LAKE COUNTY — Lake County Community Action Agency Board of Directors addressed several difficulties Wednesday currently facing the organization. The board identified payroll, insurance, the continuing of food programs and its Community Service Block Grant (CSBG) application as top priorities.
The board indicated that it has eight boxes of paperwork including invoices and other financial records to comb through before it will have a clear picture of the agency”s current position. Much of the agency”s operations depend on reimbursements from various partnering agencies and other funding sources.
Reimbursements are contingent upon invoices for services and goods delivered. The board indicated that proper invoicing and related accounting procedures have not been occurring for quite some time. LCCAA employee Marty Comito said that one agency recently informed her that it had not received any invoices for services since last July.
Employees present for the meeting expressed a breakdown in communication and response to inquiries from the agency”s accountant, Melissa Fanning, CPA. One employee said while her paycheck reflects deductions for child support payments, those payments were not made and she now faces legal and financial consequences, including payments due on interest incurred for delinquent child support. Another employee said she has worked hard to clear her credit and now finds herself in financial crisis because of similar accounting deficiencies.
Board member Joyce Overton indicated that bills have not been being paid either. “There are checks that Georgina (Lehne, executive director) has signed that have not been sent to the vendors,” she said. Overton said that notices were recently received informing the agency that a phone line will be shut off as well as the electricity at the main office in Clearlake. She said clients at the TLC House were consistently being forced to pay utilities at the facility as well.
A priority for the board is continuing food programs. Board member Eileen Yancey said that the Commodities Supplement Food Program (CSFP) is federally-funded and cannot be shut down. She said the Redwood Food Bank (RFB) stepped in to conduct the most recent distribution, which was held on Tuesday. She said RFB is willing to continue assistance. “As you know, we can”t just shut that program down,” Yancey said. “The Redwood Food Bank is prepared to take that on.”
Yancey said that RFB has agreed to hire four of LCCAA”s employees as well as insure the truck used for distribution in order to conduct the next scheduled food distribution on March 1.
Lou Denny, food program manager, said the CSFP serves low-income seniors age 60 and older as well as preschool children for the year that follows their ineligibility for WIC. “It”s a wonderful program,” he said. “It”s a 40-pound box of food plus a 2-pound brick of cheese.”
According to Comito, the CSBG picks up additional costs associated with food programs. A report, which is to describe use of grant funds and program accounting, is supposed to be sent electronically to the California State Department monthly. She said the report is generated from the CPA”s office and is signed by the CPA and the executive director.
Comito said the grant application for 2011 has not been filed yet. The board indicated that grant writer Karen MacDougall has volunteered to complete the grant application.
Overton said she was amid conversations with Workman”s Comp Insurance carriers and would report back to the board once she obtains the information she is seeking. The board indicated that month-to-month coverage would likely be the best option for the agency at this time.
Gloria Flaherty, executive director of Lake Family Resource Center, said Wednesday, “This is so sad. Non-profits that rely on government funding have a responsibility to the public and when funds are not being used as intended, it”s a betrayal of trust.”
Another major issue facing the agency is services provided at school sites. Laura Solis, of Alcohol and Other Drug Services (AODS), said she would look into options for AODS assuming responsibility of those services.
LCCAA Board Chairman Tom Jordan said Wednesday he thinks a major breakdown in communication among key players occurred to cause this situation. He does not believe that it is intentional, however.
Jordan said 15 to 20 employees were furloughed. He said they are eligible for unemployment and suggests that those employees who have not yet done so should sign up for it.
“We want this to be a temporary situation, but we can”t give a date when this will be resolved right now,” he said.
Contact South County reporter Denise Rockenstein at drockenstein@clearlakeobserver.com or call her directly at 994-6444, ext. 11.
Mandy Feder contributed to this article.
