Audit finds hundreds of thousands of dollars missing from charity funds

An accounts payable audit of a Tennessee charity found that more than $200,000 was missing from its appropriated funds, the Leaf Chronicle reports. According to the paper, a former employee at Clarksville-Montgomery County Community Action Agency spent $208,000 in personal expenditures during a three-year period.

The missing funds were found after Dennis Dycus, director of the Division of Municipal Audit, ordered the charity's accounts payable records to be reviewed after more than 100 examples of inappropriate spending were traced between May 2007 and July 2010. The search found that the charity's former fiscal officer personally obtained cash through the agency's bank accounts.

JoAnn Johansen was alleged to have charged $253 worth of long-distance phone calls to the charity, plus spending more than $1,100 for unnecessary hotel rooms on business trips and more than $1,400 to payoff credit card debt.

Additionally, the Leaf Chronicle reports that a third-party auditor found the former employee had poured money from the charity into a "bogus" online bank account. The case was never brought to court because the alleged thief passed away in September 2010. 

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