Misuse of Stimulus Funds
4:39 am
Thu September 5, 2013

Rockford Must Send $300K Back To The Feds

Rockford will give nearly $300,000 in stimulus money back to the federal government. Investigations by the city and the Office of the Inspector General found that Rockford’s Human Services Department improperly used Community Block Grant funds in 2009 and 2010. 

Credit city of Rockford

Rockford Mayor Larry Morrissey says neither report showed intentional misuse of funds. Most of the violations involved improper documentation or spending on activities not allowed under federal grants.

The city released its findings Wednesday.  Among the changes in store for the city of Rockford are returning the money in question, eliminating its Human Services Department, and creating an Early Childhood committee. The city must also set up oversight of grants through its finance department.

The Rockford Area Economic Development Council, the Winnebago County State’s Attorney’s office, and the now-defunct nCenter for youth received the federal grants through the city: they’re accused of not properly accounting for it.