Urban League's Kelly Charged in school gun case

Seattle Times staff reporter

The City Attorney's Office filed a weapons charge yesterday against the president of the Urban League of Metropolitan Seattle, alleging that he brought a firearm onto school grounds.

In a written statement to police, James Kelly admitted carrying a handgun when he attended an evening community meeting at Rainier Beach High School on May 29.

Under state law, it is a misdemeanor to possess a firearm on school premises. If convicted, Kelly faces a maximum penalty of one year in jail and a $5,000 fine. Kelly would also lose his concealed-weapons permit for three years.

Reached yesterday, Kelly, 47, said he had not seen the charges and would not comment about the case. "I trust the process. I believe in the system," he said.

Herman McKinney, an Urban League board member, said the charges took him by surprise. He said the board never discussed the incident, but he thought members would take it up later this month now that the City Attorney's Office has become involved.

"I do know that it was not a good idea to bring a weapon on school grounds,'' McKinney said. "But I would hate to see anything disrupt the leadership quality that he (Kelly) has."

In earlier interviews, Kelly said he and his family had received threats in recent months from people opposed to the Urban League's plans to develop a former Central Area school into apartments, offices and an African-American heritage museum.

On the night of the alleged violation, Kelly told police he had a run-in with Kwame Garrett, 25, son of Omari Tahir-Garrett.

Tahir-Garrett claims to be the true leader of the heritage-museum effort at Colman School, and he opposes the Urban League's plans.

The Colman School project has been mired in controversy for years.

Omari Tahir-Garrett was one of the activists who occupied Colman in 1985 to force the city to build a cultural center there. Now, Tahir-Garrett claims to be the true leader of the African-American museum, and he rejects Kelly's ideas for condominiums and a scaled-down museum on the site.

On July 8, Tahir-Garrett will stand trial for allegedly hitting Mayor Paul Schell with a megaphone during a community festival last summer. His first trial ended with a hung jury.

In his statement to police, Kelly wrote that the younger Garrett confronted him about the Urban League's proposals, and blocked him from leaving a hallway outside the school's performing-arts center. "I decided I needed to do something or I was going to be attacked," he wrote.

He said he placed his hand on a gun under his coat but did not pull it out or point it. Observers broke up the altercation, and Kelly left the building. He later called Assistant Police Chief Harry Bailey, who suggested that he get a "no-contact" order against Garrett and others.

Garrett and his father called a news conference June 4 at Colman School to discuss the Rainier Beach incident, and they lashed out at Kelly and the Urban League as "vampires'' unfairly taking over their project.

"I was completely shocked that someone who is supposed to be a civic leader would do something of that nature," Garrett said.

From the Seattle Times

Urban League Says it's Dead

URBAN LEAGUE SAYS IT'S DEAD, CLOSING FRIDAY.
NATIONAL ORGANIZATION WAS SEVERING ITS TIES
By Anthony J. Gottschlich, Springfield News-Sun
April 23, 2002

The Springfield Urban League and Community Center will close Friday, the nonprofit organization's executive director said Monday.

Donna Brino-Blackwell said 16 employees will be laid off and the League's programs, for the most part, will cease.

"Everything happens for a reason," said Brino-Blackwell, 46, who has directed the League since 1991.

She said the remaining four board members will lay her off by April 30 _ "because I'd done nothing wrong to be terminated" _ and then resign themselves.

Friday could be the end of the League's four-decade existence in Springfield.

Brino-Blackwell's announcement followed a statement released earlier in the day by National Urban League officials, who said they planned to cut off its affiliation with the Springfield League next month, pending approval by the national group's board of trustees.

The decision is based on the failure of Brino-Blackwell and her board to correct troubles identified by the National League more than a year ago, national officials said in a press release. The troubles involve operational, financial and board-governance issues, the statement said.

"Our hearts go out to the affiliate staff and volunteers who dedicated time and energy into serving their community, and we empathize with a community that will likely feel a great void as well," said Annelle Lewis, the national organization's senior vice president for affiliate development.

Brino-Blackwell said she was disappointed by the national League's decision, but not surprised by it. She declined to comment on the national group's charges, saying, "I'm trying to reach national myself."

According to the press release, Springfield can continue to have an Urban League presence here, "perhaps through another Ohio-based affiliate." But that would be up to the community and the League's current and former funding sources.

Local officials weren't surprised by the news Monday. They expressed hope that at least the League's mission would remain here.

"I think it's important there be an agency in Clark County that represents an Urban-League type of mission and help for the minority community," said Doug Lineberger, executive director of the United Way of Clark and Champaign Counties. "Whether or not it is an Urban League remains to be seen."

