Former volunteer files IRS audit of Food Bank

Executive director, alerted to specific allegation in the complaint, challenges its accuracy

By Andrea Scott
Posted 4/24/24

 

A former volunteer with the Tri-Area Food Bank has filed a complaint with the IRS in an effort to trigger an audit of the non-profit.

The Tax-Exempt Organization Complaint …

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Former volunteer files IRS audit of Food Bank

Executive director, alerted to specific allegation in the complaint, challenges its accuracy

Posted

 

A former volunteer with the Tri-Area Food Bank has filed a complaint with the IRS in an effort to trigger an audit of the non-profit.

The Tax-Exempt Organization Complaint (Referral), dated April 20, comes on the heels of the firing of the Tri-Area Food Bank’s long-time managers, John and Sue Laird, two weeks ago. That followed an April 10 announcement by the board of the food bank that it would conduct an independent review of all operations and policies by outside counsel.

Laird says he was confronted at the food bank by Craig Ushida, the acting president of the association, and John DiMaggio, the new treasurer, who had a county sheriff’s deputy in tow. He says he was told to resign, or be taken to court, so he resigned. He is one of several people to receive a cease-and-desist letter. He insists he has done nothing wrong.

The referral, filed by Stephen Mader, takes aim at the new leadership of the food bank, rather than the Lairds, who have been operating the facility for seven years. The food bank has been in place more than 30 years, and currently serves Port Townsend, Brinnon, Quilcene, and Port Hadlock. 

The complaint, which names executive director Patricia Hennessy and Ushida, states the core issues that need to be examined have arisen since Hennessy and Ushida took control. It lists five areas of concern: A lack of transparency, organizational upheaval, violations of bylaws, operational ineptitude, and concern that there has been a decline in the quality of food distribution services, and “wasteful spending of donations and federal assistance, such as COVID relief funds.”

Mader, a retired environmental scientist and regulatory specialist, said he worked as a volunteer for four years and knew the Lairds as effective managers. Mader says the problems have arisen since Hennessy took over. “She was hired to write grant applications for fund raising; however, her responsibilities inexplicably rose to ‘oversee all operational facets with the network and association,’” according to his complaint.   

The lack of transparency referred to requests for copies of meeting minutes and financial statements by former managers and volunteers that went unfulfilled, according to the complaint. Instead, Ushida and Hennessy told volunteers the information was available on a “need-to-know basis” and that they didn’t need to know. Further, five former board members, managers or volunteers were threatened with legal action if they did not “cease all communication with the food bank, its volunteers, and its premises,” according to the referral.

Hennessy, the executive director, said the board approved an outside audit at its meeting on April 18 because it is a brand new management team in need of a better understanding of how things have operated. Laird, she said, was not fired, but chose to resign when confronted with concerns about financial operations at the food bank he oversaw.

Hennessy also confirmed that they had sent cease-and-desist emails, one of them to someone who Hennessy would not identify but who came on site and “verbally threatened and harassed me.” That person was also served with a trespass notice. The notice was sent by Todd Feinstein of Feinstein Law.   

Caroline Schimke, also a volunteer, said she received the letter and trespass notice, and that she was the one who confronted Hennessy. Someone needed to tell Hennessy that she was in the wrong, she said. 

Leslie Tippins, who managed the Quilcene Food Bank for nine years, claimed that food bank managers used to see an accounting every month. When the new board change happened, they stopped seeing accounting.  She confirmed she had received a cease-and-desist letter. “I am literally sick from all of this controversy.”

Since then various people who are no longer involved with the food bank said they’ve received word that food hasn’t been delivered, and that food bank staff is buying food at retail prices, and even at high-end markets. The food bank has run for years on relationships with food suppliers. Those systems worked consistently for years, say the former volunteers, but the new management failed to oversee a smooth transition.

Hennessy denied there were any problems with deliveries. She did admit to a learning curve and that was part of the reason for wanting the board to approve an audit. She also called the situation “really frustrating--the volunteers are the backbone of the association and suddenly come forward and create all this press opportunity.”

Hennessy expressed concern that the controversy overshadowed the good work of the organization, and she said she was concerned that this would unfairly tarnish the Food Bank. Hennessy said every month they serve nearly 3,000 households in East Jefferson County.

Mader’s referral said that many volunteer workers have left service. He has not received a cease-and-desist letter but is concerned he might face retaliation or retribution.  He pointed out the bylaws of JCFBA specifically state that whistleblowers are not to be retaliated against. His IRS complaint states that bylaws had been removed from the website, which Hennessy disputes.  She did say that the bylaws do not allow for an executive director and are being updated to include one. She was asked to provide a copy of bylaws, but had not done so by press time.

According to bylaws provided to The Leader by another source: “The Whistleblower Policy is intended to encourage and enable volunteers and others to raise serious concerns with JCFBA prior to seeking resolution outside the association.”

Mader said he thought carefully before he filed the complaint. He said he believes in the Food Bank and he doesn’t want people to stop giving, because there are a lot of people in need. However, whatever is amiss needs to be sorted out for the good of the organization.