990 Inventory Totals, From $88K to $1.4 million in 5 years Options

[mozart]

shinejoy,

If you read carefully here, you will see that your disappointment should be directed at some of the leadership of 3abn and not the ministry. Many people are and have been blessed by the ministry. The aim of many here on the 3abn Forum is to work to try to save the ministry by adjusting the attitudes and actions of some of those in administration.

PB

very nicely put PB. WELCOME SHINEJOY

[shinejoy]

very nicely put PB. WELCOME SHINEJOY

thank you i have always read here i finely came out lol or in

[Fran]

Can someone explain for me why the following figures for inventory taken from the 990's increase so drastically from year to year?

2000: $88,160 (from 2001 990)
2001: $276,360
2002: $618,377 (from 2003 990)
2003: $850,165
2004: $1,313,507
2005: $1,397,326

I have been waiting for responses as to the original statements. I hate to do long posts, but the finances of 3ABN require more than a sentence or two.

..................$ Increase..........................................................................% Increase
2000..........$......88,160..................................Baseline.................................100%
2001..........$....276,360...............................$..188,200.................................213%
2002..........$....618,377...............................$..342,017.................................124%
2003..........$....850,165...............................$..231,788...................................37%
2004..........$.1,313,507...............................$..463,342...................................55%
2005..........$.1,397,326...............................$....83,819.....................................6%

Using 2000 as a baseline figure, you can see the dollar amount of each year’s inventory increase plus the percentage of the increase over the previous year increase.

To obtain a fair, a better picture, it would be nice to see the Sales and Cost of Goods Sold for these same periods of time.

1. This would suggest there is a good possibility that there was no inventory manager in 2000 that could devote 40 hours per week maintaining the stock levels at the lowest cost possible, yet being able to fill orders for a 2-3 week period. No one has time to run and count how many of a product is available for sell.
2. There is the likelihood the software used by 3ABN is not up to date. There are several software packages available that will cover non-profit entities and enterprises. This type of accounting package is Modified Accrual. It will handle the sales that are used to support the ministry. They have perpetual inventories so you can count on a moments notice what is on hand and what must be ordered. You tell the computer to let the item get down to say 25, you tell the computer to reorder when the inventory hits 25. When that happens, a purchase order goes to the printer and is also filed as a Purchase Order in the software and it can send the purchase order to the vendor in some circumstances. When the order is received. You must pull up the Purchase Order and accept what came in the shipment and tell it what is on back-order to track that. Everyday the computer comes on and the inventory is pulled up the flags will be there. To Do: Order ……, Shipment over due PO#.......... Pay invoice # …………….. There are no holes for things to get “Lost”… When a step gets missed, the computer lets you know.

I would suggest that 3ABN does not have software of this kind

2000

1. The amount of inventory for 2000 could be said to be a reasonable inventory. This would have included Satellites and Receivers.
2. 2000 figures are used as the baseline for the increases from year to year.

2001

1. This is the year the auditors that left 3ABN with sore bottom for sure. The report had to have a devastating effect on Danny and the board.
2. Did these reports go to all board members?
3. Or did the reports get whisked away to the lawyers and no one else got to see them?
4. The increase in Inventory could be from past shipments that had not been processed at the time of their receipt.
5. This increase actually shows that there was an effort to book the entire received inventory.

Here is where I want to stop with some questions and comments.

1. First and foremost, is 3ABN a Business, or a Not for Profit entity?

2. Does Danny own it or do the viewers in the pews own it? (Since the donor’s money was used to create it and fund its activities)

3. The Danny Lees Shelton Printing/Publications Co. does much of the printing of 3ABN items. Do they also reproduce the CD/DVDs, or is this done within 3ABN?

........a. Who does DLS Printing have as customers?
........b. Are 51% or more of the items printed/reproduced for 3ABN?
........c. Shouldn’t the Printing Company belong to 3ABN if this is the case?
........d. Since Danny owns the printing company, is he receiving profits at 3ABN’s expense?
........e. Where is the printing facility located?
............i. Is it on 3ABN property?
...............1. If so, does Danny pay a lease or rent to 3ABN?
...............2. If so, where is that income listed as Income for 3ABN?
...........ii. If the printing company located on Danny Shelton’s 18 acres?
...............1. If so, who built it?
...............2. Did the board approve it, or was it just done?
...............3. Who owns all the assets?
...............4. Were these assets purchased from 3ABN?
...............5. If so, what was the selling price?
........f. Did the board approve the establishment of the Danny Lee Shelton Printing Co.?
........g. How does this stand up against the policy that none are to receive gain at 3ABN’s expense?

