$900,000 missing at Weber foundation
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No Comments [ Add Comment ]By Amy K. Stewart
Standard-Examiner staff
O
GDEN -- The former secretary of the Weber School Foundation is being investigated after $900,000 in private donations was discovered missing from the foundation over a five-year period, Weber School District officials said Wednesday.
"The issue is still under investigation and charges have yet to be filed," said district spokesman Nate Taggart.
The nonprofit foundation raises funds to help enhance the educational experience of district students. The money especially targets handicapped children.
Since its formation in 1976, the foundation has been governed by a board of volunteers. The board has accounting procedures and programs independent from the district, Taggart said.
Two people are employed by the school district to run the foundation finances: foundation Executive Director Dave Howells, and the foundation secretary.
Howells said he is not being investigated but "is worried sick" about the situation.
Law enforcement officials said Wednesday they are reluctant to release specifics, such as the secretary's name, for fear of endangering the investigation.
Taggart said questions were raised in November by the foundation's audit review subcommittee and district staff members regarding expenses that were higher than expected and budgets being overspent.
It was discovered the check ledger contained duplicate entries. Further investigation revealed the secretary had been writing checks into her personal account and forging signatures, he said.
District and foundation officials alerted the Weber County Sheriff's Office in December.
The foundation secretary, who had been employed by the district for 11 years, was put on paid leave for several days and was then terminated on Dec. 20, Taggart said.
Foundation board President Kathleen Alder said she was sickened to hear the amount of money that is missing. "It's horrible," she said.
No foundation board member is being targeted in the investigation, said foundation board member and spokesman, Bryan Benard. He is an attorney with Holland and Hart, of Salt Lake City.
"Betrayal," Benard said. "It's like the floor being yanked right out from under us. Trust is lost."
Holland and Hart is doing 125 hours of pro bono legal work to recover the missing funds so the foundation won't have to use donated money to seek restitution.
The foundation has $1.3 million in assets. Funds mainly come from interest, as well as two annual fundraisers: the Christmas Tree Jubilee and a golf tournament. The Jubilee raises an average of $120,000, while the tournament can bring in as much as $50,000.
The 2005 Jubilee, which drew 10,000 to 12,000 visitors, raised $160,000. About 130 trees were sold at the 2006 festival but final figures are not yet available.
Foundation operating costs of about $120,000 are covered by the district with the intent that all donations be used for designated projects.
"We, as a board, are heartbroken because it appears that funds donated have been diverted away from the children," Benard said.
"To our knowledge, we have funded every project that the foundation board has approved," he said. "And every child and every school that we have approved funding for has been funded."
Sheriff's Detective Mark Lowther is handling the investigation. It could be completed in a few weeks. Investigators will then bring reports to the county attorney's office for review. At that time it will be determined if charges are to be filed, said Weber County Attorney Mark DeCaria.
Foundation fundraising projects have provided students with calculators, band equipment and trips to the Ogden Nature Center. The foundation has raised money for wheelchairs, special classroom chairs and computer-voiced equipment to assist students' special needs.
Benard said the foundation will continue to serve the children of Weber County. Board members are cooperating with investigators. They hope to obtain restitution of the funds while "maintaining the public trust and continuing to serve our vital purpose of helping the children of Weber County."
The foundation is working to put into place internal controls to be proactive against any future embezzlement attempts. There is a freeze on all assets, checks and expenditures, Benard said.
"We are reviewing policies," he said. "We are looking into our past audits."
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