Special City Council Session Tuesday

The Detroit City Council has scheduled a SPECIAL SESSION FOR Tuesday, August 14, 2012 at 9:45 a.m. in the Committee of the Whole Room, 13th Floor Coleman A. Young Municipal Center, to consider resolution to convene a Closed session Tuesday, August 14, 2012 at 10:00 a.m. with attorneys from the Research & Analysis Division and the City of Detroit Law Department.

The purpose of the meeting will include:

1. Discussing two (2) privileged and confidential communications submitted by the Law Department dated August 7, 2012.
   
   • Whether Any Charter Violation Has Occurred, Where City Funds (Both General and Grant), Property, and Equipment That Are Budgeted and Designated for Use By the Detroit Workforce Development Department Are Utilized by a Nonprofit Corporation Without the Approval of City Council and,
   • If So, What Are the Appropriate Remedies Under the 2012 Detroit City Charter and Whether Any Charter Violation Has Occurred, Where City Funds (Both General and Grant), Property, and Equipment That Are Budgeted and Designated for Use By the Department of Health and Wellness Promotion Are Utilized by a Nonprofit Corporation Without the Approval of City Council and, If So, What Are the Appropriate Remedies Under the 2012 Detroit City Charter.

This marks further investigation into the Institute for Population Health, formed in February 2012 which is taking over operations formerly performed through the Detroit Department of Human Services. Michigan Department of Human Services has worked with the Mayor to de-designate DDHS as the administrator of over $15 million as the Community Action Agency funded through a federal Community Services Block Grant.

From the March 2, 2012 article at Nonprofit Quarterly:

The state and the FBI are already digging into the city’s Human Services Department’s alleged misspending of public dollars. In recent years, the agency had to give back some $7 million in Head Start funds because of declining enrollments despite an ever-increasing Head Start waiting list. The city already returned $9.2 million in weatherization funds last year because the city missed spending deadlines. The state also charges the city with having billed the state $600,000 for a nonexistent workforce development program. Mayor David Bing then laid off the department’s entire weatherization staff. The CSBG funds—$6 million—go to services that help the poor such as homeless shelter programs and food banks.

The state’s position is to transfer responsibility for Detroit’s weatherization and CSBG programs to an independent nonprofit that would run the programs. Oddly enough, Mayor Bing has agreed to work with the state in picking a nonprofit to receive and administer the funds. Some on the City Council were leaning lukewarmly in that direction too, until word leaked out that the state had already talked to the Wayne Metropolitan Community Action Agency in suburban Wyandotte to take over at least the weatherization program if not that and CSBG together. That has thrown a monkey wrench into the plan.

CSBG review by City Council

Detroit City Council will hold a closed session today to discuss administration of the Community Services Block Grant Program.

Click to view RAW video

Michigan Department of Human Services had Stephanie Comai, Acting Director of Bureau Economic Activity and Opportunity conduct a public hearing yesterday to form determination on the intent of de-designating Detroit Department of Human Services as the administrator for the CSBG.

Department of Human Services on Trial

A public hearing to consider the de-designation of Detroit's Department of Human Services will be held today from 10am until noon in Michigan Court of Appeals 1st District. We ask the public to appear and fight for the right to have this department based in Detroit with employees from Detroit. Union jobs for Detroiters through Association of Professional and Technical Employees are on the line and being outsourced to the suburbs.

Funding from Michigan DHS was suspended to Detroit DHS since October 2011. Residents were harmed by receiving no utility assistance, incomplete weatherization services, and all other emergency needs including for: tax, foreclosure, rent evictions, burn outs.

Location: 14th floor, Cadillac Building, 3020 W Grand Blvd, Suite 14-300, Detroit MI 48202
When: Monday, April 23, 2012 from 10am - noon

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Federal requirements for de-designation of a Community Action Agency 

Under Section 676(c) of the CSBG Act, there are two major causes for changing the proportional share of funding awarded to eligible entities. 

• Statewide Redistribution of Funds - The first, and most common, cause for changing the proportional share of funding to eligible entities is not related to performance deficiencies of a specific organization.   Under Section 676(c)(1)(A) of the CSBG Act, States may implement a Statewide redistribution of funds to respond to the results of the most recently available census data or other appropriate data, the designation of a new eligible entity , or severe economic dislocation.  Statewide changes to the distribution formulas require a public hearing.  The CSBG Act requires at least one legislative hearing every three years in conjunction with the development of the State plan and States may utilize this legislative hearing to consider changes to distribution formulas.  States may also conduct special administrative hearings in response to specific demographic or economic changes, or the designation of a new eligible entity to address an unserved area. 
• Failure to Comply with State Plan, Standard or Requirement - The second cause for reducing funding or terminating eligibility for CSBG funding is related to deficiencies in the activities of an individual eligible entity.  Under Sections 676(c)(1)(B) and 676(c)(2) of the CSBG Act, States may reduce funding or terminate eligibility for CSBG funding based on an eligible entity’s failure to comply with the terms of an agreement or a State plan, or to meet a State requirement, to provide services, or to meet appropriate standards, goals, and other requirements established by the State, including performance objectives.

If a State determines that an eligible entity should be allowed to develop and implement a quality improvement plan, the CSBG Act requires the State to allow the eligible entity to develop and implement their plan within 60 days after being informed of a deficiency.  States are encouraged to review quality improvement plans and issue decisions on whether the plans are approved as quickly as possible within the 30-day time frame.  The quality improvement plan should identify actions that will be taken to correct the deficiency within a reasonable period of time as determined by the State.  States may exercise discretion based on the specific circumstances.

If a quality improvement plan is allowed, the State must review and issue a decision on whether to approve the plan not later than 30 days after receiving the plan from an eligible entity.  If the State does not accept the plan, the State must specify the reasons why the proposed plan cannot be approved.

Section 678C(b) of the CSBG Act specifies that a review by the Department of Health and Human Services shall be completed no later than 90 days after the Department receives from the State all necessary documentation relating to the determination to terminate the designation or reduce the funding.  If the review is not completed within 90 days, the Act specifies that the determination of the State shall become final at the end of the 90th day. 

It is also the expectation of OCS that State CSBG Lead Agencies will thoroughly investigate any instances of “whistleblower” complaints or allegations of fraud or abuse of CSBG funds or funds from closely-related programs.  In any instances in which complaints or allegations of fraud are considered credible and raise significant “red flags,” OCS should be informed of findings and may assist with additional compliance review or referral to appropriate investigative authorities. 

Note: Allegations of fraud or abuse may also be referred directly to the HHS hotline maintained by the Office of the Inspector General using the following contact information: 1-800-HHS-TIPS (1-800-447-8477) http://oig.hhs.gov/fraud/hotline/ 

[reference of exceprts above]

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Additional information about Michigan DHS

Michigan Department of Human Services Director Maura Corrigan was ruled to have exceeded authority in ending welfare rights for 11,000 families. These families are protected under state law from the federal five year limit on benefits.

This effort to de-desigate Detroit Department of Human Services stands in collaboration with the passing by City Council, and the Mayor of the Financial Stability Agreement (FSA). The intent is to move the functions of the Department of Human Services to Wyandotte based Wayne-Metropolitan Community Action Agency.