Mar 7: In the black or in the dark?
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Yesterday, it was reported that Matanuska Maid might end up in the black.
Both the Anchorage Daily News and KTUU reported that Mat Maid closed it books with $160,000 in the bank, $190,000 in receivables and only $50,000 in payables. They were saved by using a $600,000 emergency appropriation.
For how closely I've followed this story since last June, (sometimes too closely) those numbers didn't seem right, so I asked a legislative contact who is close to the issue of Matanuska Maid.
Question:
According to the ADN this morning they're closing the books for Mat Maid.
This will likely be one of the last accountings for Mat Maid, which started in the 1930s as a farmers' cooperative and was taken over by the state in the mid-1980s after the private operator went bankrupt. Although it profited for several years, its directors shut it down in December because of mounting losses. (ADN 3/6/08)
They still have the two on going lawsuits as well as costs associated with disposing of assets and continued liabilities on the properties.
Do you have any idea how these additional Mat Maid costs are going to be accounted for?
Yes, this still is an unresolved issue. Apparently, the Department of Law is preparing a legal opinion regarding the state’s liability in the case of additional debt, costs and/or lawsuits/liabilities of the Creamery Board. If the AG’s opinion determines that the state is liable, then additional debts or costs will mostly likely be covered by the ARLF. If, on the other hand, it is determined by the AG that the state is not liable, the complainants may get nothing, even if they win their lawsuits. Although, the final determination on whether the state is liable or not, will probably be made by a judge.Answer:
In addition, we have been told that Carlile Trucking was owed one million dollars by Mat Maid, but settled for $400,000. So, I am not sure how that $600,000 debt is reflected in Mat Maid’s accounts at this time. But, if a state court determines that the state is indeed liable for the Creamery Board’s debts and obligations, Carlile Trucking (and possibly others) may go after the state to pay what was owed by Mat Maid.
At the end of the day all of these potential expenses are a result of operations at Matanuska Maid no matter how you shift them around.
On March 25, 2008, the legislative auditor will report her confidential preliminary findings to the Legislative Budget & Audit Committee in an executive session. During the meeting, the committee may or may not make the preliminary findings public.Claiming the dairy closed in the black is misleading.
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