THURSDAY, JULY 24, 2014, FRANK PILLERI HAS NOWHERE TO RUN, NOWHERE TO HIDE
Frank Pilleri’s Deadline from City Hall LOOMS Thursday 7-24-14 Click here:
LETTER FROM CITY HALL TO FRANK PILLERI
July 7, 2014
Frank Pilleri
16 Water Street
Medford, MA 02155
re: Dissolution of Medford Community
Cablevision, Inc. Attorney General #021285
Dear Mr. Pilleri:
On or about June 20, 2014 a representative of Medford Community Cablevision, Inc. {hereinafter referred to as “MCC”} left copies of the following documents at the Law Department.
FIVE PAGES FROM CITY HALL AND THEY ARE QUITE SPECIFIC. STAY TUNED. Let’s fast forward to the end of page 3 for now:
Since MCC has filed the Administrative Dissolution Petition under the provisions of G.L.c.180 11A(c)4, the issue of whether it has “remaining assets” is relevant and must be supported with objective clarity.
July 7, 2014
Frank Pilleri
Page 4
(Editor’s note: $38,000 plus not accounted for??? What genius at TV3 – and the term is used loosely – slowly barbecued these books?)
Second on Form 990-EZ MCC states that its Revenue for the period May 1, 2013 to April 1, 2014 was $10,737.00 Yet the same form states that it began the year May 1, 2013 with $133,342.00 in “cash, savings and investments” In the same Form MCC states that its Total Expenses for the same period May 1, 2013 to April 1, 2014 is $95,555.00. Without more data, these figures indicate a surplus not a deficiency.
______________________________________________________________________________
133,342.00
95,555.00
$37,787 surplus that allegedly isn’t accounted for! To be continued…
July 7, 2014
Frank Pilleri
16 Water Street
Medford, MA 02155
Re: Dissolution of Medford Community Cablevision Inc.
Attorney General # 021285
Dear Mr. Pilleri:
On or about June 20, 2014 a representative of Medford Community Cablevision, Inc. [hereinafter referred to as “MCC”] left copies of the following documents at the Law Department.
1.A copy of a two (2) page “Administrative Dissolution Petition” signed by you on June 18, 2014, addressed to the Attorney General’s Office, Non-Profit Organizations/Public Charities Division;
- A copy of Final Form PC (Form PC-F) for the period of 5/1/2013 through April 30, 2014, consisting of five (5) pages;
- A copy of Form 990-EZ consisting of twelve (12) pages;
- A copy of the Financial Statements of Medford Community Cablevision, Inc as of April 30, 2014, consisting of nine (9) pages;
- A copy of a letter from me to you dated October 2, 2013, consisting of one (1)
page; - A copy of the Officer Certificate of Board Action of Medford Community
Cablevision Inc, signed electronically by you on October 2, 2013, consisting of one (1) page;
- A copy of a Payment Confirmation, dated June 19, 2014, from the Secretary of
State consisting of three (3) pages; - A copy of a one (1) page Continuation Sheet marked “4A”.
page 2
July 7, 2014 Frank Pilleri
Page 2
The basis of the inquiry/request contained herein is the representation made by MCC to the Attorney General’s Office that ‘all of its assets have been distributed to the City of Medford’. This representation can be found in the following documents:
- The statement contained in the Administrative Dissolution Petition that
“Medford Community Cablevision Inc. has distributed all of Us assets to the City
of Medford to be used in the future for the .same purpose as that of Medford
Community Cablevision Inc”]. - The statement made in Form PC-F line 5 that “All of the organizations assets
were distributed to the City of Medford for use in their cable TV programs in the
future. This was done in conformity with MGL Chapter 180 and the Articles of
Organization item 4B (attached) . - The statement made on the Financial Statements, Note 2 that “All assets of the
organization have been transferred to the City of Medford in accordance with the
requirements of law “,
As you are aware, the sole ‘distribution’ from MCC to the City of Medford occurred during January, 2014 when the City, at its own cost and expense, moved all of the equipment/contents located at 32 Riverside Avenue3 to a location ovvned’by the City of Medford, This move included, but was not limited to, all cameras, microphones, monitors, production equipment, control room equipment, furniture and the like that were located at 32 Riverside Avenue.
Outside of the City’s move of the equipment/contents in January, 2014, there has never been any ‘distribution’ from MCC to the City of Medford, Unquestionably, the City of Medford never received any funds from MCC.
Since MCC has filed the Administrative Dissolution Petition under the provisions of G.L. c 180 § 1 lA(c)4, the issue of whether it has “remaining assets” is relevant and must be supported with objective clarity.
1 See Administrative Dissolution Petition, paragraph 7
21 presume that this reference is incorrect and that the proper reference is to “Item 4A” since, indeed, there
is no attachment that is marked “4B”.
3 32 Riverside Avenue was the then location of Medford Community Cablevision Inc.
* G.L. c 180 § 11A (c) states: “If the corporation has no remaining assets, the petition for dissolution shall
be submitted to the division of public charities of the office of/he attorney general setting forth hi
substance the grounds of the application for dissolution together with the forms, affidavit.’! and information
as the division may from time to time may prescribe. If the division is satisfied that the corporation has o will become inactive and that its dissolution would be in the public interest, the division may approve the dissolution of the corporation. “
EXCLUSIVE
July 7,2014 Frank Pilleri Page 3
The following facts underscore the need for MCC to provide additional data and information with a ‘higher level of assurance’ than the data it has presently produced.
First, the Financial Statement submitted by MCC to the Attorney General is based on a “Review” which, by accepted accounting standards, does not result in a very high level of assurance.
In his letter to the MCC Board of Directors which is included in the Financial Statement, David M Jacobson, CPA states that he “reviewed the accompanying statement of financial position ofMedford Community Cablevision Inc, as of April 30, 2014…All information included in these financial statements is the presentation of the management ofMedford Community’ Cablevision Inc”
Mr. Jacobson went on to clearly describe the scope of a “review”. He said:
“A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the object of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I do not express such an opinion” [emphasis added]
Mi’. Jacobson’s statement is consistent with accepted accounting standards. In a publication compiled by the American Institute of Certified Public Accountants [A1CPA] entitled “AR section 60, Framework for Performing and Reporting on Compilation and Review Engagements” there is a description of the limitations of review engagements. This is found in AR § 60.08 states:
“.OS A review differs significantly from an audit of financial statements in which the auditor obtains a high level of assurance (expressed in the auditor’s report as obtaining reasonable assurance) that the financial statements are free of material misstatement. A review does not contemplate obtaining an understanding of the entity’s internal control; assessing fraud risk; testing accounting records by obtaining sufficient appropriate audit evidence through inspection, observation, confirmation, or the examination of source documents (for example, cancelled chech[Pi [bank images); or other procedures ordinarily performed in an audit. Accordingly, in a review, the accountant does not obtain assurance that he or she will become rnvare of all significant matters that would be disclosed in an audit. Ttierefore, a review is designed to obtain only limited assurance that there are no material modifications that should be made to the financial statements in order for the statements to be in conformity with the applicable financial reporting framework. ” [emphasis added]
Page 4
Second, on Form 990-EZ MCC states that its Revenue for the period of May 1, 2013 to April 1, 2014 was 10,737.00,5 Yet the same form states that it began the year on May 1, 2013 with $133,342.00 in “cash, savings and investments”6. In the same Form MCC states that its Total Expenses for the period of May 1, 2013 to April 1, 2014 is $95,555.00. Without more data, these figures indicate a surplus not a deficiency.
Third, MCC held money in two accounts at the Century Bank as late as September, 2013. According to a report to the Board of Directors dated September 4, 2013 from Treasurer Cornelius Murphy the balance in one account was $23,566.99 and $12,627.73 in the other- for a combined total of $36,194.72. Multiple copies of the Treasurer’s report were strewn about on the main floor at 32 Riverside Avenue. The report was issued just one month before the MCC Board of Directors October 2, 2013 vote to dissolve.
Fourth, presuming that MCC had a budget to make improvements at 32 Riverside Avenue, it is likely that any such expenditures would have ended as of the October vote of the MCC Board to dissolve. If so, what expenditures were made after that time?
Fifth, having had a few conversations with the owner of 32 Riverside Avenue, all of which took place in early 2014,1 suspect that there is a possibility that MCC’s rental payments to the owner ceased sometime after October, 2013,1 base this suspicion on his asking me if the City would be paying the monthly rent at 32 Riverside Avenue. Of course 1 informed him that the City was not an obligated to do so and therefore would not do so. If MCC stopped paying rent- how was it spending it’s cash assets after October.
Thus, there is uncertainty- Was there a surplus? What happened to the money in the two Century Bank accounts ? What about other accounts, such as an operations account?
Accordingly, in the interest of objective clarity on the issue of whether MCC has “remaining assets”, I hereby request that MCC provide the following data to this office:
- Copies of the ledgers of MCC containing the details of every expenditure made
by it for the period of May 1, 2013 through April 30, 2014; - Copies of each report of the Treasurer of MCC to the Board of Directors for the
period of May 1, 2013 through April 30, 2014; - Copies of the monthly statements7 from each bank or financial institution with
whom MCC had funds on deposit during the period of May 1, 2013 through April
30, 2014, including the final statement showing a zero balance if the final
statement was issued after April 30, 2014;
5 See, MCC’s Form 990-EZ line 9
6 Sec, MCC’s Form 990-EZ line 22
The statements should include copies of cancelled checks-both sides,
5
- The date and amount of any and all rental payments made by MCC during the
period of May 1, 2013 through April 1, 2014; - The date and amount of any and all payments made by MCC to its employees,
consultants or independent contractors during the period of May 1, 2013 through
April 1,2014; - The date and amount of any and all payments made by MCC to any present or
past members of the Board of Directors of MCC during the period of May 1, 2013
through April 1,2014; - Copies of all comparable data [“comps”], inventories, acquisition documents or
other data that support MCC’s conclusion that the fair market value of the “office,
cable and TV equipment” as of April 1, 2014 was $400,000.00* - A description of what did MCC do with the dollars that it received from its
membership for their annual dues after it ceased operations? When was the last
time that MCC offered a class to any of its members? When did it last broadcast
the production of one of it members? Did MCC refund any membership dues,
either in whole or in part, received by it? If so, how much and to whom?
I respectfully request that you send this data/information to me at Medford City Hall on or before the end of business on July 24, 2014.
Hopefully, the data will reflect the accuracy of the reports that MCC has filed with the Attorney General with a sufficiently higher level of assurance than presently exists.
However, should it fail to do so or should you fail or refuse to comply with this request
on or before July 24, 2014, the City of Medford will take appropriate legal action which
will include but not be limited to filing an objectix>n–tolhe request of Medford
Community Cablevision Inc. to voluntarilyxfissolve as^a Massachusensjiot-for-profit
corporation. /
Ve^/Jruly yo^rs,
‘**• .
MarkE. Rumiey ,J) ff
Cc: Mayor Michael J. McGlynn, Assistant Attorney General, Non-Profit, Public harities MER/mr
See, MCC’s Form 990-EZ Part II “Sale, Exchange, Disposition, or Other Transfer of more than 25% of the Organization’s Assets.
Q
G.L. c. 12, § 8 states: “The attorney general shall enforce the due application affunds given or appropriated to puhlic charities within the commonwealth and prevent breaches of trust in the administrationt hereof.”