Kyuhyon Cho, former Korean Association President

 

(2019. 11 ~ 2022. 7 Impersonating the president of the Korean Association)

 

Korean Association Auditor Choi Woon-ha

 

 

 

Until October 2019, Kyuhyon Cho performed his duties as the president of the Korean Association, but from November 2019, he took on that role even though he was not the president of the Korean Association.

 

First, in order to present a settlement plan at the general meeting based on the bylaws, prior approval from the Korean Association auditor and me is required. Submission without approval is invalid.

We will conduct an audit of the audit data received for the period from November 2017 to May 2022 as follows and inform you of the results.

 

1. Subject to accounting audit for the relevant period

    - Korean Association President: Kyuhyon Cho (2017. 11. ~ 2019. 10.), (2019. 11. ~ 2022. 5.)

    - Finance Manager: Nayoung Jung (based on the bank’s signature record)

 

2. Audit of location payment account: Audit not possible

    - Suspicious issues such as non-compliance with check storage and issuance procedures and forged signatures were discovered.

    - Transactions cannot be identified because the reason for payment is not entered in re: at the bottom of many checks.

    - Evidence and bank statements for the period from 2017. 11 to 2019. 10. not submitted

    - Insufficient supporting data for the period from November 2019 to July 25, 2022

    - Difficult to provide reliability on account balance due to lack of supporting data

      * 2017. 11. Balance $81,555.78 (KoSaRang.Net registration, refer to 2017 financial statements)

      * 2019. 11. Balance: $80.596.29

      * 2022. 7. Balance: $88, 362.66 ($88,352 withdrawn, check issued by NAYOUNG JUNG)

    - During the period from November 2017 to October 2019, a government subsidy of $43,304.86 was received, and considering that this is the period in which the net proceeds from the second Folklorama must be deposited into the Korean Association account, it is difficult to understand the changes in the account balance. Audit is not possible due to non-submission of supporting materials.

    - Received a subsidy of $20,000 from November 2019 to July 2022.

    - Audit questions regarding submitted transactions (some examples)

      1) Cash ($100 * 50 sheets) deposited on March 23, 2022. Proof of cancellation of Folklorama stage lighting not submitted (reason for a transaction withdrawn on March 21, 2020 but cash deposited 2 years later)

      2) May 25, 2020. Cash ($100 )

      3) Failure to submit proof of cancellation of purchase of return envelopes deposited in cash ($100)

 

3. Audit of scholarship fund account: Discrepancies in account balance (Partial audit can be performed as some data was received from November 15 to 16, 2023)

     - Check scholarship fund history data from December 2014 to the most recent.

     - Account balance discrepancy (refer to 2017 Korean Association settlement data)

      (Source http://www.kosarang.net/g4/bbs/board.php?bo_table=06_2&wr_id=1814)

      * At the general meeting on November 4, 2017, the balance of the scholarship account was announced as $50,729.02 (there is no such amount in bank history)

      * Check bank data as of November 4, 2017, scholarship account balance is $50,000

      * The reason for the difference is unclear

     

     - Some questions regarding the scholarship fund account: Confirmation is not possible due to the suspension of auditing, and if confirmation from the bank is required, absolute assistance from the current Korean Association is required.

      * 2022. 8. 11. Korean Association Scholarship Fund Account Bank Signing Officer changed (President: Cho kyuhyon, Treasurer Kim Jae-kyung), the basis for the change could not be confirmed (change is not possible if the bank requested the latest Company Offices data - confirmation by the bank) (required)

      * 2022. 9. 12. Visit to TD Bank by then-Korean Association President Yang Ki-gug: Change of Signing Officer (Yang Ki-gug, Kim Hyeong-tae) of the Korean Association's account and confirmation of account in the name of the Korean Association (unintelligible as it was confirmed that only the deposit account exists, but with the bank's cooperation) Re-confirmation required)

      * 2022. 9. 27. Scholarship fund account withdrawal in the names of Kyuhyon Cho and Jae-Kyung Kim (since the Signing Officer change has already been registered as Ki-Gug Yang and Hyeong-Tae Kim, withdrawal under that name is incomprehensible. Signing Officer records must be reconfirmed with the cooperation of the bank)

      * On October 13, 2022, an email was received from a TD Bank manager confirming that there were no additional accounts other than the location payment account (unintelligible, re-confirmation required with the bank's cooperation)

 

      ☞ When issuing bank checks at TD Bank, even if it is an organization, the Purchaser must only issue it in the name of the organization's Signing Officer, which added to the confusion (CIBC and Scotia Bank issue it in the name of the organization).

 

 

4. Request for audit data and granting opportunity for explanation

    - 2023. 11. 7. Email requesting additional data required for audit

    - 2023. 11. 8. Date and location of interview for clarification (11. 11. Starbucks) email sent

    - Tried several phone calls, but no response.

    - 2023. 11. 11. Waiting for Choi woon-ha (19:00 - 20:30), former Korean Association President Cho kyuhyon not attending

    - 2023. 11. 15 ~ 16: Received some information related to the scholarship account from the current executive branch.

    - November 17, 2023: Email sent requesting explanation regarding scholarship account

 

 

5. Final audit opinion: Unable to audit (declaration of inability to audit)

    - The audit cannot be conducted solely based on the submitted data for the reasons stated above.

 

 

Dear Koreans,

As the auditor, I would like to inform you that I am unable to conduct an audit due to the above-mentioned circumstances, and I am sending this matter to the Korean American Association President and Board of Directors to resolve it directly.

The Korean Association is requested to hire an accounting lawyer to pursue appropriate legal action and recovery of funds used without proof.

Additionally, please double-check that the scholarship fund account balance is different.

 

 

Attachment: Manitoba Korean Association 2017 Financial Statement

        Bank-provided scholarship fund account history

 

end.