To a standing room only crowd of about 50, incoming Executive Director Sarah Weideman at the Nov. 13 Homer Senior Citizens board meeting provided a financial disclosure statement during her executive director report.

According to the report, the nonprofit is facing substantial debt from unpaid payroll taxes and unpaid invoices.

The financial disclosure follows the exit of the nonprofit’s previous executive director, Keren Kelly, who held the position for 13 years until she passed away in May of 2024 after a cancer diagnosis.

Homer Senior Citizens was incorporated in 1973 as a nonprofit organization to provide services for senior citizens.

Unpaid payroll taxes are estimated to be $643,000 and the unpaid invoices are estimated to be $350,000, with $25,000 past due to the community of Homer, according to Weideman. The nonprofit is now using Denali Consulting in Portland, Oregon, to conduct a financial audit of the organization.

Weideman prefaced the financial disclosure by sharing some of her personal business management strategies and thanked the crowd for entrusting her to take on the role of executive director. Then, she gave a few general comments on the state of the nonprofit using the military acronym VUCA, or volatility, uncertainty, complexity and ambiguity. This generally means that the state of the organization is unpredictable.

“We are currently in a VUCA state here and we have to negotiate through it,” she said.

Six weeks ago, Weideman began conducting a comprehensive assessment of the organization. This has included meeting current and past staff to gain insight on the financial infrastructure.

“While we have a strong foundation on our mission and values, our financial and operation challenges require immediate attention to be transparent. We face a complex situation financially,” she said.

She referred to the unpaid payroll taxes. “The amount, which may incur penalties and interest, is a significant liability, and addressing it is one of our highest priorities.”

The unpaid invoices have resulted in some difficulties with local vendors that have supported the organization over the years.

“Inconsistent billing practices have further complicated our financial reporting for FY 25. Our current fiscal year accounting entries are virtually nonexistent. The records from FY 24 are unreliable, making it difficult to gain a clear picture of where we stand,” she said.

However, with the engagement of Denali Consulting, the organization is now implementing QuickBooks to improve structure, transparency and accountability, she said. “Everything communicates with QuickBooks communicates with our bank, so every transaction automatically goes in, easy to reconcile.

“I am pleased to report that the payroll taxes from Oct. 1 forward have been reported and paid, ensuring that we stay current from this point forward. One of our structural issues we face is high volume of policies without accompanying procedures. Policies set the rules, but procedures bring them to life in a practical everyday term. I will be working closely with each department to develop clear, consistent procedures, creating the framework that ensures accountability and transparency in every area of our operation.”

Other structural changes underway are a new electronic donor tracking system, which previously was kept only on paper, and a new email system for the organization as the previous one was shutdown due to nonpayment.

There is also a recently updated webpage. Volunteer and member management tracking will be part of the donor tracking system.

Grant reporting is another area that has been difficult to reorganize due to lack of accounting, and has been an area of focus over the past few weeks.

“Since we don’t have any accounting, I can’t report for reimbursables and I refuse to make up the numbers. However, I’m pleased to report that all grants are now caught up with reporting because we have received permission to include all unreported expenses in the next cycle,” Weideman said.

“This opens the door to additional grant opportunities, including funds that would be allowed for to us to refurbish our independent housing buildings, improving the quality of life for all of our residents.”

Following the director’s report there were many follow-up questions from community members. One was related to an opportunity for caregivers to express or report concerns without worries of retaliation. Weideman responded that people can express anonymous concerns if they would like to simply by providing a written note. She also encouraged people to continue to reach out in any way that they feel comfortable.

The board meeting lasted more than an hour. Complete audio of the board meeting is available on the organization website at www.homerseniors.org. Board secretary will provide minutes soon, according to the website.