The board of Emerge Family Advocates on Monday agreed to resign as part of a settlement with Attorney General Bill Sorrell’s office after it filed suit against the board for failing to keep watch over Emerge’s finances, Sorrell’s office said.

The settlement also provides for a new board to be appointed as soon as possible and calls for an independent review of Emerge’s finances.

The board resigned after ensuring that essential services would be performed by a group of other nonprofits in the Upper Valley.

The suit claimed the board allowed the organization’s director to inflate her own salary, pay her expense reimbursements and mismanage money for years.

Emerge coordinates court-ordered supervised visits and supervised exchanges of children between parents. Sara Kobylenski, executive director of Upper Valley Haven, will consult with Emerge staff and other local organizations to provide the exchanges until Emerge can resume operations, according to Sorrell’s office.

“We were able to reach this agreement in part because of the strength and commitment of the Upper Valley nonprofit community and its dedication to the services Emerge provides,” Sorrell said in a news release.

The attorney general will appoint the new board from a list of candidates prepared by a nominating committee formed by members of other local nonprofits.

The financial review will consider “how Emerge may continue with its charitable mission given its financial position,” Sorrell’s office said.

Twitter: @laurakrantz. Laura Krantz is VTDigger's criminal justice and corrections reporter. She moved to VTDigger in January 2014 from MetroWest Daily, a Gatehouse Media newspaper based in Framingham,...