New World Believers’s financial statements are nonsensical, and the Escambia Children’s Trust should NEVER have been accepted them. In fact, I’m not sure they were produced by anyone with an accounting degree.
FY 2023-2024
On Sept. 9, New World Believers founder Rodney Jones emailed Lindsey Cannon, Tammy Abrams and Deborah Ray of Escambia Children’s Trust the financial statements prepared by its bookkeeper, Justina Royster of Reliable Tax & Financial Services, for the fiscal year ended Sept. 30, 2024. See NWB HOOPS 2023-2024 Financial Report
Under the Statement of Activities: The revenue from program fees ($329,190) doesn’t match what the Trust reported in its annual report for NWB expenditures- $392,190.
Red Flag 1: The accountant transposed the numbers. Yikes!
- Plus, the Trust only reimburses providers for what they spend. The providers have to provide receipts before getting a check, so NWB program fees should be offset by expenses and show no profit.
However, the Statement of Activities only shows under expenses:
- Program Fees $100,000
- Administrative Expenses: $45,408
Red Flag 2: Adding to the confusion, the accountant reports $ 100,000 + $45,408 = $183,782, leaving Net Assets (which should be profit) of $145,408.
- The actual math is $329,190 – $145,408 = $183,782 – the expenses and net got switched.
Under Statement of Financial Position: If the NWB had a $183,782 profit, that amount should be in its checking account. However, the Statement of Financial Position shows $72,180 in cash…