CINCINATTI EMPOWERMENT CORP. Review clears nonprofit of claims of misspending

The audit had contended the agency failed to produce results.
CINCINNATI (AP) -- A federal review of a nonprofit agency that oversees programs to revitalize poor neighborhoods has cleared it of claims that it misspent funds and failed to produce results.
The U.S. Department of Housing and Urban Development and the Office of the Inspector General have closed an audit of the Cincinnati Empowerment Corp. that began in 2002.
The congressionally mandated audit questioned whether the nonprofit misspent $15,364 in federal money on salaries and expenses not related to the empowerment zone.
The nonprofit agency was formed in 1998 to revitalize the poorest city neighborhoods by providing job training, jobs, housing and neighborhood development.
Audit's finds
The audit also reported that the agency failed to document an additional $311,346 in federal money and misstated the progress of 10 programs reviewed by the housing department.
It also claimed the Cincinnati Empowerment Corp. spent $594,462 on programs that weren't benefiting residents of the neighborhoods in the zone.
After a closer look at the audit's documentation, the federal agencies say they agree there was no wrongdoing.
The federal review said only $1,066 spent by the city on an arts program needed to be repaid.
The agency's executive director, Harold L. Cleveland II, said he feels vindicated by the latest findings.
"Any questions that there might have been have been laid to rest," he said. "We pride ourselves in personal integrity, professionalism and running a tight ship. We knew the documentation was there all along," he said.