Encompass staff asking where $460,000 bequeathment went as administrators step in
Four years ago a reported $460,000 was left to the now beleaguered disability service provider Encompass. Staff want to know how the money was spent.
Geelong
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Almost a dozen Encompass Community Service employees want to know how a reported $460,000 bequeathment left to the organisation was spent before it went into voluntary administration this week.
Questions about the money were outlined in a letter, obtained by the Geelong Advertiser, and sent to Encompass management last week.
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The money was reportedly left to Encompass in 2018 with a caveat it be spent at the organisation’s Leopold farm, where people with a disability participate in day programs.
The letter, from staff to chair of the board Alyson Miller and its finance director Amanda Wilkens, also raised deep concerns over allegations of mismanagement, ongoing failures, a lack of transparency and corporate waste. Concerns were also raised over an audit of staff pay.
On Thursday, the Geelong Advertiser contacted Encompass about the bequeathment and the future of its services – which have run since 1985 – but was told “no comment” when it called the organisation’s headquarters.
Encompass supports about 1000 people and has about 300 employees.
Geelong disability organisation genU will assist Encompass while administrators look into Encompass’ finances.
Administrator Scott Andersen from Worrells, appointed on Thursday, said his team wanted to get the best result for Encompass clientele.
“The Worrells team are particularly cognisant that some of the clientele are from vulnerable parts of the community and are therefore doing everything possible to ensure the best result for the clientele and other stakeholders,” Mr Anderson said.
Mr Andersen said Worrells would contact staff about entitlements.
“Under voluntary administration, a first meeting of creditors is held within eight business
days of the appointment, and a second meeting of creditors is usually held within 20 to 30 business days after the appointment.
“It is at the second meeting that creditors will determine the future for the (Encompass).”
Meanwhile, the letter to Encompass from workers asked how the bequeathment had been used by the organisation.
“The donor made the specific request that the funds would be for a new building to improve The Paddock facilities (at Leopold) and increase its capacity to give participants better opportunities and outcomes,” the letter read.
“The (2018 financial performance statement) notes an amount of $220,244 under donations and bequests.
“If this sum relates to the $460,000 bequest, it leaves the question of what has happened to the balance of that donation, and where the explanation is in the document.
“This donation is well known amongst various divisions of Encompass.”
The letter alleges The Paddock has yet to benefit from the money.
Encompass general manager Jacinta Wells, chair Alyson Miller and chief executive Elaine Robb were also approached for comment but didn’t respond by deadline.
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Originally published as Encompass staff asking where $460,000 bequeathment went as administrators step in