I attended the May 21 board meeting. I've also gone back and listened to the tape. I have transcribed portions of the meeting, and will denote transcription with quotation marks and will underline those portions. I will relate what I heard, saw, and transcribed to the best of my ability. In all cases, if you didn't attend the meeting, you should listen to the tape yourself. Comments will be in red.
THE FINANCE REPORT:
Treasurer DeMarchi reports that an issue came up last month regarding bonding of the "accountant and Kathy". "These individuals, it is a policy that has been done in the past here....Kathy contacted the insurance company, OK, DeWitt and they got a bid if paid in full of $394.00 for the total premium for the year. This would bond the new accountant and Kathy to the tune of $50,000." DeMarchi doesn't say whether the policy he speaks about is in the manual, or if it is the old standby "precedent." We can't check the policy manual because they took it down quite some time ago for changes, and it hasn't reappeared, even though our board secretary said it would be back up within the week. In any case, I believe these individuals should be bonded, no matter who they are, or how long they have worked for us, or anyone else. What DeMarchi doesn't tell you is that he has reduced the amount of the bond. I believe when McMillin wanted to hire his favorite person, he reduced the bond to$100,000 because that was what his candidate was either willing to get, or could get. Now, we've reduced it further. Once again, I'm not casting accusations at either of these two individuals. You either view the news, or read it. We read three: Sun Times, Post and Courier, and Georgetown Times. How many times in the last year have there been articles about churches, non profits, and city, county, and state entities, that have had money embezzled or stolen? Several, that I'm sure thought it could, or would, never happen.
McBride, "Al is Bea actually an accountant? DeMarchi, "You talked to her John. You sat down, you did see her resume, OK she does accounting work for probably 20 different organizations and including numerous churches and non profits." McBride, "Is she actually our accountant?" Garrison, "Well yeah, that's what the definition of an accountant is. She's not a CPA." Cline, "You interviewed her. You even called back......" McBride, "She said to me (some confusion - board speaking out of turn, can't hear all that McBride is saying). That's why I'm asking the question. SHE SAID, 'JOHN, I AM NOT AN ACCOUNTANT, NOW YOU GET THAT STRAIGHT. I AM NOT AN ACCOUNT. I AM ONLY A BOOKKEEPER', That is what she told me." Cline, "Well that is all she is doing." McBride, "We need to change that. Look at her business card. It doesn't say accountant on it." DeMarchi, "You saw her resume." McBride, "It doesn't say accountant." Cline, "Let's just talk about what she is going to do. She has no key and she doesn't go into the files - PERIOD!" McBride, "She does checks?" Cline and DeMarchi, "No!, No!" DeMarchi, "It wouldn't matter John, because as an accountant, or a bookkeeper, OK she is taking care of our books, OK and getting them resolved OK, which is why you don't have a financial report for this month, because Kathy and Bea are having to...go back all the way to 2011 into Quick Books OK. We're having to reconcile the account from Edward Jones which was not done by the management company. We're having to reconcile the check book, which was not done on a monthly basis by the management....That's why I have requested of the board not to give Kathy....amount of work. We're trying to get....The BOOKKEEPER has assured me that we will have good financials at next months meeting. I apologize...there is noting we could do, but I will not put my name to a set of financials that I WAS TOLD HAVEN'T BEEN GOOD FOR YEARS. WHEN I GET DONE WITH THEM IT WILL BE ACCURATE. I WON'T SAY THEY WILL BE GOOD, BUT THEY WILL BE ACCURATE."
