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Date: 23 Jul 2008 05:52:39
From: samsloan
Subject: Another year of Fake Numbers from the USCF
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Another year of Fake Numbers from the USCF
USCF Executive Director Bill Hall writes the following in the USCF
BINFOS:
"To the USCF Executive Board:
"The audit is winding down and we should have a Draft for circulation
by Tuesday. The bottom line should show a loss of $53,000. Although
you never can be happy with a loss, considering the extra expenditures
for Spectrum (and the profit-sharing plan), increased legal expenses,
a significant write-off in inventory, and some significant losses on
two investments, I believe we did not do too poorly this year."
If the loss was really only $53,000 we might agree. By the way, that
number includes $13,000 in unnecessary Internet Insurance that Joel
Channing insisted that the USCF get to protect HIS assets.
However, as Grant Perks explains in a posting to Susan's
chessdiscussion group, that number is arrived at after the office
ignored the $50,000 cap that the delegates voted to place on imaginary
money received from the Life Membership Account. Grant Perks explains,
"the office knows the year end adjustment will be made each year and
they can spend based on the cap being reversed".
The money is called "imaginary money" because the USCF office is
supposed to receive $120,000 this year from the Life Membership Assets
to service the the 10,000 life members who paid their life membership
dues years ago and their funds were supposed to have been placed in a
restricted reserve account. However, all of that money was "borrowed"
out of that account years ago and in 2003 the account was closed.
Therefore, the $120,000 is money the office is supposed to have
received but does not actually get. (Usually, the amount is about
$100,000, but this year Grant Perks says that the figure is $120,000.)
In addition, a member of the Finance Committee says that USCF Sales
and Hanon Russell owe $85,000 and this amount is put in "accounts
receivable", but Hanon Russell is disputing this and says that he is
not paying the money. The last time this happened was in 2005 when
Hanon Russell was refusing to pay $145,000 that was owed and
nevertheless that amount was included as an "account receivable".
Eventually the board wrote off the entire $145,000, so we can feel
certain that Hanon Russell is not going to be paying this $85,000
either.
So, in reality, the USCF has lost $53,000 plus $120,000 plus $85,000,
so the actual loss in real money this past fiscal year is $258,000,
one of the biggest losses ever.
And Bill Hall says, "I believe we did not do too poorly".
When will they ever report the real numbers?
Sam Sloan
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Date: 24 Jul 2008 04:10:52
From: Rob
Subject: Re: Another year of Fake Numbers from the USCF
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On Jul 24, 2:19=A0am, "[email protected]" <[email protected] > wrote:
> IS BANKRUPTCY LOOMING?
>
> Let us assume, for the sake of argument, that
> soft-spoken Hanon Russell, the Stalin of U.S. Chess,
> forks out $58,000 of the $85,000 he is said to owe.
> That would still put Sam's claimed loss at $200,000.
>
> Does anyone dispute the ballpark figure that
> Sam's provides? =A0If so, why? =A0If not, then how many
> more such losses can the Federation endure before
> going under.
>
> =A0 =A0 =A0 I'd like to hear your estimates. =A0Will there be
> a federation in, say, three years' time if the past
> fiscal year is repeated thrice over?
>
> Yours, Larry Parr
>
> Brian Lafferty wrote:
> > samsloan wrote:
> > > Another year of Fake Numbers from the USCF
>
> > > USCF Executive Director Bill Hall writes the following in the USCF
> > > BINFOS:
>
> > > "To the USCF Executive Board:
>
> > > =A0 =A0 =A0 "The audit is winding down and we should have a Draft for=
circulation
> > > by Tuesday. The bottom line should show a loss of $53,000. Although
> > > you never can be happy with a loss, considering the extra expenditure=
s
> > > for Spectrum (and the profit-sharing plan), increased legal expenses,
> > > a significant write-off in inventory, and some significant losses on
> > > two investments, I believe we did not do too poorly this year."
>
> > > If the loss was really only $53,000 we might agree. By the way, that
> > > number includes $13,000 in unnecessary Internet Insurance that Joel
> > > Channing insisted that the USCF get to protect HIS assets.
