[Lnc-business] Audit Committee, Bequest

[Gary Johnson]

To the Audit Committee and the Libertarian National Committee,

As the LNC member of the Audit Committee, I have read the November 10, 2015,
"Staff General Comments with Regards to the Audit Committee" by Robert Kraus,
the operations manager.

Based on some of the information in the staff response, I have changed my mind
on when the bequest from Mr. Shaber should be recorded from that it should be
recorded in 2014 to that it should be recorded in 2015.

Before I read the staff response, I was aware that the estate had notified the
Libertarian Party in late 2014 of the bequest in the will. I was under the
impression that, although probate had not yet occurred, the will did not appear
to be contested. And I thought the dollar amount of the bequest was not in
dispute. Based on those assumptions, I thought the bequest could be recorded in
2014.

But, now, I believe the dollar amount of the bequest was not known in 2014. I
did not realize or I did not pay attention to the fact that in 2014 the amount
of the bequest was estimated and the estimate was changing significantly.

I base my change of opinion on the following two paragraphs on page 2 of the
staff response:

"Time line of bequest: We were first informed about the bequest October 14, 2014
with an estimate of $50,000, shortly afterward told we would be receiving an
unspecified amount more. Bill Hall, from discussions with the estate, estimated
we might see an additional $200,000 for a possible total of $250,000.00 –
however the total amount remained quite fluid for the later part of 2014 and the
first half of 2015 with totals going up and down by a wide range. It was because
of this inability to accurately determine the actual amount we would receive
that the Treasurer, with the help of the auditor, came up with the policy
described above.

"We received the first installment of $33,400 from the trust February 25, 2015.
We only just recently (September 24, 2015) received the “final amount” of the
bequest – which totaled $235,575.20 ($202,175.20 remains in escrow). This is
$14,000 less then the number we anticipated in 2014 yet $10,000. ABOVE the
estimate used for the revised 2014 FS the auditor prepared per the audit
committee chair’s demand to rebook the bequest (against management’s expressed
wishes) into 2014 vs. 2015."

After reading the staff response and after talking about this on the telephone
with Bill Hall, I now believe the bequest should be recorded in 2015, not 2014.

Gary Johnson
512-441-6378