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Church of Brotherly Love King’s Table Corp. d/b/a Brotherly Love Social Services 81 N. Deerfield Avenue Suite 3 Deerfield Beach, FL 33441 Current and Previous Board Members: Margaret A. Davis Eloise Davis Anthony L. Davis Betty Mathision Leroy Austin Tommy B. Butts Jr. Pamela M. Davis Fannie Baker *It should be noted that the current/previous board members are also associated with a number of other non-profit corporations, including Brotherly Love King’s Table Community Development Corporation, which is currently an active corporation. Individuals listed as officers or directors include Anthony Davis, Margaret Davis, George Bowels, Marshelle Grover, Stephanie McMillan of the Community Development Division, Community Development Coordinator (2007-2010). A Community Development Block Grant (“CDBG”) Application was submitted by the applicant dated September 25, 2006 requesting $40,000.00 in CDBG funding. The application states that the project is to be funded by in kind funds of $14,724.00, other grants of $43,684.00 and CDBG funding of $40,000.00. The goals for the Helping Families to Succeed #2 project were shown as: “Project Goal is to benefit low-income persons by implementing the 3 R’s of Retaining, Restoring and Resolution of the family unit through a variety of programs and referral services. The program interventions consist of mentoring, counseling, and training to help families overcome today’s social and financial pressures. The “King’s Kids” mentoring program designed to assist low to moderate-income, at risk youth by giving each child a healthy view of life by building such character traits as self-respect, selfdiscipline, and self worth. To demonstrate to the youth that many positive possibilities of
the futures and deter them from a life of hopelessness, crime, drugs, poverty and promiscuity.” One of the recommendation letters in the application was from Beulah B. Hill (Beulah M. Butts) dated September 9, 2008 who was has been employed by Haitian American Coalition and Choices Network Systems, Inc. (both of which received CDBG funds) as well as having been the campaign aide who also ran campaign headquarters for Sylvia Poitier states that she is, “…president of the Common Highland Homeowners Association where Park Ridge Elementary is located. As the president I am aware of the program being executed by Brotherly Love Social Services at this school and I give my blessing upon their endeavors to continue providing the urgently need services for our youth.” As per a resolution number 2007/084 and dated March 20, 2007, it indicates that Brotherly Love Social Services was awarded $20,000.00 in CDBG funding. An Agreement entered into between the City of Deerfield Beach and Brotherly Love Social Services dated March 20, 2007 indicates that the sub-recipient will be responsible for administering a CDBG public service program for program year 7, (FY 06) Helping Families to Succeed #2. The program deliverables are listed as benefiting low to moderate income persons by implementing the 3 R’s of Retaining, Restoring and Resolution of the family through a variety of programs and referral services. The program interventions consist of mentoring, counseling and training to help families overcome today’s social and financial pressures. The agency currently has three components, one which is 1) King’s Kids – mentoring designed to assist low to moderate income at risk youth by giving each child a healthy view of life by building such character traits as self-respect, self-discipline and self-worth. King’s Kids provide the following services: children will have individual service plans provided by a counselor, reviewing their school records to collect the measurable data (grades, conduct, attendance and prior discipline), all children will receive group and individual mentoring weekly, all children will receive tutoring weekly, all children will receive group and individual counseling weekly, all children will receive a classroom visitation weekly, and all children will receive group education on the harmfulness of substance abuse. The program must accomplish 8.3 units per