>
> > > However, as Grant Perks explains in a posting to Susan's
> > > chessdiscussion group, that number is arrived at after the office
> > > ignored the $50,000 cap that the delegates voted to place on imaginar=
y
> > > money received from the Life Membership Account. Grant Perks explains=
,
> > > "the office knows the year end adjustment will be made each year and
> > > they can spend based on the cap being reversed".
>
> > > The money is called "imaginary money" because the USCF office is
> > > supposed to receive $120,000 this year from the Life Membership Asset=
s
> > > to service the the 10,000 life members who paid their life membership
> > > dues years ago and their funds were supposed to have been placed in a
> > > restricted reserve account. However, all of that money was "borrowed"
> > > out of that account years ago and in 2003 the account was closed.
> > > Therefore, the $120,000 is money the office is supposed to have
> > > received but does not actually get. (Usually, the amount is about
> > > $100,000, but this year Grant Perks says that the figure is $120,000.=
)
>
> > > In addition, a member of the Finance Committee says that USCF Sales
> > > and Hanon Russell owe $85,000 and this amount is put in "accounts
> > > receivable", but Hanon Russell is disputing this and says that he is
> > > not paying the money. The last time this happened was in 2005 when
> > > Hanon Russell was refusing to pay $145,000 that was owed and
> > > nevertheless that amount was included as an "account receivable".
> > > Eventually the board wrote off the entire $145,000, so we can feel
> > > certain that Hanon Russell is not going to be paying this $85,000
> > > either.
>
> > > So, in reality, the USCF has lost $53,000 plus $120,000 plus $85,000,
> > > so the actual loss in real money this past fiscal year is $258,000,
> > > one of the biggest losses ever.
>
> > > And Bill Hall says, "I believe we did not do too poorly".
>
> > > When will they ever report the real numbers?
>
> > > Sam Sloan
>
> > The real numbers will be ferreted out by the trustee in bankruptcy.
It will continue so long as the cash flow allows. All that needs to
happen is sufficient yearly cash flow comes in to meet daily operating
expenses. The real question, I think, is how long will the general
membership allow things to continue? Obviously the general membership
must not share a concern. If they did,certainly they would do
something about it.
But then you have to look at how active in chess the adult membership
actually is right now. A very small percentage of adult members really
even play in USCF tournaments on a regular basis. Even a smaller
percentage of that number even follows the USCF politics at all.
It's a;most like being on a huge sailing ship thats headed towards
destruction on a massive reef in a storm. Most of the crew has already
abandoned ship and their simply aren't enough sailors left to reef the
sails and alter course. Destruction is only a matter of time
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Date: 24 Jul 2008 00:19:59
From: [email protected]
Subject: Re: Another year of Fake Numbers from the USCF
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IS BANKRUPTCY LOOMING?
Let us assume, for the sake of argument, that
soft-spoken Hanon Russell, the Stalin of U.S. Chess,
forks out $58,000 of the $85,000 he is said to owe.
That would still put Sam's claimed loss at $200,000.
Does anyone dispute the ballpark figure that
Sam's provides? If so, why? If not, then how many
more such losses can the Federation endure before
going under.
I'd like to hear your estimates. Will there be
a federation in, say, three years' time if the past
fiscal year is repeated thrice over?
Yours, Larry Parr
Brian Lafferty wrote:
> samsloan wrote:
> > Another year of Fake Numbers from the USCF
> >
> > USCF Executive Director Bill Hall writes the following in the USCF
> > BINFOS:
> >
> > "To the USCF Executive Board:
> >
> > "The audit is winding down and we should have a Draft for circulation
> > by Tuesday. The bottom line should show a loss of $53,000. Although
> > you never can be happy with a loss, considering the extra expenditures
> > for Spectrum (and the profit-sharing plan), increased legal expenses,
> > a significant write-off in inventory, and some significant losses on
> > two investments, I believe we did not do too poorly this year."
> >
> >
> > If the loss was really only $53,000 we might agree. By the way, that
> > number includes $13,000 in unnecessary Internet Insurance that Joel
> > Channing insisted that the USCF get to protect HIS assets.
> >
> > However, as Grant Perks explains in a posting to Susan's
> > chessdiscussion group, that number is arrived at after the office
> > ignored the $50,000 cap that the delegates voted to place on imaginary
> > money received from the Life Membership Account. Grant Perks explains,
> > "the office knows the year end adjustment will be made each year and
> > they can spend based on the cap being reversed".
