FoxPolitics.net - Appleton, WI News - What's really going on in the Fox Cities

FoxPolitics.net Blogs

FoxPolitics News

Local/State Govt Links

Salaries

• Appleton School District, 2007-08
• City of Appleton
• Town of Grand Chute
• City of Menasha
• City of Neenah

Candidates

City of Appleton

• Elected Officials
• Salary Watch
• Directory
• Mtg. Agendas/Minutes

Advisory Board

Blogroll

Selected News Sources:
Business Jrnl of Milw
Christian Science Monitor
Daily Caller
Drudge Report
La Crosse Tribune
Milw Journal Sentinel
National Journal
New York Times
Public Policy Forum
Real Clear Politics
Stateline
The Hill
TPM
Washington Examiner
Washington Post
Washington Times
WI State Journal
Selected Blogs - from the Right:
American Mind
Blaska's Blog
Boots & Sabers
Charlie Sykes
Dad29
Freedom Eden
Heritage Foundation
Jerry Bader Blog
Life Voice
Marketplace of Ideas
Marquette Warrior
Natl Review Online
No Runny Eggs
Patrick McIlheran
Real Debate Wisconson
RedState
Rhymes with Clown
Shark and Shepherd
The Lote Tree
Vox Populi
Wall Street Jrnl, Opinions
WI State Jrnl, Opinion
Wigderson Library & Pub
Wisconsin Family Voice
WPRI
Selected Blogs - from the Left:
Big Money Blog
Blogging Blue
Brenda Konkel
Caffeinated Politics
Capital Times
FightingBob
Folkbum's rambles
Griper Blade
Huffington Post
Lost Albatross
MAL Contends
Mid coast views
Moneyed Politicians
One Wisconsin Now
Open Left
Playground Politics
Political Environment
Rock Netroots
Talk to Tony
Uppity Wisconsin
Waxing America

Today's Blog: Time for the Guv to morph into Chris Christie
My husband and I and a couple hundred friends watched in Green Bay as ...(more)

Search Archives

Blogs

Time for the Guv to morph into Chris Christie (6/28/2011)

Time for Gov. Walker to talk more about the cake (3/4/2011)

Today, reality hits home (3/1/2011)

FoxPolitics News going on hiatus (1/28/2011)

Brown County Executive candidate forum Feb. 8 (1/28/2011)

Education done right (1/27/2011)

To Obama, the ‘We’ is Government (1/27/2011)

(more)

12/23/2009
PAC financials raise questions

I talked earlier this week about the Fox Cities Performing Arts Center – its importance to our community and a brief discussion of the audited financials, made available to the public for the first time since the PAC’s opening in 2002. Monday’s piece presented snatches of detail revealed by the financials. Also important are what the audited financials don’t reveal.

What the Audited Financials Don’t Reveal
The PAC’s “Statement of Activities” lists revenues and expenses (here, p. 5). The challenge is that, as allowed by audit requirements for a nonprofit, operating revenues and expenses are mixed together with revenue and expenses associated with the PAC’s long term endowment funds. Also, “Contribution” revenues include pledges of future payment, room tax income (both to pay off one of the mortgages and additional tax revenue to aid in operations and maintenance) and cash contributed for current operations. The Annual Report explains it this way: “Contributions include cash and pledges for the Annual Partner [operating] and Future Fund [long-term endowment] campaigns.”

The point is that given just the information in the audit, it’s impossible to know to what extent the PAC’s annual operating revenues are greater or less than its expenses.

When I asked Laura Braun, the PAC’s Vice President of Finance and Operations for a breakdown of the revenue, i.e., to please separate out dollars received for annual operations, she said the PAC doesn’t make that available. I wondered aloud: “Do you break down the numbers for the Board? “”Oh of course,” was Braun’s reply. Braun also shared that “I feel we go above and beyond to answer questions.” After conferring with her boss, PAC Executive Director Susan Stockton, Braun kindly called to tell me they were going to “pass on giving me additional information” and that they were “comfortable with the documents as presented.”

The Appleton Redevelopment Authority, having donated the land the PAC now stands on, recently asked the city’s Finance Director for a brief review of the PAC audit. The review (here, p. 9) is from a standpoint of accounting methods used and compliance with accounting and auditing standards; it was not the report’s intent to determine if revenues are adequate to fund ongoing operations.

Not having detailed numbers, it’s impossible to confirm to what extent operating expenses are being covered by revenues. The audit indicates current expenses are greater than revenues by about $307,000. But as mentioned above, not all those “revenues” are cash meant to fund annual operating expenses. So indeed, the actual operating deficit could be much greater than $307,000 (or even, possibly less…).

Braun recently told the community that the $307,000 claimed shortfall in 2009 was “covered by contributions that were pledged and reported in previous years” - in other words, the cash to make up the shortfall was perhaps “borrowed” from one of the endowment funds. That’s a trend set over the last several years – and one that most likely isn’t a healthy one.

With annual administrative and fundraising expenses totaling $2.1 million, the PAC continues to need about $2 million each and every year from our community to operate in the black. It’s an ambitious requirement – and one the PAC is admirably chipping away at. (Some though, continue to believe the $2 million makes it difficult for other of the community's nonprofits to raise needed funds.)

The critical question is just how well is the PAC meeting that $2 million target – or how far behind it are they falling?

As I’ve said in the past, I’m a fan. I love having the PAC in my backyard. A phenomenal number of corporations and individuals have been giving very generously to the Center for what is approaching a decade. The community has been a part of the PAC from the very beginning; many of us helped in one way or the other, to build this great Arts Center. But as I’ve said repeatedly, openness and transparency are important. And if the PAC is having serious financial challenges, in order to best help, we do need to know the facts.

Jo Egelhoff, FoxPolitics.net

COMMENTS

Excellent analysis, Jo. Transperancy is absolutely necessary to head off any problems BEFORE they develop. Without more detail, we have no way of learning the answers to the questions you have raised. The attitude you encountered from the leadership at the PAC that you spoke with is not consistent with what should be, a collaborative sense of operating in our community.

JeanMarie Hinds (Wed Dec 23 09:55:11 2009)

SHAME ON THE PAC'S MANAGEMENT!!! Sounds to me like the PAC is trying hide something that in the future MAY lead to them coming to the City for a "bailout". Sound familiar other projects in the City! At the somewhat last minute, the City will feel "obligated" to rescue so that all the money already spent does not go down the drain.?? Other similar project have done that and for the "community good" the City helps. I call for the PAC to be transparent IF they have nothing to hide.

(Wed Dec 23 11:15:46 2009)

My mom used to say...not much good happens in the dark". Keep at 'em, JO.

(Wed Dec 23 11:19:57 2009)

Post a Reply

Print this Article

Email Article to a Friend