WTVP has sent in its request for continuing funding from the Corporation for Public Broadcasting. But it's not a sure thing it'll be accepted without more investigations into the Peoria public television station's financial dealings.
“CPB received the request from WTVP today, and we are reviewing it. We have the option to refer this matter to CPB’s Office of Inspector General for further investigation," said a CPB spokesperson.
Board chairman Andrew Rand said Tuesday that the station would submit a request this weekfor the release of interim CPB grant dollars pending completion of a financial station audit.
The Corporation for Public Broadcasting is a private, not-for-profit corporation funded by Congress. Those funds in turn are used to support public broadcasting across the country, including through direct grants to local stations.
The CPB inspector general conducts independent audits, investigations, and evaluations of stations. That includes investigation of possible wrongdoing, wastefulness, abuse, and fraud.
WTVP board chairman Andrew Rand has repeatedly used the phrase "questionable, improper, or unauthorized" spending to describe the events leading up to the board slashing $1.5 million from a $5 million budget, laying off nine people, and suspending publication of Peoria magazine indefinitely. He has said that spending is stopped now.
The recent turmoil has caught the attention of state and local authorities.
"The Attorney General’s office has opened an investigation into the alleged misuse of funds at WTVP. We will not comment further on a pending investigation," said a spokesperson for the Illinois Attorney General's Office.
A report was also filed with the Peoria Police Department by members of the board of directors. The station said in a press statement that it's cooperating with both investigations.
In fiscal year 2022, WTVP recieved $905,514 from direct CPB community service grants. That was about a fourth of the station's total revenue of $4,017,802 in the station's fiscal year 2022 annual audited financial statement.
The CPB requires stations to submit their annual financial reports and audited financial statements within five months of the closeout of the grantee's fiscal year to avoid penalties or delayed disbursements of community service grant payments. WTVP's last fiscal year ended June 30.
Rand said during the Tuesday meeting that he'd had a phone conversation with CPB officials on Oct. 13. Among their asks were changes to the station's control policies, and progress on completing the station audit.
The National Educational Telecommunications Association is also working with WTVP to amend its annual financial report.
The CPB also requested, but apparently didn't require, a third-party forensic audit of WTVP's finances. The public television station's insurer declined to cover that expense. Rand has claimed the station's treasury couldn't handle those costs.
The station also has filed a insurance claim for employee theft with a maximum $250,000 payout.
It's unclear which person or people may be at the root of that employee theft claim.
Former WTVP CEO and president Lesley Matuszak took her own life a day after resigning from the station in September, and former director of finance and human resources Lin McLaughlin departed around the same time.
This happened a few weeks after a special board of directors meeting where cash transfers were scrutinized. The station had almost failed to make July payroll until management tapped $100,000 in credit and sold off $320,000 in investments. The board of directors say they didn't know that had happened until later. It's unclear how $420,000 worth of financial assets were shifted without the board's knowledge, but the station's board of directors say they've since enhanced checks and balances on spending.
WTVP has served Central Illinois since 1971. The PBS station broadcasts to the Peoria, Bloomington-Normal, and Galesburg areas. WTVP is not affiliated with WCBU.
