}

Tuesday, September 2, 2014

NO REPAYMENT PLAN CONTRACT BETWEEN SMART SCHOOLS MANAGEMENT AND GRAND TRAVERSE ACADEMY: Effort To Retrieve Remaining $1.6 Million Dollars In Jeopardy?

Miss Fortune has discovered that the Grand Traverse Academy has no contract confirming the repayment plan agreed to by Smart Schools Management, Inc. as outlined in the Academy's 2013 fiscal audit.



Academy Board president, Brad Habermehl, responding in an email this morning to my Freedom of Information Act request seeking a copy of any agreement/contract confirming the details (and contingency plan) of Smart Schools' repayment of a $2.38 million amount classified in the Academy's 2013 fiscal audit as a "prepaid balance", confirmed that "no documents that exist beyond the 2013 audit, which can be found on the Academy's website, pertaining to your request."

In other words, it appears that the Academy board did not amend its management agreement with Smart Schools to incorporate the plan that called for Smart Schools to work off the $2.3 million dollar "prepayment" by "partially reducing cash transfers for future management fees through June 2016", leaving the recovery of the remaining $1.6 million in jeopardy.

Yes, there's nothing in writing!


Holy s**t!

THE $2.38 MILLION DOLLAR PREPAID EXPENSE

The official 2013 Grand Traverse Academy audit report stated that in addition to receiving “prepaid management fees”, Smart Schools Management also had the ability to “transfer funds between the Academy’s and Smart Schools Management, Inc.’s bank accounts” without prior approval.

The audit report revealed that on behalf of Smart Schools Management, Ingersoll "took cash advances" for the management fee each year in the beginning of the school year based on the budgeted figure and "without further Board action".

The audit report revealed that Smart Schools Management agreed that it "owed Grand Traverse Academy an amount classified as a prepaid balance" ($2,338,980), and worked out a repayment plan with the Academy. The plan called for Smart Schools to work off the prepayment by "partially reducing cash transfers for future management fees through June 2016".

In plain language, the Academy would simply deduct the $2.3 million overcharge--in three installments--from Smart Schools' expected future management fees.


 According to the 2013 financial audit, the prepaid management fee “reductions” were scheduled to be received from Ingersoll's Smart Schools Management, Inc. as follows:

2014: $774,000
2015: $960,000
2016: $604,980


It's now clear from court documents recently made public in Ingersoll's federal fraud case that he was aware of the impending charges well over a year ago, and likely made the agreement with the Academy for repayment while his attorneys were negotiating a plea bargain

It remains unclear, however, how much the Academy board knew...and when they knew it.

THE CORPORATE VEIL...OR THE HOBOKEN SHUFFLE?

I thought I was jaded because I'd spent nearly ten years living in New York City, but it's all starting to make sense! 

This is pure gangsta—almost as badass as Fred Williamson in "Black Caesar"!  

I'm diving down deep into the skeptic tank, because this new revelation calls into question the remarks made recently by the Academy's attorney, Kerry Morgan.

Quoted in a Traverse City Record-Eagle article, Morgan stated that “he’s been looking into how and whether it’s even possible the school can retrieve the $1.6 million from Smart Schools.”  Morgan went on to ponder whether there’s even a “legally enforceable obligation for that money to be paid.”

Miss Fortune has reached out to Morgan for a comment, and will provide an update as soon as possible.

Just hope it's not more smoke-and-mirrors bloviating about "piercing the corporate veil"!

No comments:

Post a Comment