[Vision2020] Chamber president: No audit needed

Fri Oct 15 19:04:23 PDT 2004

Kimmell was exonerated?
Let me see if I got this straight....
1. Questions abound regarding Chamber solvency and financial reporting.
2. The Chamber board orders a financial review.
3. The Chamber staff arranges a member/public meeting to unveil the results of the review.
4. At this member meeting, the results of the review are not released, since the review has not been completed.
5. The Chamber president says no audit is needed because the review has not revealed any problems.

Does anyone else find that situation bizarre?  Does anyone else think it sounds much like declaring the defendant innocent while the jury is still deliberating?  Or maybe like giving the student an "A" while that student is still finishing up the final?
To me it sounds like a cover-up by an organization that has no interest in an audit, straightening out its finances, or rebuilding its reputation.
This is not the kind of organization that I want to receive my tax dollars, as funneled through the city, county, school district and university.
BL
  ----- Original Message ----- 
  From: Dale Courtney 
  To: vision2020 at moscow.com 
  Cc: Dave Glasebrook ; abkulbe at hotmail.com ; Jack Van Deventer ; Donn Morse ; r.contender at juno.com ; Roy Atwood ; Wes ; Greg Dickison ; Mike Hall ; John Carnahan ; Joe Myers ; Keith Deimler ; Doug Wilson ; Doug Farris ; Dale Courtney ; John Moss ; scottwmcd at hotmail.com ; thumper at mail.wsu.edu 
  Sent: Friday, October 15, 2004 4:42 PM
  Subject: [Vision2020] Chamber president: No audit needed 

  Kimmell exonerated... 
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  Chamber president: No audit needed 

  Alexis Bacharach

  An ongoing review of chamber finances has identified no evidence of financial mismanagement, Moscow Chamber of Commerce President Janice McMillan said. 
  The review was supposed to be released Thursday to chamber members and other interested members of the public, but McMillan said accountants from Hayden, Ross & Co. still are compiling information. 

  She confirmed there are concerns about the organization's finances, noting a $20,000 shortfall in accounts receivable. Chamber board members anticipate that deficit will be zeroed out within the month, McMillan said. 

  "We have about $20,000 worth of travel money that is still out there," she added. "If you don't understand the budget then yes, it looks like we have a problem." 

  The chamber's financial statements showed a number of irregularities over the past year, including a $74,000 deficit in retained earnings - money that accumulates over the course of a business' operations. 

  McMillan said board members questioned the accuracy of the chamber's financial information and hired accountants from Hayden, Ross & Co. in Moscow to perform a financial review. 

  "If there appeared to be a problem over the course of the review, we agreed an audit would be performed," McMillan said. "So far, we've found nothing that suggests a full audit is necessary. We decided to start with a review because they are less expensive." 

  Accountants reviewed the chamber's finances from 2001 through the current budget month and are preparing comments to accompany the review. 

  Chamber officials expect the review will be complete sometime next week. 

  "We had hoped to have our review ready for tonight, but the school district's audit took priority over ours," McMillan explained on Thursday to a group of interested chamber and community members. "We will post our audit review for comment as soon as it is completed." 

  Officials gave a presentation on the chamber's role and mission instead of discussing the financial issues, which Executive Director Paul Kimmell noted was the main reason people attended Thursday's meeting. 

  "I know there is concern about the finances which is why many of you are here tonight," Kimmell said. "We understand your concerns. We take our finances very seriously and are constantly looking for ways to streamline this organization." 

  Kimmell said the chamber is taking a number of steps to improve checks and balances with the organization's financial dealings. Board members have agreed that should funds be available, accountants will be hired to perform annual financial reviews. The board also is in the process of appointing a separate board for the chamber's foundation. 

  Questions have been raised in recent months as to whether chamber board members also should serve as foundation board members. 

  The chamber and the foundation are governed by the same board. 

  McMillan said the dual role might be viewed as a conflict of interest when money and other compensatory items are exchanged between the foundation and the chamber. 

  According to foundation and chamber financial statements, more than $8,000 has moved between the organizations to pay property management expenses for the chamber's Commerce Center. 

  McMillan said the appointment of a second board would make everybody's job less confusing. 

  "Back in 2002, during the purchase of the building, Avista agreed to sell at lower than market value with some trade-offs. The foundation really can't provide those services, but, thinking with their chamber board hats, they committed the chamber to that," McMillan explained. "Perhaps, because they made that commitment, if you had a separate board someone might have said 'wait a minute, can we really do this?' We are a big enough organization to have two boards. It's just a good way to separate the two, perhaps when we are looking at issues it will be one more opportunity to stop and think." 

  McMillan said she is satisfied with the steps the board has taken to ensure the chamber is financially solvent. 

  "You have to understand there are ebbs and flows in chamber finances," she said. "We provided our auditors with all the financial information, and we will share the results of the review as soon we have them." 

  Alexis Bacharach can be reached at (208) 882-5561, ext. 234, or by e-mail at abacharach at dnews.com. 

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