Tuesday, September 12, 2006

Cincinnati Empowerment Corporation Audit

The last City Manager released a report concerning the finances of the Cincinnati Empowerment Corporation. You can view that report and my take on it here. Check it out, because the last City Manager had more detail than this routine audit.

When I looked at the David Rager’s report, I was astounded that 59% of the money allocated to the CEC never made it out of Harold Cleveland’s office. Three out of every five dollars went to pay administrative expenses. It was outrageous.

Well tonight I got an email attachment of the recently released audit of the Cincinnati Empowerment Corporation for year ending September 30, 2005 (their fiscal year end).
Sorry for the poor quality image scan (nothing I can do to make that clear).

The results were even worse than I expected. When I got a looked at the Statement of Activities and Changes in Net Assets, one thing caught my eye.


Program Expenses: $520,208, 32%
Management & General: $1,084,891 68%
Total Expenses: $1,605,099

It turns out that 68% of the funds that are allocated by HUD to the Cincinnati Empowerment Zone went to administrative expenses. They just paid a million dollars in administration costs to administrate a program that had a budget of half a million dollars.

Over two dollars out of every three dollars given to the CEC were spent on administrative expenses for the year.

If that isn’t enough to shut down the program, I am not sure what is.

You don’t have to look for fraud or criminal activity at this point. Those numbers spell incompetence and fiscal irresponsibility.

The sad thing is that no one is accountable. Who do you complain to? Who has the balls to try and shut this baby down? Who is going to fight that fight?

The funding for the Cincinnati Empowerment Zone comes from the Federal Government, but the oversight for those funds lies directly with the City of Cincinnati. The city approves all financial disbursements. That is how they were able to shut the money down in the first place. In that sense, this isn’t a federal program but a local one. Those funds are considered Federal “flow through” funds. The Feds may pay the bill, but the burden of custodianship is on our City. The last HUD audit was critical of the city’s oversight. What a surprise.

Do you know what our City did when they saw these outrageous numbers? One would think that people would be plenty pissed off, but in fact their reaction was just the opposite.

Upon reading these numbers, the new City Manager (appointed by Mallory) just restored full funding to the Cincinnati Empowerment Corporation.

Another day in paradise.


Anonymous Anonymous said...

Dear Mr. Dallory,
Back from vacation so soon?
Did you share a Florida condo with Junebug?
EZ Board meets tonight @ 5:30.
If many good citizens ask about the 68% expense ratio, it might raise a few eyebrows.
Way back in July, many citizens asked some interesting questions. guess what.....today is the day they promised answers. We shall see.
Korte was at the July EZ board meeting. Any bets on the media attendance tonight?
Will Mr. and Mrs. Junebug show up, or are they out of town?
I expect a full Truth Squad report tomorrow.

5:45 AM  
Anonymous Wolverine JR said...

Answers won't be forthcoming and any attorneys present will have socks with them..........to put in Cleveland, and anyone elses, mouth to keep them quiet. Seitz on site would be a surefire way of knowing whether or not the heat is still on enough for a few more logs to be thrown on. But writing a letter or calling HUD after the meeting to register comments would be a blister of another kind. I'll try and find an e-mail. WHAT Time AND PLACE FOR THE EZ MEETING???? 5:30
but what is the address. Can I wear my farmer's bibs? Do I sign in and show ID? Are these meetings taped?

Honorable Alphonso Jackson
U.S. Department of Housing and Urban Development
451 7th Street S.W., Washington, DC 20410
Telephone: (202) 708-1112 TTY: (202) 708-1455

I have a thought for a fund raiser for HALE YES!!! (Dad's not too keen on one of us thinking like this.....seems the noise might bother him.) Better than a kazoo or slide whistle. More fun than a barrel of Dales. Able to make loud noise with a single breath calling out the silent honker to openly debate.



The sounds are great, but the price is atrocious. We could practice our own MallorD sounds
(I know, it sounds like malady, and irony and famous last schnames of inflamous fathers being what they are.........ya gotta live with it)

So if we can't sell them, we can do our own......know what is said.....if it walks like a duck, quacks like a duck, it must be a


7:23 AM  
Anonymous Mina said...

What is the Doughboy smoking? What in the fresh hell does it take to shut this gravy train down?! I'm looking for a job right now, and if I didn't have a conscience, I'd apply at EZ, but then how would I sleep at night? The empowerment zone desperately needs this funding, and these idiots are in plain sight robbing the government blind! Whoever goes to the meeting this evening, please post some info. This is ridiculous.

8:49 AM  
Anonymous Anonymous said...

anon 6:45,
I'll be there asking questions.
Thanx 4 the reminder.

10:27 AM  
Anonymous Anonymous said...

Wolverine Jr asks:
but what is the address. Can I wear my farmer's bibs? Do I sign in and show ID? Are these meetings taped?

