COMMUNITY RESOURCES, INC. BEING INVESTIGATED - State Office Of Economic Opportunity Looking At 'Status'

(11/11/2009)

CRI executive director Steve Ellis becomes angered over
press coverage at LK Bus board meeting, threatening to leave

State officials are looking into problems at a regional poverty agency that serves 11 counties, including Calhoun.

Following a special meeting of the board of Community Resources. Inc. in Parkersburg Monday, the WV Office of Economic Opportunity will be returning next week to commence what is being called an investigation.

Edward Harper, director of the Governor's Office of Economic Opportunity, said "We will be looking at the overall health and status of CRI."

Sources close to the agency say that the investigation will include a review of CRI's application for additional stimulus funding, and that OEO officials will be looking at personnel issues.

Part of West Virginia's $37 million in American Recovery and Reinvestment Act weatherization monies has already been allocated to CRI.

Currently, CRI is in line to receive more stimulus money for community projects, like Learn to Earn, Care for Clunkers, Labor Aid and Partnering to Provide.

The Calhoun Commission and the LK Kanawha Transit Authority has had a contentious relationship with Executive Director Steve Ellis since his employment to head the agency.

Calhoun commissioner Bob Weaver challenged Ellis after he grossly minimized the amount of debt being held by CRI, and the LK Transit Authority has been at odds with CRI for money they claim is owed them.

County commissioner Kevin Helmick said Ellis threatened not to hire Calhoun residents if the commission did not donate to CRI, Ellis later denied the allegation.

CRI was the target of a major investigation by OEO in 2007.

The blistering state audit of Community Resources, Inc. listed 19 weaknesses in the management of the agency under former director Melanie Pagliaro.

That audit listed serious problems ranging from altered time sheets, illegal payment of travel expenses, inappropriate pay raises, incomplete employee file documentation, and missing personnel reports, among the 19 non-compliance items.

Pagliaro responded by saying "CRI complied with its policies and procedures at all times in the course of the relationship with all employees..."

Pagliaro told auditors she kept a "programmatic" file in her office, implying they were not part of the agencies record keeping. Those files were not made available to the auditor.

In 2007, CRI announced the closure of most of their 11-county operations, but then put the decision on hold.

At that time Calhoun Commissioner Kevin Helmick said, "The CRI board is looking closely at the problems," indicating the commission has been "disturbed about what has been happening."

Calhoun commissioners have contended that poverty agencies tend to neglect the neediest counties.

The focus of Community Resources, Inc. is the improvement of the lives of low income people by providing services which help the poor obtain basic necessities, and developing means of change to those systems which cause poverty.

The agency serves 11 counties, Calhoun County, Doddridge County, Gilmer County, Jackson County, Pleasants County, Ritchie County, Roane County, Tyler County, Wetzel County, Wirt County, and Wood County.

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