Check out this set of financial statements to see a live example of the pharmaceutical GIK issues – part 6

October 1, 2012, 8:41 am

This is the final post in a series that has looked at the 2011 financial statements for Blessings International as an opportunity to see where the donated GIK issues show up in an R&D NPO’s financials. 

Again, the goal is not to focus attention on this particular organization, but to look at the impact of donated GIK on the financial statements.

You can download a copy of the full 990 and audited financial statements for the last 3 years from the organizations website, located here. Give them credit for making three years of reports easily available. Most NPOs only put 1 year on their website.

What would the financials look like without the GIK?

Let’s do some number crunching.

In a cover letter to the financial statements on the organization’s website, the president says:

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Check out this set of financial statements to see a live example of the pharmaceutical GIK issues – part 5

September 28, 2012, 11:03 am

This series of posts looks at the issues surrounding valuation of GIK medication in the nonprofit community that have been getting attention lately by seeing how those issues present themselves in one set of financial statements. 

See the first post in this series for tips on downloading a copy of the full 990 and audited financial statements.

I just checked their website today and found it is up and operating. You can find their last 3 audited financial statements here and the last three 990s here.

The 2011 financial statements have the cover letter from Dr. Harder indicating the ministry will use cost for 2012.

Kudos to the organization for making the reports for the last three years easily available on their website. 

As I’ve mentioned before, the goal is to see a live set of financials that lets us see the issues, not to pick on any particular NPO.

Supplemental schedule

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Check out this set of financial statements to see a live example of the pharmaceutical GIK issues – part 4

September 24, 2012, 9:07 am

This series of posts looks at the issues surrounding valuation of GIK medication in the nonprofit community that have been getting attention lately.  We are looking at how those issues can be seen in one specific set of financial statements. 

See the first post in this series for ideas on downloading a copy of the full 990 and audited financial statements.

This post continues a discussion of note 3 regarding valuation of purchased meds. See previous post for text of the note.

Note 3 – continued discussion

As mentioned earlier, Note 1 says the “bulk” of medicines were purchased from two  overseas suppliers.

Note 3 indicates the

..majority of the value of the Ministry’s pharmaceutical products are not legally permissible to be sold in the United States..

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Check out this set of financial statements to see a live example of the pharmaceutical GIK issues – part 2

September 19, 2012, 9:42 am

This series of posts looks at the issues surrounding valuation of GIK medication in the nonprofit community that have been getting attention lately.  The 2011 financial statements for Blessings International illustrate these issues.  This series show how those issues appear in one set of financial statements. 

See the first post in this series for suggestions on how to download a copy of the full 990 and audited financial statements.

Statement of activity

The statement of activity is presented on the “pancake” method, which means that all of the unrestricted activity is listed first followed by the temporarily restricted items. To find out the amount of total revenue requires doing some math. Total revenue for 2011 is $61.25M (calculated as $3.36 plus $57.82 plus $0.07). Total revenue for 2010 is $39.0.

Donated meds are $57.8 in 2011, which is 94.4% of total revenue.

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Check out this set of financial statements to see a live example of the pharmaceutical GIK issues – part 1

September 17, 2012, 7:18 am

If you want to see an illustration of the issues surrounding valuation of GIK meds, check out the 2011 financial statements for Blessings International.  Many of the issues in discussion around the NPO community are visible in these financials.

This series of posts will be in 6 parts which will be posted over the next two weeks or so.

Their website went down a few weeks ago, so you can’t get the 990 or financial statements from their site. It is in operation again but only with a few pages working. You can find their website here.

You can find their 990 and audited financial statement for 2011 at the North Carolina Secretary of State’s web site. The specific page is here.

In case that link doesn’t work, you can go to the NC Secretary’s web site and use their search page, which is here.

Cover letter

Some time ago when the Blessings International website was up, I read a cover letter from the NPO’s president which was attached to the audited financial statements.  The report at the NC SoS site does not have that cover letter.  I will quote from the copy of the report I downloaded at the time. 

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CPA withholds clean opinion from NPO that values GIK meds at AWP

August 15, 2012, 1:36 pm

Hood Sutton Robinson & Freeman CPAs, P.C. are the auditors for Blessings International. The firm issued a qualified opinion on the NPO’s financial statements for the years ended August 31, 2011 and 2010.

The reason for the qualified opinion is that purchased medicines are valued at Average Wholesale Price instead of the wholesale exit price in the principal market. The specific paragraph in the audit report reads: Read the rest of this entry »