î*: ge 6
Pnrtland/tíbaerver
Thursday. S«Dtember 13, 1973
Grand Jury
(Continued from pg- 2. col. 6)
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234-9351
Volunteer Program uqrealis
tic."
"In conclusion, the Grand
Jury finds that bookkeeping
for the Volunteer 1‘rogram
was confused and inaccurate
and that rough estimates of
the reimbursement to which
a v olu n teer w as en titled
were often made based gen
erally on the amount of time
a volunteer had put in and
the type of tasks he had
been performing. Such negli
gent bookkeeping would al
most certainly lead an auditor
to disallow a majority of the
approximately $27.000 of ex
penses incurred by the Vol
unteer Program during its
existence from August. 1972.
through Apri!. ’973; but the
criminal law deals with dif
ferent questions of specific
individuals and the demon
strable extent of their in
volvement. This Grand Jury
finds, from the evidence, that
at least some volunteer ex
pense vouchers were con
sciously padded, and further,
that a small number of volun
teer checks were misappro
priated from the named
payee. However, from the
quality and conflicting nature
of the evidence, the Grand
Jury is unable to define the
knowledge or involvement of
particular individuals, be they
staff or volunteers.
Many
people were involved in this
program; m ost g ave un
selfishly of their time for the
good of the community and
are clearly innocent of any
wrongdoing. Therefore, this
report should absolutely not
be taken to imply the guilt of
any given person."
Photo I.D. Project
"The Photo I.D. Project
was a self-sustaining pro
gram of the Center Ad
ministration functioning with
photographic equipment do
nated by local merchants.
Its purpose was to provide
clien ts with photographic
id en tification to facilitate
their cashing welfare checks
and establishing credit.
A
small fee, between $.50 and
$1.50 was charged for the
Multi-Service Center identifi
cation card. The money was
•taken in cash and kept at the
Center until such time as it
was deposited in a bank ac
count. Some persons have
alleged that monies from this
Photo I.D. fund were oc
casionally spent for unap
proved purposes. However,
no one claim s to know
whether these purposes were
personal or for the benefit of
the Center clients as some
have contended.
Spending
the I.D. money for needy
clients was not necessarily a
misuse of I.D. funds.
No
written procedures were ever
established for the handling
of I.D. funds; and there
seems to have been a general
assumption that any surplus
could be ased to meet emer
gency needs of Center clients.
There is an irreconcilable dif
ference of opinion among
witnesses as to how much of
the fund was surplus and
available for clien ts and
w hether clien ts receivin g
funds were needy or not."
"Since the fund functioned
without any written guide
lines whatsoever, and since
only fragmentary records of
its operation w ere main
tained, this Grand Jury can
not even define how the
money should have been
spent let alone resolve ques
tions as to whether it was
spent properly."
Welfare Supplemental loan
Fund
“In March. 1971. pursuant
to a contract (also called
’letter of agreement’! with
Model Cities and pursuant to
proposals submitted to Model
Cities in early 1970, the
Multi-Service Center received
federal funding for an emer
gency Supplemental Welfare
Loan program. Pursuant to
this contract, the purpose of
the program was ‘to provide
financial assistance to needy
recipients and non recipients
of welfare who require aid in
time of need when such aid
is otherwise unavailable. To
be eligible for aid under this
program an applicant must
reside in the Model neigh
borhood and must have no
financial resources or insuf
ficient resources, including
Public Welfare assistance, to
meet a critical financial need.'
While money could be given
as either a ‘grant’ or a 'loan',
the contract also contained
this clause. 'Repayment of
money, granted to clients
from Supplemental Welfare
funds, is not a condition of
obtaining said funds; how
ever. in every case when
funds are disbursed, the ap
plicant shall be encouraged
to repay the aid so that
The Jantzen Beacn Shop
ping Center will host the
Corrections Division display
featuring exhibits from the
Correctional Institution. Pern
tentiary, and the Women's
Correctional Center. These
exhibits include vocational
training programs, resident
organizations and leisure
time skills and activities.
The purpose of the display is
to provide the public with a
general understanding of the
programs available to the
offender to aid their return
to society. The display will
be open to the public from
September 11 through Sep
tember 16, 1973.
Andrew Parish will
i Community Salmon
featuring chinook sal
Piedmont
(Continued from pg. 1, col. 9)
F
check you write (up to your
approved credit limit, of
course).
Best of all, A.C.T. costs
nothing to apply for, and
there is no charge at all
until you use it.
