The Controller's Audit Division  is set to begin auditing at least  a sample of the 89 programs in the city's troubled After School Achievement Program (ASAP).

Problems came to light during a recent Channel 13 investigation, which prompted the mayor's office to review the seven-year-old program. ASAP offers free instruction and activities for children at 89 facilities operated by schools and non-profits.

"This is not a traditional audit based on the contract with program providers because the contracts were so inadequate," Controller Annise Parker said. "We want to find out  how the money was spent and go forward with clear contract provisions and strong internal controls. That way, we can advise the administration how to proceed."

The mayor's "limited review" uncovered several major deficiencies:

• Poor contracts with vague program requirements and no penalty for non-compliance;
• Continued funding for some groups despite their failure to meet attendance requirements or even report attendance;
• Questionable contractor expenses and lack of other financial documentation;
• City staff visits to only 60% of program sites in FY04;
• No annual financial audits from participants although contracts require them.

ASAP has been transferred from the Mayor's Office to the Parks Department. The Controller's Audit Division hopes to work with the Legal Department to draft stronger contracts and will consult with Parks to ensure that tighter internal controls are instituted. 

One contractor is being investigated by the District Attorney's office. "If the auditors find any fraud in the initial sample (5-10 programs), we'll turn it over to the DA and go forward with more audits," Parker said.

The $2.5 million program is funded by the general fund (34%), federal CDBG funds (38%) and other non-general fund sources. 

The city recently celebrated one of its grandest openings when the high-tech, under-budget Northeast Water Purification System began pumping much-needed surface water to Houstonians.

The Humble facility, situated on Lake Houston, came in $6.7 million under budget. David Berg, Houston Area Water Corp. president,  presented a $5.75 million novelty check to City Controller Annise Parker. "For once, I was elated the numbers were wrong!," Controller Parker said later. By the time the check was printed, the figure had jumped almost $1 million. 

"The total construction budget represents even more savings," Parker  explained, "because the city made the unprecedented decision to take bids for both design and construction in one contract."

In Phase 1, the facility purifies about 40 million gallons a day but will eventually clean 80 million gallons, which are already spoken for by FM 1960 MUDS. The plant was built  to comply with state legislation requiring the region to convert from ground to surface water to reduce subsidence and flooding.