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State Agency Auditing Nonprofit Over Grant Use
posted 11/26/09 3:08 pm
Channel 7 News - State Agency Auditing Nonprofit Over Grant Use
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Little Rock - A state agency is conducting an audit of a nonprofit run by a Conway alderman amid concerns about accounting practices used involving a $450,000 substance-abuse prevention grant.

The Quality of Life Council administers the grant. The group's president and chief executive, Conway alderman Jim Rhodes, acknowledges there has been sloppy bookkeeping but says he has not embezzled public money.

According to Arkansas Democrat-Gazette interviews, copies of public documents and recordings of public meetings, state officials have questioned whether Rhodes' bookkeeping practices broke state laws.

Even before the audit conducted by the Arkansas Department of Human Services is completed, the state has severed ties with the nonprofit. That's resulted in a temporary cut in funding for substance-abuse programs in Faulkner and Perry counties.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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