SPOKANE, Wash. — The Spokane City Council officially declared an a civil emergency during a special session on Thursday afternoon. In doing so, the council also officially ended its contract with the Guardians Foundation.
The Salvation Army will now be responsible for operating the Trent Resource and Assistance Center (TRAC) and the Cannon Street shelter, taking over the $6.5 million contract the city initially agreed to with the Guardians.
Although staff are planning to visit both shelters as early as Thursday, the Salvation Army will officially take over operations on Nov. 1. The city said there will be no interruption in services.
While the decision to part ways with the Guardians Foundation was difficult, the city said it was necessary.
"There are clear discrepancies in accounting practices,” City Administrator Johnnie Perkins said.
Perkins told council members several "irregularities" were found in payroll and expense reports submitted by the Guardians. Those reports were then put under the microscope several weeks ago after the city learned a former Guardians employee may have embezzled $118,000 over the course of several years.
"There are clear violations in the current contract," Perkins said. "Therefore, a change needs to be made right now."
During the meeting, Councilmember Zack Zappone pressed Perkins, asking why these discrepancies weren't flagged earlier. He also questioned if the city's process of vetting non-profits is as effective as it needs to be.
"We're taking a hard look at all of our protocols, all of our reviews," Perkins said. "Staff did a great job of bringing to my attention in this two to three-week period, some of these irregularities that I'm pointing to now in terms of payroll submittals, expense submittals."
By declaring an emergency, council members were able to bypass the bidding process and ensure that service at both shelters is uninterrupted.
The Salvation Army will take over the same contract the Guardians Foundation originally signed with the city, worth $6.5 million. Major Ken Perine thanked council members and said the Salvation Army's goals remain the same: to help people move forward no matter what they are struggling with.
"It is our intention to take over the TRAC and Cannon contracts as is the way they are right now," Perine said. "We do want to spend a little time to look at how they were doing things and if that fits within the Salvation Army methods."
The Salvation Army said they will offer jobs to staff already working under the Guardians Foundation at the shelter.
KREM 2 reached out to Mike Shaw, the CEO of the Guardians Foundation, on Wednesday and Thursday for comment but has not heard back.
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