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$150K ‘Business Attire’ Grant Only Aided Two

From an unfazed Associated Press:

Audit: Funds To Help 400 Job Seekers Aided Only 2

March 7, 2012

An audit has found that a portion of an $11 million federal grant intended to provide business attire to 400 low-income job-seekers in Detroit helped only two people.

The audit of the city’s Department of Human Services found the department failed to control the operations and finances of a boutique that was to provide clothes… The city’s auditor general conducted the review for the period from July 2009 to September 2011.

The center, at 1970 Larned, included the Customer Choice Pantry, the New Beginnings Clothing Boutique and a call center that had the capacity to service 60,000 families in need. The boutique was to provide business attire for low-income residents for job interviews.

To receive clothing, residents were required to have a job interview scheduled. According to the audit, the DHS was supposed to help 400 people between October 2010 and September 2011 but instead served only two.

The department is under scrutiny for management of federal funds. The audit says the department didn’t safeguard grant money or create an inventory for the clothing…

Note that we are never told how much of the $11,000,000 dollars went to providing business attire.

But, it turns out, the Michigan Citizen had all of this information and more last month:

Only 2 served by program designed for 400

By Zenobia Jeffries
February 19, 2012

DETROIT — … According to the July 2009-September 2011 audit of DHS, acquired by this paper, the department received $11 million in funding from the Community Service Block Grant/American Reinvestment and Recovery Act of 2009 to help over 60,000 Detroit residents.

DHS’ help was to include a “new service center” for job assistance, a Customer Choice Pantry, a call-center to schedule appointments and the New Beginnings clothing boutique…

The boutique was to service 400 residents within the year. However, only two had been serviced, according to the Office of the Auditor General’s report.

DHS’ New Beginnings Clothing Boutique failed to establish an inventory system, showed an absence of policies and procedures to govern the operations of the boutique and was in non-compliance with the city’s purchasing ordinance and no-bid contracts for vendors.

Without bids, the city hired a personal service contractor who was to secure clothing and then provide the clothing to social services clients

The audit shows DHS improperly handled $148,000 for New Beginnings

The $148,100 was the only transaction amount mentioned in the audit in connection with the clothing store

But even if the figure is only $150,000, that is still a lot of money for clothing just two people. Unless, of course, one of their names is Michelle Obama.

This article was posted by Steve on Wednesday, March 7th, 2012. Comments are currently closed.

4 Responses to “$150K ‘Business Attire’ Grant Only Aided Two”

  1. geronl says:

    Don’t you just love government efficiency?

    The stimulus provided millions of dollars for “weatherizing” houses. There was an area of Washington State where $20 million weatherized about 13 houses and this was typical.

    The money ends up going into crony pockets and some of it is diverted back to politicians, you just know it.

    I say we go RICO on the whole Democrat Party!

  2. bobdog says:

    This money could have been used more effectively by forcing, er, “inducing”, 15 more people to buy Chevy Volts.

  3. Gladius et Scutum says:

    There much, much, more amiss than even the articles suggest. I was curious as to the identity of the organization that facilitated the swindle, so I entered “1970 Lanerd, Detroit, MI” in a couple of different search engines, and found these articles were the only places the address appears. The Wayne County Treasurer indicated that nobody pays property taxes for such an address.

    Familiar with a tactic used by both marxists and the mob, I entered the address into Mapquest,http://www.mapquest.com/ and got the satelite view. Sure enough, the building fronts both Lanerd Street and Jefferson Avenue. And entering the address as 1999 E. Jefferson Avenue takes you to the exact same building. The primary business there is the Regency Hotel, Detroit: http://www.detroitregencyhotel.com/ (formerly: the Comfort Inn). The hotel seemingly does pay taxes http://www.waynecounty.com/treasurer_payonline.htm (enter 1999 Jefferson then select Detroit (01) ) as do several other entities. The most interesting is “Building Future LLC”

    WARNING: Do Not Visit buildingfutures.org! I got a virus at every single site !!! (JS/Agent.EOP). I did discover enough to learn that it is an AIDS activist organization that “builds the futures of AIDS/HIV victims” and it listed its top three funders as federal agencies. (It also explains the ’boutique’ as opposed to ‘apparel’)

    More interesting yet is the physical dimension of the problem. If my logic is sound (and I believe it is), we are to believe that this building http://www.detroitregencyhotel.com/page8.php (upper left photo) houses, in addition to a hotel; a pantry, a boutique, and a “call center cabable of handling calls from 60,000 needy residents”? Also listed on the tax records are a telecommunications firm and a financial advisory firm. The telecommunications firm may be related to the call center. The financial advisory firm may be a culinary school of creative bookeeping.

    If anyone finds the matter of interest, kindly so note, and I will continue to look into it.

    • tranquil.night says:

      I think your instincts are right on. Let me know if you need any help sorting through what you discover in your inquiry. There’s sloppiness up and down their laundering operation. They were immensely over-confident in their popularity and media’s ability to push the kickbacks and cronyism out of sight.

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