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HHS finances draw scrutiny

News Photo by Steve Schulwitz Huron Humane Society employee Jason Sorensen gives a cat some attention while working Wednesday. The HHS board recently approved spending up to $5,000 to have a detailed audit done on the non-profit organizations financials.

ALPENA — The Huron Humane Society depends largely on private and public donations in order to remain operational and to fulfill its mission.

Through fundraisers and government allocations it is able to house animals in a safe environment, provide the care they require and in many instances find them homes. Despite the constant flow of money coming and going, however, it is unknown when the last time a audit of the shelter’s financials and practices has been done.

That is about to change.

At Tuesday’s HHS meeting the board voted to allow Alpena Municipal Councilwoman Susan Nielsen to seek grant funding to cover the cost or part of a full audit. If no funding can be found, the board agreed to pay up to $5,000 to have their finances reviewed.

Nielsen, who was recently appointed by Mayor Matt Waligora to represent the city on the board, was taken aback that an audit hasn’t been done in many years. She said in order to accurately account for the amount of money coming in and what it is being used for an audit being done every few years is critical.

“It is somewhat troubling because you always want the security of a clean audit and I believe the smartest thing for any nonprofit group or organization to do is to show your accountable for the dollars received and where it is going,” she said.

Nielsen stressed that she believes the money is being used for its intended purposes and isn’t questioning the procedures or intent of those involved in the day to day operations of the shelter or the accounting practices.

“I don’t believe there is any dishonesty here or any money missing,” Nielsen said. “However you do want to have an audit done to provide full transparency.”

Lori Stephan has been board president for nine years and she said she didn’t know the last time an audit was conducted. She said there hasn’t been one done while she has been on the board, but it has been discussed. Stephan said the primary reason one wasn’t conducted was because of the cost.

“It’s because of the expense of it. When we last hired our accountant we were told it would be too expensive,” Stephan said. “We always work closely with a CPA.”

Stephan said she supports having an audit done as long as it isn’t so costly that it has a severe impact on the budget and the care of the animals and employees.

“I have zero issue with having a full-blown budget done,” she said. “As long as it fits in our budget I’m all for it.”

Cindy Johnson, who also is on municipal council but is on the HHS board as a citizen at large, said she believes an audit is necessary to provide confidence for donors and government agencies that help fund the shelter. She said he has been on the board for about a year and a half and has seen the financial struggles the shelter has faced and also the rebound it is enjoying now thanks to new fundraising events and an outreach program.

She said an audit will allow for a detailed update on financials and practices used to track and monitor them, and possibly include recommendations to improve accounting practices.

“We appreciate the money we get and we want our donors to know that we are using it wisely,” Johnson said. “We’re doing this for transparency and to reassure our donors that the money is being used the way it should.”

During public comment fundraising commmittee member Casey Johnson, who is Cindy Johnson’s son, addressed the board and encouraged it to move forward with the audit. He said having a clear picture of finances would be good for the board, animals, donors and local governing bodies. He said he was pleased the board decided to pursue an audit.

“I just think it makes all the sense in the world, especially when your financials are what some consider muddy at best,” he said.

A majority of the board’s financial duties fall on treasurer Edna Sorenson, but it also has Shanna Johnson to handle tax work. The board has yet to decide when bids will be put out requesting proposals from firms to do the audit.

The board also is considering where it stands in terms transparency for open meetings and Freedom of Information Act.

The state considers HHS a private 501(c)3, which is not bound by FOIA or required to hold open meetings.

Cindy Johnson said the federal government encourages private nonprofit groups to adhere to state open meeting regulations and FOIA, but it doesn’t regulate it. During the meeting Johnson said in honor of full transparency the board should recognize the open meetings act and FOIA as well. Johnson said the meetings are always open to the public accept when it goes into closed session.

“In our community it just makes sense to comply with them,” she said. “It wouldn’t make us operate any differently as we do now, except regulate that we can go into closed session. It is just common sense.”

The Open Meetings Act limits what can be discussed in closed session to litigation, personnel and contract negotiations.

Johnson said as far as FOIA goes, the HHS bylaws and people can get financial information with a simple request.

“Any board member, donor, government agency or member of the public who requests accounts, minutes or bylaws can do so in a reasonable amount of time,” Johnson said.

This was the first meeting for HHS at city hall and there was a sizable crowd at the meeting. Stephan said she was pleased to see so many people at the meeting.

“I was excited by the amount of people there and their involvement,” she said. “I hope they show up to the next meeting too.”

Steve Schulwitz can be reached via email at sschulwitz@thealpenanews.com or by phone at 358-5689. Follow Steve on Twitter ss_alpenanews.

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