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Wednesday, December 13, 2017

Despicable Her: CEO's Huge Raise While Agency Fails.

Credit: Joshua Allen
The Business of Child Abuse

Despicable Her: Jefferson Memorial Homes allows CEO 58% raise despite huge debt, missed payroll taxes, and a negative net worth. Grab the money while it's still there.

The Business of Child Abuse

Dr. Cecilla Jefferson, the founder and executive director of Fred Jefferson Memorial Home for Boys, received almost a 58% pay raise from the years 2009 to 2010.

The inordinate pay raise took place despite large operating losses, huge tax liabilities and negative net assets. The most recent county audit suggests the agency may not have a way to pay back their debts.

The executive directors salary increased from $126,000 to $199,215 in 2010. An increase of over 58%. Cecilia Jefferson’s salary in 2011, is listed as $180,284.

Yet, during this time period, Jefferson Homes had operating losses amounting to $240,000 and $84,359 respectively.

More concerning, Jefferson Memorial Homes had $630,997 in delinquent taxes, penalties and interest, from unpaid payroll taxes in 2006, and 2010.

For good measure, county auditors also documented $48K in unallowable expenses, and negative net assets amounting to $582,971.

“Since FJM had negative net assets and no reserves, it is unclear how the Agency will repay its liabilities or offset future operating losses.”

A copy of the 2009 (990) tax filing, can be seen here. The 2010 tax filing is here.

(Pg. 7 for salaries), And the auditors review of Jefferson’s fiscal operations dated March 13, 2013 is here.

On her linkedin page, Dr. Jefferson lists herself as the owner and CEO of Fred Jefferson Memorial Homes since 1989, and she has a PhD. In Social Clinical Psychology.

The question is this. How long can Jefferson Memorial Homes continue operating, when total liabilities are almost double its net assets?

Why did board members, as well as the executive director, acquiesce to such a large pay raise? Especially when this non-profit is managed so incompetently?

The last thing one should expect, after mismanaging a place into the ground, is a large pay raise, totaling almost 60%.

As the summary of findings notes:

“We initially advised DCFS of FJM’s financial issues on December 23, 2011, so that DCFS could monitor FJM, and ensure that service quality is maintained.”

The Financial Corrective Action Plan (FCAP), makes note of two fundraisers the agency plans, as well as an “…in depth cost analysis with potential downsizing in staff and services.” While, “…ensuring the agency continues with an “adequate level of care.”

Foster children can breathe a sigh of relief…It's what they have always wanted in life, an “…adequate level of care.”

But does anyone find this a bit obscene? Don’t places usually cut back, when liabilities are so large? Doesn’t any business or non-profit cut back, when their ability to survive is seriously in doubt?

And from this, they want a fundraiser?

It is like a sinking ship, with everyone trying to get as much gold and treasure to dry land, before the agency…err boat, plunges down to certain death.

When the county makes temptation this easy, when the bar is so low, shouldn’t we still expect more? Even if it is not illegal? You can't make this stuff up.

This is money for abused and neglected children. It adds up to quite a bit. And since when can you owe the IRS big time money like this, and still give yourself almost a 60% raise?

What's the rationale? It's my turn now?

Let us imagine the fundraiser. Because a fundraiser is one of FJM's proposals for paying off their debts. View the self-congratulating speeches: The pleas for cash, all for the benefit of the “children!”

Watch the, oh so moving, fundraising presentation, by the ‘model,’ foster-teen, who is brought on stage to elicit a few tears, as she extols the spiritual aspects of charitable giving. We have all seen it.

Left unsaid at this fundraiser, the extra $193,000 paid over just 3 years, which went to the boss, (instead of the abused and neglected children), in the form of a raise.

And left unsaid at this fundraiser, the unpaid payroll taxes, penalties, unallowable expenses, and fines, amounting to hundreds of thousands of dollars, which, according to the county, the agency “seems to have no way to pay back.”

That is, unless, you want to donate the extra half-million plus you may have gathering dust somewhere, in the back of your sock drawer?

Should you want to contribute, you may donate here, or here.

So please, oh please, do it for the children. They are so desperately in need of our help.

Because it’s all about the children.

Or not.



About the Writer

joshuaallen is a writer for BrooWaha. For more information, visit the writer's website.
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2 comments on Despicable Her: CEO's Huge Raise While Agency Fails.

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By Shaun Gibson on August 01, 2013 at 08:09 am

More greed, more lies, more people in suits living the good life while people die. Corporate greed at it's finest. Sadly..

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By joshuaallen on August 01, 2013 at 02:16 pm

Dr. Jefferson probably started out with the best intentions. But when a system lets you pick and choose your own salary, the temptation becomes too great. This agency will probably go bankrupt, and it seems like she wants to 'get hers,' before it does. I get mad, when I think about all the things that money could provide to the abused children. I get mad, because the county doesn't seem to care... Thanks for your comment.

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