Newton Independent
An agency that provides services to needy Jasper County elderly residents was taken to task in a state audit report that found its practice of prepaying expenses rather than returning unspent balances to state and federal funding sources did not comply with regulations.
Aging Resources of Central Iowa, which provides services to residents of Jasper, Boone, Dallas, Madison, Marion, Polk, Story and Warren counties, was targeted in a probe by State Auditor David Vaudt that was requested by one of the agency's primary funding streams, the Iowa Department on Aging.
Vaudt's report, released Wednesday, found that Aging Resources of Central Iowa (ARCI) had a practice of prepaying expenses by establishing accounts with vendors and purchasing gift cards with funds available at the end of the fiscal year in an effort to avoid returning unspent program funds to the Iowa Department on Aging (IDA).
"ARCI avoided returning $180,422.91 to IDA for fiscal years 2006 through 2009 and at least $4,000 prior to fiscal year 2006 by establishing the prepaid accounts," Vaudt's audit report states.
Of the total, $143,422.91 were payments to vendors to establish accounts from which future goods or services could be purchased. The remaining $41,000 was used for the purchase of gift cards which were to be distributed to clients at a future date. More than $171,000 was from state funding sources, with the remainder coming from federal sources.
"The balance of gift cards and payments to vendors remaining at June 30, 2009 total $88,199.14," the report states. "While these funds should have been returned to IDA at the end of the appropriate fiscal year, available records sow the accounts established with the vendors were subsequently used for program purposes. However, it is not possible to determine how the gift cards were used."
At the request of IDA, ARCI repaid $67,137.87 to IDA and contacted 10 of the vendors which had received prepayments and requested any unspent portion to be returned. As a result, $44,894.95 was returned to ARCI from nine of the 10 vendors contacted.
IDA policy states that funding awarded area aging agencies are available for the purchase of goods and services from July 1 through June 30 annually.
"Because the prepayments made by ARCI were not for goods and/or services received during the given fiscal year, the prepayments identified do not comply with either state or federal regulations," the report states.
State area aging agencies provide a variety of services to the elderly with the greatest economic or social needs. Services include such things as meal sites, nursing and homemaker services, congregate meals, respite care and transportation services.
A copy of the audit report can be read here.
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