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Audit finds misused money at Tennessee nonprofit

By Kyle Benjamin, kbenjamin@wcyb.com
Published On: Jun 13 2013 05:14:18 PM CDT
Updated On: Jun 13 2013 11:00:00 PM CDT

A Johnson City nonprofit is making changes after discovering alleged serious financial impropriety.

JOHNSON CITY, Tn. -

A Johnson City nonprofit is making changes after discovering alleged serious financial impropriety.

The audit of the 2012 finances of the Appalachian Regional Coalition on Homelessness, or ARCH, was completed in March 2013 and given to ARCH in April. 

The findings in the audit have acting Chairman of the Board Dave Hansard concerned. "There are some serious allegations, suggestions of mismanagement by a former employee," said Hansard.

He would not name the employee because of the ongoing internal investigation, but did confirm it was the former ARCH Executive Director.

A check of the WCYB archives shows Dreama Shreve was the ARCH executive director in 2012 during the time of the alleged mismanagement. A Linked-In profile under the same name shows Shreve was the Executive Director until January 2013.

The audit says "Significant deficiencies were disclosed during the audit of financial statements."

Among those deficiencies are allegations that Shreve used an ARCH credit card for personal purchases. The audit identifies charges at Toys-R-Us for $229, Christmas Place for $124, and iTunes for $810.

The audit says these charges were not properly documented, and should have been reimbursed by the Executive Director. "We've formed a finance committee to look more closely into the findings of the audit, "said Hansard.

Hansard told News 5 ARCH has already made some changes: no employee will have solitary control over a credit card, purchases over $500 have to be pre-approved, and any purchase over $50 needs a purchase order.

"We already have some recommendations that are in place and some others that are pending to make sure we never again encounter anything similar. The finance committee will review credit card statements on a monthly basis to make sure all statements are maintained and properly accounted for, "said Hansard.

Hansard doesn't believe there is a organization-wide problem and wants to reassure the public that ARCH is in good shape going forward. "There is nothing, no cause for concern, any finances here that would affect our community partners and their funding, "said Hansard.

Hansard did mention the 2011 audit showed an instance that raised some concern with Shreve's actions, but not to the level shown in the 2012 audit.