Emporia Police are investigating after a local nonprofit organization reported an alleged potential theft.
Capt. Dave DeVries says the investigation is in an early stage after Plumb Place made the report last month. No individuals were named in the public report, and the alleged theft amount and time frame are currently not being released with an outside accountant reviewing financial data. However, public information provided by Emporia Police listed a potential theft of over $51,000 from January 2014 through April 2017.
Plumb Place Board of Directors Vice President Jesse Murphy said the board took several steps when it started learning of the missing funds.
Murphy did not specify which employee was asked to resign, saying he could not do so unless charges were filed in the case.
Former Plumb Place director Jill Wheeler resigned in April 2017 after leading the agency since 2001. Click here for KVOE News’ coverage of the change in command at Plumb Place from last year.
The United Way of the Flint Hills has contributed part of its annual fundraising campaign dollars to Plumb Place as part of a community partner relationship since 1948. The United Way issued a statement Thursday, saying the Board of Trustees learned of alleged “financial malfeasance” in January and voted in February to stop all funding effective immediately, essentially ending the United Way’s community partner relationship with Plumb Place. United Way Director Jami Reever:
The United Way board has said that in order for Plumb Place to be reinstated as a community partner, Plumb Place has to satisfy a list of requirements, including a fraud examination by a certified examiner and a subsequent report with Emporia Police. The United Way has been in constant communication with Plumb Place and was informed last month that its requirements were met, so it voted at a special meeting Wednesday to reinstate Plumb Place as a community partner. However, funding has not been released for the rest of the year until Plumb Place meets additional requirements for accountability, transparency and training.
Murphy tells KVOE News the Plumb Place board has recently made several significant changes to its bylaws, policies and procedures.
The United Way says it “believes deeply” in the Plumb Place mission to serve women in crisis and wants to see the agency thrive. However, the United Way also says the alleged financial issues must be “taken seriously and acted upon quickly” to continue the credibility of the nonprofit community.” Murphy, for his part, thanked the community for its support.
Murphy also said the financial issues have not impacted operations for the women served by the agency.
Emporia Police will not release additional information until their investigation is complete.
Stay with KVOE and KVOE.com for details as this story develops.
Statement from Plumb Place Director Clara Corn and Board of Directors President Brandon Stiner
August 2, 2018
Dear Community Members,
While the investigation is ongoing, we wanted to make sure you are aware of an alleged theft discovered in June 2017. As victims of an alleged crime, we are cooperating with authorities to ensure a speedy and appropriate resolution.
As a member of the community, Plumb Place is committed to our mission of helping women in need and to ensure transparency and accountability to our community partners. Maintaining the trust of the community and all those who share our vision that every woman deserves a safe place to call home is paramount to our organization. While it is unfortunate when alleged wrongdoing occurs, it is in keeping with our commitment to transparency that Plumb Place engages the public not only regarding potential challenges, but also related to the steps we are taking to maintain trust and maintain our service and support levels.
Following some discrepancies noticed by members of the board, Plumb Place requested a one year audit for fiscal year 2016, and then a forensic audit over four years. Both were conducted by third-party companies and after this forensic audit an alleged theft was discovered. Shortly thereafter, Plumb Place leadership reported the theft to the Emporia Police Department. Because the investigation continues, Plumb Place is not yet able to share further details of the alleged crime.
We have taken many actions both on our own as a board and recommendations of our auditor and other local organizations that have been in the same unfortunate situation to ensure this can not happen again in the future.
Plumb Place takes its responsibility to improve the lives of the women who seek shelter and a fresh start within our home seriously, and we remain committed to working with every resident of the community to ensure continued access to the programs and services we offer women experiencing homelessness.
There is nothing more important to our organization than upholding the mission of being of aid to women in need and in honoring the trust given by our loyal, local supporters and granting agencies. We hope that the extension of your trust will continue as we work towards resolution of this matter. Plumb Place remains transparent and accountable and will share related information as we are able.
Sincerely,
Clara Corn, MS
Executive Director
Brandon Stiner, PhD
President of the Board
Statement from the United Way Board of Trustees
The United Way of the Flint Hills takes seriously its oversight responsibilities to all organization receiving United Way funding.
In January, 2018, the United Way of the Flint Hills became aware of alleged financial malfeasance at Plumb Place. The UWFH Board of Trustees met on February 1 and, after consideration of the information received from Plumb Place, voted to cease all funding to Plumb Place, effective immediately. The UWFH Board of Trustees stipulated that in order for Plumb Place to be reinstated as a Community Partner in the future, the organization must satisfy a list of requirements, including a fraud examination by a certified fraud examiner and, upon completion of the fraud examination, filing a report with the Emporia Police Department. The United Way remained in communication with Plumb Place throughout the spring and summer to offer assistance on the issues the organization was facing. In July 2018, the United Way was informed that the requirements were satisfied.
At a special meeting of the United Way Board of Trustees on August 1, the Board voted to reinstate Plumb Place as a Community Partner. However, funding for the remainder of the year has not been released to Plumb Place until they satisfy additional requirements in terms of accountability, transparency, and training. Once those conditions are met, funding will be released.
The United Way of the Flint Hills believes deeply in the mission of Plumb Place and looks forward to seeing it flourish under new leadership, but we remain resolute that alleged financial malfeasance be taken seriously and acted upon quickly in order to maintain the credibility of the nonprofit community.
The United Way’s greatest responsibility is to its donors, and United Way Board of Trustees believes it acted appropriately and swiftly to ensure the integrity of United Way donations.