The consensus at a town hall meeting Saturday at City Hall was that Springfield wants and needs an Urban League.

Tony Hutchins, the local attorney who ran the meeting, said Monday he hopes national League officials will modify their position so Springfield can maintain an Urban League here with some local control.

"We've always preferred that it be an independent entity, but we are open to all the possible discussions that need to take place, not just with the national Urban League, but with the funding sources as well to see what the issues are and the best way to be viable in the long term," said Hutchins, who represents a group of clergy concerned about the League.

Hutchins is compiling a list of community members to assess the Urban League's situation, get names of possible new board members and evaluate the effectiveness of Urban League programs. Identified community members include former Springfield mayors Robert Burton and Dale Henry, former Springfield Police Chief Roger Evans and former Urban League board members James Qualls, Lymon Alexander and Colleen Buscemi, among others.

Hutchins expects the committee to meet with funding sources soon. He also said the Dayton Urban League could become a key ally in the process.

Dayton Urban League Executive Director Willie Walker could not be reached for comment.

"We got our work cut out between now and next month," Hutchins said.

In the meantime, Lineberger said the United Way is willing to help ensure there's no disruption in services at the Craig House, the League's homeless shelter at 1417 S. Limestone St.

Brino-Blackwell said she's confident the League's troubles can be turned around. She wants to help with the transition between the existing operation and the new local group poised to take over.

"I'm sure there's a way that this can be worked out with the national (organization) and with the local constituency," she said. "I stand ready to meet with anyone."

She said some of her staff are willing to stay on as volunteers in the meantime.

Brino-Blackwell joined the Urban League as a volunteer in 1987. She later became a secretary and then assistant to then-executive director Charles Nesbitt. When Nesbitt resigned in 1991, the board promoted Brino-Blackwell to interim director. The board removed ``interim'' from her title in March 1992.

"I've been judged for sure, but I wish I'd be judged on my work," Brino-Blackwell said.

"What's important is this: The Urban League is bigger than any one person or any group."

The nonprofit, tax-exempt Urban League was founded in 1963 to empower African-Americans and promote racial, economic and social equality. The League has worked over the years to provide shelter for the homeless, assistance to crime victims, job-placement services and other programs for the needy.

In February this year, the Springfield News-Sun began a series of stories detailing the League's financial mismanagement, contract violations with its funders, program problems and debts.

The league has lost the bulk of its funding from several key sources since then, including the Clark County Department of Job and Family Services, the United Way of Clark and Champaign Counties and the Eastern Miami Valley Alcohol, Drug Addiction and Mental Health Services Board.

Leslie Dunbar, the national League's spokeswoman, said the national group doesn't have the power to remove the local League's administration or board of trustees because each affiliate is its own corporation.

From Best of Cox Award

NAACP Tells Urban League to Clean Up

‘CLEAN SWEEP' URGED.
LOCAL NAACP LEADERS ADVOCATE OVERHAUL AT URBAN LEAGUE
By Anthony J. Gottschlich, Springfield News-Sun
April 18, 2002

The Springfield chapter of the National Association for the Advancement of Colored People on Wednesday called for a "clean sweep" at the Springfield Urban League and Community Center, once a strong ally.

"There's no question there needs to be drastic change over there," local NAACP President James Bray said. "A clean sweep."

Bray's comments came during a visit this week by representatives of the National Urban League, who are here to check into their troubled affiliate, which has lost the bulk of its funding in recent weeks because of contract violations, financial mismanagement and other problems.

"We don't want in any way to harm the Urban League, because Springfield and Clark County need the Urban League and all that it stands for," said Bray, whose remarks were supported by Arnett Hardnick, the NAACP's fair housing chairwoman and mediation coordinator.

"All we are asking, as a national organization, is that the community rally so that the Urban League can remain here with its programs intact (and) that there's accountability from top to bottom so that the community's confidence is restored," Bray said.

Springfield Urban League Chairman Ron Ross resented Bray's statements, saying the NAACP should tend to its own business.

"They can't afford to be throwing stones at people," said Ross, a longtime NAACP member and former local chapter president. "I'm a full-blooded NAACP member, and they should be doing the job like they're supposed to be doing."

Hardnick has mounted an Urban League membership drive in recent weeks and said she has enlisted about 50 new members. She wants to sign up enough new members to force a leadership change at the League, although she isn't sure who the new leaders should be.

"We got to keep it real, and we got to keep it honest," Hardnick said. "And I think the community deserves full disclosure of all financial records — what came in, what went out."

