by Tracy McCue, Sumner Newscow — In a special meeting held at the Wheat Capital Manor, an auditor told the Wellington Housing Authority board that administrator Melissa Hamlin has done nothing wrong except fail to withhold $6,766 from the 2014 health insurance premiums for the spouses of herself and a former employee.

Cynthia Warren, a U.S. Housing and Urban Development auditor from Eufala, Okla., was on hand to answer a list of five questions submitted to her by the board during a special public meeting held at the Manor Thursday afternoon. Warren is currently in the process of doing the WHA’s annual audit and has been doing so for a number of years.

Warren stated in 2014, after the authority switched insurance plans from Preferred/Coventry to a State of Kansas Blue Cross Blue Shield insurance policy, Hamlin failed to take out $282.33 a month for the health premiums of her and former maintenance supervisor Gary Irey’s spouses, who are on the WHA company plan. 

As a benefit since 2010, the authority pays for 100 percent of health insurance premiums of the four full-time employees working at the Manor, but does not do so for spouses or family members, who choose to be part of the company plan. Warren said Hamlin, who is in charge of payroll, should have taken out $3,338 in 2014 from the paychecks of herself and Irey. As a result, Warren said, the WHA has three options to rectify the mistake: 1) collect $3,338 in lost revenue from the two employees; 2) terminate Hamlin; 3) or retroactively approve back to Jan. 1, 2014 100 percent payment of health insurance premiums for the employees of the WHS and their spouses.

Warren said whatever the board decides it must treat both employees equally, even though Irey no longer works at the Manor.

Warren then said, the withholding issue has been rectified as of Jan. 1, 2015 and the withdrawal is now reflected in recent checks to Hamlin.

In 2014, the WHA changed insurance companies from Coventry to Blue Cross after learning the Manor could save $50,000 a year.

Hamlin said a misunderstanding occurred during the changeover between her and some members of the board. She thought during a work session, the housing authority told her it would pay 100 percent of the cost of health insurance premium in 2014 since it would still be financially ahead from money paid out in the old insurance plan.

Hamlin said, however, part of the board, misinterpreted what she meant and thought the policy should have remained intact where 100 percent of the employees insurance would be paid but spouse insurance would be partially paid.

“I would have done nothing on purpose,” Hamlin said.

Aside from the health insurance premium issue, Warren said she could not find anything wrong with what Hamlin has done.

The board submitted five questions to the board. Aside from the health insurance policy, Warren addressed questions concerning nepotism; whether or not a chairman of a board can sign a Housing Authority contract; the financial polices concerning Hamlin’s use of internet, K-Tags, cell phones and excessive mileage; and whether payroll taxes were properly withheld from a contract employee in 2012 and 2013.

In all other cases, Warren said Hamlin operated within WHA and HUD policy guidelines and she could not find any violations.

She did urge the board to revisit some of its current policies and perhaps update them in the future.

Warren opened the meeting by reaffirming a report by HUD that gave WHA a very positive rating in its last assessment. The authority received a 98 out of a 100.

“That is a very, very good score,” Warren said. “That means Wheat Capital Manor is well managed and you are doing a lot of things right. There are many housing authorities that I work with that are receiving scores in the 80s.”

She defined the housing authority as a group that is doing things very well but has some kinks it needs to work out.

WHA board member Larry Schalk said after the report was given that the board should draft a letter publicly apologizing to Hamlin for the controversial past few months.

The WHA will be meeting later this month. No action was taken at Thursday’s meeting.

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