Another audit finds fault with accounting at EOB

Thursday, April 13, 2006 | 7:12 a.m.

The public radio station owned by what until recently was the Las Vegas Valley's largest nonprofit organization must pay back federal funds, improve bookkeeping and reach out more to the public, according to the agency that oversees nonprofit radio and television nationwide.

The Corporation for Public Broadcasting Tuesday sent KCEP 88.1-FM a final report, based on an earlier audit that, among other things, told Station Manager Lee Winston that the radio station needed to pay back $23,322 in federal grants because of poor accounting.

It also upheld another audit finding that the station overstated by nearly $300,000 how much it had raised from the public.

The two financial missteps led CPB to urge the station and its owner, the beleaguered anti-poverty organization Economic Opportunity Board, to "develop specific, written accounting policies and internal procedures."

Another issue CPB noted was the lack of regular meetings by the station's board, intended to be a liaison between the station and the public.

The report brings bad news to EOB's remaining asset, a station that programs rap, soul, gospel and less than 10 hours a week of community shows.

EOB, founded in 1964 as part of the federal War on Poverty, has lost federal and state contracts in recent months after years of negative reviews.

Last week, EOB lost its last large contract to help the poor, a $5.5 million child-care assistance grant with the state, because the agency could not demonstrate how funds were being spent.

Amid the turmoil, the station has received four offers from various nonprofit organizations to buy it for between $5 million and $7 million.

But at a recent public meeting, community members said they wanted to "save" the station - and the organization.

Las Vegas Councilman Lawrence Weekly, one of three remaining EOB board members after a spate of recent resignations - and host of a Saturday show on KCEP - said the organization has set up a "EOB/KCEP relief fund" at Wells Fargo. That account, however, was set up to take care of the EOB's estimated $3 million debt, not to help the station, he said.

As for the CPB report, Weekly said: "What do you want me to say? It's unfortunate ... All you can do is try and get it right."