Bray and Hardnick hope local community leaders support their position. Several did on Wednesday, saying a change in leadership is necessary for the League if it is to be effective in the community.

"It's absolutely imperative there's a clean sweep, because I think it's important for credibility that it start afresh," said State Rep. Merle Grace Kearns, a Springfield Republican and longtime Urban League member.

Springfield Mayor Warren Copeland said, "My sense is that the various organizations that provide funding are going to be reluctant to restore funding without that kind of a change. So if the only way we can keep an Urban League in Springfield is for that kind of change to occur, then I think it needs to occur, because I think we need an Urban League."

To date, the Urban League has seen about $391,000 of its funding terminated or suspended this year, including $125,000 from the United Way of Clark and Champaign Counties and $143,000 from the Eastern Miami Valley Alcohol, Drug Addiction and Mental Health Services (ADMH) board.

The cuts follow a series of stories in the Springfield News-Sun about the League's problems.

"If they'd done a clean sweep a month ago, it would have offered our board a chance to perhaps go into a rebuilding mode with them instead of terminating our contract," ADMH President Paul VanderSchie said.

City Commissioner Kevin O'Neill and Clark County Commissioner John Detrick agree with the NAACP.

City Commissioner Dan Martin isn't so sure.

"Obviously something's broken down there, and I'm not sure what it'll take to get it back on its feet," Martin said.

City Commissioners Joyce Beverly Casey and Martin Mahoney couldn't be reached for comment.

State Rep. Ron Rhine, D-Springfield, said he will withhold judgment until the national league releases its findings.

"The Urban League has done a lot of good things for this community throughout the years, but to call for a clean sweep? I can't say that," Rhine said.

National Urban League officials declined to comment Wednesday, but are expected to release a statement today.

"There's nothing to report right now," said Leslie Dunbar, the national league's spokeswoman.

State Agency Halts Funding. Audit Team Will Examine Urban League Performance

STATE AGENCY HALTS FUNDING.
AUDIT TEAM WILL EXAMINE URBAN LEAGUE PERFORMANCE
By Anthony J. Gottschlich, Springfield News-Sun
February 12, 2002

The Ohio Department of Development has frozen its funding to the Springfield Urban League and Community Center pending a departmental investigation into the Urban League's financial troubles, a department official said Monday.

The department's latest grant of $48,400 partially funds the Urban League's homeless shelter, the Craig House at 1417 S. Limestone St.

The department will send an audit team to the Urban League on Feb. 25 to determine how the League is using department funds, said Marlo Tannous, the department's chief legal counsel. The department also will investigate whether any contract provisions were violated, she said.

"If they've misspent the money, certainly we'll ask for it back," Tannous said. "If they have used the money as they have indicated, unless there's some other thing revealed in the audit, we would probably not seek a return of the money."

Any further action depends on what the audit reveals, she said.

Urban League officials, including Executive Director Donna Brino-Blackwell, referred questions to their attorney, James R. Greene III of Dayton.

"I'm a little surprised because the ODOD has not released the funds and they are not scheduled to be released until April, so there cannot be a freeze of something that hasn't occurred," Greene said.

"We welcome their audit," he said. "If ODOD finds something wrong, we'll fix it. If there's nothing wrong, we expect them to follow the law and not doing anything that's adverse to the client populace which we serve. Otherwise, I'll deal with them appropriately."

A Feb. 3 story in the Springfield News-Sun revealed the Urban League had not provided state-required workers' compensation insurance to its employees from Sept. 1, 1996, until Jan. 29 of this year. The lapse violated contract agreements between the Urban League and several of its funding sources. The Clark County Department of Job and Family Services terminated its contract with the Urban League because of the lapse.

The story also detailed audit report findings that included past tax debts to the state of Ohio and city of Springfield and other financial management concerns.

Last July, Brino-Blackwell signed a contract with ODOD affirming the Urban League had workers' compensation insurance and had no outstanding debts with the state of Ohio. The contract stated that any false statements made to secure the grant could be grounds for a falsification charge.

It's too soon to make that charge, Tannous said.

"We just need to do our homework and check all the facts," she said.

Tannous said the investigation could take a couple of weeks. While no funds are scheduled to be released for a while, she said, freezing funding was a precautionary measure in case the Urban League made an early request for reimbursement, as agencies may do.

The Craig House is funded by at least two other sources _ the city of Springfield and the United Way of Clark and Champaign Counties.

