Should there be an investigation into tax funded Planned Parenthood clinics? Letter reveals PPGG’s “misappropriation and mismanagement of funds”

Looks like Planned Parenthood is dumping their affiliate PPGG just in the nick of time – should there be an investigation, after all Planned Parenthood gets millions of tax dollars per year???


Planned Parenthood Golden Gate’s former employees blame the organization’s longstanding pattern of financial mismanagement, former PPGG CEO, Dian Harrison. Because of this, the national Planned Parenthood organization has announced it will divorce itself from the networks of clinics that serve patients in five Bay Area counties, citing fiscal and administrative problems with the local organization. Effective Sept. 3, Planned Parenthood Golden Gate must operate under another name, a representative of the national organization said that Planned Parenthood Golden Gate had failed to uphold the “standards and guidelines” by which each separately incorporated affiliate must abide, but that the details of the situation were confidential.

“They were not meeting our standards for administrative and fiscal management,” said Karen Ruffato, vice president of affiliate services for the national organization.

A report in the Bay Citizen:

The most recent tax documents filed with the I.R.S. suggest that PPGG has not only been losing money in recent years, but is in financial disarray. For the tax year ending June 30, 2009, it showed a loss of $2.8 million.

Yet, from financial information for the previous year, it’s unclear just how much money the organization lost because it filed three separate sets of numbers with the I.R.S. In the filings, losses ranged between nearly $1.9 and $2.8 million. Two different accounting firms signed off on the various filings.

Tax documents also show that the organization’s financial problems did not start with the catastrophic recession and California’s fiscal crisis, which has delayed MediCal reimbursements from the state. Tax documents for the year ending June 30, 2007 show that the organization lost $181,000 that year.

Yet, the organization’s fiscal problems date farther back. Documents associated with a 2004 accreditation review of Planned Parenthood Golden Gate show that the local affiliate did not meet the national federation’s financial standards for its affiliates. Of nine indicators of financial health, Planned Parenthood Golden Gate was given a “not met” rating for five of them. For instance, the affiliate had only 11.4 days of cash on hand, as opposed to the required 60 days.

Planned Parenthood Federation of America executives refused to comment on the accreditation documents on the grounds that they’re internal and confidential.
On Wednesday, the charitable trusts division of the state’s attorney general’s office sent a warning letter to the Planned Parenthood Golden Gate Action Fund, the political advocacy and public policy arm of the affiliate, because the organization has failed to file copies of its tax documents with that that office for at least 10 years.
“We do not have any reports on file for them,” Rebecca MacLaren from the attorney general’s press office wrote in an e-mail.

The warning cautioned that if the organization fails to file those forms within 30 days, its registration would be suspended and officers would be personally liable for late fees.

In the letter, the clinicians detail a myriad of problems in the organization, including their concerns about “the misappropriation and mismanagement of PPGG’s funds.” The letter accuses the executive staff of profligate spending during lean times:

It is apparent that while Medical Services has been mandated and has complied with financial reform and cost savings, the Executive Administrative members have failed to adhere to their own mandate for financial restrictions. Executive staff’s personal expenditures are excessive and are not aligned with the mandatory fiscal restrictions. Flagrant use of PPGG funds to pay for personal belongings, personal services and exorbitant technology products is seemingly unchallenged and not subject to the same financial scrutiny that clinic supplies and staff salaries are, for example.

When Harrison replied to their concerns in a letter dated November 14, 2008, she assured the clinicians and doctors that administration was feeling the fiscal pain, too: “Administration has temporarily or permanently frozen a number of positions, budgets were cut, expenses were halted for a period of time and office supplies were not purchased,” she wrote.

And from the San Francisco Bay Guardian:

Former employees saw problems coming at Planned Parenthood Golden Gate
By Rebecca / San Francisco Bay Guardian
Created 08/11/2010 – 4:08pm

This week’s announcement that Planned Parenthood Federation of America (PPFA) was severing ties with Planned Parenthood Golden Gate (PPGG) came as no surprise to some former employees, who have for months been trying to sound the alarm that the chapter was being mismanaged, had major financial problems, and was in a steep decline that could threaten important reproductive care services that low-income women rely on.