Just visit any branch of
U.S Bank and talk to our
Lady on the Red Carpet.
She'll make your banking
a very personal thing.
in Woodburn and Bend. The
project is owned by Pied
mont Plaza Oregon Ltd., a
limited partnership of which
Hammond Development Cor
poration is the general part
ner.
Limited partner in
terests are now available to
Oregon residents.
Benefits
are in the form of tax
shelters.
Ross B. Hammond Co.,
with the cooperation of the
Albina Contractors Associa
tion, has made a continuing
effort to employ minorities,
not only as workers, but also
as subcontractors.
George
Christian Electric Co., Wil
liam T. Fleming Company,
Complete Gardening Service
and Baldwin Sanitary Ser
vice are m inority-ow ned
firms working on the Pied
mont Plaza development. An
average of 27% of the total
man hours spent on the job
since the start o construc
tion have been completed by
minority workers.
CbKfc
F r e t « Men
equivalent to criminal misap
propriation.
"It is important to note
that in late April, 1971, the
county auditors challenged a
number of the first month's
loans due to incomplete docu
mentation.
The loan com
mittee. made up of members
of the Center Administration
and representatives of some
of the agencies with branches
at the center, met to take
corrective action.
Despite
the fact that there were
records and loan recipients
missing even then, the com
mittee reviewed, documented
to the best of their ability,
and retroactively approved
all questioned loans which
had been made to that date.
The county accepted this
action. Thereafter, the com
mittee met regularly and
acted upon most new loans
as a body.
"The Grand Jury feels that
some important lessons are
to be learned from the con
troversial history of the loan
fund. Apart from the Center
Administration itself, three
authorities had some degree
of responsibility for the loan
funds operation: 111 Model
Cities, who made the initial
grant;
(21 the Multnomah
County Auditor's Office, who
was assigned to disburse the
money in monthly allotments
to the Multi Service Center
and to keep the loan fund
records forwarded to it by
the Center; and
(3) the
State of Oregon and the
Department of Human Re
sou rces, parent authority
over the Multi Service Cen
ter (but note that the De
partm ent of Human Re
sources did not exist nor
assume this authority until
several months after the
Loan Fund began operation).
All evidence heard by this
Grand Jury indicates the fol
lowing situation: (1) Model
Cities took the position that
they could audit the loan
fund's operation, but they
never did so.
The above
mentioned contract of March
18. 1971 was actually made
COMMUNITY CALENDAR
Every day, some innocent
person bounces a check.
It can happen to the best
of us.
Just an innocent mistake
in your checkbook, and
suddenly, you're
overdrawn.
But U.S Bank has a way
to make sure it doesn't
happen to you. It's called
A C.T., Automatic Cash
Transfer.
Once you are approved
for it, we'll cover any
funds can be continued to be
available to aid other persona
in need.* The Grand Jury
w as inform ed that m ost
grants' and loans' were not
repaid.”
The greatest problem with
the loan fund occurred be
tween the date when the
contract with Model Cities
was signed, March 18, 1971,
and April 21. 1971. There
were apparently no docu
mented procedures for use of
the money during this time.
"Records of most of these
initial loans, in March and
April of 1971. are sketchy
and incomplete at best
missing or non existent at
worse. On their face these
loans would appear to be a
violation of the contractual
agreement.
However, this
Grand Jury has heard testi
mony from a number of wit
nesses that there were oral
meetings during March and
early April between mem
bers of Multi Service Center
Administration, Model Cities
and the county auditor's of
five who had assumed re
sponsibility for receiving the
funds from Model Cities and
disbursing them to the Cen
ter. Although it is clear that
procedures for the disburse
ment of loan funds were dis
cussed and perhaps agreed
upon at these oral meetings,
it is not clear, from what the
witnesses were able to recall
after the passage of more
than two years, exactly what
in fact was agreed upon at
these oral meetings. It does
appear the intent of Model
Cities to have given the
Multi-Service Center a good
deal of leeway in adapting
the loan fund to the needs of
the community.
From the
testimony the Grand Jury
cannot say with certainty
that the individual action,
loose procedures and incom
plete bookkeeping used in
the first month's existence of
the loan fund were clearly in
violation of the C enter's
agreement with Model Cities.
In any case, mere breach of
con tract is not normally
Nathan Proby, Chairman
of the U nited Minority
Workers, told the Observer
that Ross B. Hammond Com
pany is cooperating with his
organization and that he con
siders the company to be
living up to its affirmative
action agreement.
mon (baked or barbequedl.
corn-on-the cob. and much
more. Join them on Sunday.
