Not working, manipulated city's loan fund (13)
I believe the answer is:
dysfunctional
'not working' is the definition.
(I've seen this before)
'manipulated city's loan fund' is the wordplay.
'manipulated' indicates an anagram.
'citys'+'loan'+'fund'='citysloanfund'
'citysloanfund' anagrammed gives 'DYSFUNCTIONAL'.
(Other definitions for dysfunctional that I've seen before include "Socially incapable and abnormal" , "Not operating properly" , "not working properly" , "Not operating normally" , "Operating with impairment" .)