BOARD OF DIRECTORS OF NON-PROFIT ENTITIES HAVE A FIDUCIARY DUTY
The boards of directors of non-profit entities have a fiduciary duty to assure that the accounting of that non-profit is carried out in a way that guarantees sufficient oversight of the funds that have been entrusted to the non-profit that they serve. A fiduciary duty is the highest standard of care. The person(s) who has a fiduciary duty is called the fiduciary, and the person(s) to whom he owes the duty, is typically referred to as the principal or the beneficiary. If an individual breaches the fiduciary duties, he or she would need to account for the ill-gotten profit.
Evansville’s Echo Housing is in the midst of something that is most certainly a failure of its board of directors to provide sufficient oversight of the taxpayer dollars that have been allocated to its day to day operation. The situation is further complicated by the fact that Echo’s former Executive Director, Stephanie Tenbarge who is alleged to have used Echo Housing funds to pay her personal expenses is also the Secretary (non-voting) of the Echo Housing board of directors. That will put Tenbarge in a doubly problematic position of being both a responsible fiduciary and a staff member who allegedly committed the crime of theft. The other board members have not been alleged to have stolen any money but have most certainly failed in their fiduciary duties.
To further complicate the situation at Echo Housing, the board of directors has thus far chosen to avail themselves of opportunity of cooperating with the Evansville Police Department that is poised to conduct investigation of the alleged crime of theft at the expense of the taxpayers of Evansville, the State of Indiana, and the United States. As donations made to a 501c3 non-profit like Echo Housing are deductible at the state and federal level, theft of said funds would constitute theft from all of the taxing authorities impacted by that deductibility.
It is confounding that the Echo Housing board of directors is refusing to do what is needed to gain the assistance of law enforcement when taxpayer dollars are involved. Perhaps there is an internal investigation going on that is fully comprehensive and the Echo Housing board wants to complete the internal investigation prior to allowing law enforcement to do its duty. Time will most certainly reveal the motive for obstructing any immediate investigation.
Theft from non-profits has been common in greater Evansville. Other instances have resulted in prosecutions, plea bargains, and often in restitution. This is what should happen in this case and the Echo Housing board of directors is responsible to cooperate or even participate in assuring that the taxpayers are made whole. Non-profits are required to have annual audits and file tax returns. The audits and tax returns of Echo Housing would make a good place to start investigating just what happens to the money that is trusted to this board of directors.
There is one thing that is not up to the Echo Housing board of directors and that is to choose whether or not the laws of the land with respect to theft will be enforced. Much like the Mayor of Oakland, California who has chosen to obstruct federal law by resisting the efforts of federal immigration officers to maintain her Sanctuary City stance, the Echo Housing board of directors is aiding and abetting an alleged crime by failing to cooperate with the Evansville Police Department.Â
The EPD can seek a warrant to be granted access to the financial records of Echo Housing. With a warrant, they will be capable of investigating all of the financial transactions of the entity. Let us hope that the Echo Housing board of directors comes to their senses and provides the fiduciary duties that they are responsible for providing. That starts with departing from the current path of running a Sanctuary non-profit agency.
FOOTNOTE: We were extremely impressed how EPD Communications officer Jason Cullum conducted himself at yesterday’s news conference. Lieutenant Cullum was masterful.
We would like to know who are the current ECHO Housing Boards member and who is responsible for appointing them.Â
Your commentary has a glaring flaw by saying that audits are required, since neither Indiana or Federal regulations have absolute audit requirements for nonprofits
In general, it would be ignorant and nonproductive to require nonprofit organization’s that have almost no real budget or financial wherewithal to pay for an audit when that audit would be a burden to the point of breaking the budget of that. nonprofit. Do you understand how much a CPA would require for an audit?
Furthermore, Indiana does NOT require nonprofits to perform an audit.
The Indiana Code (5-11-1-9) only requires an audit when the nonprofit meets the threshold of public fund disbursements. While ECHO might meet the requirement, that is not true for many nonprofit organizations
The requirement for a nonprofit to conduct an audit is ONLY triggered when a nonprofit receives federal funds from either one or several government funding sources (whether in the form of a government contract or a grant) AND when that nonprofit expends $750,000 or more in federal funding in a single year.
CPA audit about $5000
I worked with a CPA firm a long time ago, and that number is nowhere close to modern reality
And there are MANY nonprofit groups that do not have $5,000 in the bank, let alone to budget this for yearly use
Well heck! Your second paragraph implies you didnt know.What gives?If you knew you would have said how much. I say my number is close. I TOO was a finance guy.So there.