September 16. from 1 to 6
p.m. at N.E. 9th and Alberta.
Adult dinners are $2.50. with
children under 12 $1.25. Take
outs will be available.
Registration for classes of
fered by the Portland Eve
ning High School will be held
Monday between 6:30 and
8:30 p.m. September 17th in
the library of Benson High
School, with classes scheduled
to begin at 7:00 p.m. Sep
tember 24th.
The evening high school
program provides students
under 21 years of age
with course work leading to
a high school diploma. Stu
dent's attending day high
schools who wish to make up
credits may enroll if they
have perm ission of their
schools.
The evening school curri
culum includes all the re
quired subjects in English,
social studies, mathematics
and science, plus a broad
selection of e le c tiv e s in
cluding art, calligraphy, gen
eral business, health, soci
ology. work experience, typ
ing, psychology and auto
mechanics. An independent
study program also permits
students to study subjects
not listed in the regular
curriculum.
City-County Charter Com
mission chairman George M.
Joseph has announced that
besides its regular meetings
on the second and fourth
Wednesdays of each month,
the Commission will hold
special m eetin gs on call
through m id-October, in
cluding weekends.
The stepped up schedule is
necessary to enable the Com
mission to meet the Novem
ber 1 publication deadline for
the final draft charter. The
charter will be on the May,
1974 primary election ballot.
The Commission’s study
com m ittee m eetin g s are
scheduled by com m ittee
members.
Interested persons may ob
tain specific information by
calling the Commission office.
Four such committees meet
to study and make recom
mendations to the full Com
mission for action: Govern
ment Structure, Finance and
Taxation, Civil Service and
Personnel, and Transition.
Mrs. Vernon B utler, a
northeast Portland resident,
will speak on the oppor
tunities for volunteer service
at the Northeast YWCA, at a
Volunteer Workshop on Sep
tember 18. at the downtown
YWCA. 1111 S.W. 10th.
Interested persons are in
vited to the workshop, schr
duled from 9:45 11:30 a.m.
The various programs, classes
and recreational activities at
the YWCA that welcome
volunteers will be discussed
at the workshop.
Teen program aide, craft
instructor, program hostess
and lobby hostess are just
some of the volunteer jobs
available at the YWCA.
between the City of Portland
(of which Model Cities is a
federally funded division) and
Multnomah County.
The
County was supposed to dis
burse the granted money to
the Multi S ervice C enter,
which stood in the position
of third party beneficiary.
Model Cities held the county
responsible for the granted
money, and took the position
that the county had both the
power and the obligation to
regulate and control the loan
fund's operation. (21 On the
other hand, at least some
contract nowhere specifies
the exact duties or powers of
the county. From the testi
mony, the Grand Jury con
eludes that the county offi
cials directly involved in the
disbursement of this money
understood their role to In- a
very limited one. described
as 'fiscal agent' or book
keeper.
So long as there
was compliance with those
procedures for documentation
which had been agreed upon
between Model Cities and
the Multi-Service Center, the
county saw itself as having
no authority to demand a
change in those procedures
or to question the reasons
for which loans were made.
(3) The evidence heard lie
fore this Grand Jury indi
cates that at least some state
officials disclaimed responsi
bility for the operation of the
loan fund since state funds
were not involved
Respon
sib ility was assign ed to
Model Cities. Then- is evi
dence that state officials did
on occasion question the rea
sons for a loan; but it ap
pears that no thorough in
vestigation. audit, or review
of loan procedures and poll
cies was ever undertaken by
the state."
The Grand Jury recom
mended that a Multi Service
Center Auditor be employed
by the Department of Human
Resources to audit all the
Multi Service Centers (there
is currently a renter in On
tario and one is scheduled for
C orvallis).
This person
would also serve as an om
budsman for staff complaints
and as a liaison between
Center staff and the Depart
ment of Human R e s o u r c e s.
The Center staff should have
clearly defined job discrip
tions and lines of authority
and find operational proce
dures need to be established.
Each Administration project
should have a bookkeeper
and a set of books.
The
auditor should have the au
thority to stop any projects
that do not follow proper
procedures. The Grand Jury
recommended that the audi
tor not be a member of the
local community so he would
be free from social and
political pressures and could
objectively review the funds
and programs handled by the
Central Administration.
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