Bob, see what you do to me? Sorry for all the questions and such. I have a whole lot more questions about this and other areas of the IL vs. 3ABM Property Tax Lawsuit and 990’s.

I have no clue as to the paper weight of the book in question, but I understand the importance.

Who published the book? Or is that a given?

All of the figures are used from the Inventory figures provided by Bob. Statements are my opinion.

In my opinion, and nothing else, I can see where this reflects some padding of the 3ABN inventory. It looks as if orders were placed to give the printer a profit, but pad the inventory of 3ABN. These are just my opinions mind you.

The increase in 2005 may have been because they had to get more large dishes to replace all the Dish, dishes. However, the largest dollar increase is in 2004. Is this how money was raised to take care of Linda? Is this where the money came to purchases 1/2 of a drastically under valued home?

IMO the dollar increases and percentages for all of these years should be explained.



Don't you LOVE the skin we are in? I sure do!

[Pickle]

To obtain a fair, a better picture, it would be nice to see the Sales and Cost of Goods Sold for these same periods of time.

Fran,

Save3ABN now has the 990's from 2001-2005. That's right. The 2002 990 is there too, something unavailable to me when I started this thread. http://www.save3abn.com/3abn-form-990s.htm

On page 1 you have lines representing inventory sold and non-inventory sold, as well as the cost of goods sold or basis of the items sold.

Attached to the 990 is a series of statements in the back. Statement 4 tends to be the one about assets, and statement 7 and 8 tends to be the one that lists cost of goods sold.

The cost of goods figure in the statement matches the one from page 1, but it is labeled "Cost of Goods - Satellites." Thus, according to the way the 990 reads, the books, CDs, etc. all cost nothing. It is only the "satellites" that cost anything. That doesn't make any sense to me.

Secondly, there was an increase of $4.5 million in cost of assets labeled as "Machinery & Equipment" in 2003 in statement 4. Why such a huge jump? Is that where the license is for WDQN? Of course, it wouldn't make sense to call a radio license "machinery" or "equipment." And even if that is where it is, WDQN only cost $600,000 cash. What was all the other $4 million spent for in 2003?

I've asked a few people and they don't have a clue.

Who does DLS Printing have as customers?

DLS is a publisher. As a publisher, they don't have to have any printing facilities. They can just hire it all done elsewhere. But typically one would expect DLS to be responsible for marketing the book and paying for the printing costs. That's typically what publishers do.

[Fran]

Bob;

I posted before I went to save3ABN.com to see the 990's.

Does this mean these items are open for discussion now? If it is, this thread should be full. Why is it when serious financial items are discussed, the thread dies? We shouldn't be afraid of all those pesky numbers, by the way. They actually tell a very sad story.

Thank you for clarifying the publisher information. Was DLS set up as just extra income for Danny? Danny is an employee of 3ABN. He uses 3ABN to market those goods. Hum. Very interesting indeed!

Thank you for your information. I am also glad all of the 990's including the 2002 990 are present and accounted for.


Bob, about DLS Publications, tell me again, how a publisher gets its income and what expenses would be incurred for that income?

Doesn't 3ABN have its own Marketing Department?

Another author I know writes books and purchases the books and sells them at pennies above the cost of the book. Every time an order is made, he receives the royalties; which he should.

It seems to me that DSL is the middle man getting paid to market his own books? Is this correct? Does he pay 3ABN for advertising the book on 3ABN TV, 3ABN Radio, and on the 3ABN Internet websites?

What I guess I am really trying to ask is why doesn't 3ABN buy the books straight from the printer instead of Danny?

It really looks like this is another way for Danny to get more income since;

1. Danny decides the cost of the book to 3ABN;
2. Danny decides the retail cost of the book to the public;
2. This cost would include his royalties AND a profit;
3. Does he get paid a fee to "Publish" these books at his favorite printer and to Market them all over 3ABN. He must get a healthy income if he will not even reveal that income to the 3ABN Board!

Maybe this is wrong. Did I hear you correctly?

