Forwarded by David Brauer, list manager
For Immediate Release: Contact: Tony Sutton
Thursday, May 29, 2003 (651) 282-6112
State Auditor Patricia Awada Releases Audit of Southside Neighborhood
Housing Services
State Auditor Finds Numerous Problems With Non-Profit Organization
(Saint Paul) - State Auditor Patricia Awada today released the results of a
contract compliance review of Southside Neighborhood Housing Services, Inc.
(SNHS). SNHS is a non-profit corporation that administers housing and
economic development programs for several neighborhood organizations in
south Minneapolis.
In October 2002, the Minneapolis Neighborhood Revitalization Program (NRP)
Policy Board requested that the Office of the State Auditor (OSA) perform a
contract compliance review of Southside Neighborhood Housing Services, Inc.
The Minneapolis Community Development Agency (MCDA) and the SNHS have
entered into numerous contracts that provided for the administration of
neighborhood NRP funds by the SNHS. NRP made the request for the review to
determine if SNHS was administering NRP funds in compliance with the terms
of their contracts.
Neighborhood contracts covered by this review were from the Bryant
Neighborhood Organization, Central Neighborhood Improvement Association,
Bancroft Neighborhood Association, and Kingfield Neighborhood Association.
The times of performance for these contracts ranged from October 1993
through December 2002.
The review found that there were numerous problems within SNHS. Funds were
used for ineligible purposes and recipients, numerous files lacked required
documentation, and financial management practices were questionable at best.
As a result of the findings from this review by the State Auditor's office,
SNHS has voted to dissolve as an organization. Additionally, Northside
Neighborhood Housing Services, Inc., who had been considering a merger with
Southside, canceled merger talks and instead asked to be allowed to expand
their service area to include the entire city of Minneapolis.
"Our office was pleased to be able to provide assistance to the NRP in
helping uncover the problems with Southside," said Awada.
"It should be noted that Northside Neighborhood Housing Services deserves a
lot of credit for being willing to step-up and fill the breach left by the
Southside organization's program and financial mismanagement," said Awada.
"NRP also deserves a lot credit for stepping forward and asking for help
when they suspected there may be a problem at Southside," said Awada.
"Minneapolis neighborhood associations and residents will be better served,
and taxpayer dollars better spent, as a result of NRP's willingness to ask
for this review. We are pleased the Office of the State Auditor has been
able to assist NRP, and the neighborhood organizations, to ensure that the
public funds are better spent."
The results of the audit are available on the State Auditor's website at
www.auditor.state.mn.us.
# # #
--------------------------------------------------------
Tony Sutton
Deputy State Auditor
525 Park Street, Suite 400
Saint Paul, MN 55103
voice / (651) 282-6112
fax / (651) 282-2391
TEMPORARY REMINDER:
1. Don't feed the troll! Ignore obvious flame-bait.
2. If you don't like what's being discussed here, don't complain - change the subject
(Mpls-specific, of course.)
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