Portland, OR. – Official Release: An investigation by the Portland City Auditor found waste and inefficiency in the Office of Community and Civic Life’s and the City’s handling of grant non-compliance issues. Civic Life spent more money than originally intended, failed to adhere to City policies, and did not pursue potential remedies that could have addressed grant non-compliance more effectively. The City also lacked a process to communicate grant non-compliance issues across bureaus.
“Effective grant management is critical to fostering trust in City operations and ensuring public funds are used responsibly,” said City Auditor Simone Rede. “The results of this investigation show opportunities to improve compliance and prevent similar issues in the future.”
The investigation, initiated after a tip to the Fraud Hotline, uncovered systemic challenges in how the City communicates and addresses grant-related issues across bureaus. The investigation also found that Civic Life exceeded its $30,000 grant agreement with East Portland Neighbors (EPN) by $13,394 to address a lapse in liability insurance coverage. A failure to pursue potential remedies allowed wasteful spending and ongoing inefficiencies. The City lacked a formal process to address grant non-compliance and communicate issues with grantees across bureaus, leading to additional challenges for small organizations relying on EPN as a fiscal sponsor to receive and administer financial contributions on behalf of the sponsored organization.
In their report, investigators acknowledged the City’s new Outgoing Grant Administration policy and recommended developing additional procedures for grantee non-compliance and dispute resolution. View the full report.
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