Nonprofit Faces Scrutiny Over Mishandled Funds and Questionable Practices

Orange County is demanding that a nonprofit group linked to a county supervisor's daughter return millions of dollars awarded in county contracts. The demand comes after the nonprofit, Viet America Society (VAS), failed to provide auditors and the county with sufficient information on how it spent the money or that it had completed the work it was hired to do: feeding needy seniors during the pandemic.

Uncovering Questionable Practices and Mismanagement of Funds

Failure to Provide Audit Trail and Comply with Federal Guidelines

The county's move to recoup the funds came after the auditing firm hired by VAS, Pun Group, informed county officials that the nonprofit "would not be able to provide sufficient information to properly complete the audit." The senior auditor from Pun Group also told the county that VAS "lacked internal controls, did not follow federal uniform guidelines," and did not have the necessary records to assemble an audit trail. This led the county to determine that the expenditures were "disallowed and are subject to reimbursement."

Questionable Transactions and Inconsistent Reporting

The county's letters to VAS also raised concerns about questionable transactions and inconsistencies in the organization's reporting. The general ledgers from May 2021 to May 2022 "included unexplained transactions that raise concerns of potential commingling of funds and questionable costs." Additionally, the performance reports submitted by VAS were "revised multiple times and the credibility of the reports submitted are questionable." The county also found discrepancies in the number of meals reported, with VAS initially claiming to provide 20,000 meals per month, but later revising the number to 10,000 without proper documentation.

Lack of Oversight and Accountability

The attorney for VAS, Sterling Scott Winchell, acknowledged that the organization's record-keeping could have been better, and that they were unaware of the "intense accounting" required for their work. Winchell also suggested that the county shared some of the blame for the lack of oversight, stating that the county "sat on its hands for several years and all of a sudden decided their hair is on fire." This raises questions about the county's role in monitoring the use of the funds and ensuring proper accountability.

Concerns over Nepotism and Conflicts of Interest

The county's demand for reimbursement also sheds light on the potential conflicts of interest surrounding the nonprofit. Orange County Supervisor Andrew Do, whose 22-year-old daughter Rhiannon Do was connected to VAS, had directed or voted to direct as much as .5 million to the organization without disclosing his daughter's involvement. While this practice is not currently against the law, a bill is being considered by state legislators that would forbid local officials from voting on contracts that would benefit their family members.

Ongoing Audit and Uncertain Future

VAS has hired another local company to audit its financial records, and the results of this audit are expected to be shared in about two weeks. However, it remains unclear whether this new audit will be able to provide the necessary information that the Pun Group was unable to obtain. Winchell acknowledged that the organization is weighing its options, and it is uncertain whether VAS will be able to repay the .2 million demanded by the county.The case of Viet America Society highlights the importance of transparency, accountability, and proper oversight in the management of public funds. As the investigation continues, it will be crucial for the county and the nonprofit to work together to address the concerns raised and ensure that taxpayer money is being used responsibly and effectively.