LOS ANGELES (Business Wire) -- A study released today by the Friends of the Southwest Museum Coalition concludes that in Merger Agreement documents signed on behalf of the Autry Western Heritage Museum in March 2003, Jackie Autry, the widow of singing cowboy Gene Autry, and other officers gave a misleading balance sheet to the Board of the Southwest Museum that showed the Autry had "current assets" exceeding $100 million when in reality the Autry had a $98 million Pledge to contribute, payable upon the death of Mrs. Autry.
The study authored by Mr. Jack B. Siegel of Charity Governance Consulting, LLC states: "The Autry Museum was not in much better financial condition than the Southwest Museum once the Pledge is removed from the analysis. Ignoring the Pledge is appropriate given the fact that a significant portion of it will not be converted into cash for some two decades when actuarial tables are taken into account. ... Despite the widespread benefits from increased transparency, the Autry Museum still chooses to keep the Pledge, its terms and the circumstances surrounding it shrouded in mystery."
The report is being released by the Friends of the Southwest Museum Coalition to bring transparency, better accountability and to reverse the hypocritical decision-making made by Autry. "The way in which Autry portrays their business is disingenuous and this study sheds light on how these glaring discrepancies point to an unscrupulous approach in their business dealings," said Nicole Possert, Chair of the Friends of the Southwest Museum Coalition, a group of about 70 community-based, state-wide, and national organizations concerned about the museum future of the Southwest Museum, Los Angeles' first and oldest museum institution.
Mr. Jack B. Siegel is a nationally respected author and expert on non-profit financial and governance issues. He has concluded that the Autry's Merger Balance Sheet was misleading and not in accordance with generally accepted accounting principles. Siegel observed that the representations of the Autry may have induced the Southwest Museum Board, the California Attorney General, major donors, and various public groups concerned about Autry's sincerity to fulfill merger promises to allow the merger to proceed when, had the true nature of the Autry's financial position been known, other options might have been more thoroughly explored.
"We thought Autry was the 'cash-rich but collection poor museum'." said Possert. "At the time of the 2003 merger, Autry CEO John Gray re-affirmed this belief by stating that the Autry had a $100 million endowment gift from Mrs. Autry. It's a completely different story when the 98% of the gift is just a pledge on paper with a promise to pay 20 or more years from now. Mr. Siegel's report now shows how so many people and the media have been misled by Autry."
For the entire Siegel Report, visit www.FriendsoftheSouthwestMuseum.com.
Friends of the Southwest Museum Coalition
Nicole Possert, 323-255-579
cell: 323-449-6998
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