AG letter of compliance to be signed

The Chestnut Hill Community Association board of directors distributed and accepted a letter from the Pennsylvania Attorney General settling an investigation that has gone on for a little less than two years. By signing the letter, the CHCA and the Chestnut Hill Community Fund -- the CHCA's affiliated 501(c)3 fundraising arm -- have agreed to pay the state $5,481.50. in penalties and expenses. Neither organization admits to wrongdoing in any of the three instances outlined by the AG.

The letter, an "assurance of voluntary compliance" sights three findings by the AG.

1) The letter states that the CHCF "failed to account properly for the use of the Pennsylvania Department of Community and Economic Development grant ... by failing to ensure that $2,900 received by the fund were expended in accordance with grant restrictions." The money referred to was part of a $10,000 grant (detailed well in a post below) that was supposed to be used on workstations for the Chestnut Hill Local, which is owned by the CHCA. $2,900 of that money was used for a separate building owned by the fund, since sold to Bowman Properties, which was not in accordance with the terms of the grant.

2) The AG found fault with members of the CHCA soliciting contributions for the CHCF without a license from the Pennsylvania Department of State, Bureau of Charitable Organizations. That registration has since been obtained by the CHCA, according to CHCA president Walter Sullivan.

3) The AG frowned on the fact that the CHCA and CHCF "temporarily comingled [sic] contributions to the fund with operating assets of the association" by processing those donations made by credit card to with an association credit card processing account. That situation has also, according to Sullivan, been remedied. The CHCF now has a it's own credit card processing account.

That's it. The letter signifies that by signing the letter the CHCA and CHCF will avoid admitting wrongdoing of any kind. In the letter: "the respondents deny the foregoing allegations and voluntarily have taken action to correct the matters alleged."

In addition to the $2,900 to be repaid on the grant, the CHCA and CHCF will pay $500 in civil penalties, $2,000 in AG expenses and $81.50 in filing fees.

We will have a full report of the matter in next week's Local.