- 74 -
Concerning moving the Escrow Account Payable management
to the [petitioner’s] Carmel office early in 1987, you are
probably referring to the discussion we had concerning this
matter during the last visit by you and * * * [petitioner’s
executive director] to our offices in Alexandria. At that
time, we mentioned that only one of W&H’s clients handles
this function in that way. That organization maintains a
surplus cash balance in their accounts in excess of $2
million and a positive fund balance of over $400,000. It is
our policy that once a client is able to develop a positive
fund balance or the outstanding deficit can otherwise be
reduced to a reasonable level, we would be supportive of
such a move as we have been in the past.
Frankly, with nearly $500,000 in outstanding postage
loans to UCC on the books as of last week, it makes us
somewhat nervous to hear mention of this again for the
reasons outlined in your letter. Certainly those areas that
were brought up can easily be overcome. If, on the other
hand, there has been any serious discussion within your
organization which is outside the scope of what we have
already stated, I would appreciate your advising me so that
we can review this with * * * [Watson] and * * * [the W&H
executive who handled petitioner’s account on a daily
basis].
In her letter dated January 30, 1987, to Watson,
petitioner’s chief financial officer discussed her understanding,
from her meeting and discussions with Watson and two W&H
executives on January 28, 1987, of some actions W&H would take to
address petitioner’s concerns with respect to the conduct of its
direct mail campaign and the accounting for and disbursement of
funds to pay the mailing campaign expenses. Among these actions
to be taken by W&H, the letter states that Watson “will write an
addendum to the * * * [Escrow Agreement] which would allow the
Council to approve invoices paid by the Escrow Agent [WIB]. The
Council would be able to provide written requests for payment of
invoices without the approval of * * * [W&H].” With respect to
Page: Previous 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 NextLast modified: May 25, 2011