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Las Vegas, NV (KTNV) -- Possible violations of law, missing records and misappropriation of funds. Those are the findings of an audit following the money trail for the Nevada Partnership for Homeless Youth.

The forensic audit released today stemmed from accusations made against the charity's founder -- former Henderson City Councilwoman Kathleen Vermillion. She's been accused of using the charity like her own personal ATM.

The organization that was once a rising star in our community has fallen from grace under Vermillion's leadership.  And the embattled former public official has fallen far herself -- landing in the hospital after combining alcohol and prescription drugs.

"I have been very quiet about this and focused on myself and I'm healthier now and I'm stronger now and I am gonna fight back if it takes the last breath out of me because I have had it.  Enough is enough," Vermillion said at a press conference.

Vermillion founded the Nevada Partnership for Homeless Youth and it's fundraising arm -- the Homeless Youth Foundation. It's the latter that's the subject of a nearly 800-page audit that examined expenditures from December, 2009 to December, 2011.

"The truth absolutely has to come out in its entirety," Vermillion said.

Vermillion took a lie detector test to try to clear her name and is fighting back against the auditor's findings.

"Nowhere in this report does it mention me by name as being guilty of any type of misappropriation.  So I'm very disappointed in the way that this was conducted."

The debit and credit cards are in her name. It's her signature on most of the receipts for all kinds of expenditures.

Contact 13 obtained the records and they read like a restaurant tour of Las Vegas -- from Starbucks to Hooters and from Brio to McCormick & Schmicks to a wine bar in Town Square. 

She also went to Target, Old Navy, Forever 21, a nail salon and a jewelry store all in one day and all on foundation funds.

It's those "personal like" expenditures the auditor says should be of concern because they appear to be outside the organization's mission.

He says Vermillion's actions could violate criminal and/or civil laws. Vermillion says it was all about the kids.

"These kids are very well taken care of and they'll tell you that themselves.  They are spoiled beyond belief."

But if that's the case, the auditor says he couldn't prove it because so many receipts were missing and records were incomplete.

"The documentation should be there, I mean, I'm not sure why it wouldn't be," Vermillion said.

Vermillion says she's got additional receipts and has tried to turn them over, but the Partnership wouldn't respond and the auditor never reached out to her.

She fears the charity's mission of providing shelter and resources to kids on the street has been compromised by all the negative attention.

"If it collapses, what's gonna happen to all those children who are just off the street and just finally found a piece of stability?" said Yoshi Cooper.  The now-24-year-old artist is one of two young men and former NPHY clients who defended Vermillion at the press conference she held.

"I'm implicated in all this at the end of the day. I'm gonna come back and fight back strong because I'm tired of all the... you know, enough is enough," Vermillion told reporters.

The auditor highlights a number of concerns, including a November 2011 trip to Esalen Institute for Yoga and Meditation in California. He also questions spa expenses at the M Resort.

"Last June, the Board of Directors for the Partnership decided that they were going to have -- and this is what they're not gonna tell you guys -- they decided that they were going to have their annual board retreat at the M Resort," Vermillion explained. 

"I was instructed by the Board Chairman, Colin Seale at the time, to purchase spa passes at the M Resort for all of the wives, including Mr. Simmons, so they could go to the spa and access the pool during the day while we were in work session.  There's always two sides to every story."

Board Chairman John Simmons wouldn't give his side on camera for this story. He sent a statement saying Vermillion is waging "preposterous personal attacks."

As for other expenses, the auditor says that most, if not all, gas receipts were not approved and most restaurant expenditures were likely not for foundation business purposes.

He highlights ATM cash withdrawals that have no supporting documentation and says payment of personal bills (such as phone, spas, travel, meals, etc.) could put the organization in jeopardy.

Vermillion says the audit is incomplete and she plans to file complaints with the Internal Revenue Service.

"One of which is that they're using the kids for manual labor in exchange for services."

She suggested the Partnership is requiring kids to renovate the drop-in center in exchange for services. The partnership calls her accusations "patently false."

The auditor told board members he'd recommend legal action to attempt to recover funds that were inappropriately spent.

The charity board has turned over the audit findings to Metro, the Attorney General and the FBI.

And they're continuing with the next step, which is to audit the Partnership itself.