Holly Anderson, the Director of the Area Agency on Aging (AAA) at the Deep East Texas Council of Government (DETCOG), has released a report on the practices at the Jasper County Committee on Aging (JCCOA) and its Director, Mitch McMillon.
The report was released on Wednesday, and it followed an announcement a few weeks ago by McMillon that the JCCOA would be discontinuing their congregate meals program at their locations in Jasper, Kirbyville, and Buna, although their Meals on Wheels program would continue uninterrupted. McMillon cited the reason for the cessation of the congregate meals program was due to insufficient federal funding.
However, late last week McMillon announced that there had been a change in plans and the congregate meals program would continue.
Anderson’s report cited overbilling, noting that it was discovered in one case that the AAA was billed for 770 meals, although records indicate that only 740 meals were delivered. In another case, Anderson’s report said it was discovered that the AAA was billed for 800 meals, although records indicate that only 765 meals were delivered. The report said this resulted in an overbilling from the JCCOA to the AAA for 65 meals, a total cost of $321.75.
The report also listed seven issues that were investigated:
The report said that the JCCOA received a grant from the T.L.L. Foundation for the purchase of three new vans, the purpose of which was to deliver food and also for running errands pertaining to JCCOA official business.
However, the report said “It appears that one of these vans is being used for personal use by the Director of the JCCOA (McMillon). The Director made the statement that he does take this van home for security reasons. However, driving it back and forth is considered personal use”.
The report said that the JCCOA is making monthly $825.00 payments to Blue Cross Blue Shield for health insurance for McMillon, which the report said is considered a benefit of employment. However, the report said that the amount is not being reported on McMillon’s yearly 1099 form.
The report said “Federal funds should not be used to provide health insurance to an individual, rather the individual should purchase their own health insurance. A group policy can be included in the rate setting documents”.
The report said that McMillon did not have permission to operate his private insurance business out of the JCCOA office at 409 North Fletcher Street in Jasper, despite his recent claim that the JCCOA Board had given him permission, in writing, to do so. The report also noted that McMillon, who is elected to the At-Large position on the Jasper City Council, is using the office to conduct business related to the Jasper City Council.
The report said “Corrective Action – AAA will review the rate setting documents for FY2020 and negotiate a cost for the office space used by the Project Director for his personal and City Council business and remove the cost from the rate setting documents and recalculate the cost of service.
The AAA will also review the FY2020 rate setting documents to determine what percentage of the contract salary of the Project Director will be allowed to be included in the rate negotiation and remove any costs determined to be related to his personal business and City Council duties”.
The report said that although JCCOA employees are required to punch in and punch out on a time clock, they are not being paid for the time that they worked, but instead they are paid for a designated amount of time, or the amount of time on their time card if it is less than the designated amount of time.
The report said “The Area Agency on Aging strongly advises that the JCCOA Board of Directors to review this practice and seek advice on possible unpaid wages and employment taxes”.
The report addressed McMillon’s recent statement that the JCCOA doesn’t have enough money to run all of the programs. However, he continues to receive annual bonuses, including a 2018 Christmas bonus of $4,200.00.
The report said “The Area Agency on Aging will review the FY2020 rate setting documents to determine if an annual Christmas bonus is included in the Project Director’s contract salary, and if so, will remove it from the rate setting documents and recalculate the cost of service”.
The report delved into the recent revelation that the signature of a deceased man was appearing on JCCOA checks. The deceased man is Albert Snell, who served on the JCCOA Board until his death in November of 2018. Recently, McMillon told KJAS News that the JCCOA requires two signatures on checks, and he said that Snell, when he was alive, had given him permission to sign his name on checks. When questioned about Snell’s signature continuing to appear on checks after his death, McMillon told KJAS News “I wrote his name on a few of them checks”.
The report said “Signing any person’s name to a financial document other than your own without power of attorney could be considered forgery or fraud”. The report went on to say “The purpose of having two signatures on a check or other financial documents is to make sure that the JCCOA Board of Directors have reviewed and approved the purchase and payment of goods and services, as well as investments and money transfers.
The Area Agency on Aging suggests that the JCCOA Board of Directors develop and implement a police of regular review and approval of all expenditures, payments, investments and money transfers”.
The report also addressed Randy M. Sayers, who is a certified public accountant in Jasper. The report said that Sayers is paid by the JCCOA for monthly accounting services, and he also serves on the JCCOA Board of Directors.
The report said “This appears to be a conflict of interest”.
The report went on to say “Mr. Sayers, as well as other board members, need to be identified through a Conflict of Interest/Related Party statement”.