Why We Conducted This Audit
We initiated this audit based on concerns from our previous audit of the Jefferson Sports and Scholastic Foundation, dated November 10, 2010, and its affiliation with Joshua Williams, the Foundation’s director.
What We Found
Foundation Reimbursed Grant Funds for Expenses Not Incurred
• Between 2006 and 2009, the Just Willing Foundation (Foundation) submitted four reimbursement requests to the Department of Social Services that included copies of checks to vendors and other supporting documentation for expenses totaling $9,766 the Foundation did not actually incur, which may have violated state law. Also, the Foundation appears to have donated $2,000 of grant/public funds to a church, which may violate the state Constitution.
Public Funds Used for Personal Purposes
• Mr. Joshua Williams used $11,416.89 of Foundation funds to pay the following: (1) $6,987.20 was paid to purchase math books for resale by his business; (2) $4,124.05 was paid for his personal fraternity expenses and social club membership dues; and (3) $305.64 was paid to himself for office supplies that the Foundation may have already paid directly to the vendor. By using $11,416.89 of public funds for his personal benefit, Mr. Williams may have violated state law.
Payments to Mr. Williams and His Business Lacked Documentation and Public Purpose
• Mr. Williams made cash withdrawals and wrote checks to himself and his personal business from the Foundation bank account totaling $145,948, but could not provide adequate documentation supporting the payments or the public purpose for these expenditures.
Federal and State Tax Concerns
• Foundation Not Tax Exempt: The Foundation claimed on grant documentation with the state that it was a notfor-profit organization and had 501(c) (3) status [exempt from federal income tax]. However, the Internal Revenue Service (IRS) has no record of the Foundation as a 501(c) (3) tax exempt organization. Since the Foundation’s tax exempt status could not be confirmed by the IRS, the Foundation may have violated state law.