TO: Mayor and Commissioners
FROM: Lynn Gelin, City Attorney
DATE: April 6, 2021
Title
DISCUSSION CONCERNING OFFICE OF INSPECTOR GENERAL INVESTIGATIVE REPORT 2019-004, "CITY OF DELRAY BEACH GRANTS PROGRAM" DATED FEBRUARY 16, 2021
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Background:
On February 16, 2021, the Office of Inspector General (“OIG”) issued a report concerning its investigation into the City of Delray Beach Grants Program. According to the report, the OIG received a complaint in May 2019 regarding former employees, Michael Coleman (“Coleman”) and Jamael Stewart (“Stewart”). The complaint alleged that (1) Coleman and Stewart caused disbursement of City grants to organizations that did not submit a required application, and/or that submitted applications were not reviewed by a committee designated by the City Manager;” (2) Coleman and Stewart “failed to avoid conflicts of interest between their personal interests and the City’s interests;” (3) Stewart “solicited funds under false pretenses on behalf of a nonprofit for which he served as an officer/director;” and (4) Coleman “used a City purchasing card to buy trophies for Mr. Stewart and Mr. Stewart’s cousin.” The OIG found support for 3 of the allegations.
The OIG made 3 recommendations to assist the City in strengthening its controls over grants:
(1) Amend Policy GA-23; (2) Add language to the City’s Check Request Form requiring a certification from the approver that they have not served as an officer, director, or employee of the organization receiving funds; and (3) Inform employees of updates to the ethics policy and require an acknowledgement for same.
The City concurred with these recommendations and has begun the process of implementing same. In addition, the OIG identified a $140 purchase on the City’s credit card by Mr. Coleman that should be recouped by the City as it did not constitute a public purpose.