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March 07, 2012

Government Spends $11 Million to Clothe Two People

The Department of Human Services granted $11 million dollars to Detroit to provide business attire to job seekers. Two people were helped.

The audit, conducted by the city's auditor general for the period from July 2009 to September 2011, found the department failed to control the operations and finances of a boutique that was to provide the clothes.

The department did not safeguard grant funds or create an inventory for the clothing, the audit found.

Among the most telling findings, which will be discussed today during a City Council committee meeting, is that a third-party contractor advanced $148,000 to a downtown Detroit clothing store and opened an account, but did not include the city on the account.

. . .

The audit is the latest finding against the city's Department of Human Services, which has been under scrutiny for chronic mismanagement of federal funds. Many of the department's leaders have departed since an internal investigation was launched last year, including an inquiry into the purchase of $182,000 worth of high-end furniture for a department office. In 2009, the department received more than $11 million in stimulus funding and created a service center.

That's okay, though, because good intentions are what really matters. According to the audit, the DHS grant was supposed to help 400 people. You see, it's just that the funds were mismanaged.

400 people. That comes out to $27,500.00 per person. See, it was a good plan. It was just mismanaged.

Nothing criminal here. Move along.

Added: @CamEdwards tweets: "To be fair, they looked fabulous afterwards."

Follow me on Twitter.


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posted by rdbrewer at 11:52 AM

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