Howard?s Housing Commission lacked the staff and procedures to ensure proper financial controls, according to an outside audit released Tuesday.
But although the commission?s books were a mess, evidence of fraud does not exist, officials said.
“We?re in good shape financially,” said Housing Director Stacy Spann.
“The audit points to administrative challenges, [and] we are racing to address them.”
The audit, performed by Clifton Gunderson LLP, reviewed the commission?s finances for the year ending June 30, 2007. The Housing Commission, the county?s housing authority, which owns and operates affordable housing, ended the period with assets of more than $22 million.
The audit took longer than expected because the financial records were in such bad shape, said County Executive Ken Ulman, who commissioned the review last spring in the wake of rising criticism over the commission.
“I just didn?t have a real good level of confidence in the way the Housing Commission was being operated,” Ulman said, adding no single incident prompted the audit.
He replaced Housing Director Leonard Vaughan and Deputy Director Neil Gaffney soon after taking the helm in December 2006.
The audit was a “good starting point” for the commission, Spann said, and housing officials have begun to reorganize the commission, putting in management controls and training additional staff.
For example, instead of having a single staff member in charge of the finances, several staff members have been trained for these responsibilities, Spann said. The commission added seven staff members and is requesting another 10 positions.
The commission also has updated the software, and the financial and administrative staff members report to an administrative officer for the commission and the Housing Department. Officials also have merged property management and maintenance offices, and added an inspector and regular staff reviews of the commission?s properties.
