Greuel Calls For Improved Coordination and Oversight In City’s ARRA Grant Funding Process

Los Angeles City Controller Wendy Greuel released an in-depth review of the City’s processes for applying for and receiving competitive American Recovery and Reinvestment Act (ARRA) grants and revealed the City failed to pursue all eligible funding opportunities.  Specifically, of the $1.3 billion in ARRA grants that Los Angeles sought through 88 competitive applications, the City was only awarded 24 grants, totaling $261 million. Greuel found that the lack of an effective centralized oversight unit to coordinate grant applications among the City’s departments led to various oversights and ultimately reduced Los Angeles’ share of competitive grant funding.

“Our City’s departments work hard to secure all the funding they can for Angelenos, but the City’s decentralized approach meant we missed out on some important opportunities,” said Greuel. “We all know that when we’re going to apply for a job that you do not just stop calling after the interview, you keep following up until you land the job. We need a central group that makes sure that Los Angeles is always persistent when it comes to competitive grant opportunities.”

Examples of funding that were not pursued include:

·Economic Adjustment Assistance Funding from the Department of Commerce and Economic Development Administration – According to the CDD, this grant was not pursued due to departmental capacity issues caused by furloughs and early retirement of staff.

·Investments for Public Works and Economic Development Facilities from the Department of Commerce and Economic Development Administration – According to the CDD, this grant was not pursued due to departmental capacity issues and the need to prioritize the implementation of existing ARRA funded economic development projects through formula grants. 

·Airport Improvement Program Funding from the U.S. Dept of Transportation Federal Aviation Administration – Under this program, there were many different categories such as runway rehabilitation, airfield lighting, signage, etc.Greuel’s audit noted that several recipients were awarded under multiple categories for different projects, yet the City only applied for one category in the amount of $10.8 million and received an award.

The review reveals that LAWA officials applied for the category they felt had the best chance of being funded and did not pursue other categories, though they were in line with the core mission and the City was eligible to apply for additional funding for other critical improvement projects.

Greuel’s audit also revealed that some City departments do not have comprehensive procedures for grant administration.  Since Los Angeles has no formal citywide guidelines, the quality of grant applications varied significantly between City departments. Some, like the Housing Department, have formalized processes and manuals for grant application processes, but many, including LAPD, LAFD and the City Attorney’s Office, rely on just one or two employees to handle grant applications, often in parallel with their other duties.

Greuel also found that the City’s process could be extremely slow; whereas the turnaround for receiving and accepting a grant awarded to the City is typically expected to be 5-6 weeks, most ARRA grants were not accepted by City Council until five months after they were awarded. In particular, one police-training grant was awarded in September 2008, but not finally approved by Council until June of 2010. 

Greuel identified a series of recommendations to help ensure that Los Angeles receives its fair share of federal funds. 

“In these difficult economic times, it is crucial for the City to pool resources and expertise between departments to streamline grant approvals and get the funding in the pipeline. I urge the City Council to establish and empower a Centralized Oversight Unit to make sure that the City does not miss out on accessible federal support.”

Greuel’s recommendations include:

·Establishing and strengthening a Centralized Oversight Unit to oversee the competitive grant application process, in order to maximize the City’s competitive grant awards;

·Ensuring adequate Citywide grant policies are in place so that departments have adequate guidelines to manage their grant administration process and ensure that grant seeking is driven by strategic plans;

·Developing appropriate criteria for grant tracking systems to facilitate monitoring and reporting of competitive grant activities;

·Providing departments with support to maximize the quality of applications submitted to funding agencies;

·Streamlining the formal acceptance process for all grants and proposing revisions to the Grant Ordinance, if determined necessary; and

·Requiring departments to seek and document reasons for grant denials.

To view the complete report, please click here.

Controller Greuel has conducted nearly 50 audits and uncovered more than $125 million that the City has lost to wasteful spending, fraudulent activity, and abuse of City resources.

For more information, log on to the Website of Los Angeles Controller Wendy Greuel: http://controller.lacity.org/index.htm

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