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concerned201

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My jurisdiction is: New Jersey

I attended an open forum regarding the HS Ice Hockey program in my town. Found it very interesting especially with the President of this association. Apparently through-out the year, one parent has requested to see the "By-Laws" since this sport is funded mostly by the parents-the BOE pays for transportation to and from games/practices as well as 3 coaches (just giving some insight...) Parents pays from $1000 (For taxi squad) or $1500 (JV or Varsity).

First the president said the following
(A) We have two accounts one for Youth and the other for HIGH SCHOOL--(B) the association hasn't filed any taxes since 2000; org was founded in 1999(C) the town gives a yearly stipend to the association for ONLY for the youth of $20,000 or $15,000 and cannot be used for HS Students.
(D) Bylaws she said pertain to the association are bogus...apparently in one of the pages it states we give $$ to hospitals, charities, hospital staff and patients..etc...
(F) She then mentions that when the HS are low on funds, she "funnel money."

One parent requested to see the financials and realized that the books are a mess...the stipend money given to the youth is also paying for some high school events and the annual dinner is 90% paid from the stipend; coaches gifts, miscell. items which are not explained.

When some parents requested for her resignation as well as the board since they know what they're doing is not right; she and the board took offense and said she is not willing to give further information. As to the by-laws she somehow manage to say "those bylaws were written before she took office, ps...she's been in office for the past 7 years." She stated that she is the following--President, Chairperson, trustee...which we know she only can be one. Parents want to make it right--but of course those parents are "trouble parents."

My question is:
What can be done? Can we ask the town to audit these books? Should we contact the director of the recreation center who gives the stipend and asked him to have the town audit? She will not let anyone see the books or step down since WE all know what she is doing is not right.

Since this is a HS program that is mostly funded by the families that are involved. We wanted to see the bylaws so that all parents that would be putting cash on the line would understand that this is a varsity sport that falls under the leadership and guidelines and it is NOT a private club that exists only to provide for a couple of players/parents.
 
What kind of organization is this Ice Hockey program? We are talking about a 501(c)(3)? Who are the board members? This sounds like there could be gross negligence and/or fraud. What is the board doing?
 
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