The city of Elk Grove is preparing to issue subpoenas for financial records from the faith-based Elk Grove Teen Center.
Councilwoman Sophia Scherman, who's also a member of the teen center's advisory board, said Thursday that she raised concerns at the board retreat in February after being shocked at the center's financial condition.
She was among four City Council members who voted unanimously during a special council meeting Wednesday night authorizing City Attorney Susan Cochran to seek documents covering 27 months ending Sept. 30.
The city grants money to the teen center each year. In each of the last two fiscal year, the contribution to the nonprofit group was $79,000.
The center is governed by the board of a Youth for Christ ministry, Campus Life Connection. For two decades – until he went to work for the city – Jim Miller was the center's executive director.
The city hired Miller in January as its youth services program manager, a new position. He receives $77,250 a year.
This week, Miller's name surfaced as the focus of the financial problems.
Miller declined to comment.
Gary Fox, executive director of Youth for Christ in Sacramento, said Miller was involved in "policy and procedure misconduct," not criminal conduct.
"Mr. Miller was willing to come and meet with us." Fox said. "He was obviously honest in his response to questions, very transparent, and basically said, 'I made a mistake.' "
Fox said Miller spent teen center funds on unauthorized and unbudgeted items.
Those funds, between $9,000 and $10,000, "did not go through proper channels," he said.
Miller financed some of the expenditures with his personal credit card and then used center money to reimburse himself and repay the card, Fox said.
He later agreed to restitution, Fox said.
Fox said none of the money was tied to the city's $79,000 in annual support. The center's yearly budget is about $250,000.
City Manager Laura Gill said late Wednesday that Miller's status as a city employee is unchanged.
"I noticed we weren't making any money," Scherman said. "I couldn't figure it out, we've had (fundraising) dinners, sponsors, a fireworks booth and a multitude of activities."
She said she asked for an audit and, initially, yielded to the ministry's desire to handle the matter in-house.
But when the details of the inquiry were not shared with the advisory board, she said, she took the matter to the city attorney and the City Council.
Call The Bee's Loretta Kalb, (916) 478-2641.
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