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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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