Boulder Charity's Funds Allegedly Embezzled by Bookkeeper
The charity’s website says Impact on Education (then The Foundation for Boulder Valley Schools) was founded in 1983. Its mission statement says it “leverages community resources to impact student learning, create opportunities, and build support of public education in the Boulder Valley School District.” The charity’s 2009 financial statement shows an income of about $1.5 million and net assets of almost $1 million.
A charity spokesperson, in speaking of the alleged embezzlement, says,” I could not understand it. I feel violated. It’s an unconscionable act.” The organization and independent auditors are carefully scrutinizing the records back to 2004, when the bookkeeper began working for the charity.
We would like to know if there were any internal or outside audits done on a regular basis and, if so, why the alleged shortages were not discovered. After all, that is one of the purposes of an audit. We can only speculate on what effect the alleged shortages will have on future contributions. Donors to nonprofit organizations have a right to expect that their gifts will be used for charitable purposes and not diverted to an employee. They also should expect that the organization will make reasonable efforts to see that the charity carries out the donors’ expectations.
We hope that Impact on Education will come forward with answers. The bookkeeper remains in jail in lieu of $100,000 bond. She is presumed innocent until and unless proven guilty through the legal process.
More fraud related postings:
“ Colorado Man Indicted for Obtaining Fraudulent Mortgages,” Colorado Business Litigation Lawyer Blog, posted 06/22/2010
“ Colorado Victim Advocate Accused of Victimizing Victims,” Colorado Business Litigation Lawyer Blog, posted 10/19/2010
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