> >
> > The money is called "imaginary money" because the USCF office is
> > supposed to receive $120,000 this year from the Life Membership Assets
> > to service the the 10,000 life members who paid their life membership
> > dues years ago and their funds were supposed to have been placed in a
> > restricted reserve account. However, all of that money was "borrowed"
> > out of that account years ago and in 2003 the account was closed.
> > Therefore, the $120,000 is money the office is supposed to have
> > received but does not actually get. (Usually, the amount is about
> > $100,000, but this year Grant Perks says that the figure is $120,000.)
> >
> > In addition, a member of the Finance Committee says that USCF Sales
> > and Hanon Russell owe $85,000 and this amount is put in "accounts
> > receivable", but Hanon Russell is disputing this and says that he is
> > not paying the money. The last time this happened was in 2005 when
> > Hanon Russell was refusing to pay $145,000 that was owed and
> > nevertheless that amount was included as an "account receivable".
> > Eventually the board wrote off the entire $145,000, so we can feel
> > certain that Hanon Russell is not going to be paying this $85,000
> > either.
> >
> > So, in reality, the USCF has lost $53,000 plus $120,000 plus $85,000,
> > so the actual loss in real money this past fiscal year is $258,000,
> > one of the biggest losses ever.
> >
> > And Bill Hall says, "I believe we did not do too poorly".
> >
> > When will they ever report the real numbers?
> >
> > Sam Sloan
>
> The real numbers will be ferreted out by the trustee in bankruptcy.
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Date: 23 Jul 2008 13:03:17
From: Brian Lafferty
Subject: Re: Another year of Fake Numbers from the USCF
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samsloan wrote:
> Another year of Fake Numbers from the USCF
>
> USCF Executive Director Bill Hall writes the following in the USCF
> BINFOS:
>
> "To the USCF Executive Board:
>
> "The audit is winding down and we should have a Draft for circulation
> by Tuesday. The bottom line should show a loss of $53,000. Although
> you never can be happy with a loss, considering the extra expenditures
> for Spectrum (and the profit-sharing plan), increased legal expenses,
> a significant write-off in inventory, and some significant losses on
> two investments, I believe we did not do too poorly this year."
>
>
> If the loss was really only $53,000 we might agree. By the way, that
> number includes $13,000 in unnecessary Internet Insurance that Joel
> Channing insisted that the USCF get to protect HIS assets.
>
> However, as Grant Perks explains in a posting to Susan's
> chessdiscussion group, that number is arrived at after the office
> ignored the $50,000 cap that the delegates voted to place on imaginary
> money received from the Life Membership Account. Grant Perks explains,
> "the office knows the year end adjustment will be made each year and
> they can spend based on the cap being reversed".
>
> The money is called "imaginary money" because the USCF office is
> supposed to receive $120,000 this year from the Life Membership Assets
> to service the the 10,000 life members who paid their life membership
> dues years ago and their funds were supposed to have been placed in a
> restricted reserve account. However, all of that money was "borrowed"
> out of that account years ago and in 2003 the account was closed.
> Therefore, the $120,000 is money the office is supposed to have
> received but does not actually get. (Usually, the amount is about
> $100,000, but this year Grant Perks says that the figure is $120,000.)
>
> In addition, a member of the Finance Committee says that USCF Sales
> and Hanon Russell owe $85,000 and this amount is put in "accounts
> receivable", but Hanon Russell is disputing this and says that he is
> not paying the money. The last time this happened was in 2005 when
> Hanon Russell was refusing to pay $145,000 that was owed and
> nevertheless that amount was included as an "account receivable".
> Eventually the board wrote off the entire $145,000, so we can feel
> certain that Hanon Russell is not going to be paying this $85,000
> either.
>
> So, in reality, the USCF has lost $53,000 plus $120,000 plus $85,000,
> so the actual loss in real money this past fiscal year is $258,000,
> one of the biggest losses ever.
>
> And Bill Hall says, "I believe we did not do too poorly".
>
> When will they ever report the real numbers?
>
> Sam Sloan
The real numbers will be ferreted out by the trustee in bankruptcy.
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