Overview
- The inspector general reported $516,150 in ARPA funds paid to performers, exceeding a $300,000 talent budget, including $240,500 for one headliner and $125,000 for another.
- Investigators found $582,809 was reallocated across budget lines without required approvals, which should have triggered Board of Estimates review under the city’s 25% threshold rule.
- At least $26,546 covered a mayoral VIP reception, and auditors could not verify whether ARPA dollars bought alcohol due to missing receipts, while the city says sponsorships covered bar costs.
- The administration says the spending qualified under federal Provision of Government Services rules, cites an estimated $8.8 million economic impact, and plans to seek retroactive approval.
- The grant’s Revenue Replacement classification meant competitive procurement did not apply to talent booking, and the IG urged event-specific operating procedures while alleging no criminal wrongdoing.