Leaders of the Gwinnett County Association of Educators have named a grievance committee to investigate allegations of financial mismanagement and will take steps to improve accountability of members dues.
The changes came after a group of teachers complained that the organization wasted $1,500 on a Chateau Elan trip and paid thousands of dollars to a volunteer for performing extra duties.
GCAE, which represents 1,700 members, provides a support network for educators. It pays for lobbyists to voice its views on state education issues and covers legal fees for those facing disciplinary action or termination.
A financial report conducted of the group by an Athens firm and obtained by The Atlanta Journal-Constitution found “accounting issues.” The report stated that an audit of finances for 2008, 2009 and 2010 wasn’t possible because the GCAE lacked formal accounting, complete banking records and internal controls, wrote David Barnett III, a certified public accountant.
“While the budget report income and expense totals tie to the 990 EZ tax reports, the year-end cash balances do not,” Barnett wrote.
The accountant advised the group to prevent just one person from having access and control over the organization’s cash accounts, and recommended that at least two signatures be required on all checks. Barnett also suggested that another officer or outside service be responsible for producing financial reports, and that a statement of activity detailing expenses, budgeted amounts and variances regularly be presented to the board.
Gwinnett chapter president Donna Aker, who became the group’s sole president in June, said GCAE will improve its financial procedures.
“We are also reviewing our policies and protocols to ensure accountability,” said Aker, who would not comment on the specifics of the report, calling it proprietary information.
GCAE representative Janet Howard, the first to complain to the Georgia Association of Educators and the local chapter, said she felt the matter will be pursued. “I think we can work together to get GCAE back to being a strong organization,” she said.
Howard said teachers in her region were concerned about the allegations.
A past co-president earlier complained that GCAE paid thousands of dollars to a treasurer to perform administrative and consulting duties in a recurrent contract that could cause the GCAE to lose its tax-exempt status. The contract was cancelled in last year.
Internal Revenue Service guidelines say public charities can’t financially benefit insiders such as officers in a substantial manner. Barnett’s report showed that $20,520 was paid for administrative and consulting services in 2008, $16,459 in 2009 and $14,179 last year.
Mike McGonigle, legal services director for the state branch, said it has a conflict of interest policy for its board that prohibits “personal benefit.”
Richard Wetzel, GCAE’s long-time treasurer who quit last September, had a clerical and administrative services contract that was renewed every fall for at least 12 years, said Susan Dietz, past president of GCAE. “Richard did everything above board. He formed the corporation properly.”
Records show Wetzel wrote some checks to himself. He didn’t return several calls seeking comment.
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