Update: WLBT reports the zoo lost its accreditation. The zoo will appeal the decision.
Auditors of the Jackson Zoological Society warned of financial problems in a January 2013 report submitted to the city. However, the report was not provided to the city council. A January 9, 2013 letter accompanying the audit stated:
As discussed in Note 14 to the financial statements, the Zoo's current liabilities exceed its current assets by $254,506. This indicates that the Zoo may not be able to pay its liabilities as they come due and payable. These conditions raise substantial doubt that about its ability to continue as a going concern. Management's plans are also described in Note 14.
Ward 6 Councilman Tony Yarber told JJ the city council never received the report. JJ filed a public records request for the most recent audited financial statement. The city provided this report. However, the contract with the Jackson Zoological Society states the non-profit is supposed to provide quarterly financial statements to the city. JZS was supposed to provide the statements on April 15 and March 15. Another one is due on October 15. JZS has not provided one since January. Some notes from the audit:
*Zoo lost $550,770 in 2011 (P.3. Subtracted revenue from expenses on income statement) and earned a profit of $49,799 in 2012. However, that data is before September 30, 2012. Nearly a year ago.
*Admissions were only 35% of Zoo revenue in 2011 and were equaled by a city of Jackson grant. Admissions were 30% of revenue in 2012 as Jackson increased the grant to $929,200. However, $653,437 was included as "net assets released from restrictions satisfaction of purpose restrictions (DFA provided assets to the zoo with conditions placed on them.)
*Note 8: JZS pays Trustmark $68,743 each year. However, a balloon payment of $431,337 is due on March 15, 2016. Remember those grant payments from Jackson? That is the collateral.
*Note 9: City claims JZS owes $755,000 for water and sewer use. Zoo only recognized $358,512 and disputes the rest.
Kingfish note: Absent any other information, it is unfortunate the contract has not been followed. Several councilmen complained to me they were blindsided by the zoo's problems. Apparently the Johnson administration did not provide the most recent audit to the city council. Such information is not a surprise to those familiar with Jackson city government worked over the last few years. Making matters worse, the zoo apparently did not provide the quarterly financial statements as required by contract.
The Kingfish went to the zoo yesterday and tried to obtain a copy of the most recent tax return (Form 990). A representative informed me it would be posted on the internet by Friday and they couldn't give me one since Executive Director Beth Poff was out of town. I informed her that IRS regulations mandate nonprofits will make available to the public a most recent copy of their tax returns during business hours on demand. I was informed the zoo did not have one available but one would be provided by Friday. What is the Kingfish's opinion? Sloppiness. Sloppiness in communication. Sloppiness in reporting. Throw in a certain administration's tendency to jealously control all information and here we are. However, opinions can change. More information will be posted as it becomes available.
21 comments:
More fully sourced, detail rich and research derived reporting you'll never read in the Jackson Free Press.
Kingfish is the best investigative reporter in Mississippi!
Good reporting KF. Not everyone wants to spend the time to look at audited financial statements.
Yeah you're on it with this one KF. Keep up the good work.
Though substantial the money being pissed away at the zoo pales in comparison to the torrents of red ink taxpaying Jacksonians are forced to endure from JATRAN and the debacle of the convention center.
Yarber and the rest of the stupid redistributionists on the City Council can feign and parry about this and that but the bottom line is that they keep voting for budgets that condone these massive shortfalls each and every fiscal year.
Hey, here's an idea Tony. Jack up taxes some more and let's roll with an increased sales tax rate. That is a whole lot easier to do that address the real illness.
Now both the City of Madison and parts of Rankin County are going to move away from shipping sewage to Jackson (and paying for it) leaving even more of the calamitous financial disaster to the tired shoulders of the rapidly shrinking tax base.
Jackson's bankruptcy approaches.
Thank goodness Chuckster has hired a former Detroit failure to help guide the process of Jackson from shit in the bowl to the actual flush.
And WLBT now reports that the zoo has lost its accreditation. Though the zoo will, of course, appeal the decision.
Zoo Loses Accreditation
Thanks 9:54 AM-- we have not seen the bottom of the sewage pit just yet.
MORE crapola. The Zoo lost its accreditation last SUNDAY but it only comes to light today. Shut down the damn Zoo and cut the losses.
