state Department of Housing and Community Development has withheld
a $1 million grant from BBB. On the same day, the federal Department of
Housing and Urban Development (HUD) rejected a request for a conflict
waiver involving a YMCA grant request in the amount of $600,000.<br>
<br>
From the article, everyone seems clueless about the situation. The
mayor appears to have been perfectly comfortable with having potential grant
recipients decide who the BBB's grant recipients would be. This is true
even after a HUD audit last fall that found possible conflicts and put
into jeopardy a $22 million grant, according to <a href="http://www.boston.com/news/local/massachusetts/articles/2009/10/25/hud_…; target="”_blank”">an
article
in the Boston <i>Globe</i></a>.<br>
<br>
When cities do not take conflicts seriously, it can lead to a great
deal of trouble. Politicians need to think outside the box, the box, in
this context, being the idea of appointing board members who are
powerful community insiders.<br>
<br>
<b>The Abuse of Grants Placed in Special Funds</b><br>
Special funds are a bad idea. Special funds are to misuse of office
what catnip is to cats. Take the Miami-Dade police department's
environmental fund.<br>
<br>
According to <a href="http://www.chicagotribune.com/news/local/fl-miami-dade-green-fund-20100…; target="”_blank”">an
article
in Friday's Miami <i>Herald</i></a>, the fund was created in 2000 to
pool together federal, state, and local resources intended to combat
environmental crime. The fund had three big problems: (i) hardly
anyone knew about it, (ii) only two people had authority over it, and
(iii) there was a lot of money in it.<br>
<br>
What do people with authority over a secret fund intended for a purpose
not central to their department do with the money? "Purchase cars
for top commanders, high-tech surveillance equipment,
DirecTV subscriptions, iPhones, office furniture, boats and pricey
laptop computers." In short, Christmas time!<br>
<br>
Ten SUVs were purchased for the top police officials, and none for
environmental officers.<br>
<br>
As more money went into the fund, fewer environmental arrests were made.<br>
<br>
What is the police department's reaction to all this? First, it says it's
waiting until the audit is complete before officially commenting.
Second, top brass deny that they knew where the stuff came from. Third, the police director until a week ago insists he had the
discretion to use the funds for any law enforcement purpose. Fourth,
give the SUVs to environmental officers now that the top brass can't have them anymore. No one seems to have said what's
going to be done with the flat-screen TVs.<br>
<br>
The county's director of Environmental Resources Management seemed
unashamed not to know how the fund was used. No one seems to be very
curious in Miami-Dade. When the top brass suddenly got brand new
SUVs, when all they needed was police cars, didn't anyone feel he had the
obligation to ask where the money came from?<br>
<br>
If it's truly necessary to set up a special fund, all expenditures
should be reviewed and signed off on by an oversight committee or the
council, and by an auditor/controller, in addition to the department
head. The fund should not be buried in a budget, but highlighted, with
more detail about its expenditures than are provided with respect to expenditures from the general fund. And an
annual fund report should be drafted, justifying all expenditures and
outlining the plan for the following year's use of the fund. The report should be formally accepted by the council, after review by the relevant committee, as well as by the mayor or manager.<br>
<br>
Robert Wechsler<br>
Director of Research-Retired, City Ethics<br>
<br>
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