November 2018 – Nonprofit update.

Court filings in California AG’s cease and desist order against three charities

I’m reading through the filings for the AG’s cease and desist order against MAP International, Catholic Medical Mission Board, and Food for the Poor. The hearing on the order is underway this week. It will continue for the next two weeks, according to the schedule.

Although the filings are public information, they are not available on the Internet. Instead, they must be obtained directly from the state. It took several phone calls, and getting forwarded to another office, but I did reach the person responsible for responding to media requests. When I finally reached the right person, she was extremely helpful and very prompt.

So, I now have a huge amount of reading to do.

As time is available over the next few days and weeks I will comment on different things visible in the filings.

A few preliminary thoughts.

This is a major battle. The charities are responding accordingly.

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November 30, 2018, 3:03 pmJim Ulvog

Hearings start tomorrow on California AG’s Cease and Desist Orders against three charities

Calendar at the Office of Administrative Hearing’s website still shows the appeal hearings on the AG’s Cease and Desist Order start tomorrow, November 27, at 10 a.m. in downtown Los Angeles. Hearings continue the next 14 days at 9 a.m.

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November 26, 2018, 7:55 amJim Ulvog

A hearty thank you to the medical community on this Thanksgiving day

There will be empty chairs at three holiday meals today. My deepest condolences to the families. Image courtesy of Adobe Stock.

My family is both deeply grieving and so thankful this Thanksgiving.

We are grieving because there will be an empty chair at three different holiday meals today in Bismarck, North Dakota.

We are thankful for many things, including the wonderful medical care provided to my dad and our infant grandson. My dad’s story is for another day. Today, a few thoughts about our grandson.

About eight months ago, our grandson and granddaughter were born early. He was not only underweight but also gasping for every breath he took. (My wife and I flew to Williston a couple of days after they were delivered.)

Born in Williston, North Dakota, he desperately needed attention available in Bismarck at the Neo-natal Intensive Care Unit at CHI St. Alexius Hospital.

Making a four-hour drive would have been life threatening. Staying in Williston would have been too dangerous.

A medical airlift moved him to the care he needed.

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November 22, 2018, 7:48 pmNovember 22, 2018, 7:58 pmJim Ulvog

Comments in financial statements of three charities appealing California AG’s Cease and Desist Order. Part 3 of 3.

Appeals of the AG’s C&D Order will be heard by an administrative law judge. Image courtesy of Adobe Stock.

There are a number of pieces of information of public interest in the most recent financial statements for the three charities who received cease and desist orders from the California Attorney General. The appeal hearings start in a week, on November 27, 2018.

Part 1 of this series provided background, an executive summary, and a short discussion of Catholic Medical Mission Board’s disclosed accounting policy. Part 2 discussed the Food for the Poor financials.

This post will discuss the MAP International financials. Might want to get a fresh cup of coffee since this is a long read because it quotes the accounting policy in 2017 and 2016 along with a transition comment from the 2014 financials.

Previous post discussed the 12/31/16 financials for FftP, 9/30/17 financials for CMMB, and 9/30/16 financials for MAP. FftP and MAP have since issued their next year’s report; CMMB has not.

MAP International

The 9/30/16 financials were available for issue on February 2, 2017, about 4 months after year-end.

The audited financials for the year ending September 30, 2017 have a date on the audit report of September 27, 2018. That means the 9/30/17 financials were released, or available for issue, on 9/27/18, about twelve months after the fiscal year-end. Audit report is from the Lawrenceville, Georgia office of Capin Crouse.

This means the 2017 financials were prepared with knowledge of the AG’s allegations and known status of the case as of September 2018.

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November 20, 2018, 7:05 amJim Ulvog

Comments in financial statements of three charities appealing California AG’s Cease and Desist Order. Part 2.

At issue in the AG’s claim: how should pallets of donated meds be valued if restricted by donor for distribution overseas? Image courtesy of Adobe Stock.

Part 1 of this series provided background, an executive summary, and a short discussion of CMMB’s financials. This post discusses the Food for the Poor (FftP) financials. Part 3 will discuss the MAP financials.

Previous post discussed the 12/31/16 financials for FftP, 9/30/17 financials for CMMB, and 9/30/16 financials for MAP. FftP and MAP have since issued their next year’s report; CMMB has not.

Food for the Poor

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November 19, 2018, 8:24 amNovember 20, 2018, 7:07 amJim Ulvog

Comments in financial statements of three charities appealing California AG’s Cease and Desist Order. Part 1 of 3.

Just checked on the most recent financial statements for the three charities who received cease and desist orders from the California Attorney General. The appeal hearings start in a week, on November 27, 2018.

Found a number of pieces of information in the financials that are of public interest to this developing story. Will point out some of the information now. Later on, as time allows, I’ll provide some commentary on the disclosures.

Previous post discussed the 12/31/16 financials for FftP, 9/30/17 financials for CMMB, and 9/30/16 financials for MAP. FftP and MAP have since issued their next year’s report; CMMB has not.

This discussion will be in three parts.

Executive Summary

All three charities disclose they use wholesale acquisition cost (WAC) to value donated medicine.

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November 17, 2018, 10:03 amNovember 20, 2018, 7:08 amJim Ulvog