United Way Audit: No Misappropriation
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United Way Audit: No Misappropriation

Audit in answer to allegations of mismanagement made last summer.

An independent audit of the United Way of the National Capitol Area has apparently concluded that there was no misappropriation of funds by staff or Board members.

The audit committee of the Board presented the independent auditor’s findings to Board members at a meeting on April 2. The audit was ordered after a former Board member made allegations of financial misconduct and mismanagement early last summer.

“First of all, I am reacting to a presentation only and have not yet seen the actual report,” said Alexandria Councilman William D. Euille, a member of the United Way Board. “The conclusion seems to be that while there was no misappropriation of funds, there were certainly irregularities in bookkeeping and accounting postings. These need to be corrected and the organization has already taken some steps to see that they have been corrected.”

Euille was one of the members of the Board who expressed grave concern that the allegations were not dealt with in a more timely manner.

“This entire public spectacle could have been avoided if the original allegations had just been dealt with more appropriately and more seriously when they were first made,” he said. “Any time an organization airs its dirty laundry in public, it loses some credibility. It is our responsibility to see that this credibility is restored and the way to do that is by providing sound management practices.”

DONNA KLOCH IS ALSO A member of the Board of Directors. “I think we are in the middle of a process,” she said. “We have not yet seen the written report from the auditors. I understand that we are going to have the opportunity to meet with the auditors and ask questions and review their findings and I am looking forward to that because I do have some questions. In general, however, I am satisfied that the audit was thorough. Now it is up to the Board to review all of the policies and make changes that are necessary to implement the recommendations.”

The audit committee made its presentation based on a 40-page draft report. The final report will be made available to Board members next week.

Kim Fiske, the chairperson of the Alexandria United Way’s Executive Committee, has invited a member of the audit committee to discuss the findings at a meeting of the executive committee on April 17. Also, the audit committee will present the findings to members of the regional executive committees at a meeting at the main branch of Suntrust Bank in Washington, D.C., on April 10. Executive Committee members who are interested in attending this meeting should call their local United Way office for more details.

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