[Nfb-hi] SETTING THE FINANCIAL RECORDS STRAIGHT

[JT]

Public letter to the President and Treasurer of NFB of Hawaii State
Affiliate:

 

I regret not having the opportunity to attend the recent 2009 state
convention held on October 17 and 18, 2009 as I lost the opportunity to
address, on the convention floor,  a suggestive statement made by the
treasurer during the presentation of her treasurer's report for calendar
year 2008.

 

Several members have approached me to suggest that I, as treasurer for the
most part of 2008, may have kept incomplete records of the state's financial
portfolio. Having received several comments to this effect only led me to
believe that this interpretation may have been made by the general
membership.  It is my intent, through this forum to clear the record and any
misguided thoughts to criticize my accounting ethics.

 

The suggestive statement was such that the treasurer stated that she was
only able to report on what information she had to work with.

 

I have very strong accounting ethics, as the president should know and do
not take kindly to unsupported criticism of my ethics.  My reason for
resigning from the position of treasurer for because financial practices
under the leadership, in my professional opinion, was unethical.

 

I have been in the accounting field for most of my adult life.  I have
balanced bank vaults containing cash in excess of $500,000.00 and thousands
of bank accounts in one day for years.  I have had charge of many businesses
whose assets valued over $300,000.00 and monthly expenses ranging in the
$100,000.00.  In all of my years, my records have always been meticulous and
exact, down to the differences, if any.  All fiscal ending books were always
closed within the prescribed time and filed without delay or penalties.  I
take great pride in what I did for a living as I enjoyed this field.  The
president very well knows that I am policy oriented and uphold general
accounting principles and practices.

 

Handling the books for the state affiliate was peanuts in comparison to the
dollars and level of expenses.  The problem was that there was no internal
control of finances.  The president had full access to spending the funds
through credit cards without consulting or clearing the transaction with the
treasurer.  The president had full access to the bank accounts giving her
the opportunity to move funds between accounts without the treasurer's
knowledge.  All bank statements and transactions were solely controlled by
the president and as treasurer, it was very frustrating trying to determine
where funds came from and where to post them appropriately.  Trying to
comply with constitution deadlines were difficult when chapter treasurers
such as the state affiliate treasurer failed to submit information necessary
to provide an accurate posting of income and expenses in accordance to the
revised national guidelines.  In fiscal year 2007 alone, there were 34
missing receipts for expenses.  This practiced continued in 2008 until I
could no longer stomach the unethical practices and wanted no part of it.  I
resigned stating exactly this as shown below in my letter of resignation.

 

Upon my resignation, I turned over every item I had in my custody, to
include computer copies of the bookkeeping file on QuickBooks.  I did not
keep any copies as it would be improper.  As a resigning party, it was my
responsibility to turn over every property I had which is exactly what I
did. 

 

If the treasurer has not been successful in closing or understanding the
records and not able to reconcile or provide a satisfactory report, it is
most certainly not because I possess a lack of experience or understanding
and, I resent any suggestion whether it was made directly or indirectly.

 

It is my hope that the affiliate has adopted practice policies to provide
for a transparent record keeping of all fiscal activities as I believe that
this organization, for the most part, can provide its local members the
support we need in our continually growing economy.

 

This statement is not open for any discussion or rebuttal.  What is done is
done.  I believe that I have made my point and hope that if members harbor
any thought of my lack of integrity or fiscal responsibility, all concerns
have been resolved.

 

*****copy of resignation follows****

 

15 October 2008

 

 

 

Board of Directors

National Federation of the Blind of Hawaii

P.O. Box 4482

Honolulu, HI 96818

 

RE:  RESIGNATION LETTER

 

Dear Madam President & members of the board:

 

I am submitting my formal notice to resign as treasurer of the national
Federation of the Blind of Hawaii Board of Directors to take effect
immediately.  I have thought this through for over a long period of time and
decided that it would be in my best interest to resign.

 

I have been in the accounting field since 1978 and know the importance of
having transparent and clearly defined records justifying income and
expense.  There is a greater responsibility for treasurers in the non-profit
business sector as the funds are contributed or granted for specific
purposes (restricted and unrestricted).  We have discussed, on several
occasions my "accounting rule of thumb", emphasizing on the importance for
original receipts and income descriptions.

 

I had charge of the books for fiscal year 2007, and at year end pointed out
that we had 34 missing items.  There were moneys I couldn't identify clearly
and placed them in accounts that may not have been appropriate.  Membership
dues for fiscal year 2007 were only $13.00.  This amount either reflects
that we only have 13 members for the year or members did not pay their dues
and have taken advantage of the benefits of the organization or the
accounting data entry was in error.

 

I believe that we both tried to work together to reach a common goal.  You
have sincerely tried and I am grateful that you did.  However, I have to
examine myself and whether I want to compromise my accounting ethics by
accepting the current practices within the organization.

 

A very clear example is in the collection of membership dues.  I don't need
to keep following up with people who have been in the business longer than I
have.  Further more, if I ask for documentations to validate where the
income and expenses are being posted to, then there should be no objection.
Receiving a check from the Department of vocational Rehabilitation in the
amount of $250.00 for convention registration accompanied with a list of
individuals that the $250.00 represents is absolutely no difference from the
$21.00 supporting documents list I required to validate my posting.

 

The phone call I received from you was just another indicator that I would
then have to compromise my principles and ethics.  It is very difficult to
carry out my judicial duties without the full cooperation of all members
doing business with the treasurer.

 

It is my recommendation that the organization re-examine accounting
practices and incorporate policies to ensure a true transparent and clear
record keeping of all transactions.  An important rule of thumb I always
followed throughout my years in accounting is that records should be kept in
a manner that that a total stranger can review and understand.  I am
exceptionally uncomfortable with the practices as they are conflicting with
my accounting and business ethics.

 

I believe that the organization is a very important resource for the blind.
It is through this organization that many of us have been provided equal
opportunities.  I believe in the federation's mission and would like to
continue to take an active role.  I sincerely regret that I must resign from
the position of Treasurer and director as it is in conflict with my
accounting principles.  I will provide you with any help I can to close the
books for 2008 provided that it will not pose any compromise.

 

Respectfully,

Jeanne Torres