The former CEO of the local United Way is under investigation after board members allege “questionable transactions,” according to an affidavit filed last week in Waynesboro.
The affidavit filed Nov. 20 seeks access to Kristi Williams’ accounts with DuPont Community Credit Union after the former CEO allegedly issued more than $20,000 in direct deposits to her personal bank account in 2023 and 2024.
The United Way of Staunton, Augusta County and Waynesboro announced Nov. 8 that it had ended operations due to increasing costs and declining revenues. Williams had apparently been let go in the weeks leading up to the announcement, according to sources.
“Like other non-profits, UWSAW has experienced a notable downward trend in pledges and fundraising over the past few years,” said a statement from the non-profit after the closure.
The statement did not mention any financial discrepancies.
Since the closure was announced, AFP has reached out to multiple board members, including President Courtney Thompson and Kendra Jones Carter for more information, but they declined to offer comment.
Carter told AFP she was told by legal counsel not to comment beyond what was in the press release.
Don’t rush to judgement
A former local CEO and executive director of a Waynesboro-based nonprofit, however, cautioned those reading the news not to rush to judgement due to the investigation.
While the initial reports sound damning, there may be a simple explanation.
The former ED told AFP that it would not be unusual for a CEO to incur $20-$30K in costs over two years.
The bigger question, they said, might be what the financial practices were with the regional non-profit. They questioned how it took two years to find the alleged discrepancies.
The former ED told AFP that their former non-profit regularly issued reimbursements to them, but the checks were cut and signed by the staff accountant and a board member. The executive director said they never issued checks to themselves.
The former ED also said that audits for non-profits are typically required every two years.
A former board member of the local United Way said that while they served almost 15 years ago, there was a financial committee at that time that regularly reviewed transactions. The board member was unsure if the financials were handled the same way in recent years.
Breaking down the finances
According to the 990 tax form filed by the local United Way, the organization had 10 board members, five employees and an estimated 556 volunteers for the fiscal year ending June 30, 2023.
The financial picture presented in the 990 form didn’t seem as dire as it was presented in the statement on the closure.
Contributions and grants during the fiscal year were $589,152; the prior year contributions and grants totaled only $406,845.
Salaries for the five employees were $258,617. Williams’ salary was listed at $83,250.
Board members listed on the form were not compensated.
The organization reported it had $314,706 in total assets; $73,947 in expenditures; and $240,759 in net assets or fund balances, on the form.
The tax return was signed by Courtney Thompson, current President and CEO of the Greater Augusta Regional Chamber of Commerce. Her title was listed as Chair Elect on the tax form prepared by White, Withers, Masincup & Cannaday PC. The form indicated that financial statements for the year were audited on a separate basis. The form also said the organization had a committee that assumed responsibility for oversight of the audit, review or compilation of its financial statements.
The investigation
AFP reached out to the Augusta County Sheriff’s Office for a statement on the investigation. They have not responded to our request.
According to a report in The News Leader, board members met with the ACSO regarding “questionable transactions” last week. The affidavit for a search warrant to access Williams’ bank account was filed on Nov. 20 in Waynesboro.
In addition to the checks Williams allegedly wrote to herself and deposited into her personal account, the affidavit also alleges that Williams took out loans using the names of employees and used the agency’s prior address on the loans.
Williams was named CEO and president of the United Way of Staunton, Augusta County and Waynesboro in 2020.
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Crystal Graham
