CSA Followup to Problems at the Nicholas County Community Action Association, West Virginia

GAO reviewed the effectiveness of Community Services Administration (CSA) Region III efforts to correct management and financial problems at the Nicholas County Community Action Association. A CSA investigation had reported that the Association: (1) was maintaining and using an unaudited, income-producing account without the complete knowledge, approval, or control of its board of directors; (2) employed an Executive Director and another staff member who were receiving salaries from multiple sources; (3) used questionable bidding and procurement practices for large capital expenditures; (4) was making loans of funds and property that were contrary to CSA regulations; (5) had a board of directors that was not viable and served only as a rubber stamp for the executive director's will; and (6) had its Department of Labor employment program terminated because of a lack of fiscal controls, falsified documents, and the use of ineligible enrollees.