By SYDNEY SCHWARTZ
The Patriot Ledger

MARSHFIELD - Road to Responsibility has laid off a dozen managers in a move to cut costs as the state scrutinizes the nonprofit’s finances.

The Marshfield-based agency gave the employees two weeks’ notice on Monday.

Interim CEO Paul J. Cote Jr. said the job cuts will save about $700,000 and will not affect any of the agency’s program services.

Road to Responsibility, which has an annual budget of about $22 million, works with more than 1,000 people with mental disabilities through residential, employment and recreation programs. It has a staff of about 400, according to its Web site.

‘‘Basically we’re confronting a cash shortfall. Our expenses were exceeding the revenue,’’ said Cote, former commissioner of the state Department of Public Health.

Cote took over at Road to Responsibility on Oct. 15.

The state Department of Mental Retardation has been investigating the agency’s finances and spending for several months and recommended Cote for the job of interim CEO.

The state auditor’s office also plans to issue a report on the 18-year-old agency, which has a board of directors.

A special Patriot Ledger report on the nonprofit showed it has a record of giving jobs and other benefits to family members and friends of founders and board members, and that it spends far more on travel and facilities than similar agencies do.

In fiscal 2006, the most recent year for which a tax return is available, Road to Responsibility spent nearly $12.9 million on salaries and wages. It paid its officers nearly $1 million.

Salaries and wages in 2006 were up more than $1.1 million from the previous year. The amount paid to officers and directors rose by $542,357.

Cote said the people who lost their jobs Monday include both full- and part-time workers in administrative and fundraising jobs. He would not disclose names, titles or salaries.

He said the layoffs were attributable to the agency’s finances, not job performance. Many of the managers losing their jobs have been with the agency for years, Cote said.

‘‘It’s a difficult thing... For the most part, they understand. They wish it was different,’’ Cote said, talking about the staff. ’’

Cote arrived several weeks after Executive Director Sharon Smith left Road to Responsibility to work at Work Inc., a similar agency.

Cote has held a variety of positions in state government and has helped out when other organization have had financial issues.

Road to Responsiblity co-founder Catherine Walker, who served as acting CEO for several years, was moved into the position of chief operating officer, Cote said. Her husband, Richard Walker, the organization’s president, went on medical leave in November 2005 because of orthopedic problems.

Catherine Walker said Tuesday that she could not comment on the organizational changes.

The chairman of the agency’s board of directors, Frank L. Davis III, did not return phone calls Tuesday evening.

Cote said he is advising Road to Responsibility in its response to the Department of Mental Retardation’s inquiries. He said he would be meeting with representatives from the state auditor’s office today.

‘‘I’m here to make sure that the organization is operating in the best interest of the people we serve,’’ he said. ‘‘I’m focusing on trying to emphasize the good things that were part of Rick’s vision for the agency and help work out some of the areas that need help.’’

Sydney Schwartz may be reached at sschwartz@ledger.com .

Copyright 2007 The Patriot Ledger
Transmitted Wednesday, November 07, 2007