OPEGA: No fraudulent spending at MaineHousing
According to a report released Friday, recent spending by MaineHousing shows no signs of fraud. The Office of Program Evaluation and Government Accountability, however, did find some expenses that "might be questioned as unnecessary."
OPEGA reviewed about $4.3 million in spending from 2007 to 2011 and found that all business expenses were legitimate and fell within the agency's mission and primary responsibilities. It did, however, call out some expenses not typical of other state agencies, including donations to advocacy groups, gift-card bonuses for employees and business meals not attributable to out-of-town travel. The report noted that, as a quasi-governmental agency, MaineHousing has not typically been required to hold to the same spending standards as state agencies, according to MaineToday Media.
OPEGA Director Beth Ashcroft recommended ways to increase accountability for the agency, including more detailed expense reports. The review into MaineHousing is still ongoing, and a public hearing before the Government Oversight Committee is scheduled for June 8.
OPEGA in March launched the investigation into MaineHousing per request of the Legislature. The agency and its former executive director, Dale McCormick, came under scrutiny by state Treasurer Bruce Poliquin and others, who questioned its spending on low-income housing. McCormick denied accusations that the agency improperly spent its money, but resigned in March to "bring an end to the current rancor."
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