I run a non-profit in costly Southern California that has an annual budget of just under $5 million. We have federal grants, state grants, private foundation grants, etc. and are required to do an annual audit. Last year the fee was $10,000. When I was the CEO of GAGE in Evansville, our budget was more like $1.2 million and our annual audit cost was exactly $5,000. That was nearly 10 years ago so it is probably a little higher now.
Mickard worked for an accounting firm but isn’t a CPA. Most likely he/she is trying to imply beancounters are worth more than what they actually charge.
ECHO’s actions are beyond comprehension and, more importantly, I believe that the Board members of the organization can be held personally liable for any malfeasance that happens under their watch. At a minimum, the Board’s actions certainly will have a negative impact on the financial well being of the organization as well meaning donors must question where they donate their dollars.
Well past time for a full multi-year audit of ECHO housing
Helloooo EVSC? This is what proactive school districts are doing to better protect their students. 11 years of better protecting their students with ZERO problems:
…………………….
“This Texas school began arming teachers with guns in 2007. More than 170 other districts have followed.
Harrold Independent School District was the first of many Texas districts — mostly in rural or isolated areas — to arm educators and other employees to prevent a potential school shooting. “I don’t want to be anybody’s victim,” the school’s superintendent says….
Critics argue that allowing guns in schools makes students and staff less safe and adds another burden on schools. But proponents say it helps districts more quickly respond to active shooter situations, and the chosen employees often have to pass psychological or shooting tests.
“People always picture the absentminded woman who couldn’t find her gradebook,†Thweatt said. “They picture the worst candidate for this. And not everybody in our system is a candidate for this. 
And with every school shooting since 2007, including the one in Parkland, White said support for arming their educators has only grown.
“It has given me peace of mind,†she said as she watched her 16-year-old son and his peers return from physical education class from her seat high in the wooden bleachers of the school’s modest gymnasium. “We all wonder, why aren’t bigger schools taking that policy and action yet? I don’t understand because it’s only getting worse.â€
https://www.texastribune.org/2018/03/22/rural-texas-harrold-school-teachers-guns-before-parkland/
The Executive Director of ECHO Housing terminated, the Executive Director of the Evansville Philharmonic Orchestra suspended and “no longer here” (might be “with cause” and no one can comment), and the McClean County, KY schools superintendent officially agrees to “resign” (with paid leave until October 31, 2018), the Owensboro Municipal Utility general manager resigns, the,Union County KY Judge Executive charged with scheming to defraud?
Is this Chicago?
What’s next? A sitting U.S. President with a tawdry past or questionable moral activities while in office? (Oh, wait a minute, we’ve had/have several of those already.)
It’s the Apocalypse people, I tell you it’s the Apocalypse!
Yes, political corruption is rampant at all levels of government. Why, we let it happen. My guess, since the days of prohibition, those who have, get away with murder and the rest, go to jail. Look at “Scar Face Al Capone, he went to jail not for murder, but for income taxes. He got his due from above when he died of syphilis. Since those days bribery, corruption, back stabbing, dirty politics, etc., etc., etc., have given the few the chance to screw the rest. I am tired of it, but until the forces of law and order take back the court houses, executive, legislative and the rest of the judicial farce, nothing will ever change. Anyone disagree?
You think the “forces of law and order” will rid us of corruption? Hell, they’re in on it! They are some of the worst offenders and enablers.
And, I will agree, this shit has gone on since time immortal, but prohibition puts it in perspective for today. Lot of talk about term limits lately. One way to stop this is limit the time you can occupy an office. Look at DC, there is a reason Dems and Reps keep running for Congress or Senate. The bottom line, their checking account. Ever wonder why they vote the way they do? Check the contributions from special interest these slimeballs get. Their accounts are padded with political favor money and we, the little people, are cannon fodder.
And an example of why income taxes are so complicated you can’t do them yourself any more. H&R Block, Intuit, TurboTax, and acvounting firms have lobbied/bought Congress to prevent simplification of taxes and tax reform.
Anybody else feel like they were taken to the woodshed today? 1.3 Trillion dollar budget. Except for our military, it has more Rep and Dem pork than all the hog farms in Iowa. Trump, lost his balls and did not veto it, so his true colors came bleeding through. We are done for as our nation has fallen under the influence of political greed.
Yep, I feel just like I did when they passed Obamacare and the stimulus all in the same year.
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