United Cancer Council, Inc. - Page 85

                                       - 69 -                                         
               During 1984 through 1989, W&H generally furnished WIB with             
          copies of all vendor invoices along with check requests and                 
          payment instructions.  WIB relied on W&H to tell WIB that                   
          petitioner had approved the check requests.  When WIB paid an               
          invoice, it promptly sent to petitioner a copy of the invoice,              
          the check request, and payment information.  Any time that                  
          petitioner called WIB to ask questions about an invoice, WIB                
          referred petitioner to W&H, because WIB did not review the                  
          correctness or appropriateness of the invoices to petitioner.               
          Petitioner never asked WIB not to pay a vendor invoice.  However,           
          on at least one occasion W&H authorized a payment without                   
          petitioner’s approval; W&H finally agreed that it would pay that            
          bill.                                                                       
               In a memorandum dated October 15, 1985, Watson addressed and           
          discussed a number of matters raised during an October 8, 1985,             
          meeting between himself, two of petitioner’s directors, and                 
          petitioner’s executive director.  Among the matters dealt with in           
          the memorandum are W&H’s procedures with respect to its issuance            
          of purchase orders, processing of invoices, and issuance of check           
          requests to WIB to pay invoices.  W&H’s asserted practice was to            
          send to petitioner copies of purchase orders for all goods or               
          work contracted by W&H.  After completion of the work or delivery           
          of the goods and W&H’s receipt of an invoice from the vendor, the           
          W&H account executive reviewed the invoice for accuracy and                 
          returned it to W&H’s accounting department.  A check request was            




Page:  Previous  59  60  61  62  63  64  65  66  67  68  69  70  71  72  73  74  75  76  77  78  Next

Last modified: May 25, 2011