Detroit Public Library Accused
of Mishandling Grant Money
The former chief accountant for the Detroit Public Library has accused library administrators of mishandling an estimated $4.2 million in grants, endowments, and gifts to the library.
According to the June 11 Detroit News, David Gates, who was terminated June 7 for undisclosed reasons, does not allege theft or misspending but asserts that not including the money on library financial statements violates state compliance standards. “We don’t know the true balances of any of these accounts,” Gates said.
Gates reportedly uncovered the situation shortly after joining the library staff in January and charges that several attempts to change the accounting procedure were blocked by officials. In an April 12 letter to Deputy Director Sandra Clemons, Gates said he could lose his state license as a certified public accountant if he continued to let grants remain outside the $30-million general fund.
Library Director Maurice Wheeler said legal advisors have told him the library is handling the grants properly. He told the News “all the issues Gates brings up will be reviewed.” Meanwhile, the library board is expected to hire an outside financial consultant.
Posted June 18, 2001.
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