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Financial operations, programs improve at MYCAP, state reports
YOUNGSTOWN
The Ohio Department of Development has completed its financial review of the Mahoning-Youngstown Community Action Partnership and says the local agency is on the right track toward correcting fiscal and system shortcomings.
Money is flowing, and services are being provided, but the department will continue to communicate with and monitor the local agency, said Bill Graves, director of DOD’s Community Development Division.
MYCAP is a nonprofit agency that administers 11 programs in Mahoning County to help poor and disadvantaged people.
In a Dec. 22, 2010, letter, the state agency said it had accepted MYCAP’s explanation of most of the actions that caused the investigation but said MYCAP must repay $1,978 in disallowed costs to the state.
In a letter to MYCAP dated Sept. 15, 2010, DOD required MYCAP to respond in writing to issues and findings, including $78,256 in questioned costs.
Among what DOD labeled unreasonable charges to various grants were $73.90 for flowers from Edwards Flowers; $160 in food costs at Caf Cimmento when an employee was not in travel status; and a $50 reimbursement for meals that were provided as part of a conference.
The initial department review also questioned former MYCAP director Richard Roller III’s use of an agency vehicle from April 2009 through April 2010 while at the same time he received a $938-a-month salary adjustment, totaling $11,725, in lieu of a car allowance.
But in its final report, the department said that “lacking evidence to dispute the intention of the [MYCAP] Board of Trustees, the response is acceptable.”
Roller was placed on unpaid administrative leave in April and fired in May 2010 in the wake of DOD’s investigation into whether the nonprofit organization misappropriated funds and resources while he was its leader, including weatherization work done at his home.
“We’re comfortable with MYCAP Interim Director John Wilson and his team,” Graves said. “They seem to have their arms around everything there. However, we want to continue weekly dialogues with MYCAP and other agencies that have questioned MYCAP actions.
“Our goal is to ensure that proper systems and internal controls in place and MYCAP is on sound fiscal footing,” he said.
In November 2010, the MYCAP board signed a three-month, $230,000 contract with Progress Resources Inc., a nonprofit training and technical-assistance organization that provides consulting services to community-action agencies nationwide, of which Wilson is president.
Wilson said the primary jobs of his firm is to head a search committee for a new, permanent executive for MYCAP.
Wilson said DOD has accepted MYCAP’s proposed corrective actions. And he noted that MYCAP responded to audits concerning fiscal reporting and records conducted by other state agencies.
Wilson said, however, the deadline passed to respond to an Ohio Department of Education audit. He said his team feels the funds were properly used. However, because the agency didn’t comply with reporting and processing procedures in requesting budget revisions and didn’t meet the response deadline, the issue rose to a formal review.
There is less chance for negotiation and it may have to be settled in the courts, Wilson said.
“From MYCAP’s perspective, we are now prepared to move forward with DOD. Issues have been resolved and we are looking at the future, not at the past,” he said.