By Ashley M. Casey
Staff Writer
While two former employees of the CNY SPCA await trial for allegedly stealing almost $700,000 from the nonprofit, other area animal shelters are making sure the same fate does not befall them.
Former executive director Paul Morgan and his girlfriend, former veterinary technician Taylor Gilkey, were charged with second-degree larceny in August. Morgan is accused of cashing 107 checks that he wrote to himself between 2011 and July 2016, totaling $475,000. He is also accused of writing 52 checks to Gilkey, totaling $217,000.
According to Onondaga County District Attorney William Fitzpatrick, Morgan and Gilkey spent the money on gambling trips to Turning Stone Casino Resort in Verona, as well as Las Vegas and New Orleans. Fitzpatrick said at an Aug. 26 press conference that there is a “very, very slight chance” the money will ever make its way back to the CNY SPCA.
“Ultimately, it’s the animals that suffer,” said Dee Schaefer, former humane educator for Wanderers’ Rest Humane Association in Canastota.
Like the CNY SPCA, Wanderers’ Rest is a 501(c)(3) nonprofit organization. Such charities are exempt from some federal taxes. Donors to 501(c)(3) organizations may deduct their donations on their personal income taxes.
“One may think on the outside that the executive director is the boss,” said Linda DeMuro, former executive director of Wanderers’ Rest Humane Association in Canastota. “I’m not the boss — I report to the board.”
While the director and the staff of Wanderers’ Rest handle the day-to-day operations, the board is the policy-making body of the organization and has total oversight of Wanderers’ Rest’s finances.
“Our board signs checks, so no checks will be signed without them knowing what it is,” DeMuro said.
At least one Wanderers’ Rest board member must sign checks; if a check exceeds $3,000, then two must sign off on it. Each month, the director gives the board a financial report including a QuickBooks balance sheet, profit and loss statements and a record of vendors who have been paid that month. Wanderers’ Rest undergoes an annual financial audit.
“It’s an extremely long process of pulling randomized financial documents, insurance documents [and] board meeting minutes,” said former office manager Denise Adams.
Wanderers’ Rest’s executive director and office manager each have a company credit card and the board of directors reviews the statements.
“We don’t understand how this went on for five years, because there are such strict guidelines in place,” Schaefer said. “Other agencies are just as confused.”
Kathy Gilmour, director of Helping Hounds Dog Rescue in DeWitt, said she is confident that Helping Hounds’ policies would prevent something similar from happening in that organization.
“Hopefully, everybody took a pause and looked at the checks and balances at their own systems,” she said. “Our systems of checks and balances were developed with outside auditing companies and CPAs. What happened at the SPCA can’t happen here.”
Gilmour said Helping Hounds relies on an outside company to do its bookkeeping, and the treasurer reviews regular accounting reports. There are two CPAs on the organization’s board, and only the president and treasurer can access funds.
“We have internal controls in place for every donation that comes in the door,” Gilmour said.
Gilmour said Helping Hounds takes donors’ support seriously and maintains safeguards to make sure the money is used wisely.
“We know this is people’s hard earned money. We’re pretty frugal with it and we’re pretty aware of the people’s generosity,” she said. “We don’t ever take that for granted.”
Helping Hounds is pursuing accreditation with the Better Business Bureau.
“Hopefully that gives an added assurance to people who are considering donating to Helping Hounds,” Gilmour said. “We’re really transparent and we work hard to make sure our integrity cannot be questioned.”
At Wanderers’ Rest, donors can earmark their funds for certain purposes and can even request to pay vendors directly so they know their money won’t be misused.
What’s next for the CNY SPCA?
As for the CNY SPCA, Interim Director Nick Pirro, who serves as the CNY SPCA’s treasurer, said the organization will begin its search for a new executive director soon.
“We’re working on new protocols for everything. When we bring in a new executive director, the checks [and balances] will be totally new,” he said.
Pirro could not comment on the pending investigation, but he said the previous executive director had total control over the payroll and books.
“There’s not a lot of people involved in the operation, which I think [contributed] to what happened … the way this was set up before with one person in total control,” Pirro said. “That will not happen again.”
Pirro said he has been corresponding with the director of the SPCA serving Erie County to discuss that organization’s protocols. He said other local shelters have been “willing to help out,” and the CNY SPCA’s volunteers and employees are an “amazing group of people.” Gilmour said Helping Hounds hopes to partner with the CNY SPCA to adopt out dogs.
“Helping Hounds has also stepped in in a hopefully positive way and reached out to the SPCA to see if there is a way to work collaboratively to move dogs into homes,” she said.
As for contributions from the public, Pirro said many people have donated pet food and other supplies and have taken advantage of the agency’s reduced fee to adopt cats.
“Meanwhile, we’ve still got a lot of animals. We’re getting a good response on the reduced price on the cats,” Pirro said. “We are in very good shape in regards to dog and cat food.”
Pirro said the public can visit the organization’s wish list at cnyspca.org/wishlist to see what items the shelter needs. He said the CNY SPCA is the only agency that handles animal cruelty investigations in the county and there are expenses such as payroll and utilities, so monetary donations are welcome.
“The most important thing is if you’re thinking of adopting an animal, come see us,” Pirro said.
Editor’s note: The Wanderers’ Rest employees quoted in this story are no longer with the organization. They were interviewed Sept. 1 before their departure.