month for a total of 75 units per year. It should be noted that although an asterisk is on the document next to units per month the only footnote next to the asterisk is the word, “note”. According to the agreement with the City, staffing is to consist of an Executive Director with 8 years experience in Social Services and a Chief Financial Officer with 8 years experience in Social Services. The services for the sub-recipient are listed to start on the first day of October 2006 and end on the first day of October 2007 despite the fact that the resolution for funding was not approved until March 20, 2007. Within the agreement the budget is outlined as salaries, $13,500.00, Fringe $1,033.00, Audit $4,525.00 and Insurance $942.00 for total funding of $20,000.00. Under the Payment section of the agreement it stated that, “The total amount to be paid by the Grantee under this contract shall not exceed $20,000.00.” Payments shall be made on April 10, May 10, and June 10 of 2007. The April 10th payment includes costs from October 2006 through March 2007. A payment is made on April 12, 2007 in the amount of $14,912.28 encompassing personal compensation in October of 2006 of $1,500.00, and employer taxes of $114.77. The documentation contained in the file indicates some sort of units next to each category that have no relationship to any of the other documents in the file. Furthermore, two payroll checks to Margaret Davis indicating a gross pay of $750.00 each and a net pay of $692.62 are used to support the expense. Additionally a tax filing submitted on October 18, 2006 to the Internal Revenue Service indicates taxes paid in the amount of $562.20. For the period ending November 30, 2006 personnel compensation is listed as $2,250.00 and employer taxes is $114.77. These expenses are supported by 3 checks written to Margaret Davis, each in the amount of $692.62 and a Federal Tax Deposit of $447.57. For the period ending December 31, 2006 personal compensation is listed as $1,500.00 and employer taxes is $114.77. Again this is supported by two checks to Margaret Davis, each in the amount of $692.62 and a Federal Tax Deposit of $447.57. For the period ending January 31, 2007 the same situation is seen of $1,500.00 in personal compensation with 2 supporting checks to Margaret Davis, each in the amount of $692.62 and a Federal Tax Deposit of $447.57.
For the period ending February 28, 2007 compensation is listed as $1,500.00, employer taxes is listed as $114.77 and an audit of $2,000.00. Documentation that was supplied included 2 checks to Margaret Davis each in the amount of $692.62 and a check made payable to the accountants, Harvey, Covington and Thomas LLC in the amount of $2,000.00. No documentation exists for tax payment. For the period ending March 2007 again personal compensation is charged at $1,500.00 supported by two checks each in the amount of $692.62, employer taxes in the amount of $114.77 for which the documentation indicates $447.57 was paid, $1,500.00 for audit supported by a check to Harvey, Covington and Thomas LLC with a notation “audit 05-06 payment” and insurance in the amount of $973.66 supported by payment number 8 to Flat Iron Capital Corp. It should be noted that insurance was billed at $31.66 above the annual budget. On May 10, 2007 a check in the amount of $2,639.77 was issued by the City for payment of $1,500.00 in personnel compensation, employer taxes of $114.77 and audit fee of $1,025.00. These expenses are supported by a payment to Internal Revenue Service in the amount of $562.32, two checks to Margaret Davis in the amount of $692.62, and a check made payable to the accountants, Harvey & Branker Assoc. in the amount of $1,525.00. The check to Harvey & Branker Assoc. indicates in the notation area “Audit 05-06 final payment/CDBG”. It is unclear why an audit for a prior period is being charged to this grant. On June 7, 2007 a check was issued by the City in the amount of $2,390.00 which is supported by a payment application of personal compensation amount of $2,250.00 and employer taxes of $198.05. Again, three checks to Margaret Davis in the amount of $692.62 are included as support and the payment to the IRS in the amount of $562.32. No other documentation is in the file regarding the services provided or the individuals and recipients who received the service. In 2008 Brotherly Love is given $30,000.00 comprised of $23,500.00 in salaries, $1,798.00 in fringes and $4,702.00 in audit fees. The staffing for the grant was listed as an Executive Director with 9 years experience and a Chief Financial Officer with 9 years experience. As with the previous year, Margaret Davis is being charged for her salary and fringe benefits.
