ESCONDIDO: County terminates contracts with St. Clare's

Nonprofit vows to overcome financial troubles

By DAVID GARRICK - Staff Writer | Tuesday, April 15, 2008 8:52 PM PDT

Michelle Whitker holds her daughter, Gabriella, 1, in their room at one of Sister Claire Frawley's homes in Escondido. County officials have terminated their contracts with Frawley's agency, known as St. Clare's Home, after an audit found financial difficulties.
Sister Claire Frawley talks with Michelle Whitker and her daughter, Gabriella ,1, who live in one of Sister Claire's homes in Escondido on Tuesday.
Sister Claire Frawley and Michelle Whitker and her daughter, Gabriella,1, stand in front of the home where Michelle and her daughter live in Escondido.

ESCONDIDO ---- County officials have terminated all of their contracts with St. Clare's Home, citing an audit this winter that they say found significant financial mismanagement at the nonprofit organization.

St. Clare's has had difficulties before. In 2006, Sister Claire Frawley, who founded the agency in 1983, was temporarily ousted by the board for similar reasons before regaining control three months later.

Frawley said Tuesday that county officials had exaggerated the financial problems. She also said that St. Clare's was on the way to fixing some accounting problems discovered during the previous audit in 2006.

The lost contracts have prompted St. Clare's to lay off case workers and to eliminate its program geared for people suffering from alcohol and drug addiction, but Frawley balked at speculation that losing the county contracts would cripple St. Clare's.

Frawley said she recently launched a fundraising campaign to allow St. Clare's to continue serving about 100 domestic violence victims and homeless people at its seven safe houses.

Six of the homes are in Escondido and one is in Vista.

The county contracts made up $227,000 of the agency's roughly $2 million annual budget. The remainder of the budget comes from donations and state and federal contracts.

The county's decision comes 19 months after an audit found that St. Clare's inappropriately used county funds to help pay Frawley's salary and benefits, and that it did not properly verify some bills submitted to county agencies

County officials said they chose not to terminate the contracts at that time, based partly on promises from Frawley that the agency would reform itself.

On Tuesday, county officials released a long list of more recent financial problems at St. Clare's.

Those problems include failure to pay 70 percent of its bills on time, inadequate cash flow, significant turnover in employees, and not submitting county invoices between November 2007 and March 2008.

County officials said St. Clare's also failed to meet a Jan. 14 deadline to submit a plan for recovering from its unstable financial situation and develop stronger internal financial controls.

Frawley blamed many of the recent problems on new accounting procedures and new accounting personnel that had created confusion. She said county officials had exaggerated the amount of staff turnover at St. Clare's, and she said many of the financial documents had been sent to the county on time.

"Many times, one county official will receive documents and other county officials have no idea the documents have arrived," said Frawley.

Frawley said that termination of the contracts might force a small number of the 100 patients in the early stages of drug or alcohol recovery to leave St. Clare's. Frawley said no other St. Clare's residents would be affected.

County officials began looking more closely at the agency's finances after three board members ousted Frawley in April 2006. The board members alleged fiscal mismanagement at the agency, and county Supervisor Pam Slater-Price asked for an audit.

Frawley was reinstated three months after her ouster. But John Weil, chief of staff for Slater-Price, said Monday that Frawley had failed to use the 19 months to fix the problems.

"Apparently, they've never been able to right the ship," Weil said.

Frawley said her agency's financial problems were primarily the result of a major donor's death and "wasteful spending" during her three-month absence, when the agency was run by the people who had ousted her.

Frawley said she was hopeful this winter that county officials would be patient with her efforts to overhaul the agency's accounting procedures.

"I gave them all kinds of explanations and told them we were turning it around," Frawley said.

Frawley said she was notified in March that an $83,000 annual county contract for "supportive housing" would not be renewed. Last Friday, county officials informed Frawley that they were terminating the $144,000 annual contract for alcohol and drug services.

The alcohol and drug addiction programs will be transferred to North County Serenity House in Escondido, county officials said.

Two of the six Escondido safe houses have been geared for people recovering from drug and alcohol addiction, and Frawley said they will be revamped to serve the same function as the other four: transitional housing for domestic violence victims and the homeless.

