I am reading the Town Report from 2007, available online at the Town of Atkinson website, and I notice some revelations I did not know. Apparently we have no less than FIVE separate donation accounts!
Are all of these "non-profit" "donation accounts" LEGAL? Well lets see;
NONE are registered with the NH Secretary of State's office, as Non-profit organizations.
NONE are registered with the IRS as 501(c)3 charitable organizations.
ONLY the ORIGINAL DONATION ACCOUNT was established by warrant article at Town Meeting, as required by State Law.
ONLY the ORIGINAL DONATION ACCOUNT has public hearings to withdraw monies, as required by State Law.
ONLY the ORIGINAL DONATION ACCOUNT is overseen and accounted for by the Town bookkeeper.
So What about these other funds;
the "Senior Citizens Donation Fund";
The Police Department has set up a Senior Citizen Donation Fund where all donations are earmarked just for our seniors. We use this special fund to help some of our seniors with oil deliveries, pharmaceutical prescriptions and for special medical appliances. We sincerely thank the folks who have donated to this special fund. It can be very embarrassing for our seniors to be asked to fill out page after page of personal questions to obtain some assistance with their household bills. Using this fund, the Police Department can quietly help them over a financial hurdle while maintaining their privacy.
page 30 of Town Report.
By what Authority was this account set up? Who keeps the books? where is the oversight and accountability?
Last year we put in a Warrant Article requesting that the voters allow us to purchase a new van by entering into a four (4) year lease program. The cost of the van was approximately Forty Three Thousand dollars ($43,000.00). We requested and received authorization from the residents for a yearly expenditure of Five Thousand Six Hundred and Forty Nine Dollars ($5,649.00) for four (4) years to fund this van. I am pleased to say that due to the generosity of folks we were able to raise over Thirty Seven Thousand Dollars ($37,000.00). The tax payers only had to fund one (1) year’s payment, thus enabling us to pay cash for the van. I sincerely appreciate the support in allowing us to better serve our seniors.
page 30 of the Town Report.
Donations accepted by the POLICE DEPT.? Legally this is tantamount to using a badge and a gun to demand money, isn't it? Which fund? where are the books? when did the people vote to establish this account? Where is the registration with BOTH the STATE AND THE IRS, as required with organizations that receive over $25,000 in donations? Where is the IRS form 990? this has to be available for public inspection.
Your continued support in donating funds to the Police Department’s Equipment Fund has been greatly appreciated. We have, with these funds, been able to purchase many needed items that were not budgeted for in our Annual Operating Budget. During 2007, we received over Fifteen Thousand Dollars in donations for this special fund. Again, I thank you for your confidence and support in providing these funds to our department.
page 32 in the Town Report.
Over $10,000 in donations REQUIRES registration with the STATE. Where is the accountability? where are the books?
The Atkinson Police Department’s Elderly Affairs and “Life is Not Done Yet” Foundation donated the funds for two senior trips (Fall Foliage trip and Beacon Resort trip) and 11 weeks of Senior Wellness Exercise classes.
page 56 of the Town Report.
The POLICE DEPT> has an Elderly Affairs FOUNDATION? and a LIFE IS NOT DONE YET FOUNDATION?
ALL charitable FOUNDATIONS are REQUIRED to be registered with the IRS? the accounting, and recordkeeping requirements for a FOUNDATION, far exceed those for a non-profit.
Did any one of you out there know that all of these separate donation accounts existed?
Atkinson Town Hall
The Norman Rockwellian picture of Atkinson
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18 comments:
How can he have all these different accounts if they aren't registered?
Is that agaist the law? Why didn't the proper forms get filled out? Is what the Chief doing illegal? Why didn't the voters vote on any of these donation accounts? Are there any more accounts i don't know about?
Did you know that anyone who donates to a non profit organization that solicits donations has a right to request the list of income and expenses of the organization?
I would hope the donations are on the up and up. A local town received a motorcycle for its police department as a donation . Its heavily rumored it wasn't out of the donors kindness of heart but that for another reason . Another very recent donation of the same kind was in Salem but they got two of them. I'd have to say we should all be careful of the acceptance anonymous donations wouldn't you?
