Consultant among Affordable's top expenses

April 06, 2006


BY PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

(Fourth in a series)

While a nonprofit agency drifted toward insolvency, one of its consultants received more than $61,000.

Affordable Housing of Lawrence County paid Robert Ratkovich $61,659 over a two-year period. His consulting fees dealt with a proposed Union Township development, real estate acquisition and alternative site acquisition.

"He did all the leg work," Affordable Housing board member Donald "Ducky" Conti said. "We went on his recommendations.

"You can't blame Ratkovich (for what he was paid). He was doing what he was told."

Ratkovich also attended two housing conferences for which Affordable Housing paid $3,223. Ratkovich and Conti traveled to Harrisburg in 2004. Last year, he went to a seminar in New Orleans.

Expenditures involving Ratkovich represented Affordable Housing's second-largest expense in its short history. The agency spent $90,773 on a down payment and closing costs when it purchased seven properties in New Castle last year.

In contrast, Affordable Housing's first consultant, Roger Smith, earned $2,065 for work he performed in 2004. In its application for nonprofit status, the organization had budgeted $8,000 for consultant fees in 2004 and $9,000 in 2005.

"I'm not going to answer questions about earning a living," Ratkovich said when asked about his relationship with Affordable Housing.

Ratkovich, who is New Castle City Council's president, also serves as maintenance supervisor for the Lawrence County Housing Authority, which created Affordable Housing in August 2003. In addition, he is the consultant for Shenango Township's housing program, which the state is investigating.

Issues surrounding Affordable Housing have caused consternation for the housing authority's board, especially its president, Robert Heath. During recent board sessions, Heath has repeatedly questioned executive director Robert Evanick on the subject.

Evanick, who helped create Affordable Housing, resigned as its president in December.

A management agreement between the two bodies was supposed to have provided the authority with monthly reports regarding Affordable Housing operations.

"We were never given reports -- am I correct --as a board?" Heath asked Evanick after the authority's March meeting.

"Right," Evanick responded.

"We were never told about it," Heath continued.

Record-keeping was not Affordable Housing's strong suit. With the assistance of housing authority controller Holly Girdwood, the group produced one detailed report, which covered October 2003 through August 2004.

A review of Affordable Housing's meeting minutes from November 2003 to November 2005 showed that financial details received minimal attention. When accountant Deno DeLorenzo joined the group in January, he had to reconstruct Affordable Housing's finances.

His work ultimately created more questions than it answered.