St. Clare's will temporarily have to reduce the number of people it serves, through attrition, from about 110 to about 80 because two out of five caseworkers were laid off after the county terminated the contracts, said Frawley. Total staff has been reduced from 45 to 40 this year, she said.

But Frawley said she has high hopes for 1,300 mailers recently sent to potential donors. Frawley said more than $50,000 poured in quickly after she was reinstated as executive director in summer 2006.

"Our plan is to continue," said Frawley. "This is a plea for people to help."

Jerry Van Leeuwen, director of community services for the city of Escondido, said Monday that city officials were disappointed to see a local nonprofit lose crucial contracts.

Van Leeuwen said he was hopeful St. Clare's would survive, but he also said it would be relatively easy for another agency to take over the role of providing transitional housing. The drastic downturn in the housing market has sharply increased the availability of homes that are appropriate for such programs, he said.

Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.

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Dopeless Hope Fiend wrote on Apr 15, 2008 2:47 PM:How sad. With the amount of addiction and abuse going on in Escondido and surrounding areas, this is a huge loss for women who want to get help. I know first hand the need for these types of services. They saved my life. I am a recovering drug addict who was homeless. Through the help of agencies like St. Clare's and the generosity of people who donate to them, I got the help I desperatly needed. I hope no woman in need suffers because of this. St. Clare's and staff--you're in my prayers.

Zephon wrote on Apr 15, 2008 7:09 PM:We do not put enough emphasis on those with a mental disorder such as substance abuse. Frequently related to other disorders.

This is a measure on the success of America as a society. We are so quick to judge others and we still do not take care of our own.

A sad day indeed.

It is very sad wrote on Apr 16, 2008 7:30 AM:However, if Frawley would have done what she needed to during the 19 months they gave her then there wouldn't be an issue.

Julie wrote on Apr 16, 2008 10:11 AM:Not a sad day after all. Domestic Violence, drug abuse, and homelessness especially when children are involved is not an issue to take lightly. The County is making sure that programs like St. Clares Home really do offer the necesssary services to help those in need. If those needs are not being met by an organization, than funding should be allocated to those programs that are successful and will continue put those funds to good use. These programs should offer the services necessary to rehabilitate those in need, and give them the opportunity to live a normal, successful and happy life. The County has given St. Clares Home many chances to get it together, and has failed. Thank You Pam Slater and the County for staying on top of these programs to make sure that our tax dollers are put to good use.

Founder's Syndrome wrote on Apr 16, 2008 11:40 AM:It's an unfortunate, yet real side-effect of success for some small non-profits.

greeneyes wrote on Apr 16, 2008 1:48 PM:I hope places like these stay open. I've seen first hand how hard it is for a woman with or without children far away from family in need of shelter from abuse.

Christine wrote on Apr 16, 2008 2:01 PM:Great article...well written!

Sad story but unfortunately
compassion does not eliminate
accountability..especially when
tax dollars are involved.

Thank you, NCT and Mr. Garrick!

Hopeful wrote on Apr 16, 2008 2:04 PM:As a past employee of SCH I am pleased to hear that Pam Slater followed up on the agency and understands the concern that was voiced 19 months ago. While the effects of pulling the contracts may be immediately hard on the women and children that need the most help, ceasing funding is the only way to help this program become what it has the potential to be. Without proper management and board leadership, this agency will continue to spiral downward. I only hope that St. Clare's does not continue to run as a dictatorship and can be taken under someone’s wing that is competent and selfless. Optimistically, this can be seen as a positive move to provide more resources to women and kids in the future, and not such a sad day after all.

Jane wrote on Apr 16, 2008 4:27 PM:For any agency to function well, there needs to be a united front; not a dictatorship. Until Ms. Frawley can accept ideas from others, her wonderful charity will one day collapse. Those who need what the charity has to offer are victims twice. Hopefully, this is a wake-up call for Ms. Frawley.

Gilb wrote on Apr 16, 2008 5:06 PM:I only know that if were not for St. Clair's being there with the services they offered I don't know where my daughter would be today. It has changed her life which in turn has changed the lives of her girls and mine all for the better. I hope St. Clair can pull through and keep on doing what they are doing. I personally thank Sister Clair Frawley.

