MILWAUKEE COUNTY

Milwaukee County Board cuts troubled nonprofit UNISON out of contracts for 2019 and delays action on pension overpayments

Don Behm
Milwaukee Journal Sentinel

The possible collapse of UNISON, a nonprofit with a history of more than 40 years of publicly funded service to seniors, gained momentum Thursday as the Milwaukee County Board booted the agency out of more than $1.9 million worth of contracts for 2019.

USE OTHER MUGSHOT Laurene Gramling Lambach

The board of supervisors acted as evidence mounted of UNISON's loss of accountability in administering past contracts, from the November arrest of its now-suspended CEO on allegations of "theft by fraud" to this week's disclosure of a six-month-old agency audit showing "significant deficiencies" in spending controls and record keeping.

"This is a hot mess in county government," Supervisor James Schmitt said in support of the action.

"We need to cut ties and move on," Supervisor Supreme Moore Omokunde said.

The board unanimously adopted a resolution by Board Chairman Theodore Lipscomb Sr. that authorizes the Aging Department to consider spending the funds set aside for the contracts by hiring other agencies to do the work, or by taking over the services and hiring county workers.

If the department chooses to provide the services directly with county employees, the resolution authorizes human resources officials to hire temporary staff in the interim, including employees of UNISON.

RELATED:Milwaukee County to end $1.9 million in contracts with troubled nonprofit UNISON after CEO's arrest

Supervisor Sheldon Wasserman warned the board the Aging Department might not be able to bring in new agencies or hire its own employees to provide the services by Jan. 1.

"Seniors should know there could be a disruption of services," he said.

Holly Davis is executive director of the Milwaukee County Department on Aging.

After reviewing the newly disclosed UNISON audit, Aging Department Executive Director Holly Davis on Tuesday asked the county board to cut UNISON out of 2019 contracts covering programs at three senior centers, supervision at 18 senior meal sites, coordination of respite care and community outreach for Alzheimer's disease, and other services.

One week earlier, Davis had recommended awarding the contracts to UNISON on a month-to-month basis due to the absence of audited financial reports.

UNISON's current contracts with the county end Dec. 31.

RELATED:Investigation of nonprofit leader focuses on public funds intended for purchase of computers

Robert De Vita, chairman of the UNISON board of directors, said Thursday the agency is committed to providing all services through the end of the year.

UNISON is preparing layoff notices and is working with other human service agencies capable of hiring UNISON employees who will be losing jobs, De Vita said.

On Wednesday, he asked county officials to consider putting the agency's contracts in place for 90 days, through the end of March, to allow a transition period and ensure there is no gap in services.

"This transition period is imperative for the health and safety of more than 5,000 seniors supported by UNISON's neighborhood outreach program and thousands of other seniors served by UNISON," De Vita said. "These seniors depend on UNISON for over 181,000 healthy meals through our senior dining programs and over 26,000 free rides to doctors' appointments, dialysis treatments and grocery shopping."

No supervisor called for such a transition at Thursday's board meeting.

Agency's CEO arrested

Laurene Gramling Lambach, then-CEO of UNISON, was arrested Nov. 20 after a Sheriff's Office investigation found probable cause that Lambach had committed "theft by fraud" by requesting and receiving reimbursement for $17,000 of grant money in late 2017 for computers that were never purchased.

Grant guidelines would have required returning those funds to the county if they were not spent by the end of that year, officials said. 

Lambach has not been criminally charged.

In a statement Wednesday to the Milwaukee Journal Sentinel, the UNISON board said its internal investigation of the transaction "has yet to show any money has left the organization."  

The audit of UNISON reported the agency received reimbursement for $11,281 worth of computers that were not received. Those funds covered computer purchases for Interfaith Older Adult Programs, De Vita said. The remaining funds covered computer purchases for SET Ministry, he said. Interfaith and SET Ministry merged under the UNISON name this year.

De Vita said Thursday the full amount would be returned to the county by the end of the year.

RELATED:United Way suspends payments to troubled social service agency UNISON

Following action on the 2019 contracts, the county board canceled a proposed Community Development Block Grant to UNISON in the amount of $48,496 for 2019.

The funds were intended to support UNISON's Neighborhood Outreach Program, which provides transportation for seniors as well as information services.

After the County Board meeting, De Vita said UNISON would continue in business though as a much smaller agency.

"We have some very strong contracts with other organizations," he said, referring to work for the City of Milwaukee housing authority as an example.  

Action delayed on pension overpayments

Also Thursday, the board postponed action until February on an ordinance setting up procedures for collecting $1.55 million in pension overpayments to 185 retirees or their beneficiaries.

The county would forgive accumulated interest charges on each of the 185 overpayments if an individual accepts the corrected monthly pension payment amount and agrees to repay the overpayment principal within 12 months, under the proposal.