Is Urban League in state of denial?

By Timothy Pratt

Wednesday, Oct. 1, 2008 | 2 a.m.

At the Urban League’s September board meeting, the first since June, a state official showed up with a list of things the poverty-fighting organization had to do to keep receiving $2.6 million a year in federal funds.

But the board put off the official and the list for another day, one of the latest examples of the organization’s recent tendency to miss deadlines and avoid dealing with problems.

The to-do list was put together in April and May, but at least four items were months overdue, including one on financial oversight — the heart of the board’s responsibility.

Gary Gobelman, the state official, said to the nine board members present, “It’s important for you to understand this.”

But within five minutes, board Chairman Raymond Specht tabled the item for at least another month, “out of respect for the time of everyone here.” It was 5 p.m., quitting time, according to the agenda.

First he asked whether anyone had any questions about the state’s three-page, 13-item list — three times. Board member Napoleon McCallum replied, “I just got this today.”

A few board members said they thought several of the problems had been fixed. Later, Gobelman, whose job it is to make sure the federal funding is properly handled, said they hadn’t been fixed.

The official said he was “surprised and disappointed” by the experience.

He pointed out that the “issues were out there” for months before the meeting, and that he’d expected the board to dedicate some time to them.

“It’s very important for the board to have an understanding of these issues, and I saw this as an opportunity for the board to have a dialogue,” he said.

It’s also important because the state is one of four Nevada governments in recent months to confront problems with the nonprofit organization’s handling of public money. Since May, Las Vegas, North Las Vegas and Clark County have withdrawn or frozen funding because of those problems.

This has a snowball effect among sources of public funding as they begin to compare notes. For example, the Southern Nevada Workforce Investment Board, which receives federal money to help with job training and education, has been considering the Urban League for a grant of about $200,000.

The investment board is taking a close look at the nonprofit organization’s finances before making a decision and plans to meet with its staff to address concerns.

“We know local governments have had fiscal management issues (with the Urban League) in the recent past,” said John Ball, executive director of the investment board.

“We’re dealing with public money ... and this puts the issue on the radar screen for other potential funders.”

At the Urban League’s Sept. 24 board meeting, one item on the state’s list noted that the board was supposed to develop procedures for overseeing the organization’s funding by July 18 and had yet to do so. The procedures were to deal with cash flow, budget approval, appropriateness of expenditures, spending plans, and methods for fixing fiscal problems. Gobelman said the Urban League had sent him a letter saying it would have board Treasurer William Raihl sign a monthly “financial certification form” — but that’s not enough.

“We need a complete picture of the procedures the board will use to maintain oversight,” Gobelman said.

The Sun’s repeated attempts to reach Specht to ask about the meeting and the state’s list, particularly the item dealing with board responsibilities, were unsuccessful.

Gobelman said he wants to meet with the Urban League board’s finance subcommittee before next month’s full board meeting, to “make sure they understand what the status of this is and why they need to be involved.”

In any case, deadlines don’t die, and the Urban League missed another one Friday. The organization was supposed to explain its July payroll in more detail to the state, after its June bill to the state for payroll resulted in $12,000 in disallowed costs. Gobelman said the state will not pay August’s bill, which is likely to arrive any day, until July’s bill is clarified.

Two other items were due Tuesday. First, the Urban League’s financial report was due to the state. The second involved “time studies” — the Urban League has to show the state how employees are spending their time and whether they’re working in activities covered by the grants being billed.

What happens if those deadlines aren’t met?

“Nothing’s been decided on that yet,” Gobelman said.