No accounting for accountability over club funds

No accounting for accountability over club funds

By John Rech ‘Pressed Down & Measured’

[ Note: This is the last half of two part series regarding boys and girls club funding in West Memphis. Part one appeared in the Oct. 7 edition of the Times]

Silo mentality — there is a lot of that going around West Memphis these days. In a seemingly bygone era, ethical consideration used to look out for the benefit of others, especially in regard to government or altruistic endeavors. But now days many of these organizations look at just their own silo. If ramifications of a poor policy or procedure spill over impacting someone outside the organization it now seems beyond the scope of contemporary organizational ethic to consider. It’s all about “I’ll get mine.”

Part one of the this two part editorial series amounted to an expose on the city funding of the local boy ands girls clubs. The L.R. Jackson Girls Club in particular, its leader Chancey Rainy (with a December trial date set over felony drug charges) certainly pointed to three concerns. How can the legal maxim of presumption of innocence, and the ideal of operating above reproach both work under an ordinance mandate for the “benefit of West Memphis children” and be properly balanced. The answer lies outside the silo of what may be personally ideal for Rainey, outside the silo of what may be best for West Memphis City Council, outside the silo of the L.R. Jackson Girls Club operation, outside the silo of community power struggle.

The reports required by the City are bogus, vague, largely impertinent and woefully inadequate. They are antiquated. Further, the current ordinance governing clubs is nothing more than a driveway for the Brinks truck straight from the back door of the revenue source at Southland to City Council for a customs check and onto the youth club to pockets and purses yet unknown.

There exists poor accountability between the City and the clubs. Another club’s auditors are now insisting higher accounting standards from the City. The required paperwork is so poor it proved cause for

their concern. No one at the City can even find their dollar-a-year lease. Substandard reports stave off some prospective donors and disqualify considerations from grant funders at already woefully under funded clubs.

The clubs originated during a bygone generation. Look today at just one IRS requirement on non-profit organizations. For years the IRS has required 501(c)(3) groups to make their form 990 available for public inspection. In order to qualify for tax-exempt status, an organization must show that its purpose serves the public good verse a private interest.

Subsequently there are some things afoot in the City.

Aside from the Rainey saga and to his credit City Treasurer Frank Martin intends to discuss changing the revenue distribution process to the local boys and girls clubs at least in so far as he has legitimate concerns. One concern is tax related information.

“That’s the reason I have been trying to get the ordinance changed, it requires no audit or 990 return right now,” said City Treasurer Frank Martin.

It is time clubs and the City stop acting as if they were under some cloud of collective ignorance. Some club reports fail to have a current list of key holders and board members with contact information. Who does what and why along with a summary of how clubs operate would be clear as day, available for public inspection if on file at the city with a 990 and a copy of non-profit audit conducted under best practice standards. The information currently required by the city of the four clubs is practically useless. Bogus.

The City Attorney drafted proposed changes to the club ordinance more than a year ago to meet new expectations from Council. There is probably a dusty copy laying around in a City Council pigeon hole somewhere. I’m OK with that. In my opinion the proposal fell far short of addressing club concerns today.

Again, when the club funds were allotted this spring, Councilors Willis Mondy and Helen Harris asked to meet with Martin among others to look at changes in the oversight for the clubs. Mondy thought the L.R. Jackson Club’s activities programs left a lot to be desired.

“We all know they are not doing anything at that club,” said Mondy at that time to Councilwoman Helen Harris. “We need to talk about making changes to our club policy.”

Martin has pointed to benefits of the changes on his mind including easing some burdens all the way around. He’ll soon suggest remedies relieving the burden of expense, and the number of and types of reports that club leaders must work to compile each year. The idea may relieve a burden for the City of making withholdings and paying overdue club bills and leaving any would-be shut off notices the responsibility of the club.

Ignoring the problem hasn’t helped the club pay its bills on time. Ignoring hasn’t propagated kids programs. Instead, ignoring it has allowed things to fester at the L.R. Jackson Girls Club. Club kids best interests were subordinated. Kids are the innocents.

It is about the kids. For the sake of our upcoming generation let’s clinch this club ordinance issue.