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

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