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

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.