The Urban League, a nonprofit, tax-exempt charity at 521 S. Center St., runs a variety of programs designed to help the poor and disenfranchised reach economic and social self-sufficiency. Programs include housing and education, a food pantry and assistance to victims of crime.

"This agency is like any other agency _ they have their ups and downs," Greene said. "But one thing that is clear is that we do need to correct some things, and that is my mandate. The board has retained me to ensure we're in compliance with the law and in compliance with program requirements, and we will get to that point as quickly as possible if we're not there already."

From Best of Cox Award

Agency's Finances Troubled Urban League's Record of Financial Mismanagement Places Programs in Danger

AGENCY'S FINANCES TROUBLED.
URBAN LEAGUE'S RECORD OF FINANCIAL MISMANAGEMENT PLACES PROGRAMS IN DANGER
By Anthony J. Gottschlich, Springfield News-Sun
February 3, 2002


The Springfield Urban League and Community Center boasts a four-decade history of serving the poor and disadvantaged in this community, giving shelter to the homeless, a helping hand to troubled youths and a second chance to ex-cons, among other charitable efforts.

Recently, it has a history of another sort, one leaving the nonprofit organization in financial straits and its mission in jeopardy, a month-long Springfield News-Sun investigation has revealed.

According to a review of court documents, tax returns, audit reports, agency contracts and internal correspondence, as well as interviews with local and state officials, the News-Sun has learned that the Urban League:

  • Until last Tuesday afternoon had not provided state-required workers' compensation insurance to its employees since Sept. 1, 1996. Also, it did not pay unemployment premiums to the state of Ohio several times in the 1990s, which forced the state to file liens against the organization.
  • Breached its contract with the Clark County Department of Job and Family Services because of the workers' compensation lapse. The department terminated its $74,000 contract with the Urban League last week. Other contracts could be in jeopardy for the same reason.
  • Sought and, at times, received reimbursement from the city of Springfield and Clark County Family and Children First Council for services it allegedly did not provide or could not prove it provided.
  • Withheld income taxes from employee paychecks in the 1990s, but didn't pay the taxes to the state of Ohio and city of Springfield until years later.
  • Is the subject of two lawsuits in which the plaintiffs are seeking reimbursement for broken lease agreements. Local attorney and businessman Tom Lagos is seeking $20,000 in back rent for a building the Urban League leased for its bingo operations; Ameritech Credit Corp. is seeking more than $15,000 for a broken lease on a new telephone system.
  • Went from nearly $3,000 in the black in 1999 to nearly $235,000 in the red in 2000. Revenues were reported at nearly $564,000 that year.

In a Jan. 25 interview, Urban League officials said the unpaid income taxes and unemployment premiums are paid now, and they are working on rectifying the workers' compensation lapse. They attributed their financial troubles to inherited debts, cash flow problems, irresponsible former employees, fundraising challenges and a decrease in revenue from bingo operations.

"Things are rough. We're not denying it, things are rough," said Donna Brino-Blackwell, the Urban League's executive director since 1992. "But all of us around this table" are committed to bringing the organization out of financial difficulties.

The News-Sun interviewed Brino-Blackwell at the Urban League's headquarters, 521 S. Center St. Four board members, the operations manager and two other interested parties, one of whom refused to give his name, also attended the interview. All objected to this story and to questions about the Urban League's financial management.

The News-Sun obtained four annual audits — conducted by the Dayton accounting firm Alexander & Company in 1997, and the Columbus firm Robert Hemphill and Associates in 1998, 1999 and 2000. The audits point to a number of Urban League debts and accounting problems.

The licensed charity, which is exempt from federal income taxes, has been "in and out of favor" with the Ohio Bureau of Workers' Compensation for much of the last decade, said Rob Glenn, the bureau's spokesman.

"When an employer is not paying their premium and we at the Bureau of Workers' Compensation need to pay for lost time or for a medical claim, the employer must pay that back to us dollar for dollar," said Glenn, who said two Urban League workers had been injured on the job during the lapsed period.

On Tuesday, after the News-Sun interview and Job and Family Services' action to terminate its contract, the Urban League paid $7,000 to the bureau — about 25 percent of its outstanding debt — and entered a repayment plan with the bureau and Ohio Attorney General Betty Montgomery's office, the state's top bill collector.

"Since they've entered an arrangement with us, they have a 30-day certificate of coverage," said Glenn. "In 30 days, if they haven't made a payment, then they've lapsed again."

Four bureau liens totaling $22,700 remain open at the revenue recovery section of Montgomery's office, said spokesman Christopher Slagle. The Urban League has repaid three other liens to date, he said.

