by German Lopez
Hired organizations did not properly comply with federal stimulus requirements
Ohio’s inspector general released a report today
criticizing the Ohio Department of Job and Family Services (ODJFS) for
improperly reimbursing federal stimulus funds to hired organizations
that did not follow rules.
In a statement, Inspector General Randall Meyer’s office
said ODJFS “failed to adequately oversee federal grant funds applied to
the Constructing Futures jobs training initiative for Central Ohio.”
The report released by Meyer’s office today, which focused
on stimulus programs in central Ohio, outlined a few instances of ODJFS
failing to oversee proper standards. In total, the department, which was
put in charge of carrying out job training funds in Ohio from the
stimulus package President Barack Obama signed into law in 2009, wrongly
reimbursed companies it hired for $51,700.81.
In central Ohio, ODJFS hired two organizations to carry
out the job training program, or Workforce Investment Act: Associated
Builders and Contractors, Inc. (ABC) and Construction Trades Networks
(CTN). At ABC, the inspector general found limited problems with faulty
reimbursements involving a newspaper subscription, travel and mileage
totaling less than $100. The money was not accounted for as a
questionable cost since it was so small.
However, at CTN, the faulty reimbursements piled up. The
organization was reimbursed $560.61 for phone calls made prior to
being hired as part of the federal grant. It was also reimbursed
$1,613.62 for its invoices, even though documentation was not
provided to link phone calls as necessary to the grant program.
Under the federal stimulus rules, CTN was required to
provide 25 percent of its own funds for the program. CTN planned on
using $91,800 of in-kind funds — payment that isn’t cash — by paying for
trainee wages. The organization paid $60,927.70 by the end of the grant
period, and the organization was reimbursed for $49,526.64 by ODJFS, even though
the charges were supposed to be carried by CTN. The inspector general requested CTN give the money back to ODJFS.
When the inspector general contacted the organization to
explain the findings, CTN attributed the requests for faulty
reimbursements to confusion caused by multiple administrative changes at
“In addition, monitoring visits by ODJFS were not
conducted until after the grant period expired, even though the
partnerships were told the visits would occur as grant activities were
underway,” the report said.
Meyer’s office concluded ODJFS should review the
questioned costs, work to keep consistent guidelines through
administrative changes and monitor grant funds during the
The full inspector general report can be found here.
A report was released for northwestern Ohio was released
on May 10, and it also found wrongdoing. It can be found here. A report
for stimulus programs in southwestern Ohio will be released later.ODJFS could not be immediately provide comment on the report. This story will be updated if comments become available.UPDATE (3:28 P.M.): Benjamin Johnson, spokesperson for ODJFS, provided a comment shortly after this story was published.“As the report mentions, these were expenditures by local entities, not by the Ohio Department of Jobs and Family Services,” he says. “We appreciate the inspector general bringing this to our attention, and we'll work to resolve the matter.”
0 Comments · Wednesday, September 5, 2012
When the stimulus package passed in 2009,
the federal government sent out funds that worked to prevent
homelessness. Local organization Strategies to End Homelessness used
some of this funding to help thousands of at-risk people and those who
are already homeless. But that funding will soon come to an end because
the stimulus package was only meant to be a temporary jolt to deal with
the Great Recession.
0 Comments · Wednesday, April 15, 2009
Is your company going to be receiving stimulus money? Will you be partnering with the state or local government to build something for your community? What, you don’t know how to become part of the stimulus program? You don’t have connections with legislators to get your idea funded? You’re not part of the club? State Sen. Eric Kearney (D-Avondale) feels your pain.
Cities, Hamilton County line up for federal stimulus funds
0 Comments · Wednesday, March 4, 2009
Now that Congress has passed a $787 billion economic stimulus package sought by President Obama, it remains to be decided how the local portion of that money will be spent. One thing is for sure, though: There's no shortage of ideas about what to do with it.