[EternalVigilance]

Of the odd 400k raised it shows 144k for fundraising and and another 174k for "Professional Services". Do you know what this is or have a breakdown of these expenses?

Uhmmm...no. I'm neither an IRS agent nor an enemy of Simcox out to dig dirt so I can try to destroy him.

[Bob J]

"Uhmmm...no. I'm neither an IRS agent..."

Well, were not asking you be an IRS agent, just to help detail a little better some of these expenses. You've seem to have been inclined to do that for the broad brush accounts and the minor expenses but a little closer examination is needed to mop up some of the nagging questions...IMO.

I've been told that when a non profit bringing in substantial funds wants to bury what might be embarrassing expenses they do so under "Program Services". Kind of a nebulous catch all account that is difficult to nail down explanationwise.

Of course, during an IRS audit it's the first account they tear apart but up to that point it's a good grave for burying questionable items you don't want the public to see. For instance The "management salaries" account may show zero or next to nothing, but "program service" expenses could be checks written out to companies providing "services" that are owned by them or the principals in an effort to hide from the public how much they are actually benefiting from the organization. It's not illegal per se, but it is also not very truthful nor transparent.

So, we have two questions here, one, where is the accounting for the funds (1.7 million?) Simcox has alleged came in to build the fence, and two, what is the account detail and who are the entities who were written checks under the "program services" and "fundraising" accounts. Together they account for 320K of the 449K the reports say was raised and spent and that is over 70% of their expenses in 2005. They really should have a little more detail than just those two journal entries.

[Bob J]

One other note. I noticed on the 990 that MCDC chose to label that 174k "Program and Management Expenses" (I thought management expenses were only 5%?) but on the independent audit that you seem so proud of the label it "Professional Services".

Auditors are required to maintain a higher standard than company accountants and I think it is strange that when they saw those expenses,who they were going to and for what, they looked like Professional Services to them...not Program Services.