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A Detroit nonprofit that received a no-bid, $1.2-million contract from the city to provide services to low-income people misspent $200,000 on furniture that ended up in city offices, the Free Press has learned.
The Human Services Department issued the contract last year to Clark & Associates exclusively to pay its employees to assist with the city's food and clothing assistance programs.
But records obtained by the Free Press show the nonprofit spent $210,344 of the contract on furniture that is now at the Human Services Department's office at 5031 Grandy.
By using a service contract to buy furniture, the department violated a city ordinance that requires City Council approval for purchases of more than $25,000, said Greg Murray, vice president and administrative representative for the Senior Accountants, Analysts and Appraisers Association, which represents some of the Human Services employees.
"A department that gave a no-bid contract to a company gets more than $200,000 in furniture?... There's something wrong," said Murray, who made the council aware of the contract and purchase.
A division of the council is investigating the contract but hasn't been able to get answers from the department, Councilwoman Brenda Jones said. The department didn't respond to Free Press requests for comment.