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<DIV><FONT face="Verdana Ref" size=4>all,</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>Sorry, there was a typo [italicized] in the
letter below posted earlier.</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>The sentence: "This means that none
of the basic financial data used to construct the revised chamber financials was
<EM>not</EM> closely examined for accuracy or validity. The chamber's
basic numbers were accepted basically without verification."</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>Should have read: "This means that none of
the basic financial data used to construct the revised chamber financials was
closely examined for accuracy or validity. The chamber's basic numbers
were accepted basically without verification."</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>The sentence is also corrected below in the
letter.</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>W.</FONT></DIV>
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A title=deco@moscow.com href="mailto:deco@moscow.com">Art Deco aka W. Fox</A>
</DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=vision2020@moscow.com
href="mailto:vision2020@moscow.com">Vision 2020</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Thursday, October 28, 2004 11:19
AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [Vision2020] Chamber
Squandered a Public Opportunity </DIV>
<DIV><BR></DIV>
<DIV><FONT face="Verdana Ref" size=4>Tom,</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>Thank you for posting this timely
editorial. However, the editorial appeared to contain at least one
serious error. Below is a letter I sent to the <EM>Daily News</EM>
concerning the editorial.</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>
<DIV><FONT face="Verdana Ref" size=4>Murf,</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>Thank you for your insightful editorial
yesterday on the Moscow Chamber of Commerce. It said part of what many
of us have long thought.</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>I think it likely that the editorial did
contain one quite misleading assertion:</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV>"The full audit didn't materialize but a review did. The review, by an
independent accounting firm, found nothing major enough to warrant a full
audit."</DIV>
<DIV> </DIV>
<DIV><FONT face="Verdana Ref" size=4>Nowhere in the narrative of the review
did the author say that a full audit was not necessary or desirable. As
far as I know, the only people to make that assertion are Janice McMillan and
Paul Kimmell. I have seen nothing that indicates that Hayden & Ross
said that a full audit would not be desirable. Word in the street is
that Jim Pilcher is not happy with some of the public representations about
the review that McMillan and Kimmell have made, including the lack of the
desirability of an audit.</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4><STRONG>In fact, a close reading of the
review indicates that very little was said about the chamber's financial
health or the quality of its financial management:</STRONG></FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" color=#ff0000>"All information included in these
[revised] financial statements is the representation of the management of the
Moscow Chamber of Commerce."</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>This means that none of the basic
financial data used to construct the revised chamber financials was closely
examined for accuracy or validity. The chamber's basic numbers were
accepted basically without verification.</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>Further, the review carefully
says:</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref">"Based on our review, we are not aware of any
material modifications that should be made to the accompanying financial
statements in order for them to be in conformity with accounting principles
generally accepted in the United States of America."</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>Combining the two statements, we are left
with the slim conclusion <STRONG><U><EM><FONT color=#ff0000>that if the data
is correct</FONT></EM></U></STRONG>, then the format of the
<STRONG><EM><U><FONT color=#ff0000>revised</FONT></U></EM></STRONG> chamber
Balance Sheet and Income/Activity Statements and calculations within that
format are within the bounds of "generally accepted accounting
practice." [Major news reports of the last few years which have
exposed the possible fraudulence that can be contained
under "generally accepted accounting practice" certainly do not make
such a statement very reassuring.]</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>Unfortunately, the review gave scant or
no explanations for the many changes that were made.</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4><STRONG>Further, the review given out to
the public did not contain any revised chamber foundation financials, without
which a total assessment of the chamber financial health is not
possible</STRONG>.</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>Nor did the review address the problem of
why a $148K discrepancy occurred in the previously published financials, why
net income ($75K) from revised FYE 2003 results was subtracted from
retained earnings instead of added, and how and for what reason were the
FYE 2003 results revised. In fact, if a I read the explanationless
review numbers correctly, the revised FYE 2003 results (which show a huge $75K
profit) were not used.</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>Nor were any revised financials for the
