Fault: The Brooklyn Careworks Is

¶ … Fault: The Brooklyn CareWorks is known as one of the longest serving mental health services agency that has been into existence for the last 100 years. While the organization has helped people in terms of the services offered and customer relations, things started to change at a certain point that resulted in its closure. Brooklyn CareWorks, being one of the agencies that were funded by the government in order to operate, could not receive any funds following realizations that it was not paying taxes, which lead to its closure.

The other things that led to this closure are the reimbursement collection dysfunctions and undiagnosed cancerous burden. Since Brooklyn CareWorks had all along been managed by the board of directors, they were found to be negligent in their duties. The gross negligence and breaches of the fiduciary duties forced the attorney of the creditors committee to file a lawsuit in which 13 members of the board of directors were found to be guilty.

The lawsuit was mainly based on the discovery that members of the board of directors were negligent or reluctant in their duties both in their individual and representative capacities. For example, these directors could not control the rate of debts incurred to an extent that creditors committee through their attorney went to court and sued the firm. In addition to these accusations, the attorney sought a judgment regarding the suitable amount for costs and disbursements.

Generally, lawsuits associated with gross negligence and breaches of fiduciary duties are usually the worst case nightmares that people who choose to serve voluntary directors on the governing boards of non-profit corporations are vulnerable to. For Brooklyn CareWorks, the negligence and breaches of fiduciary duties could have been prevented through appropriate measures. Similar to other nonprofit organizations, the governing board of the organization could have prevented the lawsuit or fraud through conducting its internal affairs appropriately in order to prevent the likelihood of the occurrence of similar situation.

Notably, the occurrence of such situations is usually prevented through various ways. One of the ways in which this gross negligence could have been prevented is through minimizing debts. We've seen that a lot of cash was borrowed from other firms including banks and they were never paid back their cash. The creditors decided that in order for them to get their money back they had to take action, which was to file case against the agency.

At this point Brooklyn CareWorks had no other source of obtaining funds, which forced it to close down. Secondly, the lawsuit could have been prevented through holding discussions between Brooklyn CareWorks board of directors and the creditors committee on the financial status of the agency. Through the discussions, the two parties could agree on how to control their finances and how the debtors can be sorted out.

The board of directors could have organized for workshops, seminars through which they could have been trained much more on how to run the organization and make profits. Moreover, the board of directors could have.