It's serious when an auditor makes a going concern statement in their report. They really don't like doing that because the client usually gets upset over having that issue pointed out. Also, something to bear in mind is that if the water and sewer bill were included at $700,000, the excess of current liabilities over current assets would look much worse.
Close the damn zoo and stop throwing good money after bad.
While you are digging KF take a look at the Jackson Zoo Foundation which files separately from JZS.
Curious if the accreditation loss was also being kept from the Council.
Hard to reconcile how a big talker like Stamps goes wiggy over a Fortification change order but isn't raising a ruckus about the Jackson Zoo money pit.
Btw, you won't hear a peep 9:29 AM out of the JFP because Donner's "bestie" Prichard Morris sits on the BOD of the JZS and has had her butt parked in a ringside seat to the train wreck.
You're wrong @11:26. DonnerKay's bestie is herself.
Usually somebody says 'follow the money', but, in this case, follow the employment roste. It will probably be claimed that personnel files don't exist at a non-profit; however, somebody has the payroll records. They'll probably never surface, but would be interesting to see who all is dining in the club car while this train wreck occurs. Vegas odds say Harvey knows every one of them by name and 'close cousin' status.
WLBT has the answer to the Zoo's woes hidden at the end of their story:
Zoo attendance is down 35 percent over the past three years. A slight uptick was seen last year, when the zoo added a splash pad.
Turn the Zoo into a water park. Take a page from the brilliant Metrocenter ad campaign of a few years ago ("Get your shopping on/Get your leasing on") and put billboards up around town that say "Get yo splash on!". Admission is $10, payable in cash or SNAP. Turn the opening into a gala event with a cameo by the Mean Machine Dancers from the old Black Gold program. They can recreate the scene where they chase the train into the tunnel, then exit being chased by the train (with one dude on the cow catcher).
Of course you could just cry racism.
What a shame, I fear we won't be able to debate the moving of the zoo much longer, as there won't be anything to move.
Can anyone who has been in Jackson for a while, explain why Livingston Lake is closed? Open that, charge a small fee, and the neighborhood suddenly has something positive to hang its hat on.
That's the problem with those pesky auditors. You let those people get one foot in the door...they start asking a lot of questions and adding up columns of figures....they print reports and mix in a healthy dose of sunshine.
Then, church is out!
Oh, Lordy!
Dear kf please please ask them why they took federal money ear marked for the exhibits in the education building and used it to pay off "debt" the deputy director and director said they would replace it in the summer with profits but never did and that my friend is why there now sits an empty room in the education building which btw the deputy director now uses as his office and there is only a classroom with fold out chairs and card tables for the children what happened to the exhibits the play area and all the educational activities oh and the tables and chairs was also a grant for 800, 000 dollars but the kids get card tables and chairs and one classroom in a million dollar educational building built for them and they have the nerve to name it the gertrude c ford educational building if she could see that she would rip her name off it so fast your head would spin they gaurd their records because they are padding those books
Let us dig up even more history at the zoo and the old educational building Faith Hills brother used to be the educational director at the zoo he got his sister to give a free concert all proceeds were to go to a new education center after she raised all that money for the zoo the deputy director took the funds and used them for different stuff in the zoo and told faith hill he was going to do what he wanted to with the money faith hill said she would never help the zoo again and the brother was no longer the director this is what kind of person runs our zoo in jackson and btw call and speak to faith hills reps or her brother they will verify this to be true
Wesley, Faith Hill's brother, was a great asset to the zoo while he was there. My children went to Zoo Camp every summer they could growing up, mostly because he ran a top notch program. My oldest eventually graduated college, came back and worked at the zoo for two years, then was accepted to vet school where she is now. Most of this is because of Wesley. I grew up myself coming to Jackson and going to the zoo, and swimming in Livingston Lake and having picnics. What a shame.
To 12:24 and 12:32: after reading that I suddenly had a craving for a comma.
Thanks for that post 5:25. I was trying to remember the name of Faith Hill's brother. I used to see him on television talking about the zoo and showcasing various animals. Did not know if he was still there or not. Sounds like your family's experience with him (and the impact of it) was a very positive thing. Hope your daughter continues in that admirable profession.
Though I can't find it now, on either WAPT or WLBT last night at 6:00 the zoo director was asked about filing quarterly reports. She said she did file the reports, and I believe she said she turned them in to the Budget Dept. of Jackson. Hmmm. So if that's true, why didn't the City Council get them? Not sure who is telling the truth here.
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