Housing authority overspent budget in 2010 by 11%

Published 11:40 am Wednesday, October 19, 2011

A $19,000 bill for the Vicksburg Housing Authority’s fiscal 2010 audit and $218,000 for capital projects at two housing complexes topped a list of eight budget variances in a letter from the U.S. Department of Housing and Urban Development to the VHA Board of Commissioners.

Board chairman Christopher Barnett Sr. said the variances are based on HUD’s comparison of the housing authority’s fiscal 2009 and 2010 budgets. He said the comparison indicated the board overspent its 2010 federal budget by an average of 11 percent, compared with 2009.

HUD funds provide the bulk of the VHA’s operating revenues. He said the board can explain the differences.

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He said after the board’s meeting Tuesday night that the items involved money spent during the transition between boards in the wake of the firing of former director James Stirgus Sr. in July 2009.

Stirgus was fired by the board in the midst of a turbulent six-month period that followed the arrest of housing authority maintenance superintendent Charles Jones Jr. for possession of cocaine in December 2008. Barnett was a member of the new board appointed by the Board of Mayor and Aldermen in the wake of Jones’ arrest.

Barnett said most of the items outlined by HUD involved variances of less than 5 percent. He said the audit fee and the capital expense were the largest items.

He said VHA paid $4,000 for its fiscal 2009 audit. He said the board hired a new accounting firm for the 2010 audit after Sturgis was fired.

“We wanted to make sure we had a good, complete audit,” he said of the cost.

Barnett said VHA spent $218,000 in 2010 to repair erosion problems at Urban Court on Drummond Street, and Valley Court on Clay Street. He said the housing authority spent $130,000 on capital projects in 2009.

“We also had another question about an increase in our payroll,” he said. “We hired a certified air conditioning technician. We did not have one on staff, and HUD suggested it. Before we hired him, we were contracting that work out.”

“We actually saved money,” board member Abraham Green said.

In another matter, Barnett said the board expects to have a new executive director hired in November.

“We have narrowed the group down to 15, and we hope to have it reduced to five,” he said.

In other action, the board:

• Approved the financial reports for August.

• Learned that the projects to replace security screens and storm doors, and install cluster mailboxes at Rolling Acres in north Vicksburg are under way.

• Approved writing off six stoves and two refrigerators that had to be replaced.