If Job and Family Services had known about the insurance lapse, it wouldn't have entered a contract with the Urban League in the first place, said Geoffrey Steele, the department's assistant director.

"In this case we didn't know that going in," Steele said.

The department funds the Urban League's E.C.H.O. program, or Ex-Offenders Can Have Opportunities, which is designed to give ex-convicts job training, job referrals and other life-skills training.

Steele sent a letter on Jan. 23 to the Urban League asking for proof that it carried workers' compensation insurance. Five days later, Job and Family Services terminated its contract.

"You gotta follow the law," Steele said in an interview. "It doesn't get any more complicated than that."

Brino-Blackwell immediately responded with a letter to Job and Family Services, assuring the department that the Urban League had recently established a payment plan with the workers' compensation bureau and that its insurance was reinstated.

"With the submission of this letter we also confirm that the SUL&CC will continue to remain in full compliance with both the (Job and Family Services) contract requirement and what is most important, all of our other fiduciary responsibilities to the state of Ohio," she wrote.

Compliance or noncompliance, it was too late, Steele said. The damage was done.

In the Jan. 25 interview, Brino-Blackwell said she thought the workers' compensation and other payroll tax issues had been settled.

"We had a former employee, I won't mention his name, that was supposed to handle that," she said.

Added Leah DeArmond, the Urban League's operations manager: "We set up an agreement with Paychex (a national payroll company with an office in Dayton) to pay payroll taxes. We were under the understanding that those taxes were paid through the company."

Making that claim is a "cop-out," said Paychex' Dayton branch manager Karey Anne Cauley.

Paychex operates on two payroll systems, she said — one that automatically deducts payroll taxes from an employer's bank account and one that notifies the employer of the payroll taxes due.

"In every payroll package there's a report that says these payments either have been made or you are responsible for these payments," Cauley said. "So for a client to say we thought Paychex was taking care of something, it's really a cop-out."

Contract conflicts

It appears the insurance lapse violates contract requirements with the Ohio Department of Development, Betty Montgomery's office, the Eastern Miami Valley Alcohol, Drug Addiction and Mental Health Services Board and the Clark County Family and Children First Council, the latter of which severed its ties with the Urban League last year.

Brino-Blackwell signed a contract with the Ohio Department of Development in July last year. The terms included that the Urban League would comply with workers' compensation requirements and other payroll taxes. It also affirmed the Urban League had no outstanding debts to the state.

The contract — which provides $48,400 to the Urban League for its homeless shelter, the Craig House at 1417 S. Limestone St. — states that any false statements made to secure the grant could be grounds for a charge of falsification, a first-degree misdemeanor, which carries a maximum penalty of a $1,000 fine and six months in prison.

"If this information is verified by the appropriate authorities within the Department of Development, we'll take corrective action under the grant," said Marlo Tannous, the department's chief legal counsel.

Corrective action could involve terminating the grant, sending an audit team to the Urban League and possibly referring the case to the appropriate legal authorities, such as the county prosecutor, Tannous said.

Brino-Blackwell insisted she didn't try to deceive the state.

"We have never, ever, never — since I've been sitting here on this board and sitting here as director — ever went into an obligation or contract with a funding source to deceive them," she said. "Never."

Another state agency, Attorney General Montgomery's office, has funded the Urban League's Victims of Crime program for five years. The latest contract is for nearly $56,500.

After learning of the workers's compensation lapse, the office sent a letter on Jan. 25 to the Urban League warning it to comply with the law within 60 days or risk losing its funds.

The insurance lapse brought into question the integrity of the Urban League, its Victims of Crime program and the Attorney General's office, said Montgomery spokesman Joe Case.

"We were troubled by the fact that they hadn't been making payments in years," Case said. "That's not something that we're required to ask when somebody applies for grants. You assume that organizations like this, (which) come highly recommended in the community by judges and prosecutors, are in good standing."

Fiscal accountability

The Urban League may have violated its contract with the alcohol, drug addiction and mental health board on several fronts: the workers' compensation lapse, the league's apparent financial problems and its failure to notify the ADMH board of lawsuits filed against it, such as the suit filed in December by Ameritech Credit Corp., the suit filed in January by Tom Lagos or the state liens.

"I think this organization is in trouble," said Paul VanderSchie, ADMH's chief executive officer. "I think they are in serious fiscal trouble. Consequently, we have them on a very tight fiscal accountability system."

The ADMH grant provides $143,000 a year to the Urban League for the Next Step program, a drug and alcohol prevention program.

