Oregon Attorney General Releases Results of 2005 Goodwill Audit

HARDY MYERS PETER D. SHEPHERDAttorney General Deputy Attorney GeneralDEPARTMENT OF JUSTICE CIVIL ENFORCEMENT DIVISION December 19, 2005 Thomas C. Young, Chair Board of Directors Goodwill Industries of the Columbia Willamette 1943 SE Sixth Avenue Portland, OR 97214 Re: Audit Report Dear Mr. Young: In April 2004 the Department of Justice began an audit of Goodwill Industries of the Columbia Willamette (GICW). As the audit evolved, the primary focus became whether the level of compensation paid to the organization’s chief executive officer (CEO) was and is excessive. Secondarily, the investigation examined representations about program services made by GICW in its advertisements and publications, on its website, on its tax return, and in the annual performance review of the CEO to determine whether those representations were consistent with the actual level of program services provided in 2003, the sample year chosen for our investigation. The decision to open an audit was made in response to published reports that total compensation and benefits paid to the CEO had risen over a period of time to a level high in comparison to what other nonprofit executives in Oregon are paid. In addition, a citizen complained to our office about the level of compensation and certain aspects of GICW’s operations. The Department of Justice has completed its review. This letter serves as our public audit report of our findings and conclusions. ...