Reeves County nonprofit relinquishes $1.6 million in contracts
The board of the Community Council of Reeves County voted Thursday to relinquish four of its major contracts to the Texas Department of Housing and Community Affairs, which will result in the ultimate closure of the nonprofit agency.
The CCRC is turning over a total of $1.6 million in contracts from the Community Services Block Grant, which pays for salaries and operating costs; two weatherization programs, which assist clients in installing energy efficient appliances and the energy assistance program, where funds are used to pay client’s utility bills. The TDHCA administers the funds for the programs.
“It won’t affect our clients and there will be no interference of services,” said CCRC Executive Director Mary Jane Rios. “We are still here to help them (TDHCA) through the transition process.”
After an audit conducted in April and May, the TDHCA cited the CCRC for possible fraudulent activities and financial mismanagement. The agency was flagged for more than $186,000 in disallowable expenditures and more than $6,000 in questionable costs.
So far, no criminal charges have been filed as a result of the audit findings, TDHCA officials said.
“Should the dialogue with the agency get to that point, we certainly could report our findings to the state auditor’s office or the proper law enforcement agency,” said Gordon Anderson, public information officer for TDHCA.
Three other area nonprofit agencies are being considered to take over the contracts – West Texas Opportunities in Odessa, Big Bend Community Action in Marfa and Pecos County Community Action in Fort Stockton. The TDHCA governing board will vote on which agency will take over the contracts on July 28.
“We are working diligently right now to see if we can get another agency to take over the contracts,” Anderson said. “We are working very hard to limit any gap in services.”
The CCRC, which opened in 1966 and is based in Pecos, provides assistance to 300-500 low-income households annually in Reeves, Ward, Winkler and Loving counties. The CCRC offers energy assistance programs, education and re-training programs, weatherization and assistance with purchasing and installing appliances.
The board did not vote on the date the CCRC will close its doors, but Rios said the agency should close by Oct. 1. So far, eight employees have been temporarily laid off, said Rios, who will also lose her job when the CCRC closes. Rios has been executive director for the past 13 years.
The TDHCA report, presented last week to the CCRC board, alleges that documents were destroyed, an employee who was not eligible for leave pay was paid for three months, fraudulent expenses were listed on financial records and there were questionable signatures on payroll checks.
In addition, a letter dated June 24 from Michael DeYoung, division director for the community affairs division of TDHCA, cites a lack of management and executive oversight, which led “to opportunities for waste, abuse and possible fraud in the administration of the TDHCA programs without adequate internal controls to mitigate those risks.”
The CCRC is still operating and assisting clients Rios said.
“We are still taking applications - we get all the documentation that is needed so that the entity that takes over will be able assist the clients,” Rios said. “We have volunteers who are manning the office.”
Meals on Wheels continues to operate through the CCRC, Rios said. The contract for Meals on Wheels ends Sept. 30.
“We are also working with local entities to try to find someone that will continue that contract,” Rios said.
Anderson said TDHCA is monitoring CCRC as the agency moves toward closure.
“Our relationship with them will continue with them as they wind down,” Anderson said. “There must be a final accounting, there is equipment that our funds that we have helped pay for. It is a big undertaking to help them wind down and transfer these contracts.”
BY THE NUMBERS
The following are contract amounts for the Texas Department of Housing and Community Affairs (TDHCA) programs administered by Community Council of Reeves County, as well as balances current as of today.
Program Contract Amount Contract Balances 7/14/11
1. Community Services Block Grant Program $131,028.01 $29,887.36
2. Weatherization Assistance Program $110,729.00 $110,729.00
3. ARRA Weatherization Assistance Program $800,361.00 $191,476.80
4. Comprehensive Energy Assistance Program $650,462.00 $515,758.49
5. TOTALS $1,692,580.01 $847,851.65
Source: Texas Department of Housing and Community Affairs
