Chapter 5 - Restricted Housing Money Paid Gala Vendors
The twelve transfers totaled $740,000.
Each one moved money from the youth-housing initiative into gala-related
vendor payments.
Not all went to Coastal Luxe.
Some went to legitimate hotels and caterers.
That complicated the story.
The foundation had a cash-flow problem.
Two years earlier, unrestricted donations declined while housing
commitments increased.
Someone began using restricted funds temporarily to cover general
expenses.
The plan may have been to reimburse the housing account later.
Sometimes the money was returned.
Sometimes it was not.
Henry looked devastated.
“How did I miss this?”
Lena answered carefully.
Because the transfers were labeled as interfund advances.
The board received high-level reports.
Not the underlying movement.
Henry had trusted management.
Victoria had chaired the fundraising committee.
Neither reviewed details.
Emma asked who authorized the transfers.
Lena opened the permissions log.
The first six were approved by the former executive director, Paul
Mercer.
He had retired last year.
The next four were approved by the current operations chief.
Two carried Victoria’s electronic approval.
Victoria stared at the screen.
“I approve event budgets. I don’t move restricted funds.”
The audit trail showed her credential.
That did not prove she knowingly authorized the source account.
Emma insisted on that distinction.
Then Brandon said something unexpected.
“Mom didn’t know.”
Everyone looked at him.
May you like
He swallowed.
“I did.”
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