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IICD Watch - Finances
I may develop this page on TG school finances further but for now this is simply an accounting of the revenue sources and expenses for IICD-MA and IICD-MI.† The categories I use here are based on the ones listed in the IRS tax forms filed by the schools and are likely different from those used† by the schools in presentations.† These categories, however, give a good overview of how the money is spent and the surplus/deficits of the schools.
One thing that is important to emphasize is that the net surplus/deficits reported by both schools does not include the value of the Williamstown and Dowagiac properties since they are owned by the TG company AS Properties and leased to the schools.† This arrangement has the effect of obscuring the considerable monetary gains received through appreciation and improvements to these properties.†
In my mind a more accurate assessment of the net worth of the schools would also include the value of the property.† Legally the TG schools can claim that their landlord (AS Properties) has been the one to capture this gain but in practice the fact that AS Properties is a company controlled by the Teachers Group it is they who have benefited.† It seems largely a game of smoke and mirrors.
And the gains are considerable.† For example the Teachers Group purchased the Williamstown property in 1989 for $550,000 and its current assessed value (based on tax records) is $1,075,000.† This represents a gain of more than half a million dollars.† In addition one should also include approximately $100,000 of the principal of the mortgage that has been paid off since the TG acquired the property.† (This assumes an interest rate of 7.5 percent, a mortgage amount of $550,000 and 13 years of payment)
IICD-MA Source of Revenue and Expenses, 1999 & 2000
The original tax forms (2000) can be downloaded for you own inspection.
 I believe that the category HPP Training is money paid by another TG organization, Humana, to IICD-MA for the training of volunteers.
 Sales of Assets is a difficult category to understand.† In 2000 in involved some kind of transaction (debt-forgiveness) between IICD-MA and AS Properties, the TG company which owns all the TG school properties in the US.
 According to IICD-MA's 2000 tax filing, it had a surplus of $327,000 at the end of 2000.† The bulk of this surplus, however, was not in the form of liquid assets, i.e., cash, but held as loans of 93,558 to IICD-MI and 220,225 to AS Properties.† The exact details of these arrangements (particularly the loan to AS Properties) are unclear from these tax records.†
IICD-MI Source of Revenue and Expenses, 1999 & 2000
The original tax forms (2000) can be downloaded from Guidestar.org for you own inspection.
 It appears that most of the deficit of IICD-MI consists of loans due to IICD-MA.
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