Money Withheld from Merrimack Youth Association?

Merrimack police investigated the Merrimack Youth Association last year for a possible case of what was labeled at the time as embezzlement, but the Hillsborough County Attorney's Office concluded it would be difficult to prove that the person in question intentionally stole any money from the nonprofit organization.

The inquiry began with concern that the person affiliated with Merrimack Youth Baseball "withheld" money, among other questions of book-keeping irregularities and cash management, according to the investigative report.

The MYB person would keep large amounts of cash at his house and use personal and sponsorship checks to file with the bank, according to the report. In one instance, deposit slips reviewed online showed $664.25, $775 and $800 deposits did not contain cash, but were made using sponsorship checks. According to the police report, it appeared the person would go through the checks written to MYB and look for check amounts that would add up to similar amounts of money as the cash from the concession stands, then deposit the checks and then, allegedly, "pocket the excess cash."

The banking and book-keeping irregularities prompted the executive board to relieve the person of his MYB duties last year, according to the investigative report, a redacted copy of which Merrimack Patch obtained.

The investigative report is surfacing as the Merrimack Youth Association prepares to come before the Town Council later this month for an estimated $72,000 in funding support. Councilors are looking to require that a financial audit be part of any contract.

Terry Benhardt, president of the Merrimack Youth Association, said the person in question is no longer with MYA. He would not confirm the name of the person investigated. In an interview with Merrimack Patch, Benhardt said when the error or book-keeping incongruity was discovered, his organization reached out to the police for an inquiry.

"As soon as we saw it, we acted on it," he said. "I don't think there was an intent to embezzle."

Benhardt said he does not believe there is any money unaccounted for, but if there is, it is below $100.

Merrimack Police started investigating in June of 2012. In a November 2012 letter, Assistant County Attorney Nicole Thorspecken explained that the case was brought to her office's for possible prosecution, which would not be proceeding.

The person "likely withheld some money from MYB, however, proving that he intentionally stole the money (or had the intent to permanently deprive MYB of the money) will be difficult," she wrote.

That conclusion is confounding to Town Councilor Dave Yakuboff.

"They're not keeping track of the money being given to them by the town," he said. "Everybody's livid about it from the council side."

Yakuboff said the council is willing to support youth association sports program in town, so long as there are proper fiscal controls in place.

Paul Williams, president of Merrimack Youth Baseball, was the one who reached out to police for an inquiry, not the MYA board, according to Yakuboff. Yakuboff questioned whether the full MYA executive board and membership were even aware of the book-keeping and cash-management irregularities mentioned in the investigation.

Merrimack Youth Association oversees seven independently run sports programs, including Merrimack Youth Baseball. Its tax form filed with the Internal Revenue Service in 2011 shows gross receipts of $411,378. Its expense sheet for 2011 shows $118,874 for program equipment, $63,226 for officials and umpires, $34,257 for programs and other supplies, $29,994 for tournament and registration fees, and $84,952 for "other."

Merrimack Youth Association was established in 1971. It is a registered non-profit, in good standing, with the charity division of the New Hampshire Department of Justice.