Pensacola Humane Society Board releases 'accountant's report' of its finances

Pensacola Humane Society board members this week were cheering an accountant's report they say has cleared them of accusations leveled by former staff members and volunteers.

"We hope the report will help reassure donors, volunteers, fosters, and the community at large that the Pensacola Humane Society is financially sound and well positioned for a bright future," an email from member Eloise Lautier to a group of agency supporters said.

More:Pensacola Humane Society board accused of mismanagement, misappropriation of funds

The board hired Saltmarsh, Cleaveland and Gund in December to "investigate and resolve financial concerns raised by We The Organization," a group comprised of Humane Society staff, volunteers and pet fosters that had circulated a press release calling for reforms and the ouster of Board President Gerald Adcox.

Board members were accused in the news release of mismanagement and misappropriating donor money set aside in restricted funds for specific purposes.

Michael Kelly, the board's attorney summarized the accountant findings in a letter stating "the report only provided positive findings for PHS."

"This report is a fair and accurate representation of accounting records at PHS and found no wrongdoing, misappropriation of funds or any improper or incorrect behavior," Kelly wrote.

The 10-page "independent accountant's report" was not an actual audit of PHS books and by design investigators were precluded from offering opinions or recommendations of any kind. The accountants who compiled the report called the examination a limited review of Humane Society finances during 2021 and 2022.

The review "differs from a full audit in that it focuses on specific areas of accounting that PHS and the accounting firm wish to address," the team wrote.

One finding made was that for five weeks in 2022 the Humane Society's weekly payroll increased by 25%. Further investigation showed "all of the fluctuations were related to bonuses paid to the former director of development."

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That director of development was Amanda Moore-Joseph, who briefly served as interim executive director before being fired by the board for insubordination. She and five other staff members have been named in a defamation lawsuit filed by the board.

The accounting firm stated that further review of the bonuses provided to Moore-Joseph revealed that an incentive payment program had been drawn up for her as a reward for bringing in donations and discussed at the April 2022 board of directors meeting. "No action was taken by the board to approve the prepared incentive program," the report states.

The total bonuses received by Moore-Joseph amounted to $19,000 for the year, the report states. It did not detail how much Moore Joseph had secured in donation funds.

"It appears these bonuses were paid without the knowledge and/or approval of the board of directors or the board treasurer," the team of accountants said.

Moore-Joseph's attorney, Russell Van Sickle, declined comment.

The alleged misappropriation of donor restricted funds, those set aside for a particular purpose such as reduced cost spay and neutering, was among the most serious charges leveled by We The Organization against the Pensacola Humane Society Board of Directors.

Moore-Joseph said it is illegal to remove funds from restricted accounts.

Moore-Joseph, who obtained access to Humane Society financial information when she was appointed interim executive director, told the News Journal in December that it appeared to her the board had begun using all available funds to cover the cost of running the Humane Society after the agency "started bleeding" money in the August time frame. One "big gift" of over $200,000 had been depleted, she said.

The accounting team reported obtaining a listing of all donor restricted funds in 2021 and 2022 "as identified by the Society."

We traced expenditures of restricted funds to underlying documentation noting that the use of restricted funds "appeared to be in line with the donor's intended purposes," the team of accountants wrote.

Twelve funds holding $105,718 were examined, according to the report. It also tracked $49,442 in individual restricted donations.

It is unclear in the Saltmarsh, Cleaveland, Gund report whether the accountants looked at contracts attached to some of the restricted fund accounts kept by the Humane Society. Two such contracts held contingencies stating that money not spent within a particular time frame had to be returned to the donor.

Both appropriations were provided with the intent the money be used to provide low cost spaying and neutering. The Pensacola Humane Society halted its spay and neuter program after terminating veterinarian Chelsea Smasal in April of 2021.

Saltmarsh, Cleaveland and Gund found $13,885 in the Humane Society's Florida Animal Friend Fund.

FAF granted the Humane Society $25,000 to spend on a low cost spay and neuter program between July 5, 2021 and June 28, 2022, according to the contract, which stipulates "any unspent funds remaining on August 31, 2022 will be returned to FAF immediately."

More:Pensacola Humane Society hires accounting firm to review 'misappropriation' allegations

Lois Kostroski, executive director for Florida Animal Friend, confirmed her non-profit had sent a certified letter to the PHS Board of Directors inquiring as to the status of the donation dollars when news of the fund misappropriation allegations was made public. She has not responded to follow up phone calls.

The accountants also noted $24,085 in the Humane Society's Escambia County Spay/Neuter Fund.

The county had appropriated $40,000 annually to the nonprofit until the Humane Society spay and neuter program was cancelled.

A contract dated Aug. 20, 2020, and signed by then-Escambia County Board of Commissioners Chairman Steven Barry states funds would go to the Humane Society "in exchange for the faithful performance" of outlined duties and any "residual funds remaining unspent or unencumbered" be returned at the end of the fiscal year.

Barry said County Animal Services Director John Robinson felt confident the Humane Society had lived up to terms of the agreement by the time Smasal was fired in 2021 and the spay and neuter program cancelled.

Soon after the We The Organization controversy swept through the ranks of the Humane Society, the board president sent out an email headed "funds analysis of 93K missing" to 15 people in regard to "purported list of missing funds" attributed to board misappropriation.

More:Pensacola Humane Society director fired; staff clears shelter, plans mass resignation

The email mentions a "Lexus sold" for $24,000 and states the only restriction put on the donation was "for best use."

Sheila Howard, the woman who made the donation of a Lexus automobile, expressed surprise that her gift had been sold by the Humane Society.

"Somebody on the board sold my car?" she asked in surprise.

In previous interviews, Moore-Joseph had insisted Howard asked that the Lexus not be sold off, and Humane Society staff had intended to use the vehicle as an incentive to hire a veterinarian, who wouldn't be paid as much by the non-profit as he or she would be in the private sector. Another former staff member confirmed Howard had asked the car not be sold.

Howard couldn't recall specifically her instructions to the Humane Society when she donated her vehicle, but was certain her gift was intended to "be for the benefit of the animals."

Howard had approached the Escambia County Animal Shelter prior to making her donation to the Humane Society, according to Robinson, the animal services director, but due to a delay in getting approval to accept her donation, the county agency lost out to the Humane Society for the donation.

Robinson did specifically recall the stipulations Howard had placed on her gift, had it gone to the Animal Shelter.

"A woman came to the shelter to donate a car. It was a Lexus. She had expressed that it not be sold," he said. "She wanted the animal shelter to use it. She wasn't sure how we could use it, but she really didn't want it to be sold."

The Pensacola Humane Society has been closed since the first week in January. Most of the staff had resigned in protest following Moore-Joseph's firing. PHS Board member Blake White was hired in early February to act in an executive capacity at the Humane Society, which, a release said, was planning to reopen soon.

This article originally appeared on Pensacola News Journal: Pensacola Humane Society releases accountant's report of its finances