This is from my Way-Back Machine at the USCF's Forum. An oldie but goodie from 1/1/2007. Post 25787.
Thanks for the audit reports. I did look up the ones going back to 2002. Just a few comments. I note that all of the reports for all years was unqualified. This meant that the auditors found nothing materially wrong with the financials. If there were significant missing moneys, then that would have been noted somewhere - especially if they were in the ballpark of millions of dollars. There were no internal control reports - that dispenses with that issue. There should have been management reports, too. Those are not normally made available to the public.
I know that this next may stick in your craw but the Executive Board members should be given access to those reports. That's the price of having SS on the board. I don't mean to be troublesome here, just fair. I don't think there's a legal requirement for that, that's just my opinion.
I note that the building and land in TN is valued at near the price SS claimed was paid for it. The FY 2006 financials noted that the land was appraised but the building was not. Professional appraisers as a rule value property based upon all relevant factors. If encumbrances had the effect of significantly reducing the re-sale value aka the fair market value of the land, then the appraisers should have included that in their appraisal. Accounting rules require that assets be recorded at the lower of cost or market. Since the auditor did not write down the HQ in Crossville, this supports Joel Chandler's explanations and not Sam Sloan's. That should dispense with that issue. The building will be appraised this year. I do wonder why the building and land weren't both appraised at the same time.
I note that the 2005 report is marked "draft". This looks bad. You really should get the final version of the report up, even if it has no changes from the draft version.
Summary: the audit reports do not support Sam Sloan's allegations.*
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* He was claiming $3 million were missing from the treasury.
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It is good of you to put back up this three-year-old comment.
ReplyDeleteYou were proven wrong when you wrote, "Since the auditor did not write down the HQ in Crossville, this supports Joel Chandler's explanations and not Sam Sloan's. That should dispense with that issue. The building will be appraised this year. I do wonder why the building and land weren't both appraised at the same time."
In fact, not only was the building not appraised that year but it has never been appraised at all to this day. Also, there is still not explanation of what happened to the $2 million that was in the LMA Account in August 1999 that had completely vanished by August 2003.
The Real Sam Sloan
This is actually a very good point. Was the building appraised? If anyone knows about this, will you please post here?
ReplyDeleteThe USCF did indeed renig on that. Decided that the cost of the appraisel would be too high.
ReplyDelete