Posted by the Asbury Park Press on 06/9/07
BY NANCY SHIELDS
COASTAL MONMOUTH BUREAU
ASBURY PARK The city Housing Authority should pay back at least $1.6 million
to the
state Office of Public Housing for mismanaging the maintenance of its housing
units and
for unreasonable employee compensation, according to a federal audit.
The audit, issued May 24 by the U.S. Department of Housing and Urban
Development's
Office of Inspector General, says the authority did not have procedures set to
contain
administrative costs, repair and improve properties in a timely manner and buy
equipment
such as interconnected smoke detectors at a lower price suggested by architects.
"As a result $692,990 in capital funds was used for ineligible expenses,
$721,701 was not
obligated in a timely manner, and the funds were not available to address the
authority's
needed capital improvements," the audit says.
It also said the authority failed to reduce the salaries of employees who were
demoted,
and paid maintenance workers for ineligible and overtime expenses that exceeded
budget
limits.
HUD asked that the authority repay $190,339 for excessive employee compensation.
Rudolph Pierre, the authority chairman, characterized the report as unfair and
said the
authority is appealing the findings.
"They are totally wrong," Pierre said of the federal auditors. "They're wrong
by . . . making
a recommendation to HUD to micromanage the housing authority."
The audit states: "The authority does not have adequate controls in place to
ensure that its
preventive maintenance program is effective.
"This inadequacy occurred because the authority's staff was not skilled enough
to
complete some repairs, and the repairs were not inspected to ensure that they
were
adequately completed."
The inspector general's report said the audit was undertaken late last fall
after a request
by the HUD Newark Field Office director "who was concerned about the physical
condition
of the units and mismanagement at the Housing Authority of the City of Asbury
Park."
Eighteen of 20 units that were inspected Oct. 6, 2006, had violations such as
unsecured
and damaged fixtures, unhealthy plumbing problems, unsafe windows and doors,
inoperable cooking equipment and damaged structural items, the report says.
The audit points to management problems under the last two executive directors
Harold Phipps, who was hired in March 2002 and fired in December 2003, and
Stanley
Smith, who spent several months under an interim director, William Reid, before
being
officially hired as executive director in July 2004.
Last week, Smith announced he was resigning as of July 31 for health reasons.
Authority
officials said he was on vacation in Bermuda this week and could not be reached
for
comment.
Thomas Furlong, the authority's accountant, said a key item in the audit was
the authority
not meeting a May 30, 2004, deadline to have obligated or spent funds for
certain capital
improvements.
"There was a change over from the time when Mr. Phipps left and Mr. Smith took
over, and
the housing authority tried to extend that deadline, and HUD didn't let them,"
Furlong
said.
The authority now contends that if it is penalized for not getting the money
spent in time,
it should have to pay just a small portion of the amount, and not the full
$721,701 the
inspector general is requesting.
The audit says the authority asked HUD to extend the obligation deadline from
May 30 to
Oct. 30, 2004. The request said that "the previous executive director (Harold
Phipps) has
mismanaged the authority's public housing capital fund program and that the
program's
records were difficult to locate and understand."
The types of contracts the authority entered into after May 30, 2004, were for
roofing
services and installation of fire and emergency systems that were being carried
out too
late, after the 24-month period when the funds were approved.
"As a result, needed capital improvements were not made in timely manner," the
audit
says.
The audit also says the authority paid $126,428 for interconnected smoke
detectors
instead of a more reasonable price determined by external architects and
planners.
It says, too, that in October 2004 under Smith, the security director's
position was given to
an individual from Orange. The person who had been security director was
demoted to
security guard but with no decrease in pay.
In addition, the audit says that from April 1, 2003, through March 31, 2006,
the authority
made $65,312 in payments to its maintenance personnel for overtime hours that
may not
have been in accordance with the contract between the authority and maintenance
employees.
On Friday, a spokesman for the HUD Newark Field Office said his office and the
Office of
Inspector General will review the findings and the information provided by the
housing
authority.
The Newark office will reach a management decision on the findings within 60
days of May
24, when the report was issued, the spokesman said.
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