According to the ALS Association (the Association) audit of January 31, 2024 (Note 1, Summary of Significant Accounting Policies, Organization): "...The Association completed a merger of affiliated chapters during the year ending January 31, 2024. As of January 31, 2023, the Association had assumed the operating activity of 17 of its 34 affiliated chapters. During the year ending January 31, 2024, 16 of the 17 chapters who previously had their operations assumed, along with an additional two chapters finalized their merger with the Association. The 18 merged chapters no longer independently exist. All net assets of these 18 merged chapters were remitted to the Association during the year ending January 31, 2024. In January 2023, chapters who did not wish to unify with the Association filed a lawsuit against the Association to keep the Association from moving forward with unification. The Association settled the claim with this group and remitted $3.5 million to the nonunifying chapters in September 2023. This amount was accrued in the accompanying financial statements as of January 31, 2023. The remaining 16 chapters who did not unify disaffiliated with the Association as of September 1, 2023 and now operate independently. These financial statements do not include the accounts of the previously affiliated chapters as, subject to their agreements with the Association, they were independently controlled by their own governing boards. These financial statements, however, do include amounts earned and owed to the Association for revenue share through September 1, 2023."
According to the ALS Association (the Association) audit of January 31, 2024 (Note 1, Summary of Significant Accounting Policies, Subsequent Events): "...In August 2024, a non-unified former chapter filed a lawsuit against the Association and is asking for $3.5 million in damages. The Association intend[s] to vigorously defend itself in this matter. No amounts are accrued in the accompanying financial statements as probable loss has not been established." More information about the merger can be found here. |