October 21, 2014
On Saturday, October 18 the Executive board held a Special Meeting
in Chamberlain, SD. This meeting was
requested by a majority of the District Presidents for the purpose of
discussing the Department headquarters staff. Contrary to many of the rumors
that you may have heard, this meeting was NOT for the purpose of firing the Department
secretary but rather to address the ongoing issue that we have regarding our
As individuals you all file a yearly tax return, as a
nonprofit organization we are also required to file a tax return, referred to
as a “990”. Our financial year ends on April 30; as of this date we have not
filed our “990” for the year ending April 30, 2013 or for the year ending April
30, 2014. The lack of filing is due to
the fact our financial statements have not been completed.
Imagine running a business and not knowing what sales and
expenses were for two years. How would
you know if you could afford to give your employees a raise or to take a
vacation? As an organization our mission
is the Veterans – but in order to work our programs, provide shower items to
the VA’s, and support our Veterans in the many ways that we do with monetary
donations we need to know where our money is. That is why these financial statements are so
Also, as a nonprofit we have an obligation to file our 990
with the IRS by the due dates specified – and we have not done that.
In order to address these concerns the Executive Board
passed four Resolutions on Saturday, October 18th. This is a summary of those Resolutions:
2014-001: Department Secretary and Department Treasurer are suspended
with full pay and benefits, until such time as the Executive Committee resolves
the outstanding issues and so long as they comply with all requests to turn
over records and property of the organization.
2014-002: Department President shall appoint a committee under the authority of
the American Legion Auxiliary Department of South Dakota By Laws, Article II.
to carry out the business of the Department with minimal interruption.
2014-003: Department Finance Chairperson is instructed and authorized to
immediately collect and take custody of all financial and other records of the
Department currently in the possession of the Department Secretary and/or
2014-004: Department President is authorized to contract with a reputable
accounting firm to conduct an audit of the Department’s accounts, monies,
warrants and any other financial matters
action of the Executive Committee in no way conveys or denotes that the
Executive Committee has found any wrong doing on the part of the Department
Secretary or Department Treasurer, but rather that it is exercising its legal
and fiduciary obligations to the corporation as corporate officers.
For every Auxiliary member that supports this move there is
one that does not. This has been a very
difficult decision for many of us, and definitely not an easy one, nor one that
was made without legal advice. People
will be critical of these decisions; stating it was not necessary. Others will crucify us for not doing
something sooner and wanting to know why it was let to go on this long. And many people will not take the time to
read this entire article in order to become informed. Pardon my French “But damned if you do and
damned if you don’t.”
Our focus is Veterans, Active Duty Military and Military
Families – but in order to carry out the mission of our organization we must
have our affairs in order.
In the Spirit of Good Will!!
Click here for a link to Auxiliary 201-Piedmont
Click here for a link to Veterans Holiday Relief Drive
Click here for link to Fall District Meeting 2014 PowerPoint Presentation (may show as a downloaded file at the bottom of your screen and you will need to click a second time on that downloaded file to have it show fully on your screen)