"What happens with these organizations, particularly organizations that target poor people and minorities, is that the need is so great that when their funding streams start drying up, they have trouble adjusting and they extend their faith that somebody else will step in because of the over-riding need," said VanderSchie. "And when they extend their faith and nobody steps in, then they get in trouble."

The tight accountability system, which includes a reimbursement-based funding system, makes it difficult for the Urban League, too, VanderSchie said.

"The procedures we have for the reimbursement method with them is at a greater level of accountability than we have with others right now," he said.

The Clark County Family and Children First Council didn't know about the insurance lapse, but it had other concerns with the Urban League.

In the fall of 2000, the Urban League billed the council about $6,300 for salaries and expenses connected to the league's teen pregnancy prevention program.

There was a problem with that bill, however.

"It was explained to Ms. DeArmond at the time of her inquiry that the expenses are not reimbursable in light of the fact that no program services were provided during that time period," said Marilyn Demma, the council's executive director, in a Dec. 11, 2000, letter to Brino-Blackwell.

Urban League officials didn't immediately recall the billing issue, but Treasurer Cheryl Steptoe-Simon replied, "If we had a person working, we would have had to pay them."

The council, which funded the program with more than $110,000 over 41/2 years, ended its relationship with the Urban League in July.

"We chose not to fund the Urban League because over the several years that we had attempted to evaluate that program, we were not able to evaluate the program," Demma said. "It was not that we evaluated the program and came out of that with poor outcomes; rather we were not able to evaluate the program. That had to do, in my opinion, with staff turnover and participant turnover."

Evaluating the after-school program hinged on the ability to match pre- and post-program testing of the participants, which would gauge if the program was achieving its goals, Demma said. But the Urban League couldn't provide matched tests, she said.

"We have reason to believe that programming took place, but there were problems with consistency," she said. "That, in turn, meant we were unable to subject the program to evaluation."

Canceled checks

The city of Springfield faced similar billing concerns.

In 1988, the Urban League entered its first contract with the city for federal emergency shelter grant funds.

The money, about $20,000 in 2001, primarily funds the Urban League's homeless shelter, the Craig House. For a time, it also helped fund a rental assistance program, where the Urban League would pay the first month's rent for a client and then provide a canceled check to the city for reimbursement.

It didn't always work that way.

Correspondence between the city and Urban League in 2000 shows the Urban League would seek reimbursement for rent payments it had not made. It would provide the city with copies of checks that were written but not issued to the property owners, and then later cancel the checks, city officials said.

In time, the city caught on.

"We realized they had requested reimbursements for things they really hadn't paid," said Jackie Jaudon, the city's finance director.

When the property owners didn't get their rent payments, "they started calling us," Jaudon said.

"The Urban League was telling them that they couldn't send them because we hadn't given them the money."

The city conducted an audit in early 2000.

In a February 2000 memo, Ella Morgan of the city's housing and neighborhood services department wrote:

"One of the first questions that was asked to Leah (DeArmond) was how and when the checks are issued to the landlords. Leah explained that the checks are issued to the landlords by the housing coordinator, then she sends us the request for payment. However, as I matched the bank statement with the request for payments that we had paid, there were several checks throughout the year that had not cleared the bank, and the funds were not available in the bank account for them."

The city pressed the Urban League for a full accounting of its shelter grant funds, including canceled and voided checks. It cut off payments to the Urban League from late May to November that year, ended the Urban League's rental assistance program, and then issued a lump-sum payment when officials received the documents they wanted.

The city also took back $3,415 in reimbursements the Urban League couldn't account for, Morgan said.

Brino-Blackwell, DeArmond and others at the interview were puzzled when asked about these events.

"That was the time with that ex-employee," said Brino-Blackwell, talking to DeArmond. "Remember that problem with that?"

The News-Sun agreed to give the Urban League 41/2 days to research questions they couldn't immediately answer. They were reminded of those questions Tuesday, but didn't follow through. Instead, the Urban League's chairman, Ronald E. Ross, faxed the News-Sun a letter Wednesday afternoon, stating, "After discussion and careful deliberation, it was decided that a further evaluation of that request (for responses to unanswered questions) was in order."

The city has checked records with other agencies it funds, said Jaudon, but "this is the first time we had to go into this depth."

"It was putting us in jeopardy," she said, "because we were reimbursing on incorrect information they were giving us."

Jaudon said the Urban League paid its tax bill to the city in July 2001, after the city had cut off reimbursements to force payment. The amount of the tax bill is confidential information, but the tax debts to the city and state go back as far as 1996, according to the audits.

