Friday, 03 May 2024

LCCAA board continues internal restructuring efforts

LAKE COUNTY, Calif. – The board of directors of the Lake County Community Action Agency (LCCAA) is continuing work to restructure the struggling nonprofit and get a clear picture of its finances in the wake of closing down most services and furloughing employees last month.


Facing unpaid back federal payroll taxes, back rent, unpaid vendors and myriad other problems which have been largely attributed to funding cuts, the nonprofit board's 10 members are continuing to take a hand in trying to put things back together, LCCAA Board President Tom Jordan said Thursday.


LCCAA has been a hub for many critical services for the county's most economically challenged – from food cupboards and food commodity distribution programs, to drug and alcohol counseling services, a teen safe house and youth drop-in centers, a transitional homeless shelter and domestic violence education, and more.


But much of that came to an abrupt halt in February. Jordan said in a previous interview that the board became aware of “weak internal governance systems” at a regular Feb. 10 meeting. The following day an emergency board meeting was held, at which it was concluded that employees had to be placed on immediate furlough and programs closed down.


Since then, the board – which previously met about once a month – is meeting more often as Jordan said they try to get LCCAA back on its feet, which he said is a “slow and painful” process.


“We have not made the progress we were hoping to have made by now with respect to understanding our finances,” he said. “The records we have still are not sufficiently clear and complete to help us have that understanding.”


So he said the board is “slogging away” to try to put things together.


“We have accessed records but we think the records may not be complete,” he said. “That's what we're trying to determine.”


He added, “I wish it was more progress. We all do.”


LCCAA's reorganization process ultimately will include determining staffing levels and what services will be offered going forward, Jordan said.


However, he said making those final decisions are still in the future.


“We're still just at step one, what is the true financial condition of the agency,” he said.


As for dealing with the Internal Revenue Service, Jordan said, “Our commitment to the IRS is to pay all future payroll taxes.”


The next step, he said, is to figure out how to pay the nearly $100,000 in unpaid back federal payroll taxes.


He said Thursday that the employee furlough remains in place with an “unknown time to return.” Because the furlough is considered indefinite at this time, he said it's the board's understanding that employees would be eligible for unemployment benefits.


Jordan said a discussion of layoffs hasn't so far taken place.


Some staff members – including Executive Director Georgina Lehne – are assisting the board with identifying program activities that the board doesn't fully understand, said Jordan. Employees also are helping the board understand the invoicing process so bills can be paid.


Jordan said they're trying to figure out what bills they can pay, identify expenses – including unnecessary ones – and discern how much is owned and to whom.


The board has received offers of volunteer help to assist with the reorganization, and also has appealed to Cal/Neva Community Action Partnership and North Coast Opportunities for help, he said.


Jordan said Cal/Neva has agreed to pay for staffing and training to help the agency remain active and to maintain or bring back essential community programs once the restructuring is finished.


But those actions by Cal/Neva aren't something Jordan said the board sees taking place immediately.


Empire Food Bank has helped pay for key personnel to staff the county food bank program and maintain its continued operation, he said.


In addition, Jordan said the California Human Development Corp. has provided consultants and Catholic Charities also has offered some assistance.


Jordan said many people have been hurt by the closure of so many essential community services. “But I am extremely proud of the dedication and commitment of the board member volunteers who have stepped in with a lot of personal sacrifice and integrity to maintain this agency.”


He also thanked the many community members, former employees and service organizations who have volunteered their time to make the reorganization effort successful.


Jordan said the group has a tentative meeting at 1 p.m. Thursday, March.


E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow Lake County News on Twitter at http://twitter.com/LakeCoNews , on Facebook at http://www.facebook.com/pages/Lake-County-News/143156775604?ref=mf and on YouTube at http://www.youtube.com/user/LakeCoNews .

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