Audit commends MRDD, suggests ways to improve

A state audit says Mahoning County MRDD should charge area schools $1 million more a year.

By WILLIAM K. ALCORN

VINDICATOR STAFF WRITER

AUSTINTOWN — A state performance audit determined that the 2-mill levy passed in the May primary election was necessary to keep the Mahoning County Mental Retardation and Developmental Disabilities program from running a deficit by 2009.

The results of the audit, which was requested by Mahoning County commissioners and cost the MRDD Board $67,000, were released Thursday.

A five-year financial forecast, developed as part of the audit, showed Mahoning MRDD’s deficit would have reached $16.7 million by 2011 without the revenue from the levy, said Larry Duck, MRDD superintendent.

What it recommends

The audit makes several recommendations to enable the Mahoning County MRDD to potentially save $570,000 a year in expenditures and increase revenue by $1 million a year:

UNegotiate agreements with school districts who send children to the MRDD’s Leonard Kirtz School for services: Additional revenue, $1 million.

UCompensate employees at levels closer to similar entities by no longer paying a portion of the employees’ retirement contribution: Savings, $289,000.

UEliminate two instructors: Savings, $136,000.

UIncrease full-time employee health care contributions to at least 12 percent: Savings, $75,000.

UIncrease part-time employee health care contributions proportionate with hours worked: Savings, $31,000.

Some will be difficult

Duck said the board will look carefully at all the recommendations of Auditor Mary Taylor, but also said many involve negotiations and are not immediately feasible.

For example, raising the cost to school districts for their students served by MRDD might cause them to withdraw those students from the program.

Regarding not paying part of employee retirement contributions, he said it would be tough if MRDD discontinues the practice but other public agencies continue it.

Duck acknowledged that Mahoning County MRDD wages are higher than those in the counties to which they were compared: Summit, Warren and Clermont.

“We pay good wages. It’s a way of retaining employees. It’s tough, important work,” he said.

The audit itself

Duck said the state auditors looked at five general areas: Finances, human resources, compliance with state and federal regulations, client services and case management, and the use of technology for more efficiency.

The superintendent said the audit commended the MRRD board for providing community access to planning meetings, maintaining positive fund balances each year from 2000 through 2006, and having health insurance premium costs that are comparable to relevant industry benchmarks.

Duck said the MRRD board has a policy of no deficit spending, and that the positive fund balances are due partly to a practice of setting budgets on available revenue and saving carry-over funds for long-term projects.

Duck said the board was also praised for absorbing a loss of $4 million in state and federal revenue in one year without incurring a deficit.

alcorn@vindy.com