Foundation for Tennessee Chess

“Treasurer David Wasiolek is the father of Rory Wasiolek the director of operations”

“The Foundation for Tennessee Chess FFTC is a small nonprofit that runs chess tournaments and teaches chess in various public and private schools in the Nashville TN metro area. FFTC revenues for 2024 were approximately $383,000. It currently has 3 salaried employees and multiple contract chess teachers. Prior to 2024 the FFTC had its accounting done by an outside accounting firm. The outside accounting firm would take the bank statement and credit cards and record the expenses and revenues as per certain established guidelines. When there were questions the Executive Director of the center would tell the accountants where to book the revenue or expense. In mid-2023 a new board member was brought on to oversee the Treasury function. This individual became uncomfortable with the lack of transparency of the financial statements. After attempting unsuccessfully for 6 months to work with the outside accounting firm and the Executive Director to increase transparency the Treasurer board member recommended to the board that an office manager bookkeeper be hired to handle the accounting as well as various other activities. The Executive Director supported adding the new position and the Board approved the hiring. The transition from the outside firm to the new office manager bookkeeper occurred over the June July 2024 time frame. During this transition the office manager bookkeeper identified 4 separate incidences of suspicious charges by the Executive Director from casinos on the FFTC credit card Uruguay: 2 2 2024-2 9 2024 New Orleans: 4 19 2024 and two separate instances in Las Vegas: 12 27 2023 and 6 1 2024-6 9 2024. Each time a deposit was made for the same amount within days except for the last incident in Las Vegas 6 1-6 9. The total amount not repaid from this last incident was $20,390. With this discovery the board had the office manager bookkeeper review all the financial data available to the FFTC the outside accounting firm had provided 2 years of historic records and then deleted the earlier files. No other suspicious expenses were identified in the years for which records were available. When confronted the Executive Director admitted his embezzlement and claimed extenuating circumstances. The Executive Director had been in his role for 18 years and had done a good job in growing the nonprofit. In light of his long service the board decided to allow him to remain in his role with an agreed upon garnishment of his wages to repay the outstanding amount including $3,000 of rent the Executive Director owed for his brother living in a cottage owned by the FFTC for a total amount owed of $23,390. In addition the board took the following steps to ensure there would be no repeated occurrence: 1. The Board removed the Executive Director from all access to FFTC funds. He was directed by the Board to have any purchases completed by either the Assistant Director or the Office Manager of the FFTC. 2. The credit card held by the Executive Director was canceled and two new cards were set up and assigned to the Assistant Director and the Office Manager. These cards had significantly lower charge limits Limits = $1,500 and $2,500 respectively. 3. The Treasurer and Chairman of the Board Chairman were set up to be notified by US Bank of any checks drawn against the FFTC account. 4. The Treasurer and Chairman were set up to have access to the credit card charges for review on-line. 5. A process was established such that any transfers of funds between the FFTCs money market account and its US Bank checking account needed to have the Office Manager request the Chairman to make the transfer. The Treasurer is also authorized to execute this transfer however only under those circumstances when the Chairman for whatever reason is unable to and then only with written direction by the Chairman to do so. The Chairman and the Treasurer are both automatically informed by both financial institutions of any transfers. This agreement with the Executive Di”

“The tax documents were shared with the board.”

“Transactions involving the endowment were handled by the president of the board rather than the treasurer.”

“Filed forms will be made accessible to public through state agency.”

“No documents available to the public.”

“Mistakenly included form 3949A and its explanation in the filing which should not be public facing. These will be removed”

“1. Property Tax: 10,760; 2. Utilities: 7,604; 3. Dues and Subscriptions: 7,049; 4. Meals and Entertainment: 11,756; 5. Excess Benefit: 24,390 See Below; 6. Other Misc: 7,399.”