[mozart]

Bob;

I posted before I went to save3ABN.com to see the 990's.

Does this mean these items are open for discussion now? If it is, this thread should be full. Why is it when serious financial items are discussed, the thread dies? We shouldn't be afraid of all those pesky numbers, by the way. They actually tell a very sad story.

Thank you for clarifying the publisher information. Was DLS set up as just extra income for Danny? Danny is an employee of 3ABN. He uses 3ABN to market those goods. Hum. Very interesting indeed!

Thank you for your information. I am also glad all of the 990's including the 2002 990 are present and accounted for.
Bob, about DLS Publications, tell me again, how a publisher gets its income and what expenses would be incurred for that income?

Doesn't 3ABN have its own Marketing Department?

Another author I know writes books and purchases the books and sells them at pennies above the cost of the book. Every time an order is made, he receives the royalties; which he should.

It seems to me that DSL is the middle man getting paid to market his own books? Is this correct? Does he pay 3ABN for advertising the book on 3ABN TV, 3ABN Radio, and on the 3ABN Internet websites?

What I guess I am really trying to ask is why doesn't 3ABN buy the books straight from the printer instead of Danny?

It really looks like this is another way for Danny to get more income since;

1. Danny decides the cost of the book to 3ABN;
2. Danny decides the retail cost of the book to the public;
2. This cost would include his royalties AND a profit;
3. Does he get paid a fee to "Publish" these books at his favorite printer and to Market them all over 3ABN. He must get a healthy income if he will not even reveal that income to the 3ABN Board!

Maybe this is wrong. Did I hear you correctly?

Very interesting observations Fran. I'm listening..........

[Pickle]

Fran,

I don't have all the answers, because Danny ain't talkin'.

I've heard a little, though. And it doesn't sound real good.

In my opinion, if 3ABN is buying enough of the books in one swoop to pay for the entire printing costs of the entire run, if they are doing all the marketing, then really they should be the publisher, and they should pay the royalties to the author.

But what appears to be happening is that 3ABN is paying someone else more for the books than if they themselves had been the publisher. Where is the difference going?

[erik]

Bob;

I posted before I went to save3ABN.com to see the 990's.

Does this mean these items are open for discussion now? If it is, this thread should be full. Why is it when serious financial items are discussed, the thread dies? We shouldn't be afraid of all those pesky numbers, by the way. They actually tell a very sad story.

Thank you for clarifying the publisher information. Was DLS set up as just extra income for Danny? Danny is an employee of 3ABN. He uses 3ABN to market those goods. Hum. Very interesting indeed!

Thank you for your information. I am also glad all of the 990's including the 2002 990 are present and accounted for.
Bob, about DLS Publications, tell me again, how a publisher gets its income and what expenses would be incurred for that income?

Doesn't 3ABN have its own Marketing Department?

Another author I know writes books and purchases the books and sells them at pennies above the cost of the book. Every time an order is made, he receives the royalties; which he should.

It seems to me that DSL is the middle man getting paid to market his own books? Is this correct? Does he pay 3ABN for advertising the book on 3ABN TV, 3ABN Radio, and on the 3ABN Internet websites?

What I guess I am really trying to ask is why doesn't 3ABN buy the books straight from the printer instead of Danny?

It really looks like this is another way for Danny to get more income since;

1. Danny decides the cost of the book to 3ABN;
2. Danny decides the retail cost of the book to the public;
2. This cost would include his royalties AND a profit;
3. Does he get paid a fee to "Publish" these books at his favorite printer and to Market them all over 3ABN. He must get a healthy income if he will not even reveal that income to the 3ABN Board!

Maybe this is wrong. Did I hear you correctly?

Fran,

Please keep the number information coming some of us do not know how to read the numbers but are very interested in them.

Erik

[Fran]

Fran,

I don't have all the answers, because Danny ain't talkin'.

I've heard a little, though. And it doesn't sound real good.

In my opinion, if 3ABN is buying enough of the books in one swoop to pay for the entire printing costs of the entire run, if they are doing all the marketing, then really they should be the publisher, and they should pay the royalties to the author.

But what appears to be happening is that 3ABN is paying someone else more for the books than if they themselves had been the publisher. Where is the difference going?

It seems clear to me that Danny gets it, one way or the other. (DLS the company and Danny Lee Shelton the person are one and the same - Right?)