A former PPGG employee with knowledge of the organization’s internal affairs described a longstanding pattern of financial mismanagement when former president and CEO Dian Harrison was at the helm. There was widespread concern about spending on expensive marketing campaigns and lavish functions, the person said, and a high level of employee turnover and discontent.

Warning signs of financial difficulties surfaced at least a year ago. Dan Cohen, a spokesperson of the Packard Foundation — a major donor to PPGG — told the Guardian that Packard awarded PPGG a 12-month, $30,000 “organizational effectiveness” grant, which will expire in September. The grant “allows an organization to select a talented, external provider to help them think through some of these challenges,” Cohen explained. The Packard Foundation also awarded a 3-year grant for general operating support for $800,000, which will also expire next month.

Another former employee told the Guardian that she would love to discuss internal problems, but was made to sign a confidentiality agreement upon leaving the organization.

Therese Wilson, executive vice president of Planned Parenthood Golden Gate — who took over PPGG when Harrison left last year on medical leave — did not return repeated calls seeking comment.

An internal PPGG document provided to the Guardian displays the agency’s on-hand cash reserves as compared with other affiliates, suggesting that the reserve ratios were at or below the minimum required by the national Planned Parenthood federation for all but one year from 1998 to 2007 — and well below that of other affiliates of similar size. That is a key requirement for meeting accreditation standards.

When we asked Elizabeth Toledo, a PPFA representative, about this apparent pattern she said she could not comment because she had not seen the documents. She also said the accreditation reviews were confidential. “Understanding the true financial picture for health care providers takes a very in-depth evaluation,” Toledo said. “PPFA and PPGG were working together over the last few years to resolve fiscal challenges.”

Despite delays at the state level in awarding nonprofit funding and the loss of support from the national organization, Toledo and a union representative for PPGG employees both said they believe the clinics will continue serving patients under a different name.

“They plan to stay open, and employees are planning to stay,” said SEIU Local 1021 representative Sarah Sherpun-Zimmer, who has been a union rep for PPGG employees for the last two years. “Folks are really happy working there and they feel like it’s going in a good direction.”

PPGG operated eight clinics, which will lose their Planned Parenthood accreditation Sept. 3, effectively severing their ties to a trusted entity that thousands of low-income women rely upon for birth control, abortion procedures, and other forms of reproductive health care. PPGG operates clinics in San Francisco, Alameda, San Mateo, Sonoma, Marin, and Mendocino counties, serving about 55,000 women per year.

Roughly 92 percent of the clients they serve live at or below the federal poverty line, according to PPGG’s 2008 annual report.

Planned Parenthood affiliates Mar Monte and Shasta Diablo are in the process of hatching plans for taking over some of the eight affected clinics or otherwise growing their own operations to cover any gaps in service area, according to Toledo. She said neighboring affiliates are in a position financially to be able to cover a wider territory and added that they have been in “expansion mode,” adding new clinics over the past couple years.

“It’s unusual to have a disaffiliation,” she said. “But it’s not unusual for national committees to have a reallocation of service area. That part is well-practiced.” Toledo added that “Every effort possible will be made” to ensure continuity of care.
_____________________________________________________________________________________________________________________________________

According to a press release issued by, “Life, Liberty and the Pursuit of Happiness” a film financed by Planned Parenthood Golden Gate,Dian Harrison also served on these boards:the National Abortion Federation, the American Civil Liberties Union (ACLU), the National Association for the Advancement of Colored People (NAACP), and she blogs for RH Reality Check , Harrison was also a guest speaker at a NAF conference

In 2008 Assembly member Mary Hayashi Named Dian Harrison Of Planned Parenthood Golden Gate Her “Woman Of The Year”

In a report of the top paid Planned Parenthood employees for 2008, Harrison made the list when the California Catholic Daily reported this

Dian Harrison, President and Chief Executive Officer
Salary: $274,438
Benefits: $18,976
Expense Account: $11,340
Total Compensation: $304,754

Here Harrison brags about her rich and lavish new design for the abortion clinic she managed !

_______________________________________________________________________________________________________________________________________

In 2008, Planned Parenthood cut ties with their South Florida offices:

The July 2, 2008 Miami Herald article entitled, Planned Parenthood cuts ties with 5 clinics
reported this:

One of the nation’s best-known groups of health centers has permanently shut down a cluster of clinics in Broward and Palm Beach counties.

