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Published April 02, 2008 10:59 pm -

Area official would like RPC money returned
Davis County Daycare one project that used CDBG money

By SCOTT NILES Courier staff writer

OTTUMWA — At least one area official said he’d like to see some of the money returned for a community project administered by the Area XV Regional Planning Commission.

Allegations surfaced this week the RPC had overbilled 21 communities involving Community Development Block Grant projects following an examination of the RPC’s books by the State Auditor’s office.

The findings of the audit indicate that communities were overbilled by $91,177 during a time period between July 1, 2000 and June 30, 2006.

Bloomfield City Councilman and Davis County Daycare Liaison Jerry Kincart said he only learned about the audit findings when he read Wednesday’s Courier.

“We haven’t been told anything yet,” he said.

Kincart said the Davis County Daycare was one of the projects built using CDBG money and administered by the RPC. In the auditor’s report, the daycare was overcharged nearly $8,700.

The daycare has had a rough beginning finding enough students and has faced closure over the past two years since its opening. But guidelines set within the CDBG application indicate the facility must remain open for at least five years or the city will be responsible for repaying all of the grant funds.

“If we got the money back that we were overcharged, I think that would help,” Kincart said.

The city of Bloomfield was not alone.

Several area cities and their community projects are listed in the auditor’s report including Albia, Birmingham, Centerville, Eddyville, Fairfield, Hedrick and Moravia.

The funds that were granted by the CDBG included housing development and rehabilitation projects, water and sewer projects and community facilities.

As for the next step, State Auditor Dave Vaudt told the Courier that his office has turned over its findings to the Iowa Attorney General’s office, where officials there said the matter is under investigation.

While Kincart spoke, other community officials told the Courier they wanted to gather more information before they’ll speak on the matter.

“The only thing I can really say right now is that I would like to see the audit and get a little more information before making an official comment,” said Fairfield Mayor Ed Malloy.

The audit indicated that the overbilling was the result of RPC Executive Ellen Foudree allegedly altering timesheets and charging the maximum allowed for CDBG projects.



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