City and CAO cleared by HUD audit
Published 12:00 am Thursday, November 6, 2003
Sometimes it takes a while for the truth to come out.
At least that is the way officials for the City of Ironton and the Ironton-Lawrence County Community Action Organization said they felt after the U.S. Department of Housing and Urban Development cleared both of allegations that HUD funding was misused
Mayor Bob Cleary received an Oct. 28
letter from Lana J. Vacha, director of HUD's Office of Community Planning and Development, stating that the audit was officially closed in August 2003, more than three years after it began.
"Our office would like to extend our gratitude to you and your staff for the cooperation and extensive efforts that were devoted to resolving, in a satisfactory manner, the OIG's audit findings," the letter stated.
In 1999,
HUD officials received an anonymous complaint alleging the city and the CAO, who administered the funds, misused Community Development Block Grant money.
The complaint was based on information that came from HUD's Internet map that identified projects in inaccurate areas throughout the city.
HUD investigators began a 14-month audit, which included an examination of paperwork dating back to 1992.
Over that eight-year period, from October 1992 to June 2000, the city received more than $3.6 million in block grant funds.
Neither city officials nor CAO officials were found to be responsible for the inaccurate map information that HUD meant only to be as a general guide, not precise locations, said Ralph Kline,
community development director for the CAO.
Though the audit originally indicated that the city may be asked to reimburse more than $250,000, the city did not have to pay back any funds because all the paperwork was produced to prove the funds were spent properly, Kline said.
Kline said that some of the issues were small and others were legitimate concerns with the contractors that needed corrected and documented.
"Basically, it was an audit where they were in here over an extended period of time," Kline said. "When it all came about, with providing the documentation, there were no findings and all the funds were properly accounted for."
Mayor Cleary said late last week that the resolution is good news for the city and that he is excited to see the city and CAO vindicated.
"There were some false accusation made against the city," he said. "Any time an agency is contacted regarding improper allocations of funds, they have to investigate."
The worst part of the investigation is that it cost the CAO thousands of dollars in a time that could have been spent on other projects, Cleary said.
"The CAO spent a lot of valuable time doing research on these accusations that could have been spent on community development and helping the community," Cleary said. "I am glad to see that it is behind us and we can close the chapter and move forward."
Hugh Donald Scott served on council during the time when the audit began and was one of the councilmen who supported the investigation. Scott agreed that it is good news that the issue has been resolved, but he also stood by the need for the investigation in the first place.
"If something is incorrect, it needs to be corrected. Evidently, it was," Scott said. "When there is a misunderstanding or a need for clarification, it needs to be pursued to the utmost and needs to be addressed. It is a win-win situation for everyone."