Here we are back in the red again. Remember, RED for comments. First, why do DeMarchi, Garrison, and Cline slice words? Yes, I've read what accountant says in the dictionary. With over 25 years of experience working with non profits, some involved with over a thousand major to small businesses, when you asked who is your accountant? They immediately, gave absolute detail. "We have a bookkeeper in house." Our accounting firm is". No one sliced words and let you believe they were anything but what their actual certification, education, and experience designated them to be. This appears to be nothing more than slight of hand. This person doesn't have keys, is never in the files, and never touches the check book. Who writes our paid staff check? What is Cline so smug about as she, and others try and make McBride look small? DeMarchi has just thrown her, that awful management company, fellow board member and former treasurer, McMillin under the bus! He says, that it hasn't been right for years! McMillin and Cline line up behind him as previous treasurers. DeMarchi, once again, is going to fix it all, just like drainage, they've been wrong for years too! How did the WPA ever pass audits????? I'm going to ask the following question with no offense to our paid staff person. I interviewed and hired her. I like her. She was hired to perform secretarial duties, not bookkeeping or accounting. Her references were checked based on a secretarial job description. We had a CPA. Did your board ever show you her new job description, ever tell you what the change would cost us, or what her credentials were??? How many people did DeMarchi interview? This is a CONTRACT JOB. Did he seek three bids? It could appear that the whole process of developing the so called accounting department is slight of hand. How much in total are all these changes costing us, and when were we completely informed? Here we are again with reporting being changed in the world according to the current treasurer, without the complete support of a CPA who would be bonded and have to follow standard accounting procedures and not just the whim of our ever changing treasurer, and we would know what the total accounting package costs, and could review the contract. No one would let me review McMillin's contractor contract, or the management company's contract. Why, they aren't employees? Even if they were, I have had my salary published for every non profit job I held.
President Walton asks DeMarchi if he has made a motion. DeMarchi, "No, I did not make a motion. If someone else would like to make that motion, because I feel it is NOT NECESSARY in the case of Kathy, OK, she's been with us for five years now." Garrison, makes the motion. He ends it saying, "That bond is only good for $50,000 each?" Cline, "Well, we don't have cash in our office." McMillin, "I'll second." Garrison, "I think Al is right - may not be necessary, but self protecting interest of the membership, for the little bit of money that it costs, but think it protects everybody. Fifty grand each is way more than either of these folks are going to be handling at one particular point and time because their not empowered to sign the checks. They don't have access to anything beyond $50,000. They can't withdraw money from our accounts, cut or write checks to themselves, sign them, or any thing, so I think that is more than enough for adequate protection." McMillin, "In the past, isn't it true we were only required to have one paid employee which is Kathy, anyone else would be a CONTRACT....(someone says yes)...Alright, when we had Kathy B here as the accounting person, she was required to furnish her own bonding, which she paid for. So why are we suddenly going to pay for a contract worker, on behalf of our bookkeeper slash accountant, when we didn't do that in the past?"
Good question McMillin! Remember, your board uses precedent when it suits their needs, and flings it off, when it doesn't. Will McMillin push his point? Watch and see!
Garrison, "Did Browley ever get bonded?" McMillin, Yes, she did." McBride, "Was she a bookkeeper, or an accountant?" McMillin, "I BELIEVE she had an accounting degree...She was not a CPA." DeMarchi, "She was bonded?" McMillin, "Yes, she was bonded. She was bonded here. She had to furnish a bond. I mean if you think it is worth it to protect WPA and that sort of thing...We haven't done it that way in the PAST. We bonded Kathy because she's our employee. Anyone else is a contract employee." Garrison, "And I would see that, although, I can't see for certain...." McMillin, "Well one thing, I mean she works DIRT CHEAP. WAY CHEAPER THAN ANY THAN ANY WE'VE SEEN IN THE PAST. I understand she is doing a very good job. So in that respect I mean for as far as CHEAPLY, as she is working...issue...because she is WORKING SO CHEAP ALREADY. I'm in favor of the idea, but NOT TOTALLY 100% IN FAVOR OF THE PRINCIPLE." President Walton says, "All right, we have a motion and a second." He repeats the motion. All vote. Someone abstains. We may never know who, because it is not included in our sanitized minutes. If I abstained on this mess, I'd want it noted in the record.
Did you see McMillin let it slide? Watch later. He'll let other things slide. Later, members of your board will let something slide, when he gives his report. "Could it be, "I'll wash your cohesive back, if you wash mine? In the mean time, in his own words, "CHEAP", that is what you and I get from this board on our MONEY. So much is done, letting important items slide by.
