FARMINGTON -- Area Agency on Aging of Northwest Arkansas is now taking care of senior centers in a six-county region in this area, after Northwest Arkansas Economic Development District of Harrison terminated its contract in late March, according to Jerry Mitchell, executive director with Area Agency on Aging.
"It's been a real smooth transition," Mitchell said last week. "We took it over and rode on with it."
The agency assumed responsibility April 1.
The six county area is Washington, Baxter, Boone, Marion, Newton and Searcy counties, and includes Lincoln, Prairie Grove and Farmington senior centers.
Mitchell said Area Agency on Aging already owned most of the buildings and all the equipment used by the senior centers but contracted with the economic development district to take care of services, such as hiring and paying employees, contracting with food vendors and paying bills, for 12 senior centers and two adult daycare facilities. The contract is usually renewed every three or four years but Area Agency has had an arrangement with the economic development district for about 35 years, Mitchell said.
The district's annual budget to run the centers is about $4 million, which includes $2 million in federal and state funding and $2 million raised by the senior centers through donations, grants and fundraisers. This money is used for food, personnel, transportation costs, utilities, training, fees and licenses.
Mitchell said the agency's Board of Directors has some questions about the funding provided to the economic development district and will contract with a firm to audit the district's 2012, 2013 and 2014 financial records.
"There are some questions about some of the funding and if it was being used like it was supposed to be used," Mitchell said.
Area Agency's board passed a resolution March 6 directing Mitchell to send the economic development district a letter requesting a copy of its 2012 audit as required by the contract between the two organizations. Mitchell said he had been requesting a copy for several months.
If the audit was not forthcoming, the letter indicated the development district would be considered out of compliance of its contract. Mitchell said the letter also informed the district that Area Agency would order its own audit of the district's financial books.
Mitchell said he received the 2012 audit but also received a notice that the district's Board of Directors was terminating its contract with Area Agency on Aging.
Mitchell said there are several instances with the economic development district that concern the agency's board. One is that about $123,000 has been raised for remodeling projects and the board wants to make sure the money is still there. Another question is about whether some bills were paid.
He said he has received calls from senior centers in the past about utilities being turned off and bills not being paid.
Mitchell said he is not saying that anything was mismanaged, just that the board wants to make sure money "was applied the way it was supposed to be applied."
He added, "I don't want to accuse the district of anything until we know for sure what it's all about."
Mike Norton, executive director of Northwest Arkansas Economic Development District, said Thursday he is "very confident that funds have been used appropriately and within the guidelines of the program."
Norton said the district does not have a problem with Area Agency on Aging conducting its own audits of the district's finances.
"That's certainly within their prerogative to do that," he said, adding, "We have an annual audit every year."
Norton said the district's Board of Directors decided to terminate the contract to run the senior centers and adult daycare centers because senior services do not fit within the district's goals anymore.
"None of the other development districts are involved in aging programs and it became difficult to administer," Norton said. "They chose to transition it to Area Agency on Aging."
The district's main focus is economic development in the region, along with administering grants and workforce training, Norton said.
"Our focus is always and has been economic development. Education and economic development go hand in hand," Norton said.
Mitchell said senior adults should not see any differences going on at the senior centers. He said Area Agency on Aging hired the majority of the staff already working at the senior centers. Only five out of 85 employees did not come to work for the agency, Mitchell said.
"We had a plan in place in case something like this happened. We activated our plan and it seems to have worked pretty good," Mitchell said.
General News on 04/16/2014