HUD Audit finds $1.45 MILLION dollar discrepancy with City of Ft. Worth's housing projects

Two projects mentioned were Victory Art Center (Southside) & Texas Housing & Economic Resource project (Southeast D8). Problem? Defunct/bankrupt projects, corrupt politicians, poor planning, oh and Affordable Housing requirements not met. And our politicians wonder why we question their decisions & honesty?
Below is a great example of why we should pay closer attention to what they do, what they say, how they vote, etc. It's time to bring some tax payer watchdogs to the City Council table in Ft. Worth, Texas. Elect Suzette for Council http://www.suzetteforcouncil.com/ .
Donate here: http://www.suzetteforcouncil.com/donate.html

Here's the explanation according to CFW:

COUNCIL ACTION: Approved on 12/16/2008 DATE: 12/16/2008
REFERENCE NO.: G-16403LOG NAME:17 ESCROW AMEND
CODE: G
TYPE: NON-CONSENT
PUBLIC HEARING: NO
SUBJECT: Authorize Use of Funds from the Custodial Account Established by the Custodial Agreement with Wells Fargo, N.A., for Resolution of Audit Findings from the United States Department of Housing and Urban Development
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize use of funds from the Custodial Account created by a Custodial Agreement executed with Wells Fargo Bank, N.A., on August 7, 2007, City Secretary Contract No. 35607, to resolve any and all audit findings from the United States Department of Housing and Urban Development;
2. Authorize the City Manager or his designee to execute any related legal documents with the United States Department of Housing and Urban Development and Wells Fargo, N.A., regarding payments to resolve audit findings from the United States Department of Housing and Urban Development; and
3. Authorize the City Manager or his designee to release funds from the custodial account up to the amount of $1,452,675.00 to resolve audit findings from the United States Department of Housing and Urban Development.

DISCUSSION:
In 2004, the United States Department of Housing and Urban Development (HUD) conducted a financial management review of the City’s grant-funded programs. This review resulted in an audit finding with questioned costs of $1,452,675.00 which could not immediately be resolved. As a result the City retained the services of the accounting firm Weaver Tidwell to complete an investigation and reconciliation of these questioned costs. To resolve the outstanding HUD findings, City Council in May 2007, (M&C G-15737) authorized creation of a custodial account at Wells Fargo Bank, N.A., in the amount of the questioned costs. These funds were to be held until HUD had reviewed the results of the Weaver Tidwell reconciliation at which time any costs that were deemed ineligible would be returned to the City’s Line of Credit for HUD grants. HUD has completed its review and to date has authorized the City to draw $266,190.00 of the $1.4 million in questioned costs. The overall repayment could be up to $440,731.00.Subsequent to the 2004 review HUD conducted an Affordable Housing monitoring review in February 2007, and a Comprehensive Monitoring Review in March 2007. These reviews resulted in findings of which certain ones can only be resolved through repayment of funds to the City’s Line of Credit for grant funding. Therefore, staff is recommending that the funds in the Custodial Account be used for resolution for all HUD findings.

FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the custodial account established at Wells Fargo, N.A., for the purposes stated above.

TO Fund/Account/Centers

FROM Fund/Account/Centers
GG01 106000 0000000

$1,452,675.00
Submitted for City Manager's Office by: Tom Higgins (6140)
Originating Department Head: Jay Chapa (6192)
Additional Information Contact: Jerome Walker (7537) Barbara Asbury (7331)

http://www.fortworthgov.org/council_packet/mc_review.asp?ID=10897&councildate=12/16/2008

http://www.fortworthgov.org/