"Hopefully, we've gotten everything under control," Jaudon said.

Audit troubles

Audit reports and court records point to other financial troubles, as well:

  • The Urban League withheld pension money from at least one employee's pay in 1999, but didn't pay the pension fund. The audit doesn't indicate how much was withheld or how many employees were affected.

"I've never read that in the audit we have," said DeArmond.

Ross, the chairman, was baffled on that one, too.

"We don't have (a retirement plan)," he said.

  • The Urban League's board and officer liability insurance was canceled in 2000 because the league stopped paying the premiums. Urban League officials said they corrected this lapse and the board is now covered.

The audit report for 2000 points to a number of "material weaknesses" with the Urban League's financial management: unreconciled liability accounts, incomplete accounting data in the books and no formal inventory of the league's fixed assets. Past audits point to an excessive number of cash accounts and the borrowing of funds between accounts.

Those issues have been corrected, DeArmond said.

The National Urban League monitors its affiliates and holds them accountable for addressing issues, concerns or corrective actions, said Annelle Lewis, the National Urban League's senior vice president for affiliate development.

"Any concerns we have are between the National Urban League and the affiliate," Lewis said.

She said the Springfield Urban League, one of 111 affiliates across the country, has been moving in a "very positive direction as it relates to programs and how they serve the community."

Last year, the National Urban League gave Brino-Blackwell the Whitney M. Young Jr. Leadership Award for Advancing Racial Equality. The award, presented in Washington, D.C., included $10,000 cash for the Springfield Urban League and $1,000 for Brino-Blackwell.

"We are aware of the affiliate and its program, and again of the positive work that it has done, is doing and will continue to do to assure it maintains its 21st Century status," Lewis said.

Local Urban League officials shared that sentiment, and said the News-Sun was unfairly targeting the organization.

"The thing about it is the Urban League has done a whole lot of things for this community and we shouldn't be broke down saying, `They have done this, they haven't paid this' ... ," said Ross, chairman since 1997. "We're doing what we can do to do right."

Brino-Blackwell said that 19,000 people walk through the agency's doors each year, including repeat visitors.

The Urban League employs about 20 full-time staff members, according to a September 2000 staff list, the latest roster obtained by the News-Sun.

The Urban League inherited debts when it merged with the South Center Street Community Center in 1988, Ross said. But programs are running well, people are getting served and all program dollars are accounted for, he said.

"We are not the only organization struggling like this," said Steptoe-Simon, the treasurer, who accused the News-Sun of trying to "kill" the organization. "But I see only one organization being singled out for the article."

That view was shared by others.

"We're managing our debt, and I think it is a community issue, because this is a community organization," said board member Wali Muhammad. "The whole thing is ... the city of Springfield and the News and Sun has not been kind in dealing with our organization and reporting properly, and this is another instance of this."

Board member Eddie Chambers, director of minority affairs for Wittenberg University, asked, "Why is this news?"

"If you had uncovered theft, negligence or fraud _ this is not the case here _ then perhaps it would be news," he said.

Added Steptoe-Simon: "For the record, it is none of what he just said that contributes to any of our debt."

The financial difficulties, Steptoe-Simon and others said, are because of growing competition for funding sources, a shrinking economy and the challenge of being a minority-based charity.

"We are a black-based organization and it's hard for us to get money," Steptoe-Simon said. "So if there's anything I would say is that the people who are really concerned can step up to the plate and help us financially."

The Urban League took an especially hard hit, she said, when its bingo operations ceased in late June last year because of growing competition and expenses.

After expenses, the bingo games brought in $187,000 in 1999, about $175,000 in 2000 and nearly $79,000 last year, according to the Urban League's bingo license applications. The games resumed in December.

Another challenge: The funding agencies operate on a reimbursement basis, meaning the Urban League must pay for services up front and then wait for the reimbursement checks to come in.

"You're constantly trying to play catch-up to pay off those debts," Steptoe-Simon said.

Despite the challenges, Brino-Blackwell said the Urban League's mission remains strong.

"The mission definitely is not in jeopardy at all," she said. "We have some problems, we have some cash flow problems, we've had those for awhile, but no, the mission definitely is not in jeopardy."

County Ends Support. Urban League Fails to Provide Worker's Compensation Insurance for Employees was the Last Straw

COUNTY ENDS SUPPORT FOR PROGRAM.
THE URBAN LEAGUE'S FAILURE TO PROVIDE WORKER'S COMPENSATION INSURANCE FOR EMPLOYEES WAS THE LAST STRAW, OFFICIAL SAYS

By Anthony J. Gottschlich, Springfield News-Sun
February 2, 2002

Jean Chepp was disappointed.

