Friday, November 9, 2018

WHEN NO ONE IS PAYING ATTENTION

The following is almost impossible to believe.

As reported in multiple media in the Dallas and Fort Worth communities, "nearly $1 million dollars was stolen from the Fort Worth-Tarrant County Jewish Federation" by its Controller. 
https://www.wfaa.com/article/news/feds-nearly-1-million-stolen-from-jewish-charity-in-fort-worth/287-609743953

That's $1 million dollars, my friends...$1 million. And, this was no sophisticated fraud. It is alleged that the Controller merely wrote 300 (+/-) checks to herself over a five year period totalling $1,000,000 and was never caught. This small federation was victimized to the tune of approximately $200,000 per year and no one noticed...no one. 

Are the organization's books audited? Is there an Audit Committee? Where was the Controller's supervisor(s)? Where was the Federation Board? So, the Controller just continued to write the checks to herself...for five years!! 

That's $200,000 a year stolen from a community whose annual campaign has remained at a little less than $1 million a year. You'd think someone would have noticed that $200,000 or so was being stolen. And, a quoted Board member said the total stolen was actually more than $1 million, the overage dating back to 2011 -- beyond the statute of limitations!! 7 years of this. The theft, according to the media reports, was discovered in a recent audit -- was this the first audit? I'm having a tough time getting my arms around this -- in particular because it appears that this Federation has not filed its mandatory IRS Form 990. (Guidestar does not cross-reference any filing; the Federation's website does not link to one.)

I visited the Fort Worth and Tarrant County website -- it disclosed a community engaged in joy-filled activities, supporting local needs in meaningful ways. I'm certain that the communal lay leadership are as committed as any in most communities. I've known a number of past leaders -- they were terrific. And, now? If you look at the photos, you would see leaders that mirror those in Los Angeles or Palm Beach or Dallas. The website includes the agenda of the recent Federation Annual Meetings which included not only the Federation's most senior lay leader reporting on the "State of the Federation" and a presentation from JFNA's Richard Sandler -- all the while the Controller was stealing 20% of the community's annual campaign resources.

The trust that is so absolutely vital to community building and to sustaining the community, now must be rebuilt in Fort Worth-Tarrant County. Anyone who has been a regular reader of this Blog knows of my fear that that trust, once destroyed, can almost never be rebuilt...almost never.

Our Boards are the stewards of our donors' resources; for the donors have entrusted their dollars to our Boards. When that stewardship fails, communities die.

Rwexler

No comments:

Post a Comment