Federal audit finds problems at Fort Smith Housing Authority
by November 12, 2008 8:44 pm 88 views
News broke late Wednesday that the federal government is not happy with the financial and development practices at the Fort Smith Housing Authority.
More specifically, the Inspector General of the federal Department of Housing and Urban Development found some problems in how the Fort Smith Housing Authority built the North Pointe development. By way of reminder, the North Pointe development is the new housing area that replaced the antiquated Ragon Homes development in north Fort Smith.
Two key findings of the HUD audit, released October 22, are:
1. The housing authority “inappropriately placed its public housing assets at risk and could not support three procurements.” More specifically, the audit reports notes that the authority “cannot ensure it received the best price for more than $4.2 million that it spend for goods and services.”
2. The authority “spent more than $108,000 on questionable costs.”
The recommendations from HUD are minor and primarily procedural. For example, one recommendation suggests the authority “Implement written procedures and controls to ensure that its instrumentalities comply with federal procurement regulations.”
Another recommendation is that the authority “support or reimburse the HOME program $400,000 from nonfederal funds for unsupported procurement activities.”
Ken Pyle, executive director of the authority, told The City Wire that the report found minor and administrative problems only. The audit, which began a few weeks prior to Pyle being named executive director, contains no criminal findings and does not recommend sanctions, Pyle stressed.
“Their report (HUD) uses the mildest, most positive way to explain this,” Pyle said.
Pyle also thought it important that the media know that the North Pointe development is “fully occupied and cash flowing beautifully. This is not a story of money being used for projects that sit vacant.”
The full report, for those who want to reach their own conclusions, can be found here.