Former Howard County housing director Leonard S. Vaughan fired back at the Ulman administration this week, contending that an audit critical of the county Housing Commission's accounting practices outlined problems that occurred after he was fired.

Vaughan, who headed the commission for 16 years, disputed allegations of "lax administration" made by County Executive Ken Ulman when he released the audit results last week. Vaughan blamed problems on current housing director Stacy L. Spann, whom Ulman appointed a little more than a year ago.

Vaughan and his deputy, Neil Gaffney, were fired by Ulman in December 2006. The audit covered the fiscal year that ended June 30, 2007.

Late yesterday, Ulman rebutted Vaughan's assertions, saying that "these were not major deficiencies that began after Mr. Vaughan left."

"The audit is clear," the county executive said. "I understand he may have some sore feelings."

Fiscally sound

The audit by Clifton Gunderson LLC declared the commission in sound financial shape with $22 million in assets, but warned that poor accounting practices had left the commission vulnerable to fraud.

According to the audit, the commission's staff failed to adequately maintain more than 20 bank accounts, left $3.7 million in unsecured bank accounts and lacked enough trained employees to segregate accounting duties.

In a two-page cover letter that accompanied the audit when it was delivered to the County Council, Spann called the commission's accounting practices "seriously deficient."

Ulman said the commission suffered from lax management and that efforts to produce more subsidized housing have languished because "the books were in such bad shape."

The commission owns and manages the county's public housing and administers subsidized housing programs.

Vaughan's eight-page reply, which he distributed this week via e-mail, responded to all 10 findings in the audit. He sent it to members of the council and the Housing Commission.

Spann's reply

Late yesterday, Spann issued a point-by-point rebuttal in response to Vaughan's e-mail.

In a telephone interview yesterday, Vaughan said, "I'm not concerned about what they said about me. What I am concerned about is what they're doing to the housing office and the lack of truth in this whole administration."

The former director sought to make clear he is not challenging his removal.

Ulman "has a right to make changes. He could have just done that," said Vaughan, 66. "But why were we audited and investigated? To sit here and say these 10 items were obvious when we were let go is preposterous."

Vaughn said he and Gaffney were told only that the administration "wanted to go in a different direction" and were not consulted by the auditors or Spann.

Former commission vice chairman David Vovakes, a 10-year member, supported Vaughan yesterday.

"Based on my knowledge, I agree with your responses to the findings of the audit," Vovakes, whose tenure included the time covered by the audit, wrote in an e-mail reply to Vaughan's message.

Deemed appropriate

William A. Ross, another longtime commission member, said conducting an audit after a change in administration seemed appropriate. He had not seen Vaughan's replies.

County Council Chairwoman Courtney Watson, an Ellicott City Democrat, said she received Vaughan's e-mail, but hadn't examined it in detail. On Monday, the council decided to have at least one member meet informally with the auditors.

"We're hoping to get a better understanding by talking to the auditors," Watson said.

In his e-mail, Vaughan criticized the removal of the commission's comptroller, noted that previous audits of the commission did not turn up serious problems and said cash was kept in secure accounts with balances reconciled monthly.

larry.carson@baltsun.com