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$33k theft from Boys and Girls Clubs of Porter County under investigation

Updated: June 24, 2014 7:57AM



VALPARAISO — The Valparaiso Police Department is investigating the theft of approximately $33,000 from the Boys and Girls Clubs of Porter County.

The agency is cooperating with police in the investigation, Ryan Smiley, the clubs’ president, said in a prepared statement Thursday, and is seeking full restitution of the missing funds.

The money is missing from cash receipts from Kidstop, a fee-based child care program conducted before and after school at nine sites throughout the county.

Club officials first detected the discrepancies in cash missing from daily deposits for the program as a result of an in-depth cost analysis. A full audit determined that the funds are missing from a 21/2-year time span, from 2012 through 2014.

The employee responsible for the program’s deposits was placed on paid leave, prohibiting the individual’s access to the club and any of its operations, pending the outcome of the internal investigation. The employee was terminated with the investigation from an external audit.

“Boys and Girls Clubs of Porter County is committed to the highest standards of ethical behavior and integrity, and does not tolerate inappropriate or illegal activity on the part of any club staff, volunteer or youth member,” Smiley said, adding all employees and volunteers must undergo a thorough criminal background check on an annual basis.

While there are accounting controls in the depositing of collected funds, an additional internal control of reconciliation of the program deposits was lacking. Those controls have since been implemented and a full examination of accounting practices has been conducted, Smiley said.

He said the situation was “very unfortunate and hurtful” for everyone associated with the clubs.

“We believe we have uncovered the full extent of the theft and the gaps in our processes, and we are confident that this was an isolated incident,” he said.



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