Documentation in the file is lacking the payment for $3,333.36. Contained in this file is a packet of sign-in sheets for the month of May 2008. This is the only documentation regarding the work performed and the instructor listed on the sheets is Hawkins. The sheets indicate group tutoring, anti-drug sessions, group mentoring and life skills. No documentation is contained in the file indicating that the project ever fulfilled the goals stated in the applications for funding. In 2009 Brotherly Love is given $14,341.00 encompassing salaries of $9,000.00, fringe of $641.00 and an audit of $4,700.00 which is 33% of the overall grant. In the case file three checks are issued as follows: April 10, 2009 - $9,560.66, May 8, 2009 - $1,593.44, June 26, 2009 - $3,186.90. Again Margaret Davis is charged for her salary and fringe benefits and audit fees are paid to the auditors. Enclosed in the case file are student sign-in sheets for October 2008, November 2008, December 2008, January 2009 and February 2009 which do not correlate with the grant period. Many of the sign-in sheets do not list the instructor’s name and most of the sheets either are lacking the type of instruction given or “Voice Lesson” is highlighted. Some of the sheets contain instructor’s names such as Mrs. Sutton, or Mrs. Devico. It is unclear why Margaret Davis’s salary is charged to this grant. On September 16, 2009, Stephanie McMillian and S. Henderson conducted a CDBG performance evaluation review of this grant. Contained within the file is a 10 page checklist most of which has not been completed. It is unclear what, if any, evaluation was done based upon this checklist (Exhibit 281). The Public Services Budget Summary Sheet, part of the application, indicates that $67,684.00 would be paid in salaries to personnel ($24,000.00 of CDBG funding) but all the employee taxes would be paid by the CDBG funds. The application also indicates that the cost allocation for the project would be 41% of CDBG funds and 59% other funds. This allocation is clearly not followed on the Public Services Budget Summary Sheet. Based upon the findings and the significant amount of documents that were lacking to support the expenditures of the grant Kessler requested that the City contact Dr. Anthony Davis and secure the applicable documentation. In response to numerous requests, Kessler received an email from Dr. Davis on March 23, 2010 indicating his desire to work as quickly and efficiently
as possible however, as a small agency he cannot shut down operations to locate five years worth of records. Furthermore, Dr. Davis advised that he spoke to his attorney and would only provide any record that, “does not compromise our agency or staff’s personal security”. Therefore, he indicated he would only provide taxpayer ID, non-profit status, state corporation filing, insurance policy, IRS form 990, contracts and correspondence with the City of Deerfield Beach grants, and invoices for City of Deerfield Beach grants. Not only would the documents Kessler requested allow verification of the validity of the expenses but furthermore without them there would be no way to see that the monies granted to the organization were used toward the goals of the grant. On March 31, 2010 Kessler received a telephone call from Len Washington, Esq. who informed Kessler that he is an attorney that represents Brotherly Love and Emmanuel Human Services. He requested to know the reason why the documents were being requested from his clients and claimed that much of the City money was given to sub-recipients of the grantee and wanted to know the authority to review those documents. He further stated that Kessler’s request for W-2 and 1099 forms was troublesome in that the forms would show social security numbers. After a discussion with him, he stated that he would have the entities cooperate if the records are still available. Kessler also reviewed copies of the 990 forms secured from an outside source for the tax years ending September 30, 2005, September 30, 2006 and September 30, 2008. A return for 2007 was unable to be located. Furthermore, upon review of the tax returns and a comparison of the Florida Department of State Division of Corporation’s filings the officers and directors of the entity do not agree. Margaret Davis, who is not only the registered agent but also a Director of the Corporation and received salary charged to the grant is not reported as receiving any income on the IRS form 990. Kessler has been informed that the City also administers the Byrne Justice Assistance Grant for the Church of Brotherly Love King’s Table Corp. This grant is a considerably larger grant which is also named Helping Families Succeed. Upon a cursory review of the grant file it appears that this grant is charged out based upon units and a unit cost. Although the package contains a spreadsheet remunerating units and amount due, there is no other detail in the file
indicating who benefited from the services provided or who provided the service. This grant should be audited in detail.