Alumni donation triggers tug of war at Herbert Morrison

Herbert Morrison Technical High’s failure to return a US$21,000 (J$3.2-million) donation from a United States-based alumni association has sparked controversy over claims the gift was unauthorised and that the non-profit group is now bankrupt.

The money was gifted to the Montego Bay school in 2019 by its Tri State Alumni Association’s former president, Racquel Grant, for the purchase of a bus.

But interim assistant secretary Althea Palmer and Dwight Meikle have insisted that the donation was not approved.

In a January 22, 2020, letter to school principal Paul Adams, the Karen Francis-led interim executive requested that the cheque be returned “immediately”.

“We apologise for any inconvenience caused but wanted to ensure you are informed that the above-mentioned cheque was not issued in good faith by the previous Tri State Alumni executive board,” read the letter, a copy of which The Gleaner has seen.

It said a two-thirds majority of members was not sought in approving the donation and that members were not informed about the plans to assist the school with the bus purchase.

Suggesting that the “unrepentant actions” threatened the viability of the organisation, the executive warned that legal action would be taken upon the completion of the financial audit.

In a response dated January 31, 2020, Adams noted that the situation had made him “very uncomfortable”.

Adams said he understood that the Tri-State and United States laws and regulations must be adhered to.

Further, he said that he had to ensure that the school’s integrity was protected and would seek to avoid further embarrassment.

“I am recommending in mutual interest that no further contribution be made to the school until the outstanding matter is settled,” Adams’ letter said.

Adams confirmed last Wednesday that the money was being held in the school’s account and emphasised that the process of returning the funds, as requested, was not a simple task.

He declined to respond to the claims made by Palmer and Meikle.

“The procedure to send it back is not as the person would have thought. Later on, that may be cleared up through regulatory procedure, because we have to be careful when a contribution is made for a specific reason.

“When we are returning money, it is has to follow a particular governmental protocol. So, all I can tell you now is that the money is in the school’s account,” Adams told The Gleaner.

The principal also declined to say if the process to return the funds had been initiated.

Palmer said that the money was to be used to refurbish the school’s home economics department, as well as to offset Caribbean Secondary Education Certificate exam fees and provide needy students with lunch money through the guidance counselling department.

“So, we have no money now. We weren’t able to pay CXC (Caribbean Examinations Council) fees since then. We weren’t able to buy any tickets for the students coming to Penn Relays. It’s the chapter in Fort Lauderdale that is doing that now because we are totally bankrupt,” said Palmer.

She said the donation saga has caused the membership of the organisation to plummet from more than 70 to seven.

Palmer said Adams had stopped responding to the interim executive.

Meikle, too, told The Gleaner on Wednesday that he spoke with Adams shortly after the money was transferred and requested that it be returned.

He said at that time, Adams noted that he would have to speak with the school board.

“It’s been years and I haven’t heard from him. The problem is, nobody knows where the money is or what has happened to the money. Nobody knows anything. ... We’ve tried. We’ve reached out. It’s just a bad situation,” Meikle said.

“I’m at the point where something needs to happen. It’s been a few years. We have kids who are suffering.”

An audit of the association’s financials, commissioned by the interim executive, concluded that the association was not being run in line with the protocols governing a 501(C)(3) organisation.

Section 501(C)(3) of the US Internal Revenue Code allows for federal tax exemption of non-profit organisations.

Any breach of that regulation could land the association in trouble with the United States Internal Revenue Service.

“The collection and disbursement of money was inconsistent with proper accounting principles and left huge opportunities for errors and/or misappropriation of funds,” the report said, noting, however, that there was no evidence of wilful misappropriation of funds.

“The executive committee drafted the existing by-laws document and they had the ability to change it at will. This is inconsistent with the standard procedures for a 501(C)(3) organisation. Such organisations are member driven and the membership has every right to know and/or approved major changes for the organisation,” it added.

It noted concerns that both US and Jamaican laws relating to the transfer of funds were broken, when the US$21,000 was taken to Jamaica “undeclared”. Funds amounting to more than US$10,000 must be declared at customs.

Grant told The Gleaner last Wednesday that the donation was approved by the then executive board.

She said the association operates on behalf of the school and noted that any funds generated belonged to the school.

Furthermore, Grant denied that the association was left bankrupt.

“That information is incorrect. When I took over the alumni association, they left US$200 in that account, and when I left it, I left US$700. So, I don’t know how that could deplete them when I got it with less,” she said, adding that she “built” the organisation.

The audit report said that the association had in its bank account on December 1, 2019, US$21,869, but noted US$21,000 was withdrawn a few weeks later when the executive was about to change.

“I used it for the school. They can tell you. You can contact Mr Adams. That US$21,000, I sent it directly to the school,” Grant said.

kimone.francis@gleanerjm.com