Resignations & Revelations at HOPE

IRS Settlement, Corrective Action Plan, and Debts Discussed

There was good news and shocking revelations at the HOPE Community Services Board of Director’s meeting on Thursday, August 22, 2013.

The Board met at 6 p.m. at the Prince Edward Public Library in Farmville. Chairman Ellsworth Bennett called the meeting to order. After an invocation and public comment period, the Board received reports from the Personnel, Finance, and the Planning and Evaluation Committees.

The Board accepted, with regret, the resignation of two members, Rev. Thomas Robinson and Janice Welborn. Both expressed a desire to remain involved in the process of rebuilding HOPE, and that they were concerned that their schedules would not allow them to give their best to HOPE.

The finance committee presented a document detailing all (known) creditors as of August 2, 2013. Thirty-nine accounts were listed, totaling $287,393.50 with the majority of the debt being owed to the IRS: $107,954.83. Six area school systems are also listed: Amelia, Cumberland, Prince Edward, Nottoway, Lunenburg and Buckingham County Public Schools. The amounts range from $2271.75 to $15,595.00, owed for transportation and meals for Head Start students. Prince Edward County School Board recently filed a warrant in debt in an attempt to recover the money owed their school system. HOPE’s Board agreed that every effort should be made to pay their outstanding debts and stated that they’d been in contact with many of the creditors to make arrangements. Negotiations are underway with their largest creditor, the IRS, to make a settlement for significantly less than the $107,954.83 owed.

Additionally, the Finance Committee reported that they had been working with the Bank of America Fraud Department and the Virginia State Police in regard to a $26,000 balance on a credit card that the previous Board was apparently unaware of. Finally, the Finance Committee has been working with an attorney to draft a letter to former staff members requesting reimbursement for checks written on July 1st and July 3rd of this year.

According to members of the Board, former Executive Director Mary C. “Kitty” Smith resigned in a letter dated July 5th, stating that the resignation was effective July 2. Two checks were issued to Smith after the effective resignation date, one on July 3rd for $2,208.62 and one on July 1st for $1830.79, totaling $4,039.41. Both checks were signed by Board Treasurer Howard Simpson and Smith. Board member Jasper Hendricks indicated that the financial system appeared to indicate that the checks were written after Smith’s departure.

The Board also received a report from the Fund Development Committee. Several options were presented to help generate funds, both to pay back debts and to continue providing services in the area. The agency owns 12 vehicles that will be sold at auction or via sealed bid. Other options included reaching out to the counties served to request funds, writing letters to faith congregations, a Harlem Ambassadors Basketball game fundraiser.

TAP Community Action Agency in Roanoke, Virginia has offered to loan HOPE two grant writers to assist HOPE in fundraising efforts. Further, TAP has offered to help oversee operations at HOPE to help get things back on track.

Other items addressed at the Board meeting included the approval of a Corrective Action Plan that addresses issues listed in monitoring review conducted by the State of Virginia CSBG office.

Another revelation discussed at the meeting involves the Watkins M. Abbitt Federal Building that houses HOPE’s offices at the corner of Main and High Street in Farmville.

According to the Department of Health and Human Services, “HOPE received title to the property through the Federal Property Assistance Program, which grants surplus Federal property to eligible non-federal applicants for public health and homeless purposes.  HHS granted the property to H.O.P.E. Community Services (formerly, Central Piedmont Action Council, Inc.) by Quitclaim Deed dated February 18, 2004 (Deed) subject to certain conditions and restrictions, which HHS has oversight.” There are conditions and restrictions in the deed for a period of 30 years. As long as HOPE uses the building to assist the homeless, the organization makes no payment and, at the end of the 30 year period, HOPE will own the building.

On August 2, 2013, Theresa M. Ritta, Chief of the Real Property Branch in the Office of Enterprise Support Services at the Department of Health and Human Services, sent a letter to Ellsworth Bennett, President of HOPE. In the letter, she states, “…I advised you of conversations between Mr. Wade Bartlett, County Administrator, and Dr. Mary “Kitty” Smith, former Executive Director, HOPE, with this office. During those conversations, we were informed that the grantee has possibly lost all grant funding and can no longer operate the approved program use on the subject property. Additionally, Dr. Smith indicated that the grantee was looking to voluntarily return the property to the United States.”

Board members indicated in the meeting that these conversations between HHS, Smith and Bartlett took place after Smith had tendered her resignation. Other Board members were outraged. A response will be sent to HHS indicating that HOPE does not intend to give up the property and will continue providing services.