COSRECI audited accounts

[Cherished]

From wwp (with blank document fixed):

Following enquiries by Senator Nick Xenophon, the South Australian Office of Consumer and Business Affairs has required that COSRECI file AUDITED accounts for the years 2008, 2009 and 2010. Accounts for those years lodged with the UK's Companies House were not audited.


The 2008 audited accounts have now been lodged and are here:
http://www.mediafire.com/?xer0xnbcekkses4

Stay tuned.
​

The version filed in the UK is here: http://www.mediafire.com/?luigkyy2wyn

 

[Panda Termint]

:shark:

 

[Free to shine]

:shark:

 

[Feral]

Is there a forensic accountant in the house?

 

[AnonyMary]

From wwp (with blank document fixed):

Sponge explains:
http://forums.whyweprotest.net/threads/cosreci-audited-accounts.78793/#post-1468159

 

[Lucretia]

This is very interesting, thanks Cherished. Rosalind Robins, the Public Officer, is a member of one of the few stalwart families left to C of $ in Adelaide.

From my very brief reading it seems that the org cannot service its loans, and if they were called in, well.....

 

[Zhent]

I posted this on WWP, A typed out version of an excerpt from some of the new information, with some figures highlighted:

Other information

Since the financial statements for the year ended 31 December 2008 were filed at companies house, the trustees have re-examined the relationship between the UK branc and other organisations and accept that certain entities could fall within the wide definition of related party as defined by FRS 8. They consider that the following paragraph should have been included. As the trustees have agreed to the inclusion of this statement as and addendum to our audit report, our audit opinioin is not qualified in this respect.

Church of Scientology Interenational and its subsidaries and the UK Branch and other churches in the UK/world share similar arims and from time to time provide mutual assistance ot each other and therefore arguably qualify as related parties as defined by FRS 8. The UK branch receives support by way of loans and donations and purchased good and aservices from Church of Scientology International and its subsidaries. During the year, the UK Branch received loans of £309,804, received donations of £74,474, purchased books and other literature to a value of £3,515,432, and was charged £2,179,201 for ecclesiastical management services and courses. At the year end, £19,769,877 was due to Church of Scientology International and its subsidaries and of this amount £12,899,237 is included in Note 12 under "Accurals and other creditors" and £484,913 and £6,385,727 are included in Note 13 under "Loans from other churches" and "Other creditors" respectively. One of the two loans included was charged £505,960 interest on a commercial basis and is repayable on terms yet to be agreed with the UK Branch. The other loan of £484,913 included was interest free and no advances have been received or repayments made in the period.

Flag Service Organisation charged £576,942 for courses provided to the UK Branch. At the year end, £6,730,319 was due to Flag Service Organisation and this amount is included in Note 12 under "Accruals and other creditors". The amount had increased in the period by exchange differences of £262,645 and interest charged of £798,692. The balance due was reduced in the period by repayments of £139,591.

At the year end, £27,070,130 was due to and £Nil was due from other churches.

In addition, the UK Branch recieved donations from other churches amounting to £938,629.

At the year end there was a loan outstanding from the Church of Scientology Celebrity Centre International of £540,482 and this amount is shown in Note 12 under "Accruals and other creditors". The loan was increased by £145,920 in the period. The interest accrused was £106,462. No terms of repayment have been agreed.

At the year end there was a loan outstanding from Scientology Interenational Reserves Trust of £6,539,883 and of this amount £265,000 is shown in Note 12 under "accruals and other creditors" and £6,274,883 in Note 13 under "Other creditors". The loan was increased by £1,357,432 in the period and repayments of £195,000 were made. No interest was charged. The loan is to be repaid over a period of three years, unless the term is extend by agreement.

The amount of £393,012 shown as due to group undertaking disclosed in note 12 to the financial statements relates to the balance due to the subsidariy company, Nesta Investments Limited.

There was no requirements under the Companies Action 1985 for a UK Branch of an overseas branch to be audited and thus unaudited financial statements for the year end 31 Decemeber 2008 were filed at Companies House in March 2009 and it was appropriate that no detailes of auditors remuneration were included in the financial statements. Subsequently, the trustrees requested an audit of these financial statements. The remuneration paid to the auditors was as follows:

Fees payable to the UK Branch's auditor for the audit of the financial statements £20,750

Fees payable to the UK Branch's auditor for other services £21,350

Grant Sellers Limited
Registered Auditor
Charted Accountants
Bank Court, Manor Road
Dorset

Date 27 February 2011

O, the tangled web Scientology weaves.

Follow the money.

 

[Happy Days]

Curiouser and curiouser....

Me thinks they should dig a little deeper

 

[jenni with an eye]

Me thinks they have only scratched the surface

Keep digging, keep looking, keep following the money trail.
:shark:

 

[Free to shine]

Those figures are unbelievable - surely it is ringing loud bells somewhere....I hope so.

 

[scooter]

ps: Wonder if the M & M Show approve of this invest into Wee Davey's affairs?

 

[Lucretia]

I think I am being stupid - but what does the UK branch of the Church of Scientology International mean?? Which org is it??

 

[AnonyMary]

I think I am being stupid - but what does the UK branch of the Church of Scientology International mean?? Which org is it??

No, you are not being stupid by any means.

The UK Branch is the Church of Scientology ie: London Org etc, in England. Since Scientology is not a registered charity in the UK, they have their financial affairs filtered through CORESi in Australia.

CORESI records are being investigated by the australian government because of the issues raised at the Aussie Hearings on Charities last year in which Scientology's tax exempt status was a central issue.

 

[anondelmundial]

I posted this on WWP, A typed out version of an excerpt from some of the new information, with some figures highlighted:



O, the tangled web Scientology weaves.

Follow the money.

