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With its financial future up in the air after losing two of its major funding sources, Hollister nonprofit Jovenes De Antano is seeking over $381,000 from the Seniors Council of Santa Cruz and San Benito Counties.
In a lawsuit filed on July 2, Jovenes De Antano claims it provided food services to seniors and submitted the appropriate reports for reimbursement and that the Seniors Council withheld funding. Seniors Council Executive Director Clay Kempf says there are several things that need to be discussed during the court proceedings.
The next hearing is July 28.
At issue is whether Jovenes De Antano properly detailed its expenses in providing food to seniors at the Pauline Valdivia Memorial Community Center in Hollister as well as delivering food to client’s homes.
Jovenes De Antano Board President Tami Erickson told BenitoLink the nonprofit has submitted 500 pages of reports to the Seniors Council in its effort to get reimbursement approvals. She said the board opted to file a lawsuit when “it became evident” that the Seniors Council had “some intention” to return the funds to the state.
Erickson referred to minutes from a Seniors Council April 17 meeting saying it states that the organization would return $300,000 to the California Department of Aging if expenses cannot be justified.
“That is where the flag went up for us because once it goes back, it can’t come back,” she said.
Kempf said Seniors Council staff have spent “literally hundreds of hours trying to resolve [Jovenes’] reporting problems.” He said that includes in-person training to the Jovenes staff.
“We cannot give unlimited extensions for them to submit incorrect reports to us,” he said. “At some point the year closes out and this month is when everything needs to be finalized in what we send to the federal and state governments.”
Kempf said Seniors Council is required to report to the state the expenses from its various contracted service providers. After the state reconciles the reporting, it bills the agency for any unused funds.
“The state will then redistribute any unusued funds or unallowable expenses to all of the Area Agencies on Aging in California,” he said. “Only a small percentage will be returned to our area.”
He said those funds would still be restricted to be used for the original service it was allocated.
In the meantime, Erickson said San Benito County Superior Court Commissioner Page Galloway approved a temporary restraining order to freeze the disputed funds, to ensure they are not returned to the state. She said the Jovenes board felt the lawsuit was the last resort.
“We’re not asking for damages, we’re not asking for anything above the expenses that we’ve already incurred making nutritious meals for our seniors,” Erickson said.
Jovenes de Antano has been the only bidder for the senior meals contract for two decades and the contract has been its main source of funding. This year, the contract was awarded to San Jose-based Martha’s Kitchen, which began operating in the Community Center on July 1.
After losing the contract, Jovenes laid off 13 employees, some of whom now work for Martha’s Kitchen. Erickson said the nonprofit’s finances are “still in the air” as it moves forward with three employees and board members, who are volunteers working on site.
“Jovenes is a 50-year-old institution,” Erickson said. “We were here before they [Seniors Council/Area Agency on Aging] were involved with us and we’ll be here after.”
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