State seizes books of Holt foster-parent organization

Source: www.mombu.com

Publication date: 26 January 2004

Monday, January 26, 2004

By The Associated Press

HOLT -- State authorities are investigating the possible embezzlement

of state funds by an association that for more than 20 years has

trained thousands of foster parents.

Investigators from the Family Independence Agency searched the Holt

offices of the Michigan Foster and Adoptive Parent Association and

seized financial records relating to millions of dollars in contracts

with the FIA. Also searched was the Holland home of MFAPA Executive

Director Myrna McNitt, former juvenile-court administrator in Allegan

County.

McNitt said she expected the organization to be cleared of wrongdoing

but declined to comment.

"You need to talk to the FIA," she told the Detroit Free Press for a

Monday story. "We're looking for a positive outcome with the FIA."

FIA spokeswoman Karen Smith said a recent review of MFAPA's overall

contract "found unacceptably high administrative rates" that led to an

investigation by the Office of the Inspector General and the Michigan

State Police.

Under a $2.7 million contract with the FIA in early 2003, the MFAPA

held two training conferences per year. The contract was later reduced

to $1.8 million because of state budget cuts. It ended Sept. 30 but

was extended on a monthly basis until December, when it was

terminated.

A state-police spokeswoman confirmed an ongoing investigation but

declined to comment further.

Organization officials sent an e-mail to board members Thursday saying

three FIA officials and the state police arrived at the Holt office

about 10 a.m. Thursday with a search warrant.

A former MFAPA financial officer said he resigned from the

organization in December because he could not find out how the group's

money was being spent.

Gerard Matt said FIA auditors came to the MFAPA in October to review

the organization's books for 2002 and 2003 but that he could not

locate the records.

"Being the financial officer, I should have access to the books," Maat

said. "It was hidden. This is part of the problem that I had."

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