Tuesday, November 7, 2017

Special Community Action Bd. Meeting

Barely a quorum of the Southeast Arkansas Community Action Board was on hand Thursday, October 31st to consider  a report from the Department of Health and Human Services Office of Inspector General.  The members discussed the finding of the OIG and talked about the actions that have been taken to correct the findings and how the agency should respond.

There were a number of findings covering the past several years and it appears the agency will have to remit back to the Head Start program $4677.00.  Most of the findings involved policy administration and timely financial reports.  The findings were listed as follows:
*Ineffective controls and accountability over assets
*Questionable methods used to allocate shared cost
*Governing body lacked required fiscal and legal expertise
*Unallowable costs claimed
A list of recommendations were made and this includes refunding unallowable cost.

The agency concurred with all the recommendations except the refunding of unallowable costs.  Their response indicated that $4677.00 should be reconsidered as allowable.  OIG maintains that the entire amount must be refunded.  The Southeast Arkansas Community Action Agency has stated they have either corrected all items listed in the findings of OIG or are in the process of doing so. No action has been taken to date concerning the unallowable cost.

The OIG review goes back to 2014.  It does not appear there is any indication of funds missing, just the improper expenditure of the $4677.00 of Head Start money.

The board was informed that a previous review of the agency by the State Department of Health and Human Services, that discovered the improper use of an agency credit card by a former executive director, has been turned over to the District Prosecuting Attorney for review.  The money was paid back by the former employee.

Board members were also informed that regional legislators have asked the Division of Legislative Audit to audit some or all of the agency's operations.

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