Food pantry probe reopened
By EMILY HOIS
Staff Writer
The case regarding the alleged missing money from the Fostoria Food Pantry is reopened after being dropped earlier this week.
Judy Shoemaker, executive director of the Red Cross, reported more than $2,000 unaccounted for in the pantry's financial records in a complaint June 15.
The Red Cross was granted "temporary" control of the food pantry's government or FEMA funds when the Emergency Food and Shelter Program voted unanimously not to refund the Fostoria Food Pantry for fiscal year 2005.
"We are reluctant to take this measure, but based upon rules and regulations concerning the allocation of these funds, we feel that we would be remiss in our duties to do so," stated the May 10 letter, signed by EFSP chairperson Patricia DeMonte and past chairperson Lee Martin. "(The Red Cross) will continue to operate a food pantry for those in need."
Food Pantry president Larry Hatfield said funding was cut because of the pantry's weakened board -- four members resigned in June for undisclosed reasons -- and because the organization does not have its own building.
Hatfield and vice president Stuart Shiff were voted into office June 21 by a panel of five board members. Currently comprised of 12 members, the food pantry board meet about every four months -- with the exception of June. Members of the non-profit agency convened four times in June, according to Hatfield.
In the same letter regarding the non-refunding, the EFSP mandated that the food pantry remove any items stored at the Red Cross. If not removed by May 31, the items would be considered property of the Red Cross.
Shoemaker said an abundance of canned food still stocks the basement shelves of the South Main Street office.
When the Red Cross was assigned control of the funds, Shoemaker wrote a letter to the First Ohio Credit Union on June 16, stating "the fiscal responsibility of the Fostoria Food Pantry has been removed from former fiscal agent Sandy Kroetz and placed under the control of the Fostoria Chapter of the American Red Cross."
Shoemaker enclosed copies of the EFSP letters for verification, and was granted access to the accounts.
But the food pantry board members assert that the Red Cross was given access to only the government funds, not those received from the community.
"(Shoemaker) had the right to FEMA, but no right to the food pantry funds, which donations come from the Fostoria area," Kroetz said.
Shoemaker admitted there was a "misunderstanding" of which funds Red Cross was given access to. The food pantry has two accounts, checking and savings.
FEMA money must be separated from other money and kept in a checking account because it comes from the government and requires a paper trail for verification, explained DeMonte.
Shoemaker believes the FEMA funds and public donations are interspersed.
Kroetz contends that the FEMA money is strictly in the checking, while public donations are kept separate in the savings account.
DeMonte said the placement and distinction of funds is being investigated.
Shoemaker received a letter from the EFSP dated June 22, clarifying that the Red Cross may access "EFSP funds only and earmarked for FY 2005."
"Our letter was not intended to give the Red Cross authority over the Fostoria Food Pantry Funds. The Local EFSP does not have authority to do that," the letter states.
Before receiving the clarification, Shoemaker reviewed a list of transactions in the food pantry's savings account over the past six months. She noticed an abundance of withdrawals and transfers that "raised a red flag."
The beginning balance on Jan. 1 reads $3,970 and the ending balance on June 13 is shown as $749.
Records reveal a total of $630 was used to purchase items at the West Ohio Food Bank.
Seeing no other records to prove where the remaining $2,600 in the savings account was spent, she filed the complaint.
"Judy (Shoemaker) had no right to this account," Kroetz said. "She had no ledger to align with the printouts."
Though the food pantry board would not provide documentation showing how public donations and FEMA funds were spent, they assured "the money was not misappropriated."
Kroetz said the pantry's expenses are about $200 per month for supplies including stationary, stamps and copies of monthly reports. Those items are typically purchased at the local Dollar General.
Monthly food purchases range from $150 to $200, including gas reimbursement to the Lima or Toledo food bank. Shiff said Roppe Corporation occasionally donates the use of its truck to transport large quantities of food into town.
"As far as FEMA money, we do have documentation to prove groceries were purchased," DeMonte said.
After the complaint was filed, the food pantry president and vice president requested an independent audit on the non-profit agency's books.
David Krupp, 65, reviewed the financial records.
Though he's not a certified public accountant, Krupp attended the Tiffin University School of Business and "took a number of accounting classes," he revealed.
Krupp said he is a past treasurer of the food pantry, though it was a number of years ago.
After analyzing the receipts and expenditures, Krupp stated in a notarized letter, "I find all monies to be in order and accounted for."
The three pantry board members produced the letter for Officer Tom Kennedy, who is handling the case.
After talking to board members Hatfield and Shiff, who oversee Kroetz, and reviewing the letters from the Krupp and the EFSP, Kennedy said Wednesday the case was dropped.
"I never saw a ledger," the officer said. "The board asked for a third party audit, who found the books true and correct."
"Sandy (Kroetz) shared the letters that Judy shouldn't have had access to the account," Kennedy said. "Nobody has produced anything showing me there was wrongdoing."
Past president of the Red Cross Jerry Nelson, spoke to Police Chief Phil Hobbs Thursday regarding the case.
"Chief Hobbs has instructed the investigation to go forward," Nelson said this morning.
The police department will make no further comments on the case.
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