The Manatee County Y would like to share a letter written by YMCA Board Chairman Mr. Joey Brannon to the Manatee County Board of Commissioners. Please see below: Ms. Baugh, As Chairman of the board of directors for The Manatee County Family YMCA I am very proud of our nearly 40-year record of service to this community. As part of an organization known around the world for character, decency and honor, the Manatee Y currently serves more than 10,000 Manatee County families, and remains today one of the most significant forces for good in the lives of at-risk and needy children who simply have no other place to turn. Yet, without reason or explanation, this record of service and contribution has been sullied for months by some County administrators making charges they can’t substantiate, suggestions they can’t validate and demands they can’t back up. Those responsible for this are not only hurting the Y, a non-profit dedicated to the betterment of society, but have now put in harm’s way families and children who depend on us for everything from fitness and recreation, to mentoring and after-school programs. This Board, and all those we serve, are respectfully asking you – our elected representatives on the County Commission – to help resolve this undeserved reputational assault. Here are the facts. On July 3rd of this year, the internal auditor for the Clerk of the Court released an investigation report covering five contracts between the Y and the County spanning parts of three years. That investigation took over 15 months to complete. Frustrated by delays and by a lack of responsiveness, the Y hired its own outside experts (Kerkering Barbario) once we were made aware the County had questions about contract documentation. Both reports arrived at similar findings with regard to record keeping, and by the time the Clerk’s investigation was complete, the Y on its own volition has corrected issues brought to its attention. However, the auditor’s report went one step further, included baseless, false and thoroughly outlandish accusations from anonymous sources, whose identity and motivation were never investigated. There is a duty to substantiate accusations before using them as the basis for a professional opinion that becomes the rationale to attack a white hat, non-profit organization. Incredibly, the internal auditor opted to exercise neither professional care nor skepticism about these anonymous attacks, and presented them as factual evidence of wrongdoing. This is particularly egregious considering the auditors, with more than a year to complete its work, and despite offers from the Y for full access and cooperation, interviewed only three YMCA staff before issuing its report. By contrast, officers and detectives at the Manatee County Sheriff’s Department – within a week of being encouraged by the County to prosecute the Y for fraud -- had already interviewed four times as many people, who in turn thoroughly discredited the sensational accounts the auditors took as fact. After being told by the Sheriff’s Office that there was no criminal case, the Clerk’s Office then spent significant taxpayer dollars to fund a second opinion. This second opinion by Oscher Consulting, now public record and unlike the first audit, includes no sensational accounts, no anonymous accusations taken as fact and no mention of fraud. Much has been made of “falsified documents.” Regrettably, one hourly employee duplicated a handful of sign-in sheets. The Y terminated his employment long before his “falsified” records were used by the auditor to justify their report. We have also read wholly misleading accounts of the Y billing the County for after-school programs on non-school days. The County’s auditors failed to read the terms of the contract. If they had, they would have seen the contract expressly allowed the Y to care for kids at Y branches on non-school days, something that low-income families desperately need. In other words, the Y was vilified for doing exactly what it had been asked to do, in writing, by the County. Moreover, of the internal auditor’s eight original findings, five relate to the County department charged with supervising the Y’s contracts, and three relate to Y responsibilities within those contracts. Although the audit identified failings by the County as well, the only target of investigation has been the Y. For example, the Y worked hand-in-hand with our counterparts at CSAB to serve these families. Where contract terms were vague or record keeping requirements were unfeasible, the Manatee Y sought and followed the instructions of County contract administrators. Every invoice and every request for payment was submitted to the County contract administrators and approved by them. Every program was available for inspection, and site visits were part of the oversight. Yet years after the fact, we were informed that internal auditors concluded that a missing sign-in sheet, or misplaced parent authorization form, meant services were not