Calm prevails as EOB troubles exposed

Monday, May 3, 2004 | 11:29 a.m.

Two months into a series of scandals scorching the Economic Opportunity Board, the Las Vegas Valley's largest nonprofit agency -- ranging from $2.1 million in unaccounted-for state and federal funds to a 3-year-old left on a Head Start bus -- the political temperature generated by the agency's troubles is lukewarm.

From Nevada's congressional delegation on down, elected officials are taking a wait-and-see attitude to what should be done as the 40-year-old private organization with a nearly $60 million 2003 budget and 30-odd programs to help the poor seems to be melting down.

"It's basically a no-win situation," said Ted Jelen, political science professor at the University of Nevada, Las Vegas. "There's no particular electoral advantage to be gained from attacking corruption or mismanagement in such an agency."

In addition, delving too deeply into the problems that have been exposed at the agency would prompt the question of how to continue to provide services to thousands of low-income valley residents, Jelen said.

"It's perilous to be close to the 'What is going to take the agency's place?' question. It's not clear where this could lead or how big the consequences might be."

Officials consulted said either they didn't know of the problems reported by the Sun, they wouldn't take a stand until results from the second of two federally funded inquiries are released next month, or they're sure that more oversight of large nonprofit agencies providing social services is needed, but aren't sure where that oversight should come from.

In early April, two teams spent five days looking into the agency's books and programs. One, a team of Health and Human Service Department-funded consultants brought in by the state, which oversees four sources of money that goes to the EOB, including its largest, the $20 million-plus child care program, released its results Wednesday. The child care program has not been able to account for $2.1 million paid as an advance last year, which brought the state to call for the consultants.

The other investigation, carried out by the Head Start bureau, has yet to release its results. That inquiry was brought on by unresolved issues from a 2003 review, including lack of proof that children were being taught what they should be.

Sen. John Ensign, R-Nev., who sits on the Health, Education, Labor and Pensions committee, said he "may offer amendments" to a future reauthorization bill controlling community services block grants. The EOB receives $2.2 million from block grants.

Ensign said his action depends on "what the other investigation will show," referring to the Head Start report.

"Certainly more accountability has to be done," he said, echoing what several state legislators said.

Sen. Harry Reid, D-Nev., and Rep. Jon Porter, R-Nev., both said they were also awaiting the results of the Head Start bureau inquiry. Rep. Shelley Berkley, D-Nev., did not return calls seeking comment.

At the state level, Assemblywoman Ellen Koivisto, D-Las Vegas, chairwoman of the Assembly Health and Human Services committee, said "there absolutely needs to be more oversight."

"There's a whole lot more people who need help than are getting it," she said.

One recommendation by the consultants whose report was released Wednesday was to break up the agency's 15-member board of directors and build it back up again.

"If clearing out this agency helps, then they should do it, including breaking up the board," Koivisto said.

The EOB board is supposed to include five members each from government, business and the low-income community, but Amanda Cyphers, Henderson councilwoman, and Hannah Brown, of the Urban Chamber of Commerce, stepped down in recent weeks, and the Clark County Commission seat has been vacant for months.

Assemblyman Garn Mabey, R-Las Vegas, who serves on the same committee as Koivisto from the opposite side of the political aisle, said he was not aware of many of the problems facing the agency, and as a freshman lawmaker was still learning how federal and state funds are channeled to the valley's different nonprofit agencies.

"Now I'm going to look at these things with more of a magnifying glass," he said.

Assemblyman Wendell Williams, D-Las Vegas, whose district includes a host of EOB programs, didn't return phone messages.

Sen. Barbara Cegavske, R-Las Vegas, sits on the Senate Finance Committee, which has oversight of some of the money that makes up EOB's budget.

"There needs to be some checks and balances," she said, but added that she wants to find out more about the state's role in controlling funds to nonprofit agencies.

"Next session I'll be asking questions," she said. "Where did the system fail with what we have in place?"

At the county level, Commissioner Yvonne Atkinson Gates sat on the EOB board until 1997 and her west side district houses many EOB programs, including a radio station, a senior day care center and a Head Start program.

The county approved $714,000 in funds to the EOB this year, though not all the funds have been released to date.

Atkinson Gates said one lesson she has taken from the troubles revealed at the EOB is that "you can't rely on one organization ... or put all your eggs in one basket -- if that organization folds, who's going to pick up the pieces?"

"Who is out there that doesn't have a conflict of interest, that has the infrastructure and management in place (to provide the services)?"