<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=Content-Type content="text/html; charset=iso-8859-1">
<META content="MSHTML 6.00.2900.2523" name=GENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=#ffffff>
<DIV>
<H2><FONT size=3>Kimmell exonerated...
<HR>
</FONT></H2>
<H2>Chamber president: No audit needed </H2><BR>
<ADDRESS>Alexis Bacharach</ADDRESS><BR>An ongoing review of chamber finances has
identified no evidence of financial mismanagement, Moscow Chamber of Commerce
President Janice McMillan said.
<P>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.
<P>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.
<P>"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."
<P>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.
<P>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.
<P>"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."
<P>Accountants reviewed the chamber's finances from 2001 through the current
budget month and are preparing comments to accompany the review.
<P>Chamber officials expect the review will be complete sometime next week.
<P>"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."
<P>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.
<P>"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."
<P>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.
<P>Questions have been raised in recent months as to whether chamber board
members also should serve as foundation board members.
<P>The chamber and the foundation are governed by the same board.
<P>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.
<P>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.
<P>McMillan said the appointment of a second board would make everybody's job
less confusing.
<P>"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."
<P>McMillan said she is satisfied with the steps the board has taken to ensure
the chamber is financially solvent.
<P>"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."
<P>
<P>Alexis Bacharach can be reached at (208) 882-5561, ext. 234, or by e-mail at
abacharach@dnews.com. </P></DIV></BODY></HTML>