(The Center Square) – The Tennessee Office of the Comptroller of the Treasury said an organization that provides services to children and families in four counties “failed to retain supporting documentation justifying at least $250,453.33 in questionable credit card charges.”
The Davis House Child Advocacy Center received about 33% of its $5.3 million in funding from government sources during the investigative period, according to the report released Thursday. The audit examined records from January 2020 to August 2024 and looked at two credit cards.
The balances on the cards were “consistently high,” the report said. The largest balances were more than $13,700 on one card and more than $24,800 on a second card.
The organization had a pattern of “recurring and increasing operational deficit,” according to the comptroller’s office.
“Between 2020 and 2023, DHCAC spent more money than it could generate from revenue sources,” the report said. “Although the DHCAC audit report for the year ending 2024 was not available, officials told investigators that in 2024, the entity experienced financial difficulties in meeting the employees’ payroll obligations and meeting the required reimbursements for travel expenses, further indicating a pattern of recurring and increasing operational deficit.”
The former executive director is accused of using the organization’s credit card for more than $256 in personal purchases at Florida’s Walt Disney World Dolphin Resort. He attended a conference at the resort that was paid for by the Davis House, the report said.
The comptroller’s office could not find any evidence that the purchases were repaid to the organization. The former executive director wrote a check to the organization for fuel and personal purchases, according to the report.
Other questionable charges include more than $1,000 spent at L.L. Bean for what was labeled “staff Christmas gifts” and a $70 charge to a beauty salon, which was described as a gift to an employee and recorded as “Employee Goodwill.”
The records also show purchases for entertainment, alcohol and restaurants, according to the report.
“DHCAC officials told investigators that purchases at restaurants and for alcohol were for donors, board members, visitors, and employees during meetings, events, or fundraisers,” the report said.
The comptroller’s findings were forwarded to the local district attorney’s offices.
The Center Square was unsuccessful prior to publication of getting comment from the organization.
“It is essential that nonprofit organizations with public funding operate transparently and within clearly defined financial policies,” said Comptroller Jason Mumpower. “Proper oversight by the Board of Directors and documentation help prevent wasteful spending, protect the organization’s mission, and promote public trust.”
