Financial Reports

Friends of ATRA

How to Help

May 8,  2007 - a letter from the Friends of ATRA to volunteers and supporters

Good news!

Despite record spending, ATRA ended 2006 with cash reserves of $119,647. This should pay for the rescue of 150 to 200 Airedales. You should
not see pleas for more donations anytime soon. If you do, question the ATRA board.

Unfortunately, there is bad news. For the third year in a row, ATRA's general operating fund ended the year with a deficit. Due to incomplete
information from the audit review and the ATRA board, the deficit amount is unknown at this time. It may be as high as ($6,746).

Despite record income from you, the dedicated supporters, it was all spent. (This does not include the Goldie Fund which is a restricted fund available
for Goldie only.) Under the current board's leadership, the general operating fund has posted a loss every year since they assumed their duties. The
current president took control of ATRA at the end of 2003.

We, the co-founders and previous board members of ATRA, were cautious about using your donations. The cash balance available to ATRA today
is a result of our frugal spending. We understood what it was like to rescue Airedales without sufficient funds and wanted to make certain that never
happened to ATRA again. By July 2004, we had all left the board to pursue helping Airedales in other ways.

During the past three years, the current board has been on a spending spree. They have added nothing to ATRA's cash reserves. In fact, they have
reduced it by $8,500 plus they spent $680,980 of new income. Their approach to rescuing an Airedale has inflated the cost from $347 in 2003
to $720 per dog in 2006. That is an increase of 105%. During the same period, the cost of living (CPI) rose less than 9%.

NOTE: For some reason, the ATRA treasurers have refused to provide the 2006 Profit & Loss Statement. We have used available information
which is not complete.

Expenses reported for 2006 were the highest ever, $287,903. The number of dogs rescued increased only 2% but ATRA's spending increased
35% over 2005.

Here are a few of the known 2006 expenditures compared to 2005:

• total expenses for dogs increased 43%; cost to rescue an Airedale = $720

• grooming expenses increased over 60% with only 2% increase in the number of dogs rescued

• boarding expenses were approximately $27,000 – 586% increase over 2005 boarding costs of $4077

• dog supplies cost 66% more with only 5 additional dogs rescued

• non-dog supply spending increased 45%

How were your 2006 donations spent? No one really knows, not even the ATRA board.

Recording expenses by dog name or number is routine accounting practice for canine rescue groups. The ATRA Census System was implemented
in 2000 to do that. A number is assigned to each dog as they come into rescue. This allows for records to be kept for expenses and donations for
each rescued dog. The current ATRA board decided to discontinue expense reporting using the census numbers. As a result:

• There is no information available about how many or which ATRA dogs have been boarded. Where or how long they were in a kennel is
  unknown too. During 2006, 18 ATRA dogs (most in OH boarding kennels) were forgotten. ATRA's treasurers could not provide
  information on the cost of this oversight.

• The cost for ATRA to treat heartworm positive dogs is unknown.

• When asked how much ATRA spent on medical care for already adopted dogs, the treasurers again could not provide any information.

• The cost for routine or non-routine veterinary procedures is unknown.

• ATRA cannot provide the cost of dog care by state. This is critical information for planning.

It is impossible for the ATRA board to review their actions because they do not have detailed expense records. They are unable to evaluate problem
issues and make effective changes. Until their record keeping changes, decisions will continue to be made based on emotion rather than facts.

How can this situation be changed?

Many attempts to reason with this board have been made by ATRA supporters. Most have been ignored. The few responses from the board
have been inappropriate, incomplete and even included erroneous statements. For more details, please visit our website: www.friendsofATRA.org

Current ATRA by-laws do not establish term limits for board members nor do they allow for elections. Supporters have asked questions about the
by-laws and even asked for their revision but the board has completely ignored these requests. This behavior is inappropriate for a nonprofit board.
In addition:

• One ATRA board member now resides in Kuwait. He has resigned twice but the board refused to accept his resignation. This board
  member also did not attend two of the three board meetings held during 2006.

• Another ATRA board member has been paid over $2000 to transport ATRA dogs. She also lost track of her rescue efforts for as
  many as 18 dogs in her state.

• By failing to answer questions, the board has shown a lack of respect for the membership.

We cannot recommend to you what your response should be. We have been forced to temporarily discontinue our financial support of ATRA
because the board has made no effort to stop their spending spree or address our concerns. We continue to help the dogs and hands-on
volunteers as we are able. You may want to consider similar action.

National Airedale Rescue (NAR), a 501(c)(3) nonprofit organization, has been receiving our donations. This group reports their financial status
and answers inquiries with complete transparency. Their funds are used to help Airedales throughout the U.S. In particular, they support areas
that have little organization and few volunteers. Money is spent conservatively and economically.

For more information, please visit their website at: www.airedalerescue.net

You now have the information that we have known for many months:

• Each of the past 3 years, the ATRA board has spent everything you donated and more.

• Without the prior financial reserve that we established, ATRA would be bankrupt.

• The current board has provided sketchy (if any) details when asked questions.

• Questionable behavior and disregard for member questions raises concerns about the board's ability to lead.

We have shared with you our actions. If you want ATRA to have conservative financial leadership again, it is your turn to act.

Please contact any of us if you have questions, comments or additional concerns. We value open, honest communication and welcome new ideas.
It is our belief that volunteer input is valuable and only makes ATRA a stronger organization. The dogs depend upon all of us to work together effectively.