Friday, February 22, 2013

D.C. Nonprofit Declines To Say How It Spent Money

An embattled D.C. nonprofit reported receiving $25 million in a recently filed Internal Revenue Service (IRS) report, but decline to say how it spent all of that money.

The D.C. Children & Youth Investment Corp., which was involved in a theft scandal which sent former councilman Harry Thomas Jr., to prison, also did not identify any grantees in its annual tax filing with the IRS, according to a report in The Washington Times. While the Trust did report $25.7 million in funding for the period spanning Oct. 2010 to Sept. 2011, sections of the report for expenditures -- including compensation -- were left blank.

The Trust's senior director of finance, Earl Thomas, told The Times that the organization plans to file an amended report with the IRS as soon as outside auditors finish reviewing two years finances. In a Jan. 29 post on this blog, it was reported that those audits would be released in 30 days.

The nonprofit has been trying to get back on track after the bad publicity from the Thomas Jr., situation. The former D.C. councilman was sentenced to three years in federal prison after pleading guilty to using grant money meant for local children for personal uses, including trips, clothes, a new car, and shoes.

The Trust reported a deficit of almost $3 million last year and, without the completed audits and the incomplete IRS filing, it is unclear whether its finances have improved or worsened.

You can read the full story in The Washington Times.

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