"Chess One" wrote
but aren't you going to comment about my
'rash CPA's'? surely there are some!
i mean the guys who wear colored shirts, eg



Who, like me?

I haven't worn a tie in over a dozen years, 'cept to funerals and weddings.






Without more details, no one can competently discuss any of the audit
adjustments. By the way, how much do you pay the auditors anyway?

We're sorry, financial matters are secret,



Actually they shouldn't be, and there may be a legal and statutory
obligation to disclose to the members at a minimum, if not at the "open to
the public" level. Not that that means drill-down details and all, but
there should be reasonable access to the records. Not that, as I fear, all
who ask will understand what they see.

Like I said, I've dealt with enough non-profits to know how it works.






except if you ask the auditors.


Well, they'd not be obligated to disclose, and most likely wouldn't, except
to the audit committee or the board of directors. You really don't want the
auditors fielding questions from the members as the billings for that time
could break the bank.





Names of the auditors are secret and so is their report
except to the board of the 'membership organisation' ;(



Their name should be known to the members.






But lookee here! Since you are a CPA and possibly gullible enough to give
free advice, what is the precedent for a non-profit forgiving a for-profit
its debt without any security or recovery of that debt? Let's say the
amount is about $150,000 and the non-profit in a monopoly situation.




The NFP would be required to issue a 1099-C for the cancellation of the
debt.

The FP entity would have taxable income in most cases.

Then the board would have a fiduciary responsibility to not do business with
that entity in the future.







The board members know they are at risk for their decisions, both
financially and legally, right?

They can be sued for mismanagement, and even charged with criminal activity
if that's the case. That's why you do all you can when it comes to "full
disclosure", in the light of protecting certain details on personnel and the
like.





Y'all need to find a geeky attorney to join the board.





--
Paul A. Thomas, CPA
Athens, Georgia