From:   Brent 
                Date:  Mon Sep 29, 2003  2:24 pm
                Subject:  Re: Troubled Times Inc. Internal Auditor's Statement for 2002.

                It is a matter of public record, linked off of the archived board
                meeting agendas, that this issue has been addressed. Not only for the
                fiscal year of 2002 which Jan refers to, but for each quarter of the
                year. Each section (a through e below) has been accounted for. In
                previous years, we have enlisted the assistance of a CPA firm in
                Wisconsin to compose an annual report. We did not enlist their
                support in 2002 or 2003 for two reasons: 1. They charge a
                considerable amount of money to generate this report, and our
                donations/funding has been low, and better spent on the booklet and
                seed distribution. 2. An annual report other than the treasurer's
                generated statements quarterly & yearly is only necessary if we have
                funds in amount greater than $25,000 US. We have no where near this
                amount of money. As a matter of record, we have $1874 US to work
                with, as just reported by the treasurer.

                As the minutes of the last meeting will state, no one asked Jan to
                generate an annual report, or do the work of the treasurer. The board
                members explained the situation to Jan at yesterday's meeting, as I
                have just explained it to you. It was simply suggested that if Jan
                wanted an annual report other than the spread sheet generated by the
                treasurer, he was free to generate one himself. As far as Jan's
                reference below to the "treasurer not being able to perform his
                duties", this is pure nonsense. As stated above, the necessary
                accounting information and reports from the treasurer have been
                linked off of the meeting agendas, and are still there for public
                record. All funds, donations and expenses have been accounted for to
                the satisfaction of the entire board of directors.

                Brent Freemont
                President
                Troubled Times Inc.



                --- In tt-inc@yahoogroups.com, Jan wrote:
                > I have not been able to audit the accounts of Troubled Times Inc. for the
                > time period of January 1 to December 31, 2002.
                >
                > According to the Bylaws Article 7, Section 5;
                >
                > "The Board shall cause an Annual Report to be furnished not later than 120
                > days after the close of the corporation's Fiscal Year to all directors of
                > the corporation and, if this corporation has members, to any member who
                > requests it in writing, which report shall contain the following information
                > in appropriate detail:
                >
                > (a) the assets and liabilities, including the trust funds, of the
                >     corporation as of the end of the Fiscal Year;
                >
                > (b) the principal changes in assets and liabilities, including trust
                >     funds, during the Fiscal Year;
                >
                > (c) the revenue or receipts of the corporation, both unrestricted and
                >     restricted to particular purposes, for the Fiscal Year;
                >
                > (d) the expenses or disbursements of the corporation, for both general and
                >     restricted purposes, during the Fiscal Year;
                >
                > (e) any transactions involving members of directors or officers, the
                >     reporting of which may be required by the laws of the State of
                >     Delaware or the Internal Revenue Service."
                >
                > While the Board of Directors has spent considerable time and effort
                > discussing the Annual Report, no such report has yet been produced.
                >
                > During the board meeting of September 28, it was suggested by the board that
                > the Internal Auditor should create the Annual Report for the Treasurer. This
                > is however no option, as:
                >
                > a, An Auditor cannot be a stand-in for the Treasurer except for providing
                >    backups of receipts, books, reports etc. If so, who should then audit the
                >    Auditor?
                > b, QuickBooks, which has been purchased for the use of the Treasurer, is
                >    only licensed for use in the US.
                > c, Since the current treasurer has not been using QuickBooks at all, ref.
                >    her statement in the September 28 meeting, this would probably imply
                >    redoing the complete books for 2002.
                > d, According to the Bylaws, "Should the Treasurer be unable to perform his
                >    duties, an emergency board meeting will be called with an interim
                >    Treasurer appointed by the board [...]"
                >    Whether the inability to produce the required reporting implies inability
                >    to perform the treasurer's duties will be for the board to decide.
                >
                > Consequently, no Internal Auditor's Statement for 2002 can be issued.
                >
                > Respectfully,
                > Jan Rypdal
                > Internal Auditor
                > TT Inc.