SRO Housing Embezzlement
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* No charitable organization wants to be the focus of a story like the one written on the embezzlement of funds from SRO Housing Corp. (Dec. 24). The harm is compounded fourfold by damage caused to the trust SRO has earned through over a decade of compassionate work with the homeless in Skid Row. It will take time to overcome the injury created by one dishonest employee.
However, the powerful lesson of the article should not be overlooked by other nonprofit agencies. People who work in nonprofits and serve on boards of directors tend to operate with high levels of trust. We find it hard to imagine that someone would deliberately steal from a charity. The experience of SRO and the abundance of stories in The Times regarding theft from other nonprofits should put that myth to rest for good.
Dishonest people will steal from anyone if we let them. Trust is fine, but there is no substitute for strong internal controls and regular oversight by outside auditors. The Arab proverb, “Trust God, but tie up your camels anyway,” speaks well to this issue. SRO learned the lesson the hard way and is well on the road to recovery.
BUD HAYES
Executive Director
SRO Housing Corp.
Los Angeles
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