The Emporia Gazette Attn: Chris Walker 517 Merchant Street Emporia, KS 66801

RE: Camp Alexander

Gentlemen:

August 14, 2014

KVOEAM/FM Attn: Chuck Samples 1420 C of E Drive Emporia, KS 66801

This is in response to your request for information regarding funding to Camp Alexander in light of the Camp's closure.

On August 4, 2014, Kenneth L. Hopkins, President of the E.L. and Z. Irene Hopkins Foundation sent a letter to Brian McCracken, Board Chair of Camp Alexander, expressing concerns the Hopkins Foundation, The Jones Foundation, the Emporia Community Foundation and the United Way had regarding the management of the Camp. The letter was sent as a follow-up from the meeting held on July 21, 2014 with Camp Alexander's Board and representatives of the Jones Foundation, Emporia Community Foundation, Hopkins Foundation and United Way.

The Hopkins ·Foundation is the largest private foundation funder for Camp Alexander, having provided $64,000.00 in 2012 and $56,849.00 in 2013, although Camp Alexander's financial records only report $52,949.00 in 2013. Hopkins Foundation alone has given almost $400,000.00 to Camp Alexander during the years.

The Jones Foundation funded $22,710.00 in 2012 and $46,410.00 in 2013. In the past four years, the Jones Foundation has given Camp Alexander approximately $90,170.00.

The Emporia Community Foundation funded over $50,000.00 in the past few years to Camp Alexander. In addition The Trusler Foundation had given $42,201.00 in 2010 to Camp Alexander.

The United Way provided funding to Camp Alexander of $28,000.00 in 2012 and $15,000.00 in 2013.

At a July 29, 2014 meeting with representatives from the four funders, Mr. Tom Thomas of Agler & Gaeddert, Chtd. reported that he had conducted a preliminary examination of Camp Alexander's financial records and interviewed staff members. Mr. Thomas reported that in his opinion it was not feasible to conduct an audit because the Camp's financial records were in such complete and total disarray. The bank statements were not reconciled and transactions which were listed on the bank statements were not posted on the Camp's accounting software. In addition, Mr. Thomas reported that based upon his review of the Camp's financial records there was:

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1. a complete lack of accurate and current bookkeeping; 2. failure to timely pay the payroll taxes resulting in penalties and interest; 3. failure to honor court orders regarding garnishment for child support; 4. failure to require the former Camp Director to follow By-Law requirements for

vacation pay; 5. failure to keep written receipts for cash payments; 6. grant monies were not used for the specific purposes specified in the grants; 7. lack of verification of deposits; 8. lack of guidance and management of employees; 9. bookkeeping records were incomplete, thus not usable to determine the financial

status; 10. $6,000.00 deposit was originally recorded as a donation but is now stated to be a loan; 11 . inaccurate and incomplete listing of campers using the Jones Foundation scholarship

grant, including, but not limited to, unclear process for Camp Alexander scholarship applications for parents;

12. overpayment of salary to prior Camp Director which was not returned; and 13. apparent commingling of funds from different specific grants which were apparently

used to pay expenses not intended and specified by the grants.

Interim Camp management staff related that the former Camp Director's actual physical presence at the Camp was very limited and his time sheets were inaccurate. He admitted to having been overpaid wages. He gave himself a raise, apparently without Board approval. He used restricted grant funds to pay bills and operating expenses. He did not comply with the Bylaws requirements regarding paid vacations. In fact, he submitted his resignation without providing notice or explanation. He borrowed money from a private individual on behalf of the Camp, allegedly to cover payroll expenses, stating initially that the money was given as a donation and later stating that it was a loan which was to be paid back. The Camp was opened this summer without a dumpster for the first two weeks because the bill had remained unpaid for the previous six months.

It was also discovered that the Board of Directors failed to address the issues raised by the AmeriCorps Program Director which were specifically set out in a letter dated June 23, 2014 to the Board. The letter included topics the AmeriCorps Program Director had previously discussed with a member of the Camp's Board of Directors in a meeting held in May, 2014.

In addition, the Camp Alexander Board and former Camp Director failed to timely reply to the 2014-2015 AmeriCorp Grant Agreement totaling over $100,000.00 which was offered through the Kansas Volunteer Commission and the Corporation for National and Community Service, resulting in the loss of over $100,000.00 in potential revenue for 2015 and subsequent years. The Kansas Volunteer Commission has found Camp Alexander to be out of compliance in relation to Federal regulations due to the Camp's failure to keep separate accounting records and commingling of funds. It is our understanding that the Kansas Volunteer Commission is continuing their investigation.

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No response was received from the Camp Alexander Board of Directors to the issues raised, although Mr. McCracken has now admitted to the press that the prior Camp Director is going to return the overpayment of his salary, but did not indicate when this repayment will occur. However, there remain many issues that were not addressed, including the loan taken out by the former Camp Director and the former Camp Director's vacation pay which he received the day before he resigned, despite his failure to comply with the Bylaws and policies of Camp Alexander relative to vacation pay.

The four funders have an obligation to their donors and their respective Boards to insure that their grants are properly used. The failure of Camp Alexander's Board of Directors to verify and account for the use of grant money can result in legal liability to the representative boards, thus there is a legal duty on the part of the funders not to continue to grant funds that are or may be misused. Accordingly, the Hopkins Foundation, the Jones Foundation and the Emporia Community Foundation have made a decision that at this time, they cannot continue funding Camp Alexander under the existing Board due to its lack of supervision and financial oversight. If there is a drastic change made in the Camp's operations and financial oversight, future funding will be reconsidered.

E.L. AND Z. IRENE HOPKINS FOUNDATION

~ d - . _,! ~y: d< ~ K~pkins, Board President

THE WALTERS. & EVAN C. JONES FOUNDATION

By . .::::::::::,~~~a:=::::::_fo~~~---­Sharon Tidwell, E

EMPORIA COMMUNITY FOUNDATION

tes, Executive Director

UNITED WAY OF THE FLINT HILLS

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