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The Department of Planning and Development’s Administration of the Neighborhood Opportunity Fund Small Grants Program

December 28, 2022

Summary

The Office of Inspector General (OIG) conducted an audit of the Department of Planning and Development’s (DPD) administration of the Neighborhood Opportunity Fund (NOF) Small Grants program.

Executive Summary

A | Conclusion

OIG concluded that DPD adheres to its selection and monitoring procedures, ensuring that the NOF Small Grants program awards grants to qualified applicants for approved project costs. However, the Department does not formally measure the program’s progress toward defined goals. This precludes DPD from determining whether the NOF Small Grants program has its intended effect of improving social and economic outcomes.

B | Findings

DPD awarded NOF small grants to eligible applicants and ensured that grantees complied with program requirements. While there is room for improvement, the Department’s grantee selection and project monitoring processes align with best practices by clearly defining program eligibility, measuring applicants against criteria, and ensuring that grantees are reimbursed only for eligible and approved costs.

However, DPD has no specific, documented program goals and does not formally measure program performance. Therefore, it cannot demonstrate whether the program achieves its intended social and economic outcomes. Nor does DPD collect contractually required quarterly reports from its program administrator, which should include performance metrics including the number of jobs retained and created, the number of start-up businesses launched, and the number of vacant commercial units occupied. NOF Small Grants program staff stated that they do not formally measure program performance because they have prioritized completing grantee projects rather than evaluating program outcomes.

C | Recommendations

OIG recommends that DPD improve its current procedures to ensure completion of all grantee selection steps and retention of related records. Furthermore, the Department should define measurable program goals and develop performance measurement procedures that facilitate the assessment of progress toward those goals. Finally, DPD should ensure that it collects contractually required quarterly performance reports from the program administrator.

D | DPD Response

In response to our audit findings and recommendations, DPD stated that it will develop comprehensive procedures to track and retain selection process procedure results. In addition, the Department will work with an external consultant to convert the guiding principles of the NOF Small Grants program into clear measurable goals. DPD also committed to implementing a quarterly program performance process that will include reviewing the program administrator’s contractually required reports and briefing senior staff on the program’s progress.

The Department of Planning and Development’s Administration of the Neighborhood Opportunity Fund Small Grants Program - publication cover