EVANSVILLE, Ind. — After nearly eight months of investigation and discussion, City Council decided ECHO Housing Corp. can receive funding from the City without restrictions.
Interim Director Chris Metz publicly discussed the nonprofit’s accountability progress and recent achievements to Council members Monday evening asking for their support.
The council voted down an ordinance that would have withheld all money the city gives ECHO until Council sees two things: proof that ECHO changed its policies and procedures to prevent embezzlement or fraud from re-occurring and the results of an independent, third-party audit of the organization’s financial statements dating back three years.
“We are pleased with the ‘no’ vote on the ordinance to withhold funds from ECHO Housing at the City Council meeting this evening,” Metz said in an email after the meeting. “With this decision, Council sends the message that they stand with those who are less fortunate or marginalized within our community, and we commend that decision.”
The vote was 7-2 vote with Finacne Chair Jonathan Weaver, D-At-Large, and Councilman Justin Elpers, R-5th Ward, who established the ordinance, voting to keep the ordinance in place until more information was provided.
The organization has met one condition set forward by the proposed ordiance: they changed their accounting and financial policies, Metz emphasized to Council.
Weaver, along with many other Council members, said they were appreciative of ECHO’s administrative changes, but still has concerns.
“I still have a problem, at this point in time, giving public money to an entity still under investigation,” Weaver commented.
Metz said ECHO was not under investigation.
“ECHO Housing Corp. is listed as the victim of this crime and all paperwork associated with the investigation,” he said. “I think it’s very important to note that the organization is not under investigation — the former executive director is under investigation.”
If the ordinance had passed, ECHO’s services would have been impacted, Metz said.
Ward 2 Councilwoman Missy Mosby said she was “torn” between voting for the ordinance and helping those in need. She said Council had to do something because its city dollars.
“We have not gotten to see an audit yet and neither have you,” she emphasized. “I’m really torn because I don’t want to see our veterans, after school kids and different projects like that not be able to move a step forward.”
Councilman Dan McGinn thought it would be wise to reject the ordinance.
“Why should we punish homeless veterans and homeless families because allegedly one person did something illegal?” he said. “I’m all in favor of voting on this now, and I hope everybody votes it down.”
In March, the Courier and Press discovered former ECHO Housing Corp. executive director Stephanie Tenbarge used the organization’s funds —  allocated for low-income families — to pay her personal property taxes on three properties in November 2017, May 2017 and November 2016.
Tenbarge stepped down from her position March 14 and several attempts to reach her over the past several months have been unsuccessful.
Once the city learned of the fraudulent activity, officials decided to review their contributions to the nonprofit. In the past, the City provided ECHO between $80,000- $130,000 annually, according to Kelley Coures, executive director of Department of Metropolitan Development.
Since the scandal occurred, the ordinance has been tabled twice this year.
In September, Council members requested a financial update from ECHO. Metz outlined new policies and procedures, including:
- Two additional board members are set to be added by the end of the year
- ECHO has fully implemented in-depth accounting policies and procedures
- Implementation of a new Whistleblower policy is ongoing
- The final draft of the forensic audit was completed and handed over to law enforcement July 13
- All checks now require two signatures
- Payroll is now outsourced to a local accounting firm
- All transactions over $1,000 require board approval
- Board of directors now receive weekly reports monitoring transactions and checks written in real-time
- All transactions $5,000 or above now require board approval and two competitive bids
- Executive director no longer engages in direct accounting day-to-day functions
However, the Council’s requested independent third-party audit results are still up in the air.
The Evansville Police Department is still investigating the allegations and using the audit to determine outcomes.
Metz said EPD suggested the nonprofit not release the forensic audit until the investigation was complete. The police department hasn’t responded to repeated requests for an update on the case over the last week.
Metz said Monday that ECHO’s 2017 audit should be complete by the end of the year.
In September, Coures said ECHO was in compliance to receive all funds from DMD, including Community Housing Development.
“Moving forward, we will continue to work diligently to ensure that ECHO Housing is positioned to efficiently serve the housing needs of our most vulnerable community members,” Metz said after the Council’s decision Monday evening. “At ECHO Housing we will settle for nothing short of our overall vision: a community where everyone has a place to call home.”
