ORCCA executive director, Mike Lehman, admits in today’s paper that SCFS (South Coast Food Share) is tens of thousands of dollars in debt but is accusing unnamed “former employees” of “spreading” an exaggerated deficit figure of $170K. Tuesday, MGx reported that SCFS was in financial trouble and the -$170K figure used in the article came from Lehman himself because the figure has been posted on a wall in his office for anyone to see. Lehman acknowledges this figure in an email to me this week.
the $170,000 “upside down” number for SCFS is somewhat misleading. As I came on board in February (by the way replacing Pattie Gouveia, not Mary*) one of the first things I did was develop the large graphic in my office to track where all the programs are. That was a snapshot of finances at that time. Several of the programs in the red have since raised funds and are in the black. That said, SCFS is still our largest financial hole. However, the $170,000 is a bit misleading in that in only reflects the revenue for the program minus costs of the program. This number is before ORCCA makes a contribution, usually from our CSBG funds. In actuality, after the contribution from ORCCA funds the deficit is in the $50,000-75,000 range.
Why make unfounded and baseless accusations? The earlier article acknowledged that because of accounting problems “it is unclear if the $170K figure is even accurate or how long it has been accumulating.” The accusations don’t stop there, Lehman is quoted saying, “Several former employees said they were taking documents out saying we’re in financial trouble.” So what, Lehman just let them walk out the door?
These accusations are not only shameful they deflect from the real story which is the agency is over extended and the books are in disarray, all of which Lehman admits. The paper reports by Lehman’s guestimate that SCFS is only “$30,000 to $50,000 in debt”, a 40% spread that testifies to the poor condition of the books and well below the “$50,000-75,000 range” just two days earlier. The other stunning admission in the article is the board is allowing him to raid other assets… sort of robbing Peter to pay Paul.
Lehman did admit the organization is facing budget strains, but added those are being handled by making larger payments from ORCCA’s general corporate fund to the Food Share program as a stopgap measure.
ORCCA has dedicated funds and unrestricted funds like those that come from private donations and Park West and it is unclear what “corporate fund” he is referring to and block grants like CSBG are used for current fiscal years, they cannot be used to correct prior operating deficits. ORCCA is struggling under crushing $36K per month debt service and lease payments and had to use the Food Bank as part of the security required to obtain the financing for the entire campus.
Lehman and the board better start shifting their priorities away from casting blame and deflecting negative publicity and focus upon finding solutions. Ultimately, the board is responsible for the success or failure of this organization.
*Pattie Gouveia served for six months as an interim CEO until a permanent director could be hired to replace Mary Schoen-Clark. Lehman replaced Schoen-Clark not Gouveia.
With all that is coming out I would worry that program money was not being used as it should be. This is way to big of an organization to just let this continue. Who is going to step in and make this organization prove that they are not using restricted funds to pay off construction costs. Head Start should investigate to make sure that they are not footing the bill to cover Food Share costs.
The ORCCA Board has struggled to receive documents from finance and the CEO.. They only have the capacity to work with what they are given to review.
I couldn’t agree more. You have hit it on the head. The new airport is a mess and serving who? Aren’t the millionaires’ private jets now serviced at the old terminal? And as soon as Bandon Dunes can arrange it, the 1% will be using a newer airport in Bandon or Port Orford where they won’t have to see the rusting Coos Bay waterfront on their chauffered trip to their deluxe digs in the dunes. By then, B, B, and L will be off on some other enterprise, and the NB airport abandoned to the vagaries of the climate leaving only public debt in it’s remains.
Yes, correct Lehman is admitting that there are documents that state the financial trouble (ruin) that ORCCA is in. ORCCA has trouble each month paying its bills. Why is that, the mismanagement of the current Executive Director Mike Lehman or the uneducated finance department. It’s about time that the real internal disarray of ORCCA and the management come out for the community to know. With ORCCA in financial ruin why are large raises being given to management staff and hiring of new staff. The new Development Coordinator Debra Ross that Lehman hand picked is from Arizona NOT EVEN A LOCAL PERSON. Let’s not forget about the ORCCA boards responsibility here for overseeing that ORCCA is a sound operation.
“Several former employees said they were taking documents out saying we’re in financial trouble.” Funny, he admits there are documents that show orcca is in trouble
Yes, there are and rather than sending Lehman out to control the media, they should deal with the problems so there is no reason to worry about bad press
PS. Lehman and Barton and Benetti all sit controlling funding to the airport as well. Does anyone have any doubt why the airport is such a damned albatross? These same men have their fingers in every money draw going into this county. And look what they did to a perfectly adequate airport and terminal. $50 million dollars for the second terminal which is rusting into the sand and weeds surrounding the airport. I urge every taxpayer to drive out and take a look at what Benetti,Barton,Lehman and the rest have foisted upon you. Take a gander at what these men have done with OUR money. Then tell me these ass hats deserve one more plug nickle from the taxpayers? The mayor of North Bend can’t fund firefighters at the airport, but the idiot funds SCDC for another year? So Mayor, what the hell has SCDC done for North Bend that you give them tens of thousands of dollars now???
Where is Danny Stoddard when the shit he threw finally hits the fan? Danny????? You got the money Danny, remember Follow The Money? And YOU were Lehman’s first beneficiary of all the turmoil YOU Danny Stoddard, aided and abetted by The World Paper, my opinion only of course. And the record at The World. These men did a real job of taking down the women at ORCCA. Any other garbage thrown is just good after bad. Do not make the mistake of thinking this isn’t SCDC and C of Consorts on the move in this county. Again. Those ruby-slippered experts at moving the county forward, ha ha. You know Karma is a bitch, and I think she finally looked our way. The worm is turning, and the public is about to watch. Thank you M and all those fighting to bring Coos County forward and wrest power and funding away completely from those who have failed so miserably for the last forty years. Bye bye Barton Baby, and hopefully he takes the Messerle Clan with him. My humble opinion only of course.
No one has ever accused The World or DS of growing a profitable business either. 🙂
Too true!