X-Message-Number: 13235 Date: Wed, 9 Feb 2000 23:34:26 -0500 From: "Stephen W. Bridge" <> Subject: Financial Statements To CryoNet From Steve Bridge, Alcor February 9, 2000 In reply to: Message #13225 From: "Daniel Crevier" <> Subject: Financial statements Date: Tue, 8 Feb 2000 18:23:06 -0500 >I've had a look at the financial statements of both Alcor >and CI in the past years, and from what I could see, they >were not audited by external accountants. > >Quoting from Alcor's 1996 report, the accounting firm's role >was " ...limited to presenting in the form of financial statements >information that is the representation of management. [The >accountants] have not audited or reviewed the ... financial >statements, and, accordingly, do not express an opinion or >any other form of assurance on them." > >In other words, the only assurance that we have on the financial >health of the organizations is their management's word. While >I have every confidence in the honesty of Alcor or CI's directors, >I for one would feel better if these organizations were willing to >submit to a regular audit. > >Any comments? > >Daniel Crevier There are three levels of financial presentation for corporations: compliation, review, and audit. In 1993, Alcor had its 1992 statement independently audited by a major Los Angeles accounting firm. It cost $18,000 -- a huge amount of money for a non-profit and delayed all other financial business at Alcor for several weeks. The audit was done at the insistence of a number of Alcor members and Directors, and it was paid for by special contributions from many members. The auditors found no major problems with the way we handled the money or books, although they made a number of suggestions for improved methods, most of which were implemented. I think some members were actually disappointed because they were hoping to find evidence of mismanagement. When we offered to do another audit in a subsequent year, no one was willing to put up the money. Frankly, I don't think an expensive audit like that is worth the money for Alcor right now. As our budget gets over one million per year, perhaps it would be. However, we have made some improvements. We have moved to an accounting firm which has more experience with non-profits than our previous firm. The new CPA has convinced us that we can afford to increase the level of financial statement oversight to "review." So Alcor's 1999 financial statements will be "reviewed." This will cost us $3-4,000 more than the normal statements, as I recall. If you have further questions on this, please direct them privately to Fred Chamberlain () and Joe Hovey () at Alcor. They don't look at CryoNet regularly anymore. Stephen Bridge Chairman of the Board Alcor Life Extension Foundation Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=13235