Sheltered Inc. provides emergency shelter to single adults and families. The nonprofit serves as the community’s access point, meaning individuals and families at risk of or experiencing homelessness first go to the nonprofit, which will then help place them either in its own shelters or another location. It has funding to operate through an agreement with OIC of Clark County.
A review of the period from July 1, 2021, through Dec. 31, 2022, found that Sheltered reportedly did not provide proper documentation for reimbursements and submitted invoices for unallowable expenses including staff salaries, utilities, rent, insurance, office supplies, gasoline, facility maintenance/repairs, contracted personnel, hotels, gas cards, bus passes, meals and birth records, according to the lawsuit.
In April 2022, expenditures submitted for the number of hotel rooms and amount of food purchased appeared to reflect a larger number of people than the number listed as PRC participants. In response to a question about whether costs requested for reimbursement were only for those on the PRC list or for everyone receiving services, Sheltered responded: “Everyone receiving services,” the lawsuit stated.
In addition, all PRC applications were initialed by Sheltered staff with the statement “COVID-19 Verbal Consent” and are void, the lawsuit stated, because verbal signatures were no longer permitted by the state effective July 1, 2021.
Other areas of concern noted were that reimbursements were made for meals provided by Lee Ann’s Dairy Delight, owned by Sheltered employee Lee Ann Lopez, the agency purchased insurance from a business owned by a board member and there were questions about the legitimacy of some of the documents provided, according to the suit.
“Several time sheets provided appear to clearly be black and white photocopies, yet (former director Elaina Bradley’s) signature appears to clearly be a ‘wet’ signature in blue ink, but it is dated in the past to match the employee signature date,” it stated.
Also, two copies of the same timecard were submitted, including one that was a photocopy with a “wet” signature in blue ink.
“Such inaccuracies call into question the veracity of records provided.”
Bradley resigned from Sheltered Inc. in July.
The lawsuit was assigned to Clark County Common Pleas Judge Douglas Rastatter.
In February last year, Clark County terminated a portion of a $700,000 contract — of which about $495,000 was reimbursed — with Sheltered Inc., which county officials said was due to “multiple violations” regarding the reimbursement of funds found following a review. But Sheltered Inc. disputed the allegations.
The county entered into an agreement with the Ohio Attorney General in November 2023 to collect money it said is owed by Sheltered Inc., requiring the nonprofit to pay back more than $500,000.
According to Sheltered Inc., the issue was sent back to Clark County by the attorney general last month, but the county has not scheduled any meetings or otherwise made “any attempts to address the purported issues and their resolution.”
Staff Writer Sydney Dawes contributed to this report.
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