By Pat Litowitz
New Castle News
HUD may not like it, but the Lawrence County Housing Authority board will have an extensive review of its operations.
The authority’s comptroller, Holly Girdwood, raised concerns about the expenses involved with three board-sanctioned audits: forensic financial, inventory and building units. As of July, the authority showed a surplus of approximately $80,000.
“The inclusion of this cost may result in a deficit budget,” Girdwood told the board earlier this month.
The U.S. Department of Housing and Urban Development rated the nonprofit agency a troubled performer based on its 2005 fiscal performance. Former executive director Robert Evanick learned of the designation on Nov, 18, 2006. The board was not told of the authority’s status until January 2007.
Evanick’s inaction and the board’s resulting lack of confidence in him led the longtime administrator to retire.
Later, board members called for the audits in order to provide the incoming executive director with a thorough review of operations.
Girdwood said she contacted HUD officials in Pittsburgh to discuss the financial effects of the audits on the authority’s budget.
“They have informed me that a deficit budget will not be approved,” she said. “They are not comfortable with approving the cost of a forensic audit for the reason that was specified, and (they stated) that if you feel that there has been any wrongdoing, the HUD Inspector General’s office … is available at no cost for a review.”
Board member Michael Mancuso said Girdwood is premature in her predictions of a deficit.
“That’s putting the cart before the horse,” he said. “We don’t know how much the audit is going to cost us. Until we have all the figures, it would be difficult (to believe) that this would put us in a deficit situation.”
Girdwood said that from 2002 through 2007, approximately 30 audits have been performed. An independent audit of 2006 operations is under way. From Aug. 6 to Aug. 10, a HUD contractor will review the authority’s financial structure and the troubled status.
Mancuso said prior efforts do not go far enough.
“A forensic audit is extremely specialized,” he said. “We want everything. We want the whole ball of wax.”
HUD spokeswoman Maria Bynum said it is the board’s responsibility to maintain a balanced budget.
“HUD is working with the Lawrence County Housing Authority to assess the authority’s operations and to identify the actions needed to improve its performance,” she said.
“The authority is aware that HUD cannot approve a deficit budget. It’s up to the authority to decide how to budget its resources.
“It’s a management decision, and we’re confident that the authority will work it out and provide Lawrence County residents with quality housing services.”
Copyright © 1999-2006 cnhi, inc.
Friday, July 27, 2007
Wednesday, July 25, 2007
Board member begins payback
By Pat Litowitz
New Castle News
The threat of civil litigation prompted a New Castle Area School Board member to return approximately $1,700 to the district.
Peter J. Yerage, 63, of 929 Warren Ave. reimbursed the school system $150 last week, according to business manager Joseph Ambrosini. The retired Lawrence County educator also agreed to make monthly $50 payments. At that rate, full restitution would take place in February 2010.
Attempts to contact Yerage for comment were unsuccessful.
Yerage received $1,377.06 in cash advances to attend conferences in 2005 and 2006. He did not provide the district receipts showing how those funds were used. The district also claims Yerage had $307.05 in unallowable purchases during seminars in 2002, 2004 and 2005.
“It’s disturbing to me to say the least,” board President Fred Mozzocio said. “I don’t think you should go on a conference if you don’t have the financial (means) to support everything that goes along with that trip.
“I don’t believe any board member should rely on the district to front them the money to make these types of trips.”
The state Auditor General’s office has regularly criticized the district over travel expenses involving board members.
New Castle received its greatest criticism over a 2002 conference trip to New Orleans involving retired assistant superintendent Nick DeRosa and three school board members. The state noted that the board members and DeRosa failed to register or pay registration fees. Their attendance at conference programs and events could not be verified.
In its December 2006 audit covering the 2003-04 school years, the state found 10 violations among the 19 travel expenses reviewed.
Calling the recurring findings an embarrassment, Superintendent George Gabriel on Dec. 16, 2006, banned conference and seminar travel for administrators. The board followed Gabriel’s example and prohibited its members from district-reimbursed travel.
“Our goal is to be ‘finding free’ in our next audit,” Gabriel said. “(Yerage) is supposed to be held to a higher standard.”
After attending two sessions addressing the district’s and state’s travel policies, administrators regained travel privileges on Feb. 20, 2007. The board has maintained its moratorium.
