Area official would like RPC money returned

By SCOTT NILES Courier staff writer

April 02, 2008 11:59 pm

— 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.
According to the report, Vaudt said CDBG guidelines indicate projects are only supposed to be charged for the expenses incurred.
The matter was originally brought to state officials' attention by a lawsuit filed by a former Area XV RPC housing director. But the Courier has also learned that three former RPC board members, including Mike Petersen, Dean Kaster and Denny Ryan, began looking into the issue further and eventually made their concerns known to the Attorney General’s office.
“The people on the board are good people, but they didn’t know what was going on,” Ryan told the Courier Wednesday.
He said once he, Kaster and Petersen discovered inconsistencies over billing issues, they tried to get answers from RPC administration.
“We [resigned] from the board when we couldn’t get any answers from anyone,” Ryan said, singling out Foudree. “We were concerned and I’m glad this report finally brought something to light.”
Area XV RPC Board Chairman Lawrence Rouw told the Courier Wednesday that there’s a possibility that he and other board members will call for a special meeting between now and the next regularly scheduled meeting on April 22.
He said he wants to speak with all board members before any decision is reached.
Rouw also said he has spoken with Foudree about the state auditor’s findings but declined to specify what they discussed.
Foudree told the Courier late Wednesday that she had seen the auditor’s report but was not able to comment at this point due to confidentiality issues with the lawsuit from a former employee and pending the board’s findings in the audit.
“I’m not able to offer any official comments at this time,” she said. “But this will be an ongoing process.”
Scott Niles can be reached at (641) 683-5360 or via e-mail at sjniles@mchsi.com.