Any Committee Experience Anyone?

I am part of a committee which is having troubles. We are in the process to get the 501 (c)(3) tax exemption thingy and we asked the treasurer to bring everything to the meeting this saturday as we were supposed to have an audit as she has not provided treasurer reports for the last 4 years! Every time she is asked to provide reports, she always has an excuse. There is only one signature on the checkbook - I have brought it up that there needs to be two and the chairperson agrees with me (who is new, taking over from the old one who is married to this treasurer!!!) There seems to be so much trouble going on that I dont know if we are coming or going.

We have told her that she needs to bring EVERYTHING to this meeting, she wants to put it off because she doesnt have the bank statement - which we know to be untrue because this bank always sends the statements on the 15th (we checked ) If she refuses or throws one of her usual tantrums, what would youse advice we would do? We have been discussing with the chairperson on what we can do, as it looks like that the audit might be put off another 3 weeks due to unrelated reasons. I suggested that the treasurer bring all the books, and the chairperson holds onto them until the audit - and the chairperson suggested that the treasurer puts them in a box, we seal it with duct tape and the committee signs the tape to ensure it is protected. Is that a bad or good idea?

We have a very bad feeling about this. Her husband has a history of taking money without permission, he once took $5000 and had to pay it back. We are afraid that this is history repeating itself. We think if something is wrong, then w may ask her to step down as treasurer and let someone else experienced do this.

What would you do? Any ideas would be so much appreciated so I can discuss it with the committee I am on.

Thanks!

I belong to a homeowner's committee here.
First of all, I am curious why the chairperson isn't using his position to do something about this. Isn't he suppose to make sure the other officers are doing their job?
Anyway, I think you should ask her to surrender all pertaining documents and then ask her to resign. Put it in a formal letter describing the reasons for her dismissal and signed by all members of the committee. You can assign someone to replace her after she leaves.
This should be done asap before things really get out of hand.
Hope I helped.

Do you know a lawyer? You need legal advice. You will probably have to have her charged with embezzlement or fraud in order to sue her for the money and you need legal advice on how to proceed. I was on the board of a non profit and the executive director stole a lot of money. We had to take legal action and he was charged and convicted. Fortunately he was bonded and insured so we were able to get it back. But he had not paid the withholding taxes on the employees and it was touch and go with the federal government for awhile, fortunately they didn't hold us responsible in the end, and forgave the penalties and we were able to pay the back taxes from the insurance settlement. Not an experience I would like to repeat. Becky

Originally Posted by zanniesmom

Do you know a lawyer? You need legal advice. You will probably have to have her charged with embezzlement or fraud in order to sue her for the money and you need legal advice on how to proceed. Becky

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Need to prove it first. As Kellye said they're only suspicious.

Yayi - the chairperson is new which is why all these things are being done. Before him, the chairperson was the treasurers husband and we had no idea of where the money was going and even when I asked for the treasurers reports, nothing was being done. I have caught her buying beer with the committee's money, when she was confronted, she had thrown away the receipt!

Thanks for the help, I think its going to be a long day on Saturday!

Good luck, Kellye. I have a bad feeling you're going to need it.

Thanks - I think so too. Why else is she throwing the tantrum about not having done treasurers reports for the last four years?

Originally Posted by Kiwideus

Thanks - I think so too. Why else is she throwing the tantrum about not having done treasurers reports for the last four years?

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I guess Becky is right. You may need a lawyer after all. Well, I too wish you good luck!

At least consulting a lawyer will tell you how to proceed and will certainly make her think twice about continuing to obstruct you. Becky

I really appreciate both your advice - I am expecting someone to call me and tell me what will happen with the audit, whether it will be postponed or not, I should find out tonight. The wife of the new chairperson has a bad feeling also. I think what we can do is look at the books and if theres some discrepancy, then I will bring up the suggestion about talking to an attorney.
Thank you both so much!

Originally Posted by Emma's Friend

Good luck, Kellye. I have a bad feeling you're going to need it.

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Lot of Good Luck

I can see why you're worried and I have to admit, it doesn't sound good. At this stage, make sure that you're keeping good records of your communications and decisions. Put your requests in writing to your treasurer also. If you do need to take action later, your records will be important.

It might be an idea to write an account of any events that occur so that you will have an accurate recollection later if lawyers/authorities need to be involved.

Good luck