Letter to city council concerning a failed audit by the Regional Economic Development Initiative (REDI) 5.28.25
The Regional Economic Development Initiative (REDI) is a “leveraged support” partner. It is one of 40 or so external organizations that receives funding from the city. For each of the the past several years, REDI has received $250,000 from the city.
In 2025, REDI underwent a contract compliance audit by the city’s Internal Audit Manager. REDI flunked the audit.
The report does not use this terminology but according to the audit report, REDI was essentially unauditable. For example, one of its findings was, “The payroll journals contain insufficient information to determine whether contractual terms are upheld.” That is no small finding. Approximately 90% of the city’s grant is used for payroll. In other words. the auditor could not audit the use of 90% of the grant funds based on the payroll journals.
I also thought the facts indicated a possible contract mischarging, which means that Cincinnati may have been getting billed for labor on projects other than Cincinnati projects. The audit also found a lack of supporting documentation for appx. $14,000 in expenses over a two year period.
My letter to the city council recommended that the city withhold funding for REDI until the audit findings were corrected; clawback $14,000 in unsupported claims that had been paid; and commission an outside audit, at REDI’s expense, to look into the issue of mischarging and the $14,000 shortage. None of that happened.
In the 2026/2027 budget, REDI received $245000 from the city. Some might view that as a breach of fiduciary obligations by the city council.
REDI Cincinnati Contract Compliance Audit
