A high-ranking Utah nonprofit executive has been caught embezzling public funds for personal indulgences, an audit by the state has revealed. The former President of iMpact Utah, a nonprofit manufacturing advocate, reportedly used state grant money to finance vacations, political donations, and other nonessential expenses. These findings are part of an audit that resulted from a whistleblower tip, which was initiated this year, as detailed by ABC4.
According to Fox13Now, Auditor Tina Cannon has recommended that the matter be referred to the Utah attorney general to potentially recoup the funds and to consider legal action against the executive, who resigned back in March as the implications of an audit began to loom. The alleged misappropriation occurred over two years and went unnoticed due to a lack of oversight from both the Office of Economic Opportunity and Utah State University, which administers the taxpayer grants.
The Manufacturing Extension Partnership (MEP) grant, earmarked to assist manufacturers in refining operational strategies and improving market competitiveness, was misused for purposes outside its scope. This misuse was not detected earlier because once government funds are funneled to nonprofits, oversight restrictions diminish, as mentioned by The Salt Lake Tribune. Tina Cannon, the Auditor, expressed her concern by stating, “I have oversight over government entities, but once it gets funneled to a not-for-profit, then there is less and less restriction and less and less oversight available in those types of situations.”
