Nonprofit works to repair credibility

When a couple hundred thousand dollars goes missing in most agencies, it’s a cause for concern. Alarm bells ring. A scent of scandal rises in the air.

But Workforce Connections isn’t like most agencies. Each year it shepherds millions in federal dollars to local job training and related service providers, then has the task of holding those recipients to account for the funding.

While a majority of grant recipients keep professional books these days, that hasn’t always been the case. Audits showed the accounting for millions in grants was so mangled and unprofessional that it was impossible to tell whether the money went to job-training programs or out the back door. Nonprofits weren’t doing their jobs, and Workforce Connections wasn’t minding the store.

Compared to many millions, the mismanagement of only a couple hundred Gs is almost a cause for celebration.

Problems last year at Bridge Counseling and the Latin Chamber of Commerce Community Foundation provide reminders that Workforce Connections Executive Director Ardell Galbraith and his staff have their work cut out for them if they’re to continue to repair the agency’s fragile credibility. The grant recipients didn’t properly account for more than $200,000 in federal funding.

Bridge managed to raise funds and repay the unaccounted-for cash. The Latin Chamber foundation, which received $106,000, has had more trouble covering its bill. Now Workforce Connections board sources say the group might be forced to take out a line of credit on the Latin Chamber building to cure the debt.

“Someone with the two organizations, instead of paying the bills with the money we gave them, diverted the funds to some other use, and the money’s now gone,” said Bob Beers, a board member of Workforce Connections and a Las Vegas city councilman.

Such predicaments are nothing new.

Back in 2006, an audit of Workforce Connections by Las Vegas and Clark County government revealed unprofessional accounting practices and the potential mismanagement of millions. Nonprofits that annually received funds to train the unemployed and underprivileged simply failed to keep records. No one really knows where all the money went.

Calling the practices “deplorable,” auditors concluded there was no legitimate reason for the lack of effort, “other than a complete disregard for government accounting standards and financial principles, ignorance or disdain for the taxpayer.”

That led to an upheaval and some changes inside the organization, but it didn’t exactly fix the problem. By 2012, a state audit determined Workforce Connections was spending 26 percent of its budget on administration and program monitoring but still found inefficiencies that were reducing its effectiveness by approximately $1.9 million in 2011. The audit failed to explain how the agency’s financial records could be off as much as $2 million from 2009 to 2011 and concluded the obvious, “Reconciling expenditures would ensure accurate reporting and improved financial reliability.”

More changes followed, and Gov. Brian Sandoval’s Workforce Investment Board moved to consolidate the northern and southern branches of the agency — a move some familiar with the program viewed as political and potentially detrimental to Clark County nonprofits.

These days, it’s essential for the fragile credibility of Workforce Connections to do all it can to compel grant recipients to account for the federal dollars they receive. Failing that, the local governments that take part in the U.S. Department of Labor program are on the hook to pay back the money.

Southern Nevadans steamrolled by the recession can use all the help they can get. Workforce Connections is in position to assist with training, education and even bus passes and clothing stipends. An outgrowth of the federal Workforce Investment Act of 1998, its mission is admirable.

The board administers grants for job training and related programs throughout the community and as far north as Esmeralda County. Its board members are as diverse as the constituents and interests they serve.

When things go right, the funding helps train an unemployed person for a new job and then assists them in the search. Many hundreds have benefited from the wide variety of services Workforce Connections funds.

When current CEO Galbraith says, “There have been some challenges,” he’s substantially understating matters. In the same breath he adds that the agency’s oversight role these days is being performed to the highest standards.

The fact the Bridge and Latin Chamber foundation examples occurred more than a year ago, he asserts, is a positive sign. Despite costly missteps, the level of training and bookkeeping has improved — and those in need are served.

“We’ve certainly come through some changes to get to our current status,” Galbraith says. “Our oversight is second to none. That has not always been the case.”

Given its history, that $200,000 is starting to look downright reasonable.

John L. Smith’s column appears Sunday, Tuesday, Wednesday, Friday and Saturday. Email him at Smith@reviewjournal.com or call 702-383-0295. Follow him on Twitter @jlnevadasmith.