An audit completed by a private firm shows that Al Sharpton's National Action Network (NAN) is in such poor financial shape that it might not survive. The audit was sanctioned by NAN, which reviewed the organizations 2008 records, the most recent available.
According to a copy of the audit obtained by the New York Post, the firm, KBL, concluded: "The organization has suffered recurring decreases in net assets -- and has been dependent upon advances from related parties and the nonpayment of payroll tax obligations -- to maintain continuity. ... These circumstances create substantial doubt about the organization's ability to continue."
The audit also said that NAN still owed $1.348 million in delinquent city, state and federal taxes and penalties at the end of 2008. And according to the Post article, "the IRS has filed dozens of liens against NAN over the past decade, including one as recently as April of this year."
In addition, last year, the Federal Elections Commission fined Sharpton $285,000, in part for illegally using NAN funds to fund his 2004 presidential campaign. The Post also found that NAN was named as a defendant in five lawsuits.
But according to NAN spokeswoman Rachel Noerdlinger, the organization is improving. "We determined not to file bankruptcy but to make NAN solvent, which we clearly have done and will be reflected in [upcoming reports]," she told the Post.
Yet some are still waiting to see NAN's new financials. The Post notes that the organizations has requested an extension from the IRS for filing its 2009 report.