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Organization ordering independent audit, adopting stricter controls to protect funds

Chagrin Falls, OH (January 10, 2019) – The Chagrin Valley Jaycees (CVJC) filed a police report after an internal review unveiled accounting discrepancies and missing funds. The organization’s new treasurer, who is also a certified public accountant, discovered the irregularities as part of his transition into the new position in December. CVJC immediately launched an internal investigation that revealed money had been misappropriated over the past eight years. 

The Jaycees reported the findings of the investigation to the Bainbridge Police Department, who has requested that no further particulars be publicized so as to not interfere with their investigation.

“We are all shocked and deeply disappointed that something like this could happen.  The revenue of the CVJC is annually donated to local charities for the direct benefit of the people in the community we serve,” said Matt Michalek, CVJC president. “This feels like a betrayal. We will do everything within our power to get to the bottom of this, and to put systems in place to make sure nothing like this ever happens again.”

The organization is hiring an accounting firm to conduct a full forensic audit.

The Chagrin Valley Jaycee Charitable Foundation, a separate nonprofit fundraising arm of CVJC, also retained outside auditors. Their investigation revealed that the Foundation’s finances were not impacted by the theft.

Michalek said that corrective action still is being formalized but the CVJC board will take a more active role regularly reviewing bank statements and that the use of a debit card will be eliminated. 

“We intend to cooperate fully with the police throughout their investigation, and we intend to seek restitution of every cent stolen from our organization,” said Michalek. “Despite this loss, we want people in Chagrin Falls to know that this issue will not impact any of the community events we have planned for 2019, including our annual Distinguished Service Awards Ceremony on February 20, where we distribute the annual Blossom Time proceeds to local charities.”