Riverside County Grand Jury • 2021-2022

Civil Grand Jury Urges Transparency as Cities Receive and Spend Millions in Covid Aid

9 pages
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Findings and Recommendations 9 findings

F1
In each of the eight cities visited, city managers, finance directors and other administrators were well aware of the receipt of COVID funds, and of the interim Federal guidelines.
No recommendations for this finding
F2
By the fall of 2021 almost all of the CARES Act funding had been distributed. CARES Act funding received earlier in 2021 had been used for a variety of programs. The Grand Jury discovered that some cities were more innovative than others in using these funds, including 6 working with the local Chamber of Commerce to provide grants to small businesses and partnering with restaurants to provide meals for seniors.
Related Recommendations (1)
R6
Future Grand Juries, and other responsible and investigating agencies, should closely monitor the use of COVID funding and subsequent Federal funding to ensure transparency and the proper expenditure of such funds. (F-2, F-4, F-8, F-9) RESPONSES While cities are not required to respond to this report of the 2021-22 Riverside County Civil Grand Jury, the Grand Jury invites and encourages all Riverside County cities to offer comments on the Findings and Recommendations of this report.
F3
Because of the pandemic, during 2021 and in early 2022 many city halls were closed to the public with limited staff inside and most employees working remotely from home. Most cities relied heavily on social media (i.e... city websites, Facebook, etc.) to inform businesses and residents of available COVID funds. As might be expected, larger or wealthier cities, appeared to be able to communicate better than small cities with limited staff.
Related Recommendations (3)
R3
To ensure transparency the amount of COVID-related funding received, and its proposed usage, should be posted prominently on all public agency’s websites, Facebook pages and other social media sites. Residents should be able to easily track the amount of funding received, proposals on how the funds are to be used, contracts awarded for ARPA related projects, progress on ARPA funded projects and the impact of the funding on their community. Minimal funding required. (F-7, F-8)
R4
To further ensure transparency press releases should be distributed to all relevant media detailing the receipt and distribution of all COVID related funds. Minimal funding required. (F- 8, F-9)
R5
Each city should hire or designate at least one individual to serve as a one-stop-shop for residents, small business owners, contractors, and other members of the business community. This individual(s) should provide guidance and recommendations to assist in determining availability of any Federal, State or Local funds. Moderate to high funding required. (F-3)
F4
Cities handled the receipt of what many officials called a “windfall” of taxpayer money in a variety of ways.
Related Recommendations (1)
R6
Future Grand Juries, and other responsible and investigating agencies, should closely monitor the use of COVID funding and subsequent Federal funding to ensure transparency and the proper expenditure of such funds. (F-2, F-4, F-8, F-9) RESPONSES While cities are not required to respond to this report of the 2021-22 Riverside County Civil Grand Jury, the Grand Jury invites and encourages all Riverside County cities to offer comments on the Findings and Recommendations of this report.
F5
While awaiting final Federal guidelines, in most cities the ARPA funds were invested with the Local Agency Investment Fund (LAIF). This fund “offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Treasurers Office investment staff at no additional cost to the taxpayer.”7
No recommendations for this finding
F6
Some cities reported that they will be hiring an outside auditing agency to track the receipt and expenditure of COVID funds. Other cities reported that they will rely solely on their established internal control procedures to track the funds.
Related Recommendations (1)
R2
In the opinion of the Grand Jury, COVID funds received should be audited regularly by an outside agency, in addition to using internal controls, as a way to ensure accountability and transparency. Moderate funding required. (F-6)
F7
Each city in the County is unique, with its own concerns and priorities. One common need in most cities is to upgrade infrastructure (an allowable use of ARPA funds) which had been deferred since the economic collapse of 2008-2010.
No recommendations for this finding
F8
In most of the visited cities, discussions were underway as to how to best spend the funds by the time of the Grand Jury visit. In some cities, discussions were being held informally at the city staff level. Other cities had either planned to schedule, or had held, informational city council workshops to allow public comment on how the money could best be used and to provide direction to city staff.
Related Recommendations (2)
R1
With the relaxation of many COVID protocols across California, cities, special districts, school districts and other county agencies that receive funding, should schedule public workshops. This will allow further transparency and provide residents the opportunity to share their opinions and p
R6
Future Grand Juries, and other responsible and investigating agencies, should closely monitor the use of COVID funding and subsequent Federal funding to ensure transparency and the proper expenditure of such funds. (F-2, F-4, F-8, F-9) RESPONSES While cities are not required to respond to this report of the 2021-22 Riverside County Civil Grand Jury, the Grand Jury invites and encourages all Riverside County cities to offer comments on the Findings and Recommendations of this report.
F9
Ultimately, how a city’s ARPA funds will be spent, is a decision of the City Council in accordance with the Treasury guidelines that took effect on April 1, 2022. RECOMMENDATIONS These recommendations are based on what, in the opinion of the Grand Jury, were the best practices undertaken by some Riverside County cities.
Related Recommendations (1)
R6
Future Grand Juries, and other responsible and investigating agencies, should closely monitor the use of COVID funding and subsequent Federal funding to ensure transparency and the proper expenditure of such funds. (F-2, F-4, F-8, F-9) RESPONSES While cities are not required to respond to this report of the 2021-22 Riverside County Civil Grand Jury, the Grand Jury invites and encourages all Riverside County cities to offer comments on the Findings and Recommendations of this report.