The newly organized board of directors of the Developmental Disabilities Council requested the Office of the Public Auditor last week to review the financial transactions of the council amid allegations of fiscal mismanagement.
Pai yesterday said the board specifically asked his office to perform a “performance and financial audit” of the council starting with fiscal year 2006.
The audit will cover all funds, local and federal, used in running the program.
The Call-A-Ride program is being administered by the council using federal monies and fees collected from passengers.
The grant, which comes from the Federal Transportation Administration, was increased from $90,000 to $120,000 in the last two fiscal years.
The Fitial administration believes that the management and operation of the program should be transferred to a non-profit group through a bidding process.
During a recent meeting, the board suspended the council’s executive director Tony Chong for 30 days pending the investigation to be conducted by the board, which named Derek Duenas as the new chairman.
Pai said OPA is now gathering preliminary information from council officers and personnel.
“We had a meeting with the board [last Monday] just to gather some information. They recommended that we go to the DD office to get more information on how funds flow works. From there, OPA will decide how to conduct the audit,” Pai told Variety yesterday.
He said conducting a separate financial audit for the program is unusual.
“It’s only because of a request that this specific audit for the council comes about because it has always been part of the single financial audit of the executive branch,” he said.
Pai cannot say how long the audit will take place, adding that recommendations will be part of their findings.
“Every audit report comes up with recommendations…and that’s what the board can expect from OPA on this specific request,” he said.
According to Pai, the “board wants to know how the program funds flow and what are its transactions to make sure that grant monies are properly accounted for.”
The Board of Education during its meeting last week expressed concern with the “issues” faced by the Developmental Disabilities Council, which BOE “entrusted” with a portion of a federal grant awarded to the Public School System.
The grant used by the Call-A-Ride program came from the federal funds appropriated for the procurement of school buses and vans.
PSS transferred the funds to the DD Council for its buses.
BOE Vice Chairman Herman T. Guerrero said they want an “assurance” from the council that these funds are being “handled wisely.”
