Overview:
Milwaukee-based firm Wipfli agreed to examine Fresno EOC’s finances during 2023 and 2024 to “identify, quantify, and address any irregularities.”
The Fresno Economic Opportunities Commission this week approved a long-awaited forensic audit that is expected to reveal how the nonprofit ran-up a multimillion dollar deficit.
Milwaukee-based accounting firm Wipfli agreed to examine the commission’s finances during 2023 and 2024 to “identify, quantify, and address any irregularities” in revenue and spending in the administration budget, along with three key programs — food services, transit systems and Head Start — as well as the commission’s pension and health insurance fund.
At a meeting in February, interim CEO Brian Angus identified administration, food and transit services and Head Start as the programs with the largest budget deficits.
Fresno EOC spokesperson Amanda Venegas confirmed the vote approving the contract for the audit took place Monday during the Board of Commissioners’ meeting.
“Fresno EOC is engaging in an audit because the Board of Commissioners wanted to address any issues or questions with an audit done by an independent auditor that we can share with the community,” Angus said in a statement to Fresnoland on Wednesday.
Meeting records indicate the maximum cost of the forensic examination would not exceed $123,250. The Wipfli proposal outlined a roughly 10-week estimated timeline to completing the audit.
The proposal said it would “determine any negative employee impact,” including whether pension contributions were “completed properly and timely” during 2023 and 2024 and whether health insurance reserves “are adequate, where all employees are protected at all times.”
News of the audit comes roughly four months after Commissioner Dr. Joaquin Arambula — also a state assemblymember — first called for a formal inquiry into Fresno EOC’s finances. In a statement to Fresnoland this week, Arambula applauded the commission’s vote.
“I appreciate that the EOC Commissioners understand the severity of the organization’s rocky fiscal situation and have approved moving ahead with a forensic audit that was recommended by the Audit Committee, on which I serve,” Arambula said. “We must secure a full and detailed report of EOC’s revenues and — more importantly — spending to right this ship and ensure that this essential organization can operate into the future.”
Fresno’s chapter of the Civil Rights era poverty-fighting nonprofit has faced scrutiny in recent months after a deficit emerged — and grew to more than $4 million earlier this year — and the commission quietly parted ways with former CEO Emilia Reyes.
Angus stepped back into the CEO’s job in an interim capacity in January and pledged to restore financial order before the end of the year.
Arambula said the people who depend on Fresno EOC deserve answers.
“The people EOC serves are among our most vulnerable and need the services and programs that EOC provides,” Arambula said. “We must be responsible stewards and ensure transparency regarding public resources.”
