Sneak Preview: See How This One Weird Accounting Trick Allowed The American Board of Internal Medicine to Rack Up Tens of Millions of Dollars in Losses and Not Go Bankrupt. Slide Show with Hyperlinks and Sound: http://goo.gl/H1ZXp8

1. Everything you always
wanted to know about
deferred revenue*
* SEE HOW THIS ONE WEIRD ACCOUNTING TRICK ALLOWED THE
AMERICAN BOARD OF INTERNAL MEDICINE TO RACK UP TENS OF
MILLIONS OF DOLLARS IN LOSSES AND NOT GO BANKRUPT.
AT FIRST YOU’LL BE INTRIGUED. THEN YOU’LL BE OUTRAGED.

2. Sneak preview . . .

3. In our last episode . . .
Episode 1: In the Grasp of the Gang

4. . . . WE TESTED Your Knowledge of the mad-capped
financial adventures at The American Board of
Internal Medicine and ABIM Foundation . . .

5. . . . And discovered . . .

6. Administrative dissolution

7. Incorporated in IowA or pa?

8. Not all Donations reported
Not on fiscal year ended June 30, 2012 . . .
. . .or fiscal year 2013 ($2.5M RWJ Foundation)

9. $17,360,000 in cash grants
$1,600,000 in fy 02, $1,000,000 in fy 03, $1,760,000 in fy 04

10. Wasting of non-profit assets
* S&P 500  37.07% per finance.yahoo.com

11. “. . . Oh, the
humanity! what to
do? . . .”

12. All new Vaudeville act!
“Maintenance of certification!”

13. Luxury condo purchase *
* $2,300,000 in cash: Unit 11NW~the ayer (1929)

14. ~Intermission~

15. Non-publicly traded investments

16. ♬ happy Days are here again ♪
Former president Christine K. Cassel, M.D.
Total compensation 2004-2013:$7,249,143
FY 2004 $580,377 FY 2005 $593,014
FY 2006 $653,922 FY 2007 $646,510
FY 2008 $627,472 fY 2009 $865,451
FY 2010 $862,191 FY 2011 $794,852
FY 2012 $786,751 fy 2013 $838,603

17. losses of $39,786,466
Consolidated program service revenue minus program
service expenses for the five years ending June 30, 2013
FY 2009 losses of $11,152,975
FY 2010 Losses of $10,277,735
FY 2011 losses of $7,737,571
FY 2012 losses of $6,270,364
FY 2013 losses of $4,347,821
$9.5 million in consolidated program service losses June 30, 2014

18. In the 5 years ending June 30, 2013, How did
ABIM and the foundation make payroll of
$125,723,269 with program service losses
of $39,786,466?

19. Answer: Deferred revenue
What is “Deferred Revenue”?

20. Deferred revenue is Advance payments of
cash received by ABIM for board
certification owed to physicians in
future years

21. $20,591,558
June 30, 2001
$43,923,573
June 30, 2007
$74,086,713
June 30, 2013
Runaway deferred revenue train
$94,075,214 as of June 30, 2014

22. the$24,662,040 Question
in the 5 years ended June 30, 2013, ABIM collected
$24,662,040 in additional advance payments of
unearned BOARD certification fees (Deferred Revenue)
June 30, 2008: Advance payments of $49,424,673
June 30, 2013: Advance payments of $74,086,713

23. . . . Where did this$24.6
million in unearned cash
go and how much of
it was spent? . . .

24. . . . Find out soon in
episode 2: exposed!

25. . . . Recent updates . . .

26. 02-16-15: ABIM posts
missing financial
schedules after 17 day
campaign on twitter

27. 02-21-15: ABIM doubled cash to $48
million, lost $9.5 million on
program services in FY 2014

28. . . . For healthcare not-for-profit transparency
Donate and fund the fight . . .

29. A A charles p. kroll production (member aicpa)A
Promoting Financial Reporting Transparency
at Healthcare Not-for-Profit Organizations

30. Born in Chicago (south side)
Grew up in Chicago Heights
Loyola university of Chicago
Healthcare forensic accountant
Proud father-runner-drummer
ABOUT

31. A A charles p. kroll production (member aicpa)A
Promoting Financial Reporting Transparency
at Healthcare Not-for-Profit Organizations