Allegheny County Controller Mark Patrick Flaherty yesterday issued a report showing that the Community Empowerment Association, an agency contracted to operate a truancy-prevention program, misused more than $300,000 of a $1.5 million contract with the county Department of Human Services.

Founded in 1994 as part of an effort to reduce and prevent violence in Homewood and Brushton, the agency is under a county contract to operate a truancy-prevention program and a life-skills support program for African-American youth, known as Asante Nation -- Rites of Passage Experience.

From July 2007 through June 2008, the agency, which is still operated by its founder, longtime community activist T. Rashad Byrdsong, was awarded more than $1.5 million through its contract with the county Department of Human Services, according to the controller's audit.

An audit of the agency's finances during the same period showed that the Community Empowerment Association had used more than "$303,000 for unsupported service hours and operating expenditures," said Mr. Flaherty.

He said detailed analysis of the truancy program found that the agency did not maintain documentation to support the hours of service it billed as required by its contract and it does not have "a written or a reasonable or consistently applied [money] allocation plan."

As a result, county auditors found that the agency spent $47,608 in "unsupportable and unallowable expenditures."

"They wrote and cashed checks and yet they have no documentation to show how or why they spent the money," said Mr. Flaherty.

Reached yesterday, Mr. Byrdsong declined to comment on the controller's audit except to say that he plans to issue a statement on the matter sometime soon.

"We recommend that Community Empowerment Association reimburse Allegheny County for disallowed and unsupported costs and ensure that all future expenditures are properly supported and in compliance with Department of Public Welfare regulations," said Mr. Flaherty.

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