Fulton mismanaged millions in social service grants

» To read the full audit report, visit MyAJC.com.

For the second time in recent months, an audit has found Fulton County mismanaged millions of dollars in contracts, exposing taxpayers to possible fraud and waste.

The latest audit found Fulton County officials failed to properly monitor more than $5 million in grants to nonprofit social service agencies, making it difficult to determine whether the money was spent as intended.

The money was supposed to help children, seniors and others with housing, employment and related services. But auditors could not say for sure who benefited or whether the agencies receiving grants were even eligible for the money.

» READ AND COMMENT: View the complete Fulton grant audit here and share your thoughts

The grants report follows two previous audits that found mismanagement involving information technology contracts.

In the wake of the most recent audit, Fulton County Manager Dick Anderson has charged two new administrators with revamping the grants program. Instead of awarding grants to a variety of nonprofits, he wants to identify specific objectives for helping the needy, then target the grants accordingly.

“What are we getting for the dollars we’re giving? What are we trying to accomplish?” Anderson said. “What are clear metrics?”

In their June report, auditors couldn’t tell whether taxpayers are getting their money’s worth from Fulton’s FRESH and human services grant programs.

Last year, the county spent $1.5 million on 50 FRESH grants, which are supposed to pay for various social service programs that evidence has shown to be effective. It spent another $3.6 million on 79 human services grants for various services for senior citizens, children, the disabled and others.

The county’s six-person Office of Grants and Community Partnerships coordinates both. But the audit found that oversight seriously lacking. Among other things, it found:

• Grant recipients must track the number of unduplicated clients served by county grants. But the audit report found several instances in which agencies failed to properly document their clients, making it difficult to determine how many people benefited.

• The grants office failed to properly monitor the agencies receiving public money, making it difficult to know whether the money was spent as intended.

• The office failed to verify data used to evaluate the success of programs receiving public money. Auditors weren't able to determine which agencies were properly documenting their performance.

• The county failed to require agencies to conduct background checks on employees, providing no assurance that people involved in the programs have no criminal record.

• Auditors also couldn't determine whether the county had adequate staffing to properly oversee the millions of dollars in grants or even the amount of time employees spent monitoring them.

The audit recommended a host of improvements, such as strengthening the metrics used to assess the success of grant-supported programs. But Anderson has a more fundamental restructuring in mind.

He wants to “move the focus from monies Fulton County might grant to what services Fulton County is willing to buy.”

“That really starts with a clear strategy for outcomes in areas like homelessness, senior care and youth development, which we don’t have today,” he said.

Anderson recently hired new department heads to oversee Fulton’s housing and aging and youth programs. They will develop a strategic plan and clear metrics for measuring the success of the grant programs, he said.

Some county commissioners say Fulton may need to reconsider the hoops it requires agencies to jump through to receive the grant money. They say the process can be burdensome for agencies that provide services the county cannot.

“There’s a balance. How much administrative burden do you want to put on a small nonprofit to provide reams of data?” said Commissioner Bob Ellis. “It’s not cost effective.”