Investigation Defunct Hoke County Youth and Family Services

"After spending over $135,000 of the taxpayers' money, the organization is no longer in existence and cannot supply adequate documentation on how those funds were spent"

March 15, 2008

HOKE COUNTY NC NEWS -- State Auditor recommends the State Attorney General investigate the former organization of now defunct Hoke County Youth and Family Services. A recently released grant review found that the nonprofit did not keep adequate records, and it appears that grant funds may have been used by the former Executive Director for personal use which included ATM cash withdrawals shortly before the organization closed in June 2006. In addition, the nonprofit owed the State back taxes.

The State Auditor, Leslie Merritt said:

"Our auditors found only one client file showing activity after June 30, 2005, but accumulated two-and-a-half pages of questioned expenditures. It's clear to me that the grant's purposes were not being fulfilled."

"After spending over $135,000 of the taxpayers' money, the organization is no longer in existence and cannot supply adequate documentation on how those funds were spent. I highly recommend that law enforcement officials investigate whether these funds should be returned to the taxpayers for the public's use."

The Hoke County Youth and Family Services was founded in 2003 by former Executive Director, Raz Autry. According to Mr. Autry, the nonprofit organization was created at the request of a Hoke County Commissioner and the former County Manager, Bernice McPhatter, who is also the sister of the former Chairman of the Board of Hoke County Commissioners, Cleo Bratcher.

Hoke County Youth and Family Services received grants from the State Departments of Administration and Health and Human Services to assist domestic violence victims in Hoke and surrounding counties. The Office of the State Auditor further recommended that the State Attorney General review this information and determine whether legal action should be taken to recover the grant funds.