“Not quite there but pretty close” is how accountant Fred Brewer described progress on an audit of the Boothbay Region Humane Society. Brewer met with officers and began working on the financial review in June.
Upon its completion, the 501(c)(3) nonprofit must file a Form 990 for the year 2007 with the Internal Revenue Service, the financial information equivalent of the individual income tax return 1040. The returns are supposed to be filed annually.
In mid-August the State Attorney General’s Office ordered the humane society to cease soliciting funds from the public until it received a license from the Charitable Solicitations Program or until it could show why it is not subject to Maine’s Charitable Solicitations Act. Organizations that raise less than $10,000 in public funds are exempt from the act.
Program administrator Elaine Thibodeau checked records last May and found that the humane society was not licensed as either a charitable organization or as an exempt charitable organization
The attorney general’s cease and desist letter gave a Sept. 30 deadline for applying.
Asked about the status of the humane society’s application, Thibodeau said Friday her office had received an application through Thomas Berry, an attorney in Bar Harbor.
“It included an IRS determination letter designating the BRHS as tax-exempt,” under 501(c)(3) regulations, signifying the society does not need to pay income taxes. Thibodeau also said there was a copy of the BRHS’s application to the IRS for an extension of the Nov. 15 deadline for filing its Form 990.
In addition, Thibodeau said she had contacted humane society president Loraine Nickerson and asked for a copy of the 2006 return, the most recent that should be available. “I’m waiting to receive that,” she said, “so the status of their application is pending.”
In 2007 and early 2008 former BRHS board member Don Loprieno asked for and never received copies of the most recent Form 990. He was told one was filed annually, but the only ones listed on an IRS online site date from 1998 and 1999.
As for receiving other necessary information from the society for the audit, Brewer said he had been provided in late August with property appraisals he requested of Nickerson. The properties were given many years ago to BRHS and Brewer needed to know the value of the real estate at the time the gifts were made.
Another remaining wrinkle may have been ironed out. A Vanguard Mutual Funds investment account had been classified dormant following the death of the board member who was taking care of it. Because of the account’s status, and because a correct address and the names of officers had to be verified, the humane society was having trouble getting the information it needed from Vanguard to expedite the audit process, Brewer said.
On Tuesday, BRHS secretary Rick Conant said, “I think it’s all set.” He confirmed the board member overseeing the investment had passed away and said there had been a change of address of the post office box. “Then, even though we’d notified Vanguard, the account became clouded. It’s taken care of now, and we’ve sent a certified note to Vanguard that the new address is correct.”
The Boothbay Region Humane Society operates the Lincoln County Animal Shelter in Edgecomb. A 2007 profit and loss statement provided Loprieno last spring by BRHS shows a total income of $359,716 and total expenses of $434,066 for the year.
