Callicrate and Schmitz call for a Forensic Audit – Do we need one?

  • Calling for a forensic audit supports the lie that IVGID and its leaders are frauds
  • Independent audits and state reviews found IVGID finances are sound
  • We should not give in to a small cabal of angry propagandists

No, this would be complete foolishness!

Cost:  ~ $1,000,000

Estimate from Eide Bailly, LLP was $50,000 per account.  IVGID has 2,500 accounts but the investigators would rule focus only on accounts where evidence points.

When should a forensic audit be done? 

When you suspect fraud, and the value of the fraud is more than the cost of the forensic audit.

What is a forensic audit?

From American Institute of CPAs:  “Forensic accounting services generally involve the application of specialized knowledge and investigative skills possessed by CPAs to collect, analyze, and evaluate evidential matter and to interpret and communicate findings in the courtroom, boardroom, or other legal or administrative venue” (see https://www.aicpa.org/interestareas/forensicandvaluation/resources/forensic-accounting.html).

This entails an extremely detailed investigation into all financial transactions collecting evidentiary proof that all accounting transactions were either valid or invalid, and if invalid providing proof of fraud.

What is the state of IVGID’s finances?

  • Annual independent audits show IVGID books are correct for the last 18 years (except for a typo in fiscal year 2016 which was corrected immediately and validated as corrected in the fiscal year 2017 independent audit).
  • Audit results are reviewed and validated by:
  • Nevada State Department of Taxation, Local Government Finance Section –“The Local Government Finance staff reviews and approves the budgets of all local governments within the state and monitors budgetary and financial information throughout the fiscal year” (see https://tax.nv.gov/LocalGovt/LocalGovt_Finance/Local_Government_Finance/).
    All such reviews have been have been approved.
  • Government Finance Officers’ Association – Among this national organization’s goals is:  “To develop and encourage the use of uniform standards and proce­dures of governmental finance management” (see http://www.gfoa.org/).“The Government Finance Offer’s Association established the Certificate of Achievement for Excellence in Financial Reporting Program (CAFR Program) in 1945 to encourage and assist state and local governments to go beyond the minimum requirements of generally accepted accounting principles to prepare comprehensive annual financial reports that evidence the spirit of transparency and full disclosure and then to recognize individual governments that succeed in achieving that goal” (see
    http://www.gfoa.org/award-programs/certificate-achievement-excellence-financial-reporting-program-cafr-program).   IVGID has received the Certificate of Achievement for Excellence in Financial Reporting for 17 years

Why would Callicrate and Schmitz want a forensic audit?

Over the years, we have all heard very loud and angry complaints from a very small number of residents claiming that IVGID finances are variously “cooked”, fraudulent, incorrect, etc.  These loud voices very cleverly cherry-pick small facts and present them out of context to concoct the story of their choosing, which is completely false.

Callicrate and Schmitz have chosen to fall for this propaganda.  Rather than investigate these false claims themselves they would rather give in to the propaganda and spend an exorbitant amount of money to prove what audits and government reviews have already proven.  Is this what we want for our community?  To be ruled by a small cabal of angry propagandists?