Leading off today: There are two significant hurdles remaining to be cleared, but it appears as though Section 2 has worked its way through a complicated and embarrassing financial mess in the 12 months since the situation came to light.
The Post-Star reported this weekend that Section 2 has paid nearly $37,000 in back taxes to the state and federal governments and has about $200,000 left in its treasury. Going forward, the section must settle up with the IRS on penalties and interest, after which it can go to court to formally close the books on its old entity ("Section II") and transfer remaining funds into the reconfigured operation.
Problems for the governing body of New York State Public High School Athletic Association schools in the Albany area first came to light last June when Section 2 treasurer Roger Seward committed suicide shortly before he was to meet with accountants hired to review his work. It was subsequently discovered that Section 2 had roughly $350,000 -- far more than the organizations top management had believed -- spread across seven accounts in four banks.
But Section 2 also learned tax returns had not been filed since the organization was incorporated in 1978.
Section 2 Executive Director Wayne Bertrand told the newspaper Thursday that changes in accounting and oversight made last fall have put the organization on firm footing.
“We made a laundry list of radical changes. ... It was positive and the way it should be done,” Bertrand said. “I look back and it was some tough times, we had to make some tough calls. ... I think we’re in a good place now."
Bertrand said New York State waived about $6,500 in penalties and interest. The section is awaiting word from the IRS about any federal tax penalties and the possibility of getting those assessments wived or reduced.
Now you know: I've gotten this question a few times over the years and always knew the right answer. But I didn't know the origin ... until now.
With the re-vote on the Cicero-North Syracuse budget coming up, The Post-standard has been doing stories on several issues this month. As is typical when a budget is being debated, more than a few people have suggested that athletes and their families should be paying to play.