For additional articles covering OUR, please go to ACJ Investigates- Derailed: Operation Underground Railroad
The attached document is an independent audited financial statement report for Operation Underground Railroad, Inc. and Affiliates covering fiscal years 2018 and 2019.
Unlike IRS Form 990 filings, which are annual nonprofit tax disclosures submitted to the federal government, this document is a formal audited financial statement package prepared by outside accountants and auditors. The report consolidates O.U.R. with affiliated entities including:
- Deacon, Inc.
- The Underground Xfit, LLC
- The Nazarene Fund, LLC
What This Document Is
This report contains:
- Independent auditor’s opinion
- Statements of financial position
- Revenue and expense breakdowns
- Cash flow statements
- Functional expense allocations
- Investment disclosures
- Notes explaining accounting methods and organizational structure
The audit was conducted by a Utah accounting firm and issued on April 15, 2020. The auditors stated the financial statements “present fairly” the organization’s financial position under generally accepted accounting principles.
What This Document Shows
1. Massive Financial Growth
The report shows O.U.R.’s financial position expanded dramatically between 2018 and 2019.
Net Assets
Beginning of 2018:
- $10.9 million
End of 2019:
- $30.8 million
This reflects an increase of nearly:
- $20 million in two years
2. Revenue Sources
The overwhelming majority of revenue came from donations.
2019 Donations
- $20,063,913
Additional revenue included:
- Merchandise sales
- Gym memberships
- Investment gains
- Interest income
- Other revenue streams
Total 2019 revenues and gains:
- $23.6 million
3. Investment Holdings
The report shows O.U.R. accumulated substantial investment assets.
Investments
2018:
- $12.5 million
2019:
- $25.7 million
The majority were held in:
- Exchange traded funds
- Mutual funds
4. Functional Expense Categories
The report breaks spending into categories including:
- Programs and mission
- Management and general
- Fundraising and development
2019 Total Expenses
- $9,697,820
Largest categories included:
- Contract labor
- Travel
- Salaries and wages
- Office expenses
- Professional services
- Promotion and marketing
5. Intelligence Gathering Operations
One notable category appearing in the report is:
“Intelligence gathering”
2018:
- $38,970
2019:
- $40,897
The filing does not provide detailed explanations regarding the specific activities categorized under that label.
6. Related Entities and Corporate Structure
The document confirms O.U.R. operated alongside affiliated organizations.
Deacon, Inc.
Described as a for-profit Nevada corporation employing contractors for:
- security
- tactical operations
Underground Xfit
A fitness-related LLC connected to the organization.
Nazarene Fund
Established in 2017 for operations involving persecuted victims in the Middle East.
7. Movie Copyright Donation
The report discloses O.U.R. received a donated copyright related to the film:
“Operation Toussaint”
Assigned estimated fair market value:
- $429,095
The valuation was based on projected future cash flows using discounted cash flow analysis.
ACJ Classification
This document is an audited financial statement package, not merely a tax filing. It was prepared using accounting standards and reviewed by outside auditors.
The report shows O.U.R.’s assets and investment holdings increased substantially between 2018 and 2019, exceeding $30 million by the end of 2019.
The filing documents a diversified organizational structure involving nonprofit and affiliated entities connected to tactical operations, fitness operations, and international programs.
The document does not independently verify operational claims, rescue totals, or public statements made by the organization. It functions primarily as a financial and accounting disclosure document.
