September 7, 2010; Source: New York Post | The New York Post is reporting that the civil-rights group run by activist Al Sharpton has so many financial problems that its future is in doubt. The Post claims it obtained copies of an audit of the National Action Network (NAN) conducted last April. After its examination of the 2008 financial records–the most recently available–auditors from KBL concluded that because of “recurring decreases in net assets” at National Action Network, and its dependency on “advances from related parties and the nonpayment of payroll tax obligations,” there is “substantial doubt about the organization’s ability to continue.” Overall, auditors said that “because of inadequacies in the organization’s accounting records,” it could not offer an opinion on the accuracy of NAN’s financial figures. Among the problems uncovered in the audit were some $1.348 million in delinquent city, state and federal taxes and penalties. NAN officials claim that they have been addressing the concerns uncovered in the audit and that instead of filing for bankruptcy, they has been working to make NAN solvent, “which we clearly have done,” said NAN spokeswoman Rachael Noerdlinger. Future reports will show that the organization is on stronger financial footing thanks to contributions from Sharpton and NAN’s board totaling “over seven figures” to pay off past due taxes,” Noerdlinger said. She added that “there will be no tax liabilities” by the end of calendar year 2010.– Bruce Trachtenberg
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