years 2001 - 2003 presented. All of these previous financials had
problems and misrepresented the financial health of the chamber. Without
these revised financials, it is not possible to make a complete assessment of
what has occurred financially or management-wise over the last four
years. [In fairness to Hayden & Ross, I do not know if such
revisions were part of the initial review agreement; if not, they should have
been.]</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>I do not think the <EM>Daily News</EM>
has done a fair or in-depth reporting of this entire important matter. I
delivered long ago to Nathan documents showing the $148K discrepancy and
The $75K retained earnings problem and the implications of such.</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>A more comprehensive analysis of the
chambers financials is now underway by really independent persons. It is
fair to say at this point that the management of the chamber has exhibited
egregiously inept financial knowledge and management. There remains the
possibility that even more sinister problems lurk.</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4></FONT> </DIV>
<DIV><FONT face="Verdana Ref" size=4>I hope that in the future the <EM>Daily
News</EM> will try to be more factually correct and balanced in their future
coverage of this matter. Such an action will eventually speed the
recovery of the chamber and help to eventually restore at least some of the
confidence, honor, and goodwill the chamber has lost.</FONT></DIV><FONT
face="Verdana Ref" size=4>
<DIV><BR>Wayne</DIV>
<DIV> </DIV>
<DIV>Wayne A. Fox<BR><A href="mailto:waf@moscow.com">waf@moscow.com</A><BR>PO
Box 9421<BR>Moscow, ID 83843<BR>208 882-7975</DIV>
<DIV> </DIV>
<DIV></FONT></DIV></FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4>----- Original Message ----- </FONT>
<DIV><FONT face="Verdana Ref" size=4>From: "Tom" <</FONT><A
href="mailto:thansen@moscow.com"><FONT face="Verdana Ref"
size=4>thansen@moscow.com</FONT></A><FONT face="Verdana Ref"
size=4>></FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4>To: <</FONT><A
href="mailto:vision2020@moscow.com"><FONT face="Verdana Ref"
size=4>vision2020@moscow.com</FONT></A><FONT face="Verdana Ref"
size=4>></FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4>Sent: Thursday, October 28, 2004 11:21
AM</FONT></DIV>
<DIV><FONT face="Verdana Ref" size=4>Subject: [Vision2020] Chamber Squandered
a Public Opportunity </FONT></DIV></DIV>
<DIV><FONT face="Verdana Ref"><BR><FONT size=4></FONT></FONT></DIV><FONT
face="Verdana Ref" size=4>| >From yesterday's (October 27, 2004)
Moscow-Pullman Daily News.<BR>| <BR>|
----------------------------------------------------------<BR>| <BR>| The
Moscow Chamber of Commerce is under no obligation to share its books with
<BR>| the public. <BR>| Like any private business or organization, it is
responsible to its members and <BR>| no one else. For the public to demand
otherwise could be an exercise in <BR>| futility. <BR>| <BR>| That said, the
chamber missed an excellent opportunity to be as up front as <BR>| possible
with the public and its members regarding questions about the <BR>| chamber's
finances. <BR>| <BR>| At issue were concerns by some chamber members that the
organization was in <BR>| financial trouble. Those concerned asked questions
but got no satisfactory <BR>| answers. <BR>| <BR>| They then asked the same
questions in the public arena. <BR>| <BR>| At that point, the chamber should
have taken the high road and answered all <BR>| questions to the members'
satisfaction. In so doing, the public also could have <BR>| been informed.
<BR>| <BR>| Instead, the chamber chose to keep tight-lipped until the hue and
cry got too <BR>| loud. <BR>| <BR>| An audit and public review were then
promised. <BR>| <BR>| The full audit didn't materialize but a review did. The
review, by an <BR>| independent accounting firm, found nothing major enough to
warrant a full <BR>| audit. <BR>| <BR>| "Can we be more fiscally responsible,"
said Paul Kimmell, the chamber's <BR>| executive director. "You bet." <BR>|
<BR>| Part of that responsibility is accountability to its members and, by
extension, <BR>| the public. <BR>| <BR>| The chamber is not a public
organization in a legal sense, but many of its <BR>| functions serve the
public good. <BR>| <BR>| Typically, a chamber of commerce is the first contact
a business or family has <BR>| with an area when they consider relocating.
<BR>| <BR>| Chambers in many cities and towns also serve as visitors' bureaus,
encouraging <BR>| tourism and that means money spent in area businesses. <BR>|
<BR>| Moscow's chamber is no different. It represents more than 450 business,
<BR>| organization and individual members. They all have a right to know if
their <BR>| dues are used wisely in the promotion of the businesses and the
area. <BR>| <BR>| The chamber must remember openness breeds trust and
goodwill. <BR>| <BR>| Right now, those are commodities the chamber sure could
use. <BR>| <BR>| <BR>| <BR>| <BR>| <BR>|
<BR>| <BR>| <BR>| ---------------------------------------------<BR>| This
message was sent by First Step
Internet.<BR>|
</FONT><A href="http://www.fsr.net/"><FONT face="Verdana Ref"
size=4>http://www.fsr.net/</FONT></A><BR><FONT face="Verdana Ref" size=4>|
<BR>| <BR>|
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<BR>| </FONT><A
href="mailto:Vision2020@moscow.com"><FONT face="Verdana Ref"
size=4>mailto:Vision2020@moscow.com</FONT></A><BR><FONT face="Verdana Ref"
size=4>| ŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻ<BR>|
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