Father Compassionate wrote on Apr 16, 2008 5:37 PM:Sister Clair is not a Saint!

Who's exaggerating..... wrote on Apr 17, 2008 8:04 AM:Shame on you Sister Claire.....this article hits the nail on the head. Please quit blaming the county, your accounting department (past and present) and other staff members. High turnover in your staff over the past 10 years especially in your accounting department was due to employees not wanting to comprise their integrity, you knew that you were in the wrong and you wanted others to take the hit, when they refused you got rid of them, or they resigned. Any board member who questioned you or had any good ideas you got rid of. Last April St. Clare's had a real chance of getting back on its feet, unfortunately you came back. If you REALLY CARED about the women and children....you would have listened to the people who loved working with the agency and wanted to see it flourish. I don't even want to get started about your biggest donor......you used and exploited her generosity, she was a wonderful person and she did so much for you. I pray for the women and children at your agency, I truly hope they get the help they need.

Jenna wrote on Apr 17, 2008 11:21 AM:To me, it's a red flag when a nonprofit becomes synonymous with its leader, because it's about the clients after all, not any one employee. For the sake of the agency's clients and future services, I hope that there are some leadership changes made at St. Clare's.

Where is the Board??.... wrote on Apr 17, 2008 2:23 PM:We have not had any statements from the Board of Directors, what do they have to say about all this? I cannot find any contact information for St. Claire's Home Board of Directors. Am I mistaken, or are all Non-profits goverened by a Board? If so it sounds like they need to hire a new Director...and FAST, if they are going to try to save this organization. This should not have gone on this long in the first place..I have heard about conflicts going on at St. Claire Home for over 10 years now..Enough is enough already.

Time has told wrote on Apr 17, 2008 3:01 PM:Seems like there is a lot of blaming going around by Ms. Frawley and no responsibility.
Too bad the previous board couldn't keep control when they had it. All those people who backed Ms. Frawley then...I wonder what crow tastes like?

To Where is the Board? wrote on Apr 17, 2008 3:02 PM:Claire Frawley was reinstated as the executive director. That should answer your question as to why there is no forthcoming information

It was a matter of time. wrote on Apr 18, 2008 9:35 AM:I am another former employee of St. Clare's Home. Ethics and integrity did not exist at St. Clare's Home during my tenure, if ever. The financial mismanagement was mind blowing to say the least. Many thanks to the County of San Diego and Pam Slater-Price for taking the necessary steps to put the tax dollars to better use. Too bad Julie, Brenda, and Linda were "ousted" by an incompetent judge. This would not be happening had these women been allowed to continue managing St. Clare's Home. What a shame.

To where is the board wrote on Apr 18, 2008 10:58 AM:The current board, if there is one, was probably hand-picked by Ms. Frawley and it's members wouldn't dare make comments to or about Ms. Frawley for fear of being retaliated against. I believe the County of San Diego and Pam Slater-Price, made a wise decision not to support this current regime.

Here's the facts... wrote on Apr 18, 2008 11:19 AM:Sister Claire was only re-instated because of the BY-LAWS, that was what the court hearing was for, the judge made a point to mention that if the proceedings were for the mangement of the company, the judgement would have been different. Julie, Brenda and Linda brought hope, integrity and the opportunity for success. It was a blessing when they were there. I applaud them for doing what was in the BEST INTEREST of the agency, they saw what was going on, questioned Sister and Sister didn't like it....

Re: Where's the Board wrote on Apr 18, 2008 8:41 PM:The board consists of six people, including Ms. Frawley. The by-laws were changed about 2 yrs ago to ensure she had total authority over any decisions or votes made by the board. Normally, a board is in place to provide checks and balances--to ensure the Executive Director is administering and managing the organization according to the org's mission and purpose, both fiscally and behaviorally. With the change in by-laws, that all went away.

The board did fight to do what it could to steer the organization back onto a path that would save it. It was thwarted every time. Members who were handpicked initially by Ms. Frawley were quickly removed as soon as too many questions were asked and too much was communicated to the other board members.

There is no saving this organization. It is in financial ruin and she doesn't see it. Women have been moved out of the program with the loss of the contracts. There are no counseling classes. There is no program. There aren't 80 women and most of the employees quit--not laid off.

