August 21, 2018

Yele Haiti Names RSM McGladrey as New Accountants

Thumbnail image for alg_singer_wyclef-jean.jpgAre you paying attention Fortune? After last week’s controversy around the finances of Yele Haiti, RSM McGladrey has been appointed to administer the donations pledged to Wyclef Jean’s foundation.

Yele Haiti has also retained Grant Thornton, who filed the three years of tax returns for the foundation just last August.


All the hubbub was over the foundation less than timely filing of its tax returns and paying expenses on the behalf WJ’s production company.
Not filing tax returns is one thing but there is some debate over whether the payment of expenses is actually anything to worked up over:

John Colombo, a University of Illinois law professor specializing in tax-exempt organizations, said tax laws permit such fees.
“If you told me the organization raised $1 million and it all went to him, then I would have some issues,” Colombo said. “Paying him an arm’s length salary for services he actually performed just isn’t a problem.”
But Alvin Brown, a tax lawyer who runs the site IRSTaxAttorney.com, said such transactions were “scary” and “could be viewed as fraud.”

“Viewed as fraud” isn’t the same as “is a fraud” but we after the last week, Yele Haiti has heard worse.
Wyclef’s Haiti Charity Gets New Accountants [AP]
Earlier:
We Knew Accounting Firms Were Helping Haiti

Thumbnail image for alg_singer_wyclef-jean.jpgAre you paying attention Fortune? After last week’s controversy around the finances of Yele Haiti, RSM McGladrey has been appointed to administer the donations pledged to Wyclef Jean’s foundation.

Yele Haiti has also retained Grant Thornton, who filed the three years of tax returns for the foundation just last August.


All the hubbub was over the foundation less than timely filing of its tax returns and paying expenses on the behalf WJ’s production company.
Not filing tax returns is one thing but there is some debate over whether the payment of expenses is actually anything to worked up over:

John Colombo, a University of Illinois law professor specializing in tax-exempt organizations, said tax laws permit such fees.
“If you told me the organization raised $1 million and it all went to him, then I would have some issues,” Colombo said. “Paying him an arm’s length salary for services he actually performed just isn’t a problem.”
But Alvin Brown, a tax lawyer who runs the site IRSTaxAttorney.com, said such transactions were “scary” and “could be viewed as fraud.”

“Viewed as fraud” isn’t the same as “is a fraud” but we after the last week, Yele Haiti has heard worse.
Wyclef’s Haiti Charity Gets New Accountants [AP]
Earlier:
We Knew Accounting Firms Were Helping Haiti

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Grant Thornton and the Antichrist

al pacino_devil.jpgIt’s rather mysterious that the New York office of Grant Thornton is located at 666 Third Ave. As I’m sure our more pious readers know, the significance of the 666 is commonly known as “The Number of the Beast“. We won’t get into any more specifics than that other than to mention that it is a pretty creepy-ass looking number.
Is G to the T run by a secret group of Al Pacino-esque figures that are working against the forces of good?
Maybe not but the otherwise boring-assness of that particular lobby is def working too hard to not be noticed…

Heelys Dumped Deloitte for that Slut, Grant Thornton

heelys.jpgWe told you earlier about wheeled shoes company Heelys dumping Deloitte. It was reported that Heelys left because fees were too high but we speculated that the Big D probably wasn’t down with Heelys request to have the entire audit team don the juvenile wheeled shoes.
Heelys has now announced they will be retaining the younger, sexier, less Big 4-ier, firm Grant Thornton as its independent accounting firm.
We find this very similar to the all-too-common situation where the old wife/husband is left behind for the newer, younger, partner who’s young, racy, and willing to experiment a little.
As you might expect, for accounting firms, letting the engagement teams wear shoes with wheels on them definitely qualifies as racy and risque and other firms only wish they had the balls to do something like that.

Heelys hires new accounting firm
[WFAA.com]