http://nonprofitupdate.info/2012/08/15/cpa-withholds-clean-opinion-from-npo-that-values-gik-meds-at-awp/ Nonprofit finance, accounting, and tax news Fri, 24 May 2013 14:37:18 +0000 hourly 1 http://wordpress.com/ http://nonprofitupdate.info/2012/08/15/cpa-withholds-clean-opinion-from-npo-that-values-gik-meds-at-awp/#comment-3109 Wed, 15 Aug 2012 23:38:55 +0000 http://ulvog.wordpress.com/?p=2786#comment-3109 I agree. Furthermore, I think the cost of the purchases is visible on the 990. That makes the overall markup 33x the amount paid. The same note also says all the meds obtained in 2011 and 2010 were bargain purchases. No outright donations. There is still much to discuss in the financial statements.

]]> http://nonprofitupdate.info/2012/08/15/cpa-withholds-clean-opinion-from-npo-that-values-gik-meds-at-awp/#comment-3107 Wed, 15 Aug 2012 21:10:23 +0000 http://ulvog.wordpress.com/?p=2786#comment-3107 What’s even more interesting to me is the statement in Footnote No. 3 of the audited financial statement that “bargain purchase prices … have historical been equated to donations.” This seems to be an explicit acknowledgment–the first time I have seen it in formal financials–that the nonprofit accounting industry long has covered up its open-market purchases of medical supplies by falsely calling them “donations.” This is huge!

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