February 25, 2013

February 25, 2013
Is NMAC going down the tubes with NAPWA?

Welcome to another day in my life. Today is Monday and I hope you had a beary safe and great weekend. It was another very busy weekend for Dab the AIDS Bear and me.

I recently blogged about NAPWA (National Association for People with AIDS) filing for bankruptcy. But is our other national organization, NMAC (National Minority AIDS Council) far behind?

Could this be why Paul Kawata, CEO of the National Minority AIDS Council refuses to make the organization’s financial data available on NMAC.org?

A review of the 2010 and 2011 IRS Forms 990 (available on Guidestar.org) reveals the following:

NMAC’s income dropped for $6,210,783 in 2010 to $4,635,741 in 2011
NMAC’s expenses in 2010 were $6,263,314 and in 2011 were $5,573,368
NMAC had a net loss of $52,531 in 2010 and $937,627 in 2011
Net assets dropped from $4,225,501 to $3,262,708.

Among the major expenses NMAC reported in 2011:

$1,424,963 for “Technical Assistance and Treatment Training in areas such as fiscal management, resource development and other organizations and management issues including onsite training to community based organizations”
Conference income of $878,656 and corresponding expenses of $1,880,341 for a loss of $1,001,685.
ZERO in grants to various HIV organizations in 2011, compared to $455,773 in 2010
Salaries and compensation of $2,103,646 in 2011 compared to $2,098,321 in 2010 (45.4 percent of total 2011 income)
$242,410 was spent in 2011 for “communication used to educate and develop consensus among individuals and minority based organizations about HIV/AIDS”
$439,751 was spent for travel expenses in 2011
$456,000 was paid to a consulting firm (BDO USA PO Box 642743 Pittsburgh PA 15264)

In addition to making available the IRS form 990′s and NMAC audits on the organizations website, there are many questions that Paul Kawata has to answer based on a preliminary review of the 2010 and 2011 990′s. Among the questions that demand an answer?

Why was there a 25.4 percent decrease in income and only a 11 percent decrease in expenses?
Why was $456,000.00 spent on a consultant (BDO USA) in 2011?
Who is BDO USA and what consulting services did they provide to NMAC in 2011?
Why was there a loss of $1,001,685 on NMAC conferences in 2011?
How does NMAC justify over 45 percent of total income being spent on salaries?

Paul Kawata has a responsibility to operate NMAC in an open and transparent manner; a responsibility he so far has shoved aside in favor of ignoring the mounting loss and questionable expenditures.

Kawata takes pride in being the longest serving Executive Director of a National AIDS organization. Absent answers to the questions that are being asked and a turn-around of NMAC’s current trajectory we may quickly be approaching the point where a retirement party should be planned.

Hope you have a beary safe and great Monday!

Until we meet again; here's wishing you health, hope, happiness and just enough.

big bear hug,

Daddy Dab