Wednesday Sept. 13th 5:30 PM @ Theodore Berry Center @ 880 W. Court St. (between Linn and I-75)
You May wear your farmer bibs (perfect for feeding pigs at the trough).
There is a sign in sheet (requirer if you want your 2 minutes to question or comment).
I think the meetings have audio only tape.
Wolverine Jr., please come and bring your friends.
Ask about the 68% admin. ratio.
Ask about Cathy Norris's $40,000 project @ $120/hr.
Ask about Mallory center (NOT in EZ) getting hundreds of thousands/yr.

11:11 AM  
Anonymous Carstairs said...

Other burning questions:

1.)Was Orlinda on the taxpayer timeclock while she sat in attendance & in the reception line at Howdy's trial? If my memory serves me correctly, she was NOT subpoenaed to testify. She was taking up a seat. I saw her there on 3 days - one day of testimony, closing arguments & the verdict. Betcha she shows up at the Sentencing.

Speaking of Orlinda, this might be the time to ask how the EZ handles payroll deductions. You remember Orlinda failed to file City Returns & make tax payments.

2.) Exactly what were the deficiencies that were found in the audit? How were they corrected? What's in place to ensure this doesn't occur again?

3.) What are they doing to reduce that 68% of pork in their their pockets (sorry about the bad pun)?

4.) What is this outfit going to do about collecting bad debt & what are they going to do about the loan dealing in the future?

5.) Are their public records kept in a binder at the front desk so the funding public can walk in at ANY TIME during business hours & look over this stuff without being disturbed in any manner?

You know, I was going with Kim tonite, but I think I'd better show up at this hootnanny & ask questions. Kim will forgive me.

This is absolute baloney, friends. I want to say other things, but we're keeping it clean & of high intellect here. This is a disgrace. Absolutely pathetic.

Depending upon the answers we get, a trip to City Hall might be in order. Also, copies of our questions & notes need to go to Uncle Alphonso down at that there HUD place. Yes indeedy. We need to get Uncle Al in our back pocket, keep him comfy & happy.

City Hall has their Uncle Miltie. We're going big. We're getting Uncle Al.

This is a damnable outrage. A bunch of incompetents just sitting around on swish office furniture & sucking the public dry. I'm with Mina. Although I have work, it's time to change careers. Sit on my tookus & collect a fat, juicy paycheck & don't do squat. Only in Cincinnati, friends.

11:29 AM  
Anonymous Anonymous said...

Hello All,
Per Greg Korte, H Cleveland called and cancelled today's EZ Board Meeting.
The dude's afraid of a the Truth Squad people that were going to demand answers.
I thought the by-laws mandated MONTHLY MEETINGS!
The EZ is breaking their mandated rules yet again.

3:51 PM  
Anonymous Anonymous said...

Cleveland promised answers in September. New meeting Date is Oct. 1st.

3:53 PM  
Anonymous Mina said...

Man, this is outrageous, promise answers at the next meeting and just cancel it if the heat is on. I'd love to know what time he cancelled it. I guess it conflicted with his law school classes(lol). I have got to get a job with this outfit. I can dodge people and not answer questions and cancel meetings as good as the next guy!

4:02 PM  
Anonymous Carstairs said...

Whee Doggies! As Blanchard sagely advised, "The spotlight is on & the roaches are running."

Perhaps our Uncle Al would like to know about this. Email him at
or, his direct dial is 202-708-0417.

I cruised by on my way to the Hale YES car caravan, talked with a lady & she told me the meeting was cancelled. She took a pic of the meeting notice taped to the door.

These comedians can run, but they cannot hide. They received questions in advance of this meeting & had ample time to assemble answers, if everything is now on the up & up.

We don't owe them questions in advance. They don't do that do-si-do over at City Hall, & they're on taxpayer money. I don't need these EZ charlatans getting all uppity, thinking they're going to get questions in advance. Indeed.

Did they postpone this meeting because Junebug & his woman are on vaca, according to their Messenger Boy? Did somebody die? Somebody get married? Is Howdy not feeling well over in the jail? If Cleveland's law school classes are presenting a conflict, I have a quick solution. Go or get off the pot. Either you're going to school & you're going to run a loan company. Simple decision. Or, move the meeting date & time.

Well, Uncle Miltie Dohoney made a major mistake right out of the gate. This boy certainly deserves a ringing phone & Emails.

Truth Squad, this proves they've got their eyes on this blog. Yes indeedy. Without a doubt. Wonder how much they're paying the stump legged dwarf to feed them intell.

7:55 PM  
Anonymous Anonymous said...

Dear Truth Squad,
We don't need no stinkin board meeting!
I don't need to answer your stinkin' questions.
My bosses Len Garrett and Junebug say I'm doin a swell job.....so kiss my sweet butt!....just don't be puttin no pencils there.

Your well paid piggie,
Harold Cleveland

9:26 PM  

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