LITTLE ROCK — A state audit obtained Friday questions about $50,000 in spending by a Conwaybased nonprofit that’s funded by public money and run by a local alderman.
The Arkansas Department of Human Services’ Office of Quality Assurance audit says Conway Alderman Jim Rhodes’ Quality of Life Council cannot provide documentation to support $51,007.43 in nonprofit expenditures.
The nonprofit administered substance-abuseprevention programs in Faulkner, Perry and Stone counties. The programs were funded by a grant from the U.S. Department of Health and Human Services’ Substance Abuse and Mental Health Services Administration.
The state Office of Alcohol and Drug Abuse Prevention, which coordinates the grant program in Arkansas, cut ties with the Quality of Life Council in the fall because of the nonprofit’s bookkeeping practices.
The audit said the nonprofit lacked an adequate accounting system.
Bank statements were missing, money was moved irregularly among at least five bank accounts, and checks meant for substance-abuse prevention were deposited into the account of an Ameri-Corps program Rhodes administered.
The audit says the nonprofit cannot account for $14,929.27 it says it spent on substance-abuse-prevention work. That includes grant money it says it spent on travel, training, professional fees and memberships, and educational materials.
Rhodes was not reached for comment at his home Friday evening.
In a previous interview, he said he never embezzled any money. But he admitted to sloppy bookkeeping.
“There’s no doubt mistakes were made,” Rhodes said in November. “I am apologetic. I am very disappointed with myself.”
The largest unaccountedfor sum was $8,920, reportedly spent on “curriculum materials.”
The audit says Rhodes took grant money but never used it to buy the materials.Instead, he told the auditors he used older materials he already owned for training, according to the audit.
Rhodes told the auditors he intended to use the money later to buy more curricula. The auditors could never verify how the money was spent, the audit said.
The audit also questions $36,078.16 more in indirect costs that the Quality of Life Council spent grant money on. Indirect costs include expenditures such as rent, salaries and fringe benefits.
Arkansas, Pages 13 on 02/20/2010