October 4, 2012
STATEMENT FROM THE BOARD OF DIRECTORS OF SOUTH CENTRAL VIRGINIA AREA HEALTH EDUCATION CENTER
South Central Virginia Area Health Education Center (SCVAHEC) has closed and will not reopen. The SCVAHEC Board of Directors met on August 30, 2012. At that meeting, the executive director informed the board for the first time that the center's finances had collapsed.
The executive director revealed to the board that accounts payable exceeded $260,000.00 with no funds on hand to pay them. The equipment and other assets owned by SCVAHEC are all collateral for a perfected lien in favor of a local bank in Altavista with an outstanding balance which is far in excess of the value of the assets.
The executive director was given two weeks to try to find emergency funding for SCVAHEC. A called board meeting was held September 19, 2012. Upon learning that no further funding was available, the board released the staff including the executive director and voted to dissolve the SCVAHEC, which is a Virginia corporation.
The board relied on the longtime executive director for the daily operations of the center and until August 30, 2012, the board was not made aware of the gravity of the SCVAHEC's financial situation. The board is currently investigating the cause of the financial collapse.
The board regrets that the corporation has no assets available to distribute to creditors.
Cynthia W. Ward, Chair, Board of Directors