EFTA00862099.pdf

From: "Jeffrey E." <[email protected]> To: Melanie Spinella Subject: Date: Mon, 16 Mar 2015 19:58:01 +0000 sent fri from joslin Brad asked that I note a few things: • As he and I move to progressively update and revise the cash flow projection, while not in the shape we would like tobe, it has served sufficiently well for general planning purposes. • The cash flow projection has been updated bi-weekly to incorporate updates, ie Apollo projections, capital call timing, delay in Knowledge Universe sale/ distribution, but the effort to fully update and drill down into specific items, eg matching plane use to cash outlays, timing of boat charters, construction costs, etc has taken a back seat to priorities such as April 15 taxes, bill pay transition , Phaidon restructuring, LDB 2014 cash flow reporting. • Apollo has indicated yesterday that April 15 gross up payment will be revised from 20 cents to 8 cents. TRA payable 4/15/15 looks to be unchanged. I am meeting with CAO and tax team of Apollo next week and will have update. The next version will incorporate those changes. Im not sure for who this report is for and what is its purpose. leon , brad, torn? it mixes wild projections with minute actuals. loans. inter co. , and no overall report at all. child support of 20k. ?? no footnotes. . this is very difffent from the one joslin and i worked on. that you and i reviewed, you will recall large boat and plane numbers . I) having a head with multiple dates is very confusing - payment dates should be on line below actual payment amounts, why is family office liste with capital calls. ? has leon seen the capital calls for the month? . why is the family office in jan feb different? why have amounts of 3k in and out when we are estimating millions both ways. ? 2) cash balance (last line) of 18,444,902 makes no sense without a beginning balance - a line should be added to show each months beginning balance and ending balance and should be properly labeled 3) overall statement needs to have consistency or scope of dollars to be included - examples a) inflows - other refunds / receipts of 3,266 and 31,779 in Jan / Feb - why include with such small amounts silly - should have Misc to capture this - also why only in Jan and Feb? b) inflows - does Leon earn a salary at APO? c) outflows - rare books of 18,304 - again a Misc should be used to capture this along with items in d and e below d) outflows - support - children - 20,000 (i am sure number is larger than this on an annual basis) - why only 1 month? don't we have history to project a full year mkaes no sense again. changing the heading from feb, e) outflows - misc - only 3 months projected ?? 4) household / transfers to ms - 17,000,000 continues to be shown is it ? 1,000,000 per month - why in lumps each quarter? should be presented monthly.. .. household operating expenses / capital improvements / RE taxes 5) art consultant receives a check lx per year in May 2015- why is this not paid from Narrows? Family office? Deduction for expense? how many consultants benefits office expenses. numbers do not seem right,. 6) Art loan shows interest paid quarterly yet 2 other loans show monthly payments - loan expires in May 2015 - and must be renewed that is the only relevant fact. 7) plane - was there no debt service or use expense in January 2015 as this was left blank? EFTA00862099 8) Townhouse construction - are payments actually made quarterly? monthly? how was amount derived? 9) Narrows transfers - are they actually made quarterly? monthly? how was amount derived? 10) Insurance / Property tax figures seems low overall - insurance for what? if households then why is it not include in households above - does 688,000 include townhouse, art. etc. 11) Legal and Accounting - why are there two line items (Current and Prior Year) is paul weiss still unpaird? 12) Charity - lumps again - modem art museum? ? gifts? Judy black trust ? 13) IRS Taxes a) January - based on my knowledge estimated payments are due Jan 15th - if true then why are state payments shown in Jan 16-31 column (would that make them late??) b) April payments for Fed and State should show what amounts relate to extension vs 2015 Q1 estimate c) Taxes overall seem low for 2015 how decided. 14) Overall presentation is poor a. no overall. see 0 loans as inflows? liabilities .boat and plane loans greater than current value. b) headings and footings should be bolded and stand out - to many lines and numbers in headers and footers c) all running balances show amounts in 25mm + range yet why are we breaking out Jan and April into days 1-15 and 16-30/31 - d) footnotes should be included to show basic assumptions such as APO reimbursement for plane / projected charter revenue on boat / 2014 vs 2015 estimated taxes we have gone over this already , not sure why not incorporated. e) if purpose is to show cash flows then quarterly lumps other than IRS payments should not be presented 1) spreadsheets are great individually however they all should be consolidated to show true picture of all entities - examples I) inflows - sale of class b interest ap narrows Ilc - shows 10,000,000 yet net affect on global basis is 0 2) apo 1 interst - 27,325,266 shown yet net affect on global basis is 0 g) spreadsheets should be legible and understandble to all who may read and not just author please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. 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