ALBANY — Millions of dollars in federal pandemic aid city leaders said would go to fund various worthy causes were instead used for other municipal expenses and the city was forced to use its own funds to honor its commitments, a decision that turned a financial lifeline into a root cause of Albany’s current fiscal crisis.
A draft report by the city auditor has found serious problems with how officials managed tens of millions of dollars in federal pandemic aid.
The unreleased audit details wide-ranging failures in how city officials accounted for $25 million in American Rescue Plan Act funds set aside for a program known as Albany for All. The program, which provided aid to dozens of city charitable groups and businesses as well as quasi-government agencies like the Albany Water Board and Parking Authority, made up nearly a third of the $80,725,433 the city received in ARPA funds…