2. Managerial Control

Another major flaw in the NRP program is the
almost complete lack of managerial control
and responsibility.  Currently, as I understand
it, there are six ways that the NRP exerts
control over its contractors. Now these 
procedures sounds great, but in actuality
there are so many holes in these requirements 
that neighborhood programs are ripe for 
mismanagement or corruption.  I will list the
procedures I am aware of and the problems 
associated with them.

1) The NRP establishes a legal contract with
an organization to distribute NRP funds in
a neighborhood.

No real problems here that I know of.

2) The NRP specifies some loose guidelines
for Plan development (essentially a projected
budget).

There are major problems here.  The state statues
specifically identify who must participate, however
the NRP only requires that contractors attempt to
involve residents.  There are no set levels of
participation that are required and no required
methods of neighborhood notification.  It's pretty
much left up to individual contractors (with some
suggestions and encouragement from the NRP). But,
the bottom line is that if 20 people from a neighborhood
of 6000 show up and that could be considered 
sufficient participation.

Secondly, there is no detailed required record keeping, 
so there is no way to know how representative participation
is of the various stakeholders.  There is also no
requirement that participants verify their residency
as is required in general elections.  This deficiency
could result in great mischief by special interest
groups willing to pack meetings.

3) The NRP approves Plans and checks to be
sure they conform to the law (their interpretation
of course).

There is something here that I am unclear about.
If the NRP had wanted to meet the stated 52%
housing goal and they approve all neighborhood
development plans (and allocations) how could
they have fallen short of the goal?  To me this
implies that managerial oversight is too lax or
interested in some other agenda.

4) The NRP has some requirements about what records 
must be kept and how funds must be released.

There is some procedure for the release of funds,
but once again the rules are too lax.  In one
neighborhood $600,000 was voted to be released to
a developer without a written contract in existence. 

Not only was this $600,000 released without a contract,
but there was no biding on the housing project. It
was handed to a single developer.  This was allowed
because the money was supposedly used to purchase
property and not used for construction.  But, in my eyes 
if you can maneuver project budget items this easily,
then the rules are too lose and the possible of
patronage and corruption too high. 

5) There are periodic cursory audits of contractors.

The NRP often touts the use of periodic audits as a
method of insuring the legitimate expenditure of funds.
I bought into this for a while until I learned that
the audits are superficial. As I understand it, the 
state auditor comes in and checks to make sure that 
the records exist and are available (in the case of my 
neighborhood association not all of them were), but does 
not check the validity of those records.  In other words, 
and the NRP is free to correct me if I am wrong, in the
majority of audits no auditor checks that expenditures 
went to legitimate subcontractors and that the
goods and services were actually received.  

This is probably the most significant correctable
problem in the NRP, but as it stands now it's
an incredible mess.  I've seen a subcontractor walk
into a neighborhood executive committee meeting and ask 
for payment for hours that were never approved nor
verified and receive payment.  Why?  Because I
believe that the executive committee was embarrassed
and didn't want the NRP leadership to know what
was going on. The fact is that there appears to be
little direct supervision or accounting of subcontractors.
Once again, the rules are too lose and the possible of
patronage and corruption too high.

6) Contractors and the NRP are required to do a
periodic review.

As I understand it the NRP is allowed to select
someone to do a review of their agency.  In my
experience unless a review is done by a completely
independent third party, hired by someone other than the
party being reviewed, you don't get accurate feedback.

As a humorous side note, the NRP requires contractors
to do an "evaluation" of Phase I, but changed
the form of the report from an "evaluation" to a 
"review."  This is kind of an insider Measurement
& Evaluation joke.  You see in an "evaluation"
(according to some prominent theorists) you determine
"merit and worth," but in a review you don't necessarily. 
You may just report what happened and not make a judgment on
the effectiveness of program.  In my opinion a "review"
fits the needs of the NRP must better than an "evaluation."

Michael Atherton
Prospect Park


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