> Loan oversight bill advances
> House committee passes measure on help for the  disabled
> 
> BY TAMMIE SMITH
> TIMES-DISPATCH STAFF WRITER
> Jan 25, 2006
> 
> Legislators moved yesterday to increase oversight of a state authority
> that   helps disabled people get low-interest loans for technology that
> allows them  to  be independent:
> 
> 
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> 
> A state audit of the Assistive Technology Loan Fund Authority recently
> turned  up questionable expenses.
> 
> The authority makes loans of $4,000 directly to consumers or helps them
> get   bigger private loans for things like electric stair climbers,
> special driving   devices, communication devices, wheelchair ramps and
> home modifications. In   larger loans, the authority works with SunTrust
> bank and helps pay down the   interest.
> 
> The program was staffed and managed by the Department of Rehabilitative
> Services when it was created in 1996. In late 2002, the authority took
> full   responsibility for management.  "Suffice it to say, it needs
> oversight," said Del. David B. Albo, R-Fairfax,   speaking at
> yesterday's meeting of the House Health, Welfare and Institutions
> Committee.  The committee cleared Albo's measure, House Bill 849, which
> would move   oversight of the authority to the secretary of Health and
> Human Resources. The
> bill now goes to the full House.  A Senate version of the legislation,
> SB 558, passed the Senate on final   reading with a 39-0 vote yesterday.
> The loan authority was created in 1995 by the General Assembly.  The
> state Auditor of Public Accounts completed a special audit of the
> authority in December. The review was requested by the state Department
> of   Rehabilitative Services and the chairman and treasurer of the
> authority  board.  The audit reported the following questionable items:
> 
>     * $5,000 spent to create a separate foundation even after getting
> state attorney general advice not to do so. The audit says there is no
> evidence   anyone wrongly benefited from the foundation's creation.
> 
>     * $8,000 spent to cover home-loan closing costs of a person who
> does  not  appear to qualify for the loan authority's programs.
> 
>     * $38,000 in loan payments collected late or collected and not
> deposited.
> 
>     * $1,000 advanced to an employee that had not been repaid.
> 
>     * $219,000 spent on advertising that wasn't approved by the
> authority  board  and which didn't follow state procurement guidelines.
> 
>     * $4,664 spent for a conference trip to Orlando, Fla., for which
> proper   documentation had not been received.  The audit notes that
> "these findings and questionable items do not appear   criminal" but
> result from a lack of oversight. Some matters have already been
> corrected.  "We now have a finance director on board who has cleaned up
> all of the   accounting issues," said Joey Wallace, appointed the
> authority's interim  executive  director in November.
> 
> He said there has been a 50 percent turnover in the 12-member board, and
> the   state attorney general's office is trying to recover some of the
> funds.  "The whole infrastructure tied to SunTrust, none of that was in
> jeopardy,"   said Wallace. "The problem came with record-keeping,
> management and   oversight."  Any Virginian with a disability can apply
> for a loan. The state audit shows that as of June 2005, there were 96
> outstanding loans. The agency's 2005  revenue  of approximately $5.3
> million included $3.9 million in federal grants.  Expenses  totaled
> about $1.3 million.
> 
> In other matters, the House Health, Welfare and Institutions Committee:
> 
>     * Sent to a subcommittee for more study a bill that would set up a
> mechanism  whereby people fleeing abusive partners could have their
> first-class  mail sent  to a secure mail drop overseen by the attorney
> general's office. That office  would then forward the mail to the victim
> at an undisclosed address.  The idea is to keep the victims' addresses
> out of the public arena so that batterers cannot find them.
> 
>     * Cleared a bill to require laser or light therapy technicians, who
> treat  facial imperfections, to be licensed by the Board for Barbers and
> Cosmetology  starting July 1, 2008.
> 
> Contact staff writer Tammie Smith at  [log in to unmask] or (804)
> 649-6572.
> 
> - - - - - - - - - -
> 
> Olegario D. Cantos VII
> Special Assistant to the Assistant Attorney General Civil Rights
> Division U.S. Department of Justice 950 Pennsylvania Avenue, NW, Room
> 5529
> Washington, DC   20530
> Voice:  (202) 616-7920
> TDD:  (202) 514-0617
> Fax:  (202) 307-2839
> Email:  [log in to unmask]


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