Tuesday, May 15, 2012

Manhattan, Kansas Housing Authority Flunks Federal Audit

A recently released stimulus funding audit at the Manhattan, Kansas Housing Authority reveals that the local agency overspent by 19.4% on an improperly issued change order for ductwork insulation asses to a housing contract for renovation of unit HVAC and water heating equipment, and overstated the jobs created by the project by 37.9% in reporting project data to the federal recovery.gov website.

US HUD’s Inspector General audited the Housing Authority’s use of nearly half a million dollars in federal Recovery Act grants and found that the agency improperly issued a change order increasing the scope of work to include duct insulation for an additional cost of $53,220.00 without taking competitive bids, and giving an improperly documented change order to the contractor already on the job for an price inflated by as much as $10,340.00 in undocumented overhead and fees as a result of the Housing Authority’s lack of written procedures for processing contract change orders.

The audit also revealed that the agency reported its project had created 37.9% more jobs than were actually produced by the half million dollar expenditure. With this kind of inaccuracy from local governments who were awarded stimulus grants designed to improve local area employment, it’s no wonder our political leaders can’t agree on how to go about stimulating further economic growth.

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