AUDIT BLASTS: Major local non-profit group

COLUMBIA, 12/6/09 (Beat Bytes) -- Wasteful spending, deceitful budgeting, and board member in-fighting highlight an official audit of the Boone County Community Partnership (BCCP), a non-profit group that receives some $1.2 million annually from taxpayers and donors for various charitable causes in Columbia and Boone County.

 

Calling the practice a "significant deficiency in internal control," Columbia-based Casey and Company certified public accountants wrote, "The Partnership spends money heavily the last 15 days of each quarter," in a 2009 report.  "This spending pattern, particularly at the fiscal year end, indicates that...the Partnership spends money at the end of each quarter or year to justify funding requests for future quarters and years."

 

Scolding BCCP board members and executive director W. Lolita Lucas, the auditors admonished, "The Partnership should not spend money to use up grant funds so that future funding will be based on prior spending patterns.  Expenses should be better planned for...This will allow financial statements to be more reflective of the Partnership, and make historical financial reports more accurate."

 

In another section entitled "Material Weaknesses," auditors identified practices they claim could result "in a material misstatement of the financial statements."  Among the weaknesses:  "Breakdown in Orderly Conduct."

 

"Dissension among members of the Board of Directors and the Organization's management resulted in significant turmoil," Casey auditors found.  "Board and staff resignations disrupted normal organization functioning and internal control procedures.  The Board of Directors needs to recognize the seriousness of the situations." 

 

Citing credit card mishandling and wasteful hotel booking, auditors asked BCCP to tighten its spending procedures.  "Use double occupancy rooms when practical.  Keep debit and credit cards in a secure location, only released on completion and approval of purchase request forms."

 

BCCP staff also mis-appropriated funds, the auditors discovered.  A supply account "included non-supply items such as rent and utility deposits, a refrigerator purchase, employee recognition, repairs and maintenance." 

 

And clients weren't required to sign receipts or other required documentation.  "When assistance is given to individuals, the individuals served should sign for the services received," auditors wrote.  "This will allow the Partnership to minimize misdirection of funds for employee personal use."

 

Other problems included lack of proper supporting documentation, incomplete mileage logs, and reimbursement forms "that were rarely filled out," auditors found. 

 

Former St. Francis House director Lana Jacobs and funeral director Harold Warren, Sr. -- who both left Columbia under fire for activities at their own organizations -- were recent BCCP board members, information included in a note with the audit sent to the Columbia Heart Beat. 

 

We will publish any response from BCCP in a subsequent edition.

 

RELATED:

http://www.booneccp.org
http://archive.columbiatribune.com/2008/apr/20080425news011.asp