Take a look at the library. Where is all those donations going? when will there be a blog about the library in such case that would be much more entertaining.
You know, I'll bet the IRS would have something to say about raising all that money without registation, or accountability!
The IRS does need to be informed of these donation accounts. Some one needs to inform them . Does anyone know somebody who works with the IRS?
Call the Attorney General's Office. They are the people to talk to in matters such as these.
I'm sure their investigators would be more than happy to take down a corrupt police official that has set up slush funds..
I have always heard Phil refer to different names, but I thought it was all the same account, but now I see you are right.
I looked at the town report online and saw the references listed, now I want to know, what is going on, and who has oversight over these accounts? I would rather not have to call phil up and ask him...
The number is 603-271-3641
the more people that call the better.
New Article Submission, s'il vous plait.
The AGO's office sent a letter to the Chief dated April 7, 2008, advising him that
"any non-profit, charitable organization that: - Has been determined by the IRS to be a 501(c)(3) organization; and/or - Solicits donations in the State of New Hampshire or distributes funds to the community for charitable purposes; and/or - Is formed for any of the purposes enumerated in RSA 7:21, II - is required to register with and report to the Attorney General, Charitable Trusts Unit."
The Chief's response dated April 15, 2008 is as follows:
"...After investigating my situation I believe that I do not fall under the restrictions of IRS 501(c)(3). I would like to explain my reasoning.
I am not the proprietor of any funds that are sent to the Police Department. All funds received are deposited into the town of Atkinson's accounting ledgers. I do not have access to these funds. These funds can only be disbursed by approval of the governing body, the three member's of the board of selectmen.
The town presently has a Federal IRS number as a no profit organization and thus I feel that there is no need for me to duplicate what is already in place. These funds are audited by Mason & Rich Professional Association, Certified Public Accountants located in Concord, N.H. On Monday April 14th, we contacted this accounting firm and again asked their input on changing the way any donations are sent to the town. They advised that the way the donations are handled falls under the towns Federal IRS number. He stated that the Police Chief does not have direct access to the funds, for the board of selectment are the directors and care takers and these funds can only be dispersed with written authorization by the three members of the board of selectmen. The procedure of accepting and dispersing of these funds has been in place for over fifteen years.
If you should require any additional information pertaining to the reasoning why I believe the police department is not required to file as a non-profit organization, please feel free to contact me.
Sincerely; Philip V. Consentino"
The AGO followed up with a nice letter dated Juy 18, 2008 stating:
"I have reviewed the letter you sent to me in April. I have also reviewed the fundraising activities and oversight of the funds with Sandra at the Town Office.
Because the funds are raised through public solicitation and are used for charitable purposes, it is required that a charitable trust be formed and registered with this office. It is considered to be a public charity. The Town cannot hold charitable funds unless all activity and funds are held and reported through the Trustees of the Trust Funds report. I have confirmed with Sandra that this is not being done in this manner. Sandra did confirm that the funds are held in a separate account, expenditures must be approved by the Board of Selectmen, and you do not personaly have possession of the funds or a checkbook."
Well, ok then, it's Q&A time.
1) What is Mason & Rich's phone number? Someone call them and explain the law to them.
2) The original letter from the AGO mentioned soliciation but the Chief does not address this issue in his response, and he gets bagged.
3) The Chief states that ALL expeditures are aproved IN WRITING by THREE members of the BOS. Can you say RTK request?
4) Has anyone out there ever heard him request money for the "life is not done yet" trips for seniors? or the dinners where certain political candidates are invited, while others are excluded? Can you say electioneering?
5) What about the 5 funds outlined in the Town Report? The AGO knows about these :) but the Chief only talks about one account.
6) All activity and expeditures are reportable!! I like this one the most. Who's the Trustee of the Trust Fund anyway....I hope you are well rested.
7)All of the towns other non-profit orgs are registered (that we know of). Why does the town allow the PD to do this?
8) The Chief states that he does not have direct access to the funds. What about the big can at Hanniford? They cough up $500-600.00 at a time for the PD, per the store manager. If no one directly handles it, how does it get to the bank? He said the PD picks it up......
