A local youth music program with a national following has suspended its director and is trying to account for discrepancies in its bookkeeping.

The Lab Band Program Association was founded by Greg Young 16 years ago as a way to introduce teenagers to swing band and jazz music. Under his direction, hundreds of students have joined its ranks and done well. Performing at music festivals in Oregon, California and Idaho, the group has developed a positive reputation. The group’s signature ensemble has been named the No. 1 youth band in the nation at the Sacramento Jazz Jubilee four years in a row.

But along with Lab Band’s success, there are now questions about the handling of the nonprofit corporation’s finances. At this point, board members won’t say whether wrongdoing is involved in discrepancies in the bookkeeping.

“We don’t want to make accusations that can’t be substantiated,” said Mark Daily, vice president of the Lab Band’s board of directors, noting the group has a nonprofit lawyer from Portland consulting the board.

According to officials, the concerns are not new.

There had been rumors within the Lab Band community for some time, Daily said, but nothing came of them.

The board was working with CPA Michael Gordon to institute a financial plan that would help the Lab Band apply for grants, Daily said. In June, board members learned of information that gave them cause for concern.

“Things came to light that suggested we had to have the group’s bank accounts in our control,” Daily said.

Previously, Young and his wife, Patricia, handled those accounts.

After taking over financial control of the organization, the board spent three or four weeks investigating.

Ray Sanford, president of the Lab Band, said the directors discussed discrepancies in the group’s books with Young.

Then, on Aug. 8, the board shared what it had found with parents of band members, though both Daily and Sanford have declined to do the same with The World.

The reaction from parents was mixed, Daily said.

“Some seemed forgiving. Others were not,” he said.

The association’s board of directors put Young on a leave of absence pending the conclusion of its internal investigation.

Young declined to comment about the situation, saying he first wished to speak with legal counsel. He didn’t answer calls to his cell phone last night or this morning.

A second board of directors meeting was held last Friday to get input from the general membership, Sanford said. Young spoke at the meeting and gave several options for the board to consider. Sanford said the board was scheduled to hold a meeting Tuesday night to consider how to proceed. However, this morning Sanford said it had been canceled.

“There was a mix up last night as to who was supposed to be at the meeting and it did not take place,” Sanford said.

For now, the group’s financial concerns have been put to rest, Daily said.

“Any bleeding has stopped,” he said. “Now it is just a very big emotional situation we have to deal with.”

The Lab Band has a budget of about $50,000, Sanford said, with no paid positions. Members pay $10 a month to participate, with additional funds coming from donations, performances and sales of CDs and DVDs. There are about 100 playing members spread between three bands of varying skill levels.

Sanford said the board is considering a reorganization of the group’s personnel in addition to its financial restructuring. In Young’s absence, the band’s senior students are leading rehearsals. The 15-member board, which includes four students, could decide to hire a new director or give Young time off before returning at a later date, Sanford said. There also is talk of creating a chief executive officer position.

For now, the one certainty is that there will continue to be a Lab Band, said Daily. The group continues to hold rehearsals Mondays and Wednesdays and there are plans to have a performance at the Egyptian Theatre this Saturday during the Blackberry Arts Festival.

“The Lab Band needs support now more than ever,” Daily said.