Big Brothers Big Sisters to pay $1.6M for violating rules on grants
Big Brothers Big Sisters of America Corp. has agreed to pay the federal government $1.6 million for violating regulations that guided three grants it received from the Justice Department.
Big Brothers Big Sisters of America Corp. has agreed to pay the federal government $1.6 million for violating regulations that guided three grants it received from the Justice Department.
Big Brothers Big Sisters, a nonprofit that provides mentoring services to boys and girls throughout the United States, was headquartered in Philadelphia at the time the grants were received between 2009 and 2011. It is now based in Tampa, Fla.
"They knowingly said they had financial management systems in place to monitor use of funds, and those systems were in fact not in place," said Joel Sweet, assistant U.S. attorney in the Eastern District of Pennsylvania. He characterized the agency's actions as "reckless and more than negligence."
Specifically, the Office of the Inspector General in the Department of Justice contends that Big Brothers Big Sisters commingled federal grant funds with general operating funds, among other problems, according to a resolution released Thursday.
In a statement, Big Brothers Big Sisters officials acknowledged they made an agreement with the Justice Department to pay the $1.6 million.
"The agreement resolves and brings closure to outstanding issues related to the organization's administration of three DOJ grants," the statement read.
Agency president and CEO Pam Iorio added, "We recognize that an important part of meeting the mentoring needs of America's youth is to be exceptional stewards of any and all funds entrusted to us."
The $1.6 million will be paid from the proceeds of the sale of the former Philadelphia headquarters, 230 N. 13th St., Iorio said.
As it happens, the building sold for a little more than $1.6 million, according to a Big Brothers Big Sisters spokesman.
The grants were used to reduce juvenile crime and support tribal youth-mentoring programs.
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