Regular readers of this blog may recall that I previously broke the story of the incredible debt burden being carried by the Alberta Alliance at the end of the 2004 election. Well, I have just reviewed the Financial Statement for 2005, and the river of red ink continues to flow unabated.
Here is a summary of the salient points from the filed statement:
- on Dec. 31, 2005, the AAP had total cash assets of $18,185.00, and total debts of $402,518.00, for a net debt of $384,333.00;
- during the year ending Dec. 31, 2005, the AAP had incoming revenues of $108,578.99, and expenses of $112,810.00, for a net deficit of $4,232.00;
- the AAP revenues included $20,000.00 for leadership candidate fees (4 candidates at $5,000.00 each);
- the AAP had no income from fund-raising functions whatsoever.
There is an additional observation from this filing that strikes me as particularly important:
When one looks at the liabilities of the Alberta Alliance listed on their Financial Statement for 2004, there are two line items: a loan of $115,000.00, and accounts payable of $280,432.00. In 2005, the liabilities are almost identical - a loan of $115,000.00, and accounts payable of $287,518.00.
Interesting.
If you look at note 6 to the draft 2004 statement, it would appear that the $115,000.00 loan is non-interest bearing, so that would explain why that figure isn't changing - the Alliance has decided not to make a payment on it. But how does one explain the high accounts payable figures? Usually accounts payable are interest bearing after 30 days, and the interest rates are usually pretty high. Why is the Alliance carrying such high accounts payable?
Keep in mind that the Alberta Alliance recently changed (i) the location of its office, (ii) the hosting of its website, and (iii) the job description of their Office Administrator.
Were these changes made in order to cut costs?
Are creditors being paid?
I don't know the answers to these questions ... yet. But, I do think there is a story here, and I will be pursuing it.
Merry Christmas.
