Summit County Internal Audit agreed Wednesday to conduct a financial audit of Oriana House, the Akron-based drug treatment and jail services provider that is facing increased scrutiny.
The city of Akron, Summit County and Summit County Alcohol, Drug Addiction and Mental Health Services Board (ADM) sought the analysis of the nonprofit.
“It is critical that our residents have full confidence that their public dollars are being well spent,” Mayor Dan Horrigan said in a prepared statement.
By joining together, the governments and ADM will receive “a broad-based picture of all of the taxpayer money in Summit County being paid to Oriana House for these services,” he added.
The audit will look at the local agreements and the services provided.
“Oriana House has played a valuable role in providing alternative corrections as part of our criminal justice system in Summit County, and we are not conducting this audit because we are aware of, or suspect, any wrongdoing,” County Executive Ilene Shapiro said in a prepared statement. “At the same time, we have an obligation to ensure that the tax dollars of our constituents are being prudently spent and that we are receiving the appropriate level of services for those dollars.”
Oriana officials have said they welcome the audit.
Akron City Council members began questioning Oriana leaders last month after parents complained that their children and others went to the nonprofit’s facilities for help but instead overdosed or died. Horrigan then called for a financial audit.
Oriana, which employs 800 full-time workers, reported $48 million in revenue and $50 million in expenses to the IRS on its tax-exempt filing for 2015. President and CEO James Lawrence earned $898,079 that year in total compensation.
The fee for Internal Audit, a semi-independent agency, hasn’t been determined and will depend on the scope of the audit, officials said.
The audit is expected to begin within the coming weeks and take at least a few months to complete.
Summit County and Akron together pay Oriana about $10 million annually to provide drug screening, monitoring, beds in halfway houses, treatment and other services to courts and social service agencies. ADM pays an additional $5 million.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com. Follow him on Twitter at @armonrickABJ .