Ice Alaska had an audit. It is devastating.
I believe that Ice Alaska's handling of a $1.6 million state grant requires an immediate investigation and a state audit. It turns out that part of the audit work has already taken place.
After writing a blog entry last week questioning the way in which property purchased with public funds was turned into private property, I learned that the state has an audit on file. It's a devastating document.
The audit, performed by Wilson and Wilson, with a cover letter dated Dec. 30, 2014, is exceptionally critical of Ice Alaska and its financial records.
The auditors concluded that the nonprofit group "has not tracked the cost, date in service, and useful lives of much of its property and equipment. The underlying property and equipment ledger used to create these financial statements was not supported with records of purchases or donations."
The audit notes that a major part of the Ice Alaska's financial activities were transactions with D&H Enterprises, a private company owned by Dick and Hoa Brickley, who had served as chairman and business manager of the nonprofit. The audit says this created a conflict of interest, which was not allowed under terms of the state grant.
The auditors also said the $1.6 million state grant agreement required that the funds be used for public purposes and raised the possibility that a repayment of the grant would be required.
Public disclosure and examination of these issues is long overdue.