Milwaukee County to end $1.9 million in contracts with troubled nonprofit.
Milwaukee County’s Aging Department director recommends stopping funds to troubled nonprofit
Milwaukee County should not contract with UNISON for $1.9 million worth of services in 2019 after significant problems, including the arrest of the nonprofit’s CEO on allegations of misuse of funds, the county’s Aging Department executive director said.
Though Holly Davis just last week recommended approving the new contracts with UNISON in a discussion with County Board leaders, she explained her abrupt about-face in an email message Tuesday to county officials.
Davis cited new disclosures by UNISON officials over the weekend regarding “multiple significant deficiencies” in record-keeping as one reason for her decision to deny new contracts to the beleaguered agency.
The agency’s own finance committee had received a draft audit last June outlining serious problems with its records, but that report was not shared with county officials at that time, Davis said.
“Given the gravity of the situation, I am recommending that we not move forward with any UNISON contracts,” Davis said.
UNISON’s current contracts with the county for programming at five senior centers, nutrition site supervision and other services end Dec. 31. Several thousand county residents depend on those programs, according to online Aging Department budget documents.
For 2019, Davis last week recommended month-to-month contracts to UNISON for more than $1.9 million worth of services covering programs at three senior centers, supervision at 18 senior meal sites, coordination of respite care and community outreach for Alzheimer’s disease and other services.
A month-to-month approach was needed because of the absence of audited financial reports, Davis said at the time.
Tuesday’s decision to deny those month-to-month contracts for 2019 raises the question of whether certain programs might be closed for short periods in January as the county scrambles to hire new agencies to do the work.
“What is the plan then to ensure that seniors continue to receive the services that are in the contracts?” County Board Chairman Theodore Lipscomb Sr. said Tuesday.
In her email, Davis did not address that problem directly.
“Over the next few weeks, I ask your patience as we will find new options to
move forward with a high priority on minimizing gaps in service,” Davis said.
Lipscomb said he will reintroduce an amendment at Thursday’s County Board meeting to deny the UNISON contracts and approve several possible actions to provide the services. Those include awarding the contracts to other agencies; authorizing the county’s Human Resources Department to hire county workers for the jobs; or hiring temporary staff, including current UNISON employees, to do the work.
The board’s finance committee rejected Lipscomb’s proposal on Dec. 6 at the urging of Davis and approved the month-to-month approach she requested.
UNISON officials had testified to county officials last week that loss of the contracts would bankrupt the agency and force layoffs of more than 100 employees.
On Tuesday, the chairman of the UNISON board of directors, Robert De Vita, said the agency was gathering its leaders that afternoon to assess the impact of the unexpected announcement.
Laurene Gramling Lambach, the now-suspended CEO and president of UNISON, was arrested Nov. 20 by Milwaukee County sheriff ’s deputies.
A search warrant said a county investigation found “probable cause” that Lambach had committed “theft by fraud” by receiving $17,000 of grant money for computers that were never purchased. She has not been charged.