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City Seeks Funding Release

Old Accounting Problems Led U.s. To Freeze Baltimore Stimulus Money

June 06, 2009|By Julie Bykowicz , julie.bykowicz@baltsun.com

Seeking to restore a vital source of funding, Baltimore submitted documents Friday to Department of Justice officials who have frozen some of the city's stimulus money because of poor recordkeeping a decade ago.

Sheryl Goldstein, director of the Mayor's Office of Criminal Justice, said she believes the city's response will be enough to take Baltimore off the Justice Department's "high-risk" list - clearing the way for as much as $8.2 million that can be used to hire additional police officers and launch new public safety programs.

Susan Oliver, a Justice Department spokeswoman, said the city could have immediate access to grant money if it has responded satisfactorily. Federal officials will conduct an expedited review of the documents, she said.

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Mayor Sheila Dixon said Friday that her administration was being "held hostage" by the Justice Department for the mistakes of predecessors. "We have to clean up from prior administrations," she said. "We shouldn't be held accountable for their mistakes."

She also said Justice officials "didn't do their part" to keep better watch over the money years ago.

At issue were law enforcement grants awarded in 1996, 1998 and 2000. The Justice Department says it never received required documentation on spending, including nearly $700,000 to help create a unit of prosecutors dedicated to gun cases. The city says the problems stemmed from clerical errors, not misuse.

After six years' worth of questions from city and federal auditors, Justice officials sent Dixon a letter about a month ago saying they have stopped the flow of funds to Baltimore until the city responds to the old problems.

That stark warning sent city officials on a search for old payroll slips, furniture invoices and construction receipts to prove they had spent the grant money properly.

The Office of Criminal Justice was responsible for administering the grants in question, which were awarded when Kurt C. Schmoke and Gov. Martin O'Malley were mayors.

Goldstein, who became head of the office in 2007, said she assembled proof of how all but $13,162.13 was spent and that the city was prepared to repay that money if necessary. Improper documentation of law enforcement grants has already cost the city about $150,000 in federal repayments.

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