Government has given Hope Homes more than $1.2 million over the past three years ? but the embattled charity has failed to account for how the money has been spent.

A statement from the Ministry of Health yesterday also denied the charity?s claims that Government owes Hope Homes $90,000.

But Government admitted it was withholding a $40,000 grant because the charity had failed to submit the necessary documentation.

And Government voided three cheques issued in 2001 and 2002 and worth a total of $46,000 after the charity for the mentally handicapped failed to cash them, the statement revealed.

Hope Homes chairman Alan Robinson last week blamed the charity?s financial crisis on Government, saying it was owed more than $90,000 in room and board fees.

?The current fiscal dilemma being faced by Hope Homes can be correlated with the Ministry?s payments,? he said, adding: ?The maintenance of the physical plant has been adversely affected by the under-funding referred to above.?

Hope Homes residents were relocated by Government to Lefroy House three years ago and have been staying there rent-free while the organisation renovated its Brunswick Street facility.

According to the Financial Assistance Department?s audit of funds awarded to Hope Homes from 2001 to present, the facility has received $1,208,823 over the past three years to date in grants and resident fees (room and board).

Any money withheld ?was done so while awaiting the correct and complete documentation necessary to process awards for Hope Homes?, the statement said.

?Once the requested and accurate documentation was furnished to the Department, the awards were processed for distribution.?

Financial Assistance was ?perturbed? that, despite being accommodated at Lefroy House for three years for free and having received in excess of $1.2 million in public funds, Hope Homes was either ?unwilling or unable? to provide accountability.

?Moreover, there appears to be no indication to suggest those funds were used to fix up their Brunswick Street (facility).?

The statement also said it was ?interesting? that three cheques totalling $46,146 were issued to Hope Homes by Financial Assistance ? two from 2001 and one from 2002 ? but never cashed. The Accountant General?s office finally voided the cheques and the money was returned to the Department?s budget.

Declines in the amount of money awarded to Hope Homes on a monthly basis per resident were also due to a lack of necessary documentation, Government said.

?Hope Homes residents, like everyone else who presents in need at the Department of Financial Assistance for an award, must be assessed and verified against eligibility criteria in order to qualify.?

Government admitted that $40,000 worth of second quarter grant money has yet to be given to Hope Homes.

?The Department of Financial Assistance is still waiting to receive Hope Homes? submission of the necessary documents,? a Government spokesperson explained.

?Hope Homes, along with other grant recipients, was first advised in April, 2004 of the need for additional supporting documentation to support their grant requests. They were reminded again in May, 2004 in writing and again in August. Despite being advised... the board of Hope Homes has yet to comply.

?We were informed by Hope Homes that documentation was forthcoming four to six weeks ago but, to date, it has not been received.?

With public money involved, the spokesperson said, ?we cannot release the money until Hope Homes complies with the conditions attached to the funding?.