Philip D. Brown

Richmond County Daily Journal

The Rockingham Housing Authority Board received an audit of the agency’s financial transactions and practices for 2008 Tuesday, and the promise things are going to change.

Among the things slated for alterations: the use of contracted workers and the bidding process to hire them, stricter oversight and possibly more restrictions on the use of the public credit card.

RHA Interim Director Jim McCaskill presented the board with a copy of the audit and an accompanying list of “highlights,” which he read through and explained as part of the staff report on the meeting agenda.

There were seven items from the 33-page report McCaskill discussed at some length with the board. Many of the items dealt with the way employees are classified and paid, and board control over the purse strings.

First, there was a decrease in the unrestricted cash balance of more than $53,000 for the 2008 fiscal year. This figure represents roughly 11 percent of the agency’s fund.

“You may look at this and start to wonder, why is there a reduction in available cash?” McCaskill said. “I can tell you that I’ve been able to find that part of it was increased personnel cost.”

At another point, McCaskill noted the recommendation of the auditor to reduce expenses and maximize efficiency.

“This is from their history working with federal and government agencies, that they historically under-fund programs,” McCaskill said. “You can’t expect increasing sources of revenue. We have to find ways to reduce expenses ... If you were to give a mission statement to your new director, this needs to be a big part of it.”

The fifth page of the report discusses increased expenses in the areas of administration, tenant services, utilities, ordinary maintenance and general expenses for 2008.

On page 16, the audit notes Gracie Ingram, as the acting executive director of the RHA, contracted her daughter for office assistance in the amount of $7,650.

While an official can contract with a relative, the move requires the approval of the board for compliance.

Finally, the auditor notes deficiencies in internal control over financial reporting. The auditor wrote in the report she’d sent a letter to Ingram on March 24, identifying these deficiencies, and a list of corrective actions were listed in the audit report.

The auditor’s report also outlined the facts the capital fund increased “significantly” during the year, and the RHA has no outstanding debt.

During the entirety of the meeting, McCaskill discussed ways to restructure the normal day-to-day functions of the Housing Authority to provide more transparency and administrative organization.

During a discussion of the personnel policy, the interim director pointed out many inconsistencies with the policies and practices of the RHA, and identified such problems as an old time clock that doesn’t work properly and restricted access to the clock for employees who work after 4:30.

In addition, he noted that the office is supposed to run from 8 a.m. to 4:30 p.m., but employees have been getting off at 4, and taking lunch. This would account for a seven to a seven and a half hour day rather than an eight hour day.

However, the board showed the most curiosity in discussion considering the distinction between contract and regular employees.

At one point, Board Attorney John Daniel asked McCaskill to explain what a contract employee is.

“It is someone who is hired to serve a function, rather than being a full-time employee,” he explained.

As the discussion grew to include other board members, McCaskill explained his task in restructuring the RHA.

“What we’ve tried to do is make major changes — be they good, bad or indifferent,” he said, and explained the need for purchasing warrants and guidelines on how money can be spent.

“As for contract work,” McCaskill continued. “It may be that we need that work done, and the maintenance department may not be able to do it with the staff they have. Then, we need to bid the work out and get a competitive price. People have been working basically as contract employees, rather than saying ‘I’ll paint that house for $1,000.’ There needs to be a process of documentation.”

Board member Denise Sullivan then posed the question, “What is the job description of maintenance?”

She explained her concern with the nature of the work of the contract employees, citing trash pickup.

“I think I’ve gotten rid of a lot of that stuff,” McCaskill respond. “These guys were showing with a bucket and a little picker-upper saying, ‘I’m here to pick up trash,’ and the maintenance people were telling me that as they drove around they were picking up trash.”

McCaskill went on to break down how many employees there are at the RHA for the board, describing overlapping duties, and at least one office employee with no real job description or training.

He reported a lack of basic personnel files and any way to determine how people accrue annual sick leave.

“We can get this thing turned around, but it’s going to take a culture change over there,” McCaskill said.

Another concern was raised over the administrative composition of the 21st Century Grant Program, and a lack of insurance for the transportation of children to and from the after school program.

The administrative chart was compared to the one contained in the federal Department of Housing and Urban Development’s chart that came with the grant money, and it was determined it may be the same but it was unclear.

“I also noted in my report the program was recognized during a recent year-end program for its exemplary performance, and has received a $10,000 grant for an abbreviated summer program,” McCaskill said.

McCaskill also pointed out personnel policies such as credit card policy and conflicts of interest.

After in excess of an hour of open discussions, the board’s only action was to adopt the expenditures of April from the RHA’s accounts. This session was followed by in excess of two hours of closed session, after which the board adopted minutes from a previous closed session.

In other business:

n The board discussed a deadline for applying for nearly $500,000 in 2009 stimulus funding.

McCaskill said the agency would do everything it could to meet the federal deadline, or possibly play with the date.

“There are big things, I think good things, on the horizon for us,” McCaskill said. “We should have them ready for bid by November, then the idea is the work could be completed in 12 months.”

The money would go toward the completion of a suspended roofing project, HVAC upgrades and renovations of the kitchens and bathrooms in the RHA’s rentals.

n RHA Board Chairman Ed Ormsby formally announced to the board he would not seek a second term as chair.

McCaskill has previously said he is not pursuing the position of permanent director.

n Community members Earl Bostic Sr. and James Hand attended the meeting, and Bostic voiced his concern community youth be allowed to utilize the gym at Falling Creek to play recreational sports.

The 21st Century After school Program currently operates there from 4 to 7 p.m. on the weekdays.