Annual Reports (the typically glossy publications sent to shareholders) are composed of two parts. The first part - or the Management Discussion and Analysis - is the company putting its best foot forward and telling about all the great things it's done. The second part is typically composed of the company's annual financial statements -- balance sheet, statements of cash flows, income statements, and notes pages. The financial statements will differ between for profits, not for profits, and government. All statements should follow generally accepted accounting principles.
-- United States Steel (John Surma),
-- Merck (Kenneth Frazier),
-- PNC Bank (Ted Junker*),
-- Lloyd Huck*, and,
-- James Broadhurst.
*indicates Emeritus Trustee
Angel Donors vs. IRS 990 FormsThe Angel Donor list was unlikely to be accurate because some donors named may not have followed through on their promised donation and/or they could have been categorized in the wrong category, however, one would expect that the total donations computed from the donor list would be within a reasonable range of the donor revenues on the IRS Form 990. Our analysis determined that the Angel Donors contributed a minimum of approximately $2M in donations in 2006 and an approximate maximum of $3.5M. Comparing the Angel Donor list to the revenues on the 2005 IRS 990 (approximately $1.3M), there was a difference in TSM 2006 donations between $596K and $2.15M. The real number was likely somewhere in between, but here's how the figures looked based on the computations (note that the donations in the "$50,000 and more" category are capped at that amount):
IRS 990 Form vs. Annual Report Donor Revenue
What is the real number for donor revenues?
That would depend on how honestly and accurately the TSM recorded their donations and whether those records would be available for examination by an auditor or forensic accountant.
This initial review of the public records has determined possible understatements of donor revenue ranging from approximately $400,000 (allowing for uncollectible donations) to $1,900,000.
But revenues are just one part of the financial equation at TSM. We found the accounting of expenses to have similar discrepancies and accuracy problems.
Part 2: Expenses at TSM to be released Thursday.