The News & Record

 

Editorial - August 14, 2006

Seeking Accountability

When taxpayer money goes to nonprofit use, the public rightfully wants to know that funds are being used properly and efficiently.

On Aug. 3, the state auditor's office began offering the public more frequent updates on who's not meeting requirements for public funding. The Web site, www.ncauditor.net, posts monthly reports listing organizations that received nonprofit funding and failed to turn in required reports, through June 30, for the 2004-05 fiscal year. Of 455 listed, 18 are in Guilford County and 12 of those 18 are in Greensboro. Grants within the county totaled $1.2 million, while statewide, $48.6 million was distributed to the listed nonprofits. When contacted last week, some local organizations and businesses said not turning in the reports was an error rather than neglect.

Confusion about reporting requirements led to a misunderstanding at Creative Day School in Greensboro, but the reports were turned in last week, said the school's office manager, who declined to give her name. The school's food program received $201,853.

At Access Dental Care, also of Greensboro, which got $73,052, confusion about requirements also was the culprit. The nonprofit wasn't aware of the rules that came with a three-year grant but has sent off the paperwork, said its president, Dr. Bill Milner.

Bennett College is one of the largest beneficiaries on the list, getting $417,153. Bennett's audit was received, but other documents showing how the money was used were not. Jim Washburn, Bennett's vice president for business and finance, said new employees handling the matter were unaware of all of the obligations. He added that the reports were sent off last week.

Said Bennett's director of public relations, Wanda Mobley: "We want to be good stewards of public money. If we're at fault, we want to fix it ASAP."

Nine agencies statewide that didn't belong on the list wound up on it. Mix-ups resulted in some divisions missing a deadline to notify the auditor's office of changes, said Debbie Crane, director of public affairs for the N.C. Department of Health and Human Services.

The state auditor's office is reviewing the new information and changes will be made as soon as possible, said Chris Mears, director of public affairs.

Errors are inevitable and the auditor's office is fixing the glitches, but mistakes are unfair to those who did their job. Nonprofits live and die on their reputations, and being falsely labeled as delinquent could hurt relationships with the businesses, volunteers and donors on which they depend.

Despite the kinks, the list is a work in progress and a useful tool. There is an obligation to keep the public informed about how its money is being spent.

It's also important for people to know whether nonprofits they work with or donate to are holding up their end of the bargain. Increasing public awareness will increase accountability and responsibility.

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