Has the Urban League of Portland played fast and loose
with public funds aimed at helping the city's poor?
That's the question being asked in light of a scathing
letter sent to the nonprofit Sept. 9 by Multnomah County
Chairwoman Beverly Stein.
After months of requesting that the Urban League of
Portland comply with county contract provisions, Stein
issued a heated letter to the League's Board of Directors,
saying she has "grave concern" about the nonprofit's
management of the $1.1 million it receives each year
in county funds to provide social services in Northeast
Portland.
"I don't want to make a final judgment before I have
all the facts," Stein told WW Sept. 10. But Stein's
letter makes several serious allegations, which come
after county personnel conducted an initial financial
review at the Urban League's offices in late August.
They found that many of the League's expense disbursements
have inadequate--and, in some cases, nonexistent--supporting
documentation. For example:
*No authorization was found for League President Lawrence
Dark's auto-allowance payment. And on one occasion,
an $800 car payment for Dark was signed only by Dark
himself.
*More than $20,000 in checks was made payable to a
cruise and travel agency in April 1999, an amount the
county termed "excessive."
*Numerous out-of-state "travel ventures" were taken
by League officials without any indication of pre-approval.
In other cases, travel advances of $100 to $250 were
made, but no receipts or reimbursements were found.
"I find this very alarming," Stein said in her interview
with WW. "I was shocked and upset when I learned
of it." She added that if the organization doesn't comply
with the county's requests, she reserves the right to
move the county's business elsewhere. She said the county
is already making contingency plans for that scenario
and is also in the process of rebidding all its social-service
contracts for private vendors.
In addition, county staffers found:
*Inappropriate payroll practices are being followed
regarding overtime, benefits and pay rates. Seven of
eight pay rates reviewed by county personnel do not
match the amounts being paid through the payroll system.
*No entries have been made in the Urban League's general
ledger since April 2, 1999, meaning that is impossible
to obtain a complete picture of the organization's accounts.
*The League's board of directors has not reviewed financial
statements since July 1998.
*Finally, the League seems to have a serious cash-flow
problem: Its credit line of $250,000 with Key Bank is
maxed out. Many checks written by the League are being
held in the accounting office because there is no cash
to cover them. Payments for the League's employee benefits,
including health insurance, are not current; Stein told
WW that one employee was refused medical services
because of the situation.
Dark did not deny that the League has been flying blind
without a proper accounting system, but he declined
to discuss specifics. He said that the Urban League
would fully respond to the county's allegations and
that he looked forward to working with the county in
the future.
Duane Bosworth, chairman of the League's board of directors,
said that there were misunderstandings and a breakdown
in communication between the League and the county.
He denied that any county funds, which account for nearly
30 percent of the League's budget, were misspent.
"The board has been aware of the situation and is dealing
with concerns that were among those raised by the county's
letter," Bosworth said, adding that the League would
fully cooperate with the complete audit that Stein is
requesting be performed by an outside accounting firm.
Bosworth declined to comment upon specific allegations
made by the county.
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Willamette
Week | originally published September 10,
1999
