What I was trying to do with my previous post, using Narconon International (NI) Form 990's show a relationship with Narconon Oklahoma that I think is outside the typical Narconon contract and the link between Narconon International and Narconon Western United States (WUS) (also applies to Narconon Eastern United States).
This maybe a bunch of BS but take a read and see what you think.
I would like to follow up with the NI/WUS relationship and add Narconon Eastern United States (EUS) and Association for Better Living (ABLE).
How is WUS related to NI, from WUS 2012 Form 990 Part IV Checklist of Required Schedules?
Box 34, the x is under the yes column so Schedule R must be completed
Schedule R Part II Requires name of related organization
Schedule A Part 1 requires the organization to select it’s reason to be classified as a public charity
WUS selected Schedule "A" Part I 11c "Functionally integrated"
Who is WUS functionally integrated with according Schedule A 11h (A) Narconon International.
From
http://www.irs.gov/instructions/i990sa/ch02.html#d0e407• Type III—Functionally Integrated. Check this box if the organization is not described in Type I or Type II above and qualifies as a Type III functionally integrated supporting organization by meeting the following requirements:
1. The organization meets the notification requirement described in line 11h, column (v);
2. The organization meets the responsiveness test (both the relationship requirement and the significant voice requirement) described in Regulations section 1.509(a)-4(i)(3); and
3. The organization meets the integral part test by engaging in activities substantially all of which directly further the exempt purposes of one or more supported organizations, and, but for the supporting organization's involvement, such activities would normally be engaged in by the supported organizations; or, alternatively, by being the parent of each of its supported organizations. See Regulations section 1.509(a)-4(i)(4).
Transition Rule. On December 28, 2012, new regulations changed this integral part test for a Type III functionally integrated supporting organization, primarily by requiring that “substantially all” of the organization's activities must directly further the supported organizations' exempt purposes. Some organizations that met the integral part test for prior tax years may no longer meet the new integral part test. However, under transition rules (Regulations section 1.509(a)-4(i)(11)(ii)(A)), an organization in existence on December 28, 2012 that met and continues to meet the prior integral part test for Type III functionally integrated supporting organizations will be deemed to have met the new integral part test for its first tax year beginning after December 28, 2012 only, and therefore may check the box for line 11c, if it satisfies the other requirements for Type III functionally integrated supporting organizations. For subsequent tax years, the organization must meet the new integral part test in order to qualify as functionally integrated.
Number 3 from above is interesting:
3. The organization meets the integral part test by engaging in activities substantially all of which directly further the exempt purposes of one or more supported organizations, and,
but for the supporting organization's involvement, such activities would normally be engaged in by the supported organizations; or, alternatively, by being the parent of each of its supported organizations. See Regulations section 1.509(a)-4(i)(4).
If WUS was not created would NI be performing the tech assist and supervision of the facilities?
So what is the function of WUS?
WUS's function is to provide technical assistance and supervision to existing Narconon Facilities.
Below are parts of WUS 2012 Form 990 with my comments
The purpose of WUS is stated in Part I Summary "Technical assistance and supervision of drug rehabilation centers"
Part III Statement of Program Service Accomplishments. "Technical assistance and supervision of drug rehabilitation centers".
WUS income from Part VIII "Tech Assistance to Rehab Centers" for over $900,000.00.
How many drug rehabilitation centers does WUS supervise (10), from Part III 4a.
Also note in the comment that WUS "continued its expansion at
existing centers"
So according to WUS they provide technical assistance and supervision for 10 rehab facilities in the western part of the United States
What function does WUS perform for NI, from WUS 2012 Form 990 Part IV, by "FURNISHING TECHNICAL ASSISTANCE ON THEIR BEHALF TO LOCAL NARCONON DRUG REHABILIATION CENTERS IN THE WESTERN UNITED STATES"
Also from NI 2012 Form 990, NI spent over 1.4M assisting and supervising Rehab Centers.
NI 2012 Form 990 Part IX Statement of Functional Expenses 24a list "Asst & Supv of Rehab Ctrs" for over 1.4M.
WUS also holds funds for NI.
Narconon Eastern United States (EUS)Narconon Eastern United States (EUS) is basically the same a WUS and they supervise 7 facilities.
Their income from program revenue for 2012 is $527758
How do they generate that revenue same as WUS Part VIII Statement of Revenue 2a Tech Asst & Supv of Rehab Ctrs $527188
What is the total cost of WUS and EUS to provide technical assistance and supervision?
From above WUS
From above EUS
Total cost = $1428031.00
Remember WUS and EUS are
functionally related to NI, from NI 2012 Form 990 Part IX 24 Statement of Functional Expenses 24b Asst & Supv of Rehab Ctrs. $1460527.00
Looks like NI funds WUS and EUS and they follow NI's directions.
Association for Better Living (ABLE).Assumption which maybe wrong.
Narconon International = NI
Narconon Westeren United States = WUS
Narconon Easteren United States = EUS
If above is correct, ABLE does have direct contact with Narconon other than licenses.
From ABLES’s 2012 Form 990
