Go to
http://www.revenue.state.il.us/legalinform...s/pt/pt04-1.pdf to read the full document and verify what I have posted.
The words in quotes are not my words. They are words from the 3ABN vs IL State Ptoperty Tax Lawsuit and the 2001 IRS Form 990
STATE OF ILLINOIS
DEPARTMENT OF REVENUE
OFFICE OF ADMINISTRATIVE HEARINGS
SPRINGFIELD, ILLINOIS
3 ANGELS BROADCASTING NETWORK
Vs.
THE DEPARTMENT OF REVENUE
OF THE STATE OF ILLINOIS
Page 17 # 61 Under subtitle Financial Information beginning on page 15
61. The Independent Auditor’s Reports for 2000 and 2001 state:
Dowlink equipment acquired by gift is not recorded in the financial statements. In our opinion, generally accepted accounting principles require that such donated property be recorded at its fair value at the date of receipt. It was not practicable to determine the effects of the unrecorded equipment on the financial statements.
In connection with the recording of real estate revocable trusts, the fair values of the trusts were based on internal estimates performed by the organization. We were unable to obtain sufficient evidential matter in connection with the estimates of fair value.14 (Applicant’s Ex. Nos. 14,15)15
14 The financial report for 2000 contains additional concerns found by the independent auditors.
15 Applicant’s financial reports raise additional questions and concerns. For example, the unrecorded contribution
revenue related to charitable gift annuity agreements were not recorded in conformance with generally accepted
accounting principles. The “related party transactions” were acknowledged without identifying the parties. The notes
refer to “split interest agreements,” where applicant received the assets funding the trusts and applicant is to pay
certain amounts for specified periods of time to the donors. There is nothing in the record to identify the donors or
the assets. None of the trust agreements were supplied. (Applicant’s Ex. Nos. 14, 15)
Foot notes:
(The 2001 Form 990 has 5 pages of notes attached to the return.)
Page 1; Statement 2
Form 990, Part I, Line 20
Other Changes in net Assets or Fund Balances
Record Split Interest Agreements previously
unrecorded------------------------------------------------------------------- $2,451,034
Reclassification of amounts due to Other Ministries previously classified as
Temporarily Restricted-------------------------------------------------------$(14,282)
Net Unrealized Gains on Marketable Securities---------------- ---------$13.862
Total Changes in Net Assets or Fund Balance-------------------------$2,450,614
Money Received for other ministries is NEVER INCOME! It is a Liability.
It is a Liability because it is Income for someone else and is to only be held until forwarded to the other ministries. Once that is done, the Liability is cleared. These Liabilities should appear on the Balance Sheet Statement. It should not appear on the 3ABN Income/Loss Statement as it did
This is exactly what I felt would happen to donations that were sent to 3ABN for ADRA. Funds are posted incorrectly and get lost in 3ABN's funds. The other ministry has no idea a donation has been made. That $14, 282 belonged to someone else. This is the amount that maybe the audit found or the Treasurer of 3ABN found. This is why I suggest you always make your donations directly to the ministry you desire.
Does everyone understand what this means? “Other Changes in net Assets or Fund Balances” is where the auditors have made correction entries for the Balance Sheet.
It is where Tax Accountants make changes in fund balances to reflect what actually was. The above are from the final numbers submitted to the IRS Form 990 for 2001. This Form is a Non-Profit Organizations Financial Statement in the form of a Tax Return that must be filed on a yearly basis. These are audited figures. These are supposed to audited by independent auditors.
Split Interest Agreements are:
The notes refer to “split interest agreements,” where applicant received the assets funding the trusts and applicant is to pay certain amounts for specified periods of time to the donors. There is nothing in the record to identify the donors or the assets. None of the trust agreements were supplied.
These facts stated in the Lawsuit and the Form 990 clearly tell us the financial Statements are not presented accurately. How can I, as an end user, use these reports and have confidence when auditors clearly state that the most basic Generally Accepted Accounting Practices are not being followed by 3ABN.
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The greatest want of the world is the want of men-- men who will not be bought or sold, men who in their inmost souls are true and honest, men who do not fear to call sin by its right name, men whose conscience is as true to duty as the needle to the pole, men who will stand for the right though the heavens fall. {Ed 57.3}
But such a character is not the result of accident; it is not due to special favors or endowments of Providence. A noble character is the result of self-discipline, of the subjection of the lower to the higher nature--the surrender of self for the service of love to God and man. {Ed 57.4}
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Topic: 3ABN vs IL State Property Tax Lawsuit (Read 52393 times)
