D.C. spent its initial $470 million in COVID-19 aid without necessary approval from D.C. Council, the city’s auditor said in a report released Thursday. However, other city officials argue that approval was not needed.
“The initial action of just saying to the executive whatever you want is fine is something we found in other audits, earlier audits on other subjects, and it's concerning,” Auditor Kathy Patterson told the News4 I-Team.
In the audit, Patterson blames D.C.’s Office of the Chief Financial Officer for not spotting it and calling it out.
The D.C. Council is already investigating how D.C. schools spent millions of dollars on contracts the Council never approved, either. D.C. law says they should have been.
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The audit focused on nearly half a billion federal dollars sent to D.C. in 2020 for the initial round of CARES Act COVID-19 response funding. Auditors did not find waste or fraud in the spending. The report makes clear the money was spent on things D.C. needed in its COVID-19 response but that it wasn’t spent according to D.C. law.
Mayor Muriel Bowser’s office disagrees.
The audit cannot reclaim the money or force the mayor to pay it back, but it does recommend changes to make sure the law is followed in the future.
The audit blames the lack of approval on what auditors call a mistaken interpretation of D.C. code that allowed emergency expenditures. Outside lawyers hired by the auditor said that violated D.C.’s charter.
Investigations
Investigations by the News4 I-Team
“One of the things we need to look to the CFO for is independent analysis of how the money is being spent,” Patterson said. “Not just say yes to the mayor, no to the Council, but what are we getting value for?”
The audit includes a brief comment from the chief financial officer. While the audit says the CFO office isn’t doing its job independently overseeing spending, the CFO told the auditor, the office “will not be providing a response as there are no financial findings or recommendations reflected in the audit.”
City Administrator Kevin Donohue told auditors, “While such an allegation (of unapproved spending) surely would be newsworthy, it is totally unfounded.”
Donohue, who is appointed by the mayor, said in his response the mayor didn’t need Council approval. The auditor disagrees.
D.C. Council Chairman Phil Mendelson postponed a hearing on the schools contracting issues this week because D.C. Public Schools again wasn’t ready. It’s set for early next month.
News4 reached out to the mayor’s office for any additional comment on the audit from the CFO and city administrator but has not heard back yet.
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