Updated Dec. 23, 2011 | 3:45 PM
An anti-gang violence nonprofit organization founded by a candidate for D.C. City Council might have to face more questions regarding incomplete tax returns revealed during an audit of the group.
An update from the city auditors office released Wednesday says it has referred several matters to the council’s general counsel for advice on how to handle Peacoholics’ tax problems. The original audit was released this year and included an analysis of the group’s finances from 2006 to 2010.
The nonprofit, founded by Ron Moten, was chiefly funded during the Adrian Fenty administration through a total of $13.7 million in grants over five years from seven city agencies. The group lost funding last year.
The audit update was a response to questions filed by Ward 7 Councilwoman Yvette Alexander. Moten is running as a Republican for her Ward 7 seat next year.
The update said Peacoholics did not file the appropriate tax forms from 2008 to 2010 for nonprofit organizations and did not list Moten on its returns as a leader, even though he executed grants and had control over funds. Moten told the Washington Examiner on Friday he was never the CEO of the nonprofit, which was why he was not on the tax forms. The council’s attorney is now looking into what city or federal laws the ommissions might violate.
However, the update also found areas where no punishments exist for certain violations. For example, Peaceoholics illegally mingled its grant money, making it impossible to track which grant was spent where and on what.
But auditor Yolanda Branche said she found “no provisons that prevented a District grant recipient that failed to comply with grant agreement terms, from receiving additional grant awards.”
