Near the end of 2011 Chelsea Clinton who felt uncomfortable about the way the Clinton Foundation was being run ordered an audit their operations. Called the Clinton Foundation Governance Review, the emails with audit were released by Wikileaks on Thursday. The audit was conducted by the Law Firm of Simpson Thacher (embedded below). Overall Simpson Thacher said that Clinton Foundation did not have the necessary independent oversight as required by federal charity law.
Not surprising to anyone who read Clinton Cash, the audit also reported, “Some interviewees reported conflicts of those raising funds or donors, some of whom may have an expectation of quid pro quo benefits in return for gifts.” Gee that reminds me of the Uranium One and the Skolkovo deals, both of which involved Foundation donors and what certainly looks like State Department quid pro quo.
The Simpson Thacher audit also found:
- The foundation board didn’t have the necessary independence, instead it was filled with Clinton insiders.
- The board failed in it’s fiduciary responsibilities
- The board ignores conflicts of interest
- Audits wanted them to change their accounting methods. The Foundation’s auditors have, in 2009 and 2010, indicated that material weaknesses exist including variously in segregation of accounting duties, review of journal entries, audit adjustments and financial statement preparation, and lack of Board meetings. The auditors also noted that books are kept on a cash, not an accrual basis. These issues do not appear to have been addressed by the Board. Separately, interviewees reported their belief that certain employees abuse expense privileges (e.g., charging the Foundation and President for personal expenses) and do not follow the Foundation’s travel expense policy.
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Simpson Thacher also asked the Foundation employees they interviewed to rate the foundation operations…