“I didn’t know about the report’s findings,” Yerage said in December 2006. “That was an oversight. I will pay the district back.”
Until last week, he hadn’t.Ambrosini said the district made several efforts to recoup the funds. When Yerage repeatedly failed to respond, Ambrosini and Gabriel sent a certified letter to him stating he had 20 days to make restitution or face collection efforts through the district judge’s office.
“You have failed and refused to provide receipts evidencing use of these funds for travel and conference attendance on behalf of the district,” the letter said. “Please be advised the State Auditors are aware of the circumstances and are requesting this matter be addressed without delay.”
Board member Philip Conti said Yerage’s travel troubles are somewhat of a surprise. Conti served as business manager at the Lawrence County Career and Technical Center during Yerage’s tenure there.
“When he was at the vo-tech, he did a lot of traveling,” Conti said. “As far as my memory serves me, there was never a problem.
“Obviously, he’s taken a different position since he became a board member.”
Mozzocio said Yerage’s actions tarnish the school system.
“Myself and many other of the board members have done our very best to restore the reputation of the New Castle Area School Board and the district. When things like this come out, it puts a shadow on us.
“It makes that black cloud linger, which we have fought very hard to get rid of.”
Copyright © 1999-2006 cnhi, inc.
New Castle News
The threat of civil litigation prompted a New Castle Area School Board member to return approximately $1,700 to the district.
Peter J. Yerage, 63, of 929 Warren Ave. reimbursed the school system $150 last week, according to business manager Joseph Ambrosini. The retired Lawrence County educator also agreed to make monthly $50 payments. At that rate, full restitution would take place in February 2010.
Attempts to contact Yerage for comment were unsuccessful.
Yerage received $1,377.06 in cash advances to attend conferences in 2005 and 2006. He did not provide the district receipts showing how those funds were used. The district also claims Yerage had $307.05 in unallowable purchases during seminars in 2002, 2004 and 2005.
“It’s disturbing to me to say the least,” board President Fred Mozzocio said. “I don’t think you should go on a conference if you don’t have the financial (means) to support everything that goes along with that trip.
“I don’t believe any board member should rely on the district to front them the money to make these types of trips.”
The state Auditor General’s office has regularly criticized the district over travel expenses involving board members.
New Castle received its greatest criticism over a 2002 conference trip to New Orleans involving retired assistant superintendent Nick DeRosa and three school board members. The state noted that the board members and DeRosa failed to register or pay registration fees. Their attendance at conference programs and events could not be verified.
In its December 2006 audit covering the 2003-04 school years, the state found 10 violations among the 19 travel expenses reviewed.
Calling the recurring findings an embarrassment, Superintendent George Gabriel on Dec. 16, 2006, banned conference and seminar travel for administrators. The board followed Gabriel’s example and prohibited its members from district-reimbursed travel.
“Our goal is to be ‘finding free’ in our next audit,” Gabriel said. “(Yerage) is supposed to be held to a higher standard.”
After attending two sessions addressing the district’s and state’s travel policies, administrators regained travel privileges on Feb. 20, 2007. The board has maintained its moratorium.
“I didn’t know about the report’s findings,” Yerage said in December 2006. “That was an oversight. I will pay the district back.”
Until last week, he hadn’t.Ambrosini said the district made several efforts to recoup the funds. When Yerage repeatedly failed to respond, Ambrosini and Gabriel sent a certified letter to him stating he had 20 days to make restitution or face collection efforts through the district judge’s office.
“You have failed and refused to provide receipts evidencing use of these funds for travel and conference attendance on behalf of the district,” the letter said. “Please be advised the State Auditors are aware of the circumstances and are requesting this matter be addressed without delay.”
Board member Philip Conti said Yerage’s travel troubles are somewhat of a surprise. Conti served as business manager at the Lawrence County Career and Technical Center during Yerage’s tenure there.
“When he was at the vo-tech, he did a lot of traveling,” Conti said. “As far as my memory serves me, there was never a problem.
“Obviously, he’s taken a different position since he became a board member.”
Mozzocio said Yerage’s actions tarnish the school system.
“Myself and many other of the board members have done our very best to restore the reputation of the New Castle Area School Board and the district. When things like this come out, it puts a shadow on us.
“It makes that black cloud linger, which we have fought very hard to get rid of.”
Copyright © 1999-2006 cnhi, inc.
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