There is no grasp on the reality of the situation. Because of that, unless someone can step in and take it over, there is no way it will be saved.

The effective part of the organization was its services and program for the women. There were some wonderful people who helped change and effect their lives for the better, while protecting them from the administrative chaos. I wish it could be saved because of the good it did.

Pulling the contracts is the right thing to do in this case. Now it needs the extra step of ensuring no one else is taken advantage of by being brought into the shell that is left. The right thing but sad to see such a beautiful service to those in need fall apart due to pride.

TO: RE: Board wrote on Apr 19, 2008 12:06 AM:Sister is in her own world. I agree as someone who is still in the agency, i have worked with some wonderful people. Sister is selfish and is only intersted in her control in the agency. It is no longer about the women for her, i dont know if it ever was. The agency wont be saved because she turns down every one who truly wants to help, because it would mean her loss.

Concerned for the Women Left wrote on Apr 21, 2008 8:51 PM: Research and ask the names of the current 3 case managers that Frawley states who still work there.

My Opinion wrote on Apr 22, 2008 1:08 AM:The paper seems to believe Frawley is telling them the facts. In my opinion the paper needs to talk to past employee's, present staff. There has been abuse galore.They are all talking.

Jenna wrote on Apr 25, 2008 10:04 PM:So what's going on now? Will there be any follow-up? Or, will we just hear about the dissolution of the agency in one of next month's papers?

re Jenna wrote on Apr 29, 2008 11:42 PM:I still want to know where the board is and how come the North County Times will not investigate facts and except everything Miss Frawley has stated as truth. I would like to know if there will be any follow up also. This has always been a problem when it comes to St. Clare's and the true facts have never come to light. I want to know what is happeninig to the women and children of this agency and if the are still under the care of staff and not Miss Frawley.

To Whom It May Concern wrote on Apr 29, 2008 11:51 PM:There is still an open investigation.

debi wrote on May 7, 2008 7:58 PM:oh boy I was SCH first paid staff member back in 1985. And was fired by Ms Frawley for asking too many questions about the girls finances. After I left the girls would call me to help them stand up to her because she was insisting that they owed her money. It was INSANE! From what I am reading it has only gotten worse. You would think that an agency with funding like they get would have more regulations rather then allowing her to continue to make excuses for EVERYTHING! She has stepped away from all that being a "sister" should stand for. SHe makes WAY more money then my husband and I put together, we are in ministry and have willingly sacrificed so that others could be served... she is all about herself. I like how she still seems to show up for the photo shoots when the news cameras are around!
UGH

pt wrote on May 9, 2008 3:57 PM: What goes around comes around. Many thousands have been helped through the years. He who is without fault throw the first stone.

RE pt wrote on May 9, 2008 4:47 PM: This lady who calls herself a "Nun" or "Sister" has sure been throwing a lot of stones at her staff, the women and anyone else who has crossed her path! When is it going to come around to HER!

to pt wrote on May 9, 2008 5:13 PM:Have you watched the cable commercial where they all set down in the staff meeting and have a blame Storming session? That was what it was like at SCH staff meetings. As an ex-employee I witness MS Frawely blame us left and right and humiliate us as much as possible.

It Seems to Me wrote on May 9, 2008 5:36 PM:That the 3 women were not alone in their troubles in trying to help the women and children of St. Clare's. Staff seem to still be struggling in the continuation of the misbehaving Nun. What can you do when a person holds a title like that in front of their name. Do you just ignore it until someone ends up dead. Is this when someone can step in, because the abuse and laws broken dosn't seem to be enough for anyone to interven. Can anything be done before we read something terrible in the news.

TO Seems to me wrote on May 13, 2008 7:58 PM:It is a sad state of affairs, isn't it? As long as Ms. Frawley holds onto the reins, there will be no more positive changes. She is power hungry; that is all she cares about. If someone gets badly hurt or dies a violent death, it won't matter. I wish the three board members who took control of Saint Clare's House were in a position to take control again. They were not in it for the power; they were trying to save the organization. Unfortunately,some lessons are learned the hard way and people get hurt along the way.

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