TALLAHASSEE, Fla. (WCTV) – Tallahassee police have completed an investigation into alleged fraud surrounding the city’s lead abatement program, according to an email from City Manager Reese Goad on Monday.
According to a report from the Tallahassee Police Department, the investigation was referred by the Inspector General after a former city employee reported allegations of fraud.
The fraud allegations included “mismanagement” and “waste of public funds” between the contractor and a city employee involving the HUD Lead Hazard project.
According to that report, the investigation found no evidence to support that the contractor or City staff engaged in any wrongdoing.
More Tallahassee news:
On Tuesday, Assistant City Manager Christian Doolin told commissioners in an email the City submitted a notice of intent to appeal HUD’s determination of ineligible costs.
The U.S. Department of Housing and Urban Development previously told city officials that costs tied to work conducted on Holton Street as part of the lead abatement program were “ineligible for reimbursement under the grant.” The letter, dated May 26, stated the city must repay all grant funds associated with the project.
HUD also named Tallahassee’s Lead Hazard Reduction grant “high-risk,” citing concerns about unit eligibility and contractor expense justification, placing the grant under HUD investigation.
According to the notice of intent to appeal, the City claims the Holton Street Project costs were reasonable, market analysis confirmed the contract and that work and supporting documents “satisfied each applicable requirement governing the use of grant funds.”
The City is asking HUD to “reconsider and reverse the Determination and confirm the Holton Street Project costs are allowable in full.”
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