STEUBENVILLE -- The Jefferson Metropolitan Housing Authority must reimburse the U.S. Department of Housing and Urban Development $751,349 for unsupported procurement and contracting activities.
JMHA Executive Director Debbie Bailey said Wednesday she was able to find documents that resolved $213,000 cited in a HUD Office of the Inspector General report that initially recommended the public housing agency pay the federal department $964,000.
"I received a letter from HUD this week saying we must pay the money back by June 30. We are now working on how we will take care of this issue," Bailey said.
She made her comments during the monthly board of commissioners meeting that saw several JMHA residents complain about a lack of security at the public housing apartments in Steubenville.
"We have no funds budgeted for security at this point," Bailey told public housing residents at the meeting.
According to the audit that was released in August, "The authority failed to maintain adequate documentation to support its procurements and ensure there were no real or apparent conflicts of interest in its contracting process. Additionally it failed to achieve the expected savings on its energy improvements. These weaknesses occurred because the authority lacked adequate procedures and controls to ensure it complied with HUD's and its own procurement requirements and a sufficient understanding of HUD's requirements for the administration of its energy contract."
The HUD Office of Inspector General said eight of 11 authority-procured contracts reviewed by the federal auditors were missing pertinent procurement documentation.
The audit report also noted a board member "had a business and personal relationship with at least one of the authority's contractors."
"The winning energy service contractor used the services of this contractor as a sub contractor to implement the authority's energy contract. We reviewed documentation in relation to the board member's voting on contracts for that contractor without disclosing details of the relationship to the board or abstaining from the voting process. According to the authority's procurement policy, no employee, officer, board member or agent of the authority should participate directly or indirectly in the selection, award or administration of any contract if a conflict of interest, either real or apparent, would be involved," reported the federal auditors.
"According to HUD, the authority was spending more for utility consumption than it was before the energy savings equipment was installed," according to the audit report.
The audit letter dated Jan. 12 listed corrective actions including:
-- Support or reimburse $751,349 from nonfederal funds for the unsupported procurement and contracting cited in this finding. The HUD letter called for the housing authority to "continue to research for the necessary documents to support the remaining procurements and expenditures cited," in the finding.
-- Submit a revised Energy Performance Contract to HUD's Energy Center for review and approval.
-- Develop procurement procedures to ensure fair, full and open competition. The procedures will be board approved.
-- Develop procedures to ensure objective decision making skills are utilized in the procurement process.
In other business Wednesday, attorney Robert Naylor, representing the Jefferson Behavorial Health System, requested access to board minutes from a meeting he said 10 project-based Section 8 vouchers were promised to the Lighthouse Haven project.
Bailey said she had talked to HUD and officials indicated no project-based Section 8 vouchers "would be handed out."
"I can't remember a vote on that issue being taken," said Commissioner Gerald DiLoreto.
Naylor told the board in November he had copies of letters sent to the Jefferson Behavioral Health System from former JMHA Executive Directors Joe Costantini and Dave Hindman, saying the JMHA would award 10 Section 8 project-based vouchers to the Lighthouse Haven project.
"Jefferson Behavorial used those letters to secure the financing to construct the Lighthouse Haven and we have been waiting for the appropriate paperwork to come from the JMHA. We need to know the status of those vouchers because it could lead to financial issues for my clients," Naylor stated in November.
The board also heard from community activist Royal Mayo who indicated he is interested in filling one of two vacancies on the board.
And, John F. Kennedy Apartment complex residents council President Marc Gregory requested photos to go with a list of people banned from the building, "so we know who is in our building who shouldn't be."
"If I can resolve any liability issues maybe I can get the photos and put them into a book for the residents' council and management," said JMHA Security Director Joe Buchmelter.