The Detroit Riverfront Conservancy, a nonprofit organization headquartered in Detroit, Michigan founded to preserve the Detroit International Riverfront, has placed its CFO on leave, pending a criminal investigation. William Smith will step away from the organization amid an investigation opened by Michigan State Police, an agency spokesperson said to the Detroit Free Press.
Smith has served in the CFO role since 2013, according to past tax filings, and before that was finance director for the nonprofit. Records indicate he has been in charge of the filings since 2005.
Conservancy chairman Matt Cullen, who will oversee operations during the investigation, said in a statement to Fox 2 Detroit, “I recently became concerned about the accuracy of management reports and financial statements that had been provided to the Board of the Detroit Riverfront Conservancy … After consulting with Board leadership, we moved immediately to order an independent forensic audit by PwC and sought counsel from the Honigman Law Firm and its lead partner for investigations, former U.S. attorney Matthew Schneider.”
Reports gave no indication of the nature of the financial issue or why it was referred to the state police. Smith has not issued any public comment since being placed on leave.
The conservancy’s most recent filing in 2022 indicates revenue — comprised of contributions and grants — of $25.0 million, an increase from $18.3 million in 2021, a 37% YoY jump. The largest increase in YoY revenue occurred between 2017 and 2018 when contributions grew from $5.2 million to $19.6 million, a 277% increase. While tax filings do not disclose the origin of the donations, Cullen himself donated $4M to the conservancy in 2018, likely contributing to that YoY increase.
