Housing authority audit error free
The Fayette County Housing Authority heard Thursday that the financial audit for the fiscal year ending June 20, 2006, contained no findings, and its leadership received compliments for turning the organization around. Jim Foutz of McClure and Wolf said all recommendations made in previous years have been addressed. “The system of internal control is very good,” Foutz said. He added that his firm has done the audit for the past five years, but would not have done it a decade ago.
Foutz said because he is a lifelong resident of Fayette County and was aware of former illegal activities at the FCHA, he said 10 years ago he would not have had his firm associated with the FCHA. “I’m pleased to see what the board and administration has accomplished. I think you’ve turned this organization around,” Foutz said.
Former authority head John Marra pleaded guilty in 1999 to orchestrating a bribery and kickback scheme. He repaid $278,125 that a federal judge ordered in restitution.
Crystal Zahand of McClure and Wolf reported the net assets of the FCHA increased in the past fiscal year although the funding dropped. She said the FCHA had a $1.3 million increase in net assets. “Overall, it’s a really good audit,” Zahand said. “There are no findings or recommendations.”
FCHA Chairwoman Angela M. Zimmerlink mentioned there is a recommendation to address cases where certain employees are on vacation for more than five consecutive days and someone else handles their duties. Executive Director Thomas Harkless said the issue will be addressed, adding that there are about 15 employees that fall under this recommendation, and they give signatory authority and supervising authority to subordinates when they are gone.
Harkless said more dialog is needed to get something to present to the auditors and FCHA board.
Zimmerlink said major changes have taken place in the past five years, including a major evaluation of the authority.
Board member William “Trip” Radcliffe, upon reviewing the audit, remarked that it is obvious the bulk of the money the authority receives comes from government funding, and not rent amounts. “I didn’t realize it was that bad,” Radcliffe said.
When Radcliffe asked if Foutz is satisfied with the internal controls at the FCHA, Foutz said although there is always room for improvement, he believes the internal controls are “adequate.”
In other discussion, solicitor Jack Purcell reported he has not yet reviewed the request for proposals for utility, telephone and worker’s compensation cost analysis and recovery.
Zimmerlink explained the process began when Bob Ford approached the authority seeking to do an analysis of utilities and worker’s compensation spending at no charge, but would receive a portion of any savings he finds. After hearing the proposal, the authority opted to seek competitive bids for the service.
Purcell said the FCHA is not going to pay for the service. “If they don’t obtain savings, we don’t spend money,” Purcell said. Harkless said he will not advertise until after the board meets next month to discuss the proposal, which Purcell will have reviewed by that time.
The board tabled a discussion and possible action regarding the executive director’s $650-per-month car allowance until March.