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Winsted December 6, 2002  RSS feed


Follow the Foundation's Money Trail

By Judy Pavlak, Winsted

It is plain common sense, particularly if someone has grave questions as to how their money is being used, to trace charitable contributions from receipt to how the money was ultimately spent.

I am not a party to the lawsuit against the Winsted Health Center Foundation that is being heard in Litchfield Superior Court, but I have had an intense interest in its progress since it was filed last spring. My interest centers on several aspects of the suit, from the Foundation's lack of openness and involvement of the people of the service area towns, to the way the monies contributed to the Foundation were handled and used.

Why am I concerned about the money collected and its use? Basically because my husband and I contributed substantial amounts over the years. Like many of you, our contributions ranged from paying off the mortgage for purchase of the hospital's campus on Spencer Street to providing funds to maintain the buildings.

We became painfully aware of the misapplication of one of our contributions by those responsible for the handling of gifts to the Foundation, which caused us to wonder if there were other failures to use contributions properly. It took intervention by Attorney General Blumenthal to prevent a diversion of our $500 gift—which was given for use by the President for his non-reimbursed expenses, not for a directional sign at the Center—and a return of our money, which we then gave to the Health Center to purchase needed medical equipment.

How long do you think it should take for the Foundation's leadership to gather up financial records, especially in this age of computers? A month, maybe two months or so, seems reasonable. The Foundation was asked to supply such financial information starting last spring. Finally, with their failure to respond, the plaintiffs got the court to order compliance by the Foundation. How long has the Foundation remained "out of compliance"? I won't keep you guessing. It has been three months. Does this seem reasonable to you? What are they hiding?

This breakdown in fiscal responsibility and accountability exhibited by the fiscal officers of the Foundation undercuts the trust that is necessary for people to continue to contribute to the Foundation's annual appeals. It even causes the corporators to wonder and hesitate when they receive an appeal for a contribution, as they did with the mailed announcement of the approaching annual meeting to be held on December 17.

Since none of the Foundation's meetings (of trustees or corporators) are open to press, TV, or even the people of the eight-town service area, it is going to be up to the corporators who are allowed to attend the annual meeting to ask questions regarding what has been happening to people's contributions and gifts. I hope the corporators will not be buffaloed. The Foundation’s corporators are supposed to be representatives of the community, and as such they have a duty to the people to ask penetrating questions and receive satisfactory answers. The trustees of the Foundation have a fiscal (fiduciary) responsibility to live up to.

It is time to get things into the open so the Winsted Health Center Foundation can get its house in order and get on with its stated mission.