Image Credit: Tennessee Office of the Comptroller of the Treasury
The Center Square [By Kim Jarrett] –
The Tennessee Office of the Comptroller of the Treasury said an organization that provides services to children and families in four counties “failed to retain supporting documentation justifying at least $250,453.33 in questionable credit card charges.”
The Davis House Child Advocacy Center received about 33% of its $5.3 million in funding from government sources during the investigative period, according to the report released Thursday. The audit examined records from January 2020 to August 2024 and looked at two credit cards.
The balances on the cards were “consistently high,” the report said. The largest balances were more than $13,700 on one card and more than $24,800 on a second card.
The organization had a pattern of “recurring and increasing operational deficit,” according to the comptroller’s office.
“Between 2020 and 2023, DHCAC spent more money than it could generate from revenue sources,” the report said. “Although the DHCAC audit report for the year ending 2024 was not available, officials told investigators that in 2024, the entity experienced financial difficulties in meeting the employees’ payroll obligations and meeting the required reimbursements for travel expenses, further indicating a pattern of recurring and increasing operational deficit.”
The former executive director is accused of using the organization’s credit card for more than $256 in personal purchases at Florida’s Walt Disney World Dolphin Resort. He attended a conference at the resort that was paid for by the Davis House, the report said.
The comptroller’s office could not find any evidence that the purchases were repaid to the organization. The former executive director wrote a check to the organization for fuel and personal purchases, according to the report.
The Davis House said in a news release late Thursday that the problems were corrected under new executive director Carolyn Evans, who joined in April 2023.
“The Comptroller’s Office did not request a corrective action plan for Davis House CAC as it was identified in the report that many of the best practices were already in place and leadership was responsive to all requests,” the organization said in a news release.
Other questionable charges include more than $1,000 spent at L.L. Bean for what was labeled “staff Christmas gifts” and a $70 charge to a beauty salon, which was described as a gift to an employee and recorded as “Employee Goodwill.”
The records also show purchases for entertainment, alcohol and restaurants, according to the report.
“DHCAC officials told investigators that purchases at restaurants and for alcohol were for donors, board members, visitors, and employees during meetings, events, or fundraisers,” the report said.
The comptroller’s findings were forwarded to the local district attorney’s offices.
“It is essential that nonprofit organizations with public funding operate transparently and within clearly defined financial policies,” said Comptroller Jason Mumpower. “Proper oversight by the Board of Directors and documentation help prevent wasteful spending, protect the organization’s mission, and promote public trust.”
FOLLOW UP REPORT:
Davis House says problems in comptroller’s report are rectified –
The Center Square [By Kim Jarrett] –
A Williamson County nonprofit says financial problems identified in a report from the Tennessee Office of the Comptroller of the Treasury are corrected.
An audit spanning the years 2020 to 2024 identified at least $250,453.33 in questionable credit card charges made by the Davis House Child Advocacy Center.
The majority of the comptroller’s findings occurred under an executive leadership and a Board of Directors that are no longer with the Davis House, the organization said in a news release.
“Carolyn Evans, Executive Director since April 2023, has successfully implemented actions that have cut expenses, and she has reorganized operations and programs to improve efficiency across the agency,” the release said. “Davis House CAC leadership and the new Board of Directors is operating with strong fiscal oversight, has developed new revenue sources, and is creating a strategic financial plan to ensure the long-term health of the organization.”
The organization cooperated with the comptroller’s investigation.
“We will keep open communication with the State going forward,” Board Chairman Micah Berg said in the news release.
The comptroller’s report said the organization had a pattern of “recurring and increasing operational deficit” during the audit period.
“Between 2020 and 2023, DHCAC spent more money than it could generate from revenue sources,” the report said. “Although the DHCAC audit report for the year ending 2024 was not available, officials told investigators that in 2024, the entity experienced financial difficulties in meeting the employees’ payroll obligations and meeting the required reimbursements for travel expenses, further indicating a pattern of recurring and increasing operational deficit.”
A former director was accused of using a credit card for personal purchases in the report.
“The Comptroller’s Office did not request a corrective action plan for Davis House CAC as it was identified in the report that many of the best practices were already in place and leadership was responsive to all requests,” the organization said in the release.
Davis House helps physically and sexually abused children in Williamson County.
“An increase in reported child abuse cases this year makes our services more critical than ever,” the organization said. “Davis House is the only child advocacy center state-mandated to serve the 21st Judicial District.”
