CEO spends $73,000 – Charity closes services

The chief executive officer of Catholic Charities in the Bay Area has billed the charity for cosmetic surgery and for more than $50,000 in restaurant meals over the last two years, the San Francisco Chronicle reported June 22.

Frank Hudson has charged more than $73,000 total to his expense account since August 1998.  Of that money,  $51,770 went for meals at high-end restaurants, some of which he ate alone.  The charity also paid for laser hair-removal treatments and injections of Botox, a cosmetic treatment that temporarily removes eye wrinkles.

Hudson told the Chronicle there was nothing improper about his spending and that the restaurant meals were a way to keep in touch with civic leaders. 

He also said that his cosmetic surgery expenses were in line with a charity policy that allows executives to expense most medical costs not covered by insurance.

Martha Moon, a former controller at the charity, said the accounting staff is not kept well informed and that there is not much oversight of expenditures.

Hudson’s expenses have come to light even as the charity is cutting back some of its services to save money.  Catholic Charities has decided to close a counseling center for teenage runaways in San Francisco, and may cut a social service program for the homeless in San Mateo.

Catholic Charities is the private, not-for-profit human services organization of the Archdiocese of San Francisco.  It is one of the largest social service providers in the Bay Area, serving 70,000 clients in 37 programs.

For full text, go to the San Francisco Chronicle.

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