rendered, resulting in a “potential overpayment.” And this thoroughly unjustified conclusion is being used today to hold up payments owed the Y for more than six months. If County staff had acted in good faith these issues would have been resolved, with both sides learning from the experience and possibly improving the overall process. Yet, early on the morning of July 3rd, before the investigation had been made public, and before the Y had any chance to review the auditor’s findings, County administrator Ed Hunzeker took it upon himself to walk into the offices of the Bradenton Herald and tell reporters the YMCA had committed fraud against the County. Mr. Hunzeker, without equivocation or evidence, then asserted that these issues were intentional acts of fraud that “runs the gamut, from top to bottom at the YMCA organization”. Mr. Hunzeker said these things without any findings of fraud by the internal auditor, or any investigation from law enforcement to back him up. His statements have caused the YMCA great harm: to its reputation, to its base of financial support, and to business partnerships and contracts, including contracts with other government entities. In addition, the Y has been forced to spend more than $ 100,000 to date on legal and other professional fees to answer Mr. Hunzeker’s accusations. Instead of spending this money on fulfilling our mission, and our ongoing efforts to support thousands of Manatee families and children, out of necessity we’ve had to expend these resources on legal and reputational defense. The effort to sully the Y’s reputation and financial solidity didn’t stop there. Instead of sitting down with the Y to answer any unresolved questions regarding documentation, which our CEO Sean Allison requested on numerous occasions, Mr. Hunzeker forwarded demand letters to the Y saying we had 30 days to pay the County back for any and all potential overpayments; and threatened the amount demanded could grow even bigger. The Y answered by submitting over 1800 pages of documents evidencing services that were provided. Yet, despite numerous requests, the County refused to meet or engage in dialogue covering this evidence, discussion that would have shown the Y provided services in spite of paperwork deficiency. This brings us to our current predicament. The YMCA has not received any payments from the County since the release of the internal audit investigation. The total outstanding amount is $130,470.90. We have been seeking an explanation for nonpayment for months. Our contract ended September 30th. Only after engaging legal counsel were we informed by County Attorney Mickey Palmer in a letter dated October 31st that the County was withholding payment under Article V of our contract. Article V is a termination clause that requires 30 days written notice. Yet, there is no justification under Article V for withholding payments for services already rendered. Further, the County should consider well any plans to assert that it exercised a termination clause on July 3rd since County staff continues to work with the Y on programs to this day. In fact, the CSAB is currently seeking our approval of a new contract to continue these programs for the 2014-2015 fiscal year. In the meantime, despite the fact that the County unjustifiably withholds payment, and while we still do not have a contract for the current fiscal year, the Y continues to run these programs for the good of 700 families. Pertaining to a new contract, we find several provisions to be unacceptable, especially in light of our recent experience. Our attorney has discussed these items with Mr. Palmer, and they need to be resolved quickly if the Y is to continue running these programs and serving these families with the County’s assistance. The Y continues to be the only entity serving 700 families in the Y DASH program. It is my understanding that you have an upcoming meeting with Mr. Palmer during which these issues pertaining to the YMCA will be discussed. Given the facts above, we respectfully request the following: 1. Direct Mr. Palmer to enter mediation to resolve the demand letters dated July 28, 2014. We have scheduled a third party mediator on December 5th for this purpose. 2. Direct the Clerk of the Court to remit payment for outstanding invoices as detailed in the attached accounts receivable report. Withholding of these funds is unconscionable. 3. Direct Mr. Palmer to resolve objectionable contract terms in the proposed 2014-2015 Y DASH contract that the Y is being asked to sign. 4. Direct County Administrator Ed Hunzeker to publicly apologize for defamatory comments in a statement acceptable by the YMCA Board. As we approach the holiday season, we ask that the County Commission show their commitment to conscience and integrity in protecting the health and well-being of families and children. Thanks for your time and consideration. Sincerely, Joseph A Brannon Chairman, Board of Directors Manatee County Family YMCA
Posted on: Sun, 16 Nov 2014 17:59:09 +0000