Ancient & Accepted Scottish Rite of Free Masonry Southern Jurisdiction

“The organization's leadership engaged an attorney and a forensic accountant in 2016 to conduct a full scale investigation of its internal financial operations. Over the course of a year, the investigation revealed misappropriation and misuse of the organization's assets, including the following: -inaccuracies (payee and category) in financial records. -hundreds of thousands of dollars in unpaid loans, inappropriate compensation and advances to employees. -failure to accurately record and report personal expenditures in financial statements. -$17,000 in purchases for an employee's daughter's home businesses. -credit cards issued to non-employees which were used for personal expenses. -significant disparities between the organizations financial statements, federal tax returns and supreme council reports required to be submitted annually. -an unsecured loan for $100,000 to a newly formed entity owned by an individual. The loan went into default and was uncollectable. -a $300,000 loan to an advisor, which was not repaid and which was later characterized as an advance payment for 10 years of prepaid services which services have not been provided. -over $25,000 paid annually to an accountant to prepare irs form 990s that was an ongoing expense for at least ten years. The investigators have conducted interviews of some of the individuals involved with the issues identified in the investigation, and may conduct additional interviews. The advisory committee is in the process of evaluating all of the data from the investigation, and will make decisions regarding possible remedies, including, but not limited to amending 990 forms and evaluating civil and/or criminal redress. Additionally, the organization's new leadership has developed and is in the process of developing better financial controls and practices to maintain accurate financial records, to establish transparency and to maintain the integrity of the organization.”

“The form 990 is submitted to the treasurer and president of the organization for their review before it is filed.”

“Copies of these documents are provided at the organization's office upon request.”

“Accumulated losses on investments -494,631.”

“This form 990 was prepared based on incomplete information, and accordingly may require amendment when more accurate information is available.”