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Kidd Led City Year To Money Shortage

Kidd was one of four finalists for the position, and was chosen over the strong objections of all the students on the search committee, who preferred incumbent PBH executive director Greg Johnson '72.

The students' major objection was that her background was almost exclusively in banking and fundraising.

The allegations surrounding City Year surfaced in a page one Boston Globe story that said City Year "is beset by fiscal mismanagement."

Many City Year managers and volunteers objected vigorously to the Globe's portrayal of the program, saying the government funding restrictions were unclear and that a professional financial officer was hired in 1995.

According to the Globe, City Year rushed to expand and in the process did not follow through on the mundane work of logging time sheets and keeping financially sound records in the early 1990s.

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The Globe cited two financial problems with City Year in addition to its fiscal year 1996 money shortage problem.

First, City Year's inability to document $2 million in federal funds was identified in a 1993 Corporation for National Services audit of City Year.

Second, in violation of federal regulations, City Year used money that was ear-marked for post-service awards for its graduates and used it for running City Year's own national service program.

The government disputed $602,895 in spending and ultimately forgave part of the amount. But City Year was forced to repay $250,000.

These problems originated mainly from a Bush-era organization grant given before Kidd's tenure.

The Globe article implied that City Year may have grown too fast, without implementing adequate financial controls.

During Kidd's tenure as Vice President for Development from 1992 to 1994, the operating budget doubled from $7 million to $15 million.

City Year ran into its money shortage right after Kidd left her position as acting COO.

President of City Year Michael H. Brown '83-'84 said that Kidd did not want the added responsibility of the position.

"She agreed to step up to take more responsibility, but permanently it was not something she wanted to do," said Brown.

In July 1995, Kidd officially divorced herself from administrative duties at which time administration over finances returned to the jurisdiction of President and founder Michael Brown and Broughton.

Andrew S. Chang contributed to the reporting of this story.

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