I think that this is the classic money laundering scheme. Publish "ins' and "outs" and forget the balances accruing to the local establishment.

The only way the "ins" and "outs" can be reconciled over the long haul is to have the certified financials of every one of the external entities in the Cosreci financials.

Big corporations take the time to track their own incomes and expenses, for the corporation and for it subsidiaries, knowing that they could be audited, and found wanting.

Scientology does the same, but bets the house on the fact that governments have more to do than audit the subsidiary organizations reflected in their reports. It's too much trouble, and the estimated gain is too small to bother with.:confused2:

 

[AnonyMary]

I think that this is the classic money laundering scheme. Publish "ins' and "outs" and forget the balances accruing to the local establishment.

The only way the "ins" and "outs" can be reconciled over the long haul is to have the certified financials of every one of the external entities in the Cosreci financials.

Big corporations take the time to track their own incomes and expenses, for the corporation and for it subsidiaries, knowing that they could be audited, and found wanting.

Scientology does the same, but bets the house on the fact that governments have more to do than audit the subsidiary organizations reflected in their reports. It's too much trouble, and the estimated gain is too small to bother with.:confused2:

I agree, except I do believe it will eventually get done. Much effort, by some posters here and at WWP. has gone into exposing CORESI . No one is going to let up.

 

[Lucretia]

The UK Branch is the Church of Scientology ie: London Org etc, in England. Since Scientology is not a registered charity in the UK, they have their financial affairs filtered through CORESi in Australia.

Thanks AnonyMary. I understand about COSRECI and their status as a charity in Oz etc, but does that then mean that the UK branch of Scientology is the entire body of $cn orgs in the UK? And...if it means that, then per the audited accounts, their entire GI in the whole of the UK from donos for that year amounted to 74 grand! Furthermore, the rest of the money the UK orgs needed to operate on was lent to them by overseas orgs. Where does that money come from? I mean whose pocket is being emptied to prop up the UK orgs, when there is so much demand for money for the ideal org crap etc. Is this just a money laundering system?? Why do they need to launder money?? Are there tax advantages for the US $cn orgs to disappear money to the UK in the form of loans - but no the IRS in the US has given them carte blanche with the taxation stuff.

It occurs to me that the ideal org stuff might be a key - if the money was being invested in real estate in the UK (the staff certainly aren't getting anything!) then, well, that's a nice little earner in years to come, and it spreads the investment too.

 

[Free to shine]

ps: Wonder if the M & M Show approve of this invest into Wee Davey's affairs?

It seems they only just discovered it. Interesting comment today.

freespirit | October 23, 2011 at 8:17 pm |

Whoa! This is extremely significant. This means that all the European RCS are not paying taxes because they were manuevered into the umbrella of Australian tax exempion. If they lose exemption in Australia then all of tjem in Europe lose exemption as well. If so then this is a major battle – yes? No? Can any legal beagles weigh in?

Lucy James | October 23, 2011 at 10:12 pm |

Here’s why COSRECI doesn’t want to open its books.

When I first became the ED of Birmingham org I was instructed that all services had a tax (17 ½ %) and this tax was sent weekly to CLO UK so the “Corporation” could pay this to the tax office (VAT Office.)

But there was a secret that the Treas Sec CLO UK, CLO Execs, CMO Execs, etc. did not want the orgs to know.

Any tax (VAT) added to a bill could be deducted from the overall amount owed. Each quarter Treasury CLO UK demanded the orgs send copies of their bills (electricity, phone, rent, etc) and they used this to lesson the money paid to the Tax Office, but secretly kept the difference instead of sending it back to the perspective org. This could be 3000 to 4000 pound an org for each quarter, with eight Class 5 orgs this was a nice slush fund. (I do not know if this was also the case with AOSHUK whose VAT amount would have been significantly larger) Somewhere around late 1993 early 1994 the ED’s of the Class 5 orgs cottoned on and this practice stopped.

The plot thickens: In 1994 the law changed in the United Kingdom in regards to sales tax (called “VAT, Value Added Tax). A public of Birmingham org who worked for the VAT office brought Haydn and me a copy of the new law stating counseling services as exempt from VAT. Haydn sent a letter off to OSA, CCed to Finance Office and COB.

We were ordered by OSA to keep this “hush” and weekly send the VAT as they needed to do “handlings” on the VAT Office. This didn’t make sense as the law was very clear.

Some where in the late 90’s we were told we did not have to pay VAT on services any more and the VAT Office was “handled”. But to our dismay and the public the prices did not decrease accordingly. So Brits pay more for auditing and training than in the US despite the fact that the 17 % sales tax was dropped.

The VAT office in mid 2000’s reimbursed COSRECI millions (I’ve heard rumor the sum was over 30,000,000) for all the VAT paid from 1994 forward from the UK orgs that should never have been paid.

What does this mean? It means that when the public paid for their auditing and training 17% went to the VAT Office incorrectly. When this was rectified by the VAT Office the money should have gone back to the public.

Instead it was scooped up and sent to the coffers in the US.

Of course they don’t want the books opened. It will show the exact amount and where it went.

http://markrathbun.wordpress.com/2011/10/23/corporate-scientology-targets-south-park/#comments

 

[La La Lou Lou]

The UK finances and Tax avoidances seem a bit confusing. What questions should we be asking UK Ministers and Council heads? Perhaps in this cash strapped economy they might like a little more tax.

They might not want to wake the sleeping dragon by shooing out of the country but they might want to send well armoured heavies in to collect cash.

 

[RogerB]

This stuff revealed in Post #17 above is clear fraud and misrepresentation.

It really belongs in an Affidavit in the hands of the Oz and UK authorities.

R

 

[La La Lou Lou]

so how do we do that, Rog?