Planned Parenthood officially severed its ties Monday with five local clinics — four in Broward and one in Boca Raton — whose top administrator has acknowledged a history of “terrible mismanagement and possibly fraud.”

The disaffiliation allowed the national organization to wash its hands of the local chapter once known as Planned Parenthood of South Palm Beach and Broward Counties.

The chapter is dealing with many problems, including harassment complaints and possible misuse of nearly $450,000 — slightly less than they received in public funding in 2005.

“All these issues are now issues that they will have to face without us,” said Karen Ruffato, vice president of operations for the Planned Parenthood Federation of America.

The attitude has angered Ruth Lynch, the former Broward chapter’s CEO, who said the national organization bailed out before the local chapter could resolve its problems.

Lynch, who replaced former CEO Mary Capobianco in March, said that within two weeks of her arrival she found she could not account for $440,000 of the chapter’s $3 million budget.

“We take responsibility that there was horrible management,” Lynch said. “But that was then. This is now. We have a new board.”

CHAPTER’S PLANS

Lynch said that the chapter’s board of trustees plans to eventually open and continue medical services at the five clinics — in Oakland Park, Fort Lauderdale, Pembroke Pines, Deerfield Beach and Boca Raton — but without the trusted name of Planned Parenthood, one of the nation’s most recognized clinics in the field of reproductive heathcare.

“We don’t feel this was simple disaffiliation, we feel this was a hostile takeover,” Lynch said.

“And it was more about the Planned Parenthood trademark than it was about helping the community.”

At least 16,000 people used the five clinics for services such as breast exams, testing for HIV and abortions. In 2005, it received $500,000 in taxpayer funding.

HARSH REVIEW

The disbanding of the relationship ended a months-long back and forth between the Broward chapter and the national organization, which temporarily shut down the clinics in March after delivering a harsh review about the chapter’s administration.

Popular employees were fired. An employee alleged sexual harassment against a former CEO, Capobianco. The local board was investigating a rumor that its 2006 annual report was plagiarized.

SHUT DOWN

Ruffato said Planned Parenthood wanted to disaffiliate from the Broward chapter as soon as possible.

By March, the clinics were temporarily shut down.

They began the process in April to permanently strip the five clinics of the Planned Parenthood name.

Instead, Ruffato said they entrusted the more-reputable Planned Parenthood of Greater Miami, Palm Beach and the Treasure Coast to open one clinic in Broward and one in Boca Raton.

Ruffato said the Greater Miami chapter is one of the country’s best.

‘UNFORTUNATE’

“This is a very rare situation and a very unfortunate situation,” Ruffato said. “And as sad and as hard as moving through a disaffiliation is, I believe our ultimate responsibility is to the mission. And ultimately we need to make sure that your community clinic has the best healthcare and meets our high standards.”

For now, Planned Parenthood is concentrating on replacing the five clinics with at least two, said Judith Selzer, spokeswoman for the Greater Miami chapter. Officers plan to select one site by next month.

Selzer said they will add clinics “as quickly and swiftly as the community needs.”

The chapter plans to include Broward residents on the staff and board of trustees.

Said Selzer: “We’re poised and we’re ready to do this.”

________________________________________________________________________________________________________________________________

The National Planned Parenthood Office has NEVER denounced their racist founder Margaret Sanger who pushed eugenics, sterilization, and black genocide as documented in the film: Maafa21

More Here

READ: Accusations continue to fly against Planned Parenthood Golden Gate by those who claim to be in the “know”

2 Responses to “Should there be an investigation into tax funded Planned Parenthood clinics? Letter reveals PPGG’s “misappropriation and mismanagement of funds””

  1. […] Planned Parenthood misbilled Medicaid in New Jersey, reports claim On the heels of a California Planned Parenthood loosing it’s national affiliation for misappropriation and mismanagement of funds” ( READ: Should there be an investigation into tax funded Planned Parenthood clinics? Letter reveals PPGG’s…) […]

  2. […] READ: Should there be an investigation into tax funded Planned Parenthood clinics? Letter reveals PPGG’s… […]

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