Courtesy of the Bryan/College Station Habitat for Humanity office:
In September 2008, Habitat for Humanity contracted with a consultant from Dallas to provide bookkeeping and accounting services. The independent contractor relationship was terminated on March 8, 2010, after it was determined that certain checks payable to the individual were forgeries. The investigation revealed that there was approximately $20,000 in payment for which no services were provided. However, the total amount of the checks which either had forged signatures or insufficient signatures was in excess of $40,000.
The endorsement of forged checks appears to have no connection to the theft from Habitat’s bank account for which Kelli Renee Williams has recently been charged.
In the course of our investigation of the forged checks, it was determined that deposits for Habitat Restore in the days preceding the dismissal of the contracted consultant were missing. The ReStore is a fund raising activity of Habitat as well as means to support our mission to eliminate substandard housing. The ReStore sells donated items such as furniture, building materials, appliances and furnishings for the home. The net proceeds from the ReStore operation are unrestricted funds to support Habitat’s mission.
After no other explanations regarding the missing funds, the Interim Executive Director and staff undertook an extensive review of the bank records to determine if the full amount of the ReStore income had been deposited during the approximately 18 months that the independent contractor was making the bank deposits for ReStore. The review indicated $113,000 discrepancy between the ReStore cash receipts and the actual deposits. This discrepancy was not reflected in the financial statements presented to the Executive Director and the Board of Directors.
All of this information has been provided to the police who continue their criminal investigation at this time.
Habitat for Humanity has implemented sound safeguards and controls to prevent this type of activity from occurring in the future. With the new Executive Director, Tori Wolan, assuming her position on September 1, 2010, the Board believed it was appropriate to release the available information regarding the ReStore theft without jeopardizing future criminal prosecution. However, the police investigator had requested that Habitat not disclose specific details until they completed their investigation and made a decision about any possible charges.
Habitat has determined that our bank will partially reimburse our account for the forgery activities. We are also exploring our insurance coverage for missing ReStore funds which may reimburse Habitat with up to $100,000. Our Executive Director, Board of Directors and staff have taken steps necessary to insure that the donations and gifts of the Bryan-College Station community, including ReStore proceeds, are protected to fulfill our mission of eliminating substandard housing. Our plan is to construct 20 homes by July 2011, which 20 families will purchase on an interest-free loan. With the financial and volunteer support of our community, Habitat for Humanity will continue to provide decent, affordable housing to those in need.