Mr. Hobbs explained the department administering the grant was responsible for
ensuring that the information received was signed off on; Finance cut checks
based on the documentation received from the grant administrator.
Commissioner Dunn noted the third paragraph of the same page where it said
grants administered by LHPP should be audited, she wished LHPP to be
removed, and the language should say that all grants received by the City from
2020 to 2025 should be subject to an independent audit. The current language
read as though only grants involving the LHPP should be audited.
She
recommended specific language as follows: Objectives: 1) the audit should
assess adherence to grant agreements, and guidelines; 2) evaluate the
accuracy of financial reporting and document; 3) analyze fund utilization in
relation to program outcome and objectives; 4) evaluate the effectiveness of
fund utilization in achieving specific program outcomes, as outlined in the grant
agreement, including assessment and performance metrics; 5) identify areas of
improvement for best practices.
In terms of deliverables: 1) a detailed audit
report summarizing findings, compliance issues, and best practices; 2)
recommendations for improving fund management, and program effectiveness;
3)
a
follow-up action plan.
Commissioner Dunn said she agreed with
Commissioner Campbell that were clearly some failures, and that there should
be a forensic audit; the audit should be done, not as a punitive measure, but
from a place of discovering to where $1.6 million disappeared. She suggested
that not only should whoever the City hired be a forensic auditor, they should be
an expert in grant management with expertise in managing state, federal, local,
and private foundational dollars.
She believed that if this person had some
process improvement background, whether they came from Kaiser, etc., they
could give the City a detailed report of where the breakdown in the process took
place, looking at best practices of other cities around the nation to see where
opportunities for improvement were for Lauderhill.
Commissioner Dunn
recommended an amendment to the subject resolution, specifically page one of
two of the resolution, the language in the second paragraph was inaccurate, as
the grant was managed by the City’s Grants Division, so she wished the
inaccurate language struck out.
Mayor Grant concurred with her colleagues, stating $1.6 million was
a
significant amount of dollars, and she found the subject situation disheartening,
as she was very connected with the City’s seniors, religious leaders, etc., and
she was well aware of Lauderhill residents struggling to make ends meet,
paying their monthly bills, etc.
Sometimes elected officials felt powerless to
help, as there were no programs through which to help them, and now she
learned that $1.6 million was missing. As the City’s Mayor, it was difficult to be
before the Lauderhill public and not have answers; no member of the dais was
represented in a positive light in the subject situation. Another matter that came
to her attention was that Lauderhill received a letter from the Governor’s Office,
as did many other Florida cities, inquiring about funds were being spent; the City
was again notified of the Governor sending another letter of inquiry in relation to
how grant dollars were spent. She believed the subject resolution and matter of
discussion arose due to the need to find out what the exact situation was, so
she supported the need to have an independent audit. Mayor Grant noted she
did vote on the funding for NSU, and she had many questions at the time the
matter came before the Commission for consideration; she voted on the matter
because of the City’s procurement process, which usually took 15 to 30 days,
and NSU had only five days. NSU was being hired to do research, for which
she was agreeable, as it was not possible to get statistics without research and