Humane Society of Harrisburg Area fined $45,000 by state attorney general

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The Humane Society of Harrisburg Area has been fined $45,000 by the state attorney general after an investigation into its record-keeping practices. Attorney General Michelle Henry announced the settlement with the humane society – which is through the Office of Attorney General’s Assurance of Voluntary Compliance – for violating bookkeeping standards for charitable organizations.

Because of a lack of internal oversight of purchases and reimbursements, the nonprofit will pay $45,055.25 to the Office of Attorney General, including a $5,000 civil penalty with the remainder being collected to recoup investigative costs, plus a filing fee. The settlement also requires that the humane society file amended IRS forms 990 for 2021, 2022 and in the future.

“It is essential that Pennsylvania’s nonprofit and charitable organizations keep accurate records so we can ensure every aspect of the Charities Act and Nonprofit Corporation Law is being followed,” Henry said in a release. “It is part of my constitutional mandate as attorney general to verify that a level of public transparency is maintained by these organizations.”

The investigation found a failure to disclose Executive Director Amy Kaunas‘ $950 a month housing stipend in required yearly reporting. The stipend covers rent for her home on the nonprofit’s farm in Perry County where the humane society cares for animals that have been surrendered or seized.

Other violations included a lack of appropriate internal oversight with regard to the use of business credit cards, purchasing, travel and reimbursement policies.

Since being contacted by the Office of Attorney General, the organization says it has already taken steps to enhance financial control procedures and keep records up to standard.

The organization said in a statement: “HSHA has cooperated fully during this matter and would like to thank the Office of Attorney General for its input and feedback during this process. Over the past several years, the Humane Society of Harrisburg Area has proactively made multiple improvements to strengthen the financial oversight, separation of powers, and other checks and balances within our small operation. These improvements include adding an independent chief financial officer to oversee all financial transactions and fiscal responsibilities, direct oversight, and review of financial transactions from the board of directors’ finance committee.”

“HSHA’s financial statements have undergone independent annual audits for more than a decade and have received a clean ‘unqualified’ opinion, the highest level achievable. The HSHA board and staff are committed to ensuring that all HSHA resources continue to be effectively used to care for the more than 8,000 animals we serve each year.”

The investigation focused solely on the humane society’s record-keeping as required by the Charities Act. The investigation produced no evidence of abuse or mistreatment of animals and no such allegations are contained within the settlement.

Paula Wolf is a freelance writer