9)He leads the public to think the donations are only for the elederly. Sorry folks, it's not that way.
Can you say FIRE HIM? Can you say ARREST HIM?
Attention! EVEN the ORIGINAL DONATION ACCOUNT is not registered with the AGO!!!
As former budget committee chair, I believe that the original donation acct. was legal. It was formed by warrant article duly voted upon at town meting in 1993, I believe. I may be wrong about the year. But it was adopted under the enabling legislation of RSA 31:95b which reads as follows;
31:95-b Appropriation for Funds Made Available During Year. –
I. Notwithstanding any other provision of law, any town or village district at an annual meeting may adopt an article authorizing, indefinitely until specific rescission of such authority, the board of selectmen or board of commissioners to apply for, accept and expend, without further action by the town or village district meeting, unanticipated money from the state, federal or other governmental unit or a private source which becomes available during the fiscal year. The following shall apply:
(a) Such warrant article to be voted on shall read: ""Shall the town (or village district) accept the provisions of RSA 31:95-b providing that any town (or village district) at an annual meeting may adopt an article authorizing indefinitely, until specific rescission of such authority, the selectmen (or commissioners) to apply for, accept and expend, without further action by the town (or village district) meeting, unanticipated money from a state, federal, or other governmental unit or a private source which becomes available during the fiscal year?''
(b) If a majority of voters voting on the question vote in the affirmative, the proposed warrant article shall be in effect in accordance with the terms of the article until such time as the town or village district meeting votes to rescind its vote.
II. Such money shall be used only for legal purposes for which a town or village district may appropriate money.
III. (a) For unanticipated moneys in the amount of $5,000 or more, the selectmen or board of commissioners shall hold a prior public hearing on the action to be taken. Notice of the time, place, and subject of such hearing shall be published in a newspaper of general circulation in the relevant municipality at least 7 days before the hearing is held.
Of course the problem here is that they have NEVER had a public hearing to accept donations over $5,000.00, and they have NEVER had a seven day posting for a public hearing. And the selectmen have RARELY voted to expend anything out of this acct. Nor does chief list everything when making his request, usually there are "miscellaneous items".
I was aware of this ONE legally established donation acct. and I know for a fact that this is the only regularly used donation acct. that Sandy keeps the books for. There is one other, in 2003 or 2004 the chief or selectmen added another line for elderly affairs, this was because someone wanted to donate but have it go ONLY to elderly. so they opened a new line. it is for donations under $400. and only used for that special earmark, and only when demanded. There is never much money in it, usually a couple of hundred dollars, or so.
Even I, as chair of the budget committee was unaware of all these separate, and apparently illegal slush funds, this is not good for the town.
also to the best of my knowledge, Mason and Rich, who are the auditing firm for the town, does not audit the donation acct. because it is an "off budget" acct. I could be wrong, but I dont think that they do. And I am certain they do not know about all the other accts.
Mark, See the posting front and center about the correspondence between the AGO and the APD. The town donation account is NOT set up correctly either.
Let me clarify,
I said it was SET UP legally. Remember that was in 1993. It was set up pursuant to the enabling legislation, RSA 31:95b, by warrant article to the voters, who passed it.
The fact that donations and withdrawals should have been under the authority of the Trustee of the Trust funds, and that votes should have taken place, and proper notice should have been given, are all problems with the operation of the account. It should have been also filed as a non profit 501(c)3 charitable organization. But that still doesn't accounts for the rest of the accounts.
Mark,
So fine,,,, the town opened an account correctly but they have not operated it correctly since then. The bottom line is the same, but don't smooth it over to make it appear less illegal than it is, The past is the past. The fact is they are breaking the law, they have accounts they refer to publically that don't legally exist and they are scamming the residents.
I think the biggest problem is the lies, mis information, whatever you wish to call it. The fact that he was soliciting donations and doling out the money as he saw fit, without apparent regard for any of the laws he swore to uphold, is that a problem for anyone else?
The other issue here, is that using the police dept. to solicit donations for anything is the same as asking for money using a badge and a gun. Very little difference between this and the bank robber who donates the money to charity, isn't there?
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