When officials discovered nearly $7,000 was missing from a Leola family counseling service, they confronted the person in charge.
Philip E. Hershey, the administrative director of COBYS Family Services, admitted that he had stolen the money, police said.
But Hershey told them to look further back into the records because he had stolen more money than they knew for a longer period of time, according to police.
Manheim Township police last week arrested Hershey, 47, of South Hillcrest Avenue, Quarryville, and charged him with one count of theft.
He is accused of stealing $13,646 over a four-year period from COBYS Family Services, 1417 Oregon Road.
Hershey, who was the administrative director of the nonprofit organization, was arraigned before District Judge David Miller and released on bail.
Hershey was asked to resign from his position in July, according to Whit Buckwalter, president of COBYS Family Services board of directors.
COBYS, which stands for Church of the Brethren Youth Services, provides a variety of family services, including counseling, education, adoptions and foster care.
According to court documents, COBYS officials contacted police about one month ago after an audit of financial records between January 2008 and June 2009, determining that there was a discrepancy $6,576.
Some of the difference, police said, was a $4,476 discrepancy between the receipts for fundraising events and counseling services performed, compared with the deposits submitted.
Additionally, other parts of the audit revealed that Hershey had allegedly taken $2,100 of COBYS funds to buy personal items, according to court documents.
When township police Detective Keith Kreider confronted Hershey, according to an affidavit, he "admitted to taking funds … and indicated that he was responsible for the $7,789.40 discovered by the audit."
But there was more.
Hershey told police "he had taken additional funds from the organization," and suggested "that another audit should be performed starting in 2005."
A second audit was performed from July 2005 to January 2008, police said, finding an additional $5,857 that was missing.
When confronted with the results of the audit, police said, Hershey admitted he was responsible for all the missing money.
Buckwalter, in a prepared statement released Tuesday, said the board had asked Hershey to resign in July after enlisting an independent accounting firm "to help determine the scope of Mr. Hershey's financial mismanagement."
After receiving the accountants' report and talking with Hershey, the board "agreed that the most responsible course of action was to turn the matter over to the police."
"The board continues to be concerned about the well-being of Hershey and his family," Buckwalter wrote.
"Despite Hershey's actions, COBYS remains an extremely healthy organization, both financially and operationally.
"This financial loss has not adversely affected COBYS' ability to provide services to children and families. A search committee is in the process of hiring a new executive director to lead the organization."