ADA News

KPMG, the financial and tax advisers hired last year by the ADA Audit Committee at the behest of the House of Delegates, has completed a review of the business and financial operations of the ADA Foundation, the Association announced this week.

The firm's report, the KPMG Financial and Tax Review, identifies areas that will be addressed relative to the governance, operations and finances of the ADAF, dentistry's premier philanthropic and charitable organization.

The Foundation secures contributions and provides grants for sustainable programs in dental research, education, access to care and assistance for dentists and their families in need, including hurricane and tsunami relief and scholarships for underrepresented minority dental students.

Both the ADA and the ADAF are preparing their respective corrective action plans to address issues identified in the KPMG report. Some of those issues already were being addressed before the report arrived, the ADA said.

Specific recommendations include clarification of the relationship between the ADA and the ADAF.

To address governance and bylaws issues, ADA President Ron Tankersley, in consultation with ADAF President Arthur Dugoni, will appoint an Association task force. An ADA trustee will be named to chair the task force, and the chair will report to the Board of Trustees in July.

To address organization and finance issues raised in the KPMG report, the ADA and the ADAF will develop and implement separate Corrective Action Plans, to be approved by their respective Boards. These plans and their related timelines will be communicated to the ADA House, and quarterly progress reports also will be prepared.  The ADA has recommended to the ADAF that no donated funds be used to pay for any corrective actions.

Implementing KPMG's recommendations, the ADA said, will strengthen the Foundation in terms of best practices in all areas of governance, operations, finance and organization, improving the efficiency and effectiveness of ADAF's fundraising activities.