From Magic City Morning Star

Alyce Maragus
Katahdin Cultural Center - Creative Accounting?
By Alyce Maragus
Sep 13, 2006 - 11:13:00 AM

For the benefit of those who have not seen any financial accounting information pertaining to the Katahdin Cultural Center, I am posting two versions.

First is the copy from Guilds Hollowell which was presented to the Council at their August 24th meeting. It is entitled "Category Summary Report"

Category 1/1/05 - 12/21/05
INFLOWS
Proceeds from Bank Loan

$ 63,418.59

 

Town of Millinocket

30,000.00

TOTAL INFLOWS

$ 93,418.59

OUTFLOWS
Architect

$14,360.06

Bank charge

1,204.48

Cash

200.00

Contractor

62,500.00

Cost of Goods:
Materials

900.00

TOTAL COST OF GOODS

900.00

Entertainment

328.75

Exhibit Fee

350.00

Fundraising

296.00

Loan Repayment

5,000.00

Material

1,783.25

Mortgage Interest

5,474.05

Reimbursement

550.00

Supplies

144.90

Gas & Electric

843.58

Telephone

290.00

Total Utilities

1,133.58

TOTAL OUTFLOWS

94,225.07

NET INFLOWS/ OUTFLOWS

- 806.48

Next is information taken from a back article submitted August 3rd of last year to the Magic City Morning Star and authored by Ed Greenblatt who at the time was serving as the KCC fundraising coordinator.

Labor

$ 41,500

Disposal Fees

2,600.00

Material

5,000.00

Asbestos Removal

7,800.00

Temporary Electricity

1,200.00

Rental Equipment

2,100.00

Environment Permits

205.00

Engineering Services

14,500.00

Two Skylights

1,500.00

July 4th Activities

750.00

Building (Purchase)

50,000.00

TOTAL

$127,155.00

And according to the article they still had $31,000.00 left in cash.

On the plus side there is mention of $30,000.00 from Millinocket; a construction loan of $120,000.00 from BSB and LLC (not non-profit) member pledges for $50,000.00. Guess we still don't know if the Cultural Center is an LLC or a non-profit organization, either that or "they" can't quite make up their mind.

Also listed on Greenblatt's accounting is a committment from their contractor of $120,000.00 to build a new roof, install the heatring and ventilation system and to wire the building for electricity. Has anyone seen these things occur?

Now for a few more questions!

Mr. Hollowell lists "proceeds from Bank Loan" as $63,418.59. Curiously on the KCC web site he listed a loan of $200,000.00, then later corrected it to $120,000.00. Now is would appear to be $63,418.59? Any thoughts?

Then there are discrepancies in the contractor's expenses; and what about the $50,000.00 for the building itself which Tom St. John, the previous owner claimed in a Community Press article had not been received?

With all this money at stake one would think "they" could keep their figures straight. Instead it would seem "something is rotten in Millinocket" especially when it concerns the KCC and some investigation should take place, after all, some of this money come from the tax-payers.

Do we dare say it looks as though someone is lying or shall we just call it "creative accounting" and perhaps "stretching the truth"?



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