The Clark County Department of Job and Family Services spent time and money training a Springfield Urban League employee to manage Project E.C.H.O., an Urban League program at 426 Lincoln Park Circle designed to give ex-convicts _ men and women _ a fresh start, a chance to rebuild their lives by providing job training and other skills.

But when Chepp, a program specialist with Job and Family Services, reviewed E.C.H.O. in November, she found "incomplete record keeping and careless documentation," as well as services that were advertised but not provided _ all of which raised concerns about the program's management and effectiveness.

"I thought we did a good job training the contractor, and I thought, ‘Is this something that was really misunderstood? Are they taking this seriously?'" Chepp said. "I was just wondering if I had not made myself clear."

Janine Miller, program manager for E.C.H.O. (Ex-Offenders Can Have Opportunities), refused to comment on the program, as did Urban League Executive Director Donna Brino-Blackwell.

The Urban League sponsors a bevy of programs designed to lift the poor and disadvantaged from a life of poverty, crime, drug addiction and other troubles. A story in Sunday's Springfield News-Sun detailed the charity's financial troubles, which the Urban League attributed to cash flow problems, fund-raising difficulties and other challenges. Job and Family Services, whose latest contract provided $74,000 for the E.C.H.O. program, gave the Urban League six weeks to get the program's paperwork in order. But by the time the Urban League submitted the revisions, which Chepp said still contained some errors, it was a moot point.

Job and Family Services terminated its contract with the Urban League on Tuesday, after learning the nonprofit organization hadn't provided workers' compensation insurance for its employees since 1996, a requirement of state law and the contract.

"They signed the contract with various assurances in there, one of which was that they had this coverage, and they didn't," said Job and Family Services Director Bob Suver. "So that shows they misrepresented themselves when they signed the contract, and that was just kind of the final straw."

The termination is effective Feb. 28.

It is unclear how many organizations fund the E.C.H.O. program or whether it can survive in light of the cuts. Local churches and the Clark County Sheriff's Office have supported the program in the past.

Brino-Blackwell assured Suver in a letter Tuesday that the Urban League had made arrangements to pay the Ohio Bureau of Workers' Compensation and that it was now covered by the insurance and in compliance with the contract.

Too late, Suver said.

"There's about three different places in that contract that says they have (workers' compensation) and will continue to have it," Suver said. "They didn't do either and they signed the contract, so I don't appreciate that."

Workers' compensation is a basic requirement, he said, and if the Urban League couldn't provide that, "How could I believe they could accomplish being successful with Project E.C.H.O. clients in getting them employed and on a successful path?"

"So it just totally blows their credibility that they could have any hope for that success," he said.

Project E.C.H.O. began in 1999, and Job and Family Services began funding it in January 2000 with an 18-month, $113,000 contract.

The program was designed to help about 25 ex-criminal offenders and their families who are on public assistance and looking toward a life of self-sufficiency. Services include G.E.D. preparation, computer literacy training and job referrals.

The contract was renewed in July last year for $109,000, but amended to $74,320 because of state cutbacks. The county also implemented a new rule during that time, one requiring its contractors, instead of county departments, to determine the eligibility of program participants.

That's why Chepp reviewed the program in November _ to see how Miller and others were performing that task, she said.

"The staff seemed very helpful and committed to serving the customers of the Urban League," Chepp wrote in a Dec. 11 memo to Brino-Blackwell. "When talking with Janine about Project E.C.H.O., I sensed a commitment to her clients and a desire to help all of them reach self-sufficiency."

Among Chepp's concerns in November:

  • E.C.H.O. staff did not provide services to families of ex-offenders, despite contract requirements.
  • Staff had not provided job-readiness training for clients since June.
  • Inconsistencies in quarterly reports and monthly invoices to Job and Family Services.
  • Of 10 sampled cases, not one was determined to be eligible for the program, because the eligibility forms were incomplete.

The problems with ECHO were unique, Chepp said.

"I visited three other contractors and essentially they received pretty favorable reviews," she said.

Job and Family Services funds its contractors on a reimbursement basis. As of Dec. 31, the department had reimbursed the Urban League $41,553 for the last half of 2001, Chepp said.

Suver said that because of state budget cutbacks, resources are limited, but Job and Family Services would consider funding other programs similar to E.C.H.O.

"We still see a need for some job training and placement help for ex-cons," he said, "and we'll be open to considering where we can put some resources toward that."

From Best of Cox Award