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Audit: Funds To Help 400 Job Seekers Aided Only 2

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DETROIT (WWJ/AP) - An audit has found that a portion of an $11 million federal grant intended to provide business attire to 400 low-income job-seekers in Detroit helped only two people.

The audit of the city’s Department of Human Services found the department failed to control the operations and finances of a boutique that was to provide clothes, the Detroit News reported. The city’s auditor general conducted the review for the period from July 2009 to September 2011.

The center, at 1970 Larned, included the Customer Choice Pantry, the New Beginnings Clothing Boutique and a call center that had the capacity to service 60,000 families in need. The boutique was to provide business attire for low-income residents for job interviews.

To receive clothing, residents were required to have a job interview scheduled. According to the audit, the DHS was supposed to help 400 people between October 2010 and September 2011 but instead served only two.

The department is under scrutiny for management of federal funds. The audit says the department didn’t safeguard grant money or create an inventory for the clothing.

A City Council committee was to discuss the audit Wednesday. An email seeking comment was sent to a spokeswoman for Mayor Dave Bing.

TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.

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