Why else would he not come clean and at least tell his own board members how much he is making?

Since the donors pay for those book orders through their donations, they might have a strong desire to know this information.

More on this later. I have a meeting in an hour.

[Rosyroi]

About DLS Publishing Co. Inc. I read somewhere else in in a scanned tax info in this forum that Danny Shelton is owner of the co. and DLS Publishing Co. Inc. was at his home address. I wrote the address down but misplaced the address.
I don't know anything about publishing companies but it seems like it would take up more space than someone's home address. Mabe he has a building on the property that does the publishing. Or do I have the idea wrong?

Rosyroi
@}---;---;-----

[Pickle]

Rosyroi,

At the bare minimum these days, you'd need a computer to have a publishing company. You need something to do layout on, at the very least.

Thus a large building is not required.

[Jnana15]

I do hope and pray that the Lord will fix this he is all powerful.

shinejoy...I agree

[shinejoy]

shinejoy...I agree

well a acouple weeks ago my husband wanted me to write to Doug B. see what we could he could thinking of all this stuff going on. Well i got a response would you believe it but it wasn't directly from Doug it was the desk of his Sec. and she said Doug said the church there should be taking care of it and we shouldn't read gossip and pray for 3abn. Some how i wondered if he really sent that. I have alot of repect for Doug and i love to here him but how could not know what is going on!!!! I don't have the letter for seem reason i can't find it

[Fran]

To anyone;

Although Danny Shelton testified that he has written three books about the teachings and principles of the Seventh-day Adventist Church, (Tr. pp. 155-157) those books were not admitted into evidence, nor were the circumstances regarding the religious nature or financial information about the books admitted into evidence. Certainly nothing connects the writing, publication, or distribution of that material to the property at issue.

http://www.revenue.state.il.us/legalinform...s/pt/pt04-1.pdf
the IL vs. 3ABN Property Tax Lawsuit pp 32. middle of paragraph 1.

I will eventually ask about the whole paragraph, but right now:

I wonder why none of Danny's books were admitted in to evidence?

Was the Publisher Danny Lee Shelton?

Were they not admitted into evidence because of the strong desire for prying eyes to stay out of "Danny's" other business?

Surely the cost to 3ABN for those books would be information that would have been good for the auditors to see since the cost does pertain to 3ABN; wouldn't it?

The last sentence makes me laugh. This is the conclusion of the matter! Danny won't give us information we need, therefore, how could it pertain to the subject at hand.

If that is the case, why do they even mention it?

Why even put it in the same paragraph with the matter about 3ABN/Danny not being controlled by the SDA Church?

Was this just a convenient way to bring up the matter of yet "another" instance that information was not provided about something?

I believe it was used as a lead in for the next paragraph. On the surface it looks bad for Linda, but is it really? Later about that paragraph.

The link is an adobe PDF file. You can save it on your computer. It might be a good thing to have in the days to come. I would recommend you download the 990's posted @ http://www.save3abn.com . The two relate to each other and I am sure many will be citing these references in the future.

[Fran]

Fran,

I don't have all the answers, because Danny ain't talkin'.

I've heard a little, though. And it doesn't sound real good.

In my opinion, if 3ABN is buying enough of the books in one swoop to pay for the entire printing costs of the entire run, if they are doing all the marketing, then really they should be the publisher, and they should pay the royalties to the author.

But what appears to be happening is that 3ABN is paying someone else more for the books than if they themselves had been the publisher. Where is the difference going?

Bob;

Checking my notes, I failed to enter a very important calculation!

Just how much did the inventory increase in those 5 years?

$ 1,309,166.00 (Million)

Does this bring this into clearer, new light? Why would inventory increase by that enormous amount? I am so sorry I forgot that big detail!

Remember the books were given away in 2006.

What happened to cause the largest years increase?

What year was it that SkyAngel dropped 3ABN? That would be the year the larger satellites would have been added to the inventory.

When did 3ABN purchase DLS Books? Are all those books still in inventory since there has been no large decrease in inventory?

More questions later when we compare other numbers.

I am slow posting. bare with me. Must be these eyes of mine, plus the new smaller keyboard! Why are the keys so much closer together than before? I want to hit D but get the S instead. Can I retrain my touch or must I put an add in the paper for my old keyboard model that still works?