United Cancer Council, Inc. - Page 84

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          position that, as of April 30, 1989, the cumulative transfers had           
          grown to $2,213,000 and the deficit had risen to $687,712.                  
               In order to wind up the fundraising arrangement between                
          petitioner and W&H, the Escrow Account was kept open until at               
          least September 30, 1989, as petitioner’s last housefile mailing            
          under the Contract was sent out in early May of 1989.  Petitioner           
          expected that W&H would render a final accounting to it on                  
          September 30, 1989.  However, no final accounting was ever made             
          or agreed to by petitioner and W&H.                                         
               Petitioner’s position is that all debts incurred for                   
          prospect mailings had been paid for by the revenues produced from           
          the mailing campaign, and that petitioner did not owe any money             
          to W&H.                                                                     
               2. W&H’s Purchase and Invoice Control Procedures                       
               Similar to the authority it exercised with respect to the              
          funds petitioner sought from the Escrow Account, up until about             
          1987, W&H generally exercised final authority with respect to               
          approving and directing WIB to release funds to pay the direct              
          mail campaign’s expenses.  As indicated above in discussing the             
          Escrow Agreement, the sole exceptions to W&H’s authority                    
          concerned WIB’s transfer of Escrow Account funds to pay “Business           
          Reply” postage and invoices for WIB’s own services.  Beginning              
          about 1987, W&H generally obtained petitioner’s approval with               
          respect to the payment of certain vendor invoices, before issuing           
          payment instructions to WIB.                                                




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