Police have been called in to investigate the alleged misappropriation of more than $70,000 from the American River Community and Sports Association, known as The Shed.
Concerns were raised among committee members when no audited financial report was presented at the 2007 annual general meeting in September last year.
When the documents were not forthcoming in the following months, members at the December meeting formed a quorum and passed a vote of no-confidence in the association’s president John Kerr and treasurer Eva Norton. Along with secretary Lesley Beck, the two were not at that meeting.
The meeting formed a new executive. Vice-president Tony Klieve stepped up to the president’s role. Lena Klieve took the treasurer’s position and Mandy Johnson became secretary.
Books were organised to be audited and police notified of the discrepancies.
Sergeant Garry Elliott was invited to speak to members at a special meeting on April 7 to explain the investigation.
The new executive and the committee resigned en masse at that meeting and new elections were called.
Lisa Salvemini was elected president, Steve O’Brien vice-president, Gail Buick treasurer and Cath O’Dolan secretary.
Ms Salvemini said this week the new committee and executive looked forward to moving ahead to “a bright and happy future”.
Former committee member David Cowans said The Shed was still in business and still offering excellent meals and atmosphere on Tuesdays, Fridays and Saturdays.
“As far as I can see the attendance has not gone down. It is very much a going concern and still quite liquid with more than $24,000 in the bank,” Mr Cowans said.
“I’m not on the committee now and I have no axe to grind. The Shed is still running, it’s still a very significant place in American River and the tourists love it,” he said.
Sgt Elliott said the matter was being handled by Christies Beach CIB. A discrepancy of more than $54,000 has been reported in the 2006-07 financial year, with further losses reported early in the 2007-08 financial year.
Allegations include that banking reconciliations had not been sighted for some time, that the books had not been delivered to the auditor as the meetings had been told and that money had been misappropriated from accounts.
Sgt Elliott said he attended the April meeting not only to explain the investigation process but also in anticipation of angry members and to assist with electing a new committee.
He had spoken to various members of the executive since and expected charges to be laid soon. None of the money had yet been recovered.