Guam -The Liberation Day Committee could be at risk of loosing its non-profit status according to a report issued by the Guam Office of Public Accountability today.
The report states that the LDC has not been held accountable for funds raised during the Liberation Day Activities for the past six years. Under Federal and Local Laws Tax-Exempt entities that fail to file reports for three consecutive years automatically loose their Tax-Exempt status, the OPA report states. According to the OPA there were no returns filed by the LDC from 1995 to 1997 or from 2005 to 2009.
Furthermore executive orders since 2004 required that the LDC donate 50% or its proceeds to the Liberation Day Text Book Fund. The OPA report states that that fund was never established and no deposits were made.
The OPA blames the LDC’s poor financial management on a lack of continuity of its members and a lack of accountability to an oversight body. In the report the OPA recommends the follow:
1. That the legislature amend the laws regarding Liberation Day Activities to require that all proceeds are duly and accurately recorded and reported to the legislature within 120 days of the Liberation Day Carnival.
2. That the Department of Administration be designated to perform the accounting for the Liberation Day Committee
3. That records on Liberation Day Activities be maintained and submitted to DOA
4. That revenues from the festivities be subjected to an annual audit.