NWB Financial Report Makes No Sense

New World Believers’s financial statements are nonsensical, and the Escambia Children’s Trust should NEVER have been accepted them. In fact, I’m not sure they were produced by anyone with an accounting degree.

FY 2023-2024

On Sept. 9, New World Believers founder Rodney Jones emailed Lindsey Cannon, Tammy Abrams and Deborah Ray of Escambia Children’s Trust the financial statements prepared by its bookkeeper, Justina Royster of Reliable Tax & Financial Services, for the fiscal year ended Sept. 30, 2024. See NWB HOOPS 2023-2024 Financial Report

Under the Statement of Activities: The revenue from program fees  ($329,190) doesn’t match what the Trust reported in its annual report for NWB expenditures- $392,190.

Red Flag 1: The accountant transposed the numbers. Yikes!

• Plus, the Trust only reimburses providers for what they spend. The providers have to provide receipts before getting a check, so NWB program fees should be offset by expenses and show no profit.

However, the Statement of Activities only shows under expenses:

• Program Fees $100,000
• Administrative Expenses: $45,408

Red Flag 2: Adding to the confusion, the accountant reports $ 100,000 + $45,408 = $183,782, leaving Net Assets (which should be profit) of $145,408.

• The actual math is $329,190 – $145,408 = $183,782 – the expenses and net got switched.

Under Statement of Financial Position: If the NWB had a $183,782 profit, that amount should be in its checking account. However, the Statement of Financial Position shows $72,180 in cash.

Red Flag 3: The accountant again incorrectly adds the figures:  $72,190 + $280,000 = $352,190, not $492,190.

Notes to the Financial Statements: The Notes to the Financial Statements are even more confusing.

Red Flag 4: It looks like the current year and previous year have been swapped.

Red Flag 5: Note 1: Operating Expenses for advertising, office, IT, occupancy and insurance don’t show up on the Statement of Activities – neither $23,515 nor $30,225.

Red Flag 6: Note 2: Personnel Expenses are shown as Administrative Expenses on the Statement of Activities. We have no clue where is the note regarding the Program Expenses on the Statement of Activities ($100,000).

Red Flag 7: There is also $420,000 shown for unrestricted assets on another page. I have no idea what that is.

Why did the Trust approve renewing the grant for $585,685 based on these reports?

I’m done. Let’s see what the Escambia Children’s Trust does.

Update: I reviewed the numbers one more time and found more errors. This is a mess.