After the Conviction, a Need for Controls : * Trial of Shelter Program’s Ex-Director Shows Critical Need for Financial Oversight

At a time when the number of homeless in Orange County has grown dramatically, the embezzlement conviction of the former executive director of an Irvine organization established to help those without shelter is especially troubling.

A Superior Court jury last week found Clyde E. Weinman, former executive director of Irvine Temporary Housing, guilty of 13 charges of forgery and grand theft. He could be sentenced to eight years in prison and fined $200,000.

Prosecutors said Weinman netted more than $400,000 in funds that were intended to help the homeless. Weinman claimed that he put $65,000 of his own money into the nonprofit agency to keep it afloat and was forced to forge checks to himself to cover his own bills. He contended he was a scapegoat for poor management by others.

He is right about poor management. The judge in the case said the agency was run “very shoddily.” Someone at the agency or on its board of directors should have spotted the discrepancies much earlier. Weinman joined Irvine Temporary Housing in 1989 and was arrested in November, 1992.

Weinman’s arrest proved a setback for the housing agency, which was founded in 1985 to find short-term shelter for the homeless in the Irvine area. Potential donors were understandably upset about the allegations and demanded an audit. That scrutiny showed no evidence that federal funds had been misused, and as the months went by, some donors have again helped the agency.

The city of Irvine assisted too, providing Irvine Temporary Housing with $82,000 and four condominiums last year. City officials wisely promised to continue to keep an eye on the charity’s books and urged the agency to improve its financial controls and accounting practices. Another boost came from more than a dozen contractors, who helped refurbish two of the more than a dozen units the agency uses to shelter the homeless after it said it lacked the money.

The Homeless Issues Task Force reported recently that an estimated 12,000 people were homeless in Orange County, an increase of 20% over the estimated number only two years ago. Anywhere from 30% to 50% of the homeless are thought to be children. As many as 40% may be mentally ill. Public agencies and citizens need to provide more resources to help the homeless, with shelter, training and jobs. But agencies like Irvine Temporary Housing must be prudent stewards of the funds they receive, and make sure they are spent the way donors intend.