Financial Audits Give USET Clean Bill of Health

Source :  USET

In response to allegations made by USA Equestrian (USAE) President Alan Balch, the United States Equestrian Team (USET) has undergone extensive audits by the United States Olympic Committee (USOC) and by the independent audit firm, Eisner LLP. The two separate audits have found that the USET is in sound financial condition and that Mr. Balch’s allegations against the USET are totally without merit.

The USOC determined that accounting documentation, audited financial statements, and interim reports have been prepared appropriately. Upon review of all appropriate information, the USOC’s Audit Division found that although the USET suffered a loss in 2001, it had profitable years prior to that which left its net assets at $8,295,739 even after the losses of 2001. The USOC reported that at the time of the audit, which was held in August, 2002, this year’s operations were in the black and all of this year’s obligations had been met on schedule.

This compares quite favorably with the USOC Audit Division findings about the USAE financial situation. The USOC audit found that USAE has operated at a loss for at least three consecutive years. The audit reported that “USAE is overextended by debt” citing a short-term debt of $1,672,749 and long-term debt of $2,515,000. Its net assets were found to be $2,675,909, significantly less than the net assets of the USET and barely enough to cover USAE’s long-term debt.

Along with the USOC’s Audit Division, Eisner LLP, an independent outside firm, also investigated the various questions raised by Mr. Balch. Eisner LLP, like the USOC, found the USET to be financially stable and operating in accordance with all Financial Accounting Standard Board requirements.

Over the years, USET finances have undergone regular audits by the USOC, including the most recent one that took place in August. The USET has continuously been found financially viable and to be operating in complete compliance with all USOC and industry-standard financial reporting requirements.

“I could not be more pleased with the findings of the USOC and Eisner LLP audits,” said USET Chairman Frank V. Lloyd. “Alan Balch gave the USOC a detailed and specific list of alleged deficiencies related to the USET financial situation and they have all been shown to be totally unfounded.

“Alan Balch has been misrepresenting both the USET’s and USAE’s financial situations for quite some